Business Plan on Geared Up - Free Essay Example

Business Plan Contents Goals Short term goals: Long term goals: Strategies Business description and outlook Management and Ownership Operational plan 6a- roles of staff employed in the organisation Inventory of equipment Floor Layout Marketing plans Products Promotion Internal promotion External promotion Place . Goals Goals are desired outcomes that the business wishes to achieve. Goals are important to a business as it acts as a target to reach for individuals and the company as a whole, acts as a bench mark to which a company can measure their performance, works as a form of motivation and to show a sense of commitment. Goals can be categorised as long term or short term and within these are goals that are financially based or non financial. Listed below are the goals of Geared Up organised into long or short term. Short term goals: Create and improve on company website (within the first month) Have a social media page that will be actively posting updates on new products and specials (within the first 3 months) Attempt to match main competitor price, JW computers, (within 9 months) Have advertisements near traffic lights and on public transportation i.e. bus stops, in trains and on busses ( 6 months) Offer home assistance for easy to fix computer problems (first 2 months) Have business cards and hand out pamphlets (within first 4-6 months) Offer home delivery Long term goals: Create own line of computers and peripheral devices- 3-5 years Buy a warehouse to store products in a suburban area that is relatively close to minimise transportation costs but still is effective for storage uses.- 2-4 years Increase gross profit by 10-15% in the first 2 years then, Increase revenue by 20-45 % for 2-4 years after the initial 10% increase Sponsoring and Supply the equipment for professional gaming scene targeting market favourite game League of Legends- within 3-4 years Become a franchise. Strategies Short-term goals Long-term goals Acquire assistance from a professional web designer in order to get a user-friendly website that also provides customers with information on products Maintaining the page so it does not become dead content and make it as appealing as possible Determine whether it is a feasible option to match the prices and distinguish if we will make up for losses in the future Have a marketing consultant assist in developing the most effective high quality and appealing advertisements Have a professional card designer assist us in creating a simplistic yet effectual business card and pamphlets Creating business cards as well as handing out pamphlets to raise awareness of the services we offer while also providing a contact number. Maintaining a positive cash flow as well as consulting people that play a range of computer games in order to see what they look for when looking to purchase a computer or peripherals Discuss with a real estate agent where would be the most ideal location so it is beneficial for convenience, price and size. After achieving a more stable condition discounts, coupons and sales will be utilised to à ¢Ã¢â€š ¬Ã…“lureà ¢Ã¢â€š ¬Ã‚  customers in the shop ultimately, increasing income. Having a meeting with a teamà ¢Ã¢â€š ¬Ã¢â€ž ¢s captain and manager in order to negotiate sponsoring and supplying them with products and in exchange they promote the company and wear our symbol The business will hire a business consultant and discuss the most optimal locations to open up another franchise. Interviewing will be held as well as trailing in the current store to look for branch managers Business description and outlook à ¢Ã¢â€š ¬Ã…“Geared Upà ¢Ã¢â€š ¬Ã‚  is an electronic store that it part of the tertiary industry that is focused primarily on selling computers and computing accessories such as keyboards, mouses and headsets and supplying these products for a range of various uses such as at home/office based work, gaming or an all rounded computer. We also provide computing assistance, repairs and maintenance. The greatest competitor in the area will be JW computers who are although new in the area have already developed a strong customer base due to their reliability and great value. Despite the fact that JW computers is not too close to the store they prove to be a threat as both them and us provide the same services. However, Geared Up aims to develop strong goodwill and a solid customer base and in effect more potently strive in this market. There are many reasons why this business is being opened: Seeing growth in the computing and gaming field opening up new opportunities for entrepreneurs. Refer to appendix one With the belief that this business can provide better service and products then competitors such as JW computers and JB HI FI Our passion for computers, gaming and developing great accessories to optimise the gaming experience for all gamers and computer users. The demand for computer assistance and repairs in the area. Management and Ownership Geared Up is a Small sized business that is registered as a sole trader business owner Justin Saliba will hire store managers after a large amount of interviewing and finding the right applicants in order to maintain functioning of the store when the store manager is not available. Being a sole trader has many advantages and along with these many disadvantages. One major concern is the fact that sole traders have unlimited liability meaning that If the business is unable to meet any financial obligations or settle any outstanding liabilities, the owners personal assets can be seized to satisfy the debts. However the potential benefits can possibly outweigh the negative aspects these include: see appendix two for a pros and cons table Efficiency setting your own deadlines Control maintaining full control of the business and running it without interference of other people. Profit allowing you to retain the full amount of profit made and doing what you want with it. Decision making make decision to your liking and carry them out the way you find most viable. Self reliance relies on your own power and resources rather than being dependant on someone elseà ¢Ã¢â€š ¬Ã¢â€ž ¢s. ( this does require you to stay self motivated) Financial independence Job security with the fact that you are your own boss. 5b- Details of management structure and division of labour. Geared up will take up a flat organisational structure, that is, a structure that minimises the levels of management between owner and employees. This is ideal for a small company that is just starting off as it removes salaries of middle management and unneeded layers of management allowing for more efficient communication and coordination. This structure also prompts the employees to be more productive as they are involved in decision making and determining the success of the business Operational plan 6a- roles of staff employed in the organisation Store owner- the role of the store owner includes: Managing all daily operations of the business Train and higher the appropriate staff needed to help excel the business Be present and at the store as often as possible through the week Set a good example by being an active leader and promoting productivity Managing all financial aspects of the business such as: taxes and stock ordering. Manage advertisements and promotional ways to get the business name to the public Store manager- The store managersà ¢Ã¢â€š ¬Ã¢â€ž ¢ role is to: Provide supervision in the store when the owner is not available Assist all customers that confront him as well as attending to all un aided customers Ensure the store remains in its most prestige condition throughout the day Attend to phone calls when available and not attended Be present at least 35-38 hours per week Attend to duties of owner if asked to or if the owner is not present Set an example for all employees and represent the company professionally Assist in reperation of computers that need fixing Full time employee (/ at home service): Stock shelves Serve and attended to customersà ¢Ã¢â€š ¬Ã¢â€ž ¢ needs In charge of reparation of computers that need fixing Clean and tune the store to make it presentable Work 38 hours a week or as required Provide at home assistance for easy to solve computer problems when needed Part time employee: Part time employees will be obliged to do the same tasks and are entitled to the same benefits as full time employees but on a Pro-rata basis Works an average of less than 38 hours a week but more than 23 Inventory of equipment Cash register and receipt printer Credit card and paypass machine Check out counter Display monitors (x3) Telephones (x2) Display cabinet (x2) Barcode scanner Tool kit(x2) Repair table Shelving (2x wall and 2x isle shelves) Floor Layout Marketing plans A marketing plan is used to elucidate the primary marketing elements of a business and setting a foundation while also providing direction on the objectives, goals and activities for the business to collectively work towards. Products Geared up provides a range of products and services. The products supplied by Geared up include: Premade computers, laptops, computer components, peripheral devices, USBà ¢Ã¢â€š ¬Ã¢â€ž ¢s and monitors. Services that are provided are: In shop computer repairs and at home computer repairs. Product Price Premade computers Home and office computers $700-$1,399 Gaming computers $999- $2,999 All rounded computers $850-$1,499 Laptops Acer $649-$908 Asus $699-$1,874 Toshiba $469-$1,129 Samsung $599-$1,088 Computer components CPU/ Processors- AMD $79-$245 CPU/ Processors- Intel $89.95-$450 DDR3 Ram $35-$269 Graphics card- Gigabyte $75-$549 Product Price Graphics card- Asus $45-$999 Peripheral devices (computing accessories) Keyboards $39-$179 Mouse $9.99-$125 Speakers $49-$239 USBà ¢Ã¢â€š ¬Ã¢â€ž ¢s $8.00-$34.99 External hard drive $69.00-$229 Monitors- Acer $99-$299 Monitor- Samsung $120-$389 Computer cases Corsair Tower $79-$184.99 Gigabyte tower $80-$189.99 Corsair cases $89-$199.95 Services provided In store repairs $25+ cost of added components At home assistance 35+ cost of needed material Software Microsoft office home edition-2013 $249.95 Norton antivirus-2014 $59.99 Adobe Photoshop $99.99 Promotion Promotion is fundamental for a newly established business as it provides a way to allow the business to reach out to potential customers through the use media, techniques and strategies to attain peopleà ¢Ã¢â€š ¬Ã¢â€ž ¢s attention. Promotion can be widely divided into two categories: Internal External Internal promotion Internal promotion is useful for establishing a customer base by allowing them to gain something for the more they spend in store. Geared up will be implementing a rewards card system named à ¢Ã¢â€š ¬Ã…“Geared UP Rewardsà ¢Ã¢â€š ¬Ã‚ . This reward system will allow customers to gain points that represent in-store credit as well as receiving discounts on selective items. Another form of internal promotion that will be used is the placing of posters in and around the store raising awareness for specials and deals. This will be used to à ¢Ã¢â€š ¬Ã‹Å"lureà ¢Ã¢â€š ¬Ã¢â€ž ¢ customers into the store and forcing them to walk past many objects to reach the item advertised as on sale. External promotion External promotion is practical for raising awareness of a store for people that do not regularly come to the store location. Geared Up will utilise many types of external promotion during the establishment phase of the business. This includes Newspaper advertisements (see appendix 3), handing out flyers (see appendix 4) and business cards (see appendix 5). Place Where will you locate your enterprise and why? Geared Up will be located in Little Saigon Plaza (462 Chapel Road, Bankstown NSW 2200). Primary reasons for this location include: Due to a recent survey conducted people in the area want more variety/choice of this particular product and service Bankstown not being as technologically advanced means that people have a higher tendency to be unaware of any technological defect or product, Geared up will provide 100% assistance. Increase of population in the area Little competition ( none within walking distance) Easily accessible with transportation services How will your goods or services be delivered to customers? All goods will be available in store, however, in the near future home delivery will be implemented to supply goods for customers with the addition of a call out fee. What is your proximity to suppliers? There is no computer manufacturing outlet in the area and for this reason products must be delivered to the shop in exchange of a transportation fee. Stock in high demand will be bought in bulk in attempt to minimise avoidable costs. SWOT Analysis. Strengths (internal, positive factors) Strengths describe the positive attributes, tangible and intangible, of your organization. These are generally within your control. High demand, little supply Increase of population in area Skilled and motivated workforce Provide high quality products High level of communication Have a cohesive business plan Weaknesses (internal, negative factors) Weaknesses are aspects of your business that detract from the value you offer or place you at a competitive disadvantage. No established reputation Must invest in advertisement Not many employees with correct expertise Very fast paced type of business No close supplier increasing costs for transportation Opportunities (external, positive factors) Opportunities are external attractive factors that represent reasons for your business to exist and prosper. Expand business- franchise Expanding market To gain a loyal company base Trends in market suggest success Threats (external, negative factors) Threats are external factors beyond your control that could put your business at risk. Competition from an established business- JW computers, Dick Smith High cost of transportation could lead to loss A possible downturn in economy meaning people spend less Ever-changing technology means we must constantly upgrade stock Finance plan Budgeted revenue statement Geared UP Statement of financial performance- for the year ended 30 august 2015 $ $ Sales revenue 400,000 Sales Less Costs of Goods Sold Opening Stock Purchases Closing stock 87,700 38,500 126,200 47,200 79,000 Gross profit 321,000 Expenses Total expenses Advertising and marketing Legal fees Wages Insurance Telephone cost Rent On-going stock purchases Computer Motor vehicle purchase Motor vehicle running cost 1,000 500 100,000 1,500 3,900 43,200 32,000 3,000 16,000 3,120 321,000 Net Profit 0 Budgeted balance sheet Geared UP Balance sheet for year ending 30th august 2015 Current assets $ Current Liabilities $ Stock Accounts Receivable Prepaied Expenses 87,500 521,500 17,000 Accounts Payable Overdraft Wages 80,000 32,500 65,000 Total Current Assets 626,200 Total current liabilities 177,500 Non Current Assets Noncurrent liabilities Land Vehicles Furniture 10,000 16,000 6,500 Mortgage Owners equity Capital Retained profits 300,000 145,000 36,000 Total Non-current assets 28,500 Total Noncurrent liabilities 481,000 Total assets 658,500 Total liabilities 658,500