Entrepreneurship Project: Box Knife Sharpening Business Plan in India

This entrepreneurship project details a business plan for Box Knife Sharpening, aimed at entering the Indian market. The plan identifies the problem of unsafe, rusted knives in Indian restaurants and proposes a solution by providing high-speed steel (HSS) knives and sharpening services via an online platform. It includes a market analysis highlighting India's growing restaurant industry and the increasing awareness of food safety. The project also covers competitor analysis, funding strategies involving venture capitalists and crowdfunding, and financial projections, including startup costs, cash flow, and profit and loss statements. The business model focuses on both Business-to-Business (B2B) and future Business-to-Customer (B2C) segments, emphasizing free trials and high-quality service to attract restaurant clients. The plan aims to address a critical need for improved kitchen hygiene and safety in the Indian food service sector, leveraging the country's economic growth and increasing digitalization.

Running head: ENTREPRENEURSHIP PROJECT
ENTREPRENEURSHIP PROJECT
Name of the Student
Name of the University
Author Note

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Executive Summary
The business environment is very dynamic in nature and with respect to this, the different firms
as present in the business environment, would be required to ensure that they are successfully
able to engage in activities which will be able to bring about long term success for the overall
operations of the firm. Hence, with respect to this, the given business entrepreneurial project plan
has been designed to ensure that the organization as a whole is able to engage in long term
success and that a firm is able to engage in an opportunity which is not catered to by any other
organization as present in the business environment.
a. Entrepreneurial Project Objectives
The entrepreneurial project objectives can be stated to be as follows:
 To present a viable business opportunity which can be exploited in order to ensure long
term success and also to assure that the organization will be able to attain a considerable
demand for the products being sold.
 To analyze the chosen Indian market which is at its all-time high in order to see to it that,
the firm is able to attain success in the long run.
 To analyze the different strategies, pricing policies, market information and other data
which is present with respect to the operations of the Box Knife Sharpening’s.
 To project the future income of the firm in the coming few years.
 To present the overall sales and other plans of the organization, with respect to which the
firm will be able to attain success in the long run.
b. Problem/Opportunities Statement
The Box Knife Sharpening’s aims to function in India and with respect to this, it can be
mentioned that the primary problem which the firm aims to solve an undertake can be

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stated to be the issue of the food poisoning which may be caused due to the use of the
rusted knives which are generally used in most of the kitchens as present in India. Hence,
the firm has observed this as a viable opportunity and aimed to provide the other retailers
with a similar opportunity with respect to the fact that, they will be able to provide, HSS
knives to the different Indian restaurants as present. The Box Knife Sharpening’s will
provide these products as well as the services with the help of their online website with
respect to which the expenditure shall be minimum and the reach out to the different
customers shall be the maximum. Along with conducting the Business to Business
opportunity, the Box Knife sharpening also aims to conduct Business to customer
segment in the future which shall allow them to become a common household name for
the kitchen appliances and the different tools in the future.
In addition to this, the given idea has been chosen for the purpose of India as India is one
of the leading companies around the globe with considerable growth opportunities.
Moreover, the problem of food poisoning has been observed only in India because, the
different restaurants often tend to avoid the safety and hygiene measures and with respect
to this, as the restaurant business in India has been growing considerable, this has bought
about a change in the mindset of the individuals and as these individuals have been
engaging themselves in the eating out culture, the Indian market serves as the right
opportunity for itself and allows the company to engage in long term growth.
c. Market/ Industry Summary
The Indian market as stated earlier, is a considerably growing market and with respect to
this, it can be mentioned that as the different individuals have been becoming more open
to the idea of eating out, the restaurant business is at its all-time high and with respect to

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this, the idea can be stated to be an appropriate one as it solves a major issue as present in
the particular market. Moreover, as Indians have become more open to the idea of eating
out, it becomes considerably important for the restaurants to look after the safety and
hygiene and to ensure that there takes place no harm to the different guests as present in
the restaurant. Moreover, although there are a large number of utensil and other kitchen
appliance, there does not exist any online portal which will cater to the needs of these
restaurants specifically. Moreover, as the number of restaurants in the country has been
increasing considerably and hence, the size of the market is quite substantial for Box
Knife sharpening. As more small firms in the restaurant industry have been growing it
becomes considerably attractive for the firm to expand its operations in India.
d. Competitor Summary
The different competitors of the firm can be divided into two aspects. These can be stated
to be the direct competitors or the indirect competitors. The direct competitors of the
brand can be stated to be those websites as present in India who sell products directly to
the customers and these different websites can be stated to be the websites like Flipkart,
Snap deal, Amazon and Shop clues which will allow the users to take the avail of the
different offers as present in the particular website. Moreover, in such a scenario the
secondary competitors can be stated to be the different physical retailers who are present
and tend to offer the similar services which Box Knife Sharpening’s will be offering to
the different customers and hence very often these local retailers also offer great
discounts to lure the different customers into purchasing their products. Some of these
retailers who provide a fierce competition to the Box Knife Sharpening’s can be stated to

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be the Hariom Equipment’s, Akhand Jyoti Engineers, JR Equipment’s, Veera Kitchen
Point and Fore Tech Kitchen Equipment’s.
e. Funding and Financial projection Summary
The funding has been aimed to be done with the help of venture capitalist and crowd
funding. There are a large number of venture capitalists as available in India and the
business owners should take advantage of this and gain access to the required funds
which they require for their business.
Certain financial projections are as follows:
 Total liabilities including equity of owners in the first year: $4,210,000
 Total assets of the company in the first year: $4,670,111
 Break even sales: $1,805,889.00
 Cumulative income for the first year: $24,460,060

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Table of Contents
Description of entrepreneurial research activities...........................................................................7
a.Problem and Opportunity Landscape........................................................................................7
b.Problem that the venture seeks to solve....................................................................................8
c.Existing landscape of solutions.................................................................................................9
d.Stakeholder mapping..............................................................................................................10
Solution..........................................................................................................................................12
a. Idea for technology proposed.................................................................................................12
The knife sharpening procedure................................................................................................13
b.Business model for product/ service delivery.........................................................................15
c. Market analysis and Segment structure (Analysis of one, three and five year customer base)
Prospect Feedback.....................................................................................................................16
d.Pricing model..........................................................................................................................19
e.Competitor analysis................................................................................................................20
f.Portfolio analysis.....................................................................................................................21
g. Funding..................................................................................................................................22
h.Financial analysis....................................................................................................................24
Assumptions..............................................................................................................................24
Startup and Initial Funding........................................................................................................25
Cash flow...................................................................................................................................27

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Profit and Loss...........................................................................................................................28
Schedule for investor returns.....................................................................................................30
Conclusions....................................................................................................................................32
Recommendations..........................................................................................................................38
References......................................................................................................................................43
Appendix........................................................................................................................................45

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Description of entrepreneurial research activities
a.Problem and Opportunity Landscape
The given business opportunity aims to function in India. The idea is centered on
ensuring that like other key products which are largely available online, Box Knife Sharpening
aims to provide a similar opportunity to the different users to purchase the items as present in the
kitchen online. The website will be selling all the essentials which are usually required in a
kitchen and aims to see to it that, the customers are easily able to avail all the necessary products
from a spoon to an entire kitchen renovation. The Box Knife sharpening aims to provide the
different customers an opportunity to make the use of the best equipment’s in the kitchen by
ordering them on an online domain at low prices.
Moreover, the selected business idea has only been selected for the Indian market
because India serves as a prime location for the investment opportunities as present around the
world. According to Thehindubusinessline.com (2018), the confidence of the CEO in the global
economic growth has dipped, however, the country of India has emerged as a rising star in the
particular domain and has successfully surpassed UK to become the fourth best country in which
one can invest in. This result is based on the survey which was conducted for more than 1300
CEOs with respect to 91 countries reflected that the popularity of India has been falling
marginally however, as compared to the other countries, the opportunity has been increasing.
This is then followed by the growth of China in the similar domain, however, it needs to
be noted that, India has been viewed as one of the most attractive and a buoyant territory in terms
of the business growth and popularity. Hence, the business has made a decision to invest in India

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and take advantage of the growing digitalization as present in the country so as to gain a larger
market and a large revenue base as well.
b.Problem that the venture seeks to solve
Hence, as stated earlier, to seek the advantage of the growing business landscape in India
and to solve the problem of the lack of an online domain for kitchenware, the Box Knife
Sharpening’s has been developed. Moreover, according to a study conducted, a major share of
the restaurants as present in the country make use of knives which are rusted and may lead to the
poisoning of the people who generally eat the food as served by the restaurant (Miller 1983).
Many such reports have been registered where the restaurants have reflected utmost carelessness
in the given scenario and have come up with excuses such as a lack of budget and constraints
with respect to which they are not being able to maintain the different knives as available in the
kitchen of the particular restaurant. Hence, in order to ensure that these different restaurants are
able maintain their particular knives and ensure that the highest standards of hygiene are
maintained within the realm of the firm, the company will be providing them with HSS knives.
The HSS knives also known as the High Speed Steel knives are made by using the traditional
means of grinding and steeling and are maintained in a similar manner. The company will also
ensure that it is successfully able to maintain the knife for the restaurants once in every two
weeks so as to ensure that they do not become rusted and that, they are able to provide the best
service to their customers.
Along with this, the restaurants are also in need of the other products of the kitchen
which then go a long way in assisting them to carry out their daily operations and to see to it that
they are never in dearth of the goods. The Box Knife Sharpening’s will also provide the

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customers with rental, selling, repair, maintenance and service products which belong to a high
quality and also provide the different restaurants with an optimum food processing services.
In order to ensure that, the customers which are the different restaurants are attracted to
the particular offer of the specific goods, the customers will be given the different knives for free
at the first trial. In this manner, they will be easily able to experience the difference in the
products and also ensure that they are able to get additional orders in the future (Aldrich and
Waldinger 1990).
In the future, the website aims to provide modern kitchen furnishings as well. The main
key aspect of the services being provided by the company is that they do not make use of the
knives and other such resources for the development of the knives but instead they make use of
the traditional machine which makes use of the manual sharpening manner.
c.Existing landscape of solutions
For the particular problem which exists which is the rusted knives being used at the
Indian restaurants, which causes the problem of food poisoning is that many restaurants have
come up with an internal auditing mechanism with respect to which the senior management as
present in the particular restaurant tends to come up with ideas on how to monitor the particular
tools being used in the kitchens and the manner in which these can be maintained in their best
condition so as to ensure that, they are successfully able to ensure that hygiene is maintained in
the particular organization and in the kitchen of the firm. However, there does exist various
issues to the particular approach and the solution as present (Burns 2016). The primary problem
which is existent towards the particular approach can be stated to be that, these auditing sessions
are not that common in nature and very often the management misses out on the opportunity to

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carry out the particular analysis and tends to indulge in the biasness which then prevents them to
take care of the rusted tools being used.
In addition to this, in India there are a large number of organizations as present which tend to
carry out an inspection of the different kitchens, however, it needs to be noted that, these
organizations do not conduct the inspections quite regularly and in addition to this, they often
engage in corruption and provide a certification to the restaurant irrespective of their cleanliness
or hygiene level (Aldrich and Waldinger 1990). Hence, the given solutions are not appropriate
one. In addition to this, with respect to the other kitchen tools and appliances being offered to the
different household customers, it can be stated that there are several solutions for the same
whereby these customers can either make the purchases from the convenience at the stores or
easily be able to purchase the goods at various online stores like Amazon, Snap deal and Flipkart
in the online domain, however, the quality of the product cannot be guaranteed. Hence, although
there are certain options available in the form of the different solutions, it needs to be understood
that these options, are not viable in nature and that the Box Knifings solution will be the best
alternative for any household or the restaurants with respect to their kitchen solutions.
d.Stakeholder mapping
The stakeholder mapping can be rightfully defined as the collaborative procedure of
research, discussion, debate which are drawn from various sources and aims to present a list of
stakeholders in the entire business spectrum. The mapping of an organization can be broken
down into the different phases. These four phases can be taken to be as follows:
Identifying: This refers to the stage with respect to which the different groups, organizations and
other relevant people as present in the domain are identified. In this stage, the Box Knife will be

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required to ensure that, they are successfully able to identify the different stakeholders as present
in the firm.
 Analyzing: In the analyzing stage, the stakeholder’s interest as well as the perspective are
largely understood in order to ensure the success of the mapping, in this procedure, the
different stakeholders will be analyzed and then they will be grouped for the analysis.
 Mapping: In the mapping procedure the different stakeholders are mapped as per their
relationship in the organization and the other stakeholders as present. Box knife would be
required to map the particular stakeholders in a grid.
 Prioritizing: The different stakeholders are ranked as per their priority as present in the
organization at large. In this manner, the Box Knife can easily prioritize the different
stakeholders with respect to the importance.
Figure 1: The Stakeholder Mapping

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In this, the customers and the different restaurants will be the most important
stakeholders for the business and after this the government and other business partners along
with the other retailers from where the company will be sourcing its products can be stated
another set of crucial stakeholders for the business.
Solution
a. Idea for technology proposed
The ideology which has been proposed for the particular business plan works on an
ecommerce website. Hence, Box Knife would be required to propose an e-commerce technology
with respect to which it would be required to develop an e-commerce website which will have a
live customers service system which will engage in the collection of the different orders from the
side of the different restaurants who want to associate their operations with that of the operations
of the online domain. Moreover, through this online domain, the business will also be able to
cater to the needs of the different customers who are present in other parts of the country and
would prefer to fulfill their daily needs through the online domain. The functioning mechanism
based on which the particular website will function can be stated to be as follows:
1. A particular shopper will visit the website and the website will be presented in a
categorized manner with respect to which it becomes easier for the viewer to view the
products.
2. The customer will be able to add the products in the cart and then create an account. In
this manner, all the customer data is saved in the database.
3. Once the checkout has been done, the website then becomes a lock symbol making use of
an SSL certificate.

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4. When the checkout will be done then, the Box Knife Company will contact the third
party software, to get the shipping rates as available and the different products will be
shipped accordingly.
5. The customer would be required to make payment to the website using either credit
cards, net banking, debit cards or the method of cash on delivery.
6. In this manner, the company will be able to complete the order of the customer.
7. For the purpose of the maintenance of the different tools as purchased by the different
restaurants, a different portal will be present which will then be connected to the e-
commerce website.
The knife sharpening procedure
The Box Knife Sharpening’s aims to carry out the traditional procedure of knife
sharpening in order to ensure that it is successfully able to help the different Indian Restaurants
in meeting their needs and thereby ensuring that the maintenance cost of the different restaurants
is relatively low in nature. The traditional knife sharpening procedure is carried out in various
steps in order to deal with the knives of various types starting from thee coarsest knife which is
the most destructive one in nature to the most delicate one. In addition to this, the different stages
which may or may not be followed by all the knife sharpening procedures may be stated to be as
follows:

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Figure 2 and 3: The traditional knife sharpening process
(Source: Sharpeningsupplies.com 2018)
The first step comprises of the sharpening process whereby the metal is removed in order
to form a new edge of the knife. In this manner, the process of rough sharpening or making use
of the water stones, medium grits as well as the sandpaper method may be followed adequately.
The second method in the above method is the fine sharpening with respect to which the same
tools as mentioned earlier may be used but the grit of the tool is finer in nature. In addition to
this, another traditional method which is adopted for the sharpening of the knife may comprise of
the straightening of the particular metal on the blade and removing any excess quantities of metal
on the knife. The last step is the process of polishing with respect to which the knife is given a
mirror finish. Hence, the three main stages can be stated to be as follows:
Figure 3: The knife sharpening procedure
Grinding Steeling Stropping

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The finest level of sharpening is done with respect to the use of the kitchen knives. It is
done more progressively but different methods by making use of blades and applications is done.
Usually, the knives are sharpened a few times in a year and then grounded on a rough stone after
many years of use. The kitchen knives are steeled before and sometimes after each use due to the
heavy use and are sharpened a few times in a year. Hence, in a similar manner, even Box Knife
Sharpening’s makes use of this traditional procedure of knife sharpening and grinding procedure
in order to ensure that the knives of the Indian Restaurants are processed and presented to the
customers in the best manner.
b.Business model for product/ service delivery
The business model is considered to be an essential part of any business and thereby
assists in the understanding of the overall functioning of the organization and the manner in
which the firm aims to earn the revenue from the operations. The Box Knife Sharpening’s will
be required to operate on a business model which will comprise of various moving parts. The
different moving parts of the business model can be stated to be that the company will engage in
the direct selling of the goods (Aldrich and Waldinger 1990). In this manner, the company will
be able to retain all the profits of the company for itself and be able to ensure that the
organization will find success in the long run. Moreover, the inventory of the goods will be
maintained by the firm itself. It will also be employing a group of employees for the services
relating to the overall maintenance of the knives and will be hiring a third party for the different
delivery executives who will be delivering the different goods of the firm. In this manner, the
different customers who will be going online to purchase the product will be able to do so and
readily avail them for the purpose.

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Along with this mechanism of direct selling, the organization will be also providing an
opportunity to the other retailers and local sellers to buy their products. These partners will
engage in the sales of the products which are less common in nature and tend to provide a unique
credibility to the Box Knife firm.
A portion of the sales being made by these different retailers will be taken up by the Box
Knives in the form of a commission. In addition to this, the maintenance aspect of the firm
which aimed to provide adequate service to the different restaurants in order to maintain their
tools and their knives on a weekly basis, it could be understood that Box Knife will also be
required to maintain a subscription based business model in a premium account through which
the different restaurant owners will be required to pay a nominal fees with respect to which the
kitchen tools will be maintained accordingly. In this manner, the organization will not only earn
its revenue through the sales of the HSS knives but will also earn a considerable amount through
the maintenance account.
c. Market analysis and Segment structure (Analysis of one, three and five year customer
base) Prospect Feedback
The market analysis forms an integral aspect of any business plan and hence, it needs to
be understood that, in the given section the chosen market of the Indian restaurants shall be
analyzed. According to Thehindubusinessline.com (2018), the Indians have now become quite
open to the idea of eating out at the restaurants and with respect to this, it can be understood that
as the wages of the different individuals have been increasing and hence, not just on special
occasions, but these individuals like to eat out on normal days as well. The urbanization has also
lead to considerable change in the mindset of the different individuals and hence, it can be
mentioned that the consumption habits of the different individuals have also undergone a

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considerable change. The annual food services sales in the United States has been increasing at a
rate of 10% annually which can be considered to be almost the double of the growth rate of the
American market. Moreover, in the year 2021, this number will then increase and become double
of what it is at present. For the different private firms has well as the global restaurant brands ,
the Indian market forms a huge potential with respect to which their organization will be
successfully able to attain saturation levels in the years to come up. Hence, the competition
between the international brands as well as the home grown Indian operators will also increase
considerably.
Figure: The growing market of Indian Food service business
(Source: Thehindubusinessline.com 2018)

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According to Thehindubusinessline.com (2018), in India the full service restaurants have
the largest market share and comprise of around 57% of the total sales of the particular
organization. In addition to this, it also needs to be understood that as the country is a vast one,
the country is a giant patchwork of cultures as well as the cuisines, there are various
organizations in the form of the restaurants which are small and independent in nature. It can be
understood that, around only 2% of the total inventory of the restaurants will be branded and
other restaurants tend to use generic products. However, it can be stated that the momentum of
the restaurants has been increasing and social media has been influencing the sales which takes
place in these restaurants at large.
One year customer base
In the first year, the Box Knife firm aims to target all the large restaurants as present. In
this manner, the company will be able to ensure that, these restaurants subscribe to the
maintenance service of the HSS service knives which will be made available to the different
restaurants (Miller 1983). Moreover, it will also aim at targeting the middle sized restaurant
during this period so as to ensure that they are successfully able to engage in with the different
operations of the firm at large. In this manner, the organization will be successfully able to get
into an engagement with the different restaurants as present.
Three year customer base
In the three year time frame, the firm aims to target the general households as well. As
the firm aims to ensure that it is able to expand its operations successfully and cater to the needs
of the different individuals as well, the company will be successfully able to engage in becoming

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a regular e-commerce website and solve the problems as well as the issues of the general
audience as well.
Five year customer base
In the time period of five years, Box knife sharpening has an aim to get into the business of
modifying the different kitchens as well. As the company aims to become relatively popular in
India in a period of five years, it has planned for itself to get into the domain of the modifying
kitchens and making use of other modified techniques to make the ultimate brand name for itself.
d.Pricing model
Box Knife Sharpening’s can be stated to be an e-commerce website and according to
Kuratko (2016), there are endless ways to configure the pricing for the online business ,
however, these revenue strategies often leave less revenue on the table and can have a strong
impact on the brand image of the organization as well. Hence, if with respect to this, in case the
pricing of the firm is not done in a right manner then, the business shall result in considerable
losses for itself. Hence, the pricing model of the Box Knife sharpening need to be such that, it
results in a considerable retail mark up and the firm is able to find success in the long run (Miller
1983). The Value based pricing strategy can be referred to as one such pricing strategy, which is
required to be adopted by the firm in order to ensure that the organization is able to build long
term relationships with the different customers and at the same time, earn a considerable share of
revenue for itself.
The value based pricing model is a wholesome pricing model which tends to ensure that a
company is successfully able to appeal to its customers and at the same time, it does not lose out

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on the money which is a share of the revenue of the firm. The value based pricing assists the firm
in making them feel happy and prevents the, from changing their decisions in case they feel that,
they are not being cheated and the e-commerce portal is being able to meet their expectations.
The value based pricing will assist in building the brand name of the firm, build stronger
customer relationships and assist in improving the bottom line operations.
The procedure of a value based pricing strategy is as follows:
e.Competitor analysis
Direct/ Indirect
The competitor analysis can be described as one of the most crucial type of an analysis
that may be undertaken by an organization to understand the overall expectations which a
particular firm is expected to abide by. The digitalization of various business organizations has
led to an increase in the competition facet and made the different customer purchase quite easy in
nature. Different business enterprises have developed their online domain and provide the
clientele with a wide variety of goods (Aldrich and Waldinger 1990). For the Box Knife
organizations, the different types of competition which the company will be faced by can be
stated to be the popular e-commerce websites as well as the retailers will prove to be a strong
competition for the Box Knife sharpening.

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Firstly in India, the largest e-commerce website is the Flipkart which was established
back in 2007 and has its headquarters in in Bangalore. The company began as the store for retail
books but at present it is the largest portal and sells a wide range of kitchen items to sell in the
country. The portal approximately makes a sale of 20 per minute. The next competitor present in
the particular domain can be stated to be the Amazon. Amazon is a global retailer which sells a
wide variety of goods which comprises of kitchen ware as well and with respect to this, the
organization will prove to be a considerable competition for the firm. Other portals like the Snap
deal and Shop clues also sell goods of the kitchenware and with respect to this, the firm is
successfully able to provide adequate competition to the firms like Box Knife Sharpening’s.
Lastly, the organization also faces adequate competition from the other competitors present
which are in form of the physical retailers. These retailers are present in every street and often
tend to offer considerable discounts to the customers. Some of these retailers who provide a
fierce competition to the Box Knife Sharpening’s can be stated to be the Hariom Equipment’s,
Akhand Jyoti Engineers, JR Equipment’s, Veera Kitchen Point and Fore Tech Kitchen
Equipment’s. These are the local retailers and provide considerable competition to the online
domain of Box Knife Sharpening’s.
Shifts in power and position
Although the Box Knife can be stated to be providing premium service and specialized
services as well, however, there exists considerable shift in the power and position of the
different competitors as present (Aldrich and Waldinger 1990). With respect to this, it can be
understood that, the position and the power of the different competitors keeps shifting and the
Box Knife can be stated to be in a quite doubtful position because the other competitors as
present like Flipkart, Amazon, Snap deal and Shop clues often conduct sales in the firm and with

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respect to this, they are easily able to provide adequate competition to the different customers in
order to ensure long term success with respect to the same. However, in the beginning of the
operations, Box Knife will not be able to provide such offers and can suffer adequate loss with
respect to this.
f.Portfolio analysis
1.IP/patents
In order to carry out any business successfully, it can be taken to be critical for a business
to have the right amount of patents as well as the intellectual property rights which then allow
them to operate well and to be successful in their overall operations of the firm. This Box Knife
startup will find it crucial to apply for a large number of patents so as to ensure that the business
is able to find success and easily survive for a long period of time. As the Box Knife is engaging
itself in the development of a communication platform on the basis of a fiber architecture, it will
be required to simultaneously secure the different patents in order to ensure their worth.
However, it needs to be noted that as the Box Knife business is engaging in the business method
whereby it is not indulging in any new scientific developments (Baumol 1968). Hence, with
respect to this, the organization, is a strong believer in this philosophy and for this reason in
India, they may not be required to undertake a patent protection for the particular business kind.
With respect to the intellectual property, it can be stated that, India has a good set of regulations
as well as rules which allows the different businesses to regulate and carry out the different
operations soundly. In addition to this, it is also considered to be relevant for the different e-
commerce websites in India to get license which will allow the different businesses to perform
well. For instance, the different startup companies like Veveo has filed more than 75 patents so
as to ensure that it faces no issues in the future of the business.

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g. Funding
Funding is often taken up as an essential part of the startup and any startup as present in
the business environment will be requiring considerable funds which will allow them to carry out
their different operations (Cunningham and Lischeron 1991). In this manner, they will be able to
pay adequately for their initial capital requirements and also be able to keep a share of the money
for the different working capital which will be required in the daily course of business. Hence,
with respect to this, it can be rightfully understood that, any organization would be required to
gain considerable funds and with respect to this, the Box Knife has made a selection of two
different sources of funds which have been explained as follows:
a.Crowd funding
The crowd funding can be described as the practice of funding a particular project or a
venture by raising small amount of funds from various people the medium through which the
funds are raised can be stated to be the internet medium. The crowd funding is a form of crowd
sourcing which helps in ensuring long term success. For instance, in 2015, US$ 24 billion was
raised worldwide though the medium of crowd funding. Not only through the medium of
internet, but the medium of mail order subscriptions, benefit events and other such
considerations are also taken to associate with crowd funding. According to Kuratko (2016), the
medium of crowd funding can also be used to fund for a large number of events which may be
categorized as the entrepreneurial ventures, medical ventures, community oriented ventures,
cancer treatments and other such noble causes.
The reason why the crowd funding is taken as a considerable procedure is because, of the
crowd trigger as present in the process and the influence of the value of the offering out of the
entire procedure. In the particular procedure, each individual acts as an agent of the offering,

24
selecting as well as in promoting the projects which make it bigger in size and in spirit. The
reason why the different consumers are willing to be a part of the venture is because the different
consumers, tend to feel associated with the cause and want to take up a social initiative which
allows them to attain success in the long run and provides them with a sense of satisfaction as
well. Various websites in India tend to offer crowd funding facilities (Parker 2018). These
websites can be stated to be the websites like Rang de, Fair cent, Ketto, Wish berry and Impact
guru. These crowd funding software’s have provided adequate support to the organization who
want to perform well in the long run and hence, Box Knife will be successfully be able to make
use of any one of these venture programs and access the adequate capital which it is required to.
b.Venture capital
Venture capital can be rightfully described as the financing which is provided by the
different investors to the startup company which has a long term potential. The well off investors
often take up the role of the venture capitalists and tend to provide resources to the firm not only
in the form of a technical service but also a managerial expertise (Evans and Leighton 1989).
The investors can also take up the form of a financial institution. However, it needs to be noted
that it may often be considered to be quite risky for these investors, in case the firm does not
perform well, but they are also required to see to it that, they only invest in firms which have a
good potential. Hence, the Box Knife sharpening can look out for the adequate investments in
order to ensure success with the finances.
h.Financial analysis
Assumptions
Year 1 model inputs

25
Use this area to capture key components of the Profit and Loss Statement and the Balance Sheet for the first year
only.
1. Year-one revenue expectancy
<Product
1>
<Product
2>
<Product
3>
<Product
4>
Number of units sold annually 100,000 150,000 200,000 50,000
Average sales price per unit $20.00 $20.00 $30.00 $500.00
Annual revenue per product $2,000,000
$3,000,00
0
$6,000,00
0
$25,000,00
0
Total year 1 revenue
$36,000,00
0
2. Year 1 cost of goods sold
<Product
1>
<Product
2>
<Product
3>
<Product
4>
Expected gross margin per product 10.00%
Annual cost of goods sold per product $200,000 $0 $0 $0
Total year 1 cost of goods sold $200,000
3. Annual maintenance, repair, and overhaul
Factor (%) on capital equipment 10%
4. Number of years for straight-line depreciation 5
5. Annual tax rate 30%
6. If long-term debt is being used to finance
operations, enter the total loan value.
2,000,0
00
7. Account receivable and payable % 5%

26
Startup and Initial Funding
Sources of Capital Startup Expenses
Owners' Investment (name & % ownership) Buildings / Real
Estate
Your name & % ownership $
1,000,000
Purchase $
12,000
Other Investor 200,0
00
Construction 30,0
00
Other Investor 1,000,00
0
Remodeling 2,0
00
Other Investor
-
Other 12,0
00
Total Investment $
2,200,000
Total Buildings and R
/ E
$
56,000
Bank Loans Leasehold
Improvements
Bank 1 Item 1 $
120,000
Bank 2
-
Item 2
-
Bank 3
-
Item 3
-
Bank 4
-
Item 4
-
Total Bank Loans $
-
Total L / H
Improvements
$
120,000
Other Loans Capital Equipment
List
Source 1 $
2,000,000
Furniture $
30,000
Source 2
-
Equipment 120,00
0
Total Other Loans $
2,000,000
Fixtures 30,0
00
Machinery 120,00
0
Other
-
Summary Statement Total Capital
Equipment
$
300,000
Sources of Capital Location and Admin
Expenses
Owners' and Other Investments $
2,200,000
Rental $
300,000

27
Bank Loans
-
Utility Deposits 30,0
00
Other Loans 2,000,00
0
Legal and
Accounting Fees
23,0
00
Total Source of Funds $
4,200,000
Prepaid Insurance 23,0
00
Pre-opening Salaries 12,0
00
Startup Expenses Other 10,0
00
Bldgs / Real Estate $
56,000
Total Location and
Admin Expenses
$
398,000
Leasehold Improvements 120,0
00
Capital Equipment 300,0
00
Opening Inventory
Location / Admin Expenses 398,0
00
Category 1 $
30,000
Opening Inventory 272,0
00
Category 2 230,00
0
Advertising / Promo Expenses 179,8
89
Category 3 12,0
00
Other Expenses 480,0
00
Category 4
-
Total Startup Expenses $
1,805,889
Category 5
-
Total Inventory $
272,000
Advertising and
Promotional
Expenses
Advertising $
50,000
Signage 12,0
00
Printing 20,0
00
Travel &
Entertainment
30,0
00
Other / Additional
categories
67,8
89
Total Adv and Promo
expenses
$
179,889
Payroll and payroll
taxes
Expense 1 $
250,000
Expense 2 230,00
0
Total Payroll and
payroll taxes
$
480,000

28
Cash flow
5-Year Financial Plan—
Manufacturing
Cash flow
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Operating activities
Net income $24,460,0
60
$24,960,6
08
$25,973,2
09
$27,548,2
58
$29,770,8
76
$132,713,
011
Depreciation $95,200 $97,104 $99,008 $100,912 $102,816 $495,040
Accounts receivable ($36,000) ($73,440) ($114,566
)
($161,921
)
$0 ($385,927
)
Inventories $0 $0 $0 $0 $0 $0
Accounts payable $200 $408 $636 $900 $0 $2,144
Amortization 0 0 $0 $0 $0 $0
Other liabilities 0 0 $0 $0 $0 $0
Other operating cash flow
items
0 0 $0 $0 $0 $0
Total operating activities $24,519,4
60
$24,984,6
80
$25,958,2
87
$27,488,1
49
$29,873,6
92
$132,824,
268
$0
Investing activities $0
Capital expenditures $0 $0 $0 $0 $0 $0
Acquisition of business 0 0 0 0 0 $0
Sale of fixed assets ($10,482,
883)
($10,697,
403)
($11,131,
375)
($11,806,
396)
($12,758,
947)
($56,877,
005)
Other investing cash flow
items
0 0 0 0 0 $0
Total investing activities ($10,482,
883)
($10,697,
403)
($11,131,
375)
($11,806,
396)
($12,758,
947)
($56,877,
005)
Financing activities
Long-term debt/financing ($369,254
)
($384,024
)
($399,385
)
($415,361
)
($431,975
)
($2,000,0
00)
Preferred stock 0 0 0 0 0 0
Total cash dividends paid 0 0 0 0 0 0
Common stock 0 0 0 0 0 0
Other financing cash flow
items
0 0 0 0 0 0
Total financing activities ($369,254
)
($384,024
)
($399,385
)
($415,361
)
($431,975
)
($2,000,0
00)
Cumulative cash flow $13,667,3
23
$13,903,2
52
$14,427,5
27
$15,266,3
92
$16,682,7
70
$73,947,2
63
Beginning cash balance $2,394,11
1
$16,061,4
34
$29,964,6
86
$44,392,2
13
$59,658,6
04

29
Ending cash balance $16,061,4
34
$29,964,6
86
$44,392,2
13
$59,658,6
04
$76,341,3
74
Profit and Loss
Profit and loss projections
Year-by-year profit and loss assumptions
Year 1 Year 2 Year 3 Year 4 Year 5
Annual cumulative price (revenue)
increase
- 2.00% 4.00% 6.00% 8.00%
Annual cumulative inflation (expense)
increase
- 2.00% 4.00% 6.00% 8.00%
Interest rate on ending cash
balance
0.50% 0.50% 0.50% 0.50% 0.50%
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
Gross revenue $36,000,0
00
$36,720,0
00
$38,188,8
00
$40,480,1
28
$43,718,538
Cost of goods sold $200,000 $204,000 $212,160 $224,890 $242,881
Gross margin $35,800,0
00
$36,516,0
00
$37,976,6
40
$40,255,2
38
$43,475,657
Other revenue [source] $0 $0 $0 $0 $0
Interest income $0 $0 $0 $0 $0
Total revenue $35,800,0
00
$36,516,0
00
$37,976,6
40
$40,255,2
38
$43,475,657
Operating expenses
Sales and marketing $179,889 $183,487 $190,826 $202,276 $218,458
Payroll and payroll taxes $480,000 $489,600 $509,184 $539,735 $582,914
Depreciation $95,200 $97,104 $99,008 $100,912 $102,816
Maintenance, repair, and
overhaul
$30,000 $30,600 $31,200 $31,800 $32,400
Total operating expenses $785,089 $800,791 $830,218 $874,723 $936,588
Operating income $35,014,9
11
$35,715,2
09
$37,146,4
22
$39,380,5
16
$42,539,070
Interest expense on long-term
debt
$71,968 $57,198 $41,837 $25,862 $9,247
Operating income before other
items
$34,942,9
43
$35,658,0
11
$37,104,5
85
$39,354,6
54
$42,529,823
Loss (gain) on sale of assets $0 $0 $0 $0 $0

30
Other unusual expenses (income) $0 $0 $0 $0 $0
Earnings before taxes $34,942,9
43
$35,658,0
11
$37,104,5
85
$39,354,6
54
$42,529,823
Taxes on income 30% $10,482,8
83
$10,697,4
03
$11,131,3
75
$11,806,3
96
$12,758,947
Net income (loss) $24,460,0
60
$24,960,6
08
$25,973,2
09
$27,548,2
58
$29,770,876
Cumulative income $24,460,0
60
$49,420,6
68
$75,393,8
77
$102,942,
135
$132,713,01
1
Schedule for investor returns
year Investments Returns roi%
1 $ 4,590,978 $24,460,060 4.33
2 $ 1,004,791.00 $49,420,668 48.19
3 $ 1,042,378.00 $75,393,877 71.33
4 $ 1,099,613.00 $102,942,135 92.62
5 $ 1,179,469.00 $132,713,011 111.52
h.Skill requirements
Conducting the different operations of a business cannot be considered to be an easy task
and with respect to this, many companies, will be adequately required to engage in the right kind
of managerial as well as the functional skill so as to ensure that, the business is able to gain
success in the long run (Timmons and Spinelli 1994). Hence, given below are the functional
skills as well as the management skills which the business, Box Knife Sharpening’s would be
required to have in the long run of the business.
Functional skills

31
 Financial management: Financial management tends to form a crucial part of the business
environment and with respect to this it becomes considerably important for a firm to
ensure that it is able to engage itself into the correct management of the different
financial instruments and be able to derive the overall profitability of the business at
large. In this procedure, the business will be able to ensure success and will be able to
engage in competition as well.
 Marketing, sales and customer service: The marketing and sales can be considered to be
an essential part of the organization and with respect to this, it needs to be understood
that the different managers as present in the organization will be able to engage in a good
marketing networking, incur sales with respect to the same and also be able to provide
adequate customer service so as to see to it that the organization will be able to gain
success in the long run (Kirzner 2015).
 Networking : Lastly, at Box Knife Sharpening’s, the different people working for the
firm would also be required to have adequate Networking skills which will allow them to
successfully engage in the communication and be able to expand their businesses
adequately.
Management skills
The management is considered to be a crucial part of the organization and in order to
ensure that a firm is able to attain success in the long run, the different executives as well as the
management at the firm would be required to have the following skills:
a. Planning: All the managers as present in the Box Knife Sharpening’s would be required
to ensure that they are able to engage themselves in adequate planning activities and tasks

32
so as to ensure that they successfully able to carry out the different activities as involved
in the firm (Eckhardt and Shane 2003).
b. Communication: The managers will also be required to engage in relevant
communication with one another in order to build the networking between the different
companies and to ensure that the overall popularity of the firm also increases.
c. Decision making: The decision making at the firm also comprises as a crucial
management skills with respect to which the business will be required make choices and
ensure that the right choice is taken up as a decision.
d. Delegation: The delegation also forms an important part of the organization. The
different managers will be required to delegate their duties and responsibilities
adequately so as to ensure success (Kirzner 2015).
e. Problem solving: The managers also need to comprise of adequate problem solving skills
so as to ensure that when the organization will be faced by any scenario then they will be
able to solve it properly.
f. Motivation: The motivation also needs to be carried out by the different managers in
order to ensure that the different employees are motivated to perform well.
Conclusions
Hence, from the given project it can be rightfully understood that the Indian market
where the Box Knife Sharpening’s is planning to invest in can be stated to be a considerably
good idea. As understood from the previous analysis, India can be taken to be an emerging
country where every organization around the company plans to invest in and with respect to this,
the choice of Box Knife Sharpening’s has to be appreciated. The business idea which has been
presented in the given case study can be stated to be that of developing an organization which

33
caters to the needs of the different individuals who are regular guests at the different restaurants
and like to eat out. However, they find it quite difficult when the restaurants are unable to
maintain the overall safety standards and make use of the different rusted knives which then
tends to cause food poisoning to the different guests at the restaurants. In order to avoid this, the
Box Knife Company has planned to come up with a business idea which shall provide adequate
support to the different restaurants and ensure that they are successfully being able to change and
maintain their knives and other kitchen tools as well as the appliances regularly. This will be
done by the company on a weekly basis. In regard to this, the company will also be ensuring that,
they maintain this system on a minimal monetary basis so as to ensure that the different
restaurants are willing to associate themselves with the company and are able to engage in long
term success.
Along with a considerable business idea, this can also be considered to be a social idea
which will then ensure that the business is not only keeping the health of the customers as a
priority but is also taking considerable measures to see to it that the different firms tend to
become regular with respect to the safety and cleanliness aspect of the firm and also keep the
consumer priority at the top. Along with the HSS knife provision, the company Box Knife
provisions aims to provide other related goods as well such as other kitchen appliances, food
processing machineries, electronics and all other such tools and appliances which would make
the overall service to the different customers quite easy. The project above plans to be present
first in all the Metropolitan cities of the country which will then be followed by the other second
tired cities and then the different towns. Hence, the particular project proposal aimed to cover all
the crucial ideas about the project.

34
The problem which was successfully identified with respect to the idea could be stated to
be the one related to the fact that the different Indian restaurants often make use of the rusted
knife which tends to cause harm to the food which is prepared and served by them and with
respect to this, the organization aimed to convert this problem being faced by the guests at the
restaurant and convert it to a viable opportunity which would then help these companies to
ensure that they do not make use of the rusted knives and ensure that the different kitchen tools
which are being used by them tend to be safe to use and hygienic in nature which would then
allow the firm as a whole to attain its overall objectives at large. Starting with the knives, the
company also aims to provide other kitchen appliances to the restaurants and in the future aims
to get into the kitchen modernization segment. This will then be followed by an initiative which
will have to be taken up by the firm in order to cater to the needs of growing businesses and the
increasing needs of the customers as well. In this scenario, the different customers will be
allowed to make direct purchases from company and in this way, the business will not just fulfill
the Business to business needs but will also be able to fulfill the Business to customer needs
easily and this ill then allow the firm to attain a larger audience and ensure that the organization
is able to attain popularity in the different spheres of the business operations.
It was discussed that although there are several ideas as well as the opportunities
available for the different Restaurants to maintain the hygiene levels of the different restaurants
and to ensure that, it is successfully able to attain success in the long run, these solutions can be
stated to be quite temporary in nature owing to the fact that, the inspection and other initiatives
which are taken up by the restaurants are often biased in nature and may or may not result in the
overall welfare of the organization. Hence, with respect to this, it can be rightly understood that,
at present there are certain solutions present to maintain the hygienic level at the Indian

35
restaurant kitchens, however, these ways cannot be taken to be permanent in nature and for this
reason, the idea which Box Knife Sharpening’s has come up with is a permanent solution to the
problems as faced by the different restaurants as present.
The stakeholders of the company were mapped accordingly which presented an overall idea
about the performance of the firm in the long run. This means that, the company made the plan to
identify the most important stakeholders for the firm which were the different customers, the
restaurants, the government and the other members of the society and thereby decided to map
them according to their position in the map of the company. The medium of technology which
the company intends to take up can be stated to be the online e-commerce portal. He e-commerce
portal will serve as the best technology which the company can take up for itself is due to the
fact that, it requires minimum investment from the side of the firm but is known to have the
maximum reach in terms of the target audiences. The company aims to form a website and form
a team on the basis of which the company will be contacting the different restaurants. This will
be followed by a visit to the restaurant by the different team members and these team members
will then take an initiative to build a strong relationship with the different members of the
restaurants and try to form a contract with them which then allow the different restaurants to get
their knives checked and assessed regularly.
The customer or the restaurant who will be the customers of the firm would be required to
visit the website, make the adequate purchase, pay for the purchase and then see to it that, they
are successfully able to get the products delivered at their place or be able to engage in a
successful relationship with the firm. The business has aimed to deal with a comprehensive
business model whereby the firm will be selling the different products directly to the consumers
and in the later stage of the business, the organization will be engaging in involving other

36
retailers as well who will then sell the products to the different customers but instead will be
required to pay a certain percentage of their income to the company in the form of a commission.
In this manner, the Box Knife sharpening’s will be able to increase its consumer base and the
geographical presence as well. With respect to this, the organization had conducted a thorough
market analysis through which it has aimed to engage in the long term success of the firm.
The pricing policy which the company has aimed to adopt can be stated to be related to the
value based pricing with respect to which the firm would be required to set the pricing based on a
considerable share of the different costs but also on the basis of the value of the goods as
perceived by the different customers. The Box Knife Sharpening’s can be stated to have a
considerable vision, with respect to the fact that, it has a vision for itself for the next five years
and has decided to expand its operations in a manner which that it will successfully be able to
ensure that the business gains success in the long run. Upon undertaking the competitor analysis,
it could be understood that if the firm wants to attain success in the future it would be required to
come up with attractive offers. This the global giant Amazon, Snap deal and others as present in
India which is why the firm would be required to engage in considerable strategies. The different
sources of capital which the firm aims to undertake can be stated to be the medium of either
crowd funding which are available in abundance in India or the Venture capitalists. The business
idea is quite viable in nature which would help the firm in attaining success. In the last section of
the report, the different skills which would be crucial to manage the particular business have
been discussed and in lieu of this if the management team at Box Knife sharpening’s is
successfully able to carry out the given operations, then it will be able to ensure long term
success and long term sustainability with respect to the same.
Project Viability

37
In order to ensure the project viability, the breakeven analysis of the firm will be
undertaken which would go a long way in assisting the firm to understand whether he particular
project it aims to undertake is viable in nature or not and whether it will be able to attain the
profits regularly or not.
Break even
Fixed
Expenses
Fixed Expenses
Bldgs / Real Estate $
56,000
Leasehold Improvements
120,000
Capital Equipment
300,000
Location / Admin
Expenses 398,000
Opening Inventory
272,000
Advertising / Promo
Expenses 179,889
Other Expenses
480,000
Total Fixed Expenses $
1,805,889
Variable
Expenses
Inventory or Materials
Direct labor (includes
payroll taxes)
Other expenses
Other expenses
Salaries (includes payroll
taxes)
Supplies
Total Variable Expenses 0%
Breakeven Sales level = $1,805,889
.00
Year 1 Year 2 Year 3 Year 4 Year 5
Net income (loss) #######
######
$24,460,
059.96
$24,960,
607.83
$25,973,
209.28
$27,548,2
57.72
$29,770,8
75.77
Cumulative income $22,654,
170.96
$47,614,
778.79
$73,587,
988.07
$101,136,
245.79
$130,907,
121.56
Positive Cash Flow? TRUE TRUE TRUE TRUE TRUE

38
Undiscounted breakeven
year
1 years
Actual break even period 0.07 years
From the given table, it can be seen that, in the first year of operation itself, the firm will
be able to attain success and that, this can be used as a substantial proof in order to understand
whether the company will be successful. The prospects can be stated to be very high and it can
be understood that the firm would be successful in attaining success in the long run. The business
runs on a low cost model with respect to which it can be considered to be comparatively easier
for the firm to engage in larger sized operations in the coming years and ensure that it is
successfully able to gain success in the long run.
Recommendations
1. Future actions for potential investors
Hence, from the given project it could be understood that the basic idea behind the entire
venture was to ensure successfully ensure that the restaurants in India become more hygienic in
nature and make use of the best tools in order to see to it that they are successfully able to engage
into the trust of the different customers and hence, with respect to this, it will be able to engage
in sales which are higher than earlier (Drucker 2014). However, certain recommendations have
been provided for the different potential investors in order to ensure that the business is able to
become more successful and the organization will be able to provide higher returns to the
different investors as present.
1. Analyzing the financial statements and making use of considerable financial instruments

39
The investors can be recommended to undertake a regular analysis of the different
financial statements as present. The financial statements serve as a considerable source of
information for the different organizations and goes a long way in ensuring that the organization
has been going on the right track. Hence, with respect to this, the different investors would be
advised to maintain a considerable flow of information through these financial statements
(Kirzner 2015). They are also recommended to make the use of the different financial
instruments as well which will then go a long way in assisting them to understand the use of their
funds being made.
2. Maintaining Due diligence
The different investors are also recommended and expected to maintain the due diligence.
This means that when they make considerable investments in the firm they are expected to
ensure that they are able to understand the manner in which the company has been functioning
and also ensure that, the organization would be able to gain their trust in the long run (Bygrave
and Hofer 1992). They need to become accustomed to the ways in which the organization has
been functioning and in a similar manner, they are required to understand how the firm will
reach its overall objectives.
3. Long term relationship
The Long term relationships with the investors forms a crucial base for the overall bond
which is required to be formed with the organization. Hence, with respect to this, it needs to be
understood by the different investors that they would be required to get into an engaging
relationships with the different members of the firm and the overall organization in order to

40
ensure that they are able to gain maximum returns for the different activities which need to be
made by them.
4. Information flow
In addition to this, the different investors are also recommended to maintain a constant
flow of information with the firm (Hodgetts and Kuratko 2001). This is because, the company
has placed a large amount of trust on the investors and allowed them to engage in the different
operations of the firm, with respect to which they will be required to share a considerable flow of
information with the organization and allow them to gain a substantial idea about their moves
and intentions pertaining to the investments as made in the firm.
5. Asking for advice
The advice which can be provided to the investors, needs to be asked for. Hence, with
respect to this, the different investors as present in the organization are advised to see to it that in
case they plan to disinvest in the firm or they would like to understand about the working of the
firm and other such minute details, then they are expected to approach the firm easily, in order to
ensure that they gain the right kind of information which can be processed for the overall goal
achievement of the organization (Hodgetts and Kuratko 2001). In addition to the different
recommendations having been provided to the investors, the following information will be
passed on to the different investors which will assist them in understanding the overall ordeals of
the firm.
6. Box knifings will hire right people
It can be made known to the different investors of the Box Knife sharpening’s that, the
company will be hiring capable employees for the execution of the different operations in order

41
to ensure that the firm is able to gain success in the long run and that the different funds as being
invested by the organization can be stated to be in safe hands.
7. It will expand into all cities in the country
The Box Knife Sharpening’s at first aims to expand its operations into the different
metropolitan cities which shall then be followed by the expansions into the different second tired
cities in India (King and Levine 1993). In this manner, the organization would be successfully
able to attain long term success and ensure that it is being able to gain the maximum target
audience for itself which shall then assist the firm in improving its brand image.
8. Keep an eye on the market
The firm would be quite active in nature and would be keeping a continuous eye on the
market in order to ensure that it can avail considerable new opportunities for the wellbeing of the
firm and that it will successfully be able to engage in new business trends as well. In this manner,
Box Knife Sharpening’s will be successfully able to ensure that it overall operations are able to
expand and that the firm will be able to attain long term profitability and growth.
9. Increase the value of the firm
The investors also need to be provided with adequate information on the fact that the firm
has been taking in considerable measures so as to ensure that it is successfully able to improve
and increase the overall value of the firm and ensure a higher price in the market along with a
well improved brand name for itself.
Further research required
However, further research is required for the firm in terms of the aspects like the follows

42
 On demographics: The firm is required to be quite sure of its demographics and
ensure that, it is successfully able to engage in profitable operations. In this
manner, the company will be successfully able to become aware of the different
demographics and also search for new as well more successfully target markets
which the firm can serve (Baumol 1996).
 On the different e-commerce trends: The firm also requires to research upon the
different e-commerce trends which are present in the market. With this, it will be
successfully able to ensure that, it is updated with the latest trends and that, and it
is able to improve its overall operations with respect to the same.
Growth scenarios, three years, five years.
Hence, in the coming years, Box Knife Sharpening’s aims to see itself as a considerable
growing organization, which will be able to increase its brand image and serve the Indian market
successfully (Shapero and Sokol 1982). At present, it will be catering to the needs of the
different restaurants and ensure that their knives and other equipment’s are changed considerable
with the help of which they will be able to ensure hygiene. In the future, the firm aims to get into
the modernization of the different kitchens and also see to it that the firm is able to become a
Business to Customer oriented business.

43
References
Aldrich, H.E. and Waldinger, R., 1990. Ethnicity and entrepreneurship. Annual review of
sociology, 16(1), pp.111-135.
Baumol, W.J., 1968. Entrepreneurship in economic theory. The American economic review,
pp.64-71.
Baumol, W.J., 1996. Entrepreneurship: Productive, unproductive, and destructive. Journal of
business venturing, 11(1), pp.3-22.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Bygrave, W.D. and Hofer, C.W., 1992. Theorizing about entrepreneurship. Entrepreneurship
theory and Practice, 16(2), pp.13-22.
Cunningham, J.B. and Lischeron, J., 1991. Defining entrepreneurship. Journal of small business
management, 29(1), pp.45-61.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Eckhardt, J.T. and Shane, S.A., 2003. Opportunities and entrepreneurship. Journal of
management, 29(3), pp.333-349.
Evans, D.S. and Leighton, L.S., 1989. Some empirical aspects of entrepreneurship. The
American Economic Review, 79(3), pp.519-535.
Hodgetts, R.M. and Kuratko, D.F., 2001. Entrepreneurship: A contemporary approach. South-
Western/Thomson Learning.

44
King, R.G. and Levine, R., 1993. Finance, entrepreneurship and growth. Journal of Monetary
economics, 32(3), pp.513-542.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Miller, D., 1983. The correlates of entrepreneurship in three types of firms. Management
science, 29(7), pp.770-791.
Parker, S.C., 2018. The economics of entrepreneurship. Cambridge University Press.
Shapero, A. and Sokol, L., 1982. The social dimensions of entrepreneurship.
Thehindubusinessline.com 2018. India as an investment market [online]. Available at:
https://www.thehindubusinessline.com/economy/india-4th-most-attractive-investment-market-
pwc-survey/article26058293.ece (Accessed on: 31 Jan. 2019).
Timmons, J.A. and Spinelli, S., 1994. New venture creation: Entrepreneurship for the 21st
century (Vol. 4). Burr Ridge, IL: Irwin.
Sharpeningsupplies.com 2018. Step by Step Knife Sharpening [online]. Available at:
https://www.sharpeningsupplies.com/Step-by-Step-Knife-Sharpening-W41.aspx(Accessed on:
06 Feb. 2019).

45
Appendix
Balance sheet
Balance sheet projections
Assets Initial
balance
Year 1 Year 2 Year 3 Year 4 Year 5
Cash and short-term
investments
$2,394,11
1
$16,06
1,434
$29,96
4,686
$44,39
2,213
$59,65
8,604
$76,34
1,374
Accounts receivable $1,800,00
0
$1,836,
000
$1,909,
440
$2,024,
006
$2,185,
927
$2,185,
927
Total inventory $0.00 $0.00 $0.00 $0.00 $0.00 $0
Prepaid expenses 0 0 0 0 0 $0
Deferred income tax 0 0 0 0 0 $0
Other current assets 0 0 0 0 0 $0
Total current assets $4,194,11
1
$17,89
7,434
$31,87
4,126
$46,41
6,219
$61,84
4,531
$78,52
7,301
Buildings $56,000 $56,00
0
$56,00
0
$56,00
0
$56,00
0
$56,00
0
Land 0 0 0 0 0 0
Capital improvements $ 120,00 120,00 120,00 120,00 120,00

46
120,000 0 0 0 0 0
Machinery and
equipment
$
300,000
300,00
0
300,00
0
300,00
0
300,00
0
300,00
0
Less: Accumulated
depreciation expense
0 95,200 192,30
4
291,31
2
392,22
4
495,04
0
Net
property/equipment
$476,000 $380,8
00
$283,6
96
$184,6
88
$83,77
6
($19,0
40)
Goodwill $0 $0 $0 $0 $0 $0
Deferred income tax 0 0 0 0 0 0
Long-term investments 0 0 0 0 0 0
Deposits 0 0 0 0 0 0
Other long-term assets 0 0 0 0 0 0
Total assets $4,670,11
1
$18,27
8,234
$32,15
7,822
$46,60
0,907
$61,92
8,307
$78,50
8,261
Liabilities Initial
balance
Year 1 Year 2 Year 3 Year 4 Year 5
Accounts payable $10,000 $10,20
0
$10,60
8
$11,24
4
$12,14
4
$12,14
4
Accrued expenses 0 0 0 0 0 0
Notes payable/short-term
debt
0 0 0 0 0 0

47
Capital leases 0 0 0 0 0 0
Other current liabilities
Total current liabilities $10,000 $10,20
0
$10,60
8
$11,24
4
$12,14
4
$12,14
4
Long-term debt from
loan payment calculator 2,000,000
$1,630,
746
$1,246
,721
$847,3
36
$431,9
75
$0
Other long-term debt $0 $0 $0 $0 $0 $0
Total debt $2,010,00
0
$1,640,
946
$1,257
,329
$858,5
80
$444,1
19
$12,14
4
Other liabilities 0 0 0 0 0 0
Total liabilities $2,010,00
0
$1,640,
946
$1,257
,329
$858,5
80
$444,1
19
$12,14
4
Eq
uity
Initial
balance
Year 1 Year 2 Year 3 Year 4 Year 5
Owner's equity
(common)
$
2,200,000
$2,200,
000
$2,200,
000
$2,200,
000
$2,200,
000
$2,200,
000
Paid-in capital 0 0 0 0 0 0
Preferred equity 0 0 0 0 0 0
Retained earnings 0 0 0 0 0 0

48
Total equity $2,200,00
0
$2,200,
000
$2,200
,000
$2,200
,000
$2,200
,000
$2,200
,000
Total liabilities and
equity
$4,210,00
0
$3,840,
946
$3,457
,329
$3,058
,580
$2,644
,119
$2,212
,144