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Project of B usiness, E ntrepreneurship and M anagement on developing an innovative business idea Presented by students of B.Com (H) I year section 1 Hans Raj College Faculty- Mrs. Meghna Malhotra. ENTORNO. A GREEN VENTURE. WHAT IS A GREEN CONSULTANCY FIRM?
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Project of Business, Entrepreneurship and Managementon developing an innovative business idea Presented by students of B.Com(H) I year section 1 Hans Raj College Faculty- Mrs. MeghnaMalhotra
ENTORNO A GREEN VENTURE
WHAT IS A GREEN CONSULTANCY FIRM? • A green consultant is often referred as a Environmental consultant • An Eco Consultant or Green Consultant will analyze many aspects of a business, and find ways that that business can become more environmentally friendly • A green consulting firms will specialize in implementing recycling programs for the express purpose of lowering solid waste disposal costs • A consultant is also able to put clients in touch with contractors for solar installation, weatherization and water-use reduction. Advice on recycling in the office, incentives for carpooling, public transit use and bicycling to work for employees are important services that a consultant can offer.
WHY GREEN CONSULTANCY FIRM? • Growing environmentalism among corporates thus increasing demand for our business • Emerging industry! With less players! • New law states that the top companies need to contribute to the society- corporate social responsibility, where our business can come into the play. • Work we will do will benefit the environment • Being a consultancy firm, less fixed investment is required • Less legal formalities to start a consulting firm
MANAGEMENT STRATEGIES
COST ANALYSIS… An important aspect of our business is that being a consultancy firm the investment requirements of our business is quite low. The only capital costs we would have to incur will be on: • Land and Building • Office Equipments • Furniture + Administrative expenses(salaries of employees, bills etc.) Thus, our work is more of contacts and less of investment…
FIXED ASSET DESCRIPTION: COST: • Land/Building: 1Crores • Equipment and/or Vehicles: 15 Lacs. • Furniture: 5Lacs. START-UP EXPENSE DESCRIPTION: • Legal/Organization Costs: (Close to NIL) • Initial Marketing & Promotion: 10 Lacs. TOTAL FIXED ASSET AND START-UP EXPENSES: 1.3 CRORES
Total Required Capital = Six Months of Fixed Expenses + Asset Purchases + Start-up Expenses Monthly Fixed Expenses (Rs) • Salaries : 5 Lacs. • Marketing and Advertising: 65000 • Telephone & Utilities : 15000 • Maintenance 5000 • Legal and Accounting 15000 • Electricity 15000 • Monthly Fixed Expense Sub-total: 6.15 Lacs x 6 = 3690000 + Asset Purchases (Rs) • Purchase of Land and Building: 1Crores • Fixtures and Equipment (plus installation) : 15 Lacs. • Furniture: 5Lacs. • Asset Purchase Sub-Total: 1.59 CRORES
+ Start-up Expense Sub-total: 20 Lacs. =Total Estimated Cash Needed to Start: Rs.1.79 CRORE + Estimated working capital requirements: Rs.11 Lacs. = Total estimated Capital Requirement: Rs.1.90 Crores Sources: • Term Loan: Rs.1.14 Crores • Personal capital : Rs.76 lacs The debt proportion in the overall capital structure would be kept more ( preferably 3:2) to take full advantage of favourable financial leverage. Even though a debt-capital mix of 4:1 will give a higher return but it will increase the risk perception of the partners, since the debt content is too high.
Keeping the above statistics in mind the expected rate of return on investment is
CONCLUSION Thus, it can be concluded that the investing in a green consultancy firm would be a great option. It is profitable yet socially and ethically responsible and also, it helps in countering a huge crisis that the world is facing today. The business has a huge and new market base and practically in today’s scenario incurring losses would have a very low probability.
Team Members: • Samaksh Gupta (11) • AmanPatni (12) • Shraishth Jain (15) • NimitLoonker (16) • AnuragMishra (19) • Kriti Gupta (21) • DivamAggarwal (23)