Business plan: Airport
Introduction
Every business starts with an idea. The idea is modified into a business plan. A business plan is a plan that defines business goals, states the purpose of the business, allocates resources and prepares the business for opportunities and problems. The plan enables the entrepreneur determine whether the business is viable or not.
A business plan is vital in determining the growth and development of a business. It describes a business by stating its name, owner, organization and the accomplishments achieved so far. It states the service or product to be produced, its features and pricing. The market for the business is also assessed in terms of availability, competition and product or service promotion. The state of affairs within the industry is also described. This will include industry conditions, how businesses enter the industry and the type of industry under which the business will fall. It identifies the target customers and how they will be reached. The location of the business is stated. Availability of land for expansion is taken into account. Specific features of the place where the business will be located are stated. The raw materials required, their sources and suppliers of the materials need to be indicated. The management staff is defined in terms of number of directors, number of employees needed and the positions to be filled. The technical abilities, marketing abilities and any other knowledge or experience necessary for the management to clearly perform its functions are identified. Amount of capital required to start the project, how it will be raised, why the capital is needed and how additional capital will be raised are analyzed. Sometimes, the duration of time required to start and complete the project is stated. Therefore, for a business or project to succeed, a well written business plan is mandatory.
The airport to be build has to be defined by clearly stating its name, owner/owners, type of organization (is it a partnership, sole proprietor or corporation?), the objectives to be achieved and the ones that have been achieved so far. For instance, the name of the airport might be Wilson airport a corporation owned by the US government. The airport is to provide air transport related services such as landing of planes.
The airport will provide landing for planes at an affordable price. The runways will be built by experts to ensure that they are of high quality. The landing bay will be spacious (to allow for simultaneous landing and taking off of land) and with loading and offloading facilities. Windsocks will be fixed at strategic positions to enable pilots to see the airport from far. By use of windsocks, pilots will be able to know the strength and direction of the wind. The airport will supplement the services offered by other such companies. The airport will ease congestion in airports. These will improve the speed at which customers are served. It will also provide additional services such as accommodation to pilots and passengers. These services will be offered at a relatively low price to make it affordable to most people. It will improve the level of competition in the market thus the customers benefit by getting high quality services. The low pricing will also attract more flights to the airport hence a large profit margin will be realized by the airport management. High quality services shall be provided.
In market plan, establishment of an airport should review on airport conditions, a precise definition of the target market, an analysis of competitors’ advantages and weaknesses and a promoting and services improvement plan. Conditions that must be considered include government policies, environmental, social, and technological factors.
In political factors the federal airports are subjected to a planning framework in the Airport Act. The master plan which incorporates an Environment Strategy is part of the planning framework in which is required by Airports. The preliminary draft Master Plan is submitted to the Minister for Infrastructure and Transport for a decision. The Minister is expected to approve or refuse to approve the Draft Master Plan. In case the Minister fails to respond within fifty business days from receiving all the necessary information and documents, the Minister is taken to have approved the Draft Master Plan.
In addition, airports era required to develop a major Development Plan in any major developments on the airport site. Before draft version of major development plan is submitted to the minister concerned it first undergoes public consultation. The Government reforms to the airport planning framework are in the National Aviation Policy White Paper.
In addition, airports era required to develop a major Development Plan in any major developments on the airport site. Before draft version of major development plan is submitted to the minister concerned it first undergoes public consultation. The Government reforms to the airport planning framework are in the National Aviation Policy White Paper. In competitive environment, the company will consider the quality services provided to the providers in the travel industry. In our competitive edge will be of retaining and attracting our customers with the most highly trained, with a vast experience and well informed staffs. This will enhance quality service.
The company will target long term opportunities in tourism, business men and explorers. The company targets the major destinations like Europe. The economy of the state will be the most influential factor in how many people travel. On the other hand driving forces for traveling include fuel prices, the threat of terrorism and currency rates.
In Market description, the main factor determined is most Seattle area. Seattle has become a world class destination, and retail and shopping cores has grown progressively over the past time. These make the Seattle area an international airport. Seattle County’s labor force is highly skilled, productive, education, productive and stable. This becomes a target in customers.
In market definition: the world travel market is highly forecast to expand at high rate of 4.1% average annual growth rate. The market growth has high growth than the general economic growth rate, as a result the Europe market remain the most important destination. The reason we have selected Europe as the tour operators with appropriate products because the continent accounts over 50 percent of all international arrivals.
Market opportunity, in my believes, concentrating on the Europe travel market offers extensive range of vacation packages and targets the company’s services at affluent professionals. In our market study, the needs of the affluent professionals in the composed group are not currently met as result there is need to offer useful advice and ancillary service such as insurance. In my study in competitive advantage, the company’s market research has also shown that many adventure travel agents are catering to the traveller market, consisting mostly of persons that are very cost conscious. This can lead to very different types of clients ending up at the same destination, with some consequent dissatisfaction.
Discounts will also be offered to passengers who will be using the airport regularly as an appreciation for loyalty. This will go a long way in ensuring that the airport maintains its customers all the time.
Advertising and promotion
The airport will be popularized through the local media and the internet. The target population is the business community and the tourism sector. To attract high customer volumes, the airport management will adopt a medium that reaches a majority of its customers. Some media already identified include social sites, television, radio and online advertising.
Sales and marketing
Tickets will be administered online through the website of the airport and its licensed agents. Agents will form an important part of marketing since they will be explaining to the customers more about the services offered by the airport and the reasons as to why they should try the airport. Sale of tickets will be made an easy task that can be done at home by use of an internet enabled device.
Commission
The agents of the airport will receive the highest rates of commission in the industry. However, the rates will be determined by the amount of customer traffic that the agent is able to divert to the airport. Rates will be awarded on the basis of the number and the value of tickets that are sold.
Operations
Premises
The business will be located in Northampton in New Jersey. The premises of the airport will house all the departments of the business. Business functions will be centralized at the same venue except marketing that will be dynamic. The premises comprise of the airport and a state of the art administration block.
The location of the airport was selected base on the nee for an airport by residents and also to open up the area that has a great business potential. It is assumed that the airport will bring significant benefits to the people.
Hours of operation
The airport will be functional 24 hours a day 7 days a week. Flights will be schedule depending on demand and the number of customers plying a certain route. In addition, customers can book or call our customer support for more information.
Equipment
The equipment used at the airport is modern and up to date. At the airport, security will be major concern so that the clients are not endangered. Scanners are installed to ensure no dangerous goods pass through the airport. In addition, there will be loading and offloading services with refueling bays at the airport.
Staffing
New staff will be recruited and pass through a psychometric amplitude test to determine the suitability of the candidates. Experienced staff will also be hired to give the airport a competitive leadership from proven personalities. In addition, more training will be conducted to equip the staff with the latest skills in airport operations.
Financial projections
Sales forecast
The airport aims to sell landing rights and tickets and has the following projections;
Balance sheets
Assets
Liabilities
The construction of the airport will require a capital layout of $2billion. This will cater for the runway, administration block and the installation of security systems. The funds are supposed to be used through the time scope specified for the project.
Funding options
Funs for the construction of the airport will be obtained from commercial banks and also from private investors. The organizers and the directors will contribute to the capital of the company. Moreover, other funds will be obtained from government since this is a public utility.
Business controls
Quality controls
The performance of the airport will be evaluated on regular basis to ensure that quality is maintained. To ensure service delivery is up to set standards, all the members of the staff will be required to sign performance contracts so that they can take the blame in case of failure.
This will help motivate the workers to work harder towards attainment of the set goals.
Long term Goals
The long term goal of the airport is to be the leading airport in the region in terms of quality and w quantity. In five years time, it is projected that the airport will be having revenues amounting to $50billion
The airport management will set measures that will enhance the image of the airport thus increasing the activity. An increase in activity means there will be more revenues hence the long-term goals can be realized.
Risks an barriers to growth
The management of the airport will plan on the growth and how they will expand various parts of the airport. However, there will be limitation of funds and space for expansion.
References
Siegel, E. S., Ford, B. R., Bornstein, J., & Siegel, E. S. (1993).The Ernst & Young business plan guide. New York: Wiley.
Barrow, C., Barrow, P., & Brown, R. (2005).The business plan workbook. London: Kogan Page.
Finch, B. (2010).How to write a business plan. London: Kogan Page.
Ryan, J. D., &Hiduke, G. P. (2003). Small business: An entrepreneur's business plan. Mason, Ohio: South-Western/Thomson Learning.
Berry, T. (2008). The plan-as-you-go business plan. Irvine, CA: Entrepreneur Press.
