“EXHIBIT Inc.

”
FUN PARLOUR

BUSINESS PLAN
27th Dec.2008

Brainstorming by:
Manish Kumar Sahoo
manishkumarsahoo@ymail.com
(Promoter)
For EXHIBIT inc.
 SERVICE ACTIVITIES RELATING
TO ENTERTAINMENT,HOBBIES
&PLEASURE
• We will provide a variety of family oriented
games, and arcade style activities in NCR.
• Best features of this alley are Video games,
Bowling Lanes, Pool Tables, Indoor Basket Ball
etc.
• “Xhibit” is the funniest family destination in the
city, which will provide facilities like Play Station,
Video Games, racing machines etc.
 OBJECTIVE
• Offers financial institutions & other interested
parties an opportunity to review our vision and
strategic focus.

• Provides a step-by-step plan for the business

start-up.

• Introduces company, products and services,

market focus, action plans and forecasts,
management team, and financial plan.
 TABLE OF CONTENT
• Executive Summary
• Mission
• Key to success
• Company Profile
• Product & services
• Competitive edge
• Market analysis
• Competition
• Strategy & Implementation
• Financial plan
• Projected profit
• Projected cash flows
• Regulatory authorities & certifications
 EXECUTIVE SUMMARY

• Provide recreational & entertainment

services.
• Less explored market.
• Futuristic capital gains
• Wide range of services
• Cost effectiveness & pocket friendly
 MISSION
Company dedicated to offer entertainment &
recreational services .

Utilizing latest games, play stations & other

recreational methods.

Profit to generate a significant return for our

investors.

We will also maintain a friendly, fair, and

creative environment.
 FORM OF OWNERSHIP
‘XHIBIT’ Inc. IS LIMITED LIABILITY
CORPORATION.

Promoter is Vikrant negi.

Close Association with best in industry.

 KEY TO SUCCESS

• Secure Supply- Contract for supply of machines,

games softwares , tie-up with different schools,
institutes & other hobbies stations .

• Marketing - Contractual arrangements for the

promotion & publicity.

• Management - Strong senior management with

extensive, broad-based, industry-specific
experience.
 COMPANY PROFILE
• Company already dealing in services
related to ENTERTAINMENT.

• “FUN-ZONE” has assembled a strong

management team.

• High quality services at reasonable price.

 PRODUCTS & SERVICES
• Offers various games (INDOOR)
including video games, playstations .
• Offers hobbies-club membership to
clients.
• Offers recreational & educative activities
like art gallery, personality development
sessions.
 MARKETING PLAN
Tie ups with a large number of schools,
institutions & other hobby & art centres.

Market research is conducted by ORG

mark.

A contract with a famous T.V. channel

network organization as Media partner.
 MARKETING PLAN
• Advertisement & promotional assignment
given to mc’erricson India ltd.
• Negotiations going on with Hritik Rohsan
to be signed as Brand ambassador.
• ZINGLE & TAGLINE

“PURE FUN –NOTHING ELSE”

 MARKETING PLAN
• ADVERTISING MEDIA :
Ads on local cable T.V. channel
(heavily)
Ads on national T.V. channel (seasonal
basis)
POSTERS & OTHER PRINT MEDIA
STUFF ON STATIONARY
SHOPS,SCHOOLS,PLAYGROUNDS,
CYBER CAFES,COMICS etc.
POTENTIAL CUSTOMERS
MAJOR TARGETS ARE CHILDREN OF
AGE BETWEEN 6-18 YEARS.

CHILDREN FROM URBAN SECTOR

PREFFERABLY 6 METROS.
 LOCATION
Location nearby to densely situated
residential areas.

Proper parking space.

Well connected to city downtown as well

as suberbs.
 POTENTIAL RISK

• There may not be a readily available market for

the Company's services.
• It may not be able to generate enough market
and curiosity.
• The Company may not be able to encash all of
its services.
• Delay in obtaining approvals from concerned
authorities.
 COMPETITION
Competition primarily from the privately owned
small scale unorganized entities in the local areas.

Various organised & nationaly functional entities in

urbanareas.
 FINANCIAL
• EXHIBIT is seeking a fund of 25 crores in
first round financing .The funding will
enable the company to build its
awareness & set up ,to implement
aggressive sales & marketing plan.
 FINANCIAL PLAN - FUNDING
VIKRANT NEGI Rs 20,00,000
CHHAVI K. SHARMA Rs 20,00,000
JAGDISH C. NEGI Rs 20,00,000
LATTA NEGI Rs 20,00,000

TOTAL RS.80,00,000
Each of the four co-owners will invest rupees 20 lakhs.
The remainder of the required financing will come from a
ten year Small Business Administration (Bank) loan in the
amount of rupees 1 crore and a short-term loan in the
amount of rupees 22 lakhs. Total loss at start-up is 2
lakhs.
 FINANCIAL PLAN
Start-up Summary

Start-up Expenses

Legal Rs 1,20,000

Other Rs 80,000

Total Start-up Expenses Rs 2,00,000

Start-up Assets Needed

Cash Balance on Starting Date Rs 40,00,000

Start-up Inventory Rs 20,00,000
Other Current Assets Rs 20,00,000
Total Current Assets Rs 80,00,000

Long-term Assets Rs 1,40,00,000

Total Assets Rs 2,20,00,000
Total Requirements Rs 2,22,00,000
 CURRENT LIABILITIES

Accounts Payable Rs 0
Current Borrowing Rs 22,00,000
Other Current Liabilities Rs 0
Current Liabilities Rs 22,00,000
Long-term Liabilities Rs 1,00,00,000
Total Liabilities Rs 1,22,00,000
Loss at Start-up (Rs 2,00,000)
Total Capital Rs 98,00,000
Total Capital and Rs 2,20,00,000
Liabilities
 BREAK EVEN ANALYSIS

Monthly Units Break-even 6,969

Monthly Revenue Break-even Rs 3,89,68,440

Assumptions

Average Per-Unit Revenue Rs 4156.8

Average Per-Unit Variable Cost Rs 1712.4

Estimated Monthly Fixed Cost Rs 1,70,34,840

 PRO FORMA FOR PROFIT & LOSS A/C
2008 2009 2010
Sales Rs 37,80,00,000 Rs 45,07,65,000 Rs 53,26,61,600
Direct Costs of Goods Rs 15,72,00,000 Rs 18,56,92,520 Rs 21,93,49,280
Other Rs 0 Rs 0 Rs 0
------------ ------------ ------------
Cost of Goods Sold Rs 15,72,00,000 Rs 18,56,92,520 Rs 21,93,49,280
Gross Margin Rs 22,44,00,000 Rs 26,50,72,520 Rs 31,31,16,880
Gross Margin % 58.81% 58.81% 58.81%
Expenses:
Payroll Rs 17,26,00,000 Rs 18,12,30,680 Rs 19,02,92,880
Sales and Marketing and Rs 10,80,000 Rs 14,33,200 Rs 28,84,880
Other Expenses
Depreciation Rs 48,00,000 Rs 55,20,000 Rs 63,48,000
Utilities Rs 48,000 Rs 50,400 Rs 52,920
Payroll Taxes Rs 2,58,90,000 Rs 2,71,84,600 Rs 2,85,43,920
Other Rs 0 Rs 0 Rs 0
------------ ------------ ------------
Total Operating Expenses Rs 20,44,18,000 Rs 21,54,18,880 Rs 22,81,22,600
Profit Before Interest and Rs 1,99,82,000 Rs 4,96,53,640 Rs 8,49,94,320
Taxes
Interest Expense Rs 10,69,920 Rs 8,98,680 Rs 8,08,680
Taxes Incurred Rs 48,06,280 Rs 1,21,88,760 Rs 2,13,97,200
Net Profit Rs 1,41,05,800 Rs 3,65,66,240 Rs 6,27,88,440
Net Profit/Sales 3.70% 8.11% 11.79%
 PROJECTED CASH FLOWS
Pro Forma Cash Flow
2008 2009 2010

Cash Received

Cash from Operations

Cash Sales Rs 38,16,00,000 Rs 45,07,65,000 Rs 53,24,66,160

Cash from Receivables Rs 0 Rs 0 Rs 0

Subtotal Cash from Rs 38,16,00,000 Rs 45,07,65,000 Rs 53,24,66,160

Operations

Additional Cash Received

Sales Tax, VAT Rs 0 Rs 0 Rs 0

New Current Borrowing Rs 0 Rs 0 Rs 0

New Other Liabilities Rs 0 Rs 0 Rs 0

(interest-free)

New Long-term Liabilities Rs 0 Rs 0 Rs 0

Sales of Other Current Rs 0 Rs 0 Rs 0

Assets
Sales of Long-term Assets Rs 0 Rs 0 Rs 0
 Market Analysis

• The company estimates that about 80% of

revenues will come from the 4 METROS.

• 20% from the towns & SECTOR

METROS.and bangaluru, hyderabad,
pune & chandigarh.

• The table below further estimates the

total market potential of type of services
rendered by “Xhibit inc.”
 MARKET ANALYSIS

PROJECTED GROWTH & PROFIT

Potential
Customers
Growth 2008 2009 2010 2011 2012
METROS 15% 5,00,000 5,75,000 6,61,25O 7,60,440 8,74,510

URBAN 10% 2,00,000 2,20,000 2,42,000 2,62,200 2,92,820

OTHER 0% 0 0 0 0 0

13.64% 7,00,000 7,95,000 9,03,250 1,026,640 1,167,330

SSAMPLE OF APPLICATION FORMAT
A
M
THANK YOU!!!