Business Plan Wealth X Finyyy.docx

Business Plan On “Wealth X Financial Advisory“

Submitted Toward the Partial Fulfillment of the Requirement for the Award of the Degree of Master of Business Administration (F&C)

Submitted To. Dr. Mohd Arif Assistant Professor. Institute of Management Sciences. University of Lucknow

Submitted By Ravi Ranjan Bharti MBA (F&C) -IVth 180013160065 Batch: 2017-2019

Institute of Management Sciences University of Lucknow (New Campus) Lucknow.

CERTIFICATE

DECLARATRION

I RAVI RANJAN BHARTI, Roll No. 180013160065 hereby declare that the business plan on “WealthX Financial Advisory” submitted by me in partial fulfillment for the award of the MBA degree from University of Lucknow, IMS Lucknow is an outcome of my own efforts and is an original piece of work. It contains nonmaterial previously published or written by any other person, nor any material which to a substantial extent has been accepted for the award of any other degree/diploma of any other Institute/University, except where due acknowledgement has been made in the text.

RAVI RANJAN BHARTI

AKNOWLEDGEMENT

I am indebted to my course coordinator Dr. Md. Arif who gave me guidance,encouragement and inspiration throughout the project. I am very grateful to him for his support that enabled me to enhance my knowledge and helped to draft the business plan. I also express my sincere thanks to him.I would also like to thank Prof. Vinod Singh ,OSD, IMS , Lucknow University, for guidance and providing required facilities and information for completing the plan. It was their encouragement that support and co-operation, which made me, give some meaning to my efforts RAVI RANJAN BHARTI Roll No-180013160065

EXECUTIVE SUMMARY

INTRODUCTION AND DESCRIPTION OF VENTURE Wealth X financial advisory is a new sole proprietorship business owned by Mr. Ravi Ranjan Bharti, serving the city of Lucknow . The firm provides services like financial planning and wealth management. The firm will be serving the urban area of city. The scope for financial advisory business is very vast since the people are now realizing the essence of financial planning and the upper middle class base is also increasing . The aim of firm is to financially educate people regarding their investment and also provide quality follow up services . Financial planning is very important for every age group , starting from childhood till retirement age.

ENVIROMENTAL AND INDUSTRY ANALYSIS Talking about financial service industry wouldn’t be complete without first talking about financial advisors. A financial advisor may create financial plans for clients or sell financial products, or a combination of both.The financial industry is still yet to be develop and has huge potential making it a very attractive industry and environment is also in favour.the market is developing at very good rate . ORGANISATIONAL AND MANAGEMENT PLAN The Wealth x Financial advisory is Sole proprietorship and will be solely managed by Ravi Ranjan Bharti himself ,since the it is sole proprietorship the business is small and easy to mange ,so there is no need to hire additional management team .Ravi himself is capable in managing the daily affairs efficiently. MARKET ANALYSIS Wealth X financial advisory will be marketing their services to two different groups of people, those in need of investing advice, and those that are in need of estate planning help. These two groups will be targeted through networking activities and public seminars. It”s competitive advantage of thoroughness of services offered as well as in-depth research will turn prospective clients into long-term customers. PRODUCT/SERVICEs:Our business offering are listed below;

•

Investment (Business Portfolio) Management

•

Financial Advisory Services

•

Wealth Creation and Wealth Management

•

Asset Management

•

Mortgage, Pension, Retirement and Investment Advisory Services

•

Income Tax Preparation Financial Auditing

•

Estate Planning

•

Budgeting and Financial Planning

•

Accounting and Financial Services Consulting

•

Tax Consulting

•

Insurance Consulting

STRATEGY Our Vision StatementOur vision is to provide our clients with highly professional financial advisory services; giving them good value for their money.

Our Mission StatementOur mission is to make available professional and trusted financial advisory services that assist individual and corporate organizations in operating sustainable.

ObjectiveTo increase the number of clients served by at least 10% per year through superior performance and word-of-mouth referrals.

OPERATIONAL PLAN

The Firm will operate 6 days a week from monday to saturday , the timing for walk in service is from 10:30 am to 6 pm.the firm will be closed on sundays .The customer not only can get the the sevice through walking in but also can connect through telephone and website of the firm.

MARKETING PLAN

Marketing Strategy WEALTH X FINANCIAL ADVISORY will be offering public seminars on estate planning and financial planning in Lucknow once or twice a month. These workshops will be have subsidized rates and encourage people to attend and learn as much information as possible. These seminars will typically take place in a public building and offer a general discussion on the subject. It will caution people against solely using this information to make decisions

HUMAN RESOURCE PLAN The Wealth x Financial advisory is Sole proprietorship and will be solely managed by Ravi Ranjan Bharti himself ,since the it is sole proprietorship the business is small and easy to mange ,so there is no need to hire additional management team.Ravi himself is capable in managing the daily affairs efficiently.

PERSONNEL Ravi will be working full time for Wealth X financial advisory. In addition to himself, Ravi will hire an administrative assistant . This person will be full time and will help out in many different ways. He will be paid a salary of rs 10000 per month ,he will be responsible for cleaning ,opening closing office etc

FINANCIAL PLANThe wealth x assumed the growth in business by 15-20% per year based on analysis of the industry and market. The growth rate assumed here is very realistic assumption of 15%.There is also 1 lakh is required as capital adequacy as directed by SEBI.Ravi will self fund the business and this will help him in keeping Wealth x financial advisory from burdening of any liability.

EXIT STRATEGYThe only option left in unfavorable condition is to dispose off the the assets held by wealth x after clearing all dealing from existing clients because business too small too acquire other competitor business.

Table of Content Chapters No.

Chapter Name

1 2 3 4 5 6 7 8 9 10 11

12

Certificate from Institute Declaration Acknowledgment Executive Summary Introduction Description of Venture Environmental and Industry Analysis Organizational and Management Plan Market Analysis Product/Service Strategic Plan Production and Operational Plan Marketing Plan Human Resource Plan Financial Plan Exit Plan

Page No. ii iii iv v 1 2 5 12 13 16 17 19 20 24 25 28

CHAPTER 1: INTRODUCTION

Wealth X financial advisory is a new sole proprietorship business owned by Mr. Ravi Ranjan Bharti, serving the city of Lucknow . The firm provides services like

financial planning and

wealth management. The firm will be serving the urban area of city. The scope for financial advisory business is very vast since the people are now realizing the essence of financial planning and the upper middle class base is also increasing . The aim of firm is to financially educate people regarding their investment and also provide quality follow up services . Financial planning is very important for every age group , starting from childhood till retirement age. Talking about financial service industry wouldn’t be complete without first talking about financial advisors. The basic responsibility of a financial advisor firm is to offer their clients with financial products and services, subject to the licenses / professional certifications they possess and the training they have had. A financial advisor may create financial plans for clients or sell financial products, or a combination of both. Furthermore, financial consulting firm provide their customers with specialist advice on how to manage their finances. They carry out their jobs by researching the marketplace and recommending the most appropriate financial products and services available. They also ensure that their clients are aware of the product and also understand the product that best meet their needs and before sealing a business deal. Financial advisors are known to sell some financial products such as; employee pension schemes to companies or offering mortgage, pension or investment advice to private clients who can afford it. Some financial consulting firm are generalists; they offer financial related advice to clients in all of these areas, as well as saving plans and insurance.

Our Vision StatementOur vision is to provide our clients with highly professional financial advisory services; giving them good value for their money. We strive to handle each client with accountability and responsiveness, as if we are managing our own finance. We focus our attention on the providing workable financial solutions for our clients so that our clients can focus their attention on other aspect of their lives. Our vision reflects our values: integrity, service, excellence and teamwork.

Our Mission Statement

Our mission is to make available professional and trusted financial advisory services that assist individual and corporate organizations in operating sustainably. We provide workable financial advisory services in combination with our own business backgrounds, and deliver valuable services in a timely and cost-effective way. Objectives

The objectives for the first three years of operation include:

•

To develop a sustainable financial management company that generates value for their

customers. •

To increase the number of clients served by at least 20% per year through superior

performance and word-of-mouth referrals.

•

To create a service-based company whose primary goal is to exceed customer's

expectations.

CHAPTER 2: DESCRIPTION OF THE VENTURE NAME Wealth X financial Advisory will be set up in urban area of city Lucknow and owned solely by Mr. Ravi Ranjan Bharti . The “X” in the the name stand for x percent growth Which symbolises the opportunity the firm carries for their clients.

TYPE The venture is a sole proprietorship .It will be solely owned by Mr. Ravi Ranjan Bharti.

LOCATION The location of wealth X financial advisory will be located in gomtinagar area of lucknow city .The firm will serve the trans gomti area of Lucknow city initially , with future plan for expansion by opening branches to distinctive area of the city based on the economic characteristics .The company's location is very favorable, providing high visibility and a large flow of customers. Accordingly, the rent that was accounted for in this plan is higher than in other areas of the city.

LEGAL REQUIREMENTS The Wealth X financial advisory needed to acquire certificate before the commencement of business by SEBI . The fee for registration is in total rs 15000 and there is a requirement of net asset should be at least rs 100000.

KEY PERSONNEL Ravi Ranjan Bharti will handle the whole business, he will responsible for all decision making and operation. Mr Ravi has Master of Business Administration (finance) degree plus 6 year experience in the mutual fund industry. He is well versed with different investment avenues risk , return and most

importantly if it is required by a investor with certain risk profile .He posses the required certification requirement by SEBI of NISM Investment advisor X-A and X-B .

CONTACT DETAILS The interest party who wants to avail wealth X financial advisory services can reach us via phone – 9807967346 or email [email protected]

CHAPTER 3:ENVIROMENTAL AND INDUSTRY ANALYSIS Environment analysis

The business of financial planning is in the midst of a massive transformation. While the practice of financial consultation faces many challenges, it is entering a period described by industry expert Bob Veres as "a golden age in financial planning, a time of extraordinary opportunity, growth, prosperity -- and, perhaps most important of all, of better and more focused service to the community of financial consumers." Technology As consumer technology expands, investors have more tools at their disposal to analyze and address their own personal finances. Financial planners are pressed to not “fall behind the curve” of these high-tech advances. Today, consumers are more empowered to find information on their own about investments and financial planning. Online information is readily at hand regarding financial instruments, market trends and even reviews of financial and advisory firms. Aggregated account summaries are available online and via apps that provide a broad overview and analysis of a consumer's financial situation. Planners must remain technologically relevant to meet client expectations. Commoditization As technology levels the playing field of financial advice by offering online tools and smartphone apps for everything from budgeting to investing, commoditization of the financial planning industry becomes a concern. Many facets of the financial services industry have already been commoditized. Stock trades used to cost hundreds of dollars, are now executed at a fraction of that cost, or for free. Index investing is becoming more prevalent, and free software can now perform sophisticated financial planning projections.

To avoid similar pricing pressure, financial planners must find ways to add value to their service experience Changing Business Model The business model of financial planning is also evolving rapidly. Rather than being a “financial consultant” in a traditional setting of a major national brokerage firm or bank, more and more planners are establishing independent practices. Susan Theder, chief marketing officer of Cetera Financial Group, says this allows them to operate “outside of the many tarnished brands in the industry.” Fiduciary Standard The fiduciary standard mandates that a financial planner puts the client’s needs first. In years past, this was a standard that could not be invoked in a brokerage business model where the “suitability” standard prevailed. Suitability requires only that investments must meet the client’s objectives, time horizon and experience. But under this standard, conflicts of interest regarding compensation can exist and do not have to be disclosed. As consumers become more aware of the higher fiduciary standard, the industry will be under greater pressure to adhere to that benchmark. Regulation Financial planners are facing growing regulatory pressure as securities industry compliance costs grow and error and omission premiums increase. In light of investment scams perpetrated by the likes of Bernie Madoff -- convicted in an infamous Ponzi scheme case -- clients are demanding greater transparency in the investment process. Observers expect continued industry reforms in the years ahead, perhaps forcing smaller financial planning firms to merge with or be acquired by larger practices in an effort to avoid increasing regulatory compliance expenses.

SWOT Analysis

STRENGTHS •Existing connections for prospective clients. •Fundamental Knowledge about the present Market & Products

WEAKNESS •Lack of Opportunity to offer multiple array of products •Unstructured Advisory Process •Limited Power to command fee from the customers

OPPORTUNITIES •Implicit Recognition of the Advisory by the Regulators •Growing demand for comprehensive need based solutions under a single roof •Public Recognition THREATS •Growing Complexity of Financial Products •Competition •Managing Customer Loyalty

Financial Advisory Industry Overview Talking about financial service industry wouldn’t be complete without first talking about financial advisors. The basic responsibility of a financial advisor firm is to offer their clients with financial products and services, subject to the licenses / professional certifications they possess and the training they have had. A financial advisor may create financial plans for clients or sell financial products, or a combination of both. Furthermore, financial consulting firm provide their customers with specialist advice on how to manage their finances. They carry out their jobs by researching the marketplace and recommending the most appropriate financial products and services available. They also ensure that their clients are aware of the product and also understand the product that best meet their needs and before sealing a business deal.

Financial advisors are known to sell some financial products such as; employee pension schemes to companies or offering mortgage, pension or investment advice to private clients who can afford it. Some financial consulting firm are generalists; they offer financial related advice to clients in all of these areas, as well as saving plans and insurance. The financial consulting industry is expected to be one of the fastest-growing industries over the next decade, with a projected growth rate of 30 percent through 2024, based on the report released by the Labor Department. That obviously is an additional 73,900 new positions on top of the 249,400 jobs financial advisors held in 2014. So also the retirement of baby boomers in need of financial planning advice will facilitate appreciable growth in the industry. , issuing guideline to banks regarding collateral requirements and setting up a Micro Units Development and Refinance Agency (MUDRA). With a combined push by both government and private sector, India is undoubtedly one of the world's most vibrant capital markets. In 2017,aIf you are tinkering with the idea of becoming a financial advisor or starting a financial consulting business, you would need to acquire financial expertise and also an aspiration to help people. Basically you would need a bachelor’s degree from financial related course or business related course. Aside from a bachelor’s degree in related financial discipline, you would also need professional certifications. Basically, The Certified Financial Planner exam is required to become a CFP –a distinction that looks good to employers. You can also acquire other related designations if you want to specialize in a certain area of financial planning. For example, you can also complete the necessary certification exam to acquire the Chartered Retirement Plans Specialist, or CRPS, designation. Over and above, as a financial consulting firm, your core responsibility is to improve your client’s finance by effecting changes in response to your analysis; you should be able to change the fortune of their finance within an agreed time – line. Individuals and even organizations are willing to pay expensive fees as long as they are going to get results. No business person will be willing to pay you for a financial consulting service if you don’t have a track record that shows that you know what you are doing. It is one thing to convince a client to patronize your financial consulting services and it another thing for you to deliver solutions as agreed. Lastly, one good thing about the financial consulting industry is that there is readily available market for their services simply because individuals and even organizations naturally would want

to improve and effectively manage their finance. So if you are well positioned and you know how to deliver results as a financial advisor, you will always smile to the bank. GLANCE AT DEVELOPMENT IN THE FINANCIAL SERVICES INDUSTRY India has a diversified financial sector undergoing rapid expansion, both in terms of strong growth of existing financial services firms and new entities entering the market. The sector comprises commercial banks, insurance companies, non-banking financial companies, co-operatives, pension funds, mutual funds and other smaller financial entities. The banking regulator has allowed new entities such as payments banks to be created recently thereby adding to the types of entities operating in the sector. However, the financial sector in India is predominantly a banking sector with commercial banks accounting for more than 64 per cent of the total assets held by the financial system. The Government of India has introduced several reforms to liberalise, regulate and enhance this industry. The Government and Reserve Bank of India (RBI) have taken various measures to facilitate easy access to finance for Micro, Small and Medium Enterprises (MSMEs). These measures include launching Credit Guarantee Fund Scheme for Micro and Small Enterprises, issuing guideline to banks regarding collateral requirements and setting up a Micro Units Development and Refinance Agency (MUDRA). With a combined push by both government and private sector, India is undoubtedly one of the world's most vibrant capital markets. In 2017,aIf you are tinkering with the idea of becoming a financial advisor or starting a financial consulting business, you would need to acquire financial expertise and also an aspiration to help people. Basically you would need a bachelor’s degree from financial related course or business related course. Aside from a bachelor’s degree in related financial discipline, you would also need professional certifications. new portal named 'Udyami Mitra' has been launched by the Small Industries Development Bank of India (SIDBI) with the aim of improving credit availability to Micro, Small and Medium Enterprises' (MSMEs) in the country. India has scored a perfect 10 in protecting shareholders' rights on the back of reforms implemented by Securities and Exchange Board of India new portal named 'Udyami Mitra' has been launched by the Small Industries Development Bank of India (SIDBI) with the aim of improving credit availability to Micro, Small and Medium Enterprises'

(MSMEs) in the country. India has scored a perfect 10 in protecting shareholders' rights on the back of reforms implemented by Securities and Exchange Board of India (SEBI). Market Size The Mutual Fund (MF) industry in India has seen rapid growth in Assets Under Management (AUM). Total AUM of the industry stood at Rs 24.03 trillion (US$ 342.01 billion) between AprilNovember 2018. At the same time the number of Mutual fund (MF) equity portfolios reached a high of 74.6 million as of June 2018. Another crucial component of India’s financial industry is the insurance industry. The insurance industry has been expanding at a fast pace. The total first year premium of life insurance companies reached Rs 193,866.23 crore (US$ 30.10 billion) during FY18. Along with the secondary market, the market for Initial Public Offers (IPOs) has also witnessed rapid expansion. The total amount of Initial Public Offerings (IPO) increased to US$ 1.2 billion raised from 37 between April – June 2018. Over the past few years India has witnessed a huge increase in Mergers and Acquisition (M&A) activity. In H12018, 74 deals of acquisition took place in financial sector. The total value of such transactions was US$ 4.166 billion. * Furthermore, India’s leading bourse Bombay Stock Exchange (BSE) will set up a joint venture with Ebix Inc to build a robust insurance distribution network in the country through a new distribution exchange platform.

Investments/Developments •

Investments by Foreign Portfolio Investors (FPIs) in Indian capital markets have reached

Rs 6,310 crore (US$ 899.12 million) up to November 22, 2018. •

As of October 2018, the Financial Inclusion Lab has selected 11 fintech innovators with an

investment of US$ 9.5 million promoted by the IIM-Ahmedabad's Bharat Inclusion Initiative (BII) along with JP Morgan, Michael and Susan Dell Foundation, and the Bill and Melinda Gates Foundation. •

The private equity and venture capital (PE/VC) investments reached US$ 25.20 billion

between January to October 2018.* Government Initiatives

•

In December, 2018, Securities and Exchange Board of India (SEBI) proposed direct

overseas listing of Indian companies and other regulatory changes. •

Bombay Stock Exchange (BSE) introduced weekly futures and options contracts on Sensex

50 index from October 26, 2018. •

In September 2018, SEBI asked for recommendations to strengthen rules which will

enhance the overall governance standards for issuers, intermediaries or infrastructure providers in the financial market. •

The Government of India launched India Post Payments Bank (IPPB), to provide every

district with one branch which will help increase rural penetration. As of August 2018, two branches out of 650 branches are already operational.

CHAPTER 4: ORGANISATIONAL AND MANAGEMENT PLAN

The Wealth x Financial advisory is Sole proprietorship and will be solely managed by Ravi Ranjan Bharti himself ,since the it is sole proprietorship the business is small and easy to mange ,so there is no need to hire additional management team.Ravi himself is capable in managing the daily affairs efficiently.The wealth X financial advisory will operate from gomtinagar

RAVI RANJAN BHARTI received his Bachelor of commerce degree

from Lucknow

University.After graduation Ravi took the CAT in preparation for getting his MBA.Ravi decided that he needed to take at least a year off between graduation and post graduation for exploring different opportunity.,Developed connections to people and communication skills during the gap Although at the time Ravi did not know how valuable these communication skills would become, he did recognize that they were useful.

Ravi entered IMS, Lucknow university`s

MBA finance and control program a year after

graduating from same university. During the second year Ravi was allowed to choose his major and minor courses and he took a concentration of finance, investing, options, etc. and also did internship with reliance securities with is indulged in providing financial service for investing in capital market ,there he learned the functioning of the stock market and risk involved with different securities .He enjoyed the investing of money, and it was at this point that he realized that this is the type of work that he wanted to do. He figured it would be initially tough to start her own financial planning company by himself, so he worked with HDFC mutual fund which is largest MF company in india for over 6 years and then decided to open his financial advisory firm .

PERSONNEL Ravi will be working full time for Wealth X financial advisory. In addition to himself, Ravi will hire an administrative assistant . This person will be full time and will help out in many different ways.

CHAPTER 5: MARKET ANALYSIS

Market Trends

In recent time, financial advisers / financial consulting firms are in the center of a larger industry wide change. With the steady advancement in technology, changing business regulation, retiring financial professionals, and innovative types of financial services are indeed impacting the trend in the industry. In view of that, financial consultants know that for them to survive the changing trends in the industry, they must ensure that the keep tap with latest happening in the industry, and also ensure that they position their organization to change and flow with the trends.

No doubt, most of the current trends affecting financial advisors today is what is responsible for the reduced fee structure in the industry. Of course the financial consulting industry is experiencing a shift from a transactional based fee structure to one that is fee based. Take for instance, the regular stock broker who is remunerated for each client trade, is going by the wayside. This obvious change in the industry puts downward pressure on the financial advisors’ profit margins. Talking about technological advancement, experts can confidently state that it has given huger leverages to financial advisors in areas such as data management, forecasting, portfolio management and analytical tools alongside expedient and effective communication applications. In as much as the financial advisory industry has gained leverages on technological advancement, they also experience some challenges as well. With technological advancement, it is now easier for clients to get financial advice at a pretty low fee from online financial advisors (robo – advisors) from the comfort of their homes, hotels or offices. As a matter of fact, the introduction of strictly internet based financial advisory services makes the financial advisory industry more competitive. Despite the fact that most online – based financial advisory firms are relatively small in size, in comparison with the brick and mortar (established) financial advisor firm, their growth is explosive when compared. Aside from the state challenges, employment may be seriously affected by the increasing number of online advisory tools, which may likely turn away clients from seeking financial advice in person. No doubt, as the cost of financial consulting services continues to increase and as individual and corporate spending falls, new financial consulting delivery methods will continue to emerge and gain momentum going forward. In addition, the market for financial consulting services has shifted from a sellers’ market to a buyers’ market. A market where financial advisory firms provide software solutions that will make it easier for their clients to monitor their asset and progress of their investment from their smart phones or computers .

Service Business Analysis The financial management is a populated space, just like real estate.There are literally hundreds of financial managers serving the area. The secret is specializing (concentrating on a specific area in

the market, helping you to be differentiated from all the other service providers) and networking (building your business through personal/professional contacts).

Although the financial market is pretty full, there is room for new providers that specialize and offer unsurpassed customer attention.

Competition and Buying Patterns 

Independent financial planners: these are often most like Grizzly Bear Financial Managers. They do not belong to a larger company and they are not affiliated with any type of company, mutual fund, or otherwise.

• Financial planners that are part of a larger organization: American Express, Charles Schwaab, and Merrill Lynch. While these planners might offer good advice, they are often biased, having a financial interest in the companies that they sell equity in. • Tax and estate planning attorneys: professionals with a legal background who offer similar financial services, sometimes as a sideline to their practice of law. • True niche players who only are stock brokers or who only do estate planning: while these people probably have very detailed information about their area of specialization, estate planning or financial planning often requires a breadth of knowledge in many areas. The buying patterns of consumers are more often than not based on networking or who the person knows. This is because the industry of financial planning is so populated it is quite hard to make a decision for choosing a service provider. Since many/most people after a certain age have at least visited a financial planner it is not difficult to get a referral for a planner.

Sales Strategy Wealth x financial advisory sales strategy will be to emphasize their competitive advantage of comprehensive research and product offerings. This is likely to turn prospective clients into longterm customers because people are often cautious with their financial future and offering a comprehensive solution will likely allay their concerns because Wealth x financial advisory is

willing to work extra hard to research all options. This approach takes a lot of time up front for Ravi, but the customers will recognize this effort and choose Wealth x financial advisory as their service provider.

Sales Forecast The first month of business will be used to set up the office. There will be no sales activity during this period of time. Revenue will begin to occur during the second month, however it will only trickle in until the four month when it will become more steady. It will not be until the middle of year two when things begin to settle and become more like an established business in terms of dividing time between serving clients and attracting new ones.Ravi will receive revenue from two sources. He will charge the client an initial modest fee and this includes all of the needed research, interviews and meetings. If the client then goes ahead and purchases a mutual fund or equity, Ravi receives a commission from the company that is selling the item. This compensation structure if fairly standard in the industry. The initial fee allows the client to receive as much counseling and research that they need and then future transactions are compensated by the company selling the equity, much like the commission structure of travel agents

The sale is expected to grow minimum at at the rate of 10% per annum.

Expected Revenue

Table5.1

Expected Revenue(rs)

Year 1

Year 2

Year 3

480000

552000

634800

CHAPTER 6: PRODUCT/SERVICES

Our Product and Services Wealth x Financial Advisory, is going to offer a variety of financial advisory services within the scope of the financial consulting industry .The intention of starting our financial advisor firm is to make profits from the industry and we will do all that is permitted by the SEBI to achieve our corporate goals and objectives. Our business offering are listed below; •

Investment (Business Portfolio) Management

•

Financial Advisory Services

•

Wealth Creation and Wealth Management

•

Asset Management

•

Mortgage, Pension, Retirement and Investment Advisory Services

•

Income Tax Preparation

•

Financial Auditing

•

Estate Planning

•

Budgeting and Financial Planning

•

Accounting and Financial Services Consulting

•

Tax Consulting

•

Insurance Consulting

CHAPTER 7:STRATEGIC PLAN

Strategy

Wealth x financial advisory strategy for reaching her two target segments will be based on seminars and networking.The seminars are open to the public and have a small, subsidized entry fee. They are meant to cover the basics of financial and estate planning. Typically the seminars will start to get these people asking questions about their personal finances and hopefully come back to Ravi for more help.RAVI will also be doing networking to find customers. Her networking will be primarily based on contacts that he made.

GRAND STRATEGY

The wealth X financial advisory want to be pioneer financial advisory firm of the city of lucknow.We want to operate with full integrity and ethics . We cautious against expansion of business by misleading the investors.The firm aims to educate people about investment and requisite of investment .It want people to be aware about available investment opportunity.

BUSINESS STRATEGY

The truth is that, it is easier for businesses to survive when they have a steady flow of business deals / customers patronizing their products and services. We are aware of this, which is why we have decided to offer a wide range of financial consulting and advisory services to both big and small clients (individual and corporate clients). We know that if we continue to deliver excellent financial consulting and advisory services to our clients, there will be steady flow of income for the organization. As such, our key sustainability and expansion strategy is to ensure that we only hire competent employees, create a conducive working environment and employee benefits for our staff members. In the nearest future, we will explore the options of either merging with other consulting firms or acquire one or more consulting firms in order for us to increase our market share and service offerings We know that if we do well to implement our business strategies, we will grow our financial consulting and advisory firm beyond Lucknow, U.P. to other states in india in record time. OPERATION STRATEGY •

The wealth X financial advisory want to first have reach out 2000 people in first 3

months of commencement of business. •

It will charge minimum commission ,0.5 % for penetrating the market

•

Wealth X financial advisory wants to attain minimum growth in business by 10%

per year.

CHAPTER 8: OPERATIONAL PLAN The Firm will operate 6 days a week from Monday to Saturday , the timing for walk in service is from 10:30 am to 6 pm.the firm will be closed on sundays .The customer not only can get the service through walking in but also can connect through telephone and website of the firm.

Payment Options

At Wealth x financial advisory, our payment policy will be all inclusive because we are quite aware that different clients prefer different payment options as it suits them. Here are the payment options that we will make available to our clients; •

Payment by via bank transfer

•

Payment via online bank transfer

•

Payment via check

•

Payment via bank draft

•

Payment with cash

CHAPTER 9: MARKETING PLAN Marketing Strategy

WEALTH X FINANCIAL ADVISORY will be offering public seminars on estate planning and financial planning in Lucknow once or twice a month. These workshops will be have subsidized rates and encourage people to attend and learn as much information as possible. These seminars will typically take place in a public building and offer a general discussion on the subject. It will caution people against solely using this information to make decisions. Instead they will be encouraged to see a professional individually so they can better assess the customers needs. The seminars will attempt to get these people to start thinking about their financial future. These seminars are a very good, and efficient, way of introducing to new clients.

Ravi will also be doing a lot of networking to drum up business. One outstanding source of networking is with her friends from her MBA program. While everyone that went through the MBA program has a good educational foundation for financial management, most people do not do their own planning by themselves but are assisted by a specialist. Ravi will be contacting her colleagues through social occasions as well as calling them, to keep in touch with them and offer her services if they are in need. These two methods will accurately target the segmented populations and allow Ravi to build her client list.

Wealth X financial advisory will be marketing their services to two different groups of people, those in need of investing advice, and those that are in need of estate planning help. These two groups will be targeted through networking activities and public seminars. It”s competitive

advantage of thoroughness of services offered as well as in-depth research will turn prospective clients into long-term customers.

STP Market Segmentation We have divided the market from middle and upper middle class on age basis in three segment 

Young people from middle and upper middle class



Middle age people from middle and upper middle class



Retired group from middle and upper middle class

Target Market Segment Wealth x finacial advisory will target two different groups of customers within middle age and will be from the middle to upper-middle class socio-economic groups.

• Middle age people in need of estate planning. This group is making plans for their estate and are in need of advice on how to structure their estate..They might have already made arrangements for their estate and wish to modify them, or be starting from scratch. • Middle age people interested in investing. This group is interested in some sort of investing, whether it is mutual funds, stocks, bonds, treasury notes, etc. They may have already done some investing, but want to change their risk profile or take a different approach..This might also be their first time investing and want expert advice. Wealth X financial advisory has chosen these groups because they have money to invest and most need assistance in determining how to invest or how to structure their estate.These groups will be targeted through two methods. The first is old fashioned networking.Ravi made a lot of different contacts in her pursuit for her MBA. In addition to networking her contacts from school and will also network using her social contacts. Ravi will also be targeting these groups through the production of public seminars on estate planning and investing. These seminars typically take place in a public areas. The seminars provide a basic level of knowledge. The seminar is not meant to substitute services, they are meant to whet people's appetites for more information. The real reason for the seminars is to get a diverse crowd of people interested in Ravi and the services he offers, creating new business.

Positioning

Wealth X financial Advisory will project itsel as a venture based on ethics and which never compromises on ethics for making excess income.It will position itself through public seminar and tackle their dilemma about investment .It will increase the goodwill of the venture and give recognition.

Our Pricing Strategy

Generally, a financial adviser is remunerated either through fees, commissions, or a combination of both. For instance, a financial adviser may be paid in any of the following means; an hourly fee for advisory services. A flat fee, such as 5000 per year, for an annual portfolio review or 3000 for a financial plan. They could also be paid on commission basis especially on the securities they bought or sold for their clients such as 500 per trade et al. Financial advisor are also paid a commission that is based on the amount a client invested in a mutual fund or variable annuity. It could also be termed a “mark-up” especially when a client buys “a property” products (such as bonds that the broker holds in inventory), or a “mark-down” when they are sold. A fee for assets under management, such as 1% annually of assets managed Hourly billing for financial consulting and advisory services is a long – time tradition in the industry. However, for some types of consultancy services, flat fees make more sense because they allow clients to better predict consultancy costs. At Wealth x financial advisory we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to start – ups, nonprofits, cooperatives, and small social enterprises. We are aware that there are some clients that would need regular access to financial consultancy and advisory services and assistance, we will offer flat rate for such services that will be tailored to take care of such clients’ needs. Promotional strategy

We have been able to work with our in house consultants and other brand and publicity specialist to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the financial consulting industry by storm which is why we have made provisions for effective publicity and advertisement of our consulting firm.Below are the platforms we intend to leverage on to promote and advertise our financial consulting business;

•

Introduce our business by sending introductory letters alongside our brochure to

households and stake holders in the lucknow .Promote our financial consulting firm online via our official website and all available social media platforms •

Adopt direct mailing coupon marketing approach

.Encourage our loyal customers to help us make use of word of mouth to promote our financial consulting firm Place Strategy Wealth X financial Advisory has zero level distribution channel it will provide services directly to the customer ,with out any 3rd party distributor. Wealth X financial advisory will operate from gomtinagar area which will give it advantage in terms of reach since most of office are situated in this part of city and upper middle class is the primary settler of this area. Milestones Wealth x financial advisory swill have several milestones early on:

• Business plan completion. This will be done as a roadmap for the organization. It will be an indispensable tool for the ongoing performance and improvement of the company. • Set up the office. • Profitability.

• Develop a full-time client list.

HUMAN RESOURCE PLAN

The Wealth x Financial advisory is Sole proprietorship and will be solely managed by Ravi Ranjan Bharti himself ,since the it is sole proprietorship the business is small and easy to mange ,so there

is no need to hire additional management team.Ravi himself is capable in managing the daily affairs efficiently

PERSONNEL

Ravi will be working full time for Wealth X financial advisory. In addition to himself, Ravi will hire an administrative assistant . This person will be full time and will help out in many different ways.

He will be paid a salary of rs 10000 per month ,he will be responsible for cleaning ,opening closing office etc

CHAPTER 11: FINANCIAL PLAN

Financial Projections and Costing

No doubt starting a financial consulting firm can be cost effective; this is so because on the average, you are not expected to acquire expensive machines and equipment. Basically what you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to furnish and equip the office, the amount needed to pay employees for the first few months, the amount needed to by the required software applications, the amount needed to pay bills, promote the business and obtain the appropriate business license and certifications. The wealth x assumed the growth in business by 15-20% per year based on aanalysis of the industry and market. The growth rate assumed here is very realistic assumption of 15%.There is also 1 lakh is required as capital adequacy as directed by SEBI.Ravi will self fund the business and this will help him in kepping Wealth x finacial advisory from burdening of any liability. Business cost Table 11.1 BUSINESS EXPENSES

AMOUNT (RS)

LEGAL

15000

STATIONARY ETC

10000

ADVERTISING EXPENSES

15000

RENT

144000

FURNISHING

50000

INSURANCE

3000

COMPUTER AND OTHER GADGETS

35000

CASH REQUIRED

20000

OTHERS

60000 TOTAL

Revenue forecast

352000

WEALTH X FINACIAL ADVISORY PROJECTED INCOME STATEMENT (FOR 3 YEARS) Table 11.2 PARTICULAR REVENUE Less: expenses Less administration exp -salary of office boy NET PROFIT

YEAR 1 480000 -352000 -120000

YEAR 2 552000 -337000 -120000

YEAR 3 634800 -337000 -120000

8000

95000

177800

Since the profit is less than 2.5 lakh the firm will be exempt from any tax for the first three year. Important Assumptions Due to the current economic uncertainties, our assumptions are conservative. In judging and estimating, we have chosen the alternatives that are least likely to overstate assets and income. The key underlying assumptions are: • we assume a slow economic recovery process over the next three years, but no major depression • we assume access to capital and financing sufficient to maintain our financial plan as shown in the tables • we assume continued popularity of services in our target market Risks Company management is responsible for constantly evaluating risks and taking corrective actions to provide adequate prevention, control and risk reserves. We have identified several risks that are associated with our business project.

There are many possible classifications of risks, but for the purposes of this plan, we have chosen to group them as follows: a) External Risks (These risks come from outside and are more difficult to prevent and control.) • Economic depression. Current trends indicate that the economic downturn is reaching the bottom, and chances are that the recovery process will begin soon.However, it is likely to be a

slow process, and it will probably take several years until complete recovery and full growth are achieved. We assess the risk of a major depression to be low. • Competition and buying patterns changes. There is a high risk that new competitors will arrive in the relevant marketplace. Our continuous improvement strategy and analysis techniques will help us to stay on top of customer preference. • Location. The chosen location will be leased for minimum five years, with the possibility to extend the lease over another similar period. There are no other construction developments foreseen in this highly dense population area of Lucknow that might affect our business location in the near future. • Inflation. According to expert estimates, the inflation rate is likely to remain under control over the next five years. We have accounted for a 5 percent annual inflation rate. b) Internal Risks (These risks come from inside and can be better prevented or controlled.) • Cash flow deficiency. Our main concern will be to have sufficient cash on hand to meet our payment obligations, and be prepared for unexpected needs of cash. Our conservative projections indicate that our business is able to generate positive cash flows and sufficient cash reserves to reduce the risk of cash flow deficiency. • Business continuity over the next five years.

CHAPTER 12: EXIT STRATEGY We recognize that any in a start-up company, no matter how well on paper,ultimately needs an exit vehicle. The purpose is to provide the best alternatives to protect from future uncertainity, while maintaining the potential growth of our company, the liquidity, and the profitability of future operations.

The only option left in unfavourable condition is to dispose off the the assets held by wealth x after clearing all dealing from existing clients because business too small too acquire other competitor business.