Entrepreneurship Project

C4-22 Batch
Group 13
Team Member Roll no.
Kamal Singh Airy DM22B028
Goutham Srinivasan DM22B022
Divya Naik DM22B018
Manish Kumar DM22B037
Chaurasiya
Ankur Pal DM22B010
BUSINESS PLAN CONTENTS
TEMPLATE 1. Company and Brand Name, Logo Tagline
2. Team
3. Vision & Mission
4. Elevator Pitch
5. Business Purpose - Key problem and problem holders
6. Solution idea - Product/Service /Prototype/MVP /
Validation
7. Trends /Environment Analysis – Macro/Micro (PESTEL,
Porters Five Forces, Comp Analysis, SWOT)
8. Target Market & Market Size - TAM–SAM–SOM /Market
Size
9. USP – why should someone buy from you?
10.Marketing and sales plan
11.Operational Plan
12.Financial Plan, Fund raising plan & Usage
13.Risk Analysis
14.Annexures – Industry/Customer Interviews/lean canvas
Team: Our team consist of 5 people

INVESTORS:
1. Kunal Shah - Kunal Shah is an active angel investor, founder of CRED and previously founded FreeCharge. CRED is a members-
only credit card bill payment rewards platform that incentives and rewards members for clearing their bills on time. Notable
investments: Unacademy, Razorpay, Slice, Mensa, Spinny.

2. Rajan Anandan - Rajan Anandan is Managing Director at Sequoia Capital, Vice President of India and SEA at Google, and
Managing Director of Microsoft India at Microsoft. Notable investments: WebEngage, Instamojo, Dunzo, Rapido.

Why we are right team: Our team is uniquely positioned to launch a successful smartwatch startup. With expertise in technology,
design and marketing coupled with a passion for innovation, we prioritize quality and customer satisfaction. Our team excels in
transparent communication, ensuring all stakeholders are kept informed throughout the smartwatch development process. We thrive
in adapting to challenges, leveraging our collective experience to overcome obstacles efficiently and effectively. We are committed to
continuous innovation, ensuring our smartwatch evolves alongside users' needs, while also prioritizing value creation for our investors,
partners, and customers.
Genesis of the Idea

Describe the process of arriving at the idea.

Right now, too much company in the market which

are selling so called smartwatches in budget
segment, they didn’t give proper information. So,
we thought this is the best chance to so our actual
product in the market which gives proper readings.
 Vision & Mission

Launch proper Smartwatch in Budget segment

Company: Fit-mass
Mission: To make middle class people fitness freak.
Vision: To create the most effective smartwatch which gives
proper results in all health tracking system and also provide a
proper smartwatch(not a gimmicky product like other so called
smartwatch in budget segment) .
 Elevator Pitch
The Fit-mass smartwatch is your all-in-one companion for a
healthier, smarter lifestyle. With its sleek design, it effortlessly
blends fashion and function. Track your fitness goals, receive
notifications, and control your music—all from your wrist. Stay
connected with seamless compatibility to your phone and apps,
and enjoy the convenience of customizable watch faces. This is the
True Smartwatch comes with premium features and pocket
friendly prices. Elevate your daily routine with the Fit-mass
smartwatch.
 Problem Statement
Key Problem
When launching a new smartwatch brand, We face several key challenges. Building brand
recognition and awareness is crucial in a market dominated by established names.
Technical innovation is important to stand out and offer unique features. Seamless
compatibility with different operating systems and smooth integration with other devices
can drive customer satisfaction. Balancing aesthetics and functionality in design is vital for
appealing to consumers. Additionally, offering competitive battery life, finding the right
pricing strategy, and establishing strong distribution channels are essential for success.
Prioritizing user data security and privacy while navigating regulatory requirements are
also important for gaining customer trust and market acceptance.
 Solution/ Prototype / MVP
Describe your Solution

To tackle the challenges of launching a new smartwatch brand, focus on strategic marketing to
build brand awareness and recognition. Innovate by offering unique features and technologies
that differentiate your product. Ensure seamless compatibility with multiple operating
systems and devices to enhance user experience. Prioritize design aesthetics that balance
functionality and style to attract consumers. Optimize battery life for longer usage and
establish a competitive pricing strategy that appeals to different market segments. Build
strong relationships with retailers and create an efficient distribution network to reach
customers effectively. Prioritize user data security and privacy to build trust, and stay updated
on regulatory compliance to maintain market acceptance and avoid legal issues. By addressing
these key areas, you can set your new smartwatch brand up for success
 Solution/ Prototype / MVP
What is your value proposition to your client – What is so
unique/special about it?

Our smartwatch offers a seamless blend of cutting-edge technology and elegant design,
delivering an unparalleled user experience. What sets us apart is our focus on both style and
substance—our watches are crafted with premium materials and customizable aesthetics to
suit any personal taste. With advanced health and fitness tracking features, long-lasting
battery life, and seamless integration with a variety of devices and apps, our smartwatch
enhances your lifestyle. Plus, we prioritize your privacy and data security, ensuring your
information is safe. Experience the future of smartwatches with a brand that prioritizes your
needs and elevates your everyday life.
 Industry and Ecosystem Positioning
➢ Key Industry Trends
The smartwatch industry is experiencing several key trends that are shaping its future. A strong focus on health
and wellness features, such as ECG monitoring, blood oxygen level measurement, stress tracking, and sleep
analysis, is providing users with valuable insights into their well-being. Integration with smart home devices allows
users to control their connected devices from their wrist, enhancing convenience. Manufacturers are also
prioritizing longer battery life for extended usage. Customization options, including interchangeable bands and
collaboration with fashion brands, allow users to personalize their watches to match their style. Enhanced
connectivity options like standalone LTE capabilities enable users to stay connected without a smartphone.
Sustainability efforts are becoming more prominent, with eco-friendly materials being used in manufacturing and
packaging. Additionally, voice control and AI integration are becoming standard features, making interaction more
intuitive. Contactless payment options offer a convenient purchasing experience, while safety features like fall
detection and emergency SOS capabilities are gaining popularity, especially for older users. Finally, smartwatches
are expanding into gaming and entertainment options, broadening the range of features available to users.
 Industry and Ecosystem Positioning
➢ Key players in this Sector
In the Indian smartwatch market, several key players dominate different segments, from premium to mid-range to budget:
1. Premium Segment:
• Apple: Apple is a leading player in the premium segment with its Apple Watch series, known for its high-quality build, advanced features, and seamless
integration with iOS devices.
• Samsung: Samsung offers premium smartwatches such as the Galaxy Watch series, which provide a combination of luxury design, advanced health
tracking, and connectivity features.
2. Mid-Range Segment:
• Fitbit: Fitbit offers a range of smartwatches that are popular in the mid-range segment, providing fitness tracking, health monitoring, and connectivity at a
moderate price.
• Fossil: Fossil produces stylish smartwatches that appeal to users seeking a balance between design and functionality, with various models available in the
mid-range segment.
3. Budget Segment:
• Realme: Realme has gained popularity in the budget segment with its affordable smartwatches that offer essential features like fitness tracking and
notifications.
• Xiaomi: Xiaomi's Mi Band series and Redmi Watch are well-regarded in the budget segment for providing good value for money and essential features
such as activity tracking and notifications.
• boAt: boAt offers budget-friendly smartwatches with a focus on style and functionality, making them a popular choice for cost-conscious consumers.
 Industry and Ecosystem Positioning
➢ Environment Analysis
1. PESTEL Analysis:
• Political: The Indian government's policies on import duties, taxes, and regulations affect the smartwatch
industry. The emphasis on "Make in India" initiatives may influence manufacturing and sourcing decisions.
• Economic: India has a growing middle-class population with increasing disposable income, which fuels demand
for smartwatches. Economic fluctuations can impact consumer spending habits.
• Social: Rising health consciousness and fitness trends drive the demand for health and fitness tracking features
in smartwatches. The desire for connected and stylish devices also plays a role.
• Technological: Advancements in technology, such as AI integration and improved connectivity, are essential for
innovation in the industry. 5G and IoT adoption can further enhance smartwatch capabilities.
• Environmental: Growing awareness of environmental issues pushes companies to adopt sustainable practices in
manufacturing and packaging.
• Legal: Data privacy and security regulations impact how smartwatches handle user data. Intellectual property
rights and patent laws are also important for new entrants.
 Industry and Ecosystem Positioning
2. Porter's Five Forces Analysis:
• Threat of New Entrants: The smartwatch industry requires significant investment in R&D and
marketing, which can deter new entrants. Established brand presence and customer loyalty
also pose barriers to entry.
• Bargaining Power of Suppliers: Suppliers of critical components like microchips and sensors
hold some bargaining power, but there are multiple suppliers available.
• Bargaining Power of Buyers: Consumers have a variety of options at different price points,
giving them moderate bargaining power. They can switch to other brands easily if unsatisfied.
• Threat of Substitute Products: Fitness trackers, traditional watches, and smartphones with
fitness tracking features can serve as substitutes, posing a moderate threat.
• Rivalry Among Existing Competitors: The Indian smartwatch market is competitive, with both
international and domestic brands vying for market share. This rivalry drives innovation and
can lead to price wars.
 Industry and Ecosystem Positioning
3. Competition Analysis:
• Key Players: The Indian smartwatch market is dominated by brands like Apple, Samsung,
Fitbit, Realme, Xiaomi, and Fossil. Each brand targets different market segments, from
premium to budget.
• Product Differentiation: Brands differentiate their products through unique features such as
advanced health tracking, style and design, and integration with ecosystems.
• Market Share: International brands like Apple and Samsung have a strong presence in the
premium segment, while domestic brands like Realme and Xiaomi dominate the budget
segment.
• Customer Preferences: Consumers prioritize features such as health and fitness tracking,
connectivity, design, and affordability when choosing a smartwatch.
 PESTEL Analysis of Business Environment
POLITICAL ECONOMIC SOCIAL ( Behavior TECHNICAL (R&D, ENVIRONMENTAL LEGAL (relating to
(Govt. Policy/ (Growth, Inflation, changes, Buying Automation, (Ecological & laws, regulations,
Regulatory) interest rates etc.) patterns) Digitization) Environmental licensing )
changes)
FAVOUR Support for Growing middle- Increased health Rapid - Growing awareness Strengthening data
ABLE "Make in India" class population consciousness and advancements in of sustainability privacy laws can
initiatives that with increased fitness trends driving technology, AI leading to eco- build consumer trust
encourage local disposable income. demand for health- integration, and friendly practices in smartwatches.
manufacturing. tracking features. connectivity (e.g., and materials.
5G, IoT).

UNFAVO - Import duties Economic Varying levels of Keeping up with Environmental Compliance with
URABLE and tariffs on fluctuations may digital literacy across fast-paced regulations and data security
electronic goods affect consumer different regions can technological expectations may regulations may
can increase spending and limit market changes can be add pressure on pose challenges,
production costs demand for penetration. challenging for new manufacturing and particularly for new
and prices. smartwatches. entrants. disposal. brands.

6
 Competition Analysis
Competitor 1 Competitor 2 Competitor 3 You
Premium segment with Mid-range segment with Budget segment with Targeting all segments
Target Market / high market share. moderate market share. significant market with growing market
Market Share share. share.

Strong brand recognition - Balanced features and - Competitive pricing. - Innovative features and
and customer loyalty. affordability. - Large distribution stylish design.
Strength Advanced technology and - Wide range of models network. - Focus on health and
seamless integration with catering to different fitness tracking.
devices. needs.
High price point may limit - Less advanced technology Lower quality materials Relatively new brand with
market reach. compared to premium compared to premium limited brand recognition.
Weakness brands. brands. - Smaller distribution
network.

High Moderate Low Competitive across all

segments.
Price Point
 Target Market and Market Size
Our smartwatch's target market consists of tech-savvy consumers who prioritize connectivity,
health and fitness tracking, and style. This includes:
• Young professionals: Individuals who value productivity and convenience and appreciate
features like notifications, music control, and health tracking.
• Fitness enthusiasts: Those who want to track their workouts, monitor their health metrics,
and integrate their smartwatch with other fitness apps and devices.
• Style-conscious consumers: People who seek a blend of fashion and function, valuing
customizable watch faces and interchangeable bands.
• Early adopters: Individuals who enjoy staying up-to-date with the latest technology trends
and are willing to invest in innovative products.
 Who are the early adopters? Why will they pay?

•Early Adopters: Your smartwatch will attract early adopters who

value cutting-edge technology and innovative features. They are often
first to try new products and enjoy being ahead of trends.

•Willingness to Pay: Early adopters are willing to pay a premium for a

smartwatch that offers unique features and capabilities. They
appreciate the seamless integration with other devices and services,
which enhances their lifestyle. Additionally, they value quality and
design, making them more likely to invest in a smartwatch that meets
their expectations in both functionality and aesthetics.
 Marketing Plan

• Go to Market Strategy
How do you plan to reach out and sell to early adopters / customers?
Reaching and Selling to Early Adopters:
•Digital Marketing: Utilize targeted online ads and social media campaigns to reach tech-
savvy and style-conscious consumers. Use influencers and testimonials to build credibility and
showcase product features.
•Events and Launches: Organize product launches and events to generate buzz and
excitement among early adopters. Provide exclusive access and promotions for early buyers.
•Content Marketing: Create informative and engaging content such as blog posts, videos, and
tutorials that highlight the unique features and benefits of your smartwatch.
 Marketing Plan

How and where will you sell your products and/or services?
Selling Products and Services:
•Online Channels: Sell your smartwatches through your own website and
popular e-commerce platforms to reach a wider audience.
•Retail Partnerships: Establish partnerships with key electronics and fashion
retailers to offer your product in physical stores.
•Direct-to-Consumer: Offer direct sales through pop-up stores and experiential
marketing events to connect with customers and gather feedback.
 Marketing Plan

How will you retain your customers?

Customer Retention:
•Exceptional Customer Service: Provide timely and helpful customer support
to build trust and loyalty.
•Software Updates: Regularly release updates that improve performance and
add new features, keeping your customers engaged.
•Customer Loyalty Programs: Offer loyalty programs such as discounts on
accessories or exclusive early access to new products.
 Marketing Plan

How will you keep your product competitive?

Keeping Your Product Competitive:
•Continuous Innovation: Invest in R&D to stay ahead of technological
advancements and industry trends.
•Market Research: Monitor competitors and customer feedback to identify
areas for improvement and new opportunities.
•Pricing Strategy: Offer competitive pricing and promotions to attract and retain
customers.
 Marketing Plan

What is your Sales Forecast and how did you arrive at it?
Sales Forecast and How It Was Derived:
•Sales Forecast: Forecast sales based on market research, including historical
data from similar products, current market trends, and expected growth rates.
Consider factors such as pricing, promotions, and target market size.
•How It Was Derived: The sales forecast was derived from a combination of
primary research (customer surveys, competitor analysis) and secondary
research (industry reports, market trends). Estimates of market size, share, and
potential growth were used to project future sales.
 Financial Plan
Pricing & Strategy:-
•Competitive Pricing: We Offer a competitive price point for our Fit-Mass
smartwatch to attract a broad range of consumers, particularly those interested
in health and fitness features.
•Value-Based Pricing: Price of our smartwatch based on the perceived value it
provides, such as advanced health tracking and seamless integration with other
devices.
•Promotions and Discounts: We implement promotional strategies like
introductory discounts and bundles to encourage initial sales and create a loyal
customer base.
 Financial Plan
Revenue Models:
•Product Sales: We generate revenue through direct sales of the Fit-Mass
smartwatch online and in retail stores.
•Subscription Services: Offer premium features or exclusive content through
subscription-based services from our Fit-mass app (available in play store &
Appstore) , generating recurring revenue.
•Accessories and Add-Ons: Provide additional revenue streams by selling
smartwatch bands, chargers, and other accessories.
 Financial Plan
Financial Statements
Income Statement Cash Flow Statement Balance Sheet
Item Amount (in INR)
Cash Flow Activities Amount (in INR) Amount (in
Revenue
Operating Activities Item INR)
Product Sales 4,00,00,000
Net Income 1,40,00,000 Assets
Subscriptions 80,00,000
Adjustments for Non-Cash Current Assets 1,60,00,000
Accessories 40,00,000 24,00,000
Items
Total Revenue 5,20,00,000 Non-Current Assets 1,20,00,000
Net Cash from Operating 1,64,00,000
Cost of Goods Sold
Total Assets 2,80,00,000
Production Costs 2,00,00,000 Investing Activities
Liabilities
Gross Profit 3,20,00,000 Purchase of Equipment (40,00,000)
Operating Expenses Current Liabilities 64,00,000
Net Cash from Investing (40,00,000)
Marketing and Sales 80,00,000 Long-Term Liabilities 40,00,000
Financing Activities
Research and
40,00,000 Proceeds from Debt 0 Total Liabilities 1,04,00,000
Development
Administrative Costs 60,00,000 Repayment of Debt (8,00,000) Equity
Total Operating Owner's Equity 1,76,00,000
1,80,00,000 Net Cash from Financing (8,00,000)
Expenses
Net Income 1,40,00,000 Net Increase in Cash 1,16,00,000 Total Liabilities and Equity 2,80,00,000
 Financial Plan

CVP Analysis
•Fixed Costs: 1,80,00,000 INR (operating expenses)
•Variable Costs: 10,500 INR per unit (production costs)
•Price per Unit: 14,000 INR
•Contribution Margin: Price per Unit - Variable Costs = 3,500 INR

Break Even Point

Break-Even Point=Fixed Costs/(Price per Unit−Variable Cost per Unit)
=18000,000/(14000-10500)=5142.8 units
 Financial Projections
Payback Period:
•Initial Investment: 1,60,00,000 INR
•Annual Cash Flow: 1,16,00,000 INR (from net cash flow)
•Payback Period:
Payback Period=Initial Investment /Annual Cash Flow
= (1,60,00,000 INR) / (1,16,00,000 INR )
=1.379 years ≈ 1.38 years
 Operational Plan
Key Resources:
• Human Resources: Skilled engineers, designers, and marketing professionals
are needed to innovate, design, and market your smartwatch effectively.
• Manufacturing Facilities: Partner with reliable manufacturers to produce
high-quality smartwatches on time and within budget.
• Technology: Access to cutting-edge technology for product development and
manufacturing, including software and hardware tools.
• Supply Chain: Efficient logistics and supply chain management to ensure
timely delivery of materials and finished products.
• Financial Resources: Adequate funding for R&D, production, and marketing
activities
 Operational Plan

• Key Partners:
Manufacturers: We did Collaboration with trusted manufacturers such as Eastern Tech Solutions or Precision
Devices Pvt. Ltd. to produce our Fit-Mass smartwatch according to our required specifications. These partners offer
high-quality production capabilities and efficient supply chain management.

Health and Fitness Platforms: We did Integrate our smartwatch with popular health and fitness apps Wellness360
to provide added value to users. This platforms offer seamless tracking and data sharing for fitness and wellness
activities, enhancing the appeal of our product.

Marketing and PR Firms: We did collaborate with marketing agencies like CreativeWave PR or BrandFusion
Marketing to create impactful campaigns and promote our product effectively. These firms can help boost brand
visibility through digital and traditional media strategies.
 Operational Plan
Target & Key Milestones (For next 1-2 yrs)
Year 1:
• Q1: Launch Fit-Mass smartwatch with an initial marketing campaign to target early adopters and generate buzz.
• Q2: Establish partnerships with key retailers for product distribution and expand online sales channels.
• Q3: Gather customer feedback to make any necessary product improvements and release software updates.
• Q4: Expand your accessory line (e.g., bands, chargers) and introduce a subscription service for premium features.

Year 2:
• Q1: Expand distribution to new markets and increase your market share through targeted marketing campaigns.
• Q2: Launch a new version of your Fit-Mass smartwatch with enhanced features based on customer feedback.
• Q3: Continue building strategic partnerships, including collaborations with health and fitness platforms.
• Q4: Achieve profitability and establish the brand as a key player in the smartwatch market.
 Risk Analysis
1. Financial Risks:
Insufficient Funding
Cost Overruns
Revenue Uncertainty
2. Strategic Risks:
Market, Tech/Product, Regulatory,
Customer
3. Operational Risks:
Hiring and Retaining Talent
Infrastructure Issues
Quality Control
Risk Management Plan:
Financial:
Thorough financial planning and budgeting
Diversify funding sources
Implement cost control measures
Strategic:
Market research and competitive analysis
Invest in R&D
Stay compliant with regulations
Operational:
Effective recruitment and retention strategies
Invest in robust IT infrastructure
Regular review and update of operational procedures
 ASK
How much do you ask from the investor?
We are seeking $2 million in funding from investors to support the launch and growth of our
smartwatch brand.
How much stake do you offer in the company?
In exchange for the investment, we are offering a 20% equity stake in the company to investors.
Broad Usage of Funds:
The funds raised from investors will be utilized for several key purposes:
Product Development: $800,000
Marketing and Branding: $500,000
Distribution Channel Expansion: $400,000
Operational Expenses: $200,000
Compliance and Regulatory Requirements: $100,000

What is the strategy if this business goes sideways?

Handling failure in a startup involves accepting it, learning from mistakes, communicating
transparently, mitigating financial impact, supporting employees, staying resilient, and seeking
mentorship.