Paper Code: BBA-312

Entrepreneurship Development

“Start up Business proposal”

Undertaken at

“VAG”

Submitted in partial fulfillment of the

requirements For the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

To

Guru Gobind Singh Indraprastha University,

Delhi

Under the Guidance of: Submitted by:

Mrs Rubeena Bano Vanshika Goyal

Faculty Guide BBA 6MA, Shift 1st

10217001721

Session 2021 to 2024

1
 To Whom It May Concern
I Vanshika Goyal Enrollment No. 10217001721 from BBA-VI Sem, Shift 1st of the Tecnia Institute of
Advanced Studies, Delhi hereby declare that the Live project Report (BBA-312) entitled “Start-Up Business
proposal ” at “VAG” is an original work and the same has not been submitted to any other Institute for the
award of any other degree.

Date: Signature of the Student

Certified that the Live Project Report submitted in partial fulfillment of BACHELOR OF BUSINESS
ADMINISTRATION (BBA) to be awarded by G.G.S.I.P. University, Delhi by
,Enrolment No. has been completed under my guidance
and is Satisfactory.

Date: Signature of the Faculty Guide

Name of the Guide: Mrs.Rubeena Bano

2
 ACKNOWLEDGEMENT

It is indeed a moment of immense gratification for me to express my deepest gratitude to Mrs. Rubeena
Bano (TIAS) for providing me with an opportunity to carry out this project study and help me create this
report based on a new Self Start-up bag comapany.

I am grateful to her for casting an excellent academic ambiance, without which the project would not have
been fulfilled. I express my sincere gratitude to my project guide for her guidance and supervision during the
development of this project and for making it a reality.

Last but not least I would like to thank the teachers staff of library, seniors, friends, and well-wishers for
their enormous support and encouragement.

3
 TABLE OF CONTENTS

SERIAL NO. PARTICULARS PAGE NO

1. Chapter 1: Overview of Business

 Mission Statement
 Business Concept
 Business goals and Vision

2. Chapter 2: Product or services offered

3. Chapter 3: Market Analysis

 Analysis of market opportunities
and challenges
 PESTEL Analysis
 SWOT Analysis
4 Chapter 4: Marketing plan
 Product Plan
 Price plan
 Place plan
 Promotion Plan
5 Chapter 5: Logistics & operations plan

6 Chapter 6: Financial Plan

7 Bibliography/References

4
 Chapter 1: Overview of the Business

Actual Overview-
Introduction of the VAG
Whether you're headed to class, the office, or anywhere in between, our bags have your storage needs
covered. Thoughtful features like padded straps, organizer pockets, and sleek silhouettes make these the
perfect accessory for students, professionals, and anyone seeking an affordable, durable, and fashionable bag
for daily use. Ditch the generic bag and upgrade to our stylish, quality bags today!.
MISSION STATEMENT
A mission statement encapsulates the purpose and values of the business. For VAG, the mission statement is:
"At VAG, our mission is to affordable yet durable bags designed with office and college life in mind."
Explanation:
 Wider straps prevent digging into shoulders
 Interior organizer pockets for pens, phones, keys
 Laptop sleeve and padded tablet pocket
 Water-resistant fabric protects contents
 Sleek, professional designs suitable for work or school

Business Concept:
The business concept defines what VAG does and how it achieves its mission. For VAG, the business concept
is:
" provides turnkey solutions for urban agriculture, offering state-of-the-art vertical farming systems, hydroponic
kits, and smart gardening tools. Our integrated platform includes remote monitoring and control capabilities,
educational resources, and community engagement initiatives."
Explanation:
 Turnkey Solutions: VAG offers comprehensive solutions for urban agriculture, providing everything
from equipment to educational resources, making it easier for customers to start their own urban
farming projects.
 Product Offerings: The company's product offerings include vertical farming systems, hydroponic
kits, and smart gardening tools, catering to different preferences and skill levels.

 Integrated Platform: VAG' platform is designed to be user-friendly and accessible, with features such
as remote monitoring and control, educational resources, and community engagement initiatives to
support customers throughout their urban farming journey

VISION
"The goal is to empower customers to make socially conscious purchases that align with their values while still
getting an item that will stand the test of time".

Explanation:
Sustainability will also be a core value, using recycled materials whenever possible and partnering with
manufacturers that engage in ethical, environmentally-friendly practices. The supply chain will be
transparent so customers can feel good knowing who made their bag and how. To keep prices low, the brand
will utilize an online-direct model, selling directly to consumers and cutting out unnecessary markups from
5
retailers. However, quality will never be sacrificed for cost—these bags are built to last for years of rugged
use. With a dedication to both affordability and durability, this bag company aims to make functional, long-
lasting products accessible to all budgets.

BUSINESS GOAL

1. Functionality and versatility will be key, with bags available in a range of styles from simple backpacks
and totes to laptop bags and briefcases, each featuring plenty of pockets and compartments to keep
belongings organized
2. Expand market reach and product offerings to serve diverse customer segments and geographic regions.

6
 CHAPTER 2

Target Market

VAG targets a diverse market, product details that would appeal to students and young professionals are a
sleek, modern style that can transition from school or the office to the gym or a weekend outing, exterior
pockets for frequently accessed items like phones and transit passes, padded shoulder straps for ergonomic
comfort when worn for extended periods, and special compartments for tech accessories like chargers. This
market needs a practical yet stylish bag that can adapt to their changing daily needs from work to school to
social activities, while also being affordable and durable enough for heavy daily use. The many compartments
provide specialized storage so they can stay organized on the go.
Products and Services offered:

 Everyday Backpacks: Perfect for students, professionals, and travelers alike, our everyday backpacks
are designed with functionality and durability in mind. With padded laptop compartments, multiple
pockets for organization, and sturdy construction, these backpacks are ready for whatever your day
throws at them.
 Outdoor Adventure Packs: Whether you're hitting the trails for a day hike or embarking on a week-
long camping trip, our outdoor adventure packs are up to the challenge. Made from rugged materials
and featuring ergonomic designs, these packs will keep your gear safe and secure no matter where
your adventures take you.
 Travel Duffels: Say goodbye to flimsy, easily damaged duffel bags – our travel duffels are built to
last. With reinforced seams, heavy-duty zippers, and spacious interiors, these bags are perfect for
weekend getaways, business trips, or extended vacations.
 Trendy Totes: For those days when you need to carry a little extra without sacrificing style, our trendy
totes are the perfect solution. Whether you're headed to the farmer's market, the beach, or just running
errands around town, these versatile bags are as fashionable as they are functional.
 Tech Cases and Accessories: Keep your gadgets safe and organized with our selection of tech cases
and accessories. From padded laptop sleeves to cable organizers and travel chargers, we've got
everything you need to protect your tech on the go.

Features and Benefits:

 Year-round Harvest: VAG' products enable users to grow fresh produce year-round, regardless of
season or climate, ensuring a steady supply of nutritious food.

 Space Optimization: Vertical farming systems and hydroponic kits maximize space
utilization, making them suitable for urban environments with limited land availability.

 Resource Efficiency: Hydroponic gardening and smart gardening tools require less water and
land compared to traditional gardening methods, minimizing environmental impact and resource
consumption.

 Convenience and Control: Smart gardening tools provide users with real-time monitoring and
control capabilities, allowing them to optimize growing conditions and remotely manage their gardens
with ease.

7
 CHAPTER 3
Market Analysis:
VAG operates within the fashion accessories industry, specifically focusing on the production and
distribution of bags. The industry encompasses a wide range of products, including handbags, backpacks,
travel bags, and more. It operates within the broader fashion sector, which is influenced by trends,
consumer preferences, and economic conditions.

Market Size and Growth:

The global market for fashion accessories, including bags, has experienced steady growth over the years.
Factors such as rising disposable incomes, changing fashion trends, and increased consumer spending on
luxury goods contribute to this growth. The market size varies by region, with significant demand from
North America, Europe, Asia Pacific, and emerging markets.

Market Opportunities:

 Fashion Trends: Fashion trends heavily influence the demand for bags. Consumers seek stylish and
functional designs that align with current fashion preferences. Trends such as sustainability,
minimalism, and customization have emerged in recent years, shaping product development and
marketing strategies.

 E-commerce Growth: The rise of e-commerce has transformed the retail landscape, offering
consumers greater convenience and access to a wider range of products. VAG can leverage online
platforms to reach a global audience, expand market reach, and drive sales.

 Brand Identity and Marketing: Building a strong brand identity and implementing effective
marketing strategies are essential for success in the competitive fashion industry. VAG can
differentiate itself through unique designs, quality craftsmanship, and storytelling to connect with
target consumers.

 Consumer Preferences: Understanding consumer preferences is critical for product development

and marketing efforts. Factors such as price sensitivity, brand reputation, durability, and
functionality influence purchasing decisions. VAG can conduct market research to identify key
consumer preferences and tailor its offerings accordingly.

 Sustainability and Ethical Practices: There is a growing demand for sustainable and ethically
produced fashion products. Consumers are increasingly conscious of environmental and social
issues, prompting companies to adopt sustainable practices throughout their supply chains. VAG
can explore eco-friendly materials, ethical manufacturing processes, and transparent sourcing to
appeal to environmentally conscious consumers.
Market Challenges:

 Fast-Changing Fashion Trends : The fashion industry operates in a dynamic environment where
trends evolve rapidly. Consumer preferences, influenced by factors such as celebrity endorsements,
social media, and cultural shifts, can change swiftly. Keeping pace with these trends and consistently
delivering products that resonate with consumers is a significant challenge for VAG.

 Intense
SupplyCompetition: The fashion
Chain Disruptions accessories
: The fashion market
industry is highly
relies competitive,
on complex with numerous
global supply brands
chains, involving
vying for consumer
multiple attention
suppliers and and market
manufacturing share. VAG
facilities. faces competition
Disruptions such as rawfrom both shortages,
material established players
and emerging brands,
transportation delays,each
and striving to differentiate
geopolitical tensions canitself through
impact uniqueschedules
production designs, quality
and supply chain
craftsmanship,
efficiency. and marketing strategies. 8
 Diversification of Suppliers: Identify and qualify alternative suppliers for critical components and
raw materials to reduce dependence on a single source. Establish strategic partnerships with reliable
suppliers to mitigate supply chain risks.
PESTEL Analysis:

Political Factors:

 Trade Policies: Changes in trade policies, tariffs, and international trade agreements can affect the
cost of importing raw materials and exporting finished products for VAG, especially if it operates
in multiple countries.

 Regulatory Compliance: Compliance with government regulations related to labor, safety

standards, environmental protection, and taxation is essential for VAG's operations. Changes in
regulations can impact production costs and market access.

Economic Factors:

 Consumer Spending: Economic conditions, including GDP growth, inflation rates, and
unemployment levels, influence consumer purchasing power and discretionary spending on fashion
accessories like those offered by VAG.

 Exchange Rates: Fluctuations in exchange rates can impact the cost of sourcing raw materials,
manufacturing, and exporting products for VAG, particularly if it operates in multiple countries or
relies on imports and exports.

Social Factors:

 Fashion Trends: Social trends, cultural preferences, and fashion influencers can drive changes in
consumer preferences and demand for fashion accessories. VAG must stay attuned to evolving
fashion trends to remain relevant and appeal to its target market.

 Demographic Shifts: Changes in demographics, such as population growth, aging populations, and
shifts in consumer demographics, can impact the size and composition of VAG's target market,
influencing product design and marketing strategies.

Technological Factors:

 Digitalization: The proliferation of e-commerce platforms and digital marketing channels offers
opportunities for VAG to reach a wider audience, engage with customers, and drive online sales.
Adopting digital technologies can enhance operational efficiency and customer experience.

 Manufacturing Technologies: Advances in manufacturing technologies, such as automation and 3D

printing, can improve production processes, reduce costs, and enable customization for VAG's
products, enhancing competitiveness and product innovation.

9
 Environmental Factors:

 Sustainability Concerns: Growing consumer awareness and concern about environmental

sustainability can influence purchasing decisions. VAG may face pressure to adopt sustainable
practices throughout its supply chain, including sourcing eco-friendly materials and reducing waste.

 Climate Change Impacts: Climate change-related events, such as extreme weather patterns and
natural disasters, can disrupt supply chains, affect production facilities, and impact the availability of
raw materials for VAG's products.

Legal Factors:

 Intellectual Property Protection: Intellectual property rights, including trademarks, copyrights, and
patents, are essential for protecting VAG's brand and designs from infringement by competitors.

 Consumer Protection Laws: Compliance with consumer protection laws, including product safety
standards and labeling requirements, is necessary to ensure the quality and safety of VAG's products
and maintain consumer trust.

SWOT Analysis:

Strengths:

 Strong Brand Presence: VAG has established itself as a prominent brand in the fashion accessories
market, known for its stylish designs, quality craftsmanship, and wide product range.

 Diverse Product Portfolio: VAG offers a diverse range of fashion accessories, including handbags,
wallets, shoes, and luggage, catering to different consumer preferences and occasions.

 Innovative Designs: VAG is known for its innovative and trendy designs, staying ahead of fashion
trends and continuously refreshing its product offerings to appeal to its target market.

 Retail Distribution Network: VAG has a strong retail presence with a network of exclusive brand
outlets, department store partnerships, and online channels, enhancing its accessibility to consumers.
1
Weaknesses:

 Dependence on Fashion Trends: VAG's reliance on fashion trends makes its product offerings
susceptible to changes in consumer preferences, which could lead to inventory obsolescence and
markdowns.

 Supply Chain Complexity: Managing a complex global supply chain for sourcing raw materials and
manufacturing products may lead to challenges such as supply disruptions, quality control issues,
and cost fluctuations.

 Brand Perception: While VAG enjoys a strong brand reputation, negative publicity or quality issues
could potentially damage its brand image and erode consumer trust.

Opportunities:

 E-commerce Growth: The rapid growth of e-commerce presents opportunities for VAG to expand
its online presence, reach new customers, and increase sales through digital channels.

 International Expansion: Exploring new markets and expanding internationally can diversify VAG's
customer base and revenue streams, tapping into growing demand for fashion accessories in
emerging markets.

 Product Innovation: Investing in research and development to introduce innovative products,

materials, and technologies can differentiate VAG from competitors and attract discerning
consumers.

 Sustainability Initiatives: Embracing sustainable practices, such as using eco-friendly materials and
reducing environmental impact, can align with consumer preferences for ethically conscious brands
and enhance VAG's brand value.

Threats:

 Competition: Intense competition in the fashion accessories market from both established players
and emerging brands poses a threat to VAG's market share and pricing power.

 Economic Uncertainty: Economic downturns, recessions, and fluctuations in consumer spending

patterns can impact demand for discretionary items like fashion accessories, affecting VAG's sales
and profitability.

 Counterfeiting: Counterfeit products and intellectual property infringement pose risks to VAG's
brand integrity, revenue, and market share, particularly in regions with weak intellectual property
enforcement.

 Supply Chain Risks: Disruptions in the global supply chain due to factors such as raw material
shortages, transportation delays, or geopolitical tensions can disrupt VAG's production and
distribution operations.

1
 CHAPTER 4
MARKETING PLAN:
Product Plan

VAG is a renowned fashion brand that specializes in trendy and stylish accessories, including handbags,
wallets, shoes, and luggage. The product plan aims to outline strategies for product development,
assortment planning, and lifecycle management to maintain VAG's competitive edge and meet the evolving
needs of its target market.

 Market Research and Trend Analysis: Conduct thorough market research and trend analysis to identify
emerging fashion trends, consumer preferences, and market gaps. Utilize insights to guide product
development decisions and ensure alignment with current market demands.

 Design Innovation: Foster a culture of creativity and innovation within the design team to develop
unique and trend-setting designs that differentiate VAG from competitors. Encourage experimentation
with materials, colors, textures, and silhouettes to create captivating and fashion-forward products.

 Quality Assurance: Maintain stringent quality control measures throughout the product development
process to uphold VAG's reputation for excellence. Collaborate closely with suppliers and
manufacturers to source high-quality materials and ensure superior craftsmanship in all products.

Price Plan:

VAG, a prominent fashion brand specializing in trendy accessories such as handbags, wallets, shoes, and
luggage, must develop a comprehensive price plan that balances profitability with affordability and reflects
the brand's value proposition in the market. The price plan aims to optimize pricing strategies across
product categories to maximize revenue and maintain competitiveness.

 Profit Maximization: Generate maximum revenue and profitability for VAG's products while
maintaining perceived value and customer satisfaction.

 Market Penetration: Capture market share and attract new customers by offering competitive prices
that appeal to value-conscious shoppers.

 Premium Pricing: Position select products, such as luxury handbags or limited-edition collections, at
premium price points to emphasize exclusivity, craftsmanship, and brand prestige. Target affluent
consumers willing to pay a premium for high-quality and aspirational products.

 Price Segmentation: Segment products into different price tiers to cater to diverse customer segments
with varying budget constraints and preferences. Offer entry-level, mid-range, and premium options
within each product category to appeal to a broad spectrum of consumers.

 Value-Based Pricing: Set prices based on the perceived value of VAG's products relative to
competitors. Emphasize unique features, design aesthetics, and brand reputation to justify higher price
points and differentiate VAG from lower-priced alternatives.

 Promotional Pricing: Implement promotional pricing strategies, such as discounts, seasonal sales, and
bundle offers, to stimulate demand, drive sales, and clear excess inventory. Leverage promotional
events and marketing campaigns to create urgency and incentivize purchases.

1
 Place Plan:
VAG, a leading fashion brand renowned for its trendy accessories, including handbags, wallets, shoes, and
luggage, must develop a comprehensive place plan to ensure efficient distribution and maximum
availability of its products to consumers. The place plan outlines strategies for channel management, retail
partnerships, and e-commerce expansion to enhance market penetration and customer accessibility.

 Retail Stores: Establish a network of exclusive brand outlets and flagship stores in key metropolitan
areas and high-traffic shopping districts. Design stores to reflect VAG's brand aesthetic and provide a
premium shopping experience for customers.

 Department Stores: Forge partnerships with leading department stores and specialty retailers to
distribute VAG's products through their physical retail locations. Secure prominent shelf space and
display placements to maximize visibility and drive sales.

 Online Retailers: Partner with established online retailers and e-commerce platforms to expand VAG's
digital presence and reach a broader audience of online shoppers. Optimize product listings, imagery,
and descriptions to enhance visibility and conversion rates.

 Own E-commerce Platform: Maintain an official e-commerce website to serve as a direct-to-consumer

sales channel for VAG's products. Offer a seamless online shopping experience, secure payment
options, and fast shipping to encourage repeat purchases and customer loyalty.

 Geographic Expansion: Expand VAG's presence in new geographic markets by opening additional
retail stores, forging partnerships with local retailers, and strengthening distribution channels. Conduct
market research to identify promising regions for expansion and adapt product offerings to local
preferences.

Promotion Plan:
VAG, a renowned fashion brand known for its trendy accessories, including handbags, wallets, shoes,
and luggage, aims to develop a comprehensive promotion plan to increase brand awareness, drive
customer engagement, and boost sales. The promotion plan outlines strategies for integrated marketing
communications across various channels to effectively reach and resonate with VAG's target audience.

1. Advertising:
 Print Media: Place advertisements in fashion magazines, lifestyle publications, and newspapers to
showcase VAG's products and brand message to a broad audience.

 Digital Advertising: Launch online advertising campaigns across social media platforms, search
engines, and display networks to target specific demographics, interests, and behaviors.

2. Public Relations (PR):

 Media Relations: Cultivate relationships with fashion editors, bloggers, and influencers to secure
editorial features, product placements, and mentions in prominent fashion publications and online
platforms.

 Events and Sponsorships: Sponsor fashion events, industry trade shows, and influencer gatherings to
generate buzz, showcase VAG's products, and connect with key stakeholders.

1
 Chapter 5
Logistics & Operations Plan:

Supply Chain Management

Supply chain management (SCM) plays a critical role in ensuring the efficient flow of materials,
information, and services from suppliers to manufacturers to customers. For VAG, a leading fashion brand
specializing in trendy accessories, effective supply chain management is essential to meet customer
demand, maintain product quality, and sustain competitive advantage. The SCM strategy encompasses
sourcing, procurement, production, logistics, and distribution activities aimed at optimizing efficiency,
reducing costs, and enhancing customer satisfaction.
Key Components of Supply Chain Management:

Sourcing and Procurement:

 Identify reliable suppliers and manufacturers capable of supplying high-quality materials and
components required for VAG's products.

 Negotiate favorable terms, pricing agreements, and contracts with suppliers to ensure cost-
effectiveness and supply reliability.

 Implement supplier relationship management (SRM) practices to foster collaboration, transparency,

and continuous improvement in supplier performance.

Production Planning and Manufacturing:

 Develop production plans and schedules based on demand forecasts, inventory levels, and production
capacity constraints.

 Optimize manufacturing processes to maximize efficiency, minimize lead times, and reduce production
costs while maintaining quality standards.

 Implement lean manufacturing principles and continuous improvement initiatives to eliminate waste,
streamline operations, and enhance productivity.

Inventory Management:

 Maintain optimal inventory levels across raw materials, work-in-progress, and finished goods to meet
customer demand while minimizing carrying costs and stockouts.

 Utilize inventory optimization techniques, such as ABC analysis, just-in-time (JIT) inventory, and
safety stock management, to balance inventory investment with service levels.

 Implement inventory visibility systems and inventory tracking technologies to monitor stock
movements, track inventory accuracy, and prevent stock discrepancies.

Logistics and Distribution:

 Design an efficient logistics network encompassing transportation, warehousing, and distribution

channels to ensure timely delivery of products to customers.

1
 Implement warehouse management systems (WMS) and distribution center automation to improve
order fulfillment accuracy, speed, and efficiency.
 Optimize transportation routes, modes, and carriers to minimize freight costs, transit times, and
carbon footprint.

Supplier Collaboration and Risk Management:

 Collaborate closely with key suppliers and partners to mitigate supply chain risks, such as raw
material shortages, production disruptions, and geopolitical uncertainties.

 Develop contingency plans and alternative sourcing strategies to address potential disruptions and
ensure business continuity.

 Monitor supplier performance, compliance, and sustainability practices to uphold ethical standards
and mitigate reputational risks.

Technologies and Tools:

 Enterprise Resource Planning (ERP) Systems: Integrate ERP software to streamline business
processes, centralize data management, and facilitate real-time visibility and collaboration across the
supply chain.

 Supply Chain Analytics: Utilize data analytics and predictive modeling tools to analyze supply chain
performance, identify trends, forecast demand, and optimize decision-making.

 Internet of Things (IoT) Sensors: Deploy IoT sensors and RFID technology to track inventory
movements, monitor product quality, and optimize asset utilization throughout the supply chain.

 Blockchain Technology: Explore blockchain-based platforms for enhanced transparency, traceability,

and security in supply chain transactions, particularly for ethical sourcing and product authenticity
verification.

Customer Service:
 Customer-Centric Culture: Foster a customer-centric culture within the organization by instilling
values of empathy, accountability, and continuous improvement among employees.

 Multi-Channel Support: Offer omni-channel support to customers through multiple touchpoints,

including in-store assistance, telephone helpline, email support, live chat, and social media platforms.

 Product Knowledge and Expertise: Provide comprehensive training programs to customer service
representatives to equip them with in-depth product knowledge, styling advice, and problem-solving
skills.

 Responsive Communication: Prioritize timely and proactive communication with customers by

acknowledging inquiries promptly, providing regular updates on order status, and resolving issues in
a transparent and empathetic manner.

1
 CHAPTER 6

Financial Plan:

Revenue Generation:

VAG generates revenue primarily through the sale of its fashionable accessories, which include handbags,
wallets, and luggage. Here's a breakdown of how VAG generates revenue:

Product Sales: The primary source of revenue for VAG comes from the sale of its diverse range of fashion
accessories. Customers purchase VAG products either through the brand's own retail stores, online e-
commerce platform, or through third-party retail partners such as department stores, fashion boutiques, and
specialty retailers.

Retail Sales: VAG operates standalone retail stores and flagship outlets in strategic locations, where
customers can browse and purchase products directly from the brand. Revenue is generated through retail
sales made at these physical stores.

E-commerce Sales: VAG's e-commerce platform allows customers to shop for products online
conveniently. Revenue is generated through online sales made via the brand's official website, where
customers can explore the product catalog, place orders, and make payments electronically.

Cost Management:

Cost management at VAG involves a systematic approach to controlling expenses across various aspects of
the business while maintaining product quality, brand integrity, and customer satisfaction. Here's an
overview of VAG's cost management practices:

1. Strategic Sourcing and Supplier Management:

 VAG carefully selects suppliers based on factors such as quality, reliability, and cost-effectiveness.
 Negotiates favorable terms, including pricing, payment terms, and volume discounts, to optimize
procurement costs.

2. Lean Manufacturing Practices:

 Implements lean manufacturing principles to minimize waste, improve efficiency, and reduce
production costs.
 Streamlines production processes, eliminates non-value-added activities, and maximizes resource
utilization.

3. Inventory Management:
 Utilizes inventory management techniques such as demand forecasting and just-in-time (JIT) inventory
to minimize carrying costs.
 Maintains optimal inventory levels to meet customer demand while avoiding excess inventory and
obsolescence.

4. Cost-Efficient Design and Development:

 Integrates cost-conscious design practices into product development to optimize material usage and
manufacturing processes.
 Collaborates closely with design teams to identify cost-saving opportunities without compromising
product quality or aesthetics.

1
Revenue Projections:

Historical Performance: Review VAG's historical sales data, revenue growth rates, and seasonality
patterns. Identify key drivers of past sales performance and any factors that may have influenced revenue
fluctuations.

Product Portfolio: Evaluate VAG's product portfolio, including handbags, wallets, shoes, belts, and
luggage. Assess the performance of existing product lines and potential opportunities for new product
launches or extensions.

Economic Outlook: Consider macroeconomic factors such as GDP growth, consumer spending trends,
inflation rates, and currency fluctuations that may impact consumer purchasing behavior and overall
market demand for fashion accessories.

Forecasting Models: Develop forecasting models based on historical sales data, market trends, and internal
business factors. Utilize quantitative techniques such as time series analysis, regression analysis, and
predictive modeling to project future sales and revenue.

Scenario Analysis: Conduct scenario analysis to assess the potential impact of different market scenarios,
such as optimistic, pessimistic, and baseline scenarios, on revenue projections. Evaluate the sensitivity of
revenue forecasts to changes in key assumptions and variables.
Revenue projection typically involves forecasting future sales based on factors such as market demand,
product offerings, pricing strategy, distribution channels, and macroeconomic conditions. Here's a general
framework for revenue projection for VAG:

Market Analysis: Conduct a thorough analysis of the fashion accessories market, including trends,
consumer preferences, competitive landscape, and growth opportunities. Identify target demographics,
market segments, and geographical regions for expansion.

Expense Budgeting:

 Expense budgeting at VAG likely involves a structured and comprehensive approach to planning,
allocating, and managing resources across various operational areas. Here's how VAG might approach
expense budgeting:

 Cost of Goods Sold (COGS): Expenses related to the production or purchase of goods, including raw
materials, manufacturing costs, and packaging.

 Operating Expenses: Day-to-day expenses necessary for business operations, such as rent, utilities,
salaries, marketing, advertising, and administrative costs.

 Capital Expenditures: Investments in long-term assets and infrastructure, such as equipment,

machinery, technology, and store renovations.

 Sales and Marketing Expenses: Budget allocated for sales commissions, advertising campaigns,
promotional events, and other marketing initiatives.

 Research and Development (R&D): Expenses related to product research, design, and development
efforts aimed at innovation and product improvement.

 General and Administrative (G&A): Overhead expenses associated with managing the business,
including salaries for non-production staff, office supplies, legal fees, and insurance.

1
Financial Projections:
Gathering Data: VAG collects and analyzes historical financial data, including income statements, balance
sheets, cash flow statements, and sales reports. This data provides insights into past revenue, expenses,
profitability, and cash flow dynamics, serving as a foundation for financial projection.

Market Analysis: VAG conducts market analysis to understand industry trends, consumer behavior,
competitive landscape, and macroeconomic factors that may impact future financial performance. This
analysis helps VAG make informed assumptions about market demand, pricing dynamics, and revenue
potential.

Revenue Forecasting: VAG forecasts future revenue by analyzing historical sales data, market trends, and
sales projections for new products or initiatives. Revenue forecasts may be broken down by product
category, distribution channel, geographic region, or customer segment to provide more granular insights.

Expense Projection: VAG projects future expenses by estimating costs associated with operations,
production, marketing, sales, distribution, and other business activities. Expense projections take into
account historical spending patterns, planned investments, cost control measures, and inflationary factors.

Profitability Analysis: VAG assesses the profitability of different revenue streams, product lines, and
business segments to identify areas of strength and opportunities for improvement. Profitability analysis
helps VAG optimize resource allocation, pricing strategies, and product mix to maximize overall
profitability.

Funding Requirements
Government Grants and Subsidies: VAG may seek funding through government grants, subsidies, or
incentive programs available for businesses in the fashion industry. These programs may provide financial
assistance for research and development, innovation, export promotion, or sustainability initiatives.

Strategic Partnerships and Joint Ventures: VAG may enter into strategic partnerships or joint ventures with
other companies to access funding, resources, or distribution channels. Strategic partnerships can provide
capital injections, access to new markets, or synergies that benefit both parties involved.

Bootstrapping and Internal Financing: VAG may use internal funds generated from operations to finance
growth and expansion initiatives. This could include reinvesting profits, reducing expenses, or optimizing
working capital management to free up cash flow for funding requirements.

Crowdfunding: VAG may leverage crowdfunding platforms to raise capital from a large number of
individual investors or backers. This could include rewards-based crowdfunding campaigns, where backers
receive incentives or pre-orders in exchange for their support, or equity crowdfunding campaigns, where
investors receive shares of the company in exchange for funding.

Risk Management:

Risk management at VAG involves identifying, assessing, mitigating, and monitoring risks that could
impact its business operations, financial performance, and reputation.

● Diversifying suppliers and sourcing strategies to mitigate supply chain risks.

● Implementing robust quality control measures and contingency plans to address operational risks.

● Hedging against currency or interest rate fluctuations to manage financial risks.

1
● Staying informed about changes in regulations and compliance requirements to mitigate regulatory risks.

● Investing in brand monitoring and crisis management capabilities to mitigate brand and reputation risks.

● Developing strategic partnerships or alliances to mitigate strategic risks and capitalize on opportunities.

By implementing a comprehensive risk management framework, VAG can proactively identify and address
potential threats while capitalizing on opportunities to achieve its business objectives and sustain long-term
success in the dynamic fashion industry.

1
COST BREAKDOWN

COST OF RUNNING OPERATIONS:

Category Monthly Cost Annual Cost

Manufacturing Costs $20,000 $240,000

Inventory Costs $5,000 $60,000

Marketing and Advertising $10,000 $120,000

Sales and Distribution $8,000 $96,000

Research and Development $15,000 $180,000

Administrative Expenses $12,000 $144,000

Customer Support $6,000 $72,000

Technology and IT $7,000 $84,000

Utilities $3,000 $36,000

Taxes and Compliance $4,000 $48,000

Total Operating Costs $90,000 $1,080,000

ESTIMATED INCOME TO BE EXPECTED DURING 1st THREE YEARS OF THIS

START-UP:

Year Estimated Revenue ($)

Year 1 $500,000
Year 2 $1,200,000
Year 3 $2,500,000

2
 PAYMENT GATEWAYS AVAILABLE FOR SERVICE ACQUISITION:

Before selecting a payment gateway, VAG should consider factors such as transaction fees, security features,
ease of integration, customer support, and compatibility with its e-commerce platform. Additionally, it's
essential to ensure compliance with relevant regulations and standards, such as PCI DSS (Payment Card
Industry Data Security Standard), to protect customer payment data.

Therefore the payment options available to our various new clients are:-

 Cash payment
 Payment via Cheque
 Payment via Online payment portal such as mobile banking, UPI apps like Paytm,Google
Pay,Phonepe.
 Payment via POS (Point of Sale Machine)
 Payment via Bank Draft.
 Payment via Credit/Debit card
 Payment via Paypal or Wire transfer

2
 BIBLIOGRAPHY/REFERENCES

1. www.google.com
2. https://www.ibm.com/topics/cybersecurity
3. https://www.cisa.gov/topics/cybersecurity-best-practices
4. https://en.wikipedia.org/wiki/Cybersecurity_information_technology_list
5. https://en.wikipedia.org/wiki/Computer_security
6. www.craw.in/
7. https://www.cyberyaan.com/home/services
8. www.pingsafe.com
9. www.kyndryl.com
10. www.roadmap.sh/cyber-security/
11. https://www.eccouncil.org/train-certify/certified-ethical-hacker-ceh/
12. https://www.eccouncil.org/train-certify/computer-hacking-forensic-investigator- chfi/
13. https://www.offsec.com/courses/pen-200/
14. www.kali.org
15. canva

2
2