Business Plan Presentation

HS-304 : Organizational Management

Team Members:
➔ Shikha Chaudhary
➔ Parth Aggarwal
➔ Anjali Deep
➔ Vaibhav Mongia
➔ Aman Maheshwari

Submitted to- Dr. Saumya Dixit

 • The Problem

• Solution Proposal

• Wireframes

Outline • Costs and Incomes

• Management

• Growth

• Future

• Next Steps
 Service : Learn & Grow
➔ Peer-to-peer online learning platform with a special focus on community bonding.

➔ Anyone can Upload quality content related to education and it will be reviewed by our team.

➔ Inspired by the success of third-party creation platforms like Youtube, Instagram and Tik-tok, where
platform does not produce content of its own, but provides tools for quick and hassle-free content
creation.

➔ Peer-to-peer educational platforms have proven to be successful in the past, including Stackoverflow
and Github.

➔ Language and casual learning has potential to grow in India with limited players.

➔ Reskilling and certifications to be used by firms to train employees and search for potential employees.
Business Idea
Value Proposition Canvas

Gain Creators Gains

Service Lots of
Ability to have multiple sources courses/lectures
for single topic. with one time Jobs
payments.
Free market of education.
Online P2P learning Allow creators to
Gamification and AI tools Feel of Hands-on-
service, with teach without any
training
reskilling and involvement of
certifications. platform.

Pains Pains Allow learners to

No certifications on gain advantage after
Creative tools that allow easy completing course. completing course.
onboarding. Asynchronous
Certifications on completing course. Feedback
Connectivity
Community , P2P network and Bandwith
issues
 Initially, we plan to have two major customer groups :
Potential • Individuals looking to learn from their peers. This
may include casual users learning a new language to
Customers : high-school students appearing for competitive
examinations.
Who will • Firms looking to have a platform for training/re-

buy it? training their employees in skills. Once an individual

has completed the specified course, he/she can be
awarded a skill certificate.
 Competition Analysis

Product
Benefits
Competitor 1
Competition Analysis
Competitor 2 Competitor 3 Competitor 4 Competitor 5 Our Product

Coursera SkillShare Twitch YouTube ByJu’sLearning

Platform Learn & Grow
Product

Online classes like Offline access to Community based live High quality High school Peer-to-peer
colleges. Ability to courses. Access to streaming tutorials and students in the learning service,
do specializations on lot of courses per streaming service. Indian subcontinent. with focus on
UVP technical courses. month. community
bonding.

Upto Rs 2000/per Rs 3000/per month Free/ Willful donations. Free/Willful Upto Rs 78000/per Rs 240/per month
course donations. course
Price

Build skills with Explore your Watch and chat now Enjoy video and India's Most Loved Learning through
courses, certificates, creativity with with millions of other music you love. Learning App. community.
and degrees online classes in fans from around the Growing through
from universities and illustration, world. communities.
Branding companies. photography,
design, and more

203 1456 To be launched

1086 2414 1341
Alexa score
 Supporting
Information
How to attract customers?

From the product But!! How to onboard To learn that, we

point of view- we and reach to the analyse what other
have ensured to targets? similar platforms have
target the pains and done and what the
gains of the target target audience feels?
customers
How to attract customers? (continued..)

Sources: KPMG survey ;

 • As explained later, an approximate amount of Rs. 2.55 lakhs
is required to build the MVP and register the business
• The co-founders intend to contribute the initial amount
which will be considered as ‘Commitment and Risk’ while
calculating equity distribution
Resources start • Meanwhile we aim to get into an incubation programme
which will provide a supporting ecosystem for the growth
the business? and also capital (which will be used to acquire assets like
hardwares)
• Once the MVP is created, (during the incubation stage) we
also intend to approach other Venture Capitalists to acquire
investments for scaling up (The operating cost for second
year of operations is estimated to be ~1.2 crores)
 As we intend to go for a
Advice and incubation programme, we
expect to get the required
We would require
legal advice and plan
advice especially in the area
Support of planning (as we don’t
have much industry
to outsource it
(consultants)
experience)
SWOT Analysis
● Connections
● Expertise ● Remotely Working
● Less fixed cost ● Timeline
● Product ● Less professional
● USP experience
● Sufficient Team

● Growing market
● Prominent Competitors
● Low internet cost
● Slower growth Product
● Government Policy for
Digitalization ● Economic & Political
disturbances
● Demand due to
pandemic
PESTEL
Analysis
 • Current government serving second term
• The government supports new startups and it is apart of
their manifesto. [Startup India]
• Government support for ‘Digital India’ and ‘Skill
Development’
•
Political
Plans to attract manufacturing industries [Demand for
skilled workforce!]
• State governments started startup departments-
incubators, labs, co-working space
• Regular conflicts and protests
• Red tape bureaucracy
 • Growing disposable income
• Ease of doing business: improved to 63rd
• Economic slowdown but no major impact on startups
• Lower price of real estate

Economic • Presence of (and increasing) prominent venture capitalists

and angel investors
• Unemployment Rate- ~50%
• India's per capita Income was recorded to be ₹ 1,25,408
 • ~46% of Indian population in age group of 15-40
• Low quality of skills in workforce
• Increasing users of online learning techniques
•
Social
Preference to stay in home-town
• Preference of professional courses
• Large number of internet users
 • Increase of LTE coverage and low cost
• ~277 million rural users and ~227 million urban users of
internet
• Projected growth in smartphone and PC users
Technological • Strong IT sector
• R&D facilities for startups
 • Pollution
• COVID
• Provision of Environmental taxes
Environmental • Opportunities for CSR activities in the environmental sector
 • Product placement and promotional content
• Personal Data Protection Bill, 2019 introduced recently
• The Copyright Act, 1957
• India is not a party to any convention on protection of
personal data
• Tax exemption for startups
Legal • Exemption from labor inspections for the first 3 years.
• Relatively less extreme rules
• Contracts
• Regulations and standards
• Employment law
Identifying
Location
 Strategy:
• Since we have a digitally approachable customer, the

Location location of our business/office would not affect the target

market greatly
•
Preference •
We evaluated locations in India only
After a initial shortlisting, based on human capital,
investors, infrastructure etc., Delhi (NCR) and Bengaluru
were found to be the two best locations for our business.
 Bengaluru vs NCR

Human Resource Bengaluru has better availability of human resource in the IT sector

Office Spaces Cost/Rent of office spaces in Bengaluru is lower

Infrastructure Though Bengaluru has a great infrastructure for IT sector, better infrastructure for
startups is coming up places like Gurgaon. Moreover, the transportation and logistics
facilities of NCR is better

Investors and Mentors The supporting ecosystem is larger in Bengaluru

(Supporting Ecosystem)

Environment The climate of Bangalore is less extreme and the political environment is better too.

● Other Remarks:
○ Bengaluru ranked 18th in the Global Startup Ecosystem list.
Costs and
Incomes
 Item Quantity*Price Amount
MVP Costs Developer Interns 5*30000 150000

Product designers on 2*25000 50000

contract

Sales Intern 2*15000 30000

Legal costs(company 20000 20000

•A time of 3 months will registration ,contracts)
be required to complete
MVP AWS Costs 5000 5000

Total 2.55 Lakhs

 Variable Costs
Item Cost

Customer Acquisition Cost 360 per user(one time)

AWS Cloud Cost 50/month per user

•CAC = Expense paid to content 100/month per user
CPC*(1-OG%)/convertion rate creator
= 8*(1-10%) / 2%=360 (src)
Item Costs(yearly)

Office Rent + internet 15 lakhs

AWS Cloud Cost(src) 10 lakhs Operating

Expense paid to content creator

Salary+contract pay
20 lakhs

50 lakhs
Costs
Legal 1 lakh

Accounting 0.5 lakhs

(2nd year of functioning)
Office supplies 0.5 lakhs

Publicity (ads,campaigns,banners) 20 lakhs

Total 1.18 Crores

 Potential business models :
• Premium/Upgrades : Free samples initially, pay for
complete access.
• Pay-per-module : Customers charged on usage/
number of modules.
Business • Advertising Commission

Model • Monthly Subscription fee

•We decided to go forward with 4th strategy, allowing
users to access unlimited number of courses for monthly
payments. This model has proven to be successful in case
of OTT platforms like Netflix and Amazon Prime.
This is also done because initial quality of courses on our
platform is expected to not be at par with our competitors.
Source of Income : Monthly
Subscription based charges from
users.

Revenue
Model
Pricing model :
• INR 240 for one month
 Get Paid Creator Casual Learning

Create Video Use our tools

Free Pay
Video/Course cross
The Platform
predefined threshold

Pay Pay
Free
Use feedback and other
Limited views Cross view limit
tools

Viewer
 Reskilling and Certification

Company

Pay Receive real time feedback and stats

Content created by
The Platform
hired team

Free Pay
Free
Learn and test Feedback and Stats Get independent certificate

Employee/User
Management
 Initial Equity
Splitting Factors Weights CEO CFO CTO CPO CMO

Idea 4 8 7 9 6 8

Business plan 6 9 5 6 6 8

Domain Expertise 7 9 8 10 8 10

Commitment & Risk 8 10 7 8 5 8

•We have used Founder’s Responsibilities 6 8 5 8 5 8
Pie Calculator to
determine equity share Weighted total 277 200 255 186 262
for each founder( Ref Equity percentage 100% 23.5% 16.9% 21.6% 15.8% 22.2%
click here)
 Initial Organisation Structure
CEO

Legal

CPO CTO CMO CFO

Product
Developers Marketing and Sales
Designers

Full Legend
Interns
time Outsourced

Contractual/Interns

Full time employees

 Explanation of roles

Reasons for Functional structure

CEO CTO

Oversee the whole Get an MVP platform made 1. Clarity in role so no confusion
operation and come up with by putting his time as well
new ideas to scale the as by acting as manager for and chaos as to who was
business. Recruit new others to get the product
made.
supposed to do the work
people and act as HR.
2. Specialisation in area of work
which will contribute to better
productivity to make MVP on
CFO CMO
time
Oversee operation of 3. Accountability for
Getting investments for the
convincing good teachers
startup and create
to put their courses on this success/failure to find if any
spending policy
platform and publicity for
liability exists in team
the platform
 Management Structure Legend
Employee
Outsourced
CEO
Independent
HR Legal

CPO CTO CMO

CFO

Content Quality Marketing Customer Accounting

Technical Manager Manager Manager Satisfaction Manager

Product
Manager
Customer
Support
Product
Developers
Designers Content Business
Reviewers Editors Sales Team
Analysts
Front Cloud
End
Backend Graphic
Animators Designers Span of 4
 Categorization of profit splitting

Top and High

Salary + Shares level Management

1. Low level
management
and
employees Salary Only Shares only
Board of Directors
2. Interns/ Investors
Freelancers
 Legend
Investors Categorization of profit splitting
Salary+Share
CEO
Salary only
HR Legal Shares only

CPO CTO CMO

CFO

Content Quality Marketing Customer Accounting

Technical Manager Manager Manager Satisfaction Manager

Product
Manager
Customer
Support
Product
Developers
Designers Content Business
Reviewers Editors Sales Team
Analysts
Front Cloud
End
Backend Graphic
Animators Designers
 SALARY OF EMPLOYEES FOR FIRST FEW YEARS WHEN PAT IS POSITIVE
ARE AN EXPENSE WHICH COMPANY WILL BE IN NET ( PROFITS AFTER TAX ) THEN
WILL BE BEARED BY LOSS SO NO DIVIDEND WILL THE PERCENTAGE
COMPANY IRRESPECTIVE OF BE GIVEN ON THE SHARES. BETWEEN GIVING DIVIDEND
OVERALL PROFITS OR ON BASIS OF EQUITY SHARE
LOSSES. AND REINVESTMENT IN
COMPANY WILL BE
DECIDED.

Profit splitting
 • As the structure we have is functional ,there is a clear hierarchy
which exists for chain of command and clear responsibilities
• Taking example that there was some bug in cloud infra due to
there was a down time on website.
• Technical manager will blame the cloud SDE for this but take
Detecting •
responsibility when conveying to CTO.
CTO will report to CEO and take responsibility as he is incharge of

Reason •
technical side.
Action - the SDE may be penalized in terms of salary which will act

for Loss as punishment so he/she doesn’t repeat the mistake in future.

Also it will be good to explain to the SDE the way things should
have been done. If the mistakes are repeated causing losses to the
company the asset will become a liability for the company and
should be fired. Also the technical manager should oversee more
often the employees under him.
• The company will bear the loss (investors money )
GROWTH
Trends
 To estimate growth, we are referring to similar
companies in India and Abroad

Companies like Udemy have customer base in

Growth countries with higher disposable income

But with the new features in our product, we

expect to have similar growth in India

The costs and numbers if referred, are scaled

down to their proportional values in our target
market(s)
Customer base
: Interpolation

•growth
Using the graph for the
of a comparable
firm (Coursera) in a similar
market sector (India), we
have approximated the
customer base.

•Extra
Source
information : Coursera
started operations in 2012
 Revenue

•upon
The revenue will depend
the number of
customers using the product,
hence it will also increase in
accordance.
The cost of our product is
fixed for each customer : Rs.
240/month
•become
The number of users who
customer is
approximated to be 2%, by
comparing to a source.
 Break Even
Point Fixed Costs Amount Variable Costs Amount
(acc to 2nd yr Office Rent + internet 15 lakhs Customer Acquisition 360 per user
costs) Cost

Salary+contract pay 50 lakhs AWS Cloud Cost 600 per user

•Revenue per customer = 2880/yr Legal 1 lakhs Expense paid to 1200 per user
•Let of no. be Q content creator

•For Breakeven Accounting 0.5 lakhs

•FC + VC*Q = R*Q
Office supplies 0.5 lakhs
•Q = FC/(R-VC)
•Q= 10000 paying customers Aws fixed 5 lakh

•According to our customer Total 72 lakhs Total 2160 per user

projection we will have 5000 paying
customers in 2 yrs so we won’t be
profitable in 2 yrs.
FUTURE
 Projected 3 Year Growth

From the previous slide, we can see We may tentatively start making
that we make no profits for the first profit from the third year.
two years
 Growth Strategy
● Development & Penetration-By introducing gamification approach to e-learning, we intend to
acquire the desired market share
● Community and Market development- As already explained in the customer acquisition strategy,
one of our main focus will be to build a community of learners, educators and experts and leverage
it for our growth . Such an approach will also lead us to new markets.

● Expand- We also intend to target ‘enterprise’ customers to reskill employees (such approach
has accelerated growth in companies like Udemy)
● Unscalable Hacks- In the initial period, we shall give importance to ‘things that don’t scale’
● Environment-The location of our business will provide support and opportunities for growth
Any Questions?