For Venture capitalists, Business Houses, retailers,
Retail related professionals or any other who is interested.
This retail business idea I am publishing here!! Just because I feel if even 50% of it could be executed, that will lead to a revolution.
Revolution the way we live…
I don’t have this much money to start it but I feel that any good thing if is worth should not die without getting noticed. So if any of you feel that this idea suits. You want to go ahead on this plan can go. I don’t have any patent on it. You if convinced and find it worth can get in touch with me at bajwaharman@yahoo.com
Note : Any facts and figures listed in article are only for reference purpose and are not conclusive or may not hold true. .still due care is taken to get the facts right.
All the calculations are based on the Indian per capita income and are in Indian currency (Rupee). You can convert it to your local currency and make assumptions as per your spending habits.
I was thinking of a business which was never done before. After a long study, thinking and experimenting of all what was in my limits I came to this all.
My idea behind it consists of following points :
It should be unique and never done before.
It should be built on the main motive of ultimate customer satisfaction.
It should provide unlimited opportunity for growth in future.
It should bring a revolution.
It should be controlled by promoters from the grass root to the tip level so as to keep the bottom line (profit % age) always on the positive side.
So what is it all about, is the main question ?
Let me explain. In a developing country like India where maximum of population is middle class and a huge number (34% as per latest figures) live under poverty line (earn less than rs.50 a day). This fact gave me the motivation and I decided to capitalize on this. This business target this middle class and my ground work force will be those who today live under poverty line. Every body in this world wants the basic necessities to be fulfilled, that also at the minimum cost and in the best possible way. To add on this they want to save all the time in this world and lastly but not leastly want some entertainment, recreation and fun in their life. This is all what I am doing.
A family that earns rs.15000/ + a month or more has to spend minimum of 65% on the basic house hold, ration , vegetables, fruits , cooked food (restaurant), milk, confectionary, newspaper/ magazines children school monthly fees, tuition fees bills (electricity, water mobile, internet, telephone etc), cooking gas, shopping. To add these families are fast moving and getting attracted to Health Club membership and some other things. So if I combine all these things and provide the following to them, we can make a huge profit driven by the amount of volume of sales which we will be handling..
In morning our one delivery boy will carry milk, news paper/ magazine, vegetables, fruits and any other item ordered (discussed later) by the family. So here in this point we make a conventional and over ground profit by selling all these items. Additional profit will come from the fact that these 5 to 6 products are delivered by 5 to 6 different delivery boys will here is done by same boy. So a reduction of delivery charges by 80% !!!.
We will have a call centre where families can call and order any thing under the sun. Our boy will deliver it and the items we don’t have will be picked from outside and a zero or minimal delivery chare will be charged. We will collect the bills and fees and will deliver it. This might not give much financial benefit but will keep the customers hooked to us.
Under non regular service category we will provide the following services :
CA advice (large customer base for CA so he will give discount and commission to us).
Consultancy (discussed later, to be nominally charged).
Cultural and yearly entertainment (discussed later, ticket based entry).
Train, plane, bus, movie tickets(agent commission).
Outside products. (Discussed later).
Investments.
Now as it is clear that if families spend around Rs. 10,000 this will come to us and thus profit.
Services to be provided to woo customers (conditions apply):
Free medical check up once a year.
CA consultancy at nominal charges.
24 hrs helpline anything, anybody, anywhere, anytime.
One in every 10 families free holiday once a year in India.
One in every 100 families a free holiday once a year abroad.
Passport assistance.
We will pay child’s school fees in time, they can pay it to us later but in given time.
Electricity, Tele, Water, Cable, internet bill collection from home hassle free.
Free small- small gifts(vegetables, fruits, confectionary etc) from time to time as per our convenience.
Assured gift to every family after every six months, (this is a catch point as it will be covered by other points itself).
Service if not up to satisfaction will be discounted.
To provide Taxi, bus, train, airline, ticket as per availability.
School drop and pick up to children at nominal or existing charges.
New product details will be updated among customers.
Keep on increasing the customer knowledge base on his/ her choice of topic
Investment and product buying consultancy (Furniture, TV, Car etc).
Education and child’s future consultancy.
Bank service in association with banks.
Health Club facility.
Cultural and Entertainment programs to be organized frequently where our customers will get extra privilege.
Courier and cargo services.
Special features and flexible payment scheme for families dependent on farming (families will be considered on basis on their pre risk analysis).
Farmers to be advised on crop production.
Don’t worry of the profit , as 80% of the services in all the lists are self sustainable and profitable. Around 10% are no profit no loss services and only 10% are dependent services. Thus keeping the bottom line always positive.
Extra revenues could be collected if following points are followed :
(Remember that we would be having a large customer base. If still not satisfied then discussed later)
Grow own or pick directly from farms vegetables and fruits as much as possible so as to cut down the middlemen costs.
Own your high quality restaurant.
Build a diary make your own dairy products.
Have your own bakery and sweet making facility.
Ticket franchisee (Travel Agent kind of)
Wheat and Rice products of your own.
Collaborate where you can’t invest and slowly absorb it in yourself.
At later stage open your own educational institutes and petrol pumps. (Once again note that you have a large and trusted customer base.).
Store maximum in bulk taking care of the quality. Buy when market is cheap for this keep an eye on market and keep an eye on its future trends..
Go for an experts, technology and minimum labour costs right from the beginning.
Don’t forget your employees and workers as the way you treat them that is the way they are going to treat your customers. All the hard work is to be reflected only at the customer interaction point and it is your worker who is going to do that and not you. This will help to increase the customer base.
Always have an aggressive growth target and see to it that you are achieving it.
Benefits to customers by joining us (or by availing these services)
They are not paying anything extra then what they are paying today.
They save lot of their precious time.
They are going to get quality and quantity assurance.
They will get gifts at no extra cost.
They will enjoy holiday for free just by spending on their basics which is no way possible as of now.
They will get all the services hassle free and in quick time.
their wards school fees goes in time without they getting bothered which was never before and payment mode is flexible.
They have access to all the knowledge bank which was never before and can know anything under the sun.
To sum up they are enjoying the easiest. Cheapest and best possible life than their fellow beings on this earth.
Remember that no plan is perfect until and unless executed. When we go on floor we have to make certain changes for which we should be ready.
Now let me post some of the challenges which we are going to face :
Getting the initial investment.
Convincing the customers.
Hiring cheap and hard working labour.
Collaborating with all kind of public (electricity boards etc ), private (furniture etc), and other (farmers etc) companies and people.
As lot of others will see a decline in their business with our growth. EX : if we start with 1000 families then in 1 shot current newspaper vendor is going to see the decline of 1000 + newspapers in 1 single day. So their might be agitation from these people either behind the scene or direct.
Failing of some plans will irritate us and can affect psychologically.
Setting all the departments and making this complex task easy to work and understand.
Before starting in any city. There are some facts which we have to survey :
No. of people in family, their name, age, occupation, salary, expenditure.
How much and how they spend on the basic and not so prior amenities.
What do they buy once in a while (necessity/ luxury) and how they pay for it.
How often they do their medical check up. Go for a movie, Health club etc.
Where do they invest ? Are they clear about their investments?
Do they file the income tax returns. With the help of CA or their own. Do they go for insurance.
Do the present format make them feel that life is complex, irritating and time consuming
If they get point 2 all from one place at better rate, fast home delivery and of better quality. Will they opt for it?
If we add all the above mentioned and some other services, will they opt for it.
Will they like all the add ons gifts, tour etc which they are going to get from us at no extra cost?
We are going to start in your city in this much time. How much sure are you that you are going to join us? Should we contact you while starting.
If our service is satisfactory, for how long will you be with us?
Would you like to have our extra paid services.
What do you think more you want from us ? how much you are convinced with us
Would you tell about it to your friends neighbors and relatives
Will it make your life simple.
Cash flow example :
Take an city of ludhiana in Punjab (India). Boosts a population of 2,000,000 + .
Out of it top 20 % is our customer base even if we go by conservative estimates.
So customer base = 200,000. If every family has got at a average of 5 members. We have 40,000 families to target atleast. Now if we can get 10% of these i.e 4,000 families we make a yearly turnover of 4000 * 10000 * 12 = 480,000,000. Net Margin of 8-9 % gives a profit of Rs..48,000,000 .
Household expenditure Direct sale :
Monthly : (Minimum conservative estimates)
Fruits and vegetables : 1500.
Ration : 1500.
Clothes (Average) : 4000.
Restaurant others . : 1500.
Nwespaper magazine etc : 500.
Indirect sale other than this depend on the service we provide. So now you can make your fine tuned calculations.
Me : bajwaharman@yahoo.com
So there is a challenge, but remember bigger the challenge higher the growth bigger the reward
Here the most important thing to understand is today due to immense competition in all the fields profit % age is shrinking but here we are opening a new vast market where we can invest according to our potential or just collaborate with others. And as it is going to be only of its kind we are not going to face any kind of competition from market until and unless somebody apes us.
So let us move forward and leave a mark behind.
You would be having lots of doubts, you can mail me all those. I would try to clear them as much as possible. I am no retail guru, no body special. This is just an idea of a common man with his thinking of making life better than today. As whatever you go out and sell ultimately if people feel that it will make their life much better, entertaining, hassle free and affordable than today, they will buy it. So this is it all about.
I do have some other plans too, for which you can contact me.
Regards,
Harman Bajwa
bajwaharman@yahoo.com
