A guideline on how to create a business plan for your dream venture. This business plan is for a budding entrepreneur looking to open a store!

1. A comprehensive report that describes a business plan for a home studio – a furnishing
cum furniture store, called Interior Views. The plan involves evaluation and determination
of process to setup the store offline as well as online.
BUSINESS PLAN
INTERIOR VIEWS | WELCOME HOME!
GROUP 3, NVSU (SA) MANAS | PHANI | MAHESH | JUHI | PALLAVI

2. 1
BUSINESS PLAN
INTRODUCTION
J.V. Complex, 2/13 Dr. R.S. Marg
Indore, Madhya Pradesh – 452001
InteriorViews.in; @interiorviews
“Interior Views is your local resource for your interior
design needs, including window coverings from D’décor
and custom window treatments, upholstery, exclusive
access to Springwell mattresses, complete range of bed &
bath linens, wall & floor coverings and furniture.
Count on the knowledgeable and friendly professionals at
Interior Views to coordinate your decorating project from
start to finish. Our distinctive services include professional
measuring, experienced installation, and stylish design
advice, all provided with a local flair.”
Today we have separate furniture and furnishing
showrooms – either you get furniture or interior furnishings,
but not both. Interior Views – The Home Studio, will be a
one of a kind home décor store in India. It would be a
furnishing cum furniture store – a one stop solution for a
customer’s home decoration needs. It shows what ideal
homes, ideal offices and ideal rooms look like. We would
also provide interior design consulting to customers by
experts. Currently, we are planning to open the very first
store in Central India’s largest city Indore. Along with an
offline brick and mortar store, the plan is to take the store
online where larger audience is reached. The online store
would be an e-commerce website where people are able
to order furniture, furnishings according to their preferred
dimensions, bath and bed linen items. The website would
offer complete customization to customer with VAS of
financing, delivery and installation. Targeting both B2C
customers and B2B customers, the store would
subsequently expand to Bhopal and Raipur. We have
positioned the store to be a premium home décor store
catering to urban upper and middle class households and
commercial customers including hotels, real estate,
builders, restaurants, etc. The initial financing required
would be approximately Rs. 70 lakhs and it would be
procured from VCs and banks. The invested money would
allow us to construct and develop a store as well as a fully
functioning website.

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EXECUTIVE SUMMARY
“The value of idea lies in the using of it.”
Thomas Edison, Co-founder – General Electric
Interior Views - The Home Studio is a home décor store following a hybrid model of brick and
mortar as well as e-retailing. This is the first store in India to offer products and services in all
three segments of home decoration industry-furniture, furnishing and wall & floor coverings,
unlike the current market offerings who exist in either of the above mentioned segments.
Through our retail store in the city of Indore, we would be catering to upper/middle class
households as well as commercial customers. By means of our website, we would be able to
cater to a large audience- predominantly millennials, young urban population in Tier 1 and Tier
2 cities. We also aim to target the distinctive group in this business – interior designers and
architects through our premium and luxury products. This concept is to provide a one-stop
solution to people who are on the trending lifestyle of increasing time poverty for all home décor
needs. As said by Dave Thomas, Founder - Wendy’s: “What do you need to start a business?
Three simple things: know your product better than anyone, know your customer and have a
burning desire to succeed”.
The global home décor market is expected to garner $664 billion by 2020. The Indian furniture
segment is estimated to be of the size worth INR 121,748 crores, whereas Indian furnishing
segment is projected to cross INR 40,000 crores by 2020, with a healthy growth rate of 8%. In
recent years, the online selling of home decor products has gained momentum and is expected
to grow at a CAGR of 50.42% in revenue over the period of 2017-20. India has emerged as one
of the fastest growing markets in this sector owing to increasing rate of urbanization, improving
lifestyles, rising disposable incomes, increasing penetration of organized retail and emerging
middle class. We believe that now is a good time to enter into this business with a unique idea
targeted at a potentially large and growing urban as well as middle class.
Interior Views as a company plans to attract and retain customers through its advertising and
exclusive and special services, and is being positioned as a premium and luxury store at
affordable prices. We have decided to offer exclusive access to Springwell mattresses and

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D’décor gallery, as well as interior design consulting to our customers for their design needs.
We also sought to provide after-sales service in the form of cleaning, maintenance and repair.
In-store classes, strong social media marketing and print ads in interior design magazines and
newspaper dailies will be employed to generate awareness and increase visibility. To target the
special group of interior designers and architects, Interior Views will align and associate with
Institute of Interior Designers India.
In order to start-up the business, the Company foresees that it will require an initial amount of
INR 70 lakhs in financing. The high start-up costs are attributable to the high rental costs as well
as the aggressive marketing the Company will undertake. It is estimated that the annual turnover
in the first year would be between INR 1-1.25 crores, and we would be achieving breakeven in
between the fourth year of operations.
Future prospects for the Company are very attractive especially since the people are aspiring
for luxury & premium products, and there has been a boom in the real estate industry. With the
growth of the market and industry, Interior Views plans to gradually expand its marketing efforts
into the more cities of Central India – Bhopal, Raipur, Nagpur and will continue to offer the same
quality service to these new customers. We will also continue to please its customers by offering
special event packages, such as for weddings and festivals. With high surge of online home
décor market in India, we hope to expand our online business into geographies with high
potential such as Europe and Middle East, as in the end a vision without the ability to plan,
execute and grow means nothing.
“It’s not about ideas. Its about making ideas happen.”
Scott Belsky, Co-founder – Behance

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TABLE OF CONTENTS
INTRODUCTION ....................................................................................................................... 1
EXECUTIVE SUMMARY........................................................................................................... 2
1. INDUSTRY OUTLOOK, FORECAST & TRENDS ................................................................ 6
1.1 GLOBAL HOME DÉCOR INDUSTRY.......................................................................................... 6
1.1.1 MARKET STRUCTURE, FACTORS IMPACTING MARKET & GLOBAL TRENDS................ 6
1.1.2 ONLINE HOME DÉCOR MARKET ........................................................................................ 7
1.2 HOME DÉCOR INDUSTRY IN INDIA .......................................................................................... 8
1.2.1 FURNITURE SEGMENT........................................................................................................ 9
1.2.2 FURNISHING SEGMENT.................................................................................................... 10
1.2.2 ONLINE HOME DÉCOR IN INDIA ....................................................................................... 11
2. COMPANY BACKGROUND ............................................................................................... 13
3. MARKET ANALYSIS .......................................................................................................... 15
3.1 MARKET SEGMENTATION ...................................................................................................... 15
3.2 TARGET MARKET .................................................................................................................... 16
3.3 COMPETITION .......................................................................................................................... 17
3.4 BUYER BEHAVIOUR ................................................................................................................ 18
4. ECONOMICS OF THE BUSINESS ..................................................................................... 19
5. MARKETING PLAN ............................................................................................................ 20
5.1 MARKET NEEDS....................................................................................................................... 20
5.2 OVERALL MARKETING AND SALES STRATEGY .................................................................. 20
5.2.1 POSITIONING ..................................................................................................................... 20
5.2.2 CORE STRATEGIES........................................................................................................... 21
5.2.3 DIGITAL MARKETING STRATEGIES ................................................................................. 22
5.3 MARKETING MIX ...................................................................................................................... 22
5.3.1 PRODUCT MARKETING..................................................................................................... 23
5.3.2 PRICE.................................................................................................................................. 24
5.3.3 PROMOTION....................................................................................................................... 24
5.3.4 SERVICE............................................................................................................................. 25
5.4 DISTRIBUTION PLAN ............................................................................................................... 26
5.4.1 DISTRIBUTION FOR STORE.............................................................................................. 26
5.4.1 DISTRIBUTION FOR E-COMMERCE WEBSITE................................................................. 26
5.5 MARKETING GOALS & OBJECTIVES ..................................................................................... 26
5.5.1 MARKETING GOAL............................................................................................................. 26
5.5.2 MARKETING OBJECTIVES ................................................................................................ 26
6. DESIGN & DEVELOPMENT PLANS.................................................................................. 27
7. OPERATIONS PLAN .......................................................................................................... 28

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7.1 OPERATIONS PLAN FOR RETAIL STORE.............................................................................. 28
7.2 OPERATIONS PLAN FOR ONLINE SITE ................................................................................. 29
8. TECHNOLOGY PLAN......................................................................................................... 30
9. MANAGEMENT TEAM & ORGANIZATION ....................................................................... 31
9.1 ORGANIZATIONAL STRUCTURE ............................................................................................ 31
9.2 PERSONNEL PLAN & JOB DESCRIPTIONS ........................................................................... 31
10. OVERALL SCHEDULE..................................................................................................... 35
11. CRITICAL RISKS & CHALLENGES................................................................................. 35
11.1 CHALLENGES......................................................................................................................... 35
11.2 RISK IDENTIFICATION ........................................................................................................... 36
11.3 RISK ASSESSMENT ............................................................................................................... 37
12. FINANCIAL PLAN............................................................................................................. 39
12.1 PRO FORMA INCOME STATEMENT (5 YEARS) ................................................................... 39
12.2 ASSUMPTIONS, INVENTORY, WAGES & EXPENSES.......................................................... 39
12.3 BALANCE SHEET................................................................................................................... 41
APPENDIX .............................................................................................................................. 42
A. INTERIOR VIEWS WEBSITE...................................................................................................... 42
B. STORE DESIGNS ....................................................................................................................... 43
C. SWOT ANALYSIS OF INDUSTRY.............................................................................................. 44
D. ABOUT INTERIOR DESIGNING ................................................................................................. 45

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1. INDUSTRY OUTLOOK, FORECAST & TRENDS
1.1 GLOBAL HOME DÉCOR INDUSTRY
1.1.1 MARKET STRUCTURE, FACTORS IMPACTING MARKET & GLOBAL TRENDS
The world home décor market is divided into three segments: furniture, textiles or furnishings, and floor
& wall coverings. Furniture includes traditional furniture offerings, foldable furniture and ready to
assemble furniture. Furnishings include curtain fabrics, upholstery, rugs, bath Textiles, Bed linens,
Kitchen and Dining Textiles, Living room Textiles, blinds and shades. Floor coverings include Tiles, Wood
& Laminate, Vinyl & Rubber, Carpet & Rugs, wall hangings, paintings, and wallpapers.
FIGURE 1: HOME DECOR SEGMENTATION
Home Decor Market is expected to garner $664.0 billion by 2020, registering a CAGR of 4.2% during the
forecast period 2015-2020. Expansion and developments in real estate industry, have supplemented the
growth of world home decor market. Globalization facilitates easier and wider availability of home decor
products and designs for consumers. Moreover, growing consumer preference towards adoption and
usage of eco-friendly products, known for their minimal impact on the environment, has also boosted the
growth of the market.
Nowadays, consumers prefer online retail platforms for buying furniture, owing to availability of a wide
array of home decor products at discounted/affordable price. Increasing cost of raw materials, such as
leather and superior quality wood, is limiting the market growth. Improving lifestyle and increasing

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disposable income of individuals would offer several growth opportunities to the players operating in the
market.
FIGURE 2: TOP FACTORS IMPACTING MARKET
Key players in the global market: Bed Bath & Beyond, IKEA, Macy's, and Walmart. The floor covering
segment occupied the largest market share in 2015-16, followed by furniture. In 2015-16, world home
decor market was dominated by Asia-Pacific region and the region is expected to register the fastest
CAGR during the forecast period. Asia-Pacific is leading the global home décor market, owing to the high
demand from residential buyers. It is estimated that Asia-Pacific would exhibit a significant growth trend
during forecast period owing to the increasing demand for home décor products from countries such as
India & China.
1.1.2 ONLINE HOME DÉCOR MARKET
According to the online home decor market 2016 report, in 2015 global online home furniture market and
global online home furnishings market, combined, were worth $39.9 Billion, with overall global furnishings
market forecast to grow at a CAGR of 8.87% in the next five years. With smartphones and increasing
Internet penetration, consumers can now check and buy products online while on the move. This feature
has led a significant number of vendors to conduct their business operations online. Vendors in the online
home decor market also provide hassle-free home delivery options to customers. Analysts forecast global
online home decor market to grow at a CAGR of 19.45% during the period 2016-2020. Europe dominated
the global online home decor market and held a market share of more than 44% during 2015.

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The global online home decor market is fragmented due to the presence of a few international vendors
and several regional players in the market. Vendors in the market compete on the basis of product
portfolio, differentiation, and pricing to gain maximum market traction during the forecast period. To
survive and succeed in highly competitive environment, vendors need to distinguish their product and
service offerings through a clear and unique value proposition. Key players in the global online home
decor market: Amazon, Bed Bath & Beyond, IKEA, and Wayfair.
1.2 HOME DÉCOR INDUSTRY IN INDIA
FIGURE 3: INDIAN HOME DÉCOR PRODUCTS
FIGURE 4: KEY GROWTH DRIVERS IN INDIA

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1.2.1 FURNITURE SEGMENT
The furniture industry in India is estimated to be of the size worth INR121,748 crores. Of this INR36,378
crores accounts for the wooden furniture. Indian is huge market for the import furniture coming mostly
from the Italy, Germany, Spain, China, Korea, Malaysia, Indonesia, Philippines and Japan.
The furniture industry in India can be classified as organized and unorganized. With an unorganized and
fragmented furniture market, India offers immense opportunities to domestic and international players.
The demand for furniture is growing in the country on account of increasing purchasing power of the
consumers, changing lifestyle, increasing urbanization and widespread availability in tier II and III cities.
The domestic furniture market in India is highly unorganized with regional players offering a stiff
competition to leading furniture companies, which form the organized sector in the Indian furniture
market. In order to increase the product availability, organized furniture manufacturers are also entering
into tie-ups with E-commerce retailers. Moreover, the furniture retail chains are also focusing on
increasing their presence in tier II & III cities.
FIGURE 5: DEMAND FOR FURNITURE IN INDIA
The major players in this market are Godrej Interio, Hometown, Durian, Wipro, Style Spa, Home Center,
Nilkamal in the offline category whereas Urban Ladder, Pepperfry, FabFurnish, Zansaar, Mebelkart,
Room Story in the online category. Majority of the players in this industry are unorganized. In the
unorganized sector the work is mostly done on contract basis. The size of the contracts could be from
very large to very small of manufacturing single pieces of furniture. 85 percent of the industry is
unorganized.

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The furniture market is divided in three segments which is the home furniture, the office furniture &
contract segment. The home furniture comprises of 65 percent of the total sales followed by the office
furniture at 20% and remaining 15% is the contract segment. The selling and distribution comprises of 3
tier: distributor, wholesaler and retailer. The economy of India is getting healthier. The spending power is
increasing and the increasing thrust on the office furniture and real estate is going to keep this market
growing. However, over the next five years, the Indian furniture market is expected to witness increasing
consolidation due to growing entry of international companies as a result of the government’s 100% FDI
approval into the country’s furniture industry. Consequently, the value share of small and mid-sized
furniture players forming the unorganized sector is expected to decrease over the coming years.
FIGURE 6: PRODUCT WISE MARKET SHARE IN FURNITURE
1.2.2 FURNISHING SEGMENT
Home furnishing market in India is projected to cross INR40,000 crores by 2020, on account of rising
demand for contemporary designs, increasing number of households, booming real estate sector,
growing demand for branded and custom designed furniture and increasing availability of innovative and
affordable home furnishing products in the country. Over the last five years, India has emerged as one
of the fastest growing markets for home furnishing products in APAC. In 2016, the home furnishing market
in India witnessed a Y-o-Y growth of around 9.5%. Home furnishing market in the country is projected to
grow at a CAGR over 8% during 2017 - 2020.
Home furnishings industry is one of the largest employment sectors in India providing means of income
to weavers, craftsmen, skilled labors, hence adding on to country’s economy. It is majorly surrounded by
unorganized sector. Only around 30% of the sector is organized and rest 70% is unorganized.

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India is one of the fastest growing markets for home furnishing products in Asia-Pacific. Rising demand
for home decor products such as bed linen products, wall hangings, rugs & carpets, etc., along with
growing demand for handcrafted products is boosting the country’s home furnishing market. Rising
domestic production of home furnishing products along with increasing number of government initiatives
such as handicraft schemes, Technology Upgradation Fund Scheme (TUFS), integrated textile parks,
etc., coupled with government campaigns such as Make in India aimed at encouraging domestic
manufacturing, rising FDI inflow in textile and apparel sectors are anticipated to fuel growth in India home
furnishing market through 2020. Growing usage of home furnishing products in residential as well as non-
residential sectors is expected to drive demand for home furnishing products in India, during the forecast
period. India home furnishing market is a highly fragmented with several leading players across the value
chain. Hospitality, healthcare, food services, residential and commercial sectors are the key end-use
segments of home furnishing products in the country.
According to the World Bank data, urbanization rate in countries such as China, India is increasing
rapidly. Since urbanization is a key influencing factor of the market, Asia Pacific region is expected to
gain a stronger foothold, thus, driving the market growth. According to the data revealed by the Census
of India, urbanization level increased from 27.8% to 31.2% from 2001 to 2011. Further, the Ministry of
Statistics Program and Implementation estimated that Indian real estate industry would witness a notable
growth of 8%-9% during the forecast period. Thereby, urbanization and growth of real estate industry
would boost the market growth in India.
FIGURE 7: CATEGORY WISE SALES
1.2.2 ONLINE HOME DÉCOR IN INDIA
Home decor can be categorized as household furniture, home furnishings, and other decorative items
such as lamps, artifacts, clay pots, and candles. In India, the online selling of home decor products has

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gained momentum in recent years. Online vendors are able to offer a diverse range of products that can
be used in indoor as well as outdoor spaces. Consequently, online customers have a plethora of options
to choose from, including products from local and international manufacturers. Analysts forecast the
online home décor market in India to grow at a CAGR of 50.42% in revenue over the period 2016-2020.
FIGURE 8: ONLINE HOME DECOR MARKET GROWTH
CRISIL Research estimates the size of online furniture and handicrafts segments at around Rs 28 billion
in 2015-16. The market grew tremendously over the past few years, on the backdrop of rising internet
penetration along with factors such as rising disposable income, higher discounts, easy delivery and
installation service provided by players. It is expected that the market to continue the growth momentum
to reach close to Rs 130-135 billion in 2018-19.
FIGURE 9: ONLINE MARKET SHARE

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2. COMPANY BACKGROUND
Industry Home Decoration
Company Name Interior Views LLC
Vison To be the top home décor store in Central India and be among the top 5
online décor companies, and get known for integrity, human excellence, high
standards of performance and customer trust & satisfaction
Proposed Offering  First of its Kind! An Offline as well as online Home Studio store: INTERIOR
VIEWS (name of the Home Studio)
 By Home studio we mean a store that offers entire home décor solutions
and includes offerings from all 3 segments of furniture, furnishings/textiles,
and floor & wall coverings
 High end Home Studio Store in Indore and a website for selling online –
interiorviews.in
Products & Services  Furniture:
o Foldable furniture
o Ready-made furniture as well as Ready to assemble furniture
o Building furniture on a contractual basis
 Furnishings:
o All types of curtain and upholstery fabrics including jute, chenille,
cotton, drapery, linen, polyester, velvets
o Entire range of bed, bath and dining linen including bed-sheets,
dining mats, bed-covers, towels, napkins, blankets, quilts, shower
curtains, bath mats

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o Carpets & Rugs: handmade carpets, traditional carpets, bed rugs
and center pieces
o Blinds & Shades including roller blinds, horizontal & vertical blinds,
chic blinds and awnings
 Accessories, Coverings & Fittings:
o Wallpapers and paintings including paper, vinyl, silk, viscose types
o Floor coverings including wooden, natural wood, grass and vinyl
o Other accessories like tussles, holders
Exclusive Services  Professional services for interior designing
 Exclusive D’décor gallery of blinds and bath linens (world’s no. 3
manufacturer)
 Exclusive dealership and distributorship of Springwell mattresses (India’s
top mattress manufacturer)
Competitive
Advantage
 Complete home décor solutions: furniture + furnishings, unlike the
competition which are either in furniture or furnishings
 Omni channel presence: online + offline, whereas competition have mainly
online or offline presence
 Focus on product selection and quality
 Catering to all age groups – whether young millennial or the middle-aged
and older audiences
 Excellence in customer service
Improved features
and value added
services
 Customization through online channel of e-commerce website
 A mobile app for e-commerce + customer support
 Servicing like cleaning of curtains, sofas, furniture; replacement of items
 Free Delivery & Installation from start to finish
 Financing options for our products
Estimate annual
turnover in first year
INR1.25 crores
Estimated CAGR 15-20%
Online Market share
by first two years
2-3%

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3. MARKET ANALYSIS
3.1 MARKET SEGMENTATION
As stated, the market is majorly classified into two major categories: Organized sector and Un-organized
sector, with unorganized sector having 85% presence in furniture and 70% presence in furnishing. The
market is highly fragmented with local and regional players giving competition to national players. The
national players have not been able to gain market share of more than 5%. The further classification in
the home décor market is:
FIGURE 10: MARKET SEGMENTATION
 Manufacturers: those who manufacture furniture and furnishing fabrics; big furniture
manufacturers are Godrej, Nilkamal, Durian and Evok. Big furnishing manufacturers include
D’décor Fabrics, GM Fabrics, Dicitex Furnishings, Bombay Dyeing, Welspun and Trident. Our
aim is to procure products from top manufacturers in all the three segments
 Wholesalers: those who procure huge quantity of products like large quantity fabric rolls and sell
to economical and sub-economical B2B customers predominantly, represent the major
unorganized sector
 Distributors: In furnishing business, there is hardly and in between agent called the distributor.
However, distributors sell products to retailers in furniture business, manufacturers do not sell
directly to retailers. However, today the big retailers are able to procure from manufacturers
 Offline Retailers: brick and mortal retail stores that either sell furniture or furnishings, but not both;
they come under both organized and unorganized sectors – large retailers largely come under
organized retail
 Online Retailers: players like Urban Ladder, PepperFry.com fall in this category – present in both
furnishing and furniture segment
 Franchises – franchises of popular furniture chains like Style Spa, Evok, Nilkamal
Market
Organized sector
Unorganized
sector
Organized/Un-Organized
•Manufactuers
•Wholesalers & Distributors
•Importers
•Retailers - online and offline
•Franchises
•Exclusive retailers
•Specialty reatilers
•Dealerships

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 Exclusive retailers – these retailers sell only products of one brand like of D’décor, Bombay Dyeing
and Welspun
 Specialty retailers – these retailers sell only one type of category, for ex: a wallpaper store or a
carpet store
 Dealerships – retailers who get the rights to sell 2 or 3 brands only at their store in the respective
catchment areas
What we aim here is to be a retailer with both online as well as offline presence, we will directly procure
from manufacturers, gain some exclusive dealerships and try to minimize the dependency on distributors.
FIGURE 11: VALUE CHAIN ANALYSIS OF HOME DECOR MARKET
3.2 TARGET MARKET
The current business proposition aims to target the domestic retail market. The target market for online
store consists of the millennials, young urban population, majorly newly married people in Tier-1 and
Tier-2 cities. The product makes a lot of sense with decreasing sizes of apartments and need for
affordable yet stylish furniture in urban markets. The target market for our brick and mortar store is the
residential customers in the form of upper class and upper middle class households.
The proposition also aims to tie-up with institutional buyers like real-estate developers dealing in
residential building, architects and interior designers. B2B customers have generally huge requirements
and we aim to acquire commercial customers in the form of hotels, property developers, offices and
workplaces, restaurants, aircraft and yacht designers or manufacturers.

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One group which is very important in the home décor business is that of architects and interior designers,
our goal would be to reach out to top and influential people in this group, so as to gain business from
them. To get business during off-season this particular group is very essential for our offline retail
business.
3.3 COMPETITION
Since the industry is highly fragmented, there is no player with more than 5% market share. Top players
like D’décor and Godrej have only 3-4% market share in the furnishings and furniture segments
respectively.
Top competitors in the online space:
Top competitors in the offline space:
Our main competitors are regional and local stores present in Indore and surrounding area for offline
space whereas our main competitors are Urban Ladder, PepperFry.com, D’décor home fabrics in the
online space.
Furniture Segment Urban Ladder, PepperFry.com, Roomstory.com, FabFurnish.com
Furnishing Segment D’décor home fabrics, Maspar, Bedbathmore.com, Flipkart,
Snapdeal, Style Spa
Accessories & Coverings Jabong, Hunter Douglas, D’décor Blinds, The Label
Furniture Segment  National chains having their presence in Indore - Style Spa,
Home Town, Evok, Nilkamal
 Regional chains in Indore – Stellar, Mehidpurwala, Tana Bana
 Local stores in Indore – Gemini, Furniturewala
Furnishing Segment  National chains having their presence in Indore – D’décor,
Welspun, Bombay Dyeing
 Regional chains in Indore –Tana Bana
 Local stores in Indore – Grah Shobha, Beleza
Accessories & Coverings Hunter Douglas, D’décor, Marvel

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3.4 BUYER BEHAVIOUR
Recent trends in the buying behavior:
 Due to increasing time poverty, convenience has become one of the defining themes of the
current decade. Several parameters of convenience include:
o Access (ease and time)
o Decision (information, ease of making choice, and time)
o Transaction (ease and time)
o Timing (flexibility)
Convenience is the main reason behind 50.42% expected growth rate of online home décor
market in India. So, brick and mortar stores to survive must adopt Internet as a sales channel
 Interior design for homes is no longer the preserve of the rich and wealthy. The concept of good
living is catching up with the middle class Indians. They do not mind spending an extra buck in
decorating their new homes. Imported and designer seem to be the key words when it comes to
shopping for home décor
 While decorating a new residence: Buying Decision is left to a Builder/Architect/Interior Decorator
or the owner
 While renovating a residence: Buying Decision is made by an Interior Designer or by the owner
 While furnishing a commercial complex: Buying Decision is made by the
Builder/Architect/Interior Designer
 Hence, it has become very important for manufacturers and retailers to focus on Architects,
Builders, and Interior Decorators, for steady business
 One particular pattern seen in Tier II and Tier III cities is that there is an increase in demand for
online retailing
 Growing concern for environment has led to consumers looking for eco-friendly product, hence
bamboo furniture and cotton curtain fabrics have become very popular recently, there has been
a surge in demand for eco-friendly furnishings
 Shopping for home décor has become very important for Indian upper class and middle class.
They are spending on average 5-6 hours on shopping for home décor products as compared to
average spending of 2-3 hours 8 years ago
 Having a designer home with fashionable products has become a status symbol and people are
now loving to flaunt their homes to their friends and families – this has resulted in demand for
high-end home décor items. This particular trend has been observed in North, Western and
Central India

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 Average per capita consumption of home décor has dramatically increased from Rs. 300 in 2001
to Rs. 3500 in 2016, which is a clear proof that the aspirational class has been taking a leap for
the luxury products
4. ECONOMICS OF THE BUSINESS
The economics of the business: Before stating the business, we need to decide if the business is
economically feasible. Our business idea came from observing the need in the market. The team has
identified the need and product that will be developed to fill the existing gap in the market.
We are expecting that the business will have pricing power as the market is currently untapped, this
should continue for some time. Adequate marketing efforts should be able to incite demand.
Revenue Drivers and Profit Margin: Revenue drivers are quality of raw material, visibility,
craftsmanship and variety. We need to concentrate on the revenue drivers to generate profit. The profit
margin is expected to be, and a gradual increase is expected. Gradual increase in profit margin is difficult
task, as competition is expected to increase. The need to concentrate on operational efficiency to improve
the margins.
Fixed and variable cost: Fixed costs include rent, electricity and depreciation. Variable costs include
labour, material, admin and marketing expenses.
Start-up costs: We estimate that getting the operations running will require 71 Lakhs. Out of 71 lakhs,
41 lakhs of equity and 30 lakhs of debt
Breakeven: The breakeven is expected during the 4th
year
Year Revenue Profit Expenses
2018 12500000 5750000 7193750
2019 13800000 6900000 7820220
2020 16560000 8280000 8490349.2
2021 19872000 9936000 9200350.452
2022 23846400 11923200 10420315.79

21. 20
5. MARKETING PLAN
5.1 MARKET NEEDS
Interior Views is providing its customers the opportunity to create a home environment to express who
they are. At the same time, for corporate clients, it offers complete design solutions for their professional
space at affordable price. They have the choice to select their fabric and go whatever direction they
choose -- to fabric it themselves or have it done for them. They have the opportunity to actively participate
in the design, look, and feel of their home. They desire their home to be personal, unique, and tasteful
as well as communicate a message about what is important to them. We seek to fulfil the following
benefits that we know are important to our customers.
 Selection - A wide choice of current and tasteful decorator fabrics and offerings
 Accessibility - The buyer can walk out of the store with the item they need to begin their project.
 Customer Design Services - Employees have a sales or a design background to make them a
resource for the customer. This enables customers to benefit from suggestions regarding the
selection of their fabric and related products in a manner to complement their design choice.
 Competitive Pricing - All products will be competitively priced in comparison to stores in the
Indore market (best price comparison) and other channels of distribution, such as Internet.
5.2 OVERALL MARKETING AND SALES STRATEGY
Our marketing and strategy is based on becoming the resource of choice for people looking for complete
home decor solutions. It is based on superior performance in the following areas:
 Product selection.
 Product quality.
 Customer service.
Our marketing and strategy will create awareness, interest, and appeal from our target market for what
Interior Views offers our customers: -
5.2.1 POSITIONING
For the person creating a personalized and unique impression of her/his home, Interior Views would be
the best local source for selection and price points of the fabric, customer-oriented design services, and
a variety of other home accessory and furniture products. Customers will be impressed with, and return
for, the great in-stock selection, value-oriented pricing, and excellent customer service. Interior Views
would be a pleasant and tasteful resource that encourages everyone in the process of decorating their
home. Unlike employing an interior decorator, Interior Views allows the individual to participate in their
design choices to the extent they choose, and realize greater value for the dollars they invest.

22. 21
5.2.2 CORE STRATEGIES
The single objective is to position Interior Views as the premier source for home decoration, commanding
a majority of the market share within three years. The marketing strategy will seek to first create customer
awareness regarding the products and services offered, develop that customer base, establish
connections with targeted markets and work toward building customer loyalty and referrals.
Interior Views' four main marketing strategies would be:
1. Increased awareness and image.
2. Leveraging customer base.
3. Cross selling.
4. New home construction promotion.
STRATEGY #1: INCREASED AWARENESS and IMAGE - Informing those not yet aware of what Interior
Views offers.
 Advertising
 Referral Generation
 Realtor "open house" promotions
 Complementary vendor referrals
 Organization Relationships
 Co-sponsorships of fund raising activities
 Hosting events
 Luncheons.
 Teas.
 Evening events.
STRATEGY #2: LEVERAGING ECUSTOMER BASE - Our best sales in the future will come from our
developing customer base.
 Newsletter
 Sales promotions
 Classes
 Events
 Customer Service and Relationships
 Exceptional customer service in the store
 Follow up contact
 Personal shopper support
 Additional Experiences

23. 22
 Classes
 Demonstrations
STRATEGY #3: CROSS SELLING - Increasing the average dollar amount per transaction.
 Additional sales of trims, notions, and accessories
 Promoting sales of furniture, antiques, showpieces and paintings
STRATEGY #4: NEW HOME CONSTRUCTION PROMOTION - Connecting with people involved in the
building process.
 Connecting with "Suppliers"
 Realtors gift certificate program
 Builders design support services
 Loan Officers gift certificate program
 Connecting with "Customers"
 Subscription and use of "newcomers" report
 Chamber of Commerce new members update
5.2.3 DIGITAL MARKETING STRATEGIES
1. Competitor Research
2. Creating Responsive Web Design
3. Setting up E-Commerce Solution: Online Store
4. Inbound Marketing: Search Engine Optimization
5. Fresh Content is King – Creating Content that addresses our Target Audience Concerns
6. Pay-per-click Advertising
7. Social Media Marketing
5.3 MARKETING MIX
In brief, our marketing mix is comprised of these approaches to product, pricing, advertising and
promotion, and customer service:
 ADVERTISING AND PROMOTION – ads in interior and home décor magazines, newsletters.
 CUSTOMER SERVICE - Excellent, personalized, fun, one-of-a-kind customer service is
essential. This is perhaps the only attribute that cannot be duplicated by any competitor.
 PRODUCT MARKETING
Our products enable our customers to experience support, gather ideas and options, and
accomplish their decorating goals. They will be able to create a look that is truly unique to
their home. They will not be able to do this in the same way through any other resource.

24. 23
 PRICING
Product pricing is based on offering high value to our customers compared to most price points
in the market. Value is determined based on the best quality available, convenience, and
timeliness in acquiring the product. We will consistently be below the price points offered
through interior designers and consistently above prices offered through the
warehouse/seconds retail stores, but we will offer better quality and selection.
5.3.1 PRODUCT MARKETING
Our products enable our customers to experience support, gather ideas and options, and accomplish
their decorating goals. They will be able to create a look that is truly unique to their home. They will not
be able to do this in the same way through any other resource.
FIGURE 12: STYLISH FOLDABLE FURNITURE
FIGURE 13: INNOVATIVE DESIGNS OF OUR PRODUCTS

25. 24
FIGURE 14: TRADITIONAL VS MODERN LOOK - MULTIPLE OFFERINGS FOR OUR CUSTOMERS
5.3.2 PRICE
Product pricing is based on offering high value to our customers compared to most price points in the
market. Value is determined based on the best quality available, convenience, and timeliness in acquiring
the product. We will consistently be below the price points offered through national and regional chains
and consistently above prices offered through the warehouse/seconds retail stores, but we will offer better
quality and selection.
5.3.3 PROMOTION
Offline Promotions:
 Newspaper Advertisements – ads in local Hindi dailies like Dainik Bhaskar
 Promotion in IIID events (Institute of Interior Designers, Indore)
 Magazine Promotions – promotions in magazines for home décor – local as well as regional,
for example – Glitz, the most popular magazine for home décor in central India

26. 25
 Quarterly Newsletter and Postcard - A direct mail, 4-page newsletter distributed to the
customer mailing list generated from people completing the "register" sign up in the store.
 In Store Classes - "How to" classes which have the potential to generate leads as well as
sales. Typically, 60 minutes in length and mostly would be held on weekends, these are some
ideas for the classes:
o "Pillow Talk" - Pillow fabrication.
o "Shades of the Season" - Window treatment options with fabric.
FIGURE 15: A SAMPLE MAGAZINE AD
Online Promotions:
 Video Tutorials and customer testimonials
 Blogging on popular blogs for home décor
 SMS and Email Marketing plus social media marketing: creating beautiful pages for the store on
social media and run a contest to ask consumers to post their photos of home designed by us
5.3.4 SERVICE
The first goal is to recognize everyone as they come into the store. If they are a repeat customer, they
are referred to by name. If they are a new customer, they are asked, "How did you hear about us?" Help
is always available and never invasive. The store is staffed to be able to dedicate time and energy to
customers that want assistance when they need it. The store is designed so a customer can sit as long
as they want to look at books, fabric samples, and review the resources in the store. We will provide extra
services of maintenance and repair as well like cleaning their curtains, changing machines of blinds, etc.

27. 26
It is one of our greatest assets and points of differentiation. Insight, ideas, inspiration, and fun is the goal.
Repeat, high rupee purchases from loyal customers is the desired end product.
5.4 DISTRIBUTION PLAN
5.4.1 DISTRIBUTION FOR STORE
All products are distributed through the retail store. The store does receive phone orders from established
customers and we will be developing a website to make internet as a distribution channel. So, yes apart
from traditional distribution through retail store, a new channel of internet is being added.
5.4.1 DISTRIBUTION FOR E-COMMERCE WEBSITE
Zone wise distributors will be selected through a process of selection. This distribution will be responsible
for warehousing and distributing products. The distributor’s job will be tie up with small and medium size
retailers and push the items in their stores. The distributors will also be responsible for delivering the
items ordered to the addresses of the buyers who purchase the products directly from the website. Bigger
retailers will be approached through direct sales force appointed by the company itself.
5.5 MARKETING GOALS & OBJECTIVES
What we hope to achieve from our marketing and sales strategy:
5.5.1 MARKETING GOAL
Interior Views LLC is a store for discerning, quality-conscious buyers of decorator fabrics and
complementary home accessories and furniture. The store celebrates the home through the colour and
texture of home décor. The experience informs, inspires, and shows people how to transform their home
into a unique and personalized expression of themselves. Interior Views seeks to encourage people to
imagine what can be, and help make their vision a reality.
5.5.2 MARKETING OBJECTIVES
1. Maintain a gross margin of 45% each month.
2. Generate an annual turnover of >INR 1 crore
3. Realize an annual growth rate of approximately 20%
4. To generate visibility within community.
5. Increase the number of repeat customers.
6. Decrease the amount spent on marketing relative to the sales generated.

28. 27
6. DESIGN & DEVELOPMENT PLANS
The design and development will involve two fronts: designing the store and developing it and at the
same time working on a website and deploying it. Also, the development will happen across two
dimensions: market development and organizational development.
We start with the analysis of the competition in the market and since this is a unique concept there is no
direct competition. After realizing that there are not enough players in the market, we shift our focus on
the technical side that is, market development. When it comes to products, the offerings should be such
that it creates the durability and trust among the customers.
Development also involves the marketing of the product along with the technical side. The marketing of
this product will be done across digital and print media. Organizational development will come and evolve
as and when the company becomes fully functional after its initial stint.
Broad Steps involved in designing and development are:
1. Deciding on the target segment
2. Sizing the competition and the market
3. Zeroing in on the perfect location (which is easy accessible for all your customers)
4. Figuring out the investments and the initial capital required
5. Knowing the necessary licenses necessary and applying for it
6. Construction of store from existing facility (building from scratch too expensive) and designing
store layout
7. Developing and deploying the e-commerce website
8. Hire the superstars i.e. employees for the store
9. Selection of merchandise assortment and display
10. Developing Marketing, advertising & promotion programs to reach target audience and drive sales
Work to be done:
1. Figuring out how to get the initial investment – a minimum investment of 20 lakh rupees is needed
to start the venture. It can be procured via family, loan from banks or markets, etc.
2. Investigating various spaces in the city for finding ideal location for the store (a location with good
traffic)
3. Designing the right store layout for correct display of merchandise (by going to competition, we
would figure out how they lay out their stores, find the gaps and improve on that)
4. Taking care of legal work and licenses beforehand

29. 28
5. Finding out what type of employees are needed, what would be their role and the number of
employees required to start with
6. Working on the website design, content and products to be offered via online channel and
deciding on which mediums to promote the online store
7. OPERATIONS PLAN
7.1 OPERATIONS PLAN FOR RETAIL STORE
FIGURE 16: OPERATIONS PLAN
The various stakeholders involved in our Home Studio are shown in the above figure. The raw materials
and components will be provided by various suppliers. The furniture and furnishings will be manufactured
and integrated further by manufacturers. The distribution and selling will happen from our own company
store, through interior designers or experts and furniture will be sold as well by distributors. The greatest
opportunity for growth will lie selling through online. The strategy will be to target youngsters, young
married couples and online shoppers.
Suppliers
• Raw
Materials
• Components
Manufacturing
and Assembly
• Maufacturers
or Integrators
(Furniture)
Distribution
Channel
• Comany
stores
• Distributors
• Interior
Designers/
Experts
• E-commerce
platform
Customers

30. 29
FIGURE 17: VALUE CHAIN IN FURNITURE
The processes used in the manufacturing of furniture are standard methods of receiving material, cutting
& molding, component fabrication, assembly, finishing & packaging. The design of the article, for both
aesthetic and functional qualities, is an important aspect of the production process. Furniture
manufacturers and retailers use channels like Direct Sale, Wholesale, Retail. We have adopted a Hybrid
model (Brick Mortar and e-retailing).
FIGURE 18: VALUE CHAIN IN FURNISHING
7.2 OPERATIONS PLAN FOR ONLINE SITE
When the customers log on to Interior Views website, they can browse through various home décor
design samples (both 3D and 2D) on the site, special promotions available and option to research and
create their own home décor designs. Options also include choosing experts/ interior designers who can
guide them in designing their home, choice of locations and price. The website also includes chat rooms
where they can talk to previous customers about their experience and ask for suggestions. Once all these

31. 30
factors are in place, the user will be asked to fill out a form which requires general information. At this
time, they are entitled to receive the Company’s newsletter, as well as promotions-of-the-month. They
will also receive their own e-mail account when they have chosen a username and password. The price
estimate will be mailed to their account, or a representative will call them (depending on their
preferences), at which point they can decide whether or not to accept the home décor designs.
If the customer accepts the design, the company will make necessary arrangements of experts, people
and items to decorate their house. The customer will have to pay online directly to the company with 30%
as initial amount and rest after the décor is completed. When the work is complete, the company
representative will call the user to take feedback and any improvisation or re-work will be taken care of.
Now, the user will receive completion mail and will have to pay the rest amount.
8. TECHNOLOGY PLAN
Location After a proper catchment area analysis was conducted, it was found that in Indore
– area of Vijay Nagar is where the retail store must be located, predominantly on
Sayaji Road which is being developed as a major commercial area by Indore
Development Authority
Infrastructure
facilities
Infrastructure facilities required are electricity, water supply, good roads for
delivering materials and getting purchased items from manufacturer and such
facilities are available in Vijay Nagar
Land and
building
Store must be a part of building, it can not be built from scratch otherwise the costs
will run very high; store must be located on ground floor for easy access to patrons;
a new building constructed by top builders of the city has been identified for the
store location
Plant and
machinery
As such, since this is a retail store and thus includes no plant and heavy machinery,
however store will have modern stitching machines and computer machines
Licenses /
permits
License to conduct business must be obtained from Indore Municipal Corporation;
also a TIN number must be obtained from Sales Tax Department and similarly
company must be registered with the Income Tax Department; and necessary
permits must be obtained from PF and Labor Departments
Licenses /
installed
capacity
For specific electric wattage requirements, necessary permit must be obtained from
the State Electricity Board as the store would require higher wattage than
recommended standard to operate full time
Balancing of
machinery
Proper loads must be balanced while using computer machines and stitching
machines. Since they are small machines, so UPS systems and voltage stabilizers
must be installed
Type of product
/ item
The home décor products are in demand and would be locally consumed. If needed,
they can be exported to rest of Central India as per consumer demand and choice
Technical know
how
To operate the modern stitching machines, the tailors who would stitch the curtains
and bed linens, must know how to operate those machines and hence a training is

32. 31
required to provide them. Therefore, while purchasing machines, agents from that
company must come and train the tailors
Storage facilities A warehouse facility is required to store extra inventory and furniture items, 3 kms
from Vijay Nagar is Dewas Naka where cheap warehouse facilities are available
Manpower /
labor
Store manager is predominantly responsible for managing store personnel under
the leadership of owner/CEO. One problem with this business is you do not get
labor for sales and store clerk positions easily, plus stores have to invest in training
before the employees can interact with customers
9. MANAGEMENT TEAM & ORGANIZATION
9.1 ORGANIZATIONAL STRUCTURE
FIGURE 19: ORGANIZATIONAL CHART
The management team will consist of the CEO/Owner or Proprietor who oversees all operations. The
Marketing & Purchase Manager, Legal Officer, Production Manager and Finance Manager will report
directly to the Proprietor. All other employees will report to their respective managers. Since our company
has the convenience of being a small business, the CEO can step in at any point to help the company
run smoothly.
9.2 PERSONNEL PLAN & JOB DESCRIPTIONS
There will be a total of 10 full time positions. The business will be open 6 days a week (Tuesday-Sunday).
Online orders can be accepted 24 hours per day. The actual operating hours of the business will be 11
a.m. – 9:00 p.m. The job descriptions are as follows:
1. PROPRIETOR
Proprietor/CEO
Finance
Manager
Accountant
Interior Design
Consulting
Legal Officer
Production
Manager
Engineer
Marketing &
Purchase
Manager
Sales Team
Website
Personnel Team
Store Manager
Front line
Supervisor
Customer
Service Agents
Back end
employees

33. 32
Duties Include:
a) Should determine and communicate the organization’s strategic direction
b) Perform the task of balancing resources
c) Build the culture
d) Serve as an interface between internal operations and external stakeholders
e) Task of deciding what to purchase and what to offer in the store
2. MARKETING & PURCHASE MANAGER
Duties Include:
a) Develop and manage marketing campaigns
b) Develop marketing program business plans, create timelines, set budgets, develop strategies and
tactics, and execute
c) Resolve issues and solve problems that may occur during a campaign
d) Report program milestones
e) Manage digital marketing efforts
f) Develop tools and best practices to manage the execution of marketing programs/projects
g) Monitoring the design, and maintenance of the website
h) Responsible for purchasing of items as decided by the owner/proprietor
3. WEBSITE MAINTENANCE PERSONNEL
Duties Include:
a) Processing online order requests
b) Handling customer inquiries, and special requests
c) Managing e-mail list
d) Maintaining blogs
e) Posting online press releases
f) Collecting customer data
4. SALES PERSON
Duties Include:
a) Confirm details of delivery (location specifics/time) with staff and customer
b) Contact customer to notify estimated time of delivery and terms of receipt
c) Load and secure product/seeds in vehicle

34. 33
d) Deliver and setup product
e) Thank customer, provide any additional customer service, leave business card
f) Maintain vehicle (gas, oil change, general repairs/upkeep)
5. FINANCE MANAGER
Duties Include:
a) To plan a sound capital structure
b) Choice of sources of funds
c) Investment of funds
d) Management of cash
e) Disposal of funds
f) Make proper plan and policy according to the budget
6. ACCOUNTANT
a) Compile and analyse account information
b) Document financial transactions
c) Summarize current financial status
d) Substantiate financial transactions
e) Maintain accounting controls
f) Reconcile financial discrepancies
g) Secure financial information by completing data base backups
7. PRODUCTION MANAGER
Duties Include:
a) Production control
b) Inventory management
c) Supply chain management
d) Quality control
e) Production equipment maintenance and repair
f) Measurement and monitoring of productivity
g) Industrial relations
h) Health and safety
i) Staff selection

35. 34
8. ENGINEER
Process and log in customer order
a) Schedule order on calendar
b) Handle customer inquiries/confirm customer requirements
c) Create customized furniture
d) Schedule deliver
9. LEGAL OFFICER
a) Ensure the operations comply with all the legalities
b) Monitor any internal audits that are being performed
c) Manage process compliance
d) Draft contracts
10. INTERIOR DESIGN CONSULTING
a) To advice on latest trends and designs
b) Consult the clients by visiting their homes/offices
c) Offer a prototype of real time design
However, later on we plan on hiring the following personnel once the store has been designed and
developed:
1 Manager A person responsible for end to end store operations, initially would be
me but as the store progresses, a person would be hired for the job
2-3 Front line
supervisors or
executives
People responsible for dealing with online channel orders, queries and
website maintenance
3-4 Salespersons Persons responsible for handling customers daily and make sure they
never leave the store unsatisfied, they should know the everything about
all the products in the market
2-3 Back-end
employees
Laborers and freight, stock, and material movers
2-3 Delivery persons Person responsible for deliveries and installation of products
2-3 Store Clerks or
Receptionists
Responsibility of making invoices, receiving and completing orders and all
clerk work like maintain inwards, outwards registers, etc.

36. 35
10. OVERALL SCHEDULE
The schedule of the activities is as following:
Tasks Time Required
Completion of the business plan 30 Days
Secure the business loans required 30 Days
Search and acquire the retail space 30 Days
Initial website layout 15 Days
Product selection for the store and website 30 Days
Marketing Schedule 15 Days
Search Engine work and testing of site 15 Days
Launch Sites 2 Days
Follow up and feedback 20 Days
Launch of Interior Views 10 Days
Total time required 207 Days
11. CRITICAL RISKS & CHALLENGES
11.1 CHALLENGES
Challenges associated with this home décor business can be depicted from porter’s 5 forces
explained below:

37. 36
Bargaining power of suppliers will be high and bargaining power of buyers will be low as it is a
relatively new industry and will be less willing to offer their products / accessories at a lesser
price.
No threat of substitutes as there are very less players in the market, but there can be a substitute
of conventional stores in this scenario
As it is a new industry, many new entrants should can enter with similar business models and
pose a challenge to our company.
11.2 RISK IDENTIFICATION
Online risks
 Fraud or deception in internet business
 Internet security
 High start-up costs of establishing a website
Establishment risks
 Shortage of materials
 Shortage of equipment
 Late deliveries from suppliers
Design Risks
 Change of design
 Improper design

38. 37
Financial Risks
 Lack of financial resources
 Delay in payment
 Lack of funding
Contractual Policies and Government
 Change in policies and regulations
 Compliance with law and regulations
 Bureaucracy
11.3 RISK ASSESSMENT
ONLINE RISKS
Risk Event Severity Occurrence Detection RPN
Fraud or deception in
internet business
9 4 7 252
High start-up costs in
establishing a website
7 8 9 504
Internet security 10 8 9 720
ESTABLISHMENT RISKS
Risk Event Severity Occurrence Detection RPN
Shortage of materials
9 4 7 252
Shortage of equipment 8 8 9 576
Late deliveries from
suppliers
10 8 9 720
FINANCIAL RISKS
Risk Event Severity Occurrence Detection RPN
Lack of financial resources 9 6 7 378
Delay in payment 7 8 9 504
Lack of funding 10 8 9 720

39. 38
DESIGN RISKS
Risk Event Severity Occurrence Detection RPN
Change of design 10 4 7 280
Improper design 10 2 6 120
CONTRACTUAL POLICIES AND GOVERNMENT
Risk Event Severity Occurrence Detection RPN
Change in policies and
regulations
8 1 3 24
Compliance with law and
regulations
9 2 3 54
Bureaucracy 9 1 2 18
RPN – Risk Priority Number
10 – Most likely, 1 – Least Likely
Higher the RPN, more priority should be given to that particular risk category.

40. 39
12. FINANCIAL PLAN
Financial statements for 5 years have been made on best possible estimates. This give a clear idea for
shareholders on the expected performance of the company. This can serve as benchmark to compare
the performance of the company in future.
12.1 PRO FORMA INCOME STATEMENT (5 years)
12.2 ASSUMPTIONS, INVENTORY, WAGES & EXPENSES
Major assumptions made are as below,
Sales growth 20%
Hike in wages 6%
Inflation 5%
Sales and inventory levels of the company are calculated based on different items purchased and sold
during the first year.
Items
Quantity
Purchased
Quantity
Sold Inventory Cost Sales Inventory
1 15 10 5 200000 2000000 1000000
2 25 20 5 70000 1400000 350000
3 35 30 5 60000 1800000 300000
4 45 40 5 100000 4000000 500000
Year 1 Year 2 Year 3 Year 4 Year 5
Sales INR 11,500,000.00 INR 13,800,000.00 INR 16,560,000.00 INR 19,872,000.00 INR 23,846,400.00
Less: COGS 50% INR 5,750,000.00 INR 6,900,000.00 INR 8,280,000.00 INR 9,936,000.00 INR 11,923,200.00
Gross Profit INR 5,750,000.00 INR 6,900,000.00 INR 8,280,000.00 INR 9,936,000.00 INR 11,923,200.00
Operating Expenses
Selling Expenses 5% INR 575,000.00 INR 690,000.00 INR 828,000.00 INR 993,600.00 INR 1,192,320.00
Technology Development 8% INR 920,000.00 INR 828,000.00 INR 662,400.00 INR 397,440.00 INR 476,928.00
Advertising Expenses 15% INR 1,725,000.00 INR 2,070,000.00 INR 2,484,000.00 INR 2,980,800.00 INR 3,576,960.00
Salaries, Wages 16% INR 1,872,000.00 INR 1,984,320.00 INR 2,103,379.20 INR 2,229,581.95 INR 2,363,356.87
Office Supplies 2% INR 230,000.00 INR 276,000.00 INR 331,200.00 INR 397,440.00 INR 476,928.00
Rent 12% INR 1,428,000.00 INR 1,499,400.00 INR 1,574,370.00 INR 1,653,088.50 INR 1,735,742.93
Utilities 0% INR 28,750.00 INR 34,500.00 INR 41,400.00 INR 49,680.00 INR 59,616.00
Insurance 1% INR 115,000.00 INR 138,000.00 INR 165,600.00 INR 198,720.00 INR 238,464.00
Initial expenses INR 1,420,000.00
Total Operating Expenses 60% INR 6,893,750.00 INR 7,520,220.00 INR 8,190,349.20 INR 8,900,350.45 INR 10,120,315.79
Interest expense 10% INR 300,000.00 INR 300,000.00 INR 300,000.00 INR 300,000.00 INR 300,000.00
Total expenses INR 7,193,750.00 INR 7,820,220.00 INR 8,490,349.20 INR 9,200,350.45 INR 10,420,315.79
Profit (loss) before taxes INR (1,443,750.00) INR (920,220.00) INR (210,349.20) INR 735,649.55 INR 1,502,884.21
Taxes 30% INR 220,694.86 INR 450,865.26
Net Profit (loss) INR (1,443,750.00) INR (920,220.00) INR (210,349.20) INR 514,954.68 INR 1,052,018.94

41. 40
5 60 60 0 30000 1800000 0
6 25 20 5 25000 500000 125000
revenue 11500000 2275000
Rent has been calculated based on average cost per square feet. The rent per square feet has been
found from internet.
Sqft. Rent Per Sqft Total Rent Per Month Rent Per Year
7000 17 119000 1428000
Wages has been calculated based on approximated salary required for various posts as mentioned below
Wages Number
Salary per
month
Manager 1 30000
Supervisors 2 20000
Employees 5 10000
other staff (Back-end, Delivery persons,
Laborers) 6 6000
Wages 1872000
Initial expenses have been calculated as show below. The values are inserted into the income
statement.
Expenses Cost
Graphic logo and name creation 20000
Permits and lease 50000
Contingency 100000
Sign board 50000
Building interiors 100000
Pre-opening expenses 200000
Initial website and app development cost,
including online marketing promotion (SEO, SMO,
PPC, Email Marketing) 500000
Advertisement
400000
Total start-up expenses 1420000
Start-up assets
Furniture, Furnishing 2275000
Initial capital 3695000

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12.3 BALANCE SHEET
Based on the projected income and balance sheet, it can be clearly see that the start-up can achieve
breakeven in the 4th
year with a sales growth of 20%.
Current Assets Year 1 Year 2 Year 3 Year 4 Year 5
Accounts receivable 20% 2,300,000.00INR 2,760,000.00INR 3,312,000.00INR 3,974,400.00INR 4,769,280.00INR
Inventory 20% 2,275,000.00INR 2,730,000.00INR 3,276,000.00INR 3,931,200.00INR 4,717,440.00INR
Advances 10% 1,150,000.00INR 1,380,000.00INR 1,656,000.00INR 1,987,200.00INR 2,384,640.00INR
total current assets 5,725,000.00INR 6,870,000.00INR 8,244,000.00INR 9,892,800.00INR 11,871,360.00INR
Fixed assets
Application 1,420,000.00INR 2,248,000.00INR 2,910,400.00INR 3,307,840.00INR 3,784,768.00INR
depriciation 10% 142,000.00INR 224,800.00INR 291,040.00INR 330,784.00INR 378,476.80INR
1,278,000.00INR 2,023,200.00INR 2,619,360.00INR 2,977,056.00INR 3,406,291.20INR
Total Assets 7,003,000.00INR 8,893,200.00INR 10,863,360.00INR 12,869,856.00INR 15,277,651.20INR
Liability and capital
current liabilities
Account payables 10% 1,150,000.00INR 1,380,000.00INR 1,656,000.00INR 1,987,200.00INR 2,384,640.00INR
Long term liabilities 3,000,000.00INR 3,000,000.00INR 3,000,000.00INR 3,000,000.00INR 3,000,000.00INR
Total liabilities 4,150,000.00INR 4,380,000.00INR 4,656,000.00INR 4,987,200.00INR 5,384,640.00INR
Equity 4,296,750.00INR 5,433,420.00INR 6,417,709.20INR 7,367,701.32INR 8,840,992.26INR
reserve and surplus (1,443,750.00)INR (920,220.00)INR (210,349.20)INR 514,954.68INR 1,052,018.94INR
Online E-commerce
Store
 A mobile optimized website: INR 30,000 to INR 80,000
 Payment gateway & integration with bank: Gateway 30K to 40K, rest as
per bank to bank regulations
 Marketing:
o SEO: min 10K per month
o SMO: 10K per month
o Social media ads: min 6k per month
o Content: 10K
o Email marketing: 10K-30K annually
Total INR 5 lakhs

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APPENDIX
A. INTERIOR VIEWS WEBSITE

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B. STORE DESIGNS
Below images show how our store in Indore would like:

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C. SWOT ANALYSIS OF INDUSTRY
FIGURE 20: SWOT ANALYSIS

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D. ABOUT INTERIOR DESIGNING