Target market
The business will target business people, theatre people, teachers and musicians. The business shall confine itself to those non-corporate or non-institutional customers and those who desire same quality as offered by the business but do not have time to be put on the waiting list as other business do.
Expected sales
For the first three consecutive years, the business expects to make sales totaling to $103,500, $267,000 and $299,000.
Profit expectations
The business expects to make a net loss of $14,500 during the first year of operation. This is due to the high cost of fixed production expenses incurred during the start of the business. Besides, the business shall have not occupied a better market share. However, for the following two consecutive years, the business expects to make profits of $8860 and $9440 because it shall have gained a brand and image in the market.
Market penetration and coverage
We will be able to get our market share increased as our business will be growing and expanding. Aggressive promotion will enable the business expand its market share. In the initial stages of our operations we are targeting to have 40% of the market share which is projected to increase to 80% in the 3rd year of operation.
Product adaptation or modification
Core component
The business will offer both tangible and intangible products. To a greater extent it will be dealing with intangible products (services) and to a smaller extent tangible products (selling of computer hardware and software).
Packaging component
The business will majorly offer computer consultancy services because of high demand and advancements in technology.
Promotion mix
Advertising
Advertising will be undertaken to enable business image and brand go public.
Media mix
The business will use both electronic and print media. Newspapers, business journals, television advert, radio and the internet will be used to run adverts concurrently. Posters and billboards and trade fare and exhibition will be part of media mix.
Message
Message will focus on affordability and quality of the product offered.
Cost
The costs of advertisements will be $1200 for the first year and $1000 and $800 respectively for second and third years.
Sales promotion
Use of price deal, loyal reward programs, coupons, discounted prices and checkout dispensers.
Personal selling
This will help in prospecting, communicating, selling and servicing the business product.
Other promotional methods
Link exchange with non-competing businesses, point of sale displays, better public relations and direct sales.
Distribution: From origin to destination
Port selection of each mode
This will depend on the commodity model and type.
Packing
Packing will not be required as the business will be offering a service and not a tangible product.
Documentation required
Software distribution agreement forms, confidentiality form, distribution and license agreement and dealership agreement.
Insurance claims
Health insurance claim and third party insurance policy will be filed.
Freight forwarder
Russia Company will be the freight forwarder for the importation of our computer software and hardware.
Channels of distribution (micro analysis)
Since the business is a consultancy firm, it will choose to use the following channel of distribution.
Manufacturer Consumers
It is chosen because the business will mostly be offering services thus we considered it good to interact with the customers directly.
Price determination
The price charged will depend on cost of software shipment, transportation costs and any handling costs incurred in the process of service delivery.
Terms of sale
Terms of sale will be strictly on cash basis. The business will also use FOB Destination, Freight Collect & Allow terms of sale for international customers.
II. Pro forma financial statements and budgets
Selling expenses
The selling expenses will be $2000 for the first year and $1800 and $2300 for the following two consecutive years.
Selling expenses, 20111
References
“Writing a Business Plan – Do I Need to Write a Business Plan?” Retrieved at http://sbinfocanada.about.com/od/startup/f/needbizplan.htm
Business Plan Resources. Retrieved at http://sbinfocanada.about.com/cs/businessplans/index.htm
Business Plan. Retrieved at http://sbinfocanada.about.com/library/glossary/bldef-bizplan.htm
