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BUSINESS PLAN Quad Torc 2017

BUSINESS PLAN FOR QUAD BIKE INDUSTRY

1. Executive Summary Stealth Automobiles’ mission is “to offer quality quad bikes and quad bike parts to a growing market of motorcycling hobbyists.” For the beginner, Team Stealth offers excellent value in a first bike that will not bust the customer's budget. For the experienced biker, quality standard parts will cut the cost of repairs and modifications by 50% to 75%. Over next ten years, biking will develop an entirely new customer base among middle aged men, ages 40 to 65. Next year, bike sales for this age group were twice that of young men, ages 18 to 25. Delhi is a city of 1.8M residents with an average income of ₹50,000. Our stealth bike is largest quad bike organization in the city with over 8,000 members and increasing. In coming year, Stealth bike will organize events at different levels. Our member connection with the motorcycling community and the growing demand for quad bikes and quad bikes parts will make Stealth Bike one of the most popular shops in the city. There is a possibility for an exciting and profitable new business in Delhi, India. Team Stealth will to sell quad bikes to anyone who would have a need for efficient, around-town transportation. There is currently no business like this, in that area, which caters to this market. For students, there is a discount of 10% so that it is possible for a student to have their own mode of transportation during the school year. Quad Bikes have many positive advantages over cars: lower operating costs, fuel efficiency, and are less costly to maintain. It is also possible to insure these vehicles for around ₹5,00,000-₹7,00,000 per year. We will provide quad bikes ranging from 150cc to 800cc. We will sell quad bikes at lesser rates comparing to other quad bike companies but of better quality and strength. We have carefully analysed the market and created models which are suitable for every age group (of course, who can ride the quad bike). We will start selling around 500 quad bikes in first year. We expect the five years’ growth rate to be at least 15%.

Objectives 

Capture the majority of the Quad Bike business.  We will try to expand our business and become a top brand for selling Quad bikes.  We will try to capture most of the quad bike customers.

BUSINESS PLAN FOR QUAD BIKE INDUSTRY



Offer our customers a superior service, at a low price.  We will provide best of our services at free of cost or at a low price so that our customer will be satisfied.  Also, giving good service will render a long life to Quad Bike.



Establish a global network.  We will strive to achieve the objective of becoming a truly global company.

Keys to Success 

Customer referrals.  Our customers will refer our products to other people if we give them total satisfaction.

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Exceeding the customer's expectation for quality, timeliness and price.  We will sell high quality products at affordable prices and provide many free services.

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Providing products based on the feedback of customers.  We will see the reviews of the quad bikes of other companies and try to improves cons.  We will take feedbacks from customers about our Quad bikes and try to make user-friendly quad bike according to the requirements of customers.

BUSINESS PLAN FOR QUAD BIKE INDUSTRY

Organizational Structure Machineries and Materials Procurement Dept.

Finance Dept.

Logistics Support Dept.

Audit Dept. Board of Directors Innovation and Technology Dept.

Customer Support Dept

Human Resource Dept.

Business Expansion Management Dept.

BUSINESS PLAN FOR QUAD BIKE INDUSTRY

Board of Directors 1. Tuba Fatima - Machineries and Materials Procurement Dept. She will  primarily oversee daily operations, making sure production cycles are met from part design to fabrication.  deal with raw material and equipment logistics, people resources and administrative processes.

2. Mohammad Ubaid -Finance Dept. He will  Prepare financial statements, business activity reports, and forecasts.  Monitor financial details to ensure that legal requirements are met.  Supervise employees who do financial reporting and budgeting.

3. Bhupender Singh -Logistics Support Dept. He will  Strategically planning and managing logistics, warehouse, transportation and customer services.  Directing, optimizing and coordinating full order cycle.  Liaising and negotiating with suppliers, manufacturers, retailers and consumers.

4. Ilma Khan -Audit Dept. She will  Work on financial statement audit and accounting engagements  monitor progress of engagements in relation to budgets and due dates.  Supervise and review engagement planning, train and evaluate staff and senior accountants and supervisors.

5. Aleena Ariz -Innovation and Technology Dept. She will  Define and clarify new manufacturing technologies and strategies.

BUSINESS PLAN FOR QUAD BIKE INDUSTRY





Anticipate and collaborate with project stakeholders to enhance process safety, environmental stewardship, automation concepts, quality improvements, and risk control measures. Support troubleshooting, engineering, and optimization activities in sites; often leading those activities with global impact.

6. Paresa Qadir- Customer Support Dept She will   

help to develop and implement a customer service policy for an entire organization. find ways to measure customer satisfaction and improve services. handle face-to-face enquiries from customers.

7. Daaman Bhatia – Human Resource Dept He will  coordinate the implementation of people-related services, policies, and programs through Human Resources staff.  report to the CEO and assist and advises company managers about Human Resources issues. 

Prepares employees for assignments by establishing and conducting orientation and training programs.

8. Chinmaya Ghildiyal – Business Expansion Management Dept. He will  Interise takes an innovative and entrepreneurial approach to economic revitalization in lower-income communities.  help existing small employers plan, achieve, and manage the long-term growth of their business.  create new jobs and continue to develop as community leaders.

BUSINESS PLAN FOR QUAD BIKE INDUSTRY

2. INTRODUCTION Team Stealth is a startup company for selling Quad Bike operating in New Delhi. In order to build the plan, we have taken a virtual problem of commissioning of an upcoming industry, which will have the capacity to manufacture newly developed quad bike automobile. A quad bike is such a vehicle which has bike like structure and runs on four wheels.

WHY Quad Bikes?? The reason of introducing such concept automobile is to achieve a business plan which has never been built specifically in India, we still don’t have a manufacturer who can manufacture such a concept vehicle at large scale. This is not an industrial engineering attribute, but still we have considered it as the name of the industry later becomes the brand and a key word between product’s manufacture and its marketability. Here, we have devised the name of our industry as “Stealth Motors”. Stealth means movement that is quiet and careful in order not to be seen or heard, or secret action.

Objectives • Sells 500 units in first year. • Team Stealth will be fully self-sufficient and profitable by year five. • Sell at least 650 units by year three and 800 units by year five (15% annual growth rate).

BUSINESS PLAN FOR QUAD BIKE INDUSTRY

No. of units rented 100 90 80 70 60 50 40 30 20 10

0 1st year

2nd year

3rd year

4th year

No. of units rented

Mission The mission of Stealth Automobiles is to become the primary resource for parts in Delhi and to achieve excellence in the field of Engineering, Procurement and Manufacturing of Quad Bikes. Stealth Automobiles will lead the way to the future of mobility, enriching lives around the world with much safer, newer and effortless ways of moving people.

Vision Stealth Automobiles shall be professionally managed Indian company committed to total customer satisfaction and safety. Stealth Automobiles shall be an innovative entrepreneurial and empowering team constantly creating value and attaining global benchmarks. Stealth Automobiles shall foster a culture of caring trust and continuous learning while meeting the expectations of employees, stakeholders and society.

BUSINESS PLAN FOR QUAD BIKE INDUSTRY

PRINCIPLES 

By the market, of the market, and for the market.



Safety and Speed go hand in hand.



Best out of the rest.

POLICY 

We will work to cultivate new markets and seek out more quality parts suppliers.



We will respond to the new value standards of the modern era based on our principle “By the market, Of the market and For the market.”



We will provide high quality products based on customer’s feedback and 24/7 services at your door.

BUSINESS PLAN FOR QUAD BIKE INDUSTRY

3. Company Profile Stealth Automobiles Pvt. Ltd. will offer quality standard motorcycles and motorcycle parts to a growing market of motorcycling hobbyists. The shop will sell bikes as well as quality standard motorcycle parts.

Company Ownership Stealth Automobiles Pvt. Ltd is owned by Gitesh Aggarwal and Aarjav Jain.

Start-up Summary Gitesh Aggarwal will invest Rs.5,00,000 in Stealth Automobiles Pvt. Ltd. Aarjav Jain will also secure a Rs.2,00,000 loan. The initial inventory for Stealth Automobiles Pvt. Ltd will be Rs.6,00,000. The focus of this inventory will be on engine and electrical parts. Most of the parts are outsourced. The following table and chart show projected initial start-up costs in Lakhs for Stealth Automobiles Pvt. Ltd.

STARTUP 4.5

4.3

3.5 2.5

EXPENSES

ASSETS

INVESTMENT

BUSINESS PLAN FOR QUAD BIKE INDUSTRY

LOANS

WORKING ENVIRONMENT FOR EMPLOYEES 

Provide training and tailgate meetings on a regular basis of all employees operating Quad Bikes.



Use of all PPE, provide oversight by supervisors and other employees. Reevaluate the risks and hazards of the operation each time the Quad Bike is used especially loading and unloading.



Inspection of ramps, load capacity and anchors of the ramps to vehicle. Insure the proper use of tie downs, and securing of Quad Bikes.



Training of all employees that operate Quad Bikes and follow-up recertification with periodic refresher on Risk Assessment, tailgate meetings, review safety operations and TCLOC.



Always perform a mental risk assessment during operations, especially when factor change, i.e. weather, terrain etc.



Use of natural lights to make it easier for the employees to work properly as working under tube lights and LED’s will affect the employees’ health and lead to strain in eyes. Also, the work can be done best under natural lights.

BUSINESS PLAN FOR QUAD BIKE INDUSTRY

 Our Company is by the market, of the market and from the market By The Market We have studied the market and analyzed it completely before setting our company. The purpose is to increase the sale and this can be done by analyzing the needs of the customers. The customer’s demands are met here in the organization. We also provide self-manufacturing i.e. custom-made bikes as per customer’s need. The parts are collected from the market itself and thus are easily available for the customers. The biggest challenge for us is not only to create awareness for its vehicles, but also respond to market trends by offering the customers the best off-road experience that the brand promises to its customers.

Of The Market The parts used in assembly of the vehicle are easily available in the market. Thus, they are accessible to each and every one. We target to supply our vehicles in all the parts of country based obviously upon how our demands rise up. Our strategy for getting heads up in this competition is based upon the quality of the vehicle we are going to provide the customer. We are expecting to increase the profits significantly by cutting the costs and simultaneously providing our consumer, with the best option available to him/her in the market.

For The Market The products manufactured by our STEALTH AUTOMOBILE are easily accessible. Mechanic can easily repair it as they are easy to handle. Also, the cost price is low as we are using the standard parts. The main purpose is that we provide the best products to customers. Whereas the simple bike assembly is done at the market itself. There are factories, industries where bike assembly is done. The parts used are easily available as we have used standard parts. They can be serviced anywhere and by any mechanic as they are easy to handle. Also, we have taken care that the parts are available in the market thus, if damaged, they can be easily replaced.

BUSINESS PLAN FOR QUAD BIKE INDUSTRY

PRODUCT LINE

Specifications No. of strokes

4-Stroke

Engine capacity Fuel Capacity

LIFAN 167FMM 250cc 10.5L 63.5 inch

Vehicle Length Cooling Front Brakes Rear Brakes Ground Clearance Front Tire Diameter Rear Tire Diameter Wheel Base Steering

Liquid Rotor Disc brakes Rotor Disc brakes 8.67 22 22 43 inch Tripod Mechanism

BUSINESS PLAN FOR QUAD BIKE INDUSTRY

Services provided  Sales of self-manufactured Quad Bikes  Selling products assembled at its factory in Delhi, India, therefore avoiding the huge import rates of shipping fully assembled Quad Bikes into India.  Another benefit is that all its Quad Bikes are available immediately.

 Free service  We give on-site service in terms of labor and in terms of parts.  Covered repairs can be performed at any authorized Stealth dealership in the India.  Every repair performed will use Genuine Engineered parts.  Our technician goes and services a vehicle wherever there is a breakdown. So, we are providing a service on an individual basis.  Coverage is based on time, not distance.  We provide door to door service.

 Quad Bikes Accident Assistance  Knowing what to do in advance can help your Quad Bikes insurance claim go as smoothly as possible.  We’ve put together a list of tips of what you should do if you ever get into a Quad Bikes accident and how to ensure you get the most from your Quad Bikes insurance policy.

 Transferable Value  Increase the resale value by transferring any unused coverage to the next owner. Some conditions apply.

 Quad Bikes Official Dealership  Stealth Automobile has dealership with Polaris company. If customers bring Polaris quad bike, our technician will service it too.

BUSINESS PLAN FOR QUAD BIKE INDUSTRY

USP The company's USP is that we put the customers’ needs above everything else. The main purpose is to provide the best products with the best service.

The UNIQUE SELLING POINT of STEALTH AUTOMOBILE is:

 50% Discount on the Product  If the organization is not able to fulfill the customers’ needs due to any circumstances, the customer will be provided with a discount of 50% on the marked price of all products.  Our plan covers the problems that arise as a result of defects in materials or factory workmanship; with no additional out-of-pocket costs.

 2-year Free Service  There will be a complete package with selling bike and providing service of the bike. There will be a free service period of 2 years after the sale of the bike. Any damage or destruction will be entertained by the organization and that too free of cost.

BUSINESS PLAN FOR QUAD BIKE INDUSTRY

4. Market Analysis Market Analysis Summary Over the past ten years, biking has developed an entirely new customer base among middle aged men, ages 40 to 65. Last year, motorcycle sales for this age group was twice that of young men, ages 18 to 25. These two groups represent 80% of motorcycle sales. In India, motorcycle sales exceeded Rs.360 crore in 2017 and sales are predicted to grow by 10% this year. The city has ten motorcycle organizations and sponsors an annual cycling event as part of the city's spring celebration.

The demographics suggest that there isn’t a large market for quad bikes and parts, especially among experienced bikers. Our company aims at selling quad bikes at large scale. The best things is our quad bikes are hand crafted models. This is particularly important because the experienced customer will seek out a shop where the owner has a reputation for quality and service in the motorcycle community.

Market Segmentation We will focus on two customer groups: 

Middle aged men, ages 40 - 65.



Young men, ages 18 - 25.

Sales

Middle aged men

Young men

BUSINESS PLAN FOR QUAD BIKE INDUSTRY

MARKET ANALYSIS Year 1 Potential Customers Middle aged men Young Men Total

Year 2

Year 3

Year 4

Year 5

Growth 6%

85,000

90,100

95,506

101,236

CAGR 107,310 6.00%

5%

70,000

73,500

77,175

81,034

85,086 5.00%

5.55%

155,000

163,600

172,681

182,270

192,396

Strategy and Implementation Summary Excellent word of mouth among motorcycle hobbyists is the foundation of Stealth Automobiles. The motorcycle community in Delhi is close and used by its members to locate resources and services. Each satisfied customer of Stealth Automobiles will bring in more business. Team Stealth is a startup company for renting Quad Bike operating in New Delhi. In order to build the plan, we have taken a virtual problem of commissioning of an upcoming industry, which will have the capacity to manufacture newly developed quad bike automobile.

Competitive Edge Gitesh Aggarwal, owner of Stealth Automobiles is the president of the largest Quad Bike organization in the city with over 800 members. He has been a motorcycle hobbyist for 15 years and has built a reputation for quality customizing of motorcycles. For the past five years, Gitesh has served as a resource in locating used motorcycles and motorcycle parts for hobbyists.

BUSINESS PLAN FOR QUAD BIKE INDUSTRY

5.55%

Projected Profit and Loss The following table and charts shows projected profit and loss for 1st year.

BUSINESS PLAN FOR QUAD BIKE INDUSTRY

PRODUCT COMPARISON POLARIS

NEBULA

YAMAHA

STEALTH

Nebula

BUSINESS PLAN FOR QUAD BIKE INDUSTRY

Stealth

POLARIS

YAMAHA

NEBULA

STEALTH

MODEL TYPE

SPORT

SPORT

SPORT

SPORT

NAME

Trail Blazer

Raptor

NEBULA

Quad Bike

250

250

BS-250

250cc

ENGINE TYPE

250cc

250cc

250cc

250cc

COST

219286

296704

250000

210...