Please poke holes in this plan. Spelling mistakes to serious strategy matters. Open for all the criticism. I look forward to your feedback in the comments section. This is the first draft of our submission to TiE - Mumbai Chapter. (Sections are suggested by TiE Mumbai - Comments in blue are guidelines by TiE).
Executive Summary
Brief business description
No more than one paragraph to describe your business and the business opportunity. If it takes more than a paragraph to describe your business, perhaps you need to revisit the drawing board. The simpler the message, the quicker you will draw investor attention.
Fragrochem is a family run small business since 1983. We are in the business of manufacturing fragrances. Our target market is the non-perishable and fragranced Fast Moving Consumer Goods market. Soaps, Detergents, Cleaning agents, Deodorants, and Incense manufacturing companies are some of our potential customers. Presently, our processes and work are not compliant with the guidelines provided by the International Fragrance Association (IFRA). We will comply with these guidelines by December 2014. Our focus on fragrance safety governed by the latest guidelines provided by IFRA will help both the end consumers as well as the environment.
Our focus will be:
- To create excellent fragrances by employing a team of chemists and perfumers blending their high energy and knowledge with the experience of our lone perfumer - the Founder - Mr. Bhupen Thakkar.
- To take the process at the scientific level and establish link between the smell and the molecular structure.
- Create and execute a sales and marketing strategy employing social media marketing coupled with traditional techniques of marketing by targeted customer relationship building.
Team
This section should answer the question ‘Why is this team/entrepreneur best suited to implement this business opportunity’. Keep it simple. Briefly Include educational qualifications and work experience.
Our team consists of the following members:
Bhupen Thakkar - Founder member (Proprietor) and the chief Perfumer of Fragrochem. Mr. Bhupen Thakkar has over forty five years of experience in the perfumes business.
Chetan Thakkar - Founder and CEO at Prowess Infotech - Mr. Chetan Thakkar has a B.E. in Computer engineering. He brings in more than six years of Project Management experience.
Prakash Thakkar - He is a Chartered Accountant and has vast experience in tax and financial accounting domain and is a a partner at Navin D. Thakkar and Company - the Accounts and Finance Advisors for Prowess Infotech as well as Fragrochem.
Richard Price - Mentor - Mr. Richard Price is a BA - Political Science, MPA - Public Policy and Program Management and MBA - Strategic Finance and Marketing. He is a Founder/ Managing Director at Enterprise Success Services and a Director at Performance Healthcare Systems and eProjectSource.
What is the issue / pain point that your product / solution will address
This section will reflect the clarity of your thinking about your business opportunity. Be precise and succinct.
Our goal is to master the art of fragrances that appeal to end customers. We will work very closely with our partners to make their products the best sellers using our creativity.
What is the size of the market opportunity
Be clear about who and where is going to buy your product/service and how much they would pay for it.
Indian Fragrances market is estimated to be around US$ 100 million. Top five international houses account for 75% of the market share. (Sales forecast not complete). We are looking for Senior Sales and Marketing professionals in the fragrances sector to join us.
(As per the research paper published on 14 October 2005 by Aparna Vedapuri (then Sr. Industry Analyst, Frost & Sullivan India Title: The Flavors and Fragrances Industry in India Industry Overview).
Service / Product / Technology Overview
Highlight the uniqueness of your service / product / technology. Please avoid the technical details of the solution.
- Our uniqueness is the management team with focus on problem solving and analytical approach. We wish to be a company that under-promises and over-delivers.
- We will continuously improve our product quality, the process and compliance with the international regulatory bodies in fragrances.
- Our marketing strategy will be responsive (actively using the social media and technology) instead of interruptive (like traditional advertising) to get new enquiries.
- Satisfying customers' legitimate requirements will be our goal. This should lead to successful repeat business.
What is the value proposition
Why would consumers choose this over others?
Business model / financial model
This is about how you will make money from this business opportunity. The business model is important, not an excel sheet with 5 year detailed projections. Please remember, a 3/5-year excel sheet projection is at best an educated guess. More than specific details, the financial model should reflect the aspiration of the team.
Highlights of our Business Model:
- Research the target market segment e.g. Incense, Wash Products, Pan masala/ Zarda industries and make a list of prospective customers, contact persons and prepare an approach strategy.
- Always keep an eye on the competitors by monitoring their moves.
- Engage the best available fragrance team and assign them specific goal of "Creating the best products possible" as per the customer requirements.
- Engage best available sales team and assign them specific goal of "Selling when Customer needs the products" and devoting most time to the ones who need products the most.
Competitive landscape
Who are you currently or in future likely to compete against and what is your plan to win this battle?
Competitive Analysis:
- Our immediate competition will be small and medium sized fragrance manufacturers. We intend to compete with big players in the Indian market like S.H. Kelkar and Sachee Aromatics by 2015.
Risk factors to execution
What are the market risks, financial risks, business model risks, execution risks, etc. that may hamper your plans?
Risk planning will be an essential and recurring aspect of our planning and operations. We have not yet done a comprehensive risk planning exercise. We will involve the entire team into this and use brainstorming to arrive at the extensive list of risks. and come up with risk response strategies as well as prioritizing the risks. However, some risks that readily come to mind and the likely responses are as follows:
Business Model Risks:
- Short supply: If we get into excessive demand due to successful marketing, we run the risk of short supply of raw material.
- Possible risk response strategy: Identify several suppliers from several locations around the globe. Suppliers overseas may be able to fulfill the demand if given adequate notice.
- Product returns due to unsatisfactory quality.
- Possible risk response strategy: Understand the quality concerns of the customers in advance and ensure to get into the customer account only if the quality can be satisfactorily catered to.
- Social media presence not effective and not generating effective ROI.
- Possible risk response strategy: Research the best social media agencies and collaborate with them to come up with a comprehensive plan to ensure success. Factor in iterations and customer feedback as an essential mechanism to make it work.
- Licensing requirements and bureaucracy in Indian government agencies.
- Possible risk response strategy: Plan and study the landscape in advance and as far as possible avoid leaving licensing issues to the last minute. Work to eliminate the "chalta hai " - (it's ok) attitude.
Execution Risks:
- Fire and safety hazzards.
- Possible risk response strategy: Insurance, compliance with worldwide industry standards.
- Damage to the environmental using certain chemicals.
- Possible risk response strategy: Analyze and promote voluntary compliance. Focus on what is good for the world is good for you.
- Location of office and factory risks due to surroundings.
- Possible risk response strategy: Careful analysis of location of new offices. Influence the surroundings by channeled communication, stakeholder analysis and an adherence to truth and what is right.
Financial Risks:
- Non-payments of invoices especially dealing with small and medium sized customers in this domain.
- Possible risk response strategy: Research the customers in advance, offer discounts for early payments, use legal attorneys and collection agencies wherever suitable. Plan in advance.
- Exchange rate risks when the raw material is imported or when we tap the exports market.
- Possible risk response strategy: Use currency hedging to safeguard exchange rate fluctuation risks.
Market Risks:
- Competition playing ugly tactics.
- Possible risk response strategy: Influence matters at the legal and government level - Change marketing strategy, brainstorm for creative ideas to circumvent the problems.
- Big Players monopoly and stranglehold.
- Possible risk response strategy: Keep calm. Use the ideas from the team to grow the company ethically towards the bigger goal.
- Underpricing from competition to break the market.
- Possible risk response strategy: Brainstorm on being creative and plan in advance the alternative market strategies in detail.
Funding objective and use of funds
Describe how much money you want to raise and what you intend doing with these funds.
We are not yet looking at borrowing the funds. We would prefer to have a detailed sales projection, financial forecast and budget, cash flow analysis and then come up with the shortfall in cash flow which would lead to the need for external funds.
Fundraising history and investors
Mention previous investment history including year, amount and investors.
The only time in Fragrochem's history when the funds were borrowed were during it's inception in the year 1983. Mr. Bhupen Thakkar borrowed Rs. 18,000.00 to purchase the office space in Narsi Natha Street from Mr. Tulsidas Thakkar. The office was in the name of Mr. Tulsidas Thakkar. This was bought over by Mr. Bhupen Thakkar in the year 2007.
Please note, the more holes you poke in our business plan, the more thankful we will be to you.
Thanks for your time. Appreciate it.
Cheers,
- Chetan Thakkar.
Founder and CEO - Prowess Infotech.
