Entrepreneurship Course - Business Plan - Tiffins 'R' Us

Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt
Entrepreneurship & Small Business
Management
Business Plan Presentation
Tiffins ‘R’ Us
Pulkit Bhatnagar
D03218464
b.pulkit@gmail.com
404.403.2980
This presentation is prepared towards partial fulfilment of the course: GM560 – Entrepreneurship & Small Business Management being instructed by Dr. Aaron Brody
for the July 2009 session at the Gwinnett campus of Keller Graduate School, DeVry University. The logo for Keller is reproduced here as a student and not an
endorsement by the School. The views expressed in this report are solely of the author and without any intention of infringement or harm. Images have been
sourced through Google and sources can be included if pointed out. Copyright © 2009 Pulkit Bhatnagar as author for this report.
Dr. Aaron Brody
GM 560
August 17, 2009

 An Indian Business in an American Setting.
 The ‘Tiffin’ Concept
 Snapshot of the Business Idea
 Significance of the Website
 Tiffins ‘R’ Us – Business Plan
 Identification of Gap
 Vision, Business Model, Long Term Direction
 Target Market
 Marketing Mix
 SWOT
 Financials
AgendaAgenda

An Indian Business in
an American Setting…

 In India, tiffin refers to a packed meal
prepared for working Indian men by their
wives to be eaten at work, or for school
children by their mothers.
 Professional Tiffin systems are quite popular
in India. In fact, one of the world’s experts
in Supply Chain and Logistics is the “Mumbai
dabbawala system).
 5000 employees deliver over 200,000 tiffins
every day using green/local transportation.
 Error rate: 1 in 16 mil. (6 Sigma certified)
 Service at < $ 10 per month.
 Featured by CNN, BBC, Forbes, Economist,
NY Times, and many business schools.
 Mumbai Dabbawala video
 In India, tiffin refers to a packed meal
prepared for working Indian men by their
wives to be eaten at work, or for school
children by their mothers.
 Professional Tiffin systems are quite popular
in India. In fact, one of the world’s experts
in Supply Chain and Logistics is the “Mumbai
dabbawala system”.
 5000 employees deliver over 200,000 tiffins
every day using green/local transportation.
 Error rate: 1 in a mil. (6 Sigma certified)
 Service at < $ 10 per month.
 Featured by CNN, BBC, Forbes, Economist,
NY Times, and many business schools.
 Mumbai Dabbawala video
The ‘Tiffin’ ConceptThe ‘Tiffin’ Concept

A Simplified SnapshotA Simplified Snapshot
Business Idea
User
Browses
Website
& Places
Order
Selected
Vendor
Prepares
Order
Hands
Over to
Delivery
Home
Delivery
User has
Meal and
Rates
the
Vendor
Input Mechanism:
Website –
Orders; Payments; Feedback
Delivery Mechanism:
Vans / Cars –
Food; Promotional Material
Food Delivery to pay for ALL Expenses.
Additional Revenue Streams add to
bottomline directly.
(Alternative Advertising/Promotion
Media with direct access to consumer)

Selected Restaurant
Pricing
Details
Checkout/
Payment
Options
Other things of Interest
Rate the
Supplier
Advertising
Significance of the WebsiteSignificance of the Website
What should
I order?
Let me log-on to Tiffins R Us
where I can order according
to my preference.
Tiffins R Us Returning / New Customers
Food / Ongoing Schemes
Featured/
Sponsored
RestaurantsRest’nt 1
Rest’nt 2
Rest’nt 3
Vendor 4
Vendor 5 Provide
Feedback /
Rate a
Supplier
Advertising
Advertising
Tiffins R Us Returning / New Customers
Food / Ongoing Schemes
Featured/
Sponsored
RestaurantsRest’nt 1
Rest’nt 2
Rest’nt 3
Vendor 4
Vendor 5 Provide
Feedback /
Rate a
Supplier
Advertising
Advertising
Customer-end

Tiffins ‘R’ Us –
The Actual Business Plan

Identification of GapIdentification of Gap
 South Asians:
Around 200,000 Indians, Pakistanis, Bangladeshis,
Nepalese, and Sri Lankans in Atlanta.
Students and Working professionals on 1 – 3 projects.
Hotspots: Alpharetta, Decatur and Lilburn / Gwinnett, Dekalb, Fulton
 Food / Meals:
Spend $ 7 - $ 15 per meal; eat-outs 8-10 times a week.
Remaining meals are cooked at home or skipped.
Don’t mind paying a small premium (~ $ 9-10 overall) if food is delivered.
 Restaurants:
Family-owned units; Generally operate with decent profits.
Not interested in starting own deliveries but interested in partnering.

Vision, Business ModelVision, Business Model
 Vision:
To allow access to food according to your taste buds.
 Business Model:
Select a target region with high density of South Asians; partner with local Indian
restaurants/chefs & offer home delivery services; allow users to create their
profiles on a Web 2.0 interface and place their orders (longer duration get better
discounts); have 3-4 vans for delivery per region.
 Long Term Direction:
To establish a chain of delivery mechanisms in countries other than South Asia
(like USA, UK, Canada, Australia), which have a large population of South Asian
students and professionals. To be the next ‘localized’ Amazon.com specifically
for food delivery services.

Target MarketTarget Market
Details:
 ~ 1500 South Asians.
 20 sq. miles Area.
 Four Indian restaurants.
 Zero with Home Delivery.
 Nearest to Emory: 3 mi
 Nearest to GT: 3.5 mi
 Strong Local Competition
 Good MARTA connectivity
 Parking issue in Mid-town
 18 Indian restaurants in
50 sq. miles coverage.

Marketing MixMarketing Mix
 Place / Distribution:
 20 sq. miles between GT, Midtown, Emory, North Druid
 Expansion in year 2 to Alpharetta.
 Distribution: Customer to order, pre-pay via Website.
 Distribution: Supplier free to source own RM.
 Distribution: Day-routes to be decided each morning.
 Delivery of order by venture. Driver will be venture
employee and vehicle will be venture asset.
 Prepaid transactions – hence no money transfer issues
 Promotion:
 No expensive campaigns.
 Flyers distribution; College Bulletin Boards placement.
 Marketing Collateral like T-Shirts and Bumper stickers.
 M-1 soft launch with 8-10 known contacts: Free Meals in
return for Buzz Marketing.
 M0 launch scheme: Long Term Committers discount.
 Referrals scheme – discounts for people introducing their
friends.
 Product:
 Delivery Mechanism from Kitchen of Supplier to Doorstep
of Customer.
 Interactive Web 2.0 website.
 Advertising opportunities on the Website and through in-
tiffin promotional catalogs.
 Price:
 Cost + Flat Margin component model; Pre-paid system
 Amount billed per order + 40% of billed amount
 40% based on estimates to cover delivery costs and
required margins
 Discounts to be offered for Higher-priced orders or
longer-duration orders
 Avg Est: Cost: $ 7 per meal. Price: $ 9 per meal.
 Advertising Pricing still to be worked out but expected to
grow from $400 in Month 1 to $ 1500 by Month 6.

 Threats:
 Low entry barriers.
 Restaurants can begin own delivery service.
 People can start to cook for themselves.
 Pre-packaged and Existing Options Available
 Unforeseen legal & regulatory issues.
 Unforeseen financial expenses; since external funding
not sought.
 Atlanta may not remain a preferred study/work location.
 Weaknesses:
 Lack of experience (regulatory, marketing, logistics,
design).
 Assumption that social relationships will translate into
business relationships.
SWOTSWOT
 Opportunities:
 Un-served South Asian population (incl. cooking-averse
target segment).
 Inexpensive media (similar target mkt).
 Opportunity to start small, make mistakes, learn and
correct to have a better business model while scaling up.
 Additional revenue generating opportunities (like the
website, mobile delivery vans, in-tiffin promotional
catalogs).
 Bootstrap financing and viral marketing opportunities.
 Strengths:
 Low start-up costs; financial independence.
 Strong relationships with incumbent restaurant owners.
 Easy access to student population of G. Tech & Emory
(Essential to establish a regular following/customer
base).
 Openness to learn from others advice and experiences.
 Passion to have own venture and succeed in it.
 Ability to be practical to limit losses.

Pre-Launch FinancialsPre-Launch Financials
all figures in USD, unless indicated
Avbl Price Maximum Expected Optimistic Remarks
Delivery Mechanism
* Car 14,695 16,000 12,000 9,000 Ford Focus 2008
* Scooter 2,000 2,500 1,800 1,200 JCL-MP250A
Financed through Bank of America SBA Financing Options at 10% (http://www.bankofamerica.com/small_business/business_financing/index.cfm?template=sba_financing)
Website
Domain Name Registration 1,000 1,000 400 100 Free Resources available
Website Construction 6,000 6,000 4,500 1,000 For Security, partner with Paypal & Google Finance
Done through friends in India; local Student friends; Software experts
Necessary Expenses
Legal Fees 5,000 5,000 5,000 3,000 Terms of Use for website, other legalities
* Insurance (GEICO) 500 500 400 300 Vehicles, Website, Life, Business, Liability
Marketing Expenses
Collateral Development 1,000 1,000 700 400 Flyers/Explanatory Docs for Vendors, Investors
Travel and Meeting 1,000 1,500 1,200 700 Gas, MARTA ($50 p.m. card), Meals
Laptop / Mobile 900 1,000 850 650 Laptop: 550; Mobile: 100
Financed through Bank of America SBA Financing Options at 10% (http://www.bankofamerica.com/small_business/business_financing/index.cfm?template=sba_financing)
TOTAL 32,095 34,500 26,850 16,350
Initial Investment Required $ 16,000 - $ 35,000
Depending on Finance Availability, initial investment can be channeled as per priority/requirement
To recover $ 35,000 at $ 2 per meal margin and 350 days per work year, indicates 50 deliveries per day.
That is not viable for one person to handle; hence at least one more employee is required.
Therefore * - additional Car will be purchased on achieving required volumes.

Year 1: Month-wise P&LYear 1: Month-wise P&L

Projected Income StatementProjected Income Statement
2010:
Atlanta, 1 region
2011:
Atlanta, 2 regions
2012:
Atlanta, 2 regions
Seattle, 1 region
OR
San Fran, 1 region
OR
Houston, 1 region
all financials in USD
2009 2010 2011 2012
Revenues
Operations - 413,145 826,290 1,239,435
Advertising - 15,800 23,700 31,600
Revenue generated - 428,945 849,990 1,271,035
Expenses
Operations - 321,335 610,537 899,738
Expenses incurred - 321,335 610,537 899,738
Gross Profit - 107,610 239,454 371,297
Insurance Premiums 400 8,800 18,480 30,800
Marketing Expenses 2,000 5,050 9,595 17,675
Salaries & Wages 2,480 46,720 116,800 163,520
Communication Expenses 200 2,400 4,800 8,400
Maintenance Expenses - 1,200 1,800 4,200
Unaccounted / Misc. Exps. 5,000 6,200 9,300 18,600
Depreciation Expenses 400 8,400 16,800 25,200
Total of 'Other Expenses' 10,480 78,770 177,575 268,395
Operating Profit 10,480- 28,840 61,879 102,902
Interest Expenses 250 3,000 6,000 12,000
Profit Before Tax 10,730- 25,840 55,879 90,902
Tax Expenses - 9,280 16,764 27,271
Profit After Tax 10,730- 16,560 39,115 63,631

Projected Balance SheetProjected Balance Sheet
all financials in USD
2009 2010 2011 2012
Current Assets
Cash 4,920 26,197 80,379 168,333
Accounts Receivable - 4,289 8,500 12,710
Prepaid Expenses - 2,145 4,250 6,355
Total Current Assets 4,920 32,631 93,129 187,399
Fixed Assets
Cars and Scooters 14,000 27,700 48,200 59,400
less Accumulated Depreciation 300 7,500 16,800 25,200
Laptop / Mobile 1,000 900 - -
less Accumulated Depreciation 100 900 - -
Total Fixed Assets 14,600 20,200 31,400 34,200
Total Assets 19,520 52,831 124,529 221,599
Current Liabilities
Accounts Payable - - 4,250 6,355
Accrued Wages / Salaries Payable - - - -
Current Portion of Long Term Loan - 5,000 7,000 11,000
Accrued Interest Payable 250 3,000 6,000 12,000
Total Current Liabilities 250 8,000 17,250 29,355
Long Term Liabilities
Bank loan from BofA / SBA - Cars/Scooter 14,000 25,667 51,667 75,667
Bank loan from BofA / SBA - Other Exps 16,000 13,333 10,667 8,000
Total Long Term Liabilities 30,000 39,000 62,333 83,667
Total Liabilities 30,250 47,000 79,583 113,022
Owner's Equity - 10,730- 5,830 44,945
Add: Retained Earnings 10,730- 16,560 39,115 63,631
Total Owner's Equity 10,730- 5,830 44,945 108,577
Total Liabilities and Owner's Equity 19,520 52,830 124,529 221,599
LOAN REPAYMENT SCHEDULE
Loan TakenAmount 2010 2011 2012 2013
2009 14,000 2,333 2,333 2,333 2,333
2010 14,000 2,000 2,000 2,000
2011 28,000 4,000 4,000
2012 28,000 4,000
2009 16,000 2,667 2,667 2,667 2,667
2014 2015 2016 2017 2018 2019
2,333 2,333
2,000 2,000 2,000 2,000
4,000 4,000 4,000 4,000 4,000
4,000 4,000 4,000 4,000 4,000 4,000
2,667 2,667

Sources:
Indian Trade/Business Associations in Atlanta
Restaurant Owners
Google
Amazon
Wikipedia
Youtube
www.Mydabbawala.org
Thank You

Entrepreneurship Course - Business Plan - Tiffins 'R' Us

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