BUSINESS PLAN -TIMELINES
- Abstract
This document is a business plan covering time lines of major activities that Dalnin intends to achieve over a short and long term basis. The document further brings out the interrelationship among the targeted activities, assumptions made during the planning, potentials risks that the firm is likely to experience and finally, the befits the society will be enjoying from Dalnim.
- Background
Dalnim is a sole proprietorship firm located at down town Manchester City. The firm is in the business of selling suits for business ladies that are of high quality and at affordable prices. The firm intends to continue growing and sustain its profits each passing year while ensuring that its customers are satisfied through various goals as early indicated in its business plan.
- Timelines for major events
Implementation of the above seven major events will largely depend on availability of funds. Once the firm obtains the required funds, each event will be implemented within the timelines given above. However, should there be a compelling reason not to implement a given activity, the firm will adjust the target timelines accordingly. While other activities will take place once, others like getting an ISO certification will run for a given period of time. the most important factor is to have a reporting system on follow-ups to ensure progressive implementation of the events above.
- Planning Assumptions
The business plan has been developed based on three broad categories of assumptions as described below:
- General business environment assumptions.
Dalnin like other business firms does not operate in a vacuum. This means therefore that any changes in its external environment will largely affect its operations to a great extent. The plan was therefore crafted with an the assumption that the demographic factors will remain stable over a long period of time since they affect the target market consisting of middle income earners ladies in formal employment. Further, it is assumed that the economic factors will equally remain stable so as not to affect the interest rates and disposable incomes of the customers. Given that the firm intends to borrow much of its capital, it is important that the interest rates remain at a lower rate.
- Assumptions specific to the firm.
Dalnim as a business firm has its own internal systems that again will determine achievement of the set goal. The plan was therefore made with the assumption that the projected revenue, cash flows and profits will be attained. It is equally assumed that the current staff will remain committed to the set goals and that there will be no staff turnover leading to loss of its resourceful employees.
- Alternate Assumptions
These category of assumptions upon which the business plan was based entails shifting of gears so as to respond to the events outside the control of the firm. For instance, it is assumed that should the demand decline due to adverse economic effects, Dalnim will reduce its production levels to avoid any losses due to overproduction. The firm will also aim at repaying its long term loans within a short time to avoid high interest rates.
- Potential Risks and How they’ll be overcome
The following are the five major potential risks that the firm may face.
- Competitors
These are other firms in the same market that sell similar suits as Dalnin or close substitutes. To this completion as a risk, Dalnin will overcome it by maintaining its competitive advantages in selling tailor made suits, operating five days a week, retaining its employees through salary increments, and ensuring affordable prices of its high quality suits.
- Change in fashion
Change in fashion may lead to losses due to stock that is likely to become obsolete. To overcome this risk, Dalnim will maintain its production to meet demand approach where suits are made, enough to meet the actual demand. The firm will also invest in research so as to be aware at all items changes in fashion so as to adjust accordingly.
- Staff turn over
Staff turnover is a potential risk especially if these employees are recruited by its competitors. To avoid staff turnover, the firm will continue with its salary increments and above all, implementing other various staff motivation techniques.
- Inflation
Inflation is likely to increase the interest rates while at the same time, reduce the sales volume. The firm will ensure that it has enough savings at its disposal for use during emergencies so as to avoid expensive borrowing when interest rates are high.
- Poor Quality
Any slight cases of poor quality are likely to lead to an automatic loss of customers and a negative impact to the firm’s good will. The firm will therefore ensure a close supervision and monitoring of its operations to ensure that no defective suit gets into the market.
- Benefits to Community
Establishment and continued operation of Dalnim will obviously benefit the community through:
- Provision of employment opportunities
- Satisfaction of need for tailor made ladies business suits to professional ladies
- Training opportunities to students during industrial attachments and when undertaking research related to the industry.
- Corporate social responsibilities by giving charity to children’s Homes, investing in environmental friendly operations among others.
References
Bose, C. D. (2002). Principles of Management and Adminstration. New Delhi.
Kotler, P. (1984). Principles of Marketing. New York: Prentice Hall
Mc Carthy, J. & Pervaleut, W. (1994). Applications in Basic Marketing: Clipping from the Popular Business Place. Massachusetts: Irwin Inc
Owler, L.W.J & J.L.Brown (1985). Wheldon’s Cost Accounting.London: Pitman Publishing
Ltd
