One early morning, I was jogging in our neighborhood with my friend and passed by a row of apartments. Then my friend said, “I wish one of those apartments were mine.” After what I heard, I started to dream and thought of how to be able to invest in one of those apartments just like my friend. When we got home, I told my mother about our plan after college. She just stared and said,“that is good to know that you have a very good ambition that will make you financially stable after years in college.”Then she turned back to us and asked sternly, “do you have sufficient knowledge of how to do it?” This was our turning point.
I deduced that for one to be able to own his own apartment, one needs to have a business of his own, be the boss and entrepreneur . So, we started to research and prepare. I came up with one of the best sellers, the author of Poor Dad Rich Dad, Robert T. Kiyosaki. He mentioned that going to college and earn a degree does not mean one has sufficient financial knowledge. Listening to Kiyosaki made it clear that one cannot just venture into business without proper preparation. Financial knowledge is a very important tool when one would start a business. My friend then asked me to prepare a business plan for him. So, I started to write the business plan starting with the objectives.
The long term goal was to be able to save $200,000.00 within three (3) years. This was the reason for putting up the business. Secondly, to be able to tap the market starting from the college campus up to other clients who will need our products. Thirdly, to spend the first year of operation in expanding the market by the use of the internet. Finally, to be able to increase the number of the sales team to twenty.
The type of organization will be sole proprietorship. Capitalization is set up to $1,000.00 for the first three months. The source of capital will be the inheritance my friend received from his parents. The product to be marketed will be one of the famous food supplements manufactured in the United States. Since the Wellness Industry has been a major player in business, we decided that our product is in demand. Within the campus we tried to interview students and faculty members from different departments. Within two months, we interviewed a total of five hundred (500) respondents. Eighty percent of them were willing to purchase the product after knowing that the food supplement was manufactured by the leading manufacturer in the industry. Many students have been using the product and testified of its efficacy. Thus, the results of the interview made it possible for the preparation of the business plan. This business plan will serve as a blueprint and “will provide a roadmap for where the business is going (Birt 3).
The inventory cost of the product will be at seventy percent to the selling price. In order to earn a bigger discount, the inventory will be purchased on cash since there is sufficient capital. The $1,000.00 will be used to purchase the supplies and that would automatically earn thirty percent or $300.00. Since the business is still on its infancy stage, the owner does not expect to be earning high. He will add capital on the fourth month for another $1,000.00 for the next quarter and will invest a total of $4,000.00 by the end of the fourth quarter.
This business will have its own advisor. My friend was recruited by a relative who is one of the top sellers and manager. He will be the best advisor and trainer to my friend since he has been doing the business successfully for the past seven years. There will be a series of business seminars and training held weekly along with the analysis of sales on a weekly basis. My friend and I agreed that he will be documenting any changes in the business, that is, changes in the business trends, changes and comments from customer as well as sales figures. Monthly sales figures will be on a chart to see the trending. This is the commitment of the company to
continuously develop and improve the business marketing. Included in this plan is to train new members in the team so that they will be productive and be self reliant after three months. The company further aims to have a total member in sales team of twenty active sellers.
The business is in its early stage. The office will be the extra room beside the garage in my friend’s house. It is further planned that this company will pay for its electricity, cost of air condition unit, tables and furniture, office supplies, one set of computer desk top, telephone and fax machine. My friend budgeted a total of $5,000.00 for this business but will be released gradually as the business progresses. One of the core values is to practice lean and mean. The members in the business, including me, will try as much as we can to save. Being frugal is like turning the lights off, also turn off the air condition when not needed. This business will start with three people. My friend, the owner, one secretary to take the calls and me as the silent partner. The original members in this company will be composed of three people. My friend, the owner, a secretary and myself. It is agreed that the silent partner will be earning twenty five percent of the net annual income.
Launching of this business will be in January of 2015. Flyers will be sent to friends and prospective buyers and it will be posted in the website. All other changes will be projected in our business plan as the need arises and as our advisor recommends it so.
Based on what this plan, we arrived at a conclusion that the picture of the business will be clearer when one prepared the project study or the business proposal seriously considering all elements that will affect the business such as buyers, supply, pricing, where to buy the products and the distribution of the products. All purchases are considered on a cash basis since customers need to pay first before the product is obtained or sent to them. The product will be shipped freely once the total purchases made will not be below $150.00. Making an outline of this report makes the investor see other aspects in business that needs attention but is not easily seen not unless the business plan is done properly. With this business plan, the investor and members of the team are all confident that this business is going to be feasible.
Works Cited
Crego, Jr., Edwin T., Peter D. Schiffrin, and James C. Kauss. How to Write a Business Plan. 4th ed. New York: American Management Association, 1995. Questia. Web. 17 Dec. 2014.
Levinson, Nan. How to Sharpen Your Business Writing Skills. Watertown, MA: American Management Association, 2000. Questia. Web. 17 Dec. 2014.
---. How to Sharpen Your Business Writing Skills. Watertown, MA: American Management Association, 2000. Questia. Web. 17 Dec. 2014.
Sant, Tom. Persuasive Business Proposals: Writing to Win More Customers, Clients, and Contracts. New York: AMACOM, 2004.Questia. Web. 17 Dec. 2014.
Schawbel, D. Forbes Magazine. How To Start A Business with Only $100 in the Bank. Forbes Press Room.Reprint.2014 May 31, 2012 issue. http://www.forbes.com/sites/danschawbel/2012/05/31/how-to-start-a-business-with-only-100-in-the-bank/
