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Business Plan on Notes n Nibs Book Store

Priyanka Kaul PGP/SS/11-13/IIPM-A

Executive Summary
Notes n Nibs is the basic requirement or all especially for the office going people and students. With a growth in demand for stationary items, this book store will provide you with great service in fulfilling your basic requirements of book and stationary. The company will operate a 2,300 square foot area. The owners have secured this location through a three-year lease with an option for extending. An amount of Rs 7,00,000 of Rs 8,50,000 of the startup funds is selfarranged and the remaining capital will be obtained through ICICI Bank Commercial Loans.
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Objectives
Notes n Nibss objectives for the first year of operations are: Become the Best New Book Store by the local guide. Turn in profits from the first month of operations. Maintain a 67% gross margin.

Way to Success
Store design that will be both

visually attractive to customers, and designed for fast and efficient operations. Employee training to insure proper management of the book store. Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing the sales of high margin products such as stationary items.
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Aim
Notes n Nibs will make its best effort to create a unique place where customers can relax and find books and stationary items of their choice when required. We will be in the business of helping our customers by fulfilling their requirements by providing them piece of mind through great ambience, convenient location, friendly customer service, and products at convenience and of their choice. 5

Start up Summary
The required start-up assets of Rs 7,11,600 include: Operating capital in the total amount of Rs 3,35,615, which includes employees and owner's salaries of Rs 1,19,500 for the first two months and cash reserves for the first three months of operation. Start-up inventory of Rs 80,715 , which includes: Book (novels of different authors, general books,etc) Rs 50,900 Stationary items (pens, papers, geometric kit, charts, etc) Rs 45,400 Book racks, tables, pen stands, etc Rs 39,500 Retail supplies (dusting cloth, etc.) - Rs 9,200 Office supplies Rs1,435
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Start up Summary
Equipment for the total amount of Rs 2,95,850 : Book racks Rs 34,500 Furniture Rs 90,000 Storage hardware (Books, Novles,etc) Rs 18,600 Serving area equipment (charts, papers, etc) Rs 15000 Store equipment (cash register, security, ventilation, signage) Rs 68,750 Office equipment (PC, fax/printer, phone,file cabinets) Rs 18,000 Other miscellaneous expenses Rs 2,500

Location & Facilities


Notes n Nibs Book Shop will be located on the ground floor of the

commercial in City Centre, Banjara Hills. The floor plan will include a 200 square feet back office and a 2,300 square feet bookshop cum stationary, which will include book racks and stationary items. The space in the book store will be approximately distributed the following way--1,260 square feet (i.e., 55% of the total) for the seating area, 600 square feet (26%) for the production area, and the remaining 440 square feet (19%) for the customer service area. The commercially zoned premises have the necessary electricity hookups and will require only minor remodeling. The book shops open and clean interior design with modern wooden decor and will have a well qualified support staff. The clear window displays, through which passerby will be able to see customers enjoying their books, and outside electric signs will be aimed to grab the attention of the customer traffic.
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Products
Notes n Nibs will offer its customers

the best quality books. This will be achieved by keeping books published by best publishers and good quality stationary. The store layout, ie the marketing activities will be focused on maximizing the sales of higher margin products. Along with books , some magazines , will be sold in the book store. It will also offer its clients with free books and magazines for the promotion purpose of the store.

Product Description
The setup of Notes n Nibs will have variety of books according to categories like fiction, mystery, horror, etc and in the stationary part it would be classified according to rates and categories.
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Market Segmentation
This Book Shops will focus its

marketing activities on people specially school and collage going students. This shop will help the students in finding the right books of their choice. Our market research shows that these are discerning customers that gravitate towards better quality books. For us, this will provide a unique possibility for building a loyal client base.
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Industrial Analysis
In 1994, total sales of books were gone up

rapidly. The retail publishing industry is flourishing in the Hyderabad Market. Keeping all these factors in mind we had decided to open our book store for fulfilling the basic needs of the local people.

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Buying Patterns
There are no major reason for a customers to buy books

or stationary. Although, as stated before, books and stationary purchases is uniform across different income segments, Notes and Nibs will price its product offerings competitively. We strongly believe that selling books and stationary with a great service in a nice setting will help us build a strong base of loyal clients.

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Strategy and Implementation


Notes & Nibs marketing strategy will be focused at getting new customers, retaining the existing customers, getting customers to spend more and come back more often. Establishing a loyal Customer base is of a paramount importance since such customer core will not only generate most of the sales but also will provide favorable referrals.

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Competitive Edge
Note n Nibs will position itself as unique book shop where its patrons can not only find books and stationary of their choice but also spend their time in an ambient environment. Comfortable sofas and chairs and proper light will help the customers to relax and read.
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Sales Strategy
To speed up the customer service,

at least two employees will be servicing clients. While the other one will be taking care of the sales transaction. All sales data logged on the computerized point of sale terminal will be later analyzed for marketing purposes. In order to build up its client base, we will use banners and fliers and crosspromotions with other businesses in the community. At the same time, customer feedback programs will be used to make sure the customers are coming back buying books from the book store.

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Management
A professional manager (Rs 1,75,000 / yr) will be hired who will oversee all the book store operations. Two full-time publishing houses (Rs 1,25,000 / yr each) will be in charge of purchase of books. Four more parttime employees will be hired to fulfill the staffing needs. In the second and third year of operation one more part-time employee will be hired to handle the increased sales volume. The Professional Managers responsibilities will include managing staff ,ordering inventory, dealing with suppliers, enveloping a marketing strategy and perform other daily managerial duties.
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Financial Graph

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Financial Plan
Notes n Nibs will capitalize on the

strong demand for high-quality books. The owners have provided the company with sufficient start-up capital. With successful management aimed at establishing and growing a loyal customer base, the company will see its net worth doubling in two years. The Book Shop will maintain a healthy 65% gross margin, which combined with reasonable operating expenses, will provide enough cash to finance further growth.
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Thank You
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