Executive Summary

Statement of Purpose

The following business plan has been developed by Rina , Mohit, Anuj and Priyanka to obtain rupees 26,00,000 as start up capital for the development and operations of ‘Zeal Travels’. This plan will also serve as the financial and operational outline. Also as a plan for the first 3 years of the venture’s operation. Mr Anuj will obtain a bank loan through Bank of Baroda, of rupees 10,00,000. Also other three investors, who will work as partners with Mr. Mohit, will contribute rupees 4,00,000 each.

Zeal Travels and its Founders

Zeal Travels is a tour and travel company which is based on hiring of vehicles for various purposes. The company would be providing the vehicles to the customers according to the need and availability of the vehicle.

Vehicle would be available for variety of purpose like picnics or other tours, to various schools and colleges to corporate for business travels, for hiring by families or companies. Many facilities would also be provided to them during travels.

All the partners of this venture are management graduates. Their specialization varies from marketing to finance. All of them will obtain their degrees till the month of April, 2011. The location of the office would be at Suman Tower. The all India permit will also be obtained from R.T.O. The grand opening of the Zeal Travels is scheduled on 5th of November, 2011.

Competitive Advantage

As the concept of rent-a-car has not gained that much popularity in India till now, that’s why, now is great scope of development. Still there would be stiff competition from local tour agencies. But certain unique feature would definitely give this venture an edge over others. There are nearly forty big and small players in Gandhinagar. Out of which some of the large big players are, Zee Travels, Patel Travels, Maruti Travels, Modern Travels ETC.

Financial Forecasts

For the first year our cars will run upto 1,00,000km and for the second upto 1,20,000km and for the third year 1,40,000km. This will give a net revenue of rupees 3,59,949 for the first year, rupees 5,88,333 for the second year and rupees 8,00,815 for the third year. As the useful life of our cars is estimated to be 5 years so the depreciation is calculated on the basis of Straight line Method and the rate applicable is 20%. We also assume repair and maintain and insurance premium will grow at 15% per annum. Fuel charges i.e. power which is an external factor which cannot be predicted correctly. So we assume it to be constant. However, flexibility is there to make necessary changes.

Business Description

The reason for selecting “ZEAL” Travelers as a name itself creates one kind of Passionate ardor in the pursuit of doing anything. Lets understand it with one good quote “Firm, faithful, and devoted, full of energy and zeal, and truth, he labors for his race; he clears their painful way to improvement; he hews down like a giant the prejudices of creed and caste that encumber it. He may be stern; he may be exacting; he may be ambitious yet; but his is the sternness of the warrior Great heart, which guards his pilgrim convoy from the onslaught of Apollyon. His is the exaction of the apostle, who speaks but for Christ, when he says, "Whosoever will come after me, let him deny himself, and take up his cross and follow me." His is the ambition of the high master-spirit, which aims to fill a place in the first rank of those who are redeemed from the earth—who stand without fault before the throne of God, who share the last mighty victories of the Lamb, who are called, and chosen, and faithful”.

The industry focused is of service industry. Providing two of our cars to companies and also providing cars for personal purposes. The industry in which we are falling is of service industry in which we are doing business in travelling industry. Our industry is at growth stage because if we see the scenario of our country lots of families are living below poverty line. So they can’t afford to buy their own cars and so they prefer to hire car on rent if they want to go for some tour or picnic. Currently there is huge scope of profit in this industry and in future also it will give a handsome amount of profit. Overall market would include whole of Gandhinagar and Ahmadabad. Niche market would consist of middle class and higher middle class families. The market niche that we are targeting here is that of middle class and upper middle class families, corporate and educational institutes.

The venture started is basically part of service industry. It is going to be form the start up stage. The kind of services that are going to be provided would consist of mainly two things:

a. Rent a Car :

The vehicle would be provided to the customers sans drivers for a particular number of days. This would be done after prior verification of the identity and address of the customers.

b. Travel Business :

Vehicles would be provided to the corporate and other companies for business travels for this certain contracts would be made after fulfillment of certain terms and conditions.

Zeal Travels is a tour and travel company which is based on hiring of vehicles for various purposes. The company would be providing the vehicles to the customers according to the needs an availability of the vehicle. Vehicle would be available for variety of purpose like picnics or other tours to various schools and colleges to corporate for business travels, for hiring by families or companies. Many facilities would also be provided to them during travels.

The founders are mainly four people, with Mr. Mohit as its key personnel. All partners have management education as their educational background. The location of office is at Suman City. The permit for all India was obtained from R.T.O. As the concept of rent – a – car has not gained that much popularity in India till now, that’s why now is great scope of development still there would be stiff competition from local tour agencies. But certain unique feature would definitely give this venture an edge over others. The founding team members would be consisting of four persons Rina, Priyanka, Mohit and Anuj. The key personnel would be Mohit.

Rina would be taking responsibility of marketing for this new venture. Anuj would be taking the responsibility of handling the financial matters. Priyanka would be handling the human resource matters. Mohit as key personnel would be taking responsibility of all other matters. He would also be handling rest of the responsibilities along with other members. All the team members are MBAs specialization in their respective fields. This would be an added advantage in terms of reliability.

Potential Advantage:

As the concept of rent – a – car has not gained that much popularity in India till now, that’s why now is great scope of development still there would be stiff competition from local tour agencies. But certain unique feature would definitely give this venture an edge over others.

a. Renting a car concept is not yet that flourished in India that is a good scope for this venture.

b. Under this venture accommodation would also be provided to the customers to have an edge over the rivals in this industry.

c. Customers interested in adventurous activities would be provided with camping facilities at their desired location. This concept is still flourishing in India.

d. If customers desire the facility of studying it would also be provided i.e. videography and photography.

e. Tie up with various hotels and inns would be beneficial for the customers. As it would be convenient for them as they would not be required to look for hotels for accommodation.

Marketing segment: In the marketing segment of the plan the entrepreneur must convince investors that market exist, that sales projection can be achieved and that the competition can be beaten.

1) Market niche and Market share: Overall market would include whole of Gandhinagar and Ahmadabad. Niche market would consist of middle class and higher middle class families.

This venture would also be targeting schools, colleges and corporate from companies like TCS, E-Tech, Cambay Hotels.

2) Competitive Analysis: competitor analysis that describes thoroughly the competition existing today and how specifically your concept will match up or exceed the competition and why.

Analysis of competitors:a. As the competitors have started their business before two years

so they have good experience in this field.b. They also have good contacts with customers.c. They also have more number of vehicles.

As they are old in this business they have reliable manpower.

3) Marketing strategy:

Unique Features:f. Renting a car concept is not yet that flourished in India that is a

good scope for this venture.g. Under this venture accommodation would also be provided to

the customers to have an edge over the rivals in this industry.h. Customers interested in adventurous activities would be

provided with camping facilities at their desired location. This concept is still flourishing in India.

i. If customers desire the facility of studying it would also be provided i.e videography and photography.

j. Tie up with various hotels and inns would be beneficial for the customers. As it would be convenient for them as they would not be required to look for hotels for accommodation.

4)Advertising plan: we are planning to give advertising through two modes

1) print advertising: As far as print advertising is concern advertising we use local news paper like a’bad mirror & gandkinagar samachar

2) advertising: local channel

Operations Segment

Overall market would include whole of Gandhinagar and Ahmadabad. The location of office is at Suman City. The office location selection is done at Suman City because the area is a corporate area. Suman City is one of the prime area in Gandhinagar where lots of offices are available like Vodafone call center, then lots of insurance offices, cine max multiplex, shopping center, banks, etc. where we can get all types of customers.

As we are in service industry that to in travelling industry we need drivers as labor. We are also having HR department which is handling the part of recruitment. So they have taken this part into consideration. As the location selection is prime location in Gandhinagar so the problem of customers is not there. We are having customers form all area i.e. service people, business man, students etc. because lots of offices are there in this area. The availability of suppliers is not a big issue because in next to our office there is a garage of four wheeler by which we are getting service of our vehicle.

As we are having office in Suman city the problem of bank is not a big issue. We are having account with Bank of Baroda and State Bank of India. Both of the bank branches are available in next to our office. So in this way we are getting full support of area which we have selected.

We are giving three of our cars on rent. In which each driver is having a salary of Rs. 5000 p.m. we are hiring three drivers and their timing are not fix. As we are having travelling business they have to go on trip outside so their time is flexible. But they have to report daily in morning at 9 am at office.

Driver’ Salary 12 Months * 5000 Rs. * 3 Men 1,80,000

2) Management segment:

This segment identifies the key personnel, their position and responsibilities and the career experience that qualify them for those particular rolrs

1. Identify the founding team members and the key personnel in place to guide the proposed company.

The founding team members would be consisting of four persons Rina, Priyanka, Mohit and Anuj. The key personnel would be Mohit.

2. Explain the teams qualification and how the critical tasks are being assigned. Also include any board of directors / advisors that are in place.

Rina would be taking responsibility of marketing for this new venture. Anuj would be taking the responsibility of handling the financial matters. Priyanka would be handling the human resource matters. Mohit as a key personnel would be taking responsibility of all other matters. He would also be handling rest of the responsibilities along with other members.

3. Finally, outline any ‘gaps’ in the management team (in teams of skills and abilities) and explain how those will be addressed.

All the team members are MBAs specialization in their respective fields. This would be an added advantage in terms of reliability.

Harvest Strategy Segment

The following business plan has four members as its key members. The start up capital is around 2600000. Mr Mohit is the key personnel. Apart from him if any of the members or member withdraws from this venture in the very initial stage then the venture would begin with lesser number of assets like the number of vehicles would be less initially.

The other solution in such circumstances can be to go for cheaper vehicles rather than the costlier one. For instance we can go for some other cheap vehicle available instead of Tavera and so on.

In future if any such situation arises, then would be done according to the clause mentioned in the contract. Whatever would be the net profit at that point of time, that would be distributed accordingly.

If any partner wishes to leave the business, then his or her share would be given in monetary form and all other assets will remain with the rest of the partners. Similarly, the losses would be recovered on equal basis from all the partners.

Milestone Schedule

2011

January Establish conceptual ideas of Zeal Travels

Begin research of industry and trends

Initialize conversation with other travel

agencies

February Find location

Conduct survey research at travel agencies

March Analyze survey data

Start writing business plan

Establish costs and determine potential

market

Complete rough drafts of plan segments

April Finalize costs and develop final copy of

plan

Turn in finished plan

Present plan for Zeal Travels to investors

And banks

May Submit application at RTO

Obtain financing

Rent a shop

June and July Taking all India permit

Setting up office

Hiring drivers

August Buying vehicles and accessories

Advertising and marketing

September Look for all possible destinations

Tying up with hotels

October Hire mechanics and general staff members

Train employees on all aspects of business

November Grand opening of Zeal Travels on 5th Nov.

Beginning of tours

FUTURE

Expand the areas of travelling to newer places

Buy more vehicles with more luxurious facilities