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Transcript of businness plan e-commerce.doc
Table of Contents
1.0 EXECUTIVE SUMMARY.........................................................................................3
2.0 THE BUSINESS PROFILE........................................................................................3
2.1 DESCRIPTION OF BUSINESS.........................................................................................3
2.2 TARGET MARKET AND CUSTOMERS..........................................................................3
2.3 GROWTH TRENDS IN THIS BUSINESS.........................................................................3
2.4PRICING POWER..........................................................................................................4
3.0 MANAGEMENT PLAN.............................................................................................5
4.0 COMMUNICATIONS................................................................................................5
4.1 COMPUTER AND COMMUNICATION TOOLS................................................................5
4.2 RESOURCE REQUIREMENTS........................................................................................5
5.0 ORGANIZATION AND INSURANCE:...................................................................6
5.1 BUSINESS ORGANIZATION..........................................................................................6
5.2 PROFESSIONAL CONSULTANTS...................................................................................6
5.3 INSURANCE.................................................................................................................7
5.0 PREMISES...................................................................................................................7
5.1 LOCATION CRITERIA..................................................................................................7
6.0 FINANCIAL PLAN.....................................................................................................7
6.1 EXPENSE FORECAST...................................................................................................8
6.2 MARKETING EXPENSES..............................................................................................8
6.3 E-COMMERCE EXPENSES...........................................................................................8
6.4 STAFF SALARY EXPENSES..........................................................................................9
6.5 SALES FORECAST.......................................................................................................9
6.6 INCOME FORECAST...................................................................................................10
7.0 E-COMMERCE.........................................................................................................10
7.1 E-COMMERCE BUDGETING.......................................................................................11
7.2 E-COMMERCE COMPETITION...................................................................................11
8.0 MARKETING PLAN................................................................................................11
8.1 THE COMPETITION...................................................................................................12
8.2 MARKETING OBJECTIVES.........................................................................................12
8.3 POSITIONING.............................................................................................................12
8.4 MARKETING MIX......................................................................................................12
8.4.1 Pricing..............................................................................................................12
8.4.2 Placement.........................................................................................................13
8.4.3 Advertising and Promotion Plans.....................................................................13
9.0 SWOT ANALYSIS....................................................................................................14
9.1 EXTERNAL ENVIRONMENT ANALYSIS-.....................................................................14
9.2 INTERNAL ENVIRONMENT ANALYSIS.......................................................................15
10.0 GROWTH PROGRAM..........................................................................................17
11.0 EXIT STRATEGY...................................................................................................17
12.0 Operational Plan......................................................................................................19
1.0 Executive Summary“Future Inn” is the high class student consultancy providing Company, having its business
throughout Pakistan. Our mission is to provide the customers best quality at reasonable prices.
The reason of our entrance in this field is that there is no one in this field through out the world
that are focusing on student consultancy. We have prepared its business plan with special
reference to Pakistan. We have prepared its financial plan, marketing plan and operational
plans over the basis of our forecasting. Our income statement shows that we can generate
enough profit in both current and future scenario. Our major focus is to provide consultancy
to students, parents and educational institutions.
2.0 The Business Profile
2.1 Description of businessWe plan to provide consultancy to students from nursery to higher education level that
which type of education they should receive to get maximum results from their abilities.
We will conduct different types of physical and psychological tests under the light of
which we will recommend best suitable field to our customers. Business will be
conducted through click and brick basis.
2.2 Target Market and CustomersOur customers will be individuals, parents and educational institutions. Business will
conducted on physical and electronic basis. First, we will conduct business within
Pakistan. Later, we will expand our business to other countries over the basis of our
research and development department.
2.3 Growth Trends in This BusinessOur idea is quite unique and also the dire need of the society. Researches show that
failure of a student in a particular field is either due to wrong selection of field or
imposition by parents to acquire particular field. So, to overcome this problem, our
business will gain prominent potential in the society.
2.4Pricing Power We can do generate maximum benefits from the society due to our first mover advantage.
But initially we will not focus on pricing power, as we are to create awareness of the
society towards our particular services benefits. For this sake, we will provide free
services to different institutions and also introduce discount chains. As soon as our
business receives reputation, we will revise our prices but still they will be in the reach of
average customer. Generally consultancy firms charge higher prices but we will charge
low prices due to following reasons
Low business operation expenses
Larger market; low price can generate enough revenue
Target market comprises of mainly lower middle class
Focus is to capture world over market
To provide maximum benefits to the society so that Pakistan could enjoy the
advantage of competent labour force
3.0 Management Plan
4.0 Communications
4.1 Computer and Communication ToolsWe plan to take advantage of all the computers and communication tools presently
available to establish ourselves on the same level playing field. Following are the
tentative specifications and budget for these equipments.
4.2 Resource RequirementsCommunications
All communications equipment is as following
Computers
Telephones
Facsimile
Networking
Budget for all communications equipments as
G.M
CFO (1)
MIS Officer(1)
Marketing Manager(1)
Finance Officer(8)
MIS Officer(2)
IT Officer(1)
Marketing officer(2)
Operations Officer(2)
Operation managers
(3)
Product Description Unit price (Rs.) No. of units Total (Rs.)
Computers P4, Core 2 duo (Intel),non
branded
20,000(Avg.) 55 1,100,000
Telephones CLI 500 12 6000
Fax machine Laser fax (sharp inc.) 3800 3 11,400
Networking Intranet, internet 20,000 3 60,000
Printers Hp:/printer/copier/scanner 20,000 3 60,000
Furniture - - - 200,000
Total 1,437,400
5.0 Organization and insurance:
5.1 Business OrganizationWe plan to form a limited company for our business. It is our intention to grow our
business into a larger firm with international relationships. The initial and ongoing costs
of operating as a company will be a necessary business expense. Also, since a properly
run company will afford our some limits of liability, we feel this is the right form of
business for us. We intend to depend on our attorney to handle all aspects of setting up
the company and maintaining proper corporate records.
5.2 Professional ConsultantsOur professional consultants for outsourcing will be as
Attorney
Accountant
Insurance Agent
Banks
E-Commerce Consultant
5.3 InsuranceWe plan to use the services of Adam Jee Insurance Company. Our insurance policies
and limits of coverage will be provided by insurance agent who will also provide us with
limits of liabilities. We will insure our business by analyzing its growth potential.
5.0 Premises
5.1 Location CriteriaDuring our start-up phase of approximately 3-6 months, we plan to acquire apartments in
famous universities or schools through the special co-operation of HEC (Higher
Education Commission) and government of Pakistan, as they are already proceeding such
kind of centers to promote education and brain drain to brain gain programmes. In this
way we will provide free consultancy to the students of these universities or institutions.
We are planned to acquire apartments in
The University of Punjab in Lahore
Karachi University in Karachi
Quaid-e-Azam University in Islamabad
We are very much sure that these mutual agreements will take place between our
company and these institutions, as many colleges provided spaces to computer centres
and they are successfully running their businesses. If we acquire places in these
institutions then we can do acquire enough space to test our customer’s mental and
physical abilities through simulation tests.
Our business will also be operated electronically. So customers can receive services from
any where through our website.
6.0 Financial plan
In financial plan, we will discuss monthly expenses, budget forecasted and break even
analysis.
6.1 Expense forecastThe expense forecast will be used as a tool to keep the department on target and provide
indicators when correction or modifications are needed for the proper implementation of
the marketing plan.
6.2 Marketing ExpensesMarking expenses include
Seminars
Personal visits
We will conduct seminars in different schools and universities. In these seminars
renowned educationist and head of institutions will be called. We will also visit many
institutions personally to tell about our plan.
Total cost that will be incurred in Marketing is Rs. 100,000.
6.3 E-Commerce ExpensesAs we are providing high quality products with customized and e-solutions, so our E-
commerce cost is
Approximately 100,000.This cost includes
Web designing & web hosting
Online transactions
Customer feedback
6.4 Staff Salary ExpensesOur salary expenses are 225,000.
Sr.no Designation No. of Employees Avg./ person Total (Rs.)
1 G.M & Chief Psychiatrist 1 200,000 200,000
2 Finance Managers 8 26250 210,000
3 Operation managers 3 20,000 60,000
Psychiatrist 5 80,000 400,000
Physicians 6 37,500 225,000
Educationist 6 43,000 260,000
Office boy 3 6000 18,000
Security guards 3 6000 18,000
Sweepers 3 5000 15,000
PRO 3 10,000 30,000
4 Marketing 3 15,000 45,000
5 MIS 4 18,750 75000
6 R&D* 3 - -
Total 48 1,556,000
*Chief Psychiatrist, Chief Physician, Chief Educationist will be appointed honorary in
that department.
6.5 Sales ForecastWe expect that at initial stage of our businesses we will attract 2600 students in all three
centres. They are described as following:
Lahore =800 students
Karachi =1000 students
Islamabad =800 students
We will charge Rs. 999 per case.
6.6 Income Forecast
Sales Amount (000)
2600*999 2597.4
Gross income 2597.4
Operating expenses
Admin. Expenses (50)
Salary expenses (1556)
Marketing expense (100)
Outsourcing expenses
E-commerce expenses (100)
Legal consultancy (20)
Accounting consultancy (15)
Other expense
Interest expense (12% or 3%)* (360) (90)
Net profit before tax 396.4 666.4
less: (tax 15%) (59.46) (99.96)
Net profit after tax 336.94 566.44
*12%= If government does not finance
3%= If government finances
7.0 E-Commerce
A website focusing on business-to-business and business-to-customer E-commerce will
be an important tool in our overall marketing program. We plan to build and install the
www.futureinn.com website, which we will register by our IT consultants. This will
permit our customers to have access to our products and order (and reorder) services via
this website. We are planned to hire “Netsole” E-Commerce Consulting Company to
design, install and maintain this site.
The features of the www.futureinn.com site will include:
It will be easy to use with good navigational features and prompt loading
The site will provide useful content including detailed information about all
items in our product line
Purchasing procedures on a B-to-B and B-to-C basis will be designed and
implemented.
We intend to use the site to generate client feedback to help improve every aspect of our
product line, operation and business procedures.
7.1 E-Commerce Budgeting The budget for design, implementation and start-up of the E-Commerce site will be Rs.
100,000. This is based on a firm contract with “Netsole” E-Commerce Consulting
Company.
7.2 E-Commerce CompetitionThe use of business-to-business and business-to-customer e-commerce has become
standard in today’s business and is an important marketing tool. We are pioneer in this
business. So, we do not feel any intense competition in near future. Even though, we keep
in mind that our competitors will come into the market by analyzing our success. For this
sake, we will continue to upgrade our business on continuous basis.
8.0 Marketing Plan
We plan to focus all initial marketing efforts on introducing our business to our esteemed
community and establishing a brand name that could depict quality. We will personally
be responsible for the contacts with the appropriate customers. Initially our price
structure will be based on a minimum price and free sample tests, so that we could catch
more and more customers and introduce our business and its benefits well to our potential
customers. Later on, we will increase price of our services. But still these prices would be
lower, as our business is fully based on lower price strategy.
8.1 The CompetitionWe will enjoy first mover advantage in this business. Our monopoly will provide us
opportunity to concentrate more on our business than making expenses on advertising to
compete our competitors in the market. These savings from advertising will help us to
increase our revenue. But we can not enjoy these benefits in long run because our
business success will certainly call new entrepreneurs in the business. At this stage our
early savings will help us to depict our business better than our competitors.
8.2 Marketing Objectives Maintain positive strong growth
Achieve a steady increase by market penetration
To reduce the administrative cost
8.3 PositioningWe will position ourselves as a world class education consultancy providing firm. This
positioning will be achieved by leveraging our firm competitive advantage; innovator and
passion to produce high quality, cost effective services. Its management is able to use its
new ideas to sustain long run growth and changing market strategies according to the
market situation.
8.4 Marketing mixMarketing mix is a set of tools that is used to pursue the marketing objectives. These
tools are known as 4 P’s: price, place, promotion, and products.
8.4.1 Pricing Price is one of the revenue generating elements of the traditional marketing mix and price
premiums are one of the most important equity benefits of creating brand awareness and
strong, favorable and unique brand associations. To set the price consumer perception
and value of the product should be kept in mind. So our firm will use the price
penetration strategy.
8.4.2 Placement The manner by which a product or service is sold or distributed can have a profound
impact on the resulting equity and ultimate sales success of a brand. So the marketing
channels are defined as "sets of interdependent organizations involved in the process of
making a product or service available for use or consumption."
Channel strategy involves the how many channels are being used for the distribution of
product or service and how much convenient they are? We have two channels for the
distribution of our services. These are as:
Our service centers located in three major cities
Electronic mode will also be used to distribute our services
8.4.3 Advertising and Promotion PlansShort Range Plan (6 to 12 months)
Initially our advertising and promotion will be done on an entirely personal basis without
any budget for paid advertising. It is quite unique idea, people certainly will require
personal visits to receive know how about the business. We will conduct seminars in
different schools and universities. In these seminars renowned educationist and head of
institutions will be called. In this way, we can better depict and introduce our business.
We can also limit our advertising budget to personal travel expenses in making these
presentations and follow-up presentations. Firstly, these seminars will be conducted in
three major cities i.e. Lahore, Karachi and Islamabad.
Mid Range Plan (12 – 36 months)
To establish brand recognition at the services level, we plan to budget 2.5% of our
revenue. We will know advertise our business at cable network and billboards in three
major cities. We will solicit presentations from local advertising agencies.
Long Range Plan
We plan to aggressively build brand recognition and loyalty by budgeting 5% of sales,
which will be allocated between cable network ads, famous TV channels, in trade
journals, newspapers and bill boards. Now we will focus whole Pakistan market.
Services
We plan to provide consultancy to students from nursery to higher education level that
which type of education they should receive to get maximum results from their abilities.
We will conduct different type of physical and psychological tests under the light of
which we can recommend best suitable field to our customers. Business will be
conducted through click and brick basis.
12.0 Operational Plan
9.0 SWOT Analysis
9.1 External environment Analysis-Opportunity matrix
1. We develop innovative products by the experienced and qualified staff
2. We enhance our overseas operations to capture foreign markets
3. Capitalizes world economy
4. We develop CRM System
Hi Low
HI
Hi
Low
Threat Matrix
1. Our major threat is that how much our tests are reliable
2. Competitors develop superior system
3. Customer’s financial weakness may affect our business success
4. Major prolonged economic depression
Hi Low
Hi
Low
Success Probability
Att
rac
tiv
ene
ss
1
43
2
Probability of occurrence
Ser
iou
snes
s
1 2
43
9.2 Internal environment Analysis
Performance Important
Marketing Major
Strength
Minor
Strength
Neutral Minor
Weaknes
s
Major
Weaknes
s
Hi Med Lo
w
Company
Reputation
Market
Share
Customer
Satisfaction
Customer
Retention
Service
Quality
Pricing
Effectivenes
s
Distribution
Effectivenes
s
Promotion
Effectivenes
s
Geographic
al coverage
Finance
Availability
of capital
Cash flows
Financial
Stability
Services
Facilities
Economies
of scale
Organizati
on
Visionary,
capable
leadership
Dedicated
Employees
10.0 Growth Program
Once our business has been established we plan to implement the following growth
strategy. We anticipate it will take approximately 2-5 years to gain sufficient experience
and level of profits before any expansion plans are implemented.
Our growth strategy will be guided by the following:
We will not set an inflexible timetable for expansion but will wait until a sound basis of
experience, earnings and cash flow is achieved. Accounting and cash flow controls will
be in place with profit and loss statements prepared for each centre on a monthly basis.
Internal controls for accounting and money handling will be in place.
11.0 Exit Strategy
We have three options available for us to safe exit. These three options are as following:
We can sell our business if better option available
We can convert our business to patient’s physic and psycho analysis centre if our
business fails
We can joint venture with well reputed organization to strengthen our operations
globally