ENTREPRENEURSHIP AND LEDERSHIP

(ASSIGNMENT)

ON

BUSINESS PLAN
Business Plan
Logo:
INTRODUCTION

 Mission
Our Mission is to provide global standard and parking place at affordable price to the customer
with end to end solution and build our broad base as qualified service provider. Moreover to be
the leader in providing Car parking solutions for Public and Private use across the Globe.

 Vision
Our clear, visionary standards are helping us to develop innovative products and services in the
car park management sector. Our ABACUS product line can be a technology leader about
integration and networking. We will offer our customers the best service quality and excellent
local & global customer services.

We shall make your car parks ready for the future.

To excel to be the BEST Car Parking Solution Provider across the Globe, by offering Optimum
but Simple Solutions, Utilizing Minimal Energy and at par with latest Technologies Globally.

 Our Objective

 Efficiency
A key factor in parking garage development is always building size. Compared to conventional
parking facilities, Automated Parking Systems require an area approximately 70% smaller and a
50% smaller volume on average to park an equivalent number of cars. This will give us lots more
options such as adding more parking spaces, utilizing more area for non-parking purposes or
green spaces, etc.

 Feasibility & Profitability

Car parking and parking garage development often have a direct effect on the feasibility of a real
estate project. The design flexibility of Automic Parking Systems like us can help in terms of
both feasibility and profitability by enabling parking to be in areas where conventional parking
won't fit. The possible locations for APS are virtually unlimited: above ground, underground,
freestanding, underneath or integrated into existing buildings and even very narrow or irregularly
shaped areas.

 Eco-Friendliness & Sustainability

Automated Parking Systems can reduce CO2 emissions by 85% or more by eliminating the need
for cars to drive and idle while searching for parking spaces. For parking garage development,
APS typically require fewer building materials, a much smaller excavation volume, shorter
construction time and reduced construction disruption. For the ultimate in sustainability,
Automated Parking Systems are most often the least expensive option for underground parking
garages.

 Inherent Safety & Security

The safety and security of cars, drivers and pedestrians is always a priority for us. Compared to
conventional parking garages, Automated Parking Systems are inherently much safer and more
secure because they remove driving and pedestrians from the parking area. No driving means no
car damage or possibility of stolen cars. No pedestrians mean no need to walk through dim,
shadowy parking areas and no opportunity for theft, vandalism or even more worse.

 WHY DO WE NEED AUTOMATIC PARKING?

 Small parking space in Bangalore

Currently large parking space is required, added to shortage of Parking space in MG Road areas,
hence cars are being parked on Roads/ Cross Roads, which in turn leads to congestion and
blockage of traffic flow.

Solution: Optimum Utilisation of underground/ above ground space and build multilevel parking
spaces.

 Inconvenience
People visiting MG Road areas have to keep searching for Parking slots, thereby wasting time.
Solution: People can directly drive into our parking location and walk off and retrieve It within
hardly 90 secs.

 Increase in Traffic density

With increase of vehicles on the road, year on year, and lack of parking infrastructure, roads Get
choked.

Solution: Convert all the existing parking lots which are of single tier parking to Multilevel
mechanized so that it can cater for any increase of traffic density in future.

 High prices of real estate

As real estate price is very high, all the builders will try to utilize the space for Commercial
application rather than Parking.

Solution: With our idea spaces being provided, real estate revenues can also be increased.

 Theft / Vandalism of cars

As cars are parked in Open roads without any Security, this leads to theft or damage of cars.

Solution: All the parking lots will be provided with CCTV, Access cards for parking and retrieval
and continuous monitoring of the parking lots, hence this issue can be 100% addressed.

 High Pollution
Vehicle volumes are increasing, and people keep searching for parking lots, which in turn leads
to lot of emission and consumption of fuel.

Solution: Lesser emissions (Eligible for Carbon credit as per KYOTO protocol) and lesser
consumption of fuel.

 Key to Success
We will use High-performance thermal printer for problem-free ticket issue
Barcode scanner and EasyMove equipment for contactless access and simple processing of
season parker cards

Flexible payment processes due to acceptance of coins, banknotes and credit/debit cards
The Government had made a new rule from December 1 2017 there would RFID mandatory for
all the vehicles which mainly included four wheelers and the government is working on
implementing the same on two wheelers.

RFID - Radio Frequency Identification (RFID) technology for making toll payments directly
from the prepaid or savings account linked to it and is affixed on the windscreen of the vehicle
and enables the commuter to drive through toll plazas, without stopping for cash transactions.

Same concept would be used in our parking system where the entry time would be recorded and
on the vehicle parking exit the amount would be deducted from the tag based own the number of
hours parked.

By using this technology and constructed such type of a sophisticated parking system the aim of
our company is to reduce traffic on the road where usually parking is done in a in appropriate
way and causes problems for other commuters. There would be a reduced No parking of vehicles
on the road. And the vehicle owners tension about the vehicle ,like what happened to the vehicle
and other tensions would be reduced. A reduced congestion and a vehicle free passage could be
created in front of the shopping areas. There would be cycles as well as eco friendly or CNG
powered vehicles to drop from the parking spot to the desired shopping spot. The company is
planning to make the entire system run on solar energy for a backup the normal electricity supply
would be considered.

Market Overview
Smart parking systems help the vehicle user to find the nearest parking space and provides
information on the availability of parking slots in the parking area. The smart parking systems
market includes sensors, real-time data and smart-phone-enabled automated payment systems
that allow the users to reserve parking slot in advance. The systems identify the exact state of a
parking space, if vacant or occupied, and examines and transmits information to various sources,
which include mobile applications and web-based applications.

The parking systems involve a wide range of technologies and equipment that suits to various
parking lots. The parking technologies can be designed and modified as per the requirements of
various parking spaces available. Residential buildings and complexes have limited flow of
passenger cars and SUVs although places like hospitals, shopping malls and corporate hubs have
many vehicles coming and exiting from the parking areas on a regular basis. Therefore, the
demand for smart parking systems is increasing significantly. The smart parking systems uses
well-improvised technologies and equipment for consistent operation during the forecast period
(2019-2023). The systems are expected to expand its reach from parking at shopping malls and
company parking to various multiple platforms, including public parking by giving parking
information, based on cost in real time. Additionally, smart parking systems play a major role in
reducing the CO2 emission and help traffic movement in the city more efficiently.

Market Dynamics
The parking sensors have emerged as the largest segment in the global smart parking systems
market. In 2016, Asia-Pacific was among the fastest growing markets, due to growing awareness
of end-users about smart parking systems in the region. With the sudden surge in the number of
passenger cars in China and India, initiatives taken by different state governments such as smart
cities mission is expected to develop better parking and traffic management solutions in India.
Due to huge adoption of parking management systems in different cities of Europe, the region
dominated the global smart parking systems in 2018. Under the market segmentation by
technology, the parking sensor dominated the market as compared to other components in the
global smart parking systems market in 2018; however, the steering angle sensors is growing at a
faster rate than other technologies.

Market Trends
The key trend observed in the global smart parking market includes increased consumer
preference toward comfort and luxury that leads to high level of competition between road side
parking to offer advanced driver assistance systems. The systems allow users to replace its daily,
manual cash payments with account invoicing and application payments from their phone. The
smart parking systems are being widely adopted by major cities and universities, especially in
Europe and North America. In Europe and North America railway platforms, airports, public
places and corporate complexes, authorities are planning to set up smart parking systems for
better management of their parking areas and heavy traffic congestions.

Growth Drivers
The government initiatives toward the adoption of smart parking systems is one of the major
factors driving the smart parking systems market. The demand from upcoming smart cities is
expected to drive the global market. With the growing number of hospitals, shopping complexes
and corporate hubs, the demand for smart parking systems is increasing. Another important
factor driving the market is easy accessibility of smart parking systems, its economic nature and
ability to reduce carbon footprints in the atmosphere. It accesses and maps the status of vacant
parking spaces from any location through mobile-based apps or web browser. Thus, it
significantly reduces the risk of finding the parking spot and also reduces unnecessary travelling
time of vehicles across filled parking slots in a city. The smart parking systems reduce CO2
emissions in urban cities by bringing a plunge in search for vacant parking lots by car owners
and helping them in properly managing their parking availability and reducing traffic
congestions.

Growth Restraints
The major challenge associated with smart parking systems is lack of standardization and the
high set up cost, which requires huge investment and restricts the growth of the smart parking
systems market. Additionally, lack of coordination between software developers and hardware
providers affects the adoption of smart parking systems; however, to overcome these issues, the
component manufacturers have significantly reduced the costs of sensors and hardware-based
solutions, allowing cities and companies to gather detailed new data on transportation patterns.

Competitive Landscape
The global smart parking market reported a consolidated structure in 2016, where the market is
led by a few global players. The key regional players operating in the market include Valeo S.A.,
Continental AG, Robert Bosch GmbH, Kapsch TrafficCom AG, Cubic Corporation and TKH
Group-Park Assist.

Market Segmentation
By Systems
Guided
Smart park
By Technology
Ultrasonic sensors
Radar sensors
Image sensors

By Component
Hardware
Software
Services

By Solution
Security and surveillance
Valet and parking reservation
License plate recognition

By Vertical Type
Government and municipalities
Commercial institutions
Corporate institutions
Transport facilities

GEOGRAPHIC SEGMENTATION

By Region
Urban
Semi - urban

Marketing Strategies

SWOT Analysis:
Strength:
1. Presence of lot of vehicles looking for parking spots.

2. Unique concept.

3. Has no competitors in local areas.

 4. Has lot of offices and other utilitarian buildings in surrounding areas.

5. Decent investment capacity.

6. Located in an easily accessible area.

7. Good security systems and fire control systems.

8. Availability of technically skilled people.

9. Very soon government support in various forms.

10. Great for restricted parking spaces.

Weakness:
1. Parking is usually viewed as high crime rate area.

2. Non availability of technical equipment’s and staff at the right time to cater greater
demand.

3. Non availability of Government help at the right time.

4. Limited space.

5. Presence of namma metro.

6. Limited flexibility in pricing.

7. Government regulations.

Opportunities:
1. Growing demand for parking space.

2. Growing demand for security of vehicles.

3. New technological innovations.

4. Availability of Government support as they are trying curb down parking problem in that
area.

5. High potential area providing good demand, which enables expansion of business.

6. National and international expansion.

Threats:
1. Entry of foreign players.
 2. Limited financial funding.

3. Development of new improved system.

4. Insurance costs are increasing continuously.

5. Increasing good specialised service might give way for increase in price.

Five Forces Model:

Bargaining power of Buyers:
1. The bargaining power buyers will be due to small differentiation in service offered.

2. They can bargain in terms of price.

Bargaining power of supplier:

Bargaining power of suppliers is quite high in this case because, our company needs
constant human resource, spare parts and other technological assistance etc.

Threat of new entrants:

As there is lot of restriction for parking spaces, Threat of new entrants is relatively low. And
moreover capital requirement is quite high and the adequate technical support is not easily
available, we can say that new players will behaving hard time in entering this sector.

Threat of substitutes:
1. It is quite high as lot of people park their vehicles on road side.

2. There is also presence of namma metro and other public transport terminals, where
parking facilities are available.

3. People can also use metro and other public transports to come to M.G. Road.

Rivalry:
1. Our major business is to provide secured parking facility. There are other companies who
offer such kind of facility. These companies also give updates on availability of parking
spaces by joining forces with local players. But we don’t join with the local players,
which gives a good opportunity for others to join forces and become competitors.

2. So, rivalry will be high.

 Marketing Plan
Smart park intends to maintain an extensive marketing campaign that will ensure maximum
visibility for the acquired units in its targeted market. Below is an overview of the marketing
strategies and objectives of the Company.

Marketing Objectives
 • Establish relationships with other real estate brokers and agents within the targeted
market.

 • Implement a local campaign with the Company’s targeted market via the use of flyers,
local newspaper advertisements, and word of mouth.

 • Develop an online presence by acquiring accounts for major online real estate portals.

Marketing Strategies
Ongoing parking space renter marketing will be the most difficult portion of the marketing
strategy. This task will be accomplished through the business’s broad marketing campaign
throughout its targeted market. Primarily, Mr. Gagan intends to use local real estate brokerage
firms to place vehicles with the Company’s retail focused parking garage. In addition to using a
real estate broker, Mr. Gagan intends to develop his own marketing strategies that will further
increase the visibility of the business’s retail store units. This is especially important with the
current real estate market environment. Smart Park will also use an internet-based strategy. This
is very important as many people seeking real estate for parking use the Internet to conduct their
preliminary searches. Mr. Gagan will register Company and its initial Parking Garage facility
and subsequent properties with these online portals so that potential renters can easily reach the
business. The Company will also develop its own online website. The Company will maintain a
sizable amount of print and traditional advertising methods within local markets to promote the
property that the Company is renting.
And the structure of the smart park will be as shown above

Financial Plan
Investment:
The company preliminarily will be started with the investment from our partners to an extent
and also we the promoters owe our fixed assets to the banks through which the lump sum of
amount can be gathered and also upon the completion of the assembling unit and also upon the
going of the business on track we will also owe our company’s fixed assets and enter into the
money market for short term loans which may be used for the working capital.

And the investment for the company would be around 3 crores in the beginning and as send
earlier Mr. Gagan will see the real estates and the cost of the land and in return he would be
getting 33 percentage shares of the company and the remaining cost of the company will be
maintained and contributed by us and also through the some financial institution and as it is also
involved the government we would also be getting the amount for the government as well and
we are expecting an annual revenue growth rate of 6% per year and the company will not seek
debt financing in the first three years of the operation to avoid the debt trap or for the betterment
of the company and the company revenues can change depending on the general economic
climate of the real estate industry. In times of economic recession, the Company may have issues
with its top line income and rental income may decrease. However, the highly recurring nature of
the smart park vehicle space income streams will ensure that the business is always able to
maintain profitability and a positive cash flow.

And we will also get the investment from the competition which our team is selected to finial
round which is held in Dubai which promotes the startup company around the world and the
investment for the project is decided and the division of the shares of the company is done
internally and which would be given to the public when the company is incorporated because it
is a confidential matter which cannot be disclosed to the public before incorporation of the
company

Breakeven Analysis:

Our assumption is that per month running costs which include our full payment of salaries, rent,
app maintenance and an estimation of other running costs. Our sales will be never be low but the
profit would be low initially and with the passage of time the profit of the company will be
increased and expenses will be decreased by analyzing the threat. When there is breakeven point
revenue and expenses will be equal and from there profits will be increased.

And we are expecting the break even point if started in 2019 would be achieved in late 2020
around December or early 2021 and we are very confidence about that and we will try to bring
the break even point to late 2019.