MINI PROJECT REPORT I

ON

“Convertable shoes”

Towards partial fulfillment of

Master of Business Administration (MBA)
(Affiliated to DR. A P J Abdul Kalam Technical University, Lucknow)

Submitted By: Faculty Guide:

Mohd Adnan Dr. Rinku Pandey
Roll no : 2100540700052 (Assistant Professor)
BBD ITM, Lucknow BBD ITM, Lucknow

SESSION 2021-2022
DEPARTMENT OF MANAGEMENT

Babu Banarasi Das

Institute of Technology & Management
Sector 1, Akhilesh Das nagar, Faizabad Road, Lucknow (U. P.), India

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 DECLARATION
I hereby declare that the field work entitled of “Convertable shoes” submitted to the university is a record of an

original work done by me under the guidance of Dr. Rinku Pandey (Assistant Professor) (BBD ITM, Lucknow)

and this Mini report is submitted in the partial fulfillment of Master in Business Administration.

Date: Mohd Adnan

Place: MBA 1st Semester

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 ACKNOWLEDGEMENT
I am highly indebted to my Faculty guide and H. O. D. DR.MEETU PANDEY Ma’am for their throughout guidance

and constant supervision as well as for providing necessary information regarding the project & also for their support

in completing the project.

I would like to express my gratitude towards my parents & my college mates for their kind co-operation and

encouragement which help me in completion of this project.

However, it would not have been possible without the kind support and help of many individuals and organizations. I

would like to extend my sincere thanks to all of them who have willingly helped me out with their abilities.

Mohd Adnan

MBA 1st Semester

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 PREFACE
I respect to the allotted project, I have inherited myself as an entrepreneur in this organization but informally it is a

sacred place for me as it’s my first practical exposure to an organization to know and get aware to an organizational

real practical stressful environment. Although I am student of MBA It is a two year full time degree courses. So far

this training is scheduled for first semester syllabi of AKTU i.e. (Mini Project) as a separate topic to be asked in detail

in viva-voice conducted by external Thus study will provided me a better opportunity to survive in cut throat

competition with a prosperous existence. I have tried my best to gain out of well framed circumstances & with the

help of experienced personnel who helped me out so for become possible to them. As being a very confidential

functioning many things are there which can’t be known but on the basis of gathered information and certain hints, the

project has been formed. It may have something missing but I have tried to present all things what I have received.

Although this report has been got checked by different personnel but after that if there is some shortcomings I expect

it to be rectified. So the whole study bifurcated in different parts. Certain observations & suggestions also have been

stated which if possible to be reviewed.

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 TABLE OF CONTENTS

ACKNOWLEDGEMENT

PREFACE

TABLE OF CONTENTS

EXECUTIVE SUMMARY

INTRODUCTION OF THE SERVICE

OBJECTIVE OF INNOVATION

NEED OF INNOVATION

SOURCE OF IDEA

PROTOTYPE

USES OF THE SERVICE

FUNCTIONAL AREAS OF SERVICE

COMPETITORS ANALYSIS

SWOT ANALYSIS OF SERVICE

TECHNICAL FEASIBILITY

MARKET ANALYSIS

COSTING AND PRICING OF THE SERVICE

FINANCIAL FEASIBILITY OR AVAILABLE SOURCES OF FUNDS

LIMITATIONS OF THE SERVICE

FUTURE CHANGES IN SERVICE

CONCLUSION

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 EXECUTIVE SUMMARY
Traveling short distance with personalised Shoe is now widely in trend. For traffic avoidance
and ease of driving along with space saving/compatibility, SUP KIOD SHOE are more
preferred than NORMAL SHOE When we have to ride on unknown road or we have to find
out our destination for this purpose we are using GPS for route tracking but it is not
convenient to use GPS during the ride .So to overcome or to solve this issue we are coming
with new technology which will make our journey happy to tracking the route. Our project
would revolve around coming up with a smart shoe prototype that could pair with smart-
phone using Bluetooth and help to provide navigational information through vibration unit
placed all around shoe.

In essence, these shoes could give indications about when to take a turn, where to take aturn
and what type of turn to take (U-turn, s-turn etc.) .to person wearing these smart shoes.

All this information would be relayed through six directions, that one could go in. there
would be a micro-controller connected to a Bluetooth transceiver that would send signals to
vibration units based on information received.

Using Google’s navigation database, we cannot only provide information for outdoor but
also indoor navigation.

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 Introduction Of The Product

A product is anything that can be offered to a market that might satisfy a want or need.
In retail, products are called merchandise. In manufacturing, products are purchased as
raw materials and sold as finished goods.

There are number of solution available in market for route tracking or to find out the destination on
unknown roads but all the time it is not always preferred due to some circumstances which may be
either environmental. Traveling short distance with personal vehicle is now widely in trend. For
traffic avoidance and ease of driving along with space saving/compatibility, two wheeler are more
preferred than four wheeler. Motorcycles are represents power and style and also considered as
durable (long term life).Along with this motorcycles also provides environment friendliness and
better fuel efficiency as compared with four wheeler. Higher resale value and lower maintenance are
the other reasons for enhancing (growth) number of two wheeler on road As the number of two
wheeler increases, GPS navigation system is also in trend one may face difficulty using both at the
same time. Accumulating these two system and use it in one makes it easier for a two wheeler
drivers. . [#Note: Not necessary all are going to known destination].

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Product detail Description with
Diagram

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 Objective Of The Innovation

My primary objective is Providing Safety n security facilities to the customers at

every step I can fulfil this by ensuring that customers’ requests on are attempted
precisely and promptly done in a customized manner.

Navigation enables a user to process his current location based on GPS data and travel
to his desired location, also based on accurate GPS data. Any user with a working
GPS receiver can navigate to a particular destination, whether traveling on foot, by
automobile, by airplane or by ship. GPS navigation is even accurate underground.

The global positioning system, more commonly referred to as GPS, is a radio

frequency navigation system operated by the U.S. Department of Defence. GPS was
originally developed for military purposes, but has since become available to non-
military personnel worldwide as well. According to the National Executive
Committee for Space-Based Positioning, Navigation and Timing, the objectives of
GPS are to provide accurate positioning, navigation and atomic timing services on a
continuous and free basis.

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 Need Of Innovation
At the most basic level, innovation includes the development of new products, processes, or business
models that better fit the needs of a group of consumers. However, in reality, this definition just
scrapes the surface of innovation's potential.Float employment in every possible manner .

Innovation isn't just something new, it's something different and useful

Innovation is production or adoption, assimilation, and exploitation of a value-added novelty in economic

and social spheres; renewal and enlargement of products, services, and markets; development of new
methods of production; and the establishment of new management systems. It is both a process and an
outcome.

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 Source Of Idea
The process of finding innovation must be systematized. Nevertheless, companies
must work on the framework conditions so that flashes of inspiration can strike and
ideas can flourish. Important measures include the following, for example:

Information from Customers.

Information from Distributor.
Competitor Analysis.
Exhibition.
Publications, Journal.
Universities, private Institutions.
Patents.

Sources of new product ideas include company employees, customers, competitors,outside

inventors, acquisitions, and channel members. As new ideas come to the front, new product
launch ideas start to gel.

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 PROTOTYPE
" A prototype is someone or something that serves as a model or inspiration for
those that come later. A successful fund-raising campaigncan serve as a
prototype for future campaigns. The legendary Robin Hood, the "prototypical"
kindhearted and honorable outlaw, has been theinspiration for countless other
romantic heroes. And for over a century, Vincent van Gogh has been the
prototype of the brilliant, tortured artist who is unappreciated in his own time.

A prototype is a simple experimental model of a proposed solution used totest or

validate ideas, design assumptions and other aspects of its conceptualisation
quickly and cheaply, so that the designer/s involved can make appropriate
refinements or possible changes in direction

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 USES OF THE PRODUCT

Companies tend to have trusted advisors who may have relations around the world. If you
want customers to buy your services, you need offer them a solution that costsless than the
problem is costing them. Your solution might:

Save your customer money;

Save your customer time: or
Improve your customer’s productivity.
When selling services rather than technology, the focus should be on peopleand
organizations—listening to and understanding their internal projects, and being
considerate of their timelines and budgets. It is important to listen and provide a fair
offer for services that genuinely meet a customer's need.
Promotes Employment
Cost reduction
Less Time Consuming

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FUNCTIONAL AREAS OF PRODUCT
The main purpose of functional areas is to ensure that all-important
business activities are carried out efficiently. This is essential if the
business is to achieve itsaims and objectives.

We can illustrate the situation as follows:

1. Sales and marketing will be involved in achieving targets linked to

developing newmarkets or increasing sales.
2. Human resources will be involved in arranging staff training activitiesand
supportingthe continuous professional development of all staff.
3. Finance will be expected to monitor and support aims and
objectives linked tokeeping costs low to improve profitability.
4. Production will be set targets relating to quality or meeting
planned productionschedules.

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 COMPETITORS ANALYSIS
A competitive analysis enables you to stay atop of industry trends and ensure
your product is consistently meeting — and exceeding — industrystandards.

Benefits of conducting competitive analyses:

Helps you identify your product's unique value proposition and what makes your
product different from competitors', which can inform future marketing efforts.
Enables you to identify what your competitor is doing right. This information is
critical for staying relevant and ensuring both your product and your marketing
campaigns are outperforming industry standards.

Tells you where your competitors are falling short — which helps you identify
areas of opportunities in the marketplace, and test out new, unique marketing
strategies they haven't taken advantage of.

Learn through customer reviews what's missing in a competitor's product, and

consider how you might add features to your own product to meet those needs.

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 SWOT ANALYSIS

SWOT analysis — strengths, weaknesses, opportunities,

threats —

CONCLUSION OF SWOT ANALYSIS

A competitive analysis is a strategy where you identify major competitors and researchtheir
products, sales, and marketing strategies....................... Learn through customer reviews what's
missing in a competitor's product, and consider how you might add features to your ownproduct to
meet those needs.

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 TECHNICAL FEASIBILITY
Technical feasibility is a measure of the practicality of a specific technical solution and the
availability of technical resources and expertise.

It's the logistical or tactical plan of how your business will produce, store, deliver, and track
its products or services.

As the name implies, a feasibility analysis is used to determine the viability of an idea, such
as ensuring a project is legally and technically feasible as well as economically justifiable. It
tells us whether a project is worth the investment—in some cases, a project may not be
doable

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 MARKET ANALYSIS
A market analysis studies the attractiveness and the dynamics of a special market within aspecial
industry. It is part of the industry analysis

It helps you understand the volume and value of the market, potential customer segments
and their buying patterns, the position of your competition, and the overalleconomic
environment, including barriers to entry, and industry regulations.

How to conduct a market analysis

Now, let’s go into each step in more detail so you know exactly what you need foryour
market analysis.

1. Industry overview

In this step, you’ll describe your industry and discuss the direction that it’s headed.You’ll
want to include key industry metrics such as size, trends, and projected growth.

Industry research and analysis is different than market research. When you’re
researching your industry, you’re looking at all of the businesses like yours. Thisis
different than market research, where you are learning about your customers.

Your industry overview shows investors that you understand the larger landscape that you
are competing in. More importantly, it helps you understand if there’s goingto be more
demand for your products in the future and how competitive the industryis likely to be.

For example, if you are selling mobile phones, you’ll want to know if the demand for mobile
phones is growing or shrinking. If you’re opening a restaurant, you’ll want to understand the
larger trends of dining out. Are people eating at restaurants more andmore over time? Or is
the market potentially shrinking as consumers take advantage of grocery delivery services?

If you’re in the United States, the U.S. Census has excellent industry data available.I’ve also
found Statista to be useful. You should also look up your industry association—they often
have a wealth of information on the trends in your industry.

2. Define your target market

Your target market is the most important section of your industry analysis. This iswhere
you explain who your ideal customer is.

You may find that through the course of your analysis, that you identify different types of
customers. When you have more than one type of customer, you do what’scalled market
segmentation. This is where you group similar types of customers intosegments and describe
the attributes of each segment.

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You’ll need to start broadly and refine your research by defining the followingelements.

Market size

Unlike industry size, which is usually measured in dollars, your market size is how many
potential customers there are for your product or service. We’ve got a great method for
figuring out your market size that you can read about here.

Demographics

Describe your customer’s typical age, gender, education, income, and more. If you could
paint a picture of your perfect customer, this is where you’ll describe what theylook like.

Location

Where are your customers located? A specific country, region, state, city, county, you’ll
want to describe that here. You may even find that your customer base is segmented based
on location which can help you determine where you’ll be doingbusiness.

Psychographics

It’s here that you need to get inside the mindset of your customers, know their needs, and
how they’ll react. What are your customers’ likes and dislikes? How dothey live? What’s
their personality?

This piece can even help you better approach analyzing the competition.

Behaviors

This is essentially an extension of some of your psychographic information. Explainhow

your customers shop for and purchase products like yours.

Trends

Customer behavior is always changing. If there are trends that you’ve noticed withyour
target market, detail them here.

3. Competition

Your market analysis isn’t complete without thinking about your competition. Beyond
knowing what other businesses you are competing with, a good competitive analysiswill
point out competitors’ weaknesses that you can take advantage of. With this knowledge, you
can differentiate yourself by offering products and services that fill gaps that competitors
have not addressed.

When you are analyzing the competition, you should take a look at the followingareas.

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Direct competition

These are companies that are offering very similar products and services. Yourpotential
customers are probably currently buying from these companies.

Indirect competitors

Think of indirect competition as alternative solutions to the problem you are solving. This is
particularly useful and important for companies that are inventing brand new products or
services. For example, the first online task management software wasn’tcompeting with other
online task managers—it was competing with paper planners, sticky notes, and other analog
to-do lists.

How you’re different

You don’t want to be the same as the competition. Make sure to discuss how your company,
product, or service is different than what the competition is offering. For acommon business
type, such as hair salons, your differentiation might be location, hours, types of services,
ambiance, or price.

Barriers to entry

Describe what protections you have in place to prevent new companies from competing
with you. Maybe you have a great location, or perhaps you have patentsthat help protect
your business.

The best way to research your competition is to talk to your prospective customersand ask
them who they are currently buying from and what alternate solutions theyare using to
solve the problem you are solving. Of course, spending some time on Google to figure out
what else is out there is a great idea as well.

4. Pricing and forecast

The final step in a market analysis is to figure out your pricing and create a salesforecast
to better understand what portion of the market you think you can get.

Pricing your product or service

First, think about your pricing. Of course, you should ensure that your price is more than
what it costs you to make and deliver your product or service. But, beyond that,think about
the message that your price sends to consumers.

Customers usually link high prices to quality. But, if you are pricing on the higher endof the
spectrum, you need to make sure the rest of your marketing is also signaling that you are
delivering a high-quality product or service. From what your business looks like to its logo
and customer service experience, high-prices should come with a high-quality experience
during the entire sales process.

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On the other end of the spectrum, maybe you’re competing as a low-priced alternative to
other products or businesses. If that’s the case, make sure your marketing and other
messaging are also delivering that same, unified message.

Forecasting for initial sales volume

Once you have an idea of your pricing, think about how much you expect to sell. Your
industry research will come into play here as you think about how much of the overall market
you expect to capture. For example, if you’re opening a new type of grocery store, you’ll
want to know how much people spend on groceries in your area.Your forecast should reflect
a realistic portion of that total spend. It’s probably not realistic to gain 50 percent of the
market within your first year.

However, don’t make the mistake of assuming that you can easily get 1 percent of a very
large market. 1 percent of a 3 billion dollar market is still $30 million and even though 1
percent seems like a small, attainable number, you need to understand andexplain how you
will actually acquire that volume of customers.

When you build your forecast, use it as a goal for your business and track youractual
sales compared to what you had hoped you would sell. Tools
like LivePlan can help you automatically compare your forecast to your accounting data, so
it’s easy to do. But, even if you use a spreadsheet, tracking your progress will help you adjust
your business strategy quickly so that you can do more of what’sworking and less of what
isn’t.

Here is a summary of the steps including where to find the information:

1. Size of desks park = number of businesses in delivery area x number of employees (you
might want to refine this number based on the sector as not all employees havedesks)
2. Renewal rate = 1 / useful life of a desk
3. Volume of transactions = size of desks park x renewal rate
4. Value of 1 transaction = average price of a desk
5. Market value = volume of transactions x value of 1 transaction

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22
POSITIONING OF THE BUSINESS IN MARKET
How you differentiate your product or service from that of your
competitors and then determine which market niche to fill This is
created through the use of promotion, price, place and product.

There are several types of positioning strategies. A few examples are

positioning by:

 Product attributes and benefits: Associating your brand/product

with certain characteristics or with certain beneficial value
 Product price: Associating your brand/product with competitive
pricing
 Product quality: Associating your brand/product with high quality
 Product use and application: Associating your brand/product with a
specific use
 Competitors: Making consumers think that your brand/product is
better than that of your competitors

A Perceptual Map in Market Positioning

A perceptual map is used to show consumer perception of certain brands.

The map allows you to identify how competitors are positioned relative to
you and to identify opportunities in the marketplace.

An example of consumers perception of price and quality of brands in the

automobile industry are mapped below:

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COSTING AND PRICING OF THE SERVICE
Costs are the amounts that a business incurs in order to make goods and/or provide services.
Costs are important to business because they: Are the thing thatdrains away the profits
made by a business. Are the difference between making a good and a poor profit margin..

The expenses that go into providing a service are more subjective than the expenses that go
into making a product. How much you charge customers doesn’talways directly correlate
with the amount you pay to perform services.

In service industries, finding a target profit margin is not as simple. You don’t havean
original price to reference. Instead, your pricing formula for services should account for the
intangible aspects of running your business, such as time and value.

Your 5-step guide

Because there is not a set-in-stone method for pricing services, you have some
flexibility. Use the following six steps to learn how to price a service:

 Calculating your COS

 Determine your overhead percentage.

 Determine your rate.

 Calculate your price.

 Adjust your price.

Pricing Strategies for Service Businesses

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Pricing is one of the classic ―4 Ps‖ of marketing (product, price, place, promotion). It’s one of
the key elements of every B2C strategy.

Yet for many B2B marketers, the pricing strategy in their marketing plan is challenging to
write; many aren’t even involved in creating their pricing strategy.

There are many factors to consider when developing your pricing strategy, both short- and
long-term. For example, your pricing needs to:

Reflect the value you provide versus your competitors

Match what the market will truly pay for your offering

Support your brand

Enable you to reach your revenue and market share goals

Maximize your profits

Note: You can access guided pricing strategy templates and step-by-step instructions for
writing the pricing strategy section of your marketing plan in our marketing planning and
management app. Try it free!

When you offer a truly unique product or service with little direct competition, it can be
challenging to establish your price. Define a strong strategy and competitive analysis so you
can view:

What your prospects might pay for other solutions to their problems

Where your price should fall in relation to theirs

When your price, value proposition and positioning are aligned, you’re in the best situation to
maximize revenue and profits.

Deviating from Your Pricing Strategy

If sales are slow, many companies lower their price. That’s not always the best option. Here
are three price change examples:

HIGHEST PRICE AVERAGE PRICE LOWEST PRICE

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 Company B’s value The market cares most about
Company A is one of the best proposition is operational price because the product is
consulting firms in the world. excellence, so their price is viewed as a commodity.
Their consultants come from important. There’s a lot of
top schools, and they work Company C focuses on finding
competition and their product
with Fortune 100 clients to new ways to lower costs and
is only slightly better than the
implement complex, large- pass savings on to customers.
alternatives.
scale projects. Their value proposition is
Company B’s messages focus operational excellence and
Company A’s value on their product value with a they consistently deliver the
proposition is product secondary focus on price. same product at a better price.
leadership. Their clients are They regularly review the
buying the best expertise they market, run promotions, and Company C regularly
can find, and they’re less adjust prices to maintain their evaluates their competitors’
sensitive to price because they competitive position. prices to make sure they’re
care most about getting top delivering on their promise. If
talent. The company is also working a competitor runs a promotion,
to develop a premium product Company C counters with a
Therefore, Company A’s that can warrant a higher price. better one.
services can be priced as high
or higher than their
competitors.

What would happen if these companies used a different pricing strategy?

HIGHEST PRICE AVERAGE PRICE LOWEST PRICE

If Company B charges a If Company C’s prices rise in

By dropping their hourly rate, premium price for an average relation to those of their
Company A gains more product, they’ll have a very competitors, sales will
clients. They hire more difficult time generating plummet – their market is
consultants, but since they’re interest in their it. shopping on price, not factors
charging less per hour, they like product leadership or
can’t afford the same top-tier Yet Company B may be able
customer intimacy.
talent. to implement a small price
increase to raise revenue and If Company C cannot maintain
Company A is putting their profits; it depends how much its operational efficiency and
―prestige‖ brand in jeopardy. more its customers are willing cost leadership, it will need to

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 However, if there isn’t a to spend. develop new products or
strong market for prestige, this markets for its existing
strategy may be the best one By analyzing price sensitivity product.
for the company long-term. and testing different prices,
they can evaluate the strength
and potential of this new
strategy.

Do you see your company in one of these scenarios?

Best Case Neutral Case Worst Case

Company B charges an Company C provides business

Company A provides a average price for an average consulting services.
premium product, sold through product.
carefully-selected retail To grow, they drop their
outlets. When they’re behind their hourly rates by up to 40%.
sales targets, individual reps This gives them access to an
Their pricing is typically 15% are given the green light to entire new set of clients.
above the competition – discount if needed to meet
they’re the most expensive their sales quotas. Low rates mean they can’t
product in their class. afford the same top-tier
Management doesn’t want to consulting talent.
Their demand curve is get in a price war, but is
relatively inelastic, meaning willing to ensure that they hit The quality of their offering
that their market isn’t that their short-term numbers. suffers, and they end up
sensitive to price. providing mediocre service for
Management knows that they both markets.
Much of that results from the could spend more in R&D to
carefully selected positioning differentiate their offering and By lowering the price of their
and branding over the past five have greater pricing power, ―prestige‖ brand to access a
years. but they haven’t yet new market, Company C has
committed the budget to do so. increased its revenue, while
reducing its profit margin and
damaging its brand.

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 Not Sure Where to Start with Your Pricing Strategy?

Access detailed step-by-step plans in our new marketing website.

It’s free to use

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Pricing Strategy Key Concepts & Steps

Before you begin
It’s best to define your positioning, create your brand strategy, and identify your distribution
channels before you develop your pricing strategy in the marketing plan. By doing so, you’ll
ensure that your pricing reflects your value and reinforces your brand.

For example, if your method for delivering value is product leadership, you shouldn’t
discount heavily or compete on price; you should also minimize pricing conflicts with any
channel partners.

Your pricing influences how the market perceives your offering. If you’re perceived as a
commodity, you must either change the market’s perception via a new positioning strategy,
or compete on price and focus on innovating to keep costs low so you can still make a profit.
You may need to gather market research and market intelligence – either via your own
efforts, via third-party toolkits or applications, or by hiring a market research firm.

Match your pricing strategy to your value proposition

Your price sends a strong message to your market – it needs to be consistent with the value
you’re delivering.

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If your value proposition is operational efficiency, then your price needs to be extremely
competitive.

If your value proposition is product leadership or customer intimacy, a low price sendsthe
wrong message. After all, if a luxury item isn’t expensive, is it really a luxury?

Understand your cost structure and profitability goals

Companies calculate these costs differently, so verify the exact calculations your company
uses for

Cost of goods sold (COGS): the cost to physically produce a product or service

Gross profit: the difference between the revenue you earn on a product and the cost to
physically produce it
In addition, understand how much profit the company needs to generate. You’ll be far more
effective when considering discount promotions – you’ll know exactly how low you can go
and still be profitable.

Analyze your competitors’ prices

Look at a wide variety of direct and indirect competitors to gauge where your price falls. If
your value proposition is operational efficiency, evaluate your competitors on a regular basis
to ensure that you’re continually competitive.

Determine price sensitivity

A higher price typically means lower volume. Yet you may generate more total revenue
and/or profit with fewer units at the higher price; it depends on how sensitive your customers
are to price fluctuations. If they’re extremely sensitive, you may be better off at a much lower
price with substantially greater volume.

Estimate how sensitive your customers are to fluctuations – it will help you determine the
right price and volume combination. More importantly, you can estimate how a price change
can impact your revenue.

After Designing Your Pricing Strategy

Once you’ve finalized your pricing strategy in the marketing plan, it’s time to design
your marketing campaigns.

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 :

First, think about your pricing. Of course, you should ensure that your price is more than
what it costs you to make and deliver your product or service. But, beyond that,think about
the message that your price sends to consumers.

Customers usually link high prices to quality. But, if you are pricing on the higher endof the
spectrum, you need to make sure the rest of your marketing is also signaling that you are
delivering a high-quality product or service. From what your business looks like to its logo
and customer service experience, high-prices should come with a high-quality experience
during the entire sales process.

On the other end of the spectrum, maybe you’re competing as a low-priced alternative to
other products or businesses. If that’s the case, make sure your marketing and other
messaging are also delivering that same, unified message

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 SOURCES OF FUNDS
Most businesses, especially when they’re starting up or planning for expansion, faceperiods
when they need to rely on outside resources to stay afloat. Whether the funds come from the
owner’s pocket, accumulated business profits, or outside funding sources, they provide the
lifeline that keeps the business going when expenses exceed revenue for a prolonged period.
Use the information here to forecast how much money you need — and for how long.

To estimate the funding requirement your business faces, take these steps:

1. Create a realistic forecast of your financial situation.

Follow the steps for preparing a pro forma or estimated statement of income,
expenses, and profit, along with an estimated balance sheet and cash flow statement.

2. Estimate your funding need.

Use your financial forecasts, and especially your cash flow projection, to determine how
long you anticipate expenses to exceed revenue and by how much. Doing so helps you get a
handle on when you expect expenses to be incurred, when you expect revenues to roll in,
and the amount of funding you need in order to cover thegap.

3. Create a funding time frame.

After you establish how much funding you need, create a schedule for how long youneed
the funding to last before your business needs to become self-sufficient. This schedule,
called your time frame, should include dates by which you plan to meet revenue-generating
milestones — for example, first customer, first major contract, first $10,000 in sales, and so
on — that you can monitor as indicators that your business is on track to achieve
profitability before funding runs out.

As you forecast how long your funding needs to last, be aware of these terms:

Runway: The amount of time funding needs to last before your business becomes
profitable and self-sufficient or until additional funding will be required

Burn rate: The speed with which you expect to spend the funding you’ve raised —in
practical terms, the amount of cash required each month to cover the costs of staying in
business

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 LIMITATIONS OF THE SERVICE
The business plan is only a plan and does not assurance achievement. For
example, sales may be lower than predicted as they can be affected by a range
of issues. There are some limitations to the business plan. This is why those
plans can’t be successful. These limitations or pitfalls are as follows:

 Lack of realistic goals: Some entrepreneurs set such goals that are not
attainable;
 A problem in determining time-period; if the plan is too rigid some
problems may arise, it must be flexible to adapt to market changed.
 Failure to anticipate a future problem;
 Lack of sufficient information;
 Lack of commitment: Starting is good but the spirit of an initiative
declines;
 Lack of practical experience;
 Lack of alternative plan;
 Insufficient knowledge about the market;
 No consideration of SWOT: SWOT means strength, weakness,
opportunities, and threats;
 Unnecessary delay in project report formulation and implementation;
 A problem in priority consideration;
 Lack of efficient manpower;
 Lack of flexibility;
 A wrong assessment of the market.

7 MAJOR LIMITATION
Planning is costly: ADVERTISEMENTS: ...
Planning is a time consuming process: ...
Planning reduces initiative of employees: ...
Reluctance to change: ...
Capital invested in fixed assets limits planning: ...
Inaccuracy in planning: ...
Planning is effected by external limitations:

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 How Customer Service Technology Will Changethe
Future of Customer Service
As companies begin to realize the value added by having a first-rate customer service team,
there have been continuous and rapid developments in the industry. Whether it is the
introduction of global customer service teams, the evolution of livechat, or even mastering
the art of writing perfect emails, the field is under constant evolution.

Here is a list of the 5 biggest future developments in customer service.

Data Analytics
Self-service
Artificial Intelligence (AI)
Personalization
Social Media

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 CONCLUSION

Customer support has come a long way from being considered a cost center to a profit center. With
businesses becoming customer-centric, support is proactively moving towardscreating an
experience in itself. From analyzing data to using social media for making customer support better,
the changes are taking place rapidly which couldn’t be possible if not for technology. On the whole,
the future of customer support holds great promise for brands that are excited about creating great
customer experiences.

Providing that the company is able to acquire its funding requirements,

Achieve operational success for many years to come

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