Project on Entrepreneurship Management

Business: Snooker Club

This project is based on: entrepreneurship management

This project is presented to: Prof. Samir Charania

This project is presented by: Jason Amaral – 01

Anand Surve – 22

Karl Fernandes – 05

Index

Introduction to entrepreneurship

Setting up the enterprise

Planning

Name of the club

Location of the club

Competition

Sources of funds

Finance

Legal formalities and documentation

Marketing

Human resources

Internal economies and diseconomies of scale

External economies and diseconomies of scale

Conclusion

INTRODUCTION TO ENTREPRENEURSHIP

Many definitions of entrepreneurship can be found in the literature describing business processes. The earliest definition of entrepreneurship, dating from the eighteenth century, used it as an economic term describing the process of bearing the risk of buying at certain prices and selling at uncertain prices. Other, later commentators broadened the definition to include the concept of bringing together the factors of production. This definition led others to question whether there was any unique entrepreneurial function or whether it was simply a form of management. Early this century, the concept of innovation was added to the definition of entrepreneur-ship. This innovation could be process innovation, market innovation, product innovation, factor innovation, and even organisational innovation. Later definitions described entrepreneurship as involving the creation of new enterprises and that the entrepreneur is the founder.

An entrepreneur is a person who has possession of a new enterprise, venture or idea, and assumes significant accountability for the inherent risks and the outcome. He or she is an ambitious leader who combines land, labor, and capital to often create and market new goods or services. ... The term is a loanword from French and was first defined by the Irish economist Richard Cantillon. Entrepreneur in English is a term applied to the type of personality who is willing to take upon herself or himself a new venture or enterprise and accepts full responsibility for the outcome. Jean-Baptiste Say, a French economist, is believed to have coined the word Entrepreneur first in about at 1800. He said an entrepreneur is "one who undertakes an enterprise, especially a contractor, acting as intermediatory between capital and labour".

Entrepreneurship is often difficult and tricky, resulting in many new ventures failing. The word entrepreneur is often synonymous with founder. Most commonly, the term entrepreneur applies to someone who creates value by offering a product or service, by carving out a niche in the market that may not exist currently. Entrepreneurs tend to identify a market opportunity and exploit it

by organizing their resources effectively to accomplish an outcome that changes existing interactions within a given sector.

SETTING UP THE ENTERPRISE

This business is a snooker club started by three friends who are working in a call center and are good snooker players. A good study has been done about the game, the tables, the que sticks and the balls used in snooker. The initial funding of the project will be done by the three partners and a small amount of loan will be taken from SBI (State Bank of India).

Planning

Definition:

Planning is deciding in advance what to do, when to do, how to do & who is to do it.

Management planning involves development of objectives ,policies, procedures for a systematic functioning within the organization.

What is planning?

It is deciding things in advance. It is very important in our day to day to life. It is even important before starting up a business because if u plan before hand it minimises the risk in the business. The other advantage is that, it helps in optimum utilization of resources. It also focuses on future goals.

Steps involved in planning:

Analyzing of internal environment. Analyzing of external environment. Setting up of objectives. Framing of alternative plans. Studying the alternative plans. Selecting the best plan. Establishing the sequence of activities. Implementation Review & Feedback.

Planning is repetitive process. It should not stop but go on. So before starting up our Snooker business all the three partners should come together for brain storming i.e. each partner will lay down his ideas & the best ideas will be selected for the welfare of the business. A proper strategy will be implied by us for growth of our business.

NAME OF THE THE CLUB

The naming of the club is important as it will have its own identity. The name of the club is JAK SNOOKER AND POOL CLUB. The name is derived from the initials of the three partners i.e. Jason, Anand and Karl.

LOCATION OF THE CLUB

The club will be located at Vasai since the craze for snooker is very high in Vasai and the surrounding areas. The starting location of the club will be a rented warehouse of 500 sq.ft. in the market area at Vasai west. A deposit of Rs. 1,50,000 will be paid initially and a rent of Rs. 10,000 will be paid every month.

LocationThe location of the snooker club is very important for the success of your business. You have to find a place which is accessible to all people easily. It would be great if you can start a snooker club at a popular place like near a shopping mall, Movie Theater or a college, as it would attract lot of people. However, buying a place at a popular area can be very expensive.

Instructions

1. Step 1

Put together a business plan so you are sure you have everything you need to start your business. This is essential especially if you need backing for your business. A business plan will make a bank take you more seriously than if you just approach them asking to borrow money for a business.

2. Step 2

Find a place to open your snooker club. A good location can make or break your business. You may know there is a need for a snooker club in your neighborhood, so look for a vacant place there to start your business.

3. Step 3

Look for a supplier for your snooker club. This is another important factor for the success of your snooker club. You need to make comparisons of different suppliers so you get the best deal for your snooker club. The lower the cost is to you the better, since this will enable you to keep your prices low but still make a profit.

4. Step 4

Decide on a catchy name for your snooker club, since this is a big draw to your new business . Select something memorable because word of mouth is important and you want something that people won't forget.

5. Step 5

Make sure you advertise your snooker club. You can start with flyers and signs in the window of your store. If you are in a high traffic area, people will see that you are opening and spread the word. Newspaper advertisements are also a good bet, especially ones in a small paper that is exclusive to your area.

6. Step 6

Set up your snooker club and prepare to open on the date you've advertised the opening to be. Hire any staff you may need, open your snooker club sand enjoy your business.

COMPETITON IN THIS INDUSTRY

The competition would be from other snooker and pool clubs in the surrounding areas. The other competition would be from play station parlor and other gaming parlors.

SOURCES OF FUNDS

The total cost of starting the project is Rs. 6,30,000. The three partners would invest Rs 1,50,000 each and a loan of Rs. 1,80,000 would be taken from SBI (State Bank of India) @ 10% interest.

Owned funds Amount (Rs)

Borrowed funds Amount (Rs)

Jason Amaral 1,50,000 Loan from SBI (State Bank of India

1,80,000

Anand Surve 1,50,000Karl Fernandes 1,50,000Total 4,50,000

FINANCE:

Starting a snooker club needs finance more than what would be sufficient for other business plans. To start a gym business, you would have buy or rent a place, do up the interiors and also buy exercise equipment. According to the business plan you make, you have to work out on how much money you would need. To help out in starting a snooker club, you can either take a loan from the bank or find a person who is interested in becoming your business partner.

Total budget:

Fixed cost:

1. Two tables 1,00,000 each =200000

2. Land on rent (deposit) (800 sq.ft) =150000

3. Furniture, AC’s, coffee machine=150000

4. Que-sticks=15000

5. Music system=5000

6. Coloring of the warehouse, repairing =100000

7. Govt.license for shop & police clearance=10000

8. TOTAL=630000.

After expenses:

1. Per game=rs.70

2. Minimum games in a day 40 on both tables=70*40=2800 in a day.

3. In a month=2800*30=84000

4. Monthly rent=10000(bal.74000)

5. Electricity bill=5000(bal.69000)

6. Salary to receptionist & house keeping will be 4000+1000 respectively=5000(bal.64000).

7. Remaining BAL=Rs.64000.

8. Entertainment charges for both tables 2000*2=4000(bal.60000)

9.60000*12months=Rs.720000

10.60000*10.5 months=Rs.630000

11. Break even point after 10 months & 15 days.

12. Total earnings after,

3months=60000*3=180000

6months=60000*6=360000

9months=60000*9=540000

12months=60000*12=720000

13.90000 profit after a year.

14.1st year rs.2500 per partner per month.

15. Next year per partner rs.20000 per month.

LEGAL FORMALITIES & DOCUMENTATION TO START UP BUSINESS:

-Government License/ municipal permission

-NOC (No Objection Certificate) society & neighbouring societies.

-Police clearance from local police.

-Entertainment Taxes.

A government license/ municipal permission is required to start a business so that the government is aware of the business being carried out in the particular area.

An NOC (No Objection Certificate) has to be acquired if the warehouse is situated in a residential apartment and also from the neighbouring apartments.

A police clearance is required from the local police to set up this club since it is important for the police to know the past of the people involved in the business.

A certain amount of tax has to be paid at the start of the business as it is an entertainment to the masses.

MARKETING:

The club would be mainly marketed to the youth and the working class people. Since college youth are more fascinated by games like snooker and pool a lot of advertising would be done near and outside the colleges in Vasai and the neighbouring areas.

-Advertisements by local newspapers, cables & by brochures.

-A tournament will be organized for all snooker players through which the club will get promoted among the different people who would participate in the tournament.

-Hoardings

-Advertising face to face.

-If both tables are busy then other games like chess & carom will be available for waiting customers.

-There would also be refreshment like a coffee machine or a juice machine.

HUMAN RESOURCES:

In this business a lot man power is not required since it is not a big place. Any one of the three partners will be present in the club.

-One receptionist to handle the front desk and give information to the customers.

-One person to take care of the cleaning and maintenance of the place.

INTERNAL ECONOMIES OF SCALE

• They are benefits that accrue to A SINGLE FIRM as it expands.

• They cause a reduction in the firm’s average cost of production as output increases.

INTERNAL DISECONOMIES OF SCALE

• They are problems which are experienced by A SINGLE FIRM as it expands production beyond a particular limit.

• The over-expansion of a firm’s output would lead to rise in costs and thus covert economies into diseconomies.

• This occurs due to factors like:

• fixed factor fatigue and / or breakdown; and

• possible use of inferior or less efficient inputs, due to a lack of sufficient better quality inputs

OUTPUT

AVERAGE COST

Impact on short run Average Cost (AC)

Internal EoSInternal DoS

Optimum level of production

AC curve

20

EXTERNAL ECONOMIES OF SCALE

• They are those advantages which accrue to each member-firm as THE INDUSTRY grows.

• They accrue due to factors outside the influence of a single firm.

• They lead to decreasing long run average costs for firms within the industry.

EXTERNAL DISECONOMIES OF SCALE

• They are those disadvantages which accrue to each member-firm as THE INDUSTRY grows.

• They accrue due to factors outside the influence of a single firm.

• They lead to increasing long run average costs for firms within the industry

CRS

LONG RUN AVERAGE COST

OUTPUT

AVERAGE COST

O

Ex DisEcoEx Eco

Conclusion

The world won’t conform to your business plan, but you still need one. The more prepared you are, the better equipped you’ll be to deal with random things happening.

Setting up a business needs time, effort and capital. A business should be set up with long term goals in mind.

Profit making should be one of the top priorities because the more revenue that is earned just proves how successful the business is.

Get your nearest and dearest onside. My family knew that starting my own firm was what I really wanted to do. Their emotional support was absolutely crucial. My dad’s assistance with the accounting was also very useful.