ENVC

ALLIANCE UNIVERISTY

Business Plan

Concept : Consultancy for SME’s

NAME : SME Business Synergies India (P) Ltd.

Group 6

Abhishek Lamsal

Muthu Kumar

Saurabh Arora

Karthik Reddy

Tuhin S
Executive Summary

Contribution of Small and Medium Scale Enterprises to the Nation’s economy is

commendable. Despite this the Small and Medium Enterprises sector does not get the
required support from the Government departments, corporate sector, and financial
institutions and banking sector, which is a matter of concern as this sector does not gain any
importance in the national and international markets. This led to the idea origination of a
business idea which will provide support to SMEs and help solve number of problems faced
by this sector like – lack of professionalism, low capital base, limited knowledge and non-
availability of suitable technology, Inadequate exposure to international environment, etc.

The idea is to empower the Small and Medium Enterprise sector. The SMEs need to be
educated and informed of the latest developments taking place globally, in terms of
technology, trends, new products or services, price fluctuations, etc. and assist them to
acquire skills necessary to keep pace with the global developments. It is necessary to support
the SMEs, educate and empower them to make optimum utilization of the resources, both
human and economic, to achieve success for it to take its rightful place as the growth engine
of the Indian economy.

Small and Medium Enterprises play a vital role for the growth of Indian economy by
contributing 45% of the industrial output, 40% of exports, 42 million in employment, create
one million jobs every year and produces more than 8000 quality products for the Indian and
international markets. As a result, SMEs are today exposed to greater opportunities for
expansion and diversification across the sectors.

As SBS assures to get these SME’s into more profit making propositions and escalating their
business horizons the acceptance would be awe-striking.

Mission statement
SME Business Synergies, India’s mission is to provide scientific, efficient and result oriented
services to earn the trust and respect of all client organizations. SBS, India’s goal is to be a
team member of the client organization forming long lasting, collaborative and mutually
rewarding relationships to each and every client.

The Business Proposition

The Business Consulting concept is new to the SME’s as most of these are family run
businesses. Through our means these SME’s can get into a mode of ‘Change’. The whole
concept revolves around revolutionizing the sector by educating, nurturing and growing these
companies through a strong associations. SBS would consult and develop the whole
organization in all dimensions, i.e;
 Manufacturing and Engineering Integration
 Project Consulting
 Financial Consulting
 HR consulting
 Brand Consulting
 Product/Process Improvement through quality initiatives
 Guidance to improving skills and knowledge of entrepreneurs
 Technology and systems development
 International Trade facilitation
 Operational optimization
 Time & Motion Study
 Methods Study
 Line Balancing
 Lean Implementation
 Six Sigma Implementation
 Facilities Planning and Design

Therefore SBS concentrates on each and every aspect of the operational areas of SME’s. It
aims at creating robustness in all business processes.

How do we do it ??

SBS India P Ltd. Will have unique tie-ups with government agencies like

 SIDBI
 SIDCO
 KSIIDC
 KASSIA
 IDFC

Also SBS will sign up MOU’s with freelance consultants in every vertical of consulting. All
these freelancers will not be on the payroll of SBS, however they will be paid on a project to
project basis.

Viability

Small and Medium Enterprises play a vital role for the growth of Indian economy by
contributing 45% of the industrial output, 40% of exports, 42 million in employment, create
one million jobs every year and produces more than 8000 products for the Indian and
international markets. As a result, SMEs are today exposed to greater opportunities for
expansion and diversification across the sectors.

As SBS assures to get these SME’s into more profit making propositions and escalating their
business horizons the acceptance would be awe-striking.

Name: SME Business Synergies India (P) Ltd.

The name, as it reads focuses on SME’s. By synergy, we mean that we believe in team work
or rather deriving the best result by collaborating with our clients. The power of combined
effort is immense and we strongly stand by it.
 Tagline: “Your Associates for continuous improvement.”
SBS’s core driving force is Continuous improvement or in other words we are strong
believers of kaizen. We reflect the same on our tag line. We collaborate with our clients and
get them into the Kaizen mode.

Logo:

The logo has three components.

1. The sun which denotes power and strength. Just like the sun lights up the whole solar 'system
and is the strongest source of energy, SME’s hold a similar status in the Indian economy.
SME’s would be our main focus and we consider them to be the light of India.
2. Our belief of collaborative growth is picturised by the tangles.
3. The third part of the logo showcases financial results and an escalation in profits. Every
business exists for profits and thus we focus on the same.

Point of Difference

 We at SME Business Synergies offer a unique combination of ease of use, flexibility

and integration capability - plus you can expect to achieve huge financial advantages
such as:
25% increase in productivity
50% reduction in work in process
80% increase in on-time deliveries
50% reduction in inventories
 One stop consulting house.
 Unique tie-ups with government agencies and free-lancers.

SWOT Analysis

Strengths

 Technical Expertise
 Scientific and methodological approach
 Reputed Partners
 End to End Solutions
 Direct relations to company’s costs/profits
 Association with government agencies

Weakness

 Diversified operations
 High amount of risk in operations
 Low monetary reserve to fall back upon in times of crisis
 No brand image

Opportunity

 Strong need for an end to end consultant

 Large number of SME’s
 Increase in the number of SME’s turning sick
 Change and growth is the bottom line to all SME’s today

Threats

 Competitors(emergence of bigger players)

 Attrition Rates are high in this industry
 Change Management
 High-defaulting clients
 Slow and bad recovery of consulting charges

Inception and Legal Formation

Key Points

 The company would be registered as a Private Limited Company under the

Companies Act.
 SBS would have the following registrations.
o PAN
o SME
o Service Tax
o International Society of Quality
o ISO
o Training
SEGMENTATION:

 GEOGRAPHIC: At first we will launch our services Bangalore & Chennai. These
two cities are a host to over a thousand SME’s each and hold a strong potential market
for our services.

 DEMOGRAPHIC: The demographic segmentation would be Indian SME’s primarily

in the later stages of their life cycle. We are not an incubation centre but we consult
companies to grow and improve in the later parts of the life cycle.

 PSYCHOGRAPHIC: We will target those companies which have an urge to grow and
develop their systems to create robustness. Change can be brought into companies
who believe in change, for the others, there is SBS!

 PRODUCT RELATED SEGMENT: Our target would be SME’s which have a strong
value proposition being delivered at the present state of their existence. It is very
important to generate revenue in the early stages as it would boost up our operations.
Cash rich SME’s would also be under our purview.

TARGETING:

We would be targeting companies which have the following characteristics.

 Cash Rich
 Innovative and distinguished products
 Ill managed
 Not realising capabilities of their current set-ups
 Companies that do not believe in systems and procedures
 Struggling to grow

POSITIONING:

Our services would provide unique stabilising and growth mechanisms to these SME’s
through aid of governmental assistance in terms of technology, finance, markets and other
subsidies.

Therefore we offer ‘true growth solutions’ to our clients.

Financial Analysis
As it a service based company and not involved in manufacturing the initial investments
would be low. However a corporate and a professional image would help gain good business.
Therefore the summary of start-up costs are as follows.

 Office Space(Deposit) – 200000 INR

 Office Furnishing and furniture – 200000 INR
 Computer (4nos) -120000 INR
 MSP – 15000 INR
 Legal Registrations – 130000 INR
 Advertising – 50000 INR
 Car (TATA Indica) - 400000 INR

Working capital Requirement(Monthly)

 Rent – 20000INR
 Salaries – 50000 INR
 Conveyance Charges – 20000 INR
 Office Stationary – 5000 INR
 Reserves – 20000 INR
 Electricity and Water – 3000 INR
 Misc – 5000 INR

Review and Control:

We will hire chartered accountant, to prepare the firm’s financial statements. The statements
will be prepared at the end of the financial year. The financial statements will be audited by a
reputed firm monthly, and annually.

We will evaluate the situation on a regular basis in terms of Revenue & sales, expenses,
customer & distribution channel feedback etc. on a weekly, monthly& yearly basis to
improve our operation activities.