NTRODUCTION
With globalization spreading its wing like never before and the economy soaring to new levels, the common man has more to cheer about. As a result of this uptrend in nearly all the sectors of the Indian economy, the disposable income has increased over the years and people’s spending pattern have also gone on the rise. The Indian middle class has been the architect of this glorious change.
Ranchi, with its maximum population stratified into the middle class segment, has huge potential. The spending patterns have gone up considerably in the last few years. But the lack of proper spending avenues is something that the people are facing here. The unavailability of a place where people of all age group can spend some quality time is something that people of Ranchi are facing.
It is at this juncture where we propose to provide a solution to this problem. We propose to set up a place where, from food to entertainment everything is provided under one roof. Our proposed business would be called the THE “℮” ZONE.
The concept would consist of two things; first, it would have two food outlets, namely BARISTA and MAMA MIA, which are big brand names in India and it would also consist of a gaming arena. Barista and Mama Mia would cater to the food requirements of the customers and the gaming arena would be meant for the game-buffs. Since we are streaming two sectors together and the concept is new in Ranchi, therefore it would generate good demand and the addition of brands would add to the demand of this concept. THE ℮ ZONE would be the answer to the problems of the residents of Ranchi.
The gaming mood is fast catching on the residents of Ranchi and to tap this growing demand and to provide a suitable place for playing these high-definition games, we will be setting up an advanced gaming arena. It would consist of an additional feature that is the bowling alley, which would be the first of its kind in Ranchi.
The idea stands fresh because for the first time people will be experiencing the concept food with entertainment and this stands our competitive advantage. Demand is good for this sector and people are ready to try out this idea.
OBJECTIVE OF THE BUSINESS PLAN
Every entrepreneur has an underlying objective or motive when he or she proposes a business idea. In the same manner we too have an objective behind choosing the THE “℮” ZONE, as our proposed idea.
The basic objective of proposing this idea is that, this is a new concept in the developing cities like Ranchi, Jamshedpur, and Bokaro etc. We do have these concepts in the urban metro cities but this idea has not yet been tested in the cities following the footsteps of the metros. So it rather gives the idea a fresh look and a sense of anticipation is attached to it.
Another reason as to why we took up this project lies in the fact that since it’s a new concept in Ranchi it doesn’t have great competition in this line. You do have individual outlets, some providing food, some gaming but they do not provide all the things under one roof. So it lends a good amount of competitive advantage to us.
The spending patterns have also increased over the years in Ranchi, as the income levels have gone up in the city in the recent years. Therefore people are finding new avenues for spending; This lends the necessary demand in the market.
PURPOSE OF THE PROJECT
The purpose of the project can be illustrated from the point of view of the customers, ours i.e. the entrepreneurs, and the society.
FROM THE CUSTOMERS POINT OF VIEW:
1) To provide customers with a good ambience and quality food.
2) To provide entertainment and food under one roof.
3) To provide a place where people of all age group can sit and enjoy together.
FROM THE ENTREPRENEURS POINT OF VIEW:
1) To earn profit.
2) To start a business this is one of its kind in the city.
3) Through this project we intend to increase the existing goodwill of Ranchi in the national arena.
FROM THE SOCITIES POINT OF VIEW:
1) Larger and better employment opportunities.
2) Better hygiene provided.
3) A calm and serene environment where people can spend some quality time with their family and friends.
KEY CHARACTERISTICS OF THE BUSINESS
Since our business rests on the concept of “from food to entertainment, all under one roof”, therefore it has some basic underlying characteristics. The key characteristics that underline our business are as follows -:
1) Customers get all the facilities of food and entertainment under one roof.
2) It’s meant for people of all age group.
3) Good quality of food at fair price.
4) Customers get a wide variety of options to choose from.
5) Reputed brand names like Barista and Mama Mai cater to the requirements of the customers.
6) Quick and prompt service.
7) Prices charged for the games are not exhorbitant.
8) Free gifts and discounts provided on certain days.
9) Well maintained and clean space provided to the customers to enjoy the time spent there.
LOCATION
The location of a business site is detrimental to the success or failure of any business. The business site or location has to be selected after careful planning and thinking. For a business to run or operate successfully, it has to have several features:-
1) Firstly it should be located in such a place that is convenient for all the customers to reach.
2) Secondly the location should be in the heart of the city or around it.
3) Thirdly proper modes of transportation should be available to reach that place.
4) Fourthly the place in and around the business site should be well developed, neat and clean.
5) Fifthly the facilities of proper electricity, water connection and security concerns should be taken care of.
These are some of the basic features that a business location should have. Taking all these basic features into considerations, the place that we have decided to set up our business is
Near the Adivasi Boys Hostel
Morabadi Ground
Ranchi
We came up with some other places too such as Bariatu, Deepatoli, and Main road; but as per our survey and as per the basic features, the sight chosen by us came to be of prime interest. It complies with all the grass-root level requirements and thus is the best possible place for setting up the proposed business.
CONSUMER TRENDS
The consumer trends vary as per the two sectors. Consumer trends represent the behavior of the consumers towards both the sectors in the past and the present.
Since we are setting up the business in Ranchi, therefore the consumer trend tends to be different from that of the other places. In Ranchi the gaming fever is just catching on and more and more people are getting involved in this. But the unavailability of a proper gaming parlour is the major problem faced by the people here. There is a good demand for such a proper gaming arena and opening up a fully furnished gaming parlour would give the people of Ranchi what they want.
Ranchi is blessed with good restaurants but to get food and entertainment under one roof is something that the people of Ranchi have not witnessed yet. People here want a joint where they can come with their family and spend some quality and peaceful time. A proper, calm and relaxed atmosphere is something that the people want and our fun center provides them with the right kind of atmosphere.
People in Ranchi have been spending relentlessly on dining and things of entertainment purpose, so the THE ℮ ZONE with its unique features gives the people here exactly what they want; A place meant for kids to people of any age group.
ECONOMIC TRENDS
Since we have combined two sectors together under one roof therefore the economic trends tend to vary for both these sectors.
But the one similarity between these two sectors is the fact that both show a positive change. As the standards of living of the people have changed drastically over the past 10-15 years, the impact is also seen in the standard of living of the people of Ranchi. People are now more prone to spend because the income levels have also increased and more importantly, people are willing to spend.
The Indian hospitality industry and the gaming industry are just few of the many examples. The Indian hospitality industry has grown at a staggering rate and the growth rate is expected to be 8% between 2007 and 2016. Major investments are being made in this sector. In Ranchi itself, big projects are being undertaken and people are responding favorably to this change. But still the people of Ranchi yearn for more quality space to spend some time, and it is here, where we provide them with the solution to this problem.
In a similar manner the Indian gaming industry is poised at high growth levels. This sector has picked up pace in the last few years and is set to be one of fastest growing sectors in the Indian market. Research organizations predict that this sector will hit $300 million by 2009. In Ranchi itself the craze of high entertainment video games is increasing with more and more youngsters getting into it. But the lack of a proper place and proper equipments are not allowing the youngsters to get what they want and thus it gives us an opportunity to provide them with what they want. Thus there is scope for improvement in this sector in Ranchi.
SOCIAL CONSIDERATIONS
In today’s fast-paced environment, where there is cut-throat competition and people are too busy to give themselves that extra edge, seldom does a man get a chance to get together with his family. Even when he does, the choice of spending some quality time with his family is very limited.
In Ranchi, where we propose to set up our business, people are always finding that one particular space where each and every member of his family is satisfied. With the proposed idea of the fun center, we try to take just one small step in this direction of providing people with solution to this baffling question. The fun center not only provides solution to the needs of the families but to people of all age group. With the fun center coming up, people can find solace and can keep away from their tensions for some time.
Through the creation of the fun center we try to help the people of Ranchi to spend some good and memorable time. The concept is appealing to all the age groups and with so many big brand names under one roof; we surely try to give everyone what they desire.
Thus in a way, the society is helped in a better way.
INDUSTRY ANALYSIS
An overview of the industry:
Our fun center boasts of a restaurant, a bowling alley, pool games and high entertainment video games. Since we provide food and gaming under one roof, therefore it is important to have an overview of what these two sectors are all about and how are they shaping up for the future challenges.
The gaming industry is one of the fastest growing industries in the world today and employs thousands of people worldwide. Also known as interactive entertainment, this sector was once known as a niche market. But over the years it has grown remarkably not only outside India but also in India.
India is fast emerging as a key one-stop destination for game development with research firm AC Nielsen estimating the Indian gaming market to hit $300 million by end of 2009.
The future of the Indian gaming industry looks bright. The growth of this sector has attracted publishers, developers, animators and content providers and is also stimulating the development of innovative business models.
In the similar manner the hotel industry seems to be growing at a fairly good pace and gives bright indications for the future.
Hospitality is about serving the guests to provide them with "feel-good-effect". "Athithi Devo Bhavha" (Guest is God) has been one of central tenets of Indian culture since times immemorial. In India, the guest is treated with utmost warmth and respect and is provided the best services.
Today hospitality sector is one of the fastest growing sectors in India. It is expected to grow at the rate of 8% between 2007 and 2016. Many international hotels including Sheraton, Hyatt, Radisson, Meridien, Four Seasons Regent, and Marriott International are already established in the Indian markets and are still expanding.
ORGANISATIONAL STRUCTURE
Since the concept and execution of our business requires large amount of funds and the arrangement of finance is of prime importance as it forms the life blood of any business and helps in sustaining the operational process; therefore, we decided to set up the business in PARTNERSHIP.
The estimated breakdown of the cost is as follows:-
· ESTIMATED EXPENDITURE – Rs 9700000
· NUMBER OF PARTNERS – 3
· EACH PARTNERS CONTRIBUTION –
· Mr. Shreedhar Mohta: -Rs 35 lacs
· Mr. Anurag Singh: -Rs 11 lacs plus providing a loan of Rs 10 lacs
· Mr. Ankush Bhattacharya: - Rs 11 lacs
PARTNERSHIP DEED
Since partnership is the outcome of an agreement, it is essential that there must be some terms and conditions agreed upon by all the partners. Such terms and conditions may be oral or written. Such a written document which contains the terms and conditions of agreement is called ‘PARTNERSHIP DEED’. It is also called ‘Articles Of Partnership’. The following are the contents of the partnership deed of our proposed business.