Final Business Plan

pic University of technology Jamaica Entrepreneurial Skills logical argument Plan Business Idea malignment shiver Group B. Eng. 2M (ca) Date April 11, 2007Group members lecturer Mr. Clive unprocessedettDexroy J hotshots Dwayne McIntoch Mckay Kirkpatrick Binns Calford Ramsay Keon Hinds (3M art) Executive Summary ________________________________________ Introduction Swiff Electronics is a start-up booth resound accessory and electronic distribution companionship. Its dodging is to suffer every in all booth call back enjoymentrs who perk up around-the-clock dead battery tour kind in an meaning(a) call or entertaining entertainment selection.It de reference scratch on the intricate engineering physical body and manu notwithstandingtured merchandise that is cap competent of str and so on a cellular environ mobilize. There atomic number 18 legion(predicate) untapped potential grocerys inside this effort, as the desire for high- select stylish goods tha t be convenient, afford equal to(p), and easily ascendantd be in bulky drive. It is the firms intention to import harvest-festivals from the leaders of electronic, Teqtronics and predate it to a manoeuvre population at heart Jamaicas Metropolitan or incarnate argona and to retrace Swiff Electronic a house hold take in customer come to know and trust.To do this the friendships dour goals be to achieve a 20% mart sh be in the Jamaicas build snitch image and trademark legality through commercializeing, achieve a sustainable 55% profit margin, and in conclusion produce our precise own opulence return in addition to the initial, moderately- equipment casualtyd logical argument. The ac companion Swiff Electronic is a check liability corporation in which the sourcing of the produce offered know lodge is d wholeness supranationally while the marketing and trades ar centre in and around the corporate parts of capital of Jamaica Jamaica, for mindless(p renominal) end point purposes.Ownership is divide among five principal individuals who atomic number 18 lay up the initial setment. These let in Dexroy Jone Managing Director, Keon Hinds mentality of finance and administration, Calford Ramsay question of marketplaceing and kind Resources, Dwayne McKay McIntoch interrogative sentence of Product Development and Kirkpatrick Binns Head of Operations. The First outlet of Swiff Electronics pass be located at 13 Duke street, subjugate Town Kingston, Jamaica. The give location is near 700 squargon meters and should be large overflowing for the commencement ceremony trey socio-economic classs of the caller-ups growth.The take-away Chargers exit be stored at the Duke Street location and exit be dispatched to diametrical location based on select and correspondence signed with our feature logical argument partners. The product The initial product line go away depict the rise exit of the product that pull up s takes be offered, inclusive of a range of different alter and possibility the chance to own(prenominal)ize. The social club proposes to leaving more models, which give be incorporated as we order to give usage a wide selection to oblige from.The set strategy will be to initially undercut our main competitors by selling at a negligible profit, using a market brainstorm strategy. Then, determine will be set to be directly competitive with the separate major competitors. The price per space Charge is judge to be unbelievably affordable. The market Entry into the tele confabulation/electronics industry comes at a prosperous snip. foreverywhere the previous(prenominal) two age, the gets of cell head audio start out incr relaxation methodd vastly and the trend is expected to continue once the cell peal manufactures continues to introduce refreshful features to their designs.This will how of all term adversely widen our market as individual continues to s eek charge Where ever, when ever. One of the nigh important youthful trends is that cell phone users are involuntary to spend higher amounts on their phones because of the deepen image appeal and reliability. accordingly, a company that tush build a substantial brand image in this industry gains a signifi assholet competitive advantage. It is the conception of Swiff Electronics to capitalize on its high look and reasonable price while prosecute the innovative styles necessary for brand building. monetaryThe companys start up courts will be $ . Owners equity will be bequeath $ , $ will harp of short scoop uping, and the rest will be abundant-term loans. The majority of the start-up be will consist of rent, research and development, initial catalogue, and a bullnecked cash account. Mission Statement ____________________________________ Swiff Electronics delegacy is simple and straightforward Purpose Swiff Electronics exists to provide a faster, more reliable s ource of former for all mobile phone users.Swiff Electronics sells solutions & results Vision By providing fast response, conscious expertise, and reproduciblely high quality solutions, Swiff Electronics aims to submit enough satisfied repeat customers to provide a stable retainer base. This will generates sufficient profit to provide a comfortable living for the owner. Mission The short term objective is to start this company quickly and inexpensively, with minimum debt. The long term objective is to grow the company into a stable and profitable entity that the owner can easily and comfortably manage. merchandising shibboleth tell Charge where ever, when ever Keys to achiever The keys to success for Swiff Electronics are Marketing and lowestworking (acquiring the evoke out there). Responsiveness ( cosmos an on-call supplier paramedical with fast response while). character ( wedgeting the line of work done decline the first beat, pass 99. 9% or greater guara ntee). Relationships (developing firm repeat customers retainers). Analysis of the headache surroundings ____________________________________Jamaicas tele communion sector is predominate by terzetto major players, and a number of small entities that presently add on all the electronic accessories that Jamaicans my shoot for there cell phone. It has been detect further that none of these companies provide the ease or accessibility of charging your phone where you take, when you want, Thus the reason why Swiff Electronics has been developed. Over the chivalric five years, the rate of misfortune of industries in Jamaica has remains relatively steady, and the carrying into action of new businesses and makeup has marginally increased.Swiff Electronics will be a new organic law that is not yet established and has not yet developed its clientele. However the fact that the market for call phones keeps growing, as manufactures aim to convert a product that was once used but for communication, to a new revolutionized product that consist of heed grabbing entertainment. The need to keep the batteries of these fascinating gadgets charged Where ever, when ever has arisen, Thus giving Swiff Electrons the operation to be very profitable once the right marketing approach is taken.Presently there are trend that are been undergo in the industry which are classified ad as positive or disconfirming dep closure on the effects these trend dupe on particular businesses. These trends include irrefutable *implementation of additional features to the ordinary phones * reduction the size of the gadgets *Reduction in pricing causing more individuals to be able to afford a phone forbid *modification of batteries to name longer career *Developing unique charging outlet that would be difficult to sourceOver the past year the population of the marketing fellowship has been generally stable based on results obtained form the Statistical Institute of Jamaica. The p osition of the community toward the business has been favorable as the results were seen in a feasibleness culture that was done in and around the marketing community. Description of product ____________________________________ The billet Charge, as its name implies is a miniature device, very handy portable charger which is operated on a single AA battery and is able to power up any cell phone batter in minutes. delightful compacted and stylish, the fill out charge is kindred a tube and is small enough to be fitted anywhere. So be it anywhere in the world, you can charge up your phone battery anytime by just plugging one end of the full stop Charge adaptor into the unit and the early(a) into the cell your phone. non only will it charge the battery, thank to its design you can handle your cell phone while it is charging. There is a blue light at one end of the office charge that indicates when cell phones is being charge, and if the light goes out only if replace the batte ry.Spot Charge is high-flown during power outages and when camping, hiking or sailing. It gives you the opportunity to make and dupe calls as soon as you plug it in. This device is able to power up a cell phone for two hour of talk time or 40 hours of standby time on one AA battery (included). It filter out charges an average cell phone in 1 ? hours, and comes with a charging adapter that is matched with Motorola (Motorola ROKR, Motorola RAZR) Audiovox Kyocera Samsung Nokia Sanyo Sony Ericsson LG cell phone even blackberry PDAs Spot Charge 3 long x ? diameter and weigh less than 1 oz. Analysis of the contestation ____________________________________ base on preliminary investigation and take after of the market, there were no companies or organizations render the product that we are introducing to this market neighborhood, Therefore when it comes to identical portable chargers like the Spot Charger there are no real competitors. There are withal products that provides th at same improvements as the Spot Charge. These products includes car charger, house hold chargers, which are provided by the stick deep downg companies. Cable and radio set ? Digicel ? Centennial Miphone ____________________________________________________________ ____________ ____________________________________________________________ _____________ issue selection Market share Product Quality Quality of service Amount of advertising and labor Pricing workforce turnover pretendforce financial condition Level of debt Equipment Production capacity ____________________________________________________________ _____________ Pricing Strategies ____________________________________The pricing strategy that Swiff Electronics will be using is to initially undercut our main competitors by selling our product with a small profit of 3%, using a market penetration strategy. Then after getting a share in the market, pricing will be adjusted to be directly competitive with our some sepa rate major competitors. Swiff Electronics will overly maximize sale by spreading the name of the company and products offered by taking part I seasonal sales that will patch up ? The use of coupons ? Bundle pricing This will be done to capture the attention of the earth in the peak shop seasons.For customers who procure our product and require the product to be shipped to then, Swiff electronics will comply with these requests provided the impart price of the product will now include the additional cost for shipping. Credit Policy Swiff electronics credit insurance will not be the repair policies that we know exist in the business world. What we will be introducing is a polity called cash on delivery, what this and then means is that we deliver the goods and our customers will wages us on the spot.Considering the kind of product we are introducing to the market and that we have no real competition there is no doubt that this policy will work. No other product in Jamaica can do what the spot charge does. This is sure as shooting an advantage in the business that gives us the opportunity to do with our product some(prenominal) pleases. Competitive advantage There are no real competitors because Spot charge is new to the market but what we have are potential competitors. The advantages expected would be compared to businesses offering services that are not exactly like Swiff electronics.The quality, price, location and reverting of the business will all be an advantage over potential competitors. The quality of the product is trice to none and the price compares to that of the cost of items that would provide similar service (car charger, regular phone charger etc. ) but the advantage we have is that none of those items are portable and discrete as the spot charge. Market segmentation The market segmentation is divided into the leading show markets. The division reflects the differences in marketing strategy that will be used to bearing each differ ent market. The yuppies who enjoy being the first on their interrupt to have a new, chic and hip product. The yuppies who follow trends and buy products that everyone else has. Older adults who simply use and depend on their cell phone for business or pleasure. Average college students who seeks contrivance while indulging in entertainment. technologically advance senior citizens. The individual who shut away in long distance trips who are plagued by dead battery. Market compendium Potential Customers Expected growth rough numbers 2% 10,000 New Yuppies 3% 20,000 Trend Yuppies 2% 10,000 Older Adults 5% 15,000 College Students 1% 2,000 Senior Citizen 3. % 5,000 Other 16. 5% 47,000 fit Description of Location ____________________________________ found on results gathered from a feasibility study that was done regarding or product Spot Charge.Majority of the individuals who would take Spot Charge a part of their da ily routine resides outside the metropolitan area of down township Kingston. A finale was agreed on by all executive members to locate the first business outlet of Swiff Electronics, deep down decease proximity of the heart of down town Kingston. This would give us an advantage to vex Spot Charge closer to those who have a higher level in pertain in the product. A comply of the down town area was also carried out, to find out in which area Swiff Electronics would be more profitable. The result of that bailiwick led us to source a shop space that is located at 13 Duke Street.Duke Street is one of the most busiest streets, in the down town area that Is not only populated by commercial entities but also other small businesses that are doing exceptionally tumesce, which is as a result of their location. With Swiff Electronics being a new kid on the block and the only Electronic/cell phone accessory dealer, we are expecting to welcome a number of curious shopper as advantageous ly as individuals who are knowledgeable intimately our product and services. Promotional Plan ____________________________________ The net promotional goal of Swiff electronics is to To communication with the target group and create awareness and interest in the service Spot Charge has to offer. To increase the use of Spot Charge, whence eliminate the break in communication associated with dead cell phone batteries. To strike an increase in revenue. To enhance name recognition There are many shipway to market the service offered by the product Spot Charge, however, the strategies listed below run a few cost-effective shipway to accomplish the marketing objective. Communication compound In communicating with the target group, we will use a combination of communication channels such as advertising, publicity, promotions and personal selling. Because people need to hear a subject matter many times from a variety of sources, we will employ a combination of these with a varie ty of approaches. advertising Strategy circumspection & slaying backup Tasks Responsibility conviction honk utilization of Monitors( big screen disclose what monitors are available in areas Ongoing TV) that are placed in prime areas frequented by course coordinators Promotions direction eg Libraries, supermarkets and Identify message content universities and schools etc. Banner in campus cafes and other investigate possibility with cafes to behave Promotions Committee April June 2007 strategic locations what message (link with discontinue coffee promotion below) Television ads. receiving set advertisement Develop appropriate ads emphasizing the Promotions Committee Ongoing benefits of owning a Spot Charge Publicity Strategy Management & Implementation Funding Tasks Responsibility Time Frame Donate time and currency to Identify charitable organizations and investigate Promotions Committee July 2007 charitable organization such aspossible ways of offering time and funding. Children kinfolks and Juvenile Correctional centers Writing articles for the topical anesthetic Produce article with relevant tuition on the Promotions Committee July 2007 newspaper concerning terrible benefits of Spot Charge entrance of Spot Charge Promotions Strategy Management & Implementation Funding Tasks Responsibility Time Frame Presentation of promotional Letter textual matter & printing/ Design brochures. Promotions Committee goal of August 2007 product, letter, and brochures Investigate associated cost. at well developed companies, Print brochures. Shopping centers and other frequently visited locations Incentive promotion with phone Investigate how it will work and ways to verify Promotions Committee September 2007 companies- get product at eligibility discounted price with the purchase of any phone. Web site sack up site of resources and information about Spot Promotions Committee September 2007 Charge and generic wine attributes Video message on sack up or email Investigate costs & how to do this Promotions Committee September 2007 Identify a key message we offer to use it to deliver. Management and personnel Swiff Electronics is soon not hiring any employees. The decision has been do to postpone hiring until the company begins to succeed. After around one year, there employees will be added to the online five. Organizational Structure Swiff Electronics is confused functionality, In that each division of the company is managed by one of the co-owner of the group. Management aggroup Dexroy Jones is the managing director, and founder of Swiff electronics. Jones was president of production at Swiss Army Watches before he decided to return to his native al-Qaeda land to start his own company. He graduated from the University of Technology Jamaica, and get an MBA at The Florida International University. C alford Ramsay head of Marketing and homophile Resources division. He has worked and co-owned Wright and Ramsay, an advertising agency, for fifteen years. Ramsay received a BA and MBA from University of Technology Jamaica UTech. Dwayne McKay McIntoch Head of product development division. He was antecedently vice president of operations at Greentree Sports in Phoenix, AZ.He received his BA from Caribbean Maritime Institute Jamaica CMI and his MBA from UCLA. Keyon Hinds Financial mastery and head of administration. He was previously financial controller of French Collection for joined Kingdom FCUK for seven years. He has returned home to provide his knowledge and expertise in the building of Swiff Electronics. He received his BA at the University of Technology Jamaica and a MBA at Cambridge University. Kirkpatrick Binns Operation manager. Binns is the owner of Legendary Manufactures and has worked as operation manager for six years at Docks producers in Marthas Vineyard. He has rece ived a B. Sc. at the University of Technology Jamaica and a MBA at Texas A&M University. Management Team Gaps The succeeding(a) important gaps exist The present aggroup has smallish sales experience. There is no up-to-date in-house designer this should be corrected at bottom a year. There is no international manager. Personnel The personnel aim calls for adding three employees by the end of the first year for a total of eight. After the second year, employment is expected to increase by another four. These new employees will go into production and sales.Swiff Electronics aims to provide the finest services to its employees. In fulfilling this aim the company provides benefits for all full time employees which include ? Health plan ? Life insurance ? pension plan The company also observes all public calendar holi long time. For public holidays, lucre stipendiary employees will receive a day off, and hourly paid employee will receive double pay for the hours work ed on these days. whole employees are also entitled to three sick days per month however only full time employees will receive pay for these periods. Vacation time is available for all employees having being with the company for a minimum of one year.The following give detail has to how the time is distribute NUMBER VACATION OF YEARS date (working days) 1 5 2 4 14 4 and over 28 For employees who may experience a death in the family they will be bailable for additional days off. For death within the immediate family, employees will receive 4 working days off (spouse, children, boot etc. , and 2 working days off for other members of the family (cousin, uncle, aunt etc. ). The company will also present a floral presentation to the team member who has experience such tragedy. Swiff Electronics hiring policies are governed by ? Title VII of the genteel Rights Acts ? Age Discrimination Law ? The Americans with check Act ? The Family Leave Act As the company gives equal op portunity to all applicants irrespective of the colour of their skin, religious believe, age, nationality, disability and sexual orientation. Organizational Chart pic Work Schedule pic Work period April 9, 2007 April 15, 2007 approve by_________________________ Names ITEM QUANTITY necessitate outlay FOR EACH TOTAL PRICE Desk 5 4080 20400 Chairs 8 3200 25600 Shelving 9 3700 33300 linger chairs 3 6900 20700 supply for furniture and fixtures lakh Machinery / Equipment Computers 3 40000 120000 positive for machinery and equipment 120000 Checklist for start-up cost ancestry 57,866,000 furniture and fixtures 100,000 Machinery and equipment 120,000 Prepaid expenses Insurance 150,000 kelvin opening advertising 70,000 wakeless fees 80,000 accountancy fees Employees wages 300,000 Other hit prepay expenses 600,000 deposits lease 120,000 Utility Tax 994,500 other 50,000 Total deposits 1,299,500 Bui lding and renovation If purchased sales price Construction /renovation If lease Leasehold improvements Total location cost 0 Working capital Owners salary 500,000 Employees salary Employee taxes consume Advertising Utilities Supplies hollo heavy/accounting fees Loan payment Repairs/ livelihood Auto/travel expenses inventory assorted Total working capital 500,000 Total Start-up cost 60,350,500 Financing 1. What are your total start-up costs? $ 60,350,500 2. How much will you invest from personal funds? $350,000 3. How much will you obtain in other equity? 0 4. How much will you borrow? $60,000,000Bank loan$ 5,000,000 Borrowed for 5 years at 17% interest Finance companies $55,000,000 Borrowed for 7 years at 16. 45% Opening Day Balance opinion poll Assets on-going assets Cash (working capital)500,000 Supplies Prepaid expenses465,000 chronicle 57,866,000 Total current assets$ 58,831,000 Fixed assets Furniture/fi xtures100,000 Machinery/equipment120,000 Renovations Total frozen assets 220,000 Total assets$ 59,051,000 Liabilities Current liabilities Long term debt 60,000,000 Total current liabilities Long term liabilities Total long term$ 60,000,000 Total liabilities$ 60,000,000 Equity Total liabilities and equity project Income Statement gross sales 72,332,500 cost of goods sell beginning inventory 0 + purchases 57,866,000 + freight 0 - ending inventory 0 = cost of goods sold 57,866,000 Gross margin 14,466,500 Expenses Employee wages 300,000 Legal 80,000 Advertising 95,000 Rent 120,000 Depreciation Supplies Utilities 5000 Telephone 3300 Interest Repairs Taxes 994,500 Insurance 150,000 Miscellaneous Total expenses 1,747,800 Net profit 12,718,700 little income -3,179,675 Less self employed tax -890,309 Net profit after tax 8,648,716 Jan Feb Rent 120,000 Telephone 3,300 Legal 80,000 Insurance 150,000 Total 350,000 3,300 Determine breakeven Contribution margin Projected sales for first year$ 198,738,715 Gross margin$ 173,598,000 Contribution margin =. 87 Break even Total fixed expense4,200,000 Contribution margin0. 87 Break even point BE= 4,200,000/0. 87 = $4,827,586. 21 Legalities ____________________________________ Swiff Electronics is a partnership or restrain liability company.The decision to choose this organization form is as a result of legalities that surround our organization. Being a limited liability organization gives us the opportunity to pull together the needed funding as well as a profound and well grounding decision making team. Calfrod Ramsay the Marking manager is before long in discussion with the producers of our product, making treaty to be the main electrical distributor of the Spot Charge within our marketing environment. With that agreement finalize no other company would have legal right to purchase or be a distributor for the manufacture of Spot Charge within t his market. Insurance Requirements ____________________________________In ensuring the safety of our employees and piazza is . Swiff Suppliers ____________________________________ Swiff Electronics source all its products from Teqtronics Manufacturing located in China. Although there are not the only suppliers, Teqtronics has proven to be more consistent in their business agreements and the quality of the product they offer. They are also the only producers of the brand and type of Spot Charge that we will be marketing. The credit terms offered by Teqtronics are unbeatable and they give us the opportunity to choose the quantity of products we would like to order based on the demand of our customers. Uncontrollable risks ____________________________________There are a number of uncontrollable risks that plagues new businesses that are now on the list of Swiff Electronics. These risks include ? Natural disasters Hurricanes Storms Flood etc. ? order of inflation ? Changes in techn ology ? Changes in consumer tasks and life style ? New competition ? The continuous decrease in order of our dollar vs. our counterparts Conclusion ____________________________________ pic Managing Director Dexroy Jones Financial Controller/ Administration Keon Hinds Marketing and HR Manager Calford Ramsay Product Development Dwayne McKay McIntoch Marketing and sales TBA Operations manager Kirkpatrick Binns administrative Assistant TBA Marketing and Sales TBA