MERRILL LYNCH I CREATE-NFTE ENTREPRENEURSHIP (MINE) BUSINESS PLAN COMPETITION

OUTLINE FOR THE TEN MINUTE BUSINESS PLAN PRESENTATION & TWOPAGE BUSINESS PLAN

Name: Saumik Barua

Age: 22 years (30.09.1987)

Address: 38 Baroda Avenue, Garia, Kolkata - 700084 Phone no: 98300 06559 Email ID: saumikbarua@in.com Name of Institution: Jadavpur University 1. A: 2: A: Your business idea: (Main Product or Service) Oxygen Bar Name of your Business, its Logo and Tagline Oxlylife Get Life Rejuvenated

3.

Are there similar products or services in the market? What is your competitive advantage? - Get Life Rejuvenated A: Presently theres no such oxygen parlour in Kolkata. But there are 3 such parlours in India one in Delhi, one in Bangalore & the other one in Chennai. Oxygen Bars are an old concept in Japan and gaining popularity in US and Europe slowly.

OXYLI FE

4.

Your Marketing Plan: a. Your market research plan (Talk about your competitor, demand for your product/service- is it there or you think you can create it?)

A: Very few people in India are aware of the concept of an Oxygen Bar. And since there exists no such oxygen bar in and around Kolkata, the demand for my service has to be created. People need to be made aware that a shot of pure oxygen once in 7days for about 15 to 20 minutes can have a revitalizing effect on one's body. "It acts as an anti-ageing agent, besides enhancing the energy and stamina 1

levels in the body. Periodic relaxation at the parlour will result in clear skin, shiny hair and a rejuvenation of the mind and body. b. Your target customers and how will you reach them?

A: My target customers are the general public of which the primary target are those being exposed to the pollution in their daily activities regularly (e.g Traffic police, young working generation, factory workers etc). Apart from them students, the elderly people & corporate people would also be my target customers. c. Your advertising and promotion ideas

A: My service is for mass consumers. Initially I plan to launch advertisement in 2-3 newspapers and also through radio stations trying to educate people about the need for such oxygen therapy. Membership deals will be offered to the Kolkata Police department that would send their on-road officers for treatment once every fortnight. Individual Membership schemes would also be made available. Seminars & Workshops on the need for such oxygen treatment will also be conducted at various Corporate Houses, Schools, and Universities. d. A: e. Packaging (if applicable) Not Applicable Distribution (How do you intend reaching your customers?)

A: Reaching out to my customers implies attracting more customers in my model. f. What does quality mean for your product or service?

A: People would definitely not come to OXYLIFE only for a 15-20 minute session of Pure Oxygen. There should be some added attractions. Well provide the ultimate in weightless comfort by providing seating in Corbu Leather Lounge Chairs. Our customers will literally think they are lying on air. Moreover Customers can listen to any music they want during their session by choosing from our catalogue. Complimentary soft drinks for all our esteemed customers. Moreover the Oxygen Bar equipments (Oxygen Generator, Infusor, Cannula) would be the best in quality and safe as well. **

** To be purchased from Pleisure Dome, 204, Classique Mansion Kodihalli HAL IInd Stg-560008 Bangalore, Karnataka

5. What is the cost of a unit of your product or unit service? Please also show the computation or the logic of your approach below. Operational Expenses: Rs 80,000/1. Monthly Rent 2. Monthly Salary 3. Misc expenses (including depreciation, insurance, transport etc) 4. Telephone 5. Advertising and Promotion Rs 15,000 Rs 30,000 Rs 10,000 Rs 5,000 Rs 20,000 Rs 15,000 Rs 15,000

Cost of Goods Sold: Rs 30000/1. Electricity 2. Refreshments & Music Catalogue Upgradation

EMI on Term Loan Rs 5,10000/- @ 5% p.a flat payable in 5 yrs (assuming that Rs 300000/taken as loan from self is repaid @ 5% p.a in 5 yrs) Rs 10625/-

Total Monthly Expense: Rs 120625/I assume that I will be working for 9 hours per day. Working hours: 10am-2.00pm & 3pm-8.00 pm. Since Wednesdays will be closed, so my parlour will be open 25 days every month. I can have approximately 2 sessions per hour in each machine, i.e. a total of 8 sessions per hour. Hence, Ill provide monthly a total no. of (8x9) x25 = 1800 units.

My per unit cost is: Rs 67.00

6. What is your selling price and your reason for it?

A: Selling price will be Rs 90 per session. (Assuming a margin of 34% per unit). The air we breathe carries external toxic substances from industries, asphalt paving, vehicle exhaust, chemical plants etc. This has deprived the circulating air of its full quota of oxygen. OXYLIFE thus provides each of its customers to breathe pure oxygen which will keep him more healthier and lesser prone to illness. One must remember that here we are not using Oxygen Cylinders which are not sold to customers just for the purpose of breathing. Rather at OXYLIFE we use oxygen generators which are blowing out the other gases and leaving the air with approx 92% pure oxygen. So a 34% profit margin is thus reasonably justified for such a rare good like pure Oxygen .

7.

Your startup costs:

Oxygen Generator Machine (4 Station), Cannulas, Rs 320000/Infusors Corbu Leather Lounge Chairs (4) Rs.40000/Furniture, Fans, Airconditioners, Other Office Equipments Music System Set Up Miscellaneous TOTAL START UP COST Rs.45000/-

Rs.15,000/ Rs 10000/Rs 510000/-

8. A:

How would you meet your startup costs (Be realistic)? i. ii. Take a loan of Rs.3, 00,000 from my father @ 5% p.a flat. Take the remaining Rs 210000/- as term loan from State Bank of India (Baroda Park Branch) at 5% p.a flat.

9. Lets say it is now a year since you started your business. Give us one months Profit and Loss statement for the first month of the second year to cover the following main items: (All figures to be for one whole month.)

Units A B Sales (Rs 90/- per unit) Cost of Sales ( Electricity & Additional Services in the form of refreshments, Music Catalogue Upgradation) Gross Profit= A B Operating Expenses Salaries @ 2500 + 5000 + 7500+ 10000 Rent @ Rash Behari for Rs 33/ sq ft Utilities Monthly Interest along with repayment of principal (EMI) Transport Insurance 1+2+1+1 450 1800

Rupees 162000.00 30000.00

C D

13200.00

30000.00 15000.00 10625.00 5000.00 800.00 4

Depreciation Telephone & Advertising E F G H Total Operating Expenses Operating Profit or Loss = A E Taxes Net Profit / Loss = F G

4200.00 25000.00 90625.00 41375.00 10345.00 31030.00

10. A:

What is the break-even point? Operating expense by Profit/unit: Rs 90625 / Rs23 = 3940 units

11. This question is unrelated to your business described above. Suppose you had a business selling bouquet of flowers, which you sold for Rs. 40 each and it cost you Rs 15 to buy enough flowers for one bouquet. Your total operating cost (including your salaries, rent , utilities, your transport costs, etc,.) was Rs. 15,000 a month. How many bouquet you would have to sell to break even or cover your operating cost- where you have no profit or no loss? Show the calculations here: A: 12. Operating cost by Profit/unit=15,000/(40-15) = 600 units (Break even point) Who is your role model and why? (Just two lines)