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Home interiors and beyond
www.betterhomeinteriors.in
HOME-MART
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About Home-Mart
Home-Mart is a one stop solution for all yourrequirements related to interiors, home design, furniture,
etc. The most unique proposition of the mart is availability
of a interior decorator for customer queries. Home-Mart
one of the biggest furniture showrooms in Vasai city withan area spread across sprawling area of 3500 sq ft.
Home Mart provides furniture for all needs
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1) Vision
What is your big vision?
To become most trusted shopping destination for all furniture requirements
What problem are you solving and for whom?
Most of the furniture shops dont have the facility of free interior decoratorconsultation at the stores. Home-Mart will solve by providing this service.
Also the location of Home-mart in Vasai is in the heart of massive residential
townships likeAgrawals Kaul City, Agrawal-Doshi complex, Rajhans Complex
in addition small residential complex.
Where do you want to be in the future?Down the line within three years to start manufacturing furniture for my store,
instead of outsourcing. To launch store in Boisar, as Tata has ventured for the
Nano city.
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2) Market Opportunity
How big is the market opportunity you are pursuing and how fast is itgrowing?
The location of Home-Mart is in the heart of massive residential complex in
Vasai. Some of the big complexes like Kauls city, Rajhans complex, in
addition to local builders constructions. Earlier the nearby area was under
green zone, but recently in 2009 this was changed to residential zone, so the
whole area is getting developed.
How established (or nascent) is the market?
With massive residential complexes, most of the nuclear families are shifting
in these locations, as Mumbai is unaffordable, most of the families are shifting
to Vasai.
Do you have a credible claim on being one of the top two or three players in
the market?
In the initial phase of first two years, Home-Mart will establish itself, to
become the leading furniture shop.
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3) Defining the Customer
Who are your existing customers?The existing customers are the families who are staying in this area. The
location is already surrounded with 20 residential complexes, which will form
the existing customers base.
Who is your target customer?The target customer will be newly shifted families, who are looking to
decorate their homes. Newly wed couples, who have recently brought a home
and what to decorate their homes.
Who actually writes you the check, who is the decision maker?The key decision maker is the wife/mother who decides what to buy, the
payments can either come from her or her husband. Sometimes children can
also become decision-maker incase have to buy bed/study tables.
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4) Value Proposition
What is your value proposition to the customer?
The customer will get spot consultation from the interior designer in additionto furniture selection and a library of home designer manuals/books
What kind of ROI can your customer expect by using your product/service?
Our customers can return to the store for future consultation and also avail
membership of our library.
What pain are you eliminating?
According to our experience, most often to buy furniture's the customer hardlyconsults an interior designer. The reason behind this is searching a good
interior designer, payment to the interior decorator, invest time for meeting,
etc. We are offering all the services, without any charges, so it relives the
customer.
Is your product a luxury, a nice-to-have, or a need-to-have?
The products are nice-to-have, as everybody requires bed to sleep, kitchenelements, drawing room sofa sets, etc
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5) Selling Process
What does the sales process look like, how long is the sales cycle?Home-Mart will feature home interiors related products like furniture, kitchen
modules, etc. Most of the products will be outsourced and will be on a credit
period of 60 days. At the store when the customer comes to see the
products, he can either check the products else can also avail free
consultation of interior decorator. Post this depending upon the requirement,
he can choose the products. This usually takes a couple of visits as thecustomer also checks the products from competitors stores and compares.
How will you reach the target customer?
The marketing activities will include hoardings, leaflet distribution, PR
activities, tie-ups with upcoming townships and advertising with local
newspapers.
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6) Selling Process
What is your sales, marketing and distribution strategy? Sales strategy : The strategy will try to explore tie-ups with new interior
designers. Commission to interior designers
Marketing strategy: Initial phase of six months more focus on OOH
advertising. Subsequently shifting focus to print advertising.
Distribution strategy: Tie-ups with third party for delivery andprocurement of the products. Also identifying outsourcing partners and
negotiating for credit period.
What is the current sales pipeline?
Since the sales will only take place post launch of the store. We have
identified interior designers in the area for tie-ups. Also we have started
exploring talks with new housing complexes.
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7) Acquiring Customers
What is your cost to acquire a customer?Marketing investment/number of footfall per month = cost per customer
How will this acquisition cost change over time and why?
Reducing costs on marketing will change the cost per customer. Also focusingmore on tie-ups with interior designers will increase more footfall with less
investment.
What is the lifetime value of a customer?
Home furniture's are purchased by customers mostly every 6 to 8 years, wewill offer to buy the old furniture at less cost based on the valuations, provided
the customer buys the new furniture from Home-Mart. For Home-mart
customers, they can consult for any new interiors free of cost.
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8) Management Team
Who is your management team, what is their experience?Samson Gomes: B. Arch and proprietor of Samson Gomes Associates.
The firm has been managing various projects in Thane and Mumbai for
last three years. Previously project manager with ELM Designs, worked
on interiors for Prakash Mehra, designed and executed Suede Lounge.
Moses Gomes: Partner Identity Brand Consultants, which is into website
designing and development for last one year. Have been working onbrand management/marketing and public relation campaigns for various
clients like Hinduja Hospital, Idea, Novartis, The Loot stores, etc
What pieces are missing and what is the plan for filling them?
The management hopes to induct a financial advisor in the management
team to guide for financial matters. The management will also hire astore manager with atleast 3 to 4 years experience in managing stores.
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9) Revenue Model
What is your revenue model?
Third party payments after 60 days
Customer payments will be on spot.
For housing townships tie-ups, 50% payment within 30 days of
completion of the project. For each references the interior designer will earn 5% of the total
purchase value, within 7 working days and post complete payment.
What is required to become profitable?
Increase footfall
More tie-ups with interior designers Tip-ups with housing complexes.
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10) Stage of Development
What is your stage of development? Technology/product? Identified the location
Identified third party outsource for furniture and products
Identified interior designers
Identified developers
What has been the progress to date (make reality and future clear)?Conducting survey to gauge the acceptability of such store in vasai.
What are your future milestones?
To launch Home-Mart in Boisar which is developing into a mega city for
middle class.
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11) Fund Raising Plans
What funds have already been raised? How much money are you raising andat what valuation?
To launch this store and keep it operational for 12 months the management
requires 1.35 cr. The management has been able to raise 20 laks from the
initial sale of a commercial property and savings. The management plans to
further raise 15 laks from bank loans and family.
How will the money be spent? How long will it last and where will the
company "be" on its milestones progress at that time?
Major part of the investment is required for third party outsourcing. The
investment will be helpful to sustain the company for 18 months. In 18 months
time the company would have break-even post recovering the investments
and would be registering profits.
How much additional funding do you anticipate raising & when?
The company not require addition funding as the company would be
registering profits.
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12) Competition
Who is your existing & likely competition?1. Home art
2. Innovative furniture
3. Inspire
Who is adjacent to you (in the market) that could enter your market (and
compete) or could be a co-opted partner?The company will try to co-partner with Home Town, as that will help to garner
goodwill of the company.
What are their strengths/weaknesses? Why are you different?
Home Town is located at just one location, and the customers have to travel
all the way to Vikroli to purchase. With the launch of addition location thewestern and Thane customers can avail those facilities over here.
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13) Partnerships
Who are your key distribution and technology partners (current & future)?The main partners will be interior designers, who can help the store. Other
partners can be estate agents and they have the knowledge of new people
getting relocated. And the third partners will be the new developers, and they
can suggest the store for all home related purchases.
How dependent are you on these partners?
The company will be more dependent on marketing and less on the partners
as they can help to achieve targets. The company will be only 305 dependent
on the partners.
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HOME-MART, Opp. IDBI Bank, New
Barampur, Vasai Rd. (W). PIN 401202Tel +91 98339 61636
Email: [email protected]
Thank You