Aashiyana Interiors

Entrepreneurship
Management
Feasibility Report For Setting-up of Home
Furnishings Store

Submitted to:
Submitted by:
Mrs. Fezina Kadir
Priyanka Chaudhary
Assistant Professor
KNR13TD22
Executive Summary

Aashiyana Interiors is a proposed venture that will offer comprehensive interior design
services for homes and offices in the Metro cities. Aashiyana Interiors also will provide
access to products to complement the design consulting services including furniture, both
new and antique, decorator fabric, and home and office accessories. This venture offers the
personalized services the target market desires and can afford in a way that is unique from
concept to implementation.

Recent market research indicates a specific and growing need in the area for the interior
design consulting services and products Aashiyana Interiors offers the market it will serve.
The market strategy will be based on a cost effective approach to reach this clearly defined
target market. Although the population of Metro cities is approx 9 million the market has a
significant quantity of relatively wealthy households that are conscious of the appearance and
feel of their home and offices.

The approach to promote Aashiyana Interiors with be through establishing relationships with
key people in the community and then through referral activities once a significant client base
is established. Aashiyana Interiors will focus on developing solid and loyal client
relationships offering design solutions based on the client's taste, budget, use, and goals for
the space. The additional selection, accessibility of product, design services, and value-based
pricing will differentiate Aashiyana Interiors from the other options in the area.

Total revenues in the first year are projected to exceed 30 lakhs with a loss. The venture will
show increasing profits in year two and three, with revenues projected to increase to almost
55 lakhs. This interior design business plan outlines the concept and implementation and
details regarding the first three years of this venture.

Objectives

1. Realize an average of 2.5 lakhs of sales each business month for the first year, 3.8
lakhs for the second, and 4.5 lakhs for the third year.

2. Generate a minimum of 45% of revenues from product sales versus consulting billing.

3. Establish a commercial revenue client base accounting for 10% of total revenues.

Mission

Aashiyana Interiors is an interior design service for discerning, quality-conscious clients that
seek assistance in their design choices for their primary residences, vacation homes, and
businesses. This experience offers personal attention through the design process and also
provides design resources and products to its clients through special purchases of furniture,
fabric, and accessories. The total experience is provided in a way to inform, inspire, and
assist people through the process of transforming their home or business environment to

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become a unique and personalized expression of themselves and add to their enjoyment of
that interior space.

Keys to Success

The primary keys to success for Aashiyana Interiors will be based on the following factors:

Provide the highest quality interior design consulting experience possible.

Sell specially selected products to these clients to further meet their interior design
needs.

Communicate with our client base through the website and personalized
communication techniques.

Retain clients to generate repeat purchases and initiate referrals.

Company Summary

Aashiyana Interiors is a start-up business that will offer comprehensive interior design
services for home and office. This business will assist those that want to have guidance and
council in developing a basic design concept of their project, to the person that desires
someone to take it from concept to complete implementation. Aashiyana Interiors will offer
the ability for clients to purchase new and antique furniture, art work, decorator
fabric, and home accessories. The website www.aashiyanainteriors.com will be used as
another way to communicate the services available and provide a portfolio of the work
accomplished. The business will begin as a home-based business and is expected to remain
in this structure through at least the first three years.

Company Ownership

Aashiyana Interiors, located in New Delhi, New Delhi is registered in the State of India as a
sole proprietorship owned and operated by Priyanka Chaudhary dba Aashiyana Intiriors .

Company Locations and Facilities

Aashiyana Interiors is operated from a home office located in New Delhi, India. A room is
dedicated to support a work area, a client contact work center, and display samples of design
concepts, products, and past work.

Products and Services

Aashiyana Interiors focuses on providing interior design consulting. This is complemented

by specially purchased furniture, art pieces, decorator fabric, made-ups and accessories for
the home and office. The sales process will begin with interior design consulting services,
and then progress on to offer specially selected components to complement the design theme.

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Products available through Aashiyana Interiors include:

Furniture available through special purchase arrangements with Synergyce, Lipika,

Godrej Interio, The orange lane, Deeva Textiles, Aastha home decor and lemon decor.

A selection of decorator fabrics from Weaves, Wooden street, Good Earth, Portico,
Indiafab, Bombay Dyeing and Deeva Textiles.

A line of drapery hardware called http://fabrics2buy.in/ , http://www.maspar.com/

purchased through Dept. of the Interior Decorator Fabrics in Canada and India found
at www.fabriconline.com.

Accessory and art pieces available through wholesale shows.

Hunter Douglas window treatment products including a variety of hard window

coverings.

Interior shutters made of wood and a plastic/resin product called "polywood."

Antiques acquired for specific client needs through an arrangement with a local
antique buyer and through direct purchases through other sources.

Product and Service Description

Our primary points of differentiation offer these qualities:

A unique client experience from a trained and professional interior designer that is
qualified and capable of meeting the needs of discerning clients with high
expectations.

Access to a wide and unique selection of new and antique furniture, accessories, and
special-order decorator fabrics.

Personal assistance from a complementary product offering, including hard-covering

window treatment, hardware, and home accessories that fit the look and objectives of
each project.

Competitive Comparison

Our competition is primarily from other interior designers. Looking at a broader picture,
there is also competition from the "do-it-yourself" resource providers that have retail stores
and websites that include the following:

Bed, Bath and Beyond moved into the market in the year 2010 at an excellent
location.

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 Discount stores including Target, Atmosphere and D Decor have expanded their
fabric, bedding, pillow, and ready-made drapery selections often representing lines
including Dicitex.

Asia-Pacific was the largest market for home decor products in 2014, owing to the
high growth in real estate sector and increasing urban population in the region

Global home decor market comprises players such as Inter IKEA Group, Forbo
International SA, Armstrong World Industries, Inc., Mannington Mills Inc., Mohawk
Industries Inc., Shaw Industries, Herman Miller Inc., Ashley Furniture Industries, Inc.,
Kimball International and Duresta Upholstery Ltd. The leading players are acquiring
smaller players to widen their customer base. Leading players are consistently
introducing new products with a wide range of design and style in order to increase
their market share. Besides this, many furniture manufacturers are partnering with
interior designers to create and offer a wide range of customized furniture.
Over the next four years, the market is likely to witness a growing tilt towards eco-
furnishing furnishings. Manufacturers have started offering a wide range of aesthetic
furniture using only Moso bamboo, which is stronger and harder than oak. Similar
innovations are predicted to characterize growing investments in home furnishings
during the forecast period.

The list of competitors for home accessory competition includes Pier 1 and local
competitors that provide an entire list of other furniture, accessory and gift stores.

Web sales of furniture, fabric and other interior design-oriented products have
expanded dramatically and in many cases is easily available.

Other prominent vendors in the market include Ahold, Aldi, Ashley Furniture,
Carrefour, Continental China, Crate & Barrel, Fred Meyer, Furniture Brands
International, Future Group, Haworth, Herman Miller, Inditex, and Kimball
International.

Sales Literature

A simple and professional looking brochure will be available to provide to referral sources,
leave at seminars and on a select basis, use for direct mail purposes.

Market Analysis Summary

Barton Interiors has a defined target market client that will be the basis of building this
business. This client is identical for both the residence and office spaces, but the
target market is identical based on her different roles for each of those spaces.

Effective marketing combined with an optimal product offering is critical to the Barton
Interiors' success and future profitability. The owner possesses solid information about
the market and knows a great deal about the common attributes of those that are expected to

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be prized and loyal clients. This information will be leveraged to better understand who
Barton Interiors will serve, their specific needs, and how to better communicate with them.

Market Segmentation

The profile of the Aashiyana Interior client consists of the following geographic,
demographic, psychographic, and behavior factors:

Geographics

Delhi and the NCR (National Capital Region comprising the satellite cities of Faridabad,
Gurgaon, Noida and Ghaziabad), have been transformed over the past 15 years. Delhi is now
a hot-bed for the IT and BPO (business process outsourcing) industries with most Indian call
centers located in and around there.Delhi is an important commercial center in South Asia
and third largest metropolitan area in India after Mumbai and Kolkata. It has the highest per-
capita income in the country, at around 2.5 times the national average, and the second highest
GDP in terms of purchasing power parity. During October of this year, the Delhi government
raised the minimum wage for unskilled labor to Rs 8,086, semi-skilled labor to Rs 8,918 and
skilled labor to Rs 9,802.

The total target market population is estimated at 24,000 based on the following
demographics.

Demographics:

The target customers are the people who live in Delhi in the age group 20-34 which includes
both men and women who all are in a particular border of education or job. They are mainly
young, single and newly married couples. They are modern but always keep their traditions
well maintained. They are highly qualified professionals with good sense of knowledge and
ethics. Consumer group constitutesstrivers who earns about 6 lakhsper annum, being
occupied in an IT company, a doctor, engineer or a designer, who lives in a family which
consists not more than 4 members. They purchase things which are simple and sober, which
are not so complicated visually with variety of bright colours and buzy prints.They look more
for comfort and quality.They give importance for durability and functionality.They are neither
much religious nor spiritual. They generally belong to India but like western influence in
their lifestyle and products.

Psychographic:

The consumer group which is targeted is of upper class, including high profile business
people and professionals. They imitate the actual new generation who use technologies are
their basics and relations as their pleasure. They acquire high class in their society with their
profession, salary and concern towards the society. They love contemporary touch in all their

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aspects, love to wear stylish clothes with interesting outfits and promote traditionalist in case
of special occasions. They are interested in night parties but less engaged in drinks and
similar stuffs. They love travelling and like to carry their personal things like casual wears,
shoes, bed sheets, soaps etc packed with them, rather than buying it incidentally at the time of
its need. They are gregarious and ambitious. They are good thinkers who are satisfied with
the ideas and talents they have. They are comfortable and well educated people with a
matured behaviour, reflective, and value order, knowledge and responsibility. They actively
seek out information in the decision making process. They are innovators who are successful
with many resources. They are open to change and love variety. They are receptive to new
ideas, technology, and techniques. They are active, well organized and goal oriented people
who likes to enjoy their good moments in the best way in between the buzy schedule of their
career life.

Shopping and behavioural attitudes:

Shopping is a genuine need, rather than a craze for this group of consumers. They shop in
regular occasions and give importance for quality, service, economy, convenience and speed.
They are regular users of a product who purchases in a medium rate. They are strongly loyal
to a brand. They buy a product based on their special interests to it. They have a positive
attitude towards any product which is newly introduced on the market. They never purchase
clothes in bulk, especially from a normal store where enormous offers are given. They look
for quality and aesthetics disregarding how expensive it is. They shop from popular brands,
and are concerned about the uniqueness of the products they purchase because they never like
their products to be seen with someone else.

Ethnographic / cultural factors:

They speak English as the official language and use Hindi in informal occasions as they are
modern in their lifestyle but still serves their ethinicity with them.The cultural factors include
artistic values, laws and languages of a society. They all dont fall under a particular religion
as well. They live in a mixture of all the three religions such as Hindu, Christian and Muslim.
They like to have western food which is easy to prepare in their normal days and consumes
Indian food on holidays.

Target Market Segment Strategy

Our marketing strategy will create awareness, interest, and appeal from our target market for
what Aashiyana Interiors offers its clients. The target markets are separated into four
segments; "Country Club Women," "Boomers in Transition," "Professional Youngsters," and
"Home Builders." The primary marketing opportunity is selling to these well defined and
accessible target market segments that focus on investing discretionary income in these areas:

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Market Analysis

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Potential Growth
Customers
Country 12% 34,400 38,528 43,151 48,329 54,128 CAGR
Club Women
Boomers in 9% 12,000 13,080 14,257 15,540 16,939 12.00%
Transition

Professional 8% 8,000 8,640 9,331 10,077 10,883 9.00%

Youngsters
Home 5% 8,000 8,400 8,820 9,261 9,724 8.00%
Builders
Other 0% 0 0 0 0 0 5.00%

Total 10.09% 62,400 68,648 75,559 83,207 91,674

Country Club Women - The most dominant segment of the four is comprised of women in
the age range of 35 to 50. They are married, have a household income greater than 6 lakhs
own at least one home or condominium, and are socially active at and away from home. They
are members of the Country Club, Junior League of New Delhi, and/or the Doctor's Wives
Auxiliary. They have discretionary income and their home and how it looks is a priority. The
appearance of where they live communicates who they are and what is important to them.

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 Boomers in Transition - This group, typically ranging in age from 50 to 65, is going
through a positive and planned life transition. They are changing homes (either building or
moving) or remodelling due to empty nest syndrome, retirement plans, general downsizing
desires, or to just get closer to the golf course. Their surprisingly high level of discretionary
income is first spent on travel, with decorating their home a close second. This is what makes
this segment so attractive. The woman of the couple is the decision maker, and often does
not always include the husband in the selection or purchase process.

Professional Youngsters - Couples between the ages of 25 and 35 establishing their first
"adult" household fall into this group. They both work, earn in excess of 4.5 lakhs annually,
and now want to invest in their home. They seek to enjoy their home and communicate a
"successful" image and message to their contemporaries. They buy big when they have
received a promotion, a bonus, or an inheritance.

Home Builders - People in the home building process, typically ranging in age from 40 to
55, are prime candidates for Aashiyana Interiors. This applies to both primary residences and
vacations and secondary homes. Although only expected to occur two to five times each year
for the business, this event will be the single largest dollar transaction amount.

Market Trends

The home textile market, considered to include sheets, towels, draperies, carpets, blankets,
and upholstery, accounts for 37% of all textile output. The trade publication "Home Textiles
Today" estimates the size of the U.S. home textiles market at the wholesale level, excluding
carpets, to be between $6.5 billion to $7 billion annually. The industry is expected to realize a
steady increase over the next few years.

The industry is driven by the number of "household formations" which is expected to

continue through the first years of the new millennium. This is primarily due to the solid
growth in the number of single-parent and non-family households. This growth also comes
from baby boomers needing bigger houses to accommodate growing and extended families
and, as people get older, they are buying homes rather than renting to realize tax and equity
building benefits. Favourable mortgage rates will also enable others to invest in their existing
home.

The "do-it-yourself" (DIY) market continues to grow and closely parallels the professional
home-improvement market. DIY market growth is attributed to an increased presence of
products, the personal satisfaction experienced, and the cost savings clients realize. A portion
of the do-it-yourself market is the "buy-it-yourself" (BIY) market. Consumers are buying the
product and arranging for someone else to do the fabrication and/or installation. This is more
expensive then the do-it-yourself approach, but less costly than buying finished products
from other sources. It also provides similar feelings of creativity, pride, and individuality
associated with direct creative involvement. This sense of "participation" in home decorating
is an important factor for many of these committed clients.

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Regardless of this data, the following trends and issues impact the success and challenges of
Aashiyana Interiors.

National economic health: The industry performs better when the country
experiences "good times" regardless of its direct impact on the local economy. Sales
decrease when the stock market falls and when NATO takes military action. An
upbeat State of the Union address by the President correlates with an increase in sales.

New home construction activity: More closely related to what is taking place in our
local economy, new home construction has a significant impact on sales across all
product lines.

Market Needs

Aashiyana Interiors will provide its clients the opportunity to create a home environment to
express who they are. They have the choice to actively participate in the design, look, and
feel of their home. They desire their home to be personal, unique, and tasteful as well as
communicate a message about what is important to them. Aashiyana Interiors seek to fulfill
the following benefits that we know are important to our clients.

Service Business Analysis

The industry continues to be competitive with a "commodity" concern with "designers" of all
skill and background levels available throughout the market.

Potential Competitors: There are many other interior designers in metro area and
these competitors range from those that provide simple-focused services, such as
draperies only, to a more full-service interior design approach similar to Aashiyana
Interiors.

Power of Suppliers: Moderately high in most anyone that has a business licence can
have access to wholesale purchase of furniture, fabrics and accessories.

Power of Buyers: Very low as buyers work within the financial terms and product
availability offered through the suppliers that specify the terms and conditions.

Substitute Products: High as many people refer to themselves as interior designers

regardless of background, training, or certification. Substitute products are also high
in the area of window treatment as hardcovering solutions have become available and
increasingly affordable. This includes blinds, shutters, and other "manufactured"

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 treatments. Substitute products are not as prevalent in the area of antiques and art
pieces.

Rivalry: Moderately low with the "territorial" structure that the industry experiences
and moderately low exit barriers. The easy entry is accompanied with an easy exit
and people get out when it is not working.

Distributing a Service: Our primary method of distribution will be on a direct sales basis for
each individual client.

Strategy and Implementation Summary

The primary sales and marketing strategy for Aashiyana Interiors includes these factors:

A premier interior design consulting experience that provides impressive client

service throughout.

The sale of other complementary products that adds value for the client's total
experience.

Providing a experience that will result in repeat business for home and/or office needs
and client referrals.

This strategy will be implemented through the tactics and programs described in this section.

Strategy Pyramid

The following three strategies summarize our implementation process for the upcoming year.
They address in-store retail revenue, expansion to non-fabric revenue sources, and Web-based
sales activities.

STRATEGY #1 - Generating Referrals

Tactic #1A - Build a client base through leveraging existing contacts from former clients of
the architecture firm.

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Tactic #1B - Build a referral network through professional contacts. Offer special order fabric
that will arrive in reasonable time frame and enable to provide something very unique for
each customer.

Program #1A - Press release in the local paper announcing the business is open.

Program #1B - Offer seminars through organizations to promote the concept of using an
interior designer and using Aashiyana Interiors.

STRATEGY #2 - Product Sales

Tactic #2A - Promotion of products available through Barton Interiors.

Program #2A - Seminars and demonstration promotions.

Program #2B - Cross selling activities with home and office consulting.

Tactic #2B - Promotion of art and antiques.

Program #2C - Demonstrate the unique qualities they offer to promote these higher
dollar transactions.

Program #2D - Display this through the online and notebook portfolio.

STRATEGY #3 - Generate Awareness Through the Website

Tactic #3A - Better facilitate and communicate Aashiyana Interiors services and
product through the website.

Program #3A - Design of www.aashiyanainteriors.com.

Program #3B - Integration of completed client work.

Tactic #3B - Monthly assessment of performance of email inquiries.

Program #3C - Establish goals of the program (Refer to Web Strategy Plan done in Web
Strategy Pro).

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Program #3D - Evaluate the client work initiated through the site.

Value Proposition: Aashiyana Interiors offers the highest interior design experience for the
home and office conveniently available for those in the Metro cities. The concept is unique
through the selection of antiques, home accessories, and complementary products along with
the interior design consulting experience.

Competitive Edge: Aashiyana Interiors will be differentiated from other interior designers
by the value it offers in quality, sought-after products not found through other designers or
store choices, and through the excellent service and support it offers. Client follow-through
will be impeccable. This competitive edge leverages the same proven factors that indicated
higher success rates for interior design services.

Marketing Strategy: The marketing strategy is based on establishing Aashiyana Interiors

as the resource of choice for people in need of interior design ideas and products. The more
involved "do-it-yourself" and the "buy-it-yourself" clients will find the consulting and
guidance helpful. On the other end of the spectrum, the "just-get-it-done" client will find
Aashiyana will successfully accomplish exactly that. All clients will find Aashiyana Interiors
to be a resource to decorate their homes and offices in a way that is inspiring, inviting, and
motivating.

Our marketing strategy is based on superior performance in the following areas:

Unique consulting services.

Product choices specifically chosen for each individual client project.

Overall quality of the experience and the result.

Excellent client service and support regardless.

This marketing strategy will create awareness, interest, and appeal from our target market for
what Barton Interiors offers our clients. This will be executed in a manner that will entice
them to come back for repeat purchases and encourage them to refer friends and professional
contacts.

Pricing Strategy: Product pricing is based on offering high value to our clients compared to
others in the market. Value is determined based on the best design services, providing a

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"picture" of what the space will look like before the work begins convenience, and timeliness
in accomplishing the goal.

Promotion Strategy: The promotion strategy will focus on generating referrals. Other
potential sources of promotion include:

Newspaper Advertisements: Select advertisements in the Times of India and The

Hindu.

Television Advertisements: Select Music Channels, Daily Shows like star plus,
colors, sony and Fashio Tv also in local television shows.

Website: Traffic from www.aashiyanainteriors.com.

Distribution Strategy: The primary source of distribution is through the tradition retail
distribution channel. On a secondary basis, it will be through the website via email inquiries
and phone sales, or directly from the site itself.

Marketing Programs: The single objective is to position Aashiyana Interiors as the premier
source for home decorator fabrics in Hauz Khas area New Delhi, commanding a majority of
the market share within three years. The marketing strategy will seek to first create client
awareness regarding the products and services offered, develop that client base, establish
connections with targeted markets and work toward building client loyalty and referrals.

Aashiyana Interiors' four main marketing strategies are:

1. Increased awareness and image.

2. Leveraging existing client base.

3. Cross selling.

4. New home construction promotion.

Positioning Statement: For the person that seeks to create a personalized and unique
impression of her home, Aashiyana Interiors is the source for client-oriented design
services. Clients will be impressed with, and return for, the services they receive and the
outcome they have enjoyed. Unlike other interior designers or stores, such as DDecor,

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Warehouse Fabric, or catalog options, Aashiyana Interiors is a pleasant and tasteful resource
that encourages everyone in the process of decorating their home. Unlike using the services
of other interior decorators, Aashiyana Interiors allows the individual to participate in their
design choices to the extent they choose, and realize greater value for the dollars they invest.

Sales Strategy: The key to our sales strategy is referrals from pleased clients that are proud
of the result Aashiyana Interiors provided them and pleased to tell their friends--people much
like them. Keeping in contact with past clients to acquire repeat business and to remind them
of this referral opportunity will be key. Sales activities will depend on creating awareness
about the services Aashiyana Interiors offers and then build on each and every client as they
make the decision to refer to others.

Web Plan Summary: The website of www.aashiyanainteriors.com will be used for

information only purposes at this time. Contact information will be presented with a
complete portfolio of work accomplished. Additional information will be provided regarding
the product-based resources Aashiyana Interiors incorporates into the work done for clients.

Sales Forecast: The sales forecast is broken down into three main revenue streams;
residential consulting revenue, commercial consulting revenue, and product sales. The goal
is to have these two revenue streams be equal by the second year, with product sales slower
to secure during year one. The revenue forecast for the upcoming year is based on a modest
12% growth rate. The economic unpredictability adds to the difficulty of making these
projections.

SALES FORECAST

Year 1 Year2 Year3

Sales
Residential Consulting 15,21,012rs. 20,90,554rs. 30,82,227rs.

Commercial Consulting 2,65,339rs. 4,18,110rs. 4,82,435rs

Product Sales 13,26,698rs. 20,90,554rs. 30,82,227rs.

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Other 0 0 0

TOTAL SALES 31,13,049rs. 45,99,219rs. 66,46,891rs.

Direct Cost of Sales Year1 Year2 Year3

Residential Consulting 2,28,151rs. 31,3,583rs. 4,62,334rs.

Commercial Consulting 39,800rs. 62,716rs. 72,365rs.

Product Sales 7,29,683rs. 11,49,804rs. 16,95,225rs.

Other 0 0 0

Subtotal Direct Cost of Sales 9,97,636rs. 15,26,104rs. 22,29,924rs.

MANAGEMENT SUMMARY

Ms. Priyanka Chaudhary is the founder and owner of Aashiyana Interiors. Priyanka received
a Bachelor of Design degree from the National Institue of Fashion Technology. After
working for three years at a prestigious interior design firm in Bangalore, she moved to Delhi
and began working with Triage Interiors, a well-established Interior firm focusing on the
commercial sector. During this time, she has developed relationships with a number of

16
community, professional, and supplier contacts throughout the Bangalore and New Delhi
area. Priyanka plans to leave the firm on favorable terms at the end of the year.

With her new role at Aashiyana Interiors, Priyanka will oversee all aspects of the design
process and all business operations. Priyanka's responsibilities include all aspects of
establishing the business, marketing, buying, bookkeeping and financial dealings.

Organizational Structure: The organization structure is simplistic. Priyanka manages all

employees and professional contacts, and will be interfacing with more than 12 account
executives/vendors. Priyanka will determine resources requirements and monitor expenses
for all aspects of the firm.

Personnel Plan: Priyanka will act as a sole proprietor without employees at this point.
Contract labor may required for upholstery and fabrication purposes, but that will be included
in the cost of good for each client's project. Priyanka's salary will begin at a modest 60,000
per month, increase quarterly, and then is projected at 90,000 per month for year two and 1.5
lakhs for year three.

PERSONNEL PLAN

YEAR 1 YEAR 2 YEAR 3

Priyanka 13lakhs 19lakhs 24lakhs

Other 0 0 0

TOTAL 0 0 0
PEOPLE
Total Payroll 13lakhs 19lakhs 24lakhs

Financial Plan

The initial funding of 15 lakhs will be invested by the owner. The goal is to fund the growth
of the business from its earnings. The financial plan contains these essential factors:

1. A growth rate in sales of 47% for the year 1 and 15% for year2.

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 2. An average sales per month that increases each year, averaging 2.5 lakhs in the first
year, 3.8 lakhs the second, and 4.5 lakhs in the third year.

3. Continue to fund the growth of the business from the revenues it generates.

Financial difficulties and risks

Slow sales resulting in less-than-projected cash flow.

Unexpected and excessive cost increases compared to the planned expenses.

Overly aggressive and debilitating actions by competing designers.

A parallel entry by a new competitor further diminishing revenue generation potential.

Worst case risks might include

Determining the business cannot support itself on an ongoing basis.

Dealing with the financial, business, and personal devastation of the venture's failure.
Survivable but painful.

Start-up Summary

The following details the initial start-up expenses for Aashiyana Interiors. Most equipment
costs are office related. Sample and display costs include books, samples and resources
necessary to promote furniture, fabric and other home accessory products.

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START-UP

Requirements

Start-up Expenses

Legal 35000

Stationery etc. 55000

Brochures 30000

Consultants 30000

Insurance 10000

Samples and Reference Books 200000

Research and development 55000

Expensed equipment 290000

Other 37000

TOTAL START-UP EXPENSES 750000

Start-up Assets

Cash Required 650000

Other Current Assets 67000

Long-term Assets 200000

TOTAL ASSETS 920000

Total Requirements 1700000

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START-UP FUNDING

Start-up Expenses to Fund 750000

Start-up Assets to Fund 920000

TOTAL FUNDING REQUIRED 1700000

Assets

Non-cash Assets from Start-up 270000

Cash Requirements from Start-up 650000

Additional Cash Raised 0

Cash Balance on Starting Date 650000

TOTAL ASSETS 920000

Liabilities and Capital

Liabilities

Current Borrowing 0

Long-term Liabilities 0

Accounts Payable (Outstanding Bills) 0

Other Current Liabilities (interest-free) 0

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TOTAL LIABILITIES 0

Capital

Planned Investment

Manager 1700000

Investor 2 0

Other 0

Additional Investment Requirement 0

TOTAL PLANNED INVESTMENT 1700000

Loss at Start-up (Start-up Expenses) (750000)

TOTAL CAPITAL 920000

TOTAL CAPITAL AND LIABILITIES 920000

Total Funding 1700000

SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses relating to the
market analysis summary and describes the opportunities and threats facing Aashiyana
Interiors.

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Strengths

The proven ability to establish excellent personalized client service.

Strong relationships with suppliers that offer flexibility and respond to special product
requirements.

Good referral relationships with architects, complementary vendors, and local

realtors.

Client loyalty developed through a solid reputation among repeat, high-dollar

purchase clients.

Weaknesses

The owner is still climbing the "retail experience learning curve."

Not established in a market where a variety of interior design options exist.

Challenges of the seasonality of the business.

Opportunities

A significant portion of our target market is desperately looking for the services
Barton Interiors will offer.

Strategic alliances offering sources for referrals and joint marketing activities to
extend our reach.

Promising activity from new home construction activity.

Changes in design trends can initiate home updating and, therefore, generate sales.

Threats

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 Continued price pressure due to competition or the weakening market reducing
contribution margins.

Dramatic changes in design, including fabric colors and styles can present challenges
to keep paced with what is desired by what is expected to be a leading-edge client
base.

Expansion of products and services offered by other sources including national

discount stores into the local market including Target, Atmosphere, and DDepot.

Catalogue resources, including Calico Corners and Pottery Barn, with aggressively
priced trend-setting fabric products including drapery, bedding and slipcovers.

Conclusion After preparing the Feasible report on starting a new home interior store we
conclude that establishment of any organization is really a crucial task. The promoters have to
deal with many circumstances which require high involvement in decision making and
strategic planning regarding proper innovations.

Aashiyana Interiors will successful in establishing a unique furnishing store business in New
Delhi. The strength of Aashiyana Interiors is that the customers could easily differentiate
among the products while its weakness was less marketing and slow movement of retail
brand. We tend to diversify the business. We strive for continuous profits.

This analysis indicates solid potential success, but the weaknesses and threats must be
recognized throughout the life of the venture.

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