Development of business plans for innovative projects is a separate task for Intesco Research Group specialists. One of the examples of such a project is a business plan for TrioBar, a young company that deals with sales of modern water filters. Their uniqueness lies in an unusual business model, which includes several types of customers at the same time.
The company distinguished three directions of development for itself, which had to be reflected in a single business plan.
The project initiators want to bring the TrioBar Family product (home water filters) to the Russian market. The company’s plans for the first year include strengthening their positions in Moscow, while in the second and third years – entering markets in all large cities in Russia.
The company’s office with a single call-centre is located in Moscow. After accepting and processing calls coming from the single website from all regions, the call-centre distributes requests for delivery and installation of TrioBar among all regional accredited service companies that have the available guaranteed remainder on warehouses. The company has two key departments, the sales department and the service department.
The company obtains one-time returns from sales of the equipment and permanent returns from sales of expandable materials. In distinction to other companies, TrioBar will constantly monitor prompt replacement of expendable materials and deliver them to the customers’ doors. The income per a customer has to amount to 100 c.u. a year.
The company selects partners in each of internal advertising directions (fitness, business centres, educational establishments, exhibition centres, medical establishments) and rents out equipment to them for a long term. The indoor agencies locate equipment at sites they work with by providing them with unlimited sources of pure water, then they sell advertising on equipment monitors to large customers.
A part of money obtained from advertising placement on the equipment is allocated by indoor agencies to TrioBar company. The rent includes equipment, delivery, installation, downloading a commercial video to equipment displays, prompt replacement of expendable materials, guarantee.
In the given scheme the location site (for example, fitness centre) gets free water (economy in hundred thousands of rubles), indoor agencies receive new advertising carriers and the possibility to place advertising without their own investment. They only pay the rent out of the funds obtained from advertising sales on monitors. With such a scheme the most part of earnings stays within the agency, while the TrioBar company obtains permanent high returns for rent and maintenance, with a high and quick payback (within the period of half a year).
At the given moment there is an agreement with the company that deals with direct sales in 15 regions. They will sell TrioBar equipment with their own efforts.
The main plant in China has a simplified version of TrioBar, which is to be given to our customer for parallel development in regions.
In the given scheme the company will act as a warehouse, not participating in sales, dispatching new TrioBars with the minimum mark-up and earning on the volume.
Thus, the task of Intesco Research Group specialists was development of a business plan which justified cost effectiveness of the TrioBar project, as well as working out the development program.
Having thoroughly analyzed the business model, peculiarities of the company’s work and having held a market research, our specialists distinguished the following items of returns:
The estimation period was the project planning horizon of 3 years, the planning step was 1 quarter. The project initial rates were the following:
The financial estimates show that project implementation requires investments in the volume of 1.3 billion rubles. 440.9 million rubles of it is investors’ funds. The remainder is reinvested returns of the company.
Below you can see the main items of investment:
According to initiators, the project will be fully financed with the company’s own funds and the outside investor’s funds. The annual discount rate is the optimal rate of 16%, which is the maximum possible rate of returns for the existing variants.
Having conducted all the required calculations, specialists of Intesco Research Group obtained the following project effectiveness rates:
At the given moment the customer company has already started to implement the first stages of the project and is actively launching its product on markets of Moscow and Moscow Region.
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