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. Submitted By

Dr. Mohd Arif Ravi Ranjan Bharti
Assistant Professor. MBA (F&C) -IVth
Institute of Management Sciences. 180013160065
University of Lucknow 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 Page No.

Certificate from Institute ii
Declaration iii
Acknowledgment iv
Executive Summary v
1 Introduction 1
2 Description of Venture 2
3 Environmental and Industry Analysis 5
4 Organizational and Management Plan 12
5 Market Analysis 13
6 Product/Service 16
7 Strategic Plan 17
8 Production and Operational Plan 19
9 Marketing Plan 20
10 Human Resource Plan 24
11 Financial Plan 25
12 Exit Plan 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 -ravir080@gmail.com
 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 April-
November 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 long-
term 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

Year 1 Year 2 Year 3

Expected Revenue(rs) 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 352000

Revenue forecast
 WEALTH X FINACIAL ADVISORY
PROJECTED INCOME STATEMENT
(FOR 3 YEARS)
Table 11.2
PARTICULAR YEAR 1 YEAR 2 YEAR 3
REVENUE 480000 552000 634800
Less: expenses -352000 -337000 -337000
Less administration exp -120000 -120000 -120000
-salary of office boy
NET PROFIT 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.