Be an effective entrepreneur & (business model for a start up)

Entrepreneurships is living a few years of your life like most people won’t; so that you can spend the rest of your life like most people can’t. So the point is - who does not want to be an entrepreneur?

So let us make each ca student sitting here today, the entrepreneurs of tomorrow. But how to be an entrepreneur? For that you need to ask yourself few fundamental questions

1.      When?

2.      What?

3.      Why?

4.      Where?

5.      How?

let us answer all the above questions and pass the exam with exemption for being an effective entrepreneur. Because, it is quite certain that any person with a good amount of green paper in his pocket cannot be an entrepreneur. But a person with the answer of all the above questions and the green paper can be an effective entrepreneur.

v When:

Generally when the first thought to become an entrepreneur enlightens anybody’s mind, the second thought that follows is the question to the self that WHEN will be the right time?

if you want to be an effective entrepreneur, don’t spend so much time trying to choose a perfect opportunity, that u miss the right opportunity. Because if opportunity doesn’t knock, an entrepreneur builds up a door himself. And Waiting for a perfect time is never as smart as making progress. Because, Building a business is easier said than done. You have to be all in, all the time. No one is going to build your business for you. Exceptional results require exceptional efforts. Further, once you decide to become an entrepreneur there is no such thing as work-life balance. For entrepreneurs, work is life and life is work as entrepreneurship is not a part time job nor is it a full time job, it is a lifestyle.

Lastly, “To every entrepreneur: if you want to do it, do it now. If you don’t, you’re going to regret it.

v What:

So….the entrepreneurs of tomorrow…ask yourself the second fundamental question as an entrepreneur.

What is the first and the foremost thing you need for a startup………if we try to say in a single word “idea: a killer idea”

And practically speaking, finding a killer idea is like finding a needle in a haystack!!!

Sir Thomas Addison once said “To have a great idea, have a lot of them.”So finding a killer idea here calls for recognizing lucrative business ideas upon a meticulous evaluation of the entrepreneurial prospects. And the best source to get such a killer idea is through detailed & comprehensive market research based on credentials, current market scenario and prospective era. The following factors are to be considered for such market research:

•         Research on the field

•         Internet based research

•         Collection and elaboration of local economic figures;

•         Feasibility

This market research gives us numerous outcomes.

*image of bulb with options*

Considering the current market scenario we can say that the few industries which show the great got bright future and scope of tremendous development are as follows:

1.      E-commerce

2.      Textile

3.      Gems & jewellery

4.      Pharmaceuticals

5.      Environmental consulting

6.      Tourism etc.

And many more, but taking into account the above emerging industries we have to wisely choose our field and the same must be tested on techno-fiscal, economic and authorized viewpoints. Because an entrepreneur knows the power of his idea and so programs it for success.

v Why:

But to choose from those options you need to ask yourself the second fundamental question why?

There is a great maxim which says “expect the unexpected, and whenever possible be the unexpected”

So now let us explore our idea and discuss as to why tourism industry is greater good for our start up.

Tourism today is a leisure activity of the masses and it scope has become truly immense. Tourists are mainly attracted by either the scenic beauty of its nature or by fascinating leisure, sports and adventure activities offered by the destination. India which is endowed with a treasure of beauty spots: - natural as well as man-made can boast of a healthy inflow of foreign and domestic tourists. Tourism industry holds a great potential to flourish in India provided its cultural and historical legacy is properly taken care of. The studies have revealed that there will be a shift in global trend of foreign tourist arrival from to emerging economies and this comes as an opportunity to India being one of the fastest developing nations.

Let us support this discussion by some facts and figures of the same which will further justify our selection of tourism industry.

1.      About 5.92% of the country’s GDP comes from tourism and it provides employment to over 9.24% of the country’s workforce.

2.      India is poised to emerge as the 2nd fastest growing (8.8%) tourism economy in the world over 2005-14 according to the world travel & tourism.

3.      According to world tourism organization estimates, India will lead in south Asia with 8.9 million arrivals by 2020.

4.      Tourism brings in large amounts of income accounting for 30% of the world's exports of services, and 6% of overall exports of goods and services.

5.      Various concession and incentives are provided in reference to the promotion of make in India, digital India and swachh Bharat to encourage tourism industry and attract investment .

Particular	Figure	Annual Growth Rate
No. of foreign tourist arrivals in India	6.29Million	8.9%
No. Of domestic tourist visits to all states/uts	850.86 million	13.8%

6.      After observing the above data we can be quite certain that tourism industry is one such industry that has developed by leaps and bounds and still under the booming condition. The tourism industry has a wide assortment and consists of various tourism units like:

·        Hotels ( one to five star deluxe)

·        Heritage hotel.

·        Motels.

·        Convention center.

·        Resorts.

·        Tented  accommodation

·        Tourism and hospitality training institutes.

·        Amusement park/ Water Park/theme Park.

·        Adventure sports.

·        Waysides amenities.

v Where:

·        Now we move on to  3rd  basic question. i.e Where?

·        Having the concept or a business plan is not enough, but also where the business would be set up plays a very significant role in the success of a business.

·        While we consider the location for our resort, we need to consider some important factors which sway its survival and success!

·        Tourist place

·        Cultural attraction

·        Std. of living of locality

·        Accessibility

·        Transportation facilities

·        Competitors

·        State government policy etc

Talking about state Government policy, how can we forget the recently introduced Gujarat’s Tourism Policy, 2015-20 to promote “Khushbu Gujarat Ki” for new and existing tourism units.

Capital investments shall include expenditure components as per guidelines of ministry of tourism of government of India but shall not include cost of land, working capital, pre-operative expenses, purchase of secondary machinery, interest capitalized, consumables stores, vehicles, furniture & crockery, cost of construction for flats, shops & offices etc. For sale/lease/rent.

Additional capital subsidy of 5% only for new tourism units

Ø  Set up within corporation limit of gandhinagar and also area falling within 20 kms of district of gandhinagar.

Ø  New tourism units at yatradhams i.e. Ambaji, dwarka, dakor, jungadh, somnath, palitana, etc .

Ø  New units at eco – tourism centers i.e. Nalsarovar, polo, dangs, jambughoda, etc.

Ø  The women entrepreneurs with minimum equity participation of 51% in new tourism unit will be entitled to additional 5% subsidy over and above.

interest subsidy

v

Registration fees and stamp duty concession

Ø  The eligible tourism units will get 100% reimbursement of registration fees and stamp duty on first transaction on sale/lease/transfer of land.

Ø  The reimbursement will be made after the commencement of commercial operations.

Exemption from luxury, entertainment tax and electricity duty

Ø  The eligible tourism units will be eligible to get exemption from luxury and entertainment tax for the period of 5 years from the commencement of commercial operations.

Ø  Only the new tourism units will be eligible to get exemption from paying electricity duty for the period of 5 years from the commencement of commercial operations.

Gujarat accounts for 6% of India’s GDP and the state domestic production (SDP) stands at around us $12 bn. Gujarat sends largest number of travelers to almost every corner of the world. But its strength to be host has not been fully utilized due to the lack of information highway. Gujarat tourism offers colorful experience to its travelers packed with pleasant surprises - endowed with forests and deserts, hills and plains, sea and lakes, tribal hinterlands and special interest destinations with a strong rail, road and air network. 

After taking in view the above factors for our start up, the location that can be favorable for our business would be Somnath, Gujarat.

                  Legal:

Constitution Segment :

Today, entrepreneurs are required not only to understand the day to day operation of their business but also the legal aspect of the same. It can be said that the actions of the entrepreneurs will determine whether the business become the subject of litigation. In this segment, we will be looking forward to the legal and regulatory framework and procedures to establish our resort from the eyes of an entrepreneur and being the students of CA, we will discuss this part in a little more comprehensive manner so that it helps in our practical life as well.

Essentially, there are 3 types of constitutions to start up business at such level.

1.  Sole Proprietorship:

Proprietorship is a simplest business form that is owned and operated by one natural person under his own name or any fictitious name and in which there is no legal distinction between the owner and the business. The fictitious name is simply a trade name and it does not create a legal entity separate from the sole proprietor owner. So if we say in lighter tone, we could say Proprietorship means “One Man Army”.

2.   Partnership Firm:

A partnership is a form of business organization or association of two or more persons up to a maximum of twenty, join together to undertake some form of business activity and agree to share the profit of the business. This business may be carried on by all or anyone of them acting for all.

They are governed by the partnership deed/agreement which may be written or oral. The written partnership agreement which is generally drafted on stamp paper of Rs. 500/- is more preferable as it guides in conduct of business and to avoid conflict among the partners.

Once we get the partnership deed is duly agreed upon and signed by all the partners, it is then notarized. The next step is Registration of firm. Until now, the procedure of registration of the firm was quite easy. However, since 12^th August, 2015, it has now become mandatory to have a PAN card and Professional Tax registration of the firm for it registration.

Now, let us look forward to the details and documents required to register a firm which are as follows:

1.      Copy of address proof of a partnership firm and of individually of all the partners.

2.      As said earlier, copy of PAN card of partnership firm along with the proof of registration under professional tax.

3.      Copy of notarized partnership deed.

Other details such as the email id, contact no., 3 passport size photographs of all the partners, authority letter along with Rs. 100/- stamp paper are also required to be provided.

Pocedure :

We also have the option of registering the firm online available at www.commercialtax.gujarat.gov.in. We simply need to download and fill up the details in the template for the registration, which is easily available in E – service option. The said template is then uploaded along with mentioned documents, consequent to which an acknowledgement will be generated. At last all uploaded document and receipt of online registration along with manual application should be submitted to the applicable jurisdiction and the firm would get registered in 10 -15 days.

3.   Limited Liability partner:

There is also a new emerged concept of LLP i.e. Limited Liability Partnership. Limited Liability Partnerships (LLPs) are commercial vehicles which combine the features of partnership and company form of business.

To form LLP there are some basic conditions which must be followed i.e. there must be minimum two partners and each partner should have Designated Partner Identification Number (i.e. DPIN), one designated partner should have digital signature and one partner must be resident in India. In order to get DPIN one has to make an application online at www.llp.gov.in in Form 7 which has to be submitted to Ministry of Corporate Affairs along with certified copies of address proof and Identity proof of the applicant.

Next step is registration of LLP… To register the LLP firstly a name must be selected, for which the partners should provide 6 names in priority order in Form 1 at www.llp.gov.in for approval along with the main object clause. 

Secondly, Form 2 is to be filled for Statement by partners, Form 3 which is regarding the information of LLP agreement, Form 4 & Form 9 i.e. notice of the concern & Appointment of designated partner with their personal details, Proof of address of Registered Office are the various documents that are required for incorporation of the LLP .

Lastly all the required forms are to be uploaded on the above mentioned website and payment of registration fees is to be made. The Issuing authority will issue the certificate of the incorporation after proper verification and send a soft copy via email and physical certificate is send by post.

Company :

The last form of constitution is the company which is an association or collection of individuals, whether natural persons, legal persons, or a mixture of both.

Now let us look forward into the procedure of the incorporation of the company. The company can be incorporated in 2 ways i.e. established method and the other one is recently introduced method. As both are currently used in practice, we need to understand each of them.

Let us discuss the established method first.

Obtain Digital Signatures

In that, the person desiring to incorporate the company have to first Obtain digital signature certificate online from the private agencies authorized by ministry of corporate affairs.

Obtain Director Identification Number

The following step after this would be to obtain director’s identification number (DIN) online from MCA portal by applying in Form DIR-3 to the Central Government in such form and manner and along with such fees as may be prescribed.

INC 29 Procedures

Now, let us talk about the recently introduced method which consists of single form i.e. INC-29. This five-in-one form was introduced by MCA in May 2015. This significantly reduces interaction with the authorities through the clubbing of forms for DIN allotment, name reservation, incorporation, PAN & TAN, as well as ESIC registration, however, it is still required to submit supporting documents and information on the MCA’s e-biz (ebiz.gov.in) portal.

Further let us discuss the Steps for the same:

·        Step 1: - Obtain Digital Signature Certificate

Obtain Digital Signature Certificate from MCA-authorized agency.

·        Step 2 : -  Preparing INC-29

The INC 29 includes the DIN Application, in which up to 3 directors can apply for the DIN; the rest, if any, may do so separately through DIR-12 form.

Further the attachments to INC 29 includes following:

1.      The MOA and AOA of the company

2.      For Registered Office Verification and For Appointment Letters and Declarations, the required attachments are:

a.      Letters of appointment of directors, CEO, managers

b.      Declaration by first director in INC-9

c.       Declaration by appointee director and managing director in Form DIR-2.

·        Step 3 : -  Filing  INC-29

After preparing the form and attaching all the required documents, the main thing to be noted here in the new method is we have only one opportunity to resubmit the form in case of any discrepancy. And if the Registrar finds an error in the form on resubmission too, the form will be rejected completely.

·        Step 4 : -  Direction for payment of Stamp Duty

Once the form is filled, we will be directed to pay the fees and stamp duty to a payment gateway.

So based on our requirement we may choose the form of Ownership constitution and adhere to the legal requirements of the registration for the same as discussed by us.

Ø  Tax  Segment

The Legal Segment does not only consist of registration of business, but now the another major legal part starts that is the taxes and duties applicable to our business. Because, like it or not, it is compulsory yet a contribution to the government. Because being an entrepreneur we need to pay the tax and being the part of CA fraternity, we also need to make people pay the tax, and thus we must also have knowledge of the same.

So Let us take a practical example to understand the taxes and duties applicable to our resort

Whenever we visit any restaurant the final bill amount is always higher than the actual bill amount that we would have anticipated because we often forget to consider various tax and charges applicable, which always inflates the bill by 20-30%. So now imagine we consume the edibles worth Rs 1,000 and have to pay Rs………… and we all know that Feeling!!!!! :@

In practical life whenever we look at any bills of restaurant, we see 3 kinds of charges namely “service charge”, “service tax” and “VAT”. So let us first decode them one by one and see what exactly they are.

SERVICE CHARGE

Service Charge is a charge levied by restaurant for the service provided to customers with the pre condition that restaurant should be air conditioned. This is generally 5%-10% of the bill and the owner is free to charge whatever amount they want as service charge.

SERVICE TAX

As ours is a service sector, service tax plays a vital role. The service tax is applicable to all the assesses having turnover exceeding Rs. 10,00,000/-. But when the assesses cross the limit of 9,00,000 it has to mandatorily apply for registration. Considering service Tax is applicable to us let us discuss the procedure.

First of all we have to fill up the Form ST -1 - Application for the registration under service tax which is available ONLY online at www.aces,gov.in. after one day the ST - 2 i.e. Performa of registration certificate generated online and then it is to be filed along with following details and document and submitted to superintendent.

·        PAN CARD

·        KYC of promoters

·        Location Proof

·        BANK DETAILS

·        Constitutional document

·        AUTHORISATION BY PERSON FOR FILLING THE APPLICATION

·        BIN NO.

·        VAT

The important thing, you should be aware about is how service tax is calculated! In our Resort Industry Service tax is only applicable on 40% of the bill amount, and abatement is available for 60 %. As the service tax is around 14% + 0.5% at the moment, so the effective rate applicable would be 5.8% i.e. 14.5% X 40% on the bill inclusive of service charge.

Value Added Tax

VAT is Value added Tax collected by State Govt. VAT is only applicable to the food items which are prepared inside the restaurant, because they “added some value” and then hand it over to you. VAT is not applicable on final bill, but only subtotal of the food items consumed.

It is mainly divided into 2 parts such as Compulsory Registration (u/s. 21) or Voluntary Registration (u/s. 22).  

Compulsory Registration is applicable when the turnover exceeds Rs. 5, 00,000 with of taxable turnover of Rs 10,000. Here we have to pay refundable deposits of Rs. 10,000.

Voluntary Registration, as the name suggests here we can get registered voluntarily by paying Advance tax of Rs. 25,000 along with refundable deposits of Rs. 10,000.

Looking forward to the procedure for registration, we are required to fill the following form along with the following documents of proof wherever required:-

1.      Form 101 for obtaining application form for registration under the VAT Act.

2.      101 A which requires the Details of Additional Places of Business, Branches, Godown in the state of Gujarat

3.      In form 101 B a dealer required to provide the Details of Additional Places of Business, Branches, Go down outside the state of Gujarat along with the TIN Number.

4.      Information about name, address, etc. and specimen signature of the persons authorized to sign invoice, delivery challan, credit note, debit note, various forms or declarations has to be provided in Form 101 C.

5.      Directors and persons responsible for business has to fill and submit Form 101 D

6.      The information about the capacity of production in case of manufacturing has to be given in Form 101 E

7.      The Declaration/revised declaration regarding Manager or Managers of the Business has to be given in Form 106

Luxury Tax:

Coming on to luxury tax, it is applicable on stay charges (i.e. Room Rent) and is not applicable on food charges. Luxury tax is statutory in nature and is applied by the different states on the stay charges (i.e. per day Room Rent).

The registration process includes filing the required form along with the soft copy of following required documents to be uploaded online at www.cet.gujarat.gov.in.

·        Copy of License resort,

·        Copy of PAN Card,

·        Copy of Photo ID Proof

·        Copy of Tariff Card in case of Hotel

Food License

Since we are serving in Food Industry, we are required to get Food License compulsorily. Now let us look at the procedure for obtaining a license:

1.      Firstly, Application for License shall be made in FORM B to the concerned  authority

2.      The application shall be accompanied by a self attested declaration declaring adherence to the Food Safety & Standards Act and the guidelines on Hygiene and Sanitary Practices, along with the requisite documents and requisite license fee.

Udhyog Aadhaar

With the view to promote ease of doing business, the Ministry of MSME has come out with a one page Udhyog Aadhaar Memorandum, which can be filled now on by the micro, small and medium enterprises online. It is nothing but the changed form for SSI has changed to of Registration.

The proposed one page registration form which is available at www.udhyogaadhaar.gov.in would constitute a self declaration format under which the MSME will Self certified its:

So first let us see, what are the basic details and documents required to apply for

·        Copy of Aadhaar Card of Proprietor/ any Working Partner/ Director

·        Name of Proprietorship firm/ Partnership firm/ Company

·        Bank Details

·        Nature of Business i.e. Details of Business Activity

·        Business Place Address

·        Residential Place Address of Proprietor/ any Working Partner/ Director

Some of the Licenses required by the Hotel Under various act.

1.      Police License/ Registration.

2.      Registration under the pollution control Act.

3.      Registration under provident fund Act.

4.      Factory license for the laundry.

5.      Central Excise license for the bakery product.

6.      Eating house license.

7.      Bar Licenses.

8.      Copy Right license for Playing of music.

The legal judicial system is a main system that regulates almost every part of the society, including tourism and hospitality industry. Business organizations such as hotels, agencies and restaurants rely on common law when dealing with each other. Law also comes into play when businesses interact with customers through the provision of goods and services.

q Project Planning:

A project report is something we have generally heard while attaining a loan for a business venture. While in exclusivity, a project report for new business conducts a profound road map for effectual business venture. It discusses whether the business requires finance or not, the challenging risks, several problems and route, etc. Hence it becomes vital for every new business to prepare a project report, to acquaint them on forewarning issues.

So for a business startup like ours, we also need to prepare a detailed project Report for the business. Here is in depth project report of a resort we want to set up.

1.      About the project

First of all we give the summary of our Venture like Name of the resort, its Credit Rating category and the targeted market.

2.      Location advantages

After discussing the summary of the project, we will then discuss the expected advantages to our business due to its location. The data provided here in the presentation is a comprehensive compilation of all the aspects of the same. To brief it, we may cover the advantages of location being Somnath-Gujarat is one of the safest state, it has easily available transportation services, it has tourist places of heritage value, and the charm of Somnath temple and seashore would reign over the hearts of travelers.

The other major advantages are: the varied fairs festivals and cultural programmes which attracts tourists like a magnet and would attract a great amount of prospective customers for our resort as well.

The next is the film location, Somnath has many nearby places which delights the film makers. This attracts film units, script writers and directors from all over the world to come & shoot in our resort as well.

There are also various Incentives from state Government like exemption from luxury & Entertainment tax and also in the payment of electricity duty for initial few years under the new tourism policy, 2015-20 as discussed earlier

3.      Layout planning

The most important part of the project report is the layout of the business which describes in detail the complete blue print of our set up. This gives the idea of facilities provided by the entrepreneur and also its capacity and its expected capacity utilization.

Here we have given extensive layout of our resort. Let us go through the same in brief.

First of all we will describe the range of accommodation facilities provided by us i.e. Rooms, Suites, Villas etc, and then the other services provided by us such as Banquet Halls for social gatherings, Conference hall for commercial use, Restaurant and coffee shop. Here alongside we also describe the capacity and special amenities provided by us in each of the above services.

After that we describe other facilities provided in resort such as Travel desk, Pick up facility, Business center Currency exchange facility for overseas guests.

Further, we will highlight the special amenities of the resort like Cottage, Ayurveda Centre, Kids arena and board games, Disco Theque, Gymnasium, Swimming pool, Jacuzzi, spa, and steam sauna, Garden etc.

So this is the exhaustive layout plan of the whole of the resort.

The next is the Capacity Planning of the resort that describes the no. of units of each of type of rooms and other services.

1.      Capacity Utilization

The next is the expected utilization of resources in the initial four years.

There will be a high demand in peek season (Oct – Mar).

1.      Employment opportunities

We must also describe in the project report, the annual requirement of well trained, experienced and qualified personnel in the resort.

2.      Quality requirement, quality assurance and quality control plan

In service industry, Quality is of prime concern. And thus with the changing nature of consumer tastes and preferences, we must also take into consideration the following things

·        Focus on increasing personal needs;

·        More active travel participation; and so on

At present there are many resorts both big and as well as small and the demand is immense therefore, to cater to this outgrowing demand with full quality assurance.

q Funding:

“Everyone can tell you the risk. And entrepreneur can see the reward.”

“It’s almost always harder to raise capital than you thought it would be, and its always takes longer. So you have to plan for that.”

·        Initial investment

One needs money to make money. Finance is the lifeline of business. So, before starting the hotel, the owners should make sure that the financial requirements are well satisfied. Ideally, they should be self-equipped to start the operations but otherwise, bank loans are a good option to get things going. Normally, the owners have to arrange 30 percent of the necessary capital on their own while the rest can be taken from the banks. Financial planning for starting a business should be formulated by taking into consideration the following factors:-

o    Investment expenditure and value of the entire project

o    Methods of investment

o    Anticipated productivity

o    Money flows of the project report

o    Investment value evaluated in context of different points of merit

o    Estimated financial ranking

So estimating the initial investment of our resort would be something like this:

Particulars	Amount (Rs.)
Acquisition of land	Xxx
Construction of project	Xxx
Research	Xxx
Designing expenses	Xxx
Initial promotion	Xxx

·        Day to day funding:

A business firm requires finance not only to commence its operations, but also to continue its operations and for its expansion and growth. There must be continuous flow of funds in and out of business. Sound plans, efficient production and marketing are all dependent on smooth flow of finance. Hence, a financial plan needs to be prepared, which indicates the requirements of finance, sources for raising the finance and the application of funds. And to further run the business successfully the entrepreneur must value every penny.

Particulars	Amount (Rs.)
Inflow :
Income from restaurants & coffee shop	XXX
Income from room accommodation & banquet hall	XXX
Income from other services provided	XXX
Outflow :
Purchase of vegetables and beverages expenses	XXX
Room attendant wages	XXX
Lighting and heating	XXX
Delivery services expenses	XXX
Cleanliness expenses	XXX
Interest on finance	XXX
Advertisement expenses	XXX
guestroomamenities	XXX
Telephone expenses	XXX
Salaries to staff	XXX
Repairs and renovation	XXX
Power	XXX
Interior decoration	XXX
Working capital expenses	XXX
Energy and water expenses	XXX
Depreciation	XXX
Transportation expenses	XXX
Laundry expenses	XXX
Entertainment expenses	XXX
Administration and general expenses	XXX

q Operation:

ü  Operational Excellence Model

The 9 building blocks (operational excellence model )

1.      The customer segments :

-          It defines the different groups of people or organizations an enterprise aims to reach & serve.

-          Emphasis on targeting profitable customer.

Helps in identifying - which customers and users are you serving?

which jobs do they really want to get done?

2.      Value proposition :

-          It describes the bundle of products and services that create value for a specific customer segment.

-          It solves a customer problem or satisfies a customer needs

3.      Channels :

-          Describes how a company communicates with and reaches its customer segments to deliver a value proposition

-          Through cheerful hosts, personal touch, flexibility, communication.

4.      Customer relationships:

-          what relationships are you establishing with each segment?

-          Personal? Automated? Acquisitive? Retentive?

5.      Revenue streams :

-          Represents the cash a company generates from each customer segment.

what are customers really willing to pay for? How?

-          Are you generating transactional or recurring revenues?

-          How will your business make money

6.      Key resources :

-          These resources allow an enterprise to create and offer a value proposition, reach markets, maintain relationships with customer segments, and earn revenues

-          Key resources can be physical, financial, intellectual, or human.

-          Key resources can be owned or leased by the company or acquired from key partners

7.      Key activities :

-          Describes the most important things a company must do to make its business model work

-          Key resources required to create and offer a value proposition, reach markets, maintain customer relationships, and earn revenues

8.      Key partnerships :

-           describes the network of suppliers and partners that make the business model work

-          What suppliers and partners does my business need to work?

-          Why should you do a partnership

·        Obtain resources

·        Economies of scale

·        Reduce risk

9.      Cost structure :

-          Describes all costs incurred to operate a business model

-          What are the most important costs inherent in our business model?

-          Which key resources are most expensive?

-          Which key activities are most expensive?

ü  Marketing:

Marketing means process through which goods and services move from concept to customer. The travel and tourism industry is extremely competitive, and thus it also becomes important for hotel industry to establish and maintain a competitive advantage in their marketing efforts. Because now a days in such an emerging industry all that people wants is “Aur dikhao aur dikhao”.

A satisfied customer is the best business strategy of all.

Sky is the limit for marketing

Don’t sell your product sell your dreams- SteveJobs

It includes the co ordination of following two basic elements;

1.      Promotion - selection of distribution channel to reach to customers. It involves under given advertising media.

Online: online marketing is a form of marketing which uses internet to deliver promotional attributes to customers. Recently, e-marketing form is used such as website, e-mails, social media, web banner, mobile advertising etc.

Offline: offline marketing is an obvious choice for any business with local customer base. Physical media is used to raise awareness and drive leads or sales. It covers banners, reflects, local events, road shows, sponsorships, radio etc

2.      Process – process element include direct and indirect activities that add value at the customer interface. Process element of marketing takes into consideration such tasks to make customer interface smoother as clear instructions, easy booking, cancellation terms, etc.

ü  SWOT analysis:

Our resort sea way has following strengths:

Very good and peaceful location

Natural & cultural diversity

Ocean view location

Tourist attraction places

Economic rates   

Digitalization & innovation through technology

Now we may focus on resort’s weaknesses:

Far from the main city

Underdeveloped area   

Poor support of infrastructure

Poor transportation facilities

Our hotel’s opportunities are as follows:

Boom in tourism

Prominent support from government tourisms department

Increasing demand for high end accommodation

Increasing standard Of living

In our country people have religious mindsets.

You cannot judge paper pattern of ca exams. …………

Now we must focus on the threats for our resort:

Emerging competition 

Terrorist threats

Political conditions

After doing such SWOT analysis we are trying to convert our weaknesses into strength. And trying our best to reduce our threats as much as possible…

v Pitching your startup:

So friends, having answered all the fundamental questions viz. What we need to set up a startup? Why we chose booming tourism industry? Where should we establish our business? And we also answered in detail as to how to execute that one killer idea into a thriving endeavor. But only launching such a start up is not enough for its successful hit but what is equally important is the sustainability of the same. So here we brief out the conventional wisdom words for the pitching your start up after en suiting the whole set up process.

• Don’t spend too much time negotiating terms.

At the early-stages, terms are pretty generic so stay in range and you’ll be fine. Just be watchful of onerous terms.

• Listen to all feedback and continually improve.

You should always take feedbacks from the customers and take note of each one of them whether positive or negative. There will be valuable nuggets within those streams to gather and improve your business upon.

• Don’t oversell.

Don’t oversell yourself or your company. There is a difference between presenting with passion and selling too hard.

• Tell your story.

It’s about telling a story of momentum, vision and your team. You have to gain the trust of customers in your services and create a repo with them.

So the equation for your blockbuster start up goes something like this

A killer idea + regimented execution of idea + adherence to wisdom words to pitch the start up = flourishing start up.

Given this … formula nothing can stop you to be no. 1 resort.

Thank you.

NOTE:

["This Article written by not only me But it was done by a group . our team members are CA. Bhavin Mehta, Krupa Kotak, Radhika Nandnai, Akaksh Damani, Sonali Kamdar, Sonal pandya and Dave parth. We used several articles from google , lots of searching with different books and support each other and every one's sincere efforts to make it worth. "]