Business Plan Presentation

HS-304 : Organizational Management

Team Members

B16057 : Gaurav Kumar�

B16065 : Navneet Sharma

�B16069 : Prabhakar Prasad

�B16094 : Chirag Vashist

�B16116 : Neelotpal Datta

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Outline

The Problem

Solution Proposal

Wireframes

Costs and Incomes

Management

Growth

Future

Next Steps

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The Service : Stream ‘N Learn

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• Peer-to-peer online learning platform with a special focus on community bonding.
• 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.

Value Proposition Canvas

Gains

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Jobs

Pains

Gain Creators

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Pain Killers

Service

Ability to have multiple sources for single topic.

Online P2P learning service, with reskilling and certifications.

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Certifications on completing course.

Allow creators to teach without any involvement of platform.��Allow learners to gain advantage after completing course.

Creative tools that allow easy onboarding.

No certifications on completing course.

Free market of education.

Lots of courses/lectures with one time payments.

Asynchronous Feedback

Community , P2P network

Connectivity and Bandwith issues

Feel of Hands-on-training

Gamification and AI tools

Potential Customers :�Who will buy it? �

Initially, we plan to have two major customer groups :

1. Individuals looking to learn from their peers. This may include casual users learning a new language to high-school students appearing for competitive examinations.
2. Firms looking to have a platform for training/re-training their employees in skills. Once an individual has completed the specified course, he/she can be awarded a skill certificate.

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Competition Analysis

Supporting information

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1

How to attract customers?

• From the product point of view- we have ensured to target the pains and gains of the target customers
• But!! How to onboard and reach to the targets?
• To learn that, we analyse what other similar platforms have done and what the target audience feels?

How to attract customers? (continued..)

Sources: KPMG survey ; Lenny Rachitsky

Language and Casual Learning

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Reskilling & Certification

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Resources start the business?

• 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
• Meanwhile we aim to get into an incubation programme which will provide a supporting ecosystem for the growth 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)

Advice and Support

• As we intend to go for a incubation programme, we expect to get the required advice especially in the area of planning (as we don’t have much industry experience)
• We would require legal advice and plan to outsource it (consultants)

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PESTEL Analysis

Political

• 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’
• 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

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Economic

• Growing disposable income
• Ease of doing business: improved to 63rd
• Economic slowdown but no major impact on startups
• Lower price of real estate
• 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

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Social

• ~46% of Indian population in age group of 15-40
• Low quality of skills in workforce
• Increasing users of online learning techniques
• Preference to stay in home-town
• Preference of professional courses
• Large number of internet users

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Technological

• 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
• Strong IT sector
• R&D facilities for startups

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Environmental

• Pollution
• COVID
• Provision of Environmental taxes
• Opportunities for CSR activities in the environmental sector

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Legal

• 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
• Exemption from labor inspections for the first 3 years.
• Relatively less extreme rules
• Contracts
• Regulations and standards
• Employment law

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SWOT Analysis

SWOT Analysis

• Connections
• Expertise
• Less fixed cost
• Product
• USP
• Sufficient Team

Strengths

• Finances
• Remotely working
• Timeline
• Less professional experience

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Weaknesses

Opportunities

Threats

• Growing market
• Low internet cost
• Government Policy for Digitalization
• Demand due to pandemic

• Prominent Competitors
• Slower growth
• Educating consumers
• Economic & Political disturbances

Identifying Location

Location Preference

Strategy:

• Since we have a digitally approachable customer, the location of our business/office would not affect the target market greatly
• 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.

• Other Remarks:
• Bengaluru ranked 18th in the Global Startup Ecosystem list.

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Data Sources:

• https://www.thehindu.com/business/where-are-india-start-ups-located/article29400940.ece
• https://timesofindia.indiatimes.com/india/startups-bangalore-vs-gurgaon/articleshow/68149030.cms
• https://startupgenome.com/reports

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Costs and Incomes

MVP Costs

A time of 3 months will be required to complete MVP

Variable Costs

CAC = CPC*(1-OG%)/convertion rate =8*(1-10%) / 2%=360 ( src)

Operating Costs(2nd yr of functioning)

Business Model

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Potential business models :

1. Freemium/Upgrades : Free samples initially, pay for complete access.
2. Pay-per-module : Customers charged on usage/ number of modules.
3. Advertising Commission
4. 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.

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Revenue Model

Source of Income : Monthly Subscription based charges from users.

Pricing model :

• INR 500 for one month

The Platform

Creator

Viewer

Create Video

Use our tools

Limited views

Cross view limit

Use feedback and other tools

Video/Course cross predefined threshold

Get Paid

Pay

Pay

Pay

Free

Free

Casual Learning

The Platform

Employee/User

Company

Learn and test

Feedback and Stats

Get independent certificate

Pay

Pay

Free

Free

Receive real time feedback and stats

Reskilling and Certification

Content created by hired team

Management

Initial Equity Splitting

We have used Founder’s Pie Calculator to determine equity share for each founder( Ref click here)

Initial Organisation Structure

CEO

CMO

CTO

Developers

Product Designers

Marketing and Sales

CFO

Legal

Full time

Interns

Legend

Outsourced

Contractual/Interns

Full time employees

CPO

Explanation of roles

Virtual Org. , Freelancers, Outsourcing

Management Structure

CEO

CMO

CTO

Technical Manager

Content Quality Manager

Marketing Manager

Developers

Product Designers

Content Reviewers

Editors

Sales Team

CFO

Product Manager

Front End

Backend

Cloud

Business

Analysts

Legal

HR

Animators

Graphic Designers

Customer Support

Customer Satisfaction Manager

Legend

Employee

Outsourced

Independent

Accounting

CPO

Span of 4

Categorization of profit splitting

1. Low level management and employees
2. Interns/Freelancers

Top and High level Management

Board of Directors

Investors

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Categorization of profit splitting

CEO

CMO

CTO

Technical Manager

Content Quality Manager

Marketing Manager

Developers

Product Designers

Content Reviewers

Editors

Sales Team

CFO

Product Manager

Front End

Backend

Cloud

Business

Analysts

Legal

HR

Animators

Graphic Designers

Customer Support

Customer Satisfaction Manager

Legend

Salary+Share

Salary only

Shares only

Accounting

CPO

Investors

Profit splitting

1. Salary of employees are an expense which will be beared by company irrespective of overall profits or losses.
2. For first few years company will be in net loss so no dividend will be given on the shares.
3. When PAT is positive ( Profits after Tax ) then the percentage between giving dividend on basis of equity share and reinvestment in company will be decided.

Detecting Reason for Loss

1. As the structure we have is functional ,there is a clear hierarchy which exists for chain of command and clear responsibilities
2. Taking example that there was some bug in cloud infra due to there was a down time on website.
3. Technical manager will blame the cloud SDE for this but take responsibility when conveying to CTO.
4. CTO will report to CEO and take responsibility as he is incharge of technical side.
5. Action - the SDE may be penalised in terms of salary which will act 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.
6. The company will bear the loss (investors money )

Growth

Trends

Trends

Growth

• To estimate growth, we are referring to similar companies in India and Abroad
• Companies like Udemy have customer base in 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)

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Customer base : Interpolation

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

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Source�Extra information : Coursera started operations in 2012

Revenue

The revenue will depend upon 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

The number of users who become customer is approximated to be 2%, by comparing to a source.

Break Even Point(acc to 2nd yr costs)

Revenue per customer = 2880/yr

Let of no. be Q

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For Breakeven

FC + VC*Q = R*Q

Q = FC/(R-VC)

Q= 10000 paying customers

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According to our customer 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 that we make no profits for the first two years
• We may tentatively start making profit from the third year.

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.

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• [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

Source of images

Any Questions?