BUSINESS PLAN 'Things Rent Site' (including financial model)

June 2014 | 51 pages | ID: B9097317EC8EN
VTSConsulting

Abstracts

The report is half ready. The updating and translating process takes 3-5 business days after the order confirmation.

The idea of project which is offered as given business plan is a web source which will be designed for rent of different things: starting from household items to notebooks, electrical equipment and vehicles.

According to the researches of experts of the «VTSConsulting» company, the main tendencies of Russian electronic commerce market and characteristic features of this niche are the following factors, which approve expediency and profitability of the project:

• Russian electronic commerce market is going through a stage of rapid growth and, according to the company experts estimations, the active growth phase will last during 2014-2017;
• main peculiarities of Russian electronic commerce market at the current stage are:
  • development of online lending;
  • development of multichanneling and interpenetration of online and offline;
  • growth of demand for goods in foreign Internet stores;
• key hallmark of Russian market is active using of electronic payment systems, first of all remote banking and nonbanking. This differ the Russian market from foreign analogues favorably, because it creates a large consumer variability;
• an important tendency is outstripping growth of Internet-stores on the physical goods market in comparison with MLM- and catalog sales;
• the analysis of growth opportunity of electronic commerce market show that extensive development is possible thanks to regions, which demonstrate overtaking development effect. Nonetheless, existing regional disproportions in the electronic commerce market will continue to be.

Adaptation of this business plan is possible for similar project around the world.

Business Plan Description

Project idea: «***» – perspective Internet-project in electronic commerce market, which offers to rent things in Moscow and Moscow region.

Project products and services:

On the website «***» users will be able to rent:

• vehicles (quad bike, segway, electric scooter, snowmobile);
• household appliances and electronics (notebook, TV, stereo center, refrigerator, microwave oven, washing and sewing machines, typewriter);
• electric tools (drill, hammer drill, chainsaw);
• agricultural tools (walk-behind tractor, lawnmower), equipment (welding machine, diesel generator);
• clothing and footwear;
• furniture and household items;
• jewelry and wedding dresses.

Project target audience: target audience is inhabitants of Moscow and Moscow region. During the last years the leading tendency of cash saving has manifested in segment of customers with average income as well as above average income. People begin to save money, renting necessary things, and refuse from planned purchases.

Market

• the average annual sales of retail electronic commerce in Russia is about 350 billion RUB;

The most perspective rent categories:

• clothing;
• household goods;
• sports goods.

Competitive environment

The main competitors of «***» in rent and hire market are: arendorium.ru, vremenno.com, moscow.naprokat.info, mosarenda.biz, veschichki.su.

Project advantages:

The main competitive advantage of project «***» will be the presence of the courier delivery service, which saves the client from necessity of picking up of rented goods.

Excerpts from the research:

The rapid increase in demand on rent of household things (*** %), mobile phones (*** %), cars (*** %) is observed on the market. At the same time the growth in demand on computers and office goods decreased slightly (to *** %).

Clothing (*** %), household appliances (*** %), furniture (*** %) and also leisure goods (*** %) have stable positive sales and Internet-hire dynamics.

Project payback period: 11 months.

Contents

EXECUTIVE SUMMARY

1.0. DESCRIPTION OF INTERNET-COMMERCE MARKET IN RUSSIA

1.1. Internet-Commerce Market of Russia
1.2. Internet-Commerce Market of Moscow
Conclusions

2.0. DESCRIPTION OF PROJECT SERVICES

3.0. COMPETITIVE ENVIRONMENT

3.1. General Information about Competitive Environment in Internet-Commerce Market
3.2. Main Competitors of Project «***»
3.3. Competitive Advantages of Project «***»

4.0. MARKETING PLAN

4.1. Search Optimization
4.2. Contextual Advertising
4.3. Social Media Marketing
4.4. Site Usability
4.5. Conclusions

5.0. FINANCIAL PLAN

5.1. Capital Expenditure
5.2. Rent Cost
5.3. Profit and loss of Project
5.4. Free Cash Flow
5.5. Economic Indicators

6.0 FINANCIAL PROJECTIONS RESULTS ANT IT’S ANALYSES

6.1. Main Results
6.2. Analyses of Results Sustainability in Case of Risk Events Occurrence

LIST OF DIAGRAMS, CHARTS AND TABLES

Diagram 1.1. Internet-Commerce Market Volume by Goods Categories, billion RUB.
Diagram 1.2. Amount of Internet-Orders a Day by Goods Categories, thsd. orders
Diagram 1.3. Internet-Commerce Market Dynamics by Goods Categories, %
Diagram 1.4. Dynamics of Internet-Stores Amount (Including Things Hire Sites) in Russian Internet.
Diagram 1.5. Shares of Large, Middle and Small Internet-Stores of Goods Sale and Hire in 2012, %
Diagram 4.1. Distribution of Main Social Media by criterion of monthly attendance, thsd. people.
Diagram 5.1. Distribution of Capital Expenditure in percentage
Figure 6.1. Chart of Project Payback.
Table 1.1. ТOP-10 of Internet-Commerce Market Participants, 2012.
Table 3.1. Main Competitors of Things Hire Store «***»
Table 4.1. SEO-Analysis of Hire and Rent Site «***»
Table 4.2. Cost of SMM by Social Networks Sites
Tables (IIII). Project Financial Indicators in risk scenarios and their comparison with basic level