Crint

SLIMS | PGDM | Finance | 2013-2015

Business Plan

15/11/2014

Prepared By:

Sangita Dey - 25

Ashka Gupta - 32

Sarfaraz Heranja - 33 Viral Raiyani - 73

Vinod Thadhani - 97

Crint Business Plan

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Who are we?

We are a one stop shop printing solution for individuals & organizations who seek affordable, high quality,

colorful and professional designing of personalized or customized products, merchandise & marketing material

in quick, easy & hassle free manner.

It might seem to us that the world has moved entirely online, but face-to-face interactions still involve exchanging

business cards. Posting a letter still requires a letterhead and small business marketing still requires flyers and

other printed materials. In short, creating effective promotional materials still rates a place on the to-do list for

most organizations. We at Crint continuously seek to ease the tasks of designing and printing of such marketing

material.

What is the Problem Worth Solving?

For Individuals For Small Businesses

It is difficult to find options to personalize

merchandise & if found, the cost is high for single

/ low quantity customized printing.

It is very costly to hire professional designers for

designing professional marketing material.

Accumulating all the resources such as design, raw

material, etc. is a big headache. It consumes a lot

of time and involves high costs.

It becomes difficult to find suitable design & get

all marketing material prepared under one roof &

and hence it consumes a lot of time.

Custom Designs Premium Quality Affordable Prices

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Business Profile

Particulars Details

General Business Information

Name Crint

Type Private Company

No. of Members 5

Head Office Ahmedabad

Website www.crint.com

Email contact@crint.com

Strategic Business Information

Concept Customized Printing

Vision We are committed to provide quick, easy and hassle free customized printing

solutions with minimum harm to environment

Mission To be India’s best premium quality and most affordable customized printing service

provider by 2025.

What is Our Solution?

Be it an individual, small business or an organization, At Crint everybody can enjoy our DIY printing solution at

affordable prices along with high quality, colorful and professional designing of personalized or customized

products, merchandise & marketing material in quick, easy & hassle free manner.

What is Our Target Market?

Every Individual, small business & organization be it schools, sports team, NGOs/NPOs, restaurants & bars, etc.

seeking customized marketing material and personalized products across PAN India are our potential

customer/client.

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Service Specification

Our DIY solution will allow individuals, small businesses and organizations to design professional marketing

material and make their business or brand stand out in the market. We will provide freedom of customizing

designs & printing products like business cards, flyers, brochures, postcards, gift certificates, banners, posters,

stickers, invitation cards, announcements, labels, letterheads, invoices, envelopes, clothes, caps, bags, calendars,

mugs, photo gifts, key chains, mobile & laptop accessories, etc.

Value Chain Analysis

Inbound Logistics

OperationsOutbound Logistics

Marketing & Sales

Services

Purchase of raw material from suppliers

Content Management

Return from customers

Raw material Inspection

Capturing graphics creations

Graphic Printing

Final Product Inspection

Packaging

Digital delivery of designs

Dispatch of final product

Distribution to final consumers via FedEx or Bluedart.

Internet Marketing

Social Media Marketing

Branding

Surveys & Sales Promotions

Mobile apps

Online customer support services

Online DIY Toutorial

Expert/Marketing counselling

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Operational Plan

We will have an open supply line wherein we will Contact suppliers and select the one who offers the

best price and quality. At warehouse we will keep all the necessary goods.

1. Offering wide selection of designs. Know what the fad is at certain times and ride with it. We

will try to offer unique designs as well to keep your bases covered.

2. Set up variety of payment methods. We will give variety of payment options like cash on

delivery, paypal or another form of online payment. That way, there would be less reason for not

buying online.

3. Open a shipping account. Selling online needs to be shipped quickly. We will contact various

shipping companies and select the one that gives you the best service and rate.

Marketing Plan

The ultimate goal of our business is to sell as many products as possible to many customers. We will

connect with as many people in order to promote our business. Here are ways of promoting our

business.

1. Website. Online presence is a very big factor for our businesses where everything can be

searched and bought online. We will also create blogs and write about the good qualities of your

products and why they should buy from us.

2. Social Media. Social media such as Facebook, Twitter, Google +, LinkedIn, etc., keep people

connected and updated 24 hours a day. People use these social media to talk about anything

that caught interesting. Businesses have been capitalizing on this phenomenon to their

advantage by pitching advertisements about their products. We would reach out to a lot of

potential customers by using these social media to promote your business.

3. Promotion: The best way to promote our business is to give free stuff. People love free stuff.

Giving away free stuff should not really be free. We will create a promotion for free stuff whereby

those who participate will have to provide you their email addresses or contact numbers and

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agree that we can contact them for promotional purposes. Through this way we will be able to

build customer database for future promotions and advertisements.

4. Price: As this is a customized printing business, every product is different here in terms of

design, color and size. So the pricing for all the products will be different. Because every product

has its unique design, color and size as per the customer requirements, so pricing will be decided

on the basis of which product customer needs and how much they want to customize their

products.

5. Market Analysis: Crint has segmented the market into two groups, organized by the type of

product that they purchase. The first group is customers that desire an already created graphic

image to be placed on their products. The second group are those that prefer custom artwork to

be placed on their products. Crint has decided to divide the market by the products that they

purchase because it offers an intuitive, easy method of targeting the two different groups. An

additional reason for segmenting the market based on the two products is because the

demographics for the buyers of the two products are distinct enough to group them separately.

6. Market Segmentation: Crint has segmented their market into two distinct groups. As mentioned

previously, the two segments are grouped by the type of product they chose. Although Crint is

dividing the market by product type, it is effectively dividing the market by age as well since the

customers who purchase the custom artwork products tend to be older than the group preferring

the ready-made graphics. While this is not a hard and fast rule, it is a fairly accurate

generalization.

Graphics -- This is group purchases products and has an existing graphic placed on their

desired products. This is the less expensive option and lends itself to low production

numbers, as low as one, since there is not the inherent expense of artwork creation.

Artwork -- This segment prefers having custom artwork created and placed on their

products. They generally have the image or style in mind and will direct the artist to create

it. Occasionally when the customer will not have an exact image in mind but will rely on

the artist's skills to help shape the work.

7. Sales Strategy: The sales strategy will emphasize the fact that ordering a product from Crint is

a very easy and pleasing experience. The sales effort will work on the continual development of

the website, the main tool used for ordering. It will be quite important to have a friendly, easy to

use web interface for two main reasons. One, there are so many choices available that it could

become daunting to the customer. The second reason is that a large portion of sales will be

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placed on the website. It is imperative to make it so easy that people don't stop part way through

ordering due to cumbersome or difficult instructions. The website embraces the philosophy of

making the experience so easy and pleasing that the customer comes back to buy more.

Crint will also rely on three other factors to help boost sales. The first is exemplary customer

service. Having excellent service will provide the customer with the feeling that the business is

looking out for the customer's interest. Second, when a customer places an order, they will

probably be excited to see the finished product, so Crint will ensure the fastest turnaround time

possible. Lastly, sales will be boosted by offering customers a high quality product. We will use

highly quality printing materials.

8. Website Marketing Strategy: The website will be integral in Crint marketing effort as the site is

a key sales tool for both local and distant customers. The URL address will always be used in

promotional material, encouraging people to check out the company, concept, and the products.

In additional to inclusion in the traditional marketing campaigns, Crint will submit their website to

a variety of search engines, significantly increasing the number of inquiries from people

searching out custom printings.

Competitor Analysis:

At present there are two major players in India, who can be our direct competitors. They are Print Venue

and Vista Print. We will also face some competition from local players but we are sure that the choice

and convenience that we provide to our customer will beat them alone.

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Personnel Plan & Remuneration

1. Manpower Planning: Crint will require employees for the following positions.

Business Development Executive

Sales & Marketing Executive

Skilled Printer

Tele Caller – Customer Support Executive

Artist

Personnel Remuneration

Year 1 Year 2 Year 3

Business Development Executives Rs.22,000 Rs.26,000 Rs.30,000

Sales & Marketing Executive Rs.13,000 Rs.13,000 Rs.13,000

Skilled Printers Rs.7,200 Rs.11,000 Rs.11,000

Artists Rs.16,200 Rs.21,000 Rs.21,000

Skilled Printers Rs.10,000 Rs.12,000 Rs.12,000

Total People 5 5 5

Total Payroll Rs.68,400 Rs.83,000 Rs.87,000

2. Recruitment Policies: In Crint we recruit candidates as per our requirements. Firstly we held online

test among interested candidates and then personal interview taken by our experts in order to check

knowledge and creativity of the candidates. A sour business is of customized printing, we need

more creative personnel who can create and develop new designs in printings and can customize

the product as per the need of the customers.

3. Training and development: We believe in satisfaction of the customers and that can only be

possible with the help of good and creative staff of employees and so we give full training to our

employees for working and making the product. Whole training program design for the new

candidates who join and also for the existing employees for updating themselves. We also give our

employees good remuneration with incentives and develop them for betterment of their life.

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Organization Structure

Corporate Social Responsibility

As a part of our corporate social responsibility activities, we will develop a “art & design center”, where

any person who is interested in artwork and designing can take enroll himself/herself and learn different

designs and arts which we will further use in our business. The creator of new design and artwork will

also be paid reasonable royalty for his work. Because our business is of customization and we have to

provide good designs to our customer if they don’t ask for specific design. So, our art & design centers

will develop persons for making career in this field.

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Financial

Statistics

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General Assumptions

General Assumptions

Plan Month 1 2 3

Current Interest Rate 10.00% 10.00% 10.00%

Long-term Interest Rate 10.00% 10.00% 10.00%

Tax Rate 30.00% 30.00% 30.00%

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Projected Profit & Loss Account

Pro Forma Profit and Loss

Revenue Year 1 Year 2 Year 3

Sales Rs.117,882 Rs.290,581 Rs.334,145

Direct Cost of Sales Rs.58,941 Rs.145,291 Rs.167,072

Total Cost of Sales Rs.58,941 Rs.145,291 Rs.167,072

Gross Margin Rs.58,941 Rs.145,291 Rs.167,072

Gross Margin % 50.00% 50.00% 50.00%

Expenses

Payroll Rs.68,400 Rs.83,000 Rs.87,000

Sales and Marketing and Other

Expenses

Rs.2,500 Rs.3,000 Rs.3,000

Depreciation Rs.996 Rs.996 Rs.996

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Rent Rs.11,000 Rs.12,000 Rs.12,000

Utilities Rs.3,300 Rs.3,600 Rs.3,600

Insurance Rs.3,000 Rs.3,600 Rs.3,600

Payroll Taxes Rs.10,260 Rs.12,450 Rs.13,050

Other Rs.1,500 Rs.1,800 Rs.1,800

Total Operating Expenses Rs.100,956 Rs.120,446 Rs.125,046

Profit Before Interest and Taxes (Rs.42,015) Rs.24,845 Rs.42,026

EBITDA (Rs.41,019) Rs.25,841 Rs.43,022

Interest Expense Rs.6,045 Rs.5,700 Rs.5,120

Taxes Incurred Rs.0 Rs.5,743 Rs.11,072

Net Profit (Rs.48,060) Rs.13,401 Rs.25,834

Net Profit/Sales -40.77% 4.61% 7.73%

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Projected Cash Flow Statement

Pro Forma Cash Flow

Cash Received Year 1 Year 2 Year 3

Cash from Operations

Cash Sales Rs.117,882 Rs.290,581 Rs.334,145

Subtotal Cash from Operations Rs.117,882 Rs.290,581 Rs.334,145

Additional Cash Received

New Current Borrowing Rs.0 Rs.10,000 Rs.0

Subtotal Cash Received Rs.117,882 Rs.300,581 Rs.334,145

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending Rs.68,400 Rs.83,000 Rs.87,000

Bill Payments Rs.80,550 Rs.194,234 Rs.218,664

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Subtotal Spent on Operations Rs.148,950 Rs.277,234 Rs.305,664

Additional Cash Spent

Principal Repayment of Current Borrowing Rs.0 Rs.200 Rs.2,400

Long-term Liabilities Principal Repayment Rs.8,400 Rs.9,000 Rs.10,000

Subtotal Cash Spent Rs.157,350 Rs.286,434 Rs.318,064

Net Cash Flow (Rs.39,468) Rs.14,147 Rs.16,081

Cash Balance Rs.16,932 Rs.31,079 Rs.47,160

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Projected Balance Sheet

Pro Forma Balance Sheet

Assets Year 1 Year 2 Year 3

Current Assets

Cash Rs.16,932 Rs.31,079 Rs.47,160

Inventory Rs.2,702 Rs.6,659 Rs.7,658

Other Current Assets Rs.1,500 Rs.1,500 Rs.1,500

Total Current Assets Rs.21,133 Rs.39,238 Rs.56,317

Long-term Assets

Long-term Assets Rs.5,000 Rs.5,000 Rs.5,000

Accumulated Depreciation Rs.996 Rs.1,992 Rs.2,988

Total Long-term Assets Rs.4,004 Rs.3,008 Rs.2,012

Total Assets Rs.25,137 Rs.42,246 Rs.58,329

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Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable Rs.18,697 Rs.21,605 Rs.24,253

Current Borrowing Rs.0 Rs.9,800 Rs.7,400

Subtotal Current Liabilities Rs.18,697 Rs.31,405 Rs.31,653

Long-term Liabilities Rs.56,600 Rs.47,600 Rs.37,600

Total Liabilities Rs.75,297 Rs.79,005 Rs.69,253

Paid-in Capital Rs.15,000 Rs.15,000 Rs.15,000

Retained Earnings (Rs.17,100) (Rs.65,160) (Rs.51,759)

Earnings (Rs.48,060) Rs.13,401 Rs.25,834

Total Capital (Rs.50,160) (Rs.36,759) (Rs.10,924)

Total Liabilities and Capital Rs.25,137 Rs.42,246 Rs.58,329

Net Worth (Rs.50,160) (Rs.36,759) (Rs.10,924)

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Projected Financial Ratios

Ratio Year 1 Year 2 Year 3

Sales Growth 0.00% 146.50% 14.99%

Percent of Total Assets

Inventory 10.75% 15.76% 13.13%

Other Current Assets 5.97% 3.55% 2.57%

Total Current Assets 84.07% 92.88% 96.55%

Long-term Assets 15.93% 7.12% 3.45%

Total Assets 100.00% 100.00% 100.00%

Current Liabilities 74.38% 74.34% 54.27%

Long-term Liabilities 225.16% 112.67% 64.46%

Total Liabilities 299.54% 187.01% 118.73%

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Net Worth -199.54% -87.01% -18.73%

Percent of Sales

Sales 100.00% 100.00% 100.00%

Gross Margin 50.00% 50.00% 50.00%

Selling, General & Administrative

Expenses

90.68% 45.20% 42.02%

Advertising Expenses 0.00% 0.00% 0.00%

Profit Before Interest and Taxes -35.64% 8.55% 12.58%

Main Ratios

Current 1.13 1.25 1.78

Quick 0.99 1.04 1.54

Total Debt to Total Assets 299.54% 187.01% 118.73%

Pre-tax Return on Net Worth 95.81% -52.08% -337.84%

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Pre-tax Return on Assets -191.19% 45.32% 63.27%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin -40.77% 4.61% 7.73%

Return on Equity 0.00% 0.00% 0.00%

Activity Ratios

Inventory Turnover 48.00 31.04 23.34

Accounts Payable Turnover 5.31 9.12 9.12

Payment Days 35 37 38

Total Asset Turnover 4.69 6.88 5.73

Debt Ratios

Debt to Net Worth 0.00 0.00 0.00

Liquidity Ratios

Net Working Capital Rs.2,436 Rs.7,833 Rs.24,664

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Interest Coverage -6.95 4.36 8.21

Additional Ratios

Assets to Sales 0.21 0.15 0.17

Current Debt/Total Assets 74% 74% 54%

Acid Test 0.99 1.04 1.54

Sales/Net Worth 0.00 0.00 0.00

Dividend Payout 0.00 0.00 0.00