Bharat Entrepreneurs

Dheeraj Gupta, an MBA in Finance from Symbiosis, Pune once went to meet his friend in London who owned a franchisee of Burger King (2nd largest hamburger fast food chain after McDonald’s). This triggered the idea of an Indianized version of burger. His first venture was Manali Foods, selling Indian sweets abroad. Unfortunately, it ran out of money shortly after its launch due to low margins and short shelf life of the product. After going through various criticism and pain he started Chaat Factory near Malad Station, Mumbai in 2001. With the support of his wife, also an MBA and 4 other employee, he started selling Vada Pao. Mumbai’s most selling snack caught people’s attention with cheap, health and hygienic version of street food. Chaat factory started showing positive results on day one. He then renamed it to Jumbo King. What started from one outlet has now entered into franchise model and boasts of 40 outlets in Mumbai, Surat, Ahmedabad, Baroda, Pune. Its target customers are mainly railways comuters.

Mantra
Rs. 6 vadao pao! Along with some innovative menu which Mumbaikar’s found tempting. How about “diet” vada pao? It also has supportive products (lassi, soft drinks etc.) to add to its sales and revenue.

Growth
Jumbo King holds 20% of market in Mumbai itself. With 40,000 customers every day, Dheeraj Gupta (Managing Director, Jumbo King Foods Pvt. Ltd.) says that the company earns about Rs 18 Crore as against Rs 6 Lakhs in the first year of its operations.

Future
If projections are to be believed then by 2008-2009 it will have an annual turnover of Rs 60 Crore. A highly ecstatic Dheeraj Gupta believes that there is a possibility of 5000 outlets in 8-9 Years. Moving beyond India, he expects this business to generate billion dollars with a capacity of 12-15,000 outlets all over the world.

Innovation. Hunger. Branding -> Dheeraj McDonald

What else can I say… i’m lovin’ it

Reference

• nenonline: Top start-ups of the week
• TiE Entrepreneurial Summit 2006

Popularity: 15%

Business Plan A Business Plan is a well thought out document describing why, how, and when the firm will accomplish economic viability which basically comes from sustained positive cash flows.

Target Audience for the Business Plan

1. VCs / Angel investors
2. Potential senior employees
3. Bankers
4. Attorneys and accountants
5. Leasing companies

Stages in the Growth of a Company

1. Idea / Concept
2. Prototype / Proof of the concept
3. Incubation / Product development
4. Organization building
5. Scale up (alliances, partnerships)
6. IPO: Initial Public Offer

Sources of Funds

1. Idea /Concept: Personal savings
2. Prototype: Loan from friends and relatives
3. Incubation: Angel / Early stage fund
4. Organization building: VC, first round
5. Scale up: Second round / growth/ scale up funds/ PE
6. IPO: Investment bankers, underwriters

What is the VC Looking For in a BP ?

1. Basic value proposition
2. Market size, segmentation, target customers, competitors
3. Entry barriers, IP protection, Unique Selling Points
4. Technology expertise and domain knowledge
5. Alliance and strategic partnerships
6. Promoters, Board of Directors, Top management (VPs)
7. Team (Project management, execution capabilities)
8. Scalability and growth potential
9. Marketing and selling plan: channels, distributors, customer acquisition costs
10. Milestones and deliverables (prototype, proof-of-concept, beta customers)
11. Requirement and application of funds: Setting offices, where, how many?
12. Equity/Capital structure, Financing policies (debt/equity ratio)
13. Revenue model: Sources of revenue (service/product mix)
14. Profitability, break even point, growth estimates (revenue, team size)
15. Risks and contingencies: De-risking/risk management/risk containment plan
16. Projected (pro-forma) financial statements
17. Exit strategy (IPO, equity buyer, strategic buyer, Merger & Acquisition)
18. Valuation and offer (equity price, number of shares)

Business Plan Sections Checklist

1. Executive summary
2. Introduction / Company overview
3. Concept / Proposition / Product description
4. Market opportunity
5. Competition survey
6. Development plan and milestones
7. Marketing plan
8. Team
9. Financials
10. Offer
11. Appendix

Popularity: 12%