Enterprise in Action: Group Business plan

Manchester Metropolitan University Enterprise in Action

Assignment 1: Business Plan Adam Thompson: 14017000 Alexander Qualter: 14016757

Ashley Graham: 12078026 Jack Legge: 14040012

James Oakes: 14002986 Rory Philbin: 14039932

Contents

Title Page 1.0 Executive Summary 2 2.0 Company Description 3 2.1 Introduction 3 2.2 Company History 3 2.3 Mission Statement 3 2.4 Strapline 4 2.5 The Product 4 2.6 Current Status 4 2.7 Ownership 4 3.0 Industry Analysis 5 3.1 Industry Definition 5 3.2 Industry Size and Growth 5 3.3 Industry Characteristics 7 3.4 Porter’s 5 Forces 8 3.5 Key Industry Ratios 9 4.0 Market Analysis 10 4.1 Market Segmentation and Target Market 10 4.2 Segment Characteristics 10 4.3 Segment Size 10 4.4 Behavioural Variables 10 4.5 Competitor Analysis 11 5.0 Marketing Plan 12

5.1 Positioning Strategy 12 5.2 SWOT Analysis 13 5.3 Points of Differentiation 14 5.4 Pricing Strategy 14 5.5 Sales Process 14 5.6 Promotional Mix 15 5.7 Distribution and Sales 16 5.8 Marketing Mix 17 6.0 Management Team and Company Structures 18 6.1 Management Team 18 6.2 Skill Profile and Gaps 24 6.3 Ownership and Compensation 24 6.4 Structure of Organisation 25 7.0 Operations 26 7.1 Production 26 7.2 Communication Channels 26 7.3 Resources 26 7.4 Shipping Costs 27 7.5 Suppliers Imported From China 27 7.6 Domestically Sourced Supplies 27 8.0 Product Development Plan 29 8.1 Development Status and Tasks 29 8.2 Challenge and Risks 29 8.3 Costs 30 8.4 Intellectual Property 30

9.0 Corporate Social Responsibility 31 10.0 Financial Projections 32 10.1 Sources and Uses of Funds Statement 32 10.2 Profitability Ratios 32 10.3 Financial Status Ratios 32 10.4 Balance Sheet 33 10.5 Cash Flow 34 10.6 Profit and Loss 35 10.7 Conclusion 36 11.0 Milestones and Exit Planning 37 11.1 Goals and Visions 37 11.2 Strategies 37 11.3 Milestones 38 11.4 Exit Planning 38

Appendix 39

Figure ListFigure 1: Market Size of the Toy and Games Industry 8Figure 2: % of Store-Based Retailing of Toys and Games in the UK 9Figure 3: Profitability in the Toys and Games Industry 9Figure 4: Household Expenditure on Toys and Games in the UK 10Figure 5: Market Shares in the Toys and Games Industry 11Figure 6: Current Ratio for the Toys and Games Industry 12Figure 7: Debt to Worth Ratio for the Toys and Games Industry 12Figure 8: Positioning Strategy of Wobbly 15Figure 9: Distribution Channels of Board Games in the UK 19Figure 10: Ratio Analysis 35

References 59

1.0 - Executive Summary A brand new experience in board games. Wobbly is an innovative, revolutionary, twist on a classic product. We plan to use motorised technology in the traditional board game market to create a unique product which engenders fun and interaction between participants. In the growing market of toys and games, we aim to make Wobbly a first choice for family fun in households across the UK. It is a common misconception that modern technology is responsible for anti-social family behaviour and declining interaction. However, our research suggests that surprisingly the board game market is growing and so we firmly believe in the creation and launch of Wobbly. Modern families often feel pressurised to spend time together. There is a contradiction in that whilst we are connected through ever increasingly sophisticated technology, our lives can be perceived as being isolated. Wobbly offers a solution to this problem; simply combining modern technology with the traditional excitement of a board game which combines to create fun and laughter for generations. Wobbly tests the players’ nerve, and construction skills. The players have to build a sturdy tower, on their own platform. A battery powered motor then vibrates the board and if your tower is not built securely, it will tumble and your game is over. The target market for Wobbly consists of 16.9 million UK families (ONS, 2015). It is clear, through the execution of detailed industry and market analysis, that we have a huge potential audience who can benefit from this unique product. We have chosen to sell the product through online retailers, following reports of a majority of sales through this channel. To support this, we have created our own website which our product will be sold directly through. Although our company is still in its initial stages of development, we have huge ambition for our product, and the determination to take the industry by storm with our concept.

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2.0 - Company Description 2.1 - Introduction Wobbly is an innovative, modern, and unique new company set to enter the toys and games industry with a family board game. We would like to bring our product to market by 2017. The Team: Alexander Qualter (Founder)

Ashley Graham (Financial Director) Adam Thompson (Design and IT Specialist) James Oakes (Project Co-ordinator) Jack Legge (Operations Manager) Rory Philbin (Marketing Specialist)

Location: We are located in Manchester Metropolitan University and hold team meetings in the library.

Market Demographic: We aim to begin selling our product to the UK board game market, with our target market being families of 4, with children over the age of 6.

Contact Information: Alexander Qualter [email protected]

2.2 - Company History Wobbly started as a man with a dream. Alexander Qualter was completing a class activity during a university tutorial, when the idea of a wobbling board game came into his head. Having considered the idea further, the name for the product was born, quickly followed by its mechanics, rules and objectives. After pitching the concept to a selection of housemates and course-mates at university, Alexander received positive feedback, with friends confirming their belief and validity in the business idea and product. From this encouraging start, he decided to pursue Wobbly by planning to bring the product to market. A team was formed, consisting of Enterprise in Action classmates who were selected for their specific attributes and specialisms developed through previous experience in industry and education.

2.3 - Mission Statement To infuse the board game industry with a new generation of family fun, diverse to anything ever played before.

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2.4 - Strapline Will You Wobble?

2.5 - The Product Contents of the Game: Game board

4 coloured bags containing 20 bricks each Packaging (Including instructions: printed on the box)

Wobbly will be competing in the toys and games industry, for a place amongst the market leading, family favourite games such as Monopoly, Trivial Pursuit and Mouse Trap. Wobbly sets itself apart from the “classics”. A central component exists in the form of a small, battery powered motor which wobbles the board. This unusual aspect helps establish its uniqueness. The game allows for every player to participate at once, ensuring involvement and engagement throughout. The product is to be produced and distributed from the HQ in Manchester to customers (Both businesses and consumers). The pricing of Wobbly will be competitive with market leading games, although will be higher than the average board game due to the electronic component costs involved with production.

2.6 - Current Status The Wobbly business is in the initial stages of growth, however there have been significant developments made towards bringing the game to market.

A prototype of the game has been made and has undertaken thoroughproduct testing.

The financials of the business have been researched and calculated, withfinancial documents being drawn up including cash-flow, profit and loss, andprofitability of the business.

Market research has been conducted, showing demand for the product,healthy market analysis, and desirability from customers.

2.7 - Ownership Wobbly is a partnership company, shared equally between the six initial members of the team. Each member is equally liable for the company.

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3.0 - Industry Analysis 3.1 - Industry Definition Wobbly is looking to enter the toys and games industry by 2017. The toys and games industry produces entertaining and fun products for children, teens, adults and families all to enjoy.

3.2 - Industry Size and Growth Figure 1 (below) shows the historic size of the toys and games industry between 2009 and 2014. Although the figures declined between 2009 and 2012, more recent figures show the industry’s size is growing and is currently valued at £6.6bn in 2016 as seen in Appendix 1. The industry is set to increased its size to £7.3bn by 2019.

Figure 1: Market Size of the Toys and Games Industry Source: www.euromonitor.co.uk The toys and games industry has shown a decrease in % distribution of sales through retail stores. Figure 2 (on the following page) shows that between 2009 and 2014, the retail sales dropped by 14%, therefore increasing the sales through online retailers to 36%. Although the in-store retailers still hold the majority share of sales of toys and games, the signs of growth in distribution through online stores is very appealing for our Wobbly business.

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Figure 2: % of Store-Based Retailing of Toys and Games in the UK Source: www.euromonitor.co.uk It has been established that in recent years, the toys and games industry is inclining in size. Despite common thoughts that board games were obsolete, the market is proving otherwise, with UK companies recording profit margins between $2.1m and $15.6m. In Figure 3 (below) we can see the total gross profit of the UK toys and games industry each year, since 2009. Peaking in 2010 at $123.6m, the industry has proven that the market is healthy, and there is potential for profits to be made. This table of data also shows that costs generally increase with sales. Combining the data from Figure 1 and 3, we can see a trend and positive correlation between sales increasing and costs increasing and vice versa.

Figure 3: Profitability in the Toys and Games Industry Source: www.euromonitor.co.uk

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Expenditure on toys and games has increased proportionally to the ever-growing population in the UK, and the GDP of the country. Despite this increasing figure, the expenditure growth has decreased in recent years and looks set to level off as it previously did in 2004. Therefore, a unique and differentiated product such as Wobbly could help UK families to rediscover their love for board games and contribute towards once again growing the household expenditure on toys and games.

Figure 4: Household Expenditure On Toys and Games in the UK Source: www.euromonitor.co.uk

3.3 - Industry Characteristics Figure 5 (on the following page) shows the market share of the leading 18 businesses in the toys and games industry. We will be competing against Hasbro and Lego for sales of board games, to families in the UK. Both companies combined only hold 9% of the market share, highlighting the problem of market saturation in the traditional board game market. Although this is a potential threat to our company’s entrance to the market, we also see this as an opportunity to differentiate ourselves from others in the industry, helping our game to stand out from the crowd.

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Figure 5: Market Shares in the Toys and Games Industry Source: www.euromonitor.com

3.4 - Porter’s 5 Forces Threat of new entrants ishigh with potentially low start-up costs for business in the industry

Bargaining power ofbuyers is high due to large amount of choice of products

Toys and games industry is saturatedwith thousands of different board games for sale therefore the threat of substitute products is high

Suppliers have a low bargainingpower as our game has a small number of components with a high number of potential suppliers

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3.5 - Key Industry Ratios The current ratio tests the ability of a company to cover their short term liabilities with their short term assets. As Figure 6 (below) shows, the current ratio of competing companies in the toys and games industry, has increased between 2011 and 2015. The industry average is 2.2.

Figure 6: Current Ratio for the Toys and Games Industry Source: http://retailowner.com/Benchmarks/Recreation-Leisure-Activities-Stores/Hobby-Toy-and-Games-Stores#2922155-current-ratio The debt to worth ratio in Figure 7 (below) is decreasing year on year between 2011 and 2015. This ratio tells us that the companies in the toys and games industry now have much less debt compared to their value as a business.

Figure 7: Debt to Worth Ratio for the Toys and Games Industry Source: http://retailowner.com/Benchmarks/Recreation-Leisure-Activities-Stores/Hobby-Toy-and-Games-Stores#2922154-debt-to-worth

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4.0 - Market Analysis 4.1 - Market Segmentation and Target Market The toys and games industry can be segmented by product type and target market for the product. The Wobbly board game is segmented in this industry as a board game, with a target market of families of 4 or more, in the UK.

4.2 - Segment Characteristics Geography: United Kingdom Demographics: Children aged 6 – 12, with parents of any age targeted

Families of 4 or more Product Variables: Board Game

4.3 - Segment Size There are 16.9m families in the UK. UK families are our target market, with a reasonably open age range of targeted people.

4.4 - Behavioural Variables Target marketing recognises the diversity of customers and by using behavioural segmentation. This should help us to identify our target market behaviour towards board game products Benefits Sought: Families want to spend more time playing together Usage: Wobbly will be a one off purchase and usage will vary. We

envisage peak playing times at weekends, public holidays and family gatherings. The usage will also be seasonal with usage being especially during winter around Christmas time.

Brand Loyalty: Brand loyalty will be established by offering a quality product with excellent customer service.

User Status: Families and groups of two to four from ages 6 upwards Readiness to Buy: Awareness of our product, knowledge of it benefits, we will have to

create initial interest and preference over competing products (we believe ours is unique as it has a motor and wobbles). They will need conviction that our product will be suitable for their needs prior to them making a purchase commitment.

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Occasions:

Market Size:

Behaviour:

Christmas, birthdays and family events will be key occasion for us to sell Wobbly. The game industry was at its peak in the year 2009 and has gone onto recline in the year 2013. However, 2014 saw the industry recover and gain its market size equal to that of 2009. (Euromonitor, 2016). Jane Westgarth - Senior Market Analyst suggests that customers may not go to toyshops anymore and instead they will be more likely to buy online or from a supermarket (Mintel, 2016).

4.5 - Competitor Analysis Competitor analysis will be an ongoing process for our product. Currently, Jenga and Lego stand as large competing board games which include a board and blocks, however neither product incorporate motors. In order to assess our competitors, we have completed an assessment of the operational performance of Wobbly compared to Lego and Jenga. The 5 key areas assessed are the performance objectives of operation. Company Product

Quality Cost Dependability Speed of

ProductionFlexibility Total

Wobbly 4 3 4 3 3 17 Lego 4 2 4 2 5 17 Jenga 3 4 4 4 1 16

5 = Excellent, 4 = Good, 3 = Average, 2 = Poor, 1 = Very Poor Lego is a high quality product with many different types of product, in many markets. The product quality is never compromised, meaning the brand scores high in dependability, product quality and flexibility. With quality comes a much varied price, and so often Lego have to charge high prices for their high quality product. Lego also has a reasonably low speed of production, and overall scores 17/25. Wobbly scored the same as Lego for product quality and dependability. Wobbly will offer a high quality product, with great customer service which enables it to score highly on dependability. Although Wobbly does not score as high as Lego on flexibility, the brand scores higher on cost and speed of production. Wobbly also scored 17/25 overall. Jenga has a very low cost with the product available to purchase from as little as £2.95. The product also has an average product quality, with a good speed of production and dependability. The product has low flexibility, and therefore only scores 16/25 overall.

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5.0 - Marketing Plan Our target market are families of 4 or more. In this instance, we define "families" as: parents who have children aged 6 years or more. We have chosen families as we believe they will enjoy the game the most, and there is a large number of families in the UK. Numerous polls suggest that 90% of families believe playing games together increases positive interaction with each other and that it helps them to feel closer (The Board Game Family, 2013). We know board games are in an ever-increasing industry and we feel by targeting families we will have the best opportunities to make profits, and survive as a small business.

5.1 - Positioning Strategy

Figure 8: Positioning Strategy of WobblyWobbly’s positioning in the market is based on price and quality compared to competitors. With a high price and a reasonably high quality, wobbly is in the top third on both axis. Lego scored highest on price and quality, and Jenga scored lowest on price and quality. Wobbly is well away from most competitors in the industry which means it is a product with a good differentiation and uniqueness in the market.

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5.2 - SWOT Analysis Strengths Growing Market Size: Board game sales have increased year on year by 10-20%

Vibrant Market:

Easy Start Up:

Weaknesses Market Saturation:

Simplistic Game:

Opportunities Unique Design:

for the past 20 years (Euromonitor, 2015). Non digital games and puzzles sold approximately $2bn worth of products in the USA in 2010 (US Department of Commerce Industry, 2010). Niesta reports 22% year on year growth in board game sales in UK. There are currently 1902 games businesses in the UK (Euromonitor, 2015). Amazon board games experienced a revenue increase of 20% in 2011. Table Top convention (US) reported board game sales up by 15% more than video creations. The game industry was at its peak in 2009 but went into decline in 2012. The following year saw the industry recover and gain in value (Euromonitor, 2016). The cost of each game to produce is less than £15, with little overheads and equipment needed to produce the product. Simple production methods with small numbers of employees are needed.

The market is saturated with many large companies already with a strong presence. The game is simple however there are only so many types of towers that players can build when playing the game over and over again.

The design of the game is completely new to the industry, with no other games like Wobbly meaning we can take advantage of moving first towards this type of game.

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Threats: Size of Competitors: Large companies competing in the market already have

large customer bases and huge marketing campaigns implemented. These are a threat in overpowering Wobbly’s campaign to promote the game as a start-up.

5.3 - Points of Differentiation Current similar market products Wobbly No movement, static game Need to play against players of

similar skill level for gamesatisfaction

Manual dexterity Skills required Slowly placed activity One tower

Board wobbles Exciting for all ages and sizes of

groups Creates uncertainty Teaches creativity and construction All players play at the same time Fast activity

5.4 - Pricing Strategy We have chosen to adopt a competitive price strategy, targeting to compete with the more expensive games. We have forecasted a 69% gross profit margin which is a very realistic target when looking at our cost per unit (£14.75) and selling price (£24.95). The cost per unit includes the materials and labour. We believe this price strategy is competitive within our chosen market. However, from a negative perspective, some may say the production cost per unit is extremely high compared to Wobblys competitors who average a cost per unit of £4.50. Our cost plus price strategy allows us to ensure profits on every unit sold.

5.5 - Sales Process Product Knowledge: This step concerns the overall understanding of our board game and what makes it unique to competitors in the market. Our board game infuses modern technology in the form of a motor, with the traditional board game. Each platform is connected to the motor and wobbles providing a level of uncertainty and excitement as players anticipate their tower falling but hope their tower remains intact. Our product has good quality materials in its production. Prospecting: This section concerns searching for customers. We know our target market is going to be aimed at families, but we need to know how to target them and

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where to target them. From research conducted it was discovered that customers' desires indicate that internet retailing is the fastest growing retail channel in the UK. The Approach: This is where we decide about the approaches we are going to make to people such as manufactures and how we are going to advertise our board game. Emailing companies about our game will not be effective. Our best option will be to pitch our board game to potential buyers as they will first hand get to understand Wobbly. In addition, having a prototype will be a significant benefit as buyers will be able to see how the game works and experience for themselves its unique points.The Presentation: We will present our product to potential buyers; major retailers, supermarkets and online websites. We will focus on the benefits to the customer as well as the uniqueness of Wobbly compared to other competitors. Our presentation will be PowerPoint based, with an advert and a prototype. The Close: The close of the presentation is vital to ensure you seal orders from the buyers. An extra inducement close involves offering something extra to get the buyer to agree, such as a discount or a free product. Follow Up: By building effective initial contacts, relationships are established through contact with a buyer. This is essential to secure an agreement; conversations here are best handled by the salesperson who started the relationship.

5.6 - Promotional Mix Once our target market has been identified, we can focus on marketing Wobbly. This is important for our business as we need to increase product awareness s customers, stakeholders and the broader public have a positive perception about our board game. We will do this in four steps: Advertising, Selling, Sales Promotion and Public Relations Advertising: This is where we entice and persuade potential customers to

choose our board game over our competitors. Advertising will allow people to see and understand our product's features and benefits. We will advertise through the medium of video as our market research suggested that this is the most popular way of advertising to our target market. In addition to this, we will be promoting our board game through social media outlets which is both cheap and effective.

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Selling: Presenting and demonstrating the features and benefits of our product in order to convince the prospect that their want or needs can be satisfied.

Sales promotion: Sales promotion relates to short term incentives or activities that will encourage the purchase or sale of our board game. This will happen through prototypes to buyers to show them the product. We will also engage in business promotions, such as trade fairs and toy fairs to promote our product.

Public relations: Is about building good relations with the stakeholders of our business by obtaining favourable publicity and building/sustaining a good corporate image. By building positive and effective relationships we will grow a satisfied customer base and establish a good reputation for Wobbly which in turn will lead to more sales.

5.7 - Distribution and Sales Figure 9 (below) shows the distribution channels of board games in the UK.

Figure 9: Distribution Channels of Board Games in the UK

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Distribution in %

Distribution & Sales

toy fairs/ trade fairs online web small retail stores national stores amazon

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5.8 - Marketing Mix Product: Wobbly is a unique product and will be marketed focussing on its

differentiation compared to other board games in the market. Our product is made from high quality materials which means it will be reliable and should operate for a very long time without problems. The game is also hand-made meaning the quality is increased.

Price: The price will be marketed at £24.95, which undercuts electronic board games such as Monopoly and Lego, while also being an average price compared to most board games in the industry. The price was decided based on a mark up from the unit cost. This ensures we make a profit from every unit sold.

Place: Wobbly will be marketed online, through social media, while also being marketed on our own website and through the form of a TV advert. The TV advert has been designed and filmed ourselves which reduces the costs of the promotion. Our production and distribution in Manchester is fairly cheap with limited numbers of staff being paid, and also many different benefits of the headquarters’ location in Manchester.

Promotion: Our promotion through the TV advert displays the game in action, with a theme song of Brick by Brick by the Arctic Monkeys. This promotion method will reach millions of families in the UK who watch TV. This is very effective marketing as despite the cost, it will be effective in generating sales in the long term.

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6.0 - Management Team & Company Structure 6.1 - Management Team See Appendix 13 - 18 for full CV's

Personal Profiles Alexander Qualter – Founder Education Manchester Metropolitan University (September 2014 - Current) Business Management First Class Grade

Cardinal Newman College (September 2012 – July 2014) Business Studies B Information Technology B Physical Education C

Work Experience Games Attendant at Blackpool Pleasure Beach (July 2015 – September 2015)

Setting and working towards personal revenue goals Training new staff

Kitchen Porter at Spago Restaurant (June 2014 – September 2014) Developed time management and communication skills, in this fast-paced

environment Sustaining a clean kitchen whilst preparing food I learnt to complete tasks quickly

and efficiently and ensured the high standards of the kitchen were maintained

Voluntary Experience and Interests Volunteering as Lead Promoter and working within the finance team for the Mind,

Body, Spirit Fair in Lytham As Senior Prefect at High school, I took charge of other Prefects ensuring they

were doing their duties, whilst making sure younger students were behaving inan appropriate manner

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Ashley Graham – Financial Director Education Manchester Metropolitan University (September 2015 – Current) Business Management 2.1

Ashton Sixth-Form College Business Management B Sociology B Media C

Work Experience Property Sales Consultant at Express Estates Agency (August 2015 – Current)

Developed my professionalism, negotiation and communication skillsSales Consultant – The Interactive Team (May 2015 – August 2015)

This sales and marketing role required me to hit set targets on a daily basiswhilst building a firm work ethic and gaining a vital understanding of themarketing industry

Mixologist – Revolution (August 2015 – May 2015) Team work Speed of service People skills

Team Leader – IKEA (August 2012 – August 2014) I ran a customer service team of six people This required me to become a leader

Voluntary Experience and Interests Part of the Business School football club who regularly travel to play other

universities, I love being an important part a team focused sport Cycling from Manchester to Blackpool for Christies Charity in 2012 & 2013 Part of Droylsden FC's youth team - Played a fundamental role in helping guide

the team to a league high finish of third.

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Adam Thompson – Design and IT Specialist Education Manchester Metropolitan University (September 2014 – Current) Business Management First Class Degree

Appleton College (September 2012 – July 2014) Business Studies B Information Technology B Physics D

Work Experience Apple Jacks Adventure Park

Serving customers at a grill using a cash register, cashing up at the beginningand end of the day, as well as operating park attractions for guests

Required confidence and good communication with managers and the publicThermo Fisher Scientific

I demonstrated my knowledge and proficiency in the use of Microsoft Excel,through designing the spreadsheets for the process, and then entering therelevant data

I liaised with product line managers in the UK, to check the accuracy of the dataentry before publication

Voluntary Experience and Interests I am a committed member of a gym and enjoy keeping fit. I currently captain an

11-a-side football team at university in a competitive league, and also enjoy bothwatching and playing rugby. I played rugby for 5 years for my local rugby unionside Winnington Park RFC, and in 2012, I won the Most Improved Player Awardwhile in the same season my team won the Cheshire Shield

I was a part of the scouting network for 7 years and was awarded the Chief ScoutGold Award in 2010. During my time with the scouts, I completed the CheshireHike in 2009. I became a patrol leader for 2 years

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James Oakes – Project Co-ordinator Education Manchester Metropolitan University (September 2014 – Current) Business Management 2.1

Denstone College (September 2012 – July 2014) Art B English Language B Business Management C

Work Experience Administrator at Online LPA Services (August 2012 – Current)

This role has expanded my understanding of the need to deal efficiently andaccurately with client demands

I now appreciate how important it is to be professional at all times and have anexcellent product knowledge in order to maximise sales potential as well asreinforce corporate identity

Voluntary Experience and Interests IT Skills: Microsoft Office: Word, Excel, PowerPoint, Outlook, Photoshop Well-developed written and verbal communication skills Co-operative and enthusiastic team member Ability to work under my own initiative when necessary Football Gym

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Jack Legge – Operations Manager Education Manchester Metropolitan University (September 2014 – Current) Business Management 2.1

St Bernard’s Catholic Grammar School (September 2012 – July 2014) 4 A Levels A* - D

Work Experience Bartender at Verve People (November 2014 – Current)

Customer service skills and communication with customers and the rest of theteam

Burnham Working Men’s Club (July 2015 – September 2015) Inter-personal skills Team Work

Voluntary Experience and Interests Represented my school in football, athletics and cricket. Won the Slough Schools Football League in 3 consecutive undefeated seasons Runners up in the 2010 Ron Davis Cup with school football team Captained Windsor Youth F C within 4 months of joining Represented Buckinghamshire in British Inter Counties Youth League in darts During my final year of Sixth Form I was a Prefect Team Leader, which involved

organising duties for fellow Prefects and ensuring that Prefects were fulfillingtheir duties correctly Nominated for House Captain and delivering successful speech to my peers

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Rory Philbin – Marketing Specialist Education Manchester Metropolitan University (September 2014 – Current) Business Management 2.1

Aquinas College (September 2012 – July 2014)

Work Experience Sales at JD Sports (September 2013 – Current)

Dealing with front line sales and operational processes including stock check anddelivery

Seasonal Worker at Argos (September 2012 – January 2013) Working in the warehouse required teamwork and communication skills

Voluntary Experience and Interests Football Gym

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6.2 - Skill Profiles and Gaps

Leader

ship

Marke

ting

Financ

es

Opera

tions

IT Desig

n

Produc

tion

Alexander Qualter

x Ashley Graham

x Adam Thompson

x James Oakes

x Jack Legge

x Rory Philbin

x (Gap) x

We currently have a position available in the team for a production worker. It would be preferable to hire somebody with previous experience so that the excellence of our product is not compromised. In order to recruit, we will use social media – Specifically LinkedIn.

6.3 - Ownership and Compensation Name Position Base

Compensation Percentage of Ownership

Personal Investment

Alexander Qualter

Founder £0k 16.6% £5k Ashley Graham Financial

Director £0k 16.6% £5k

Adam Thompson

Design and IT Specialist

£0k 16.6% £5k James Oakes Project Co-

ordinator £0k 16.6% £5k

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Jack Legge Operations Manager

£0k 16.6% £5k Rory Philbin Marketing

Specialist £0k 16.6% £5k

Total £0k 100% £30k

6.4 - Structure of Organisation Alexander Qualter (Founder)

Ashley Graham (Financial Director)Adam Thompson(Design and IT Specialist)

Jack Legge (Operations Manager)

Production Worker

Rory Philbin(Marketing Specialist)Gap (CSR and Company Ethics Manager)

James Oakes (Project Co-ordinator)

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7.0 - Operations 7.1 - Production Process

7.2 - Communication Channels We aim to have many forms of communication in order to sell and stay in close contact with our customers. Any returned orders for faulty goods or any other issues regarding the product shall be sent to our office. We are offering a telephone service for customer support from the hours of 9-5 every day excluding Sunday. This will help grow our customer satisfaction and create a solid, loyal and respected brand image. We are also going to create social media pages in order to market our product for free. This is an extremely effective way of marketing as an estimated 1.038 billion users log into Facebook each day (Craig Smith, 2016). Therefore, Facebook could help Wobblygrow as word of mouth is the forefront marketing technique in making small businesses grow.

7.3 - Resources The premises will consist of a manufacturing space located at Courtlets House, Second Floor, 38 King Street West, Manchester, M3 2WZ (see Appendix 19). The manufacturing premises will be leased at the cost of £330 per calendar month. In addition, the only machinery that shall be required will be an Epson Stylus Pro 4880 printer, which will be used to print the design of the board game onto the cardboard.

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An employee will be required to manufacture the product using a job production process, where products will be produced by hand. It is estimated that 3 units can be produced per hour. The employee will earn the national minimum wage of £5.30 per hour (see Appendix 9), factoring labour costs at £1.77 per unit. The employee willwork 8 hours a day for 5 days a week totalling 40 hours a week. As a result, theirweekly wages will amount to £212. In addition, it will also be the employee’s role toprepare products for shipping, which includes placing the product into mailing bags aswell as printing off and correctly placing postage labels.

7.4 - Shipping costs Initially, we will purchase a portable label printer, Dymo LabelWriter 450 turbo, as well as an initial 300 polythene mailing bags with bubble wrap lining for £39.71 (including delivery). The mailing bags are going to be purchased from www.polybags.co.uk and will have an individual cost of 0.13p per unit Furthermore, we have the option of setting up a Royal Mail business account, which will reduce domestic shipping costs of 1st class parcels by 30p down to £3, reducing shipping costs by 11%. If a product is required to be posted to the EU, this will cost £6 per parcel (includes trackable updates and proof of delivery) , as displayed on the Royal Mail price guide (http://www.royalmail.com/sites/default/files/Royal-Mail-Business-Price-Guide-30-March-2015.pdf).

7.5 - Supplies Imported from China The copper wire required to link the battery holder and the vibration motor will be purchased online from Tenflyer via Amazon (see Appendix 1). The cost per roll ofwire is £4.64 (including delivery). Each unit is estimated to require 30cm of wiring.Furthermore, one roll of wire can be used to manufacture 1016 units, meaning that thissupply has a unit cost of £0.0046 per unit. The Battery holder cases (see Appendix 10) will be imported in orders of 200 units and will cost a total of £136.13 (including delivery). This attributes a unit cost of £0.68 each. The pouches which will be used to store the game pieces are costed out at £63.93 for a batch off 500 (see Appendix 3). This results in a unit cost of £0.13.

7.6 - Domestically Sourced Supplies The supplier’s website we have chosen to use for our motors is called ‘Precision Micro Drivers’. Our motors will cost £3.54 per unit (see Appendix 4), however the cost maydecrease with economies of scale as our company grows. In addition we will bepurchasing twenty cardboard sheets from Amazon at a price of £14.00, with freedelivery. The large A2

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white card for the printer that we will be purchasing will cost £39.95. This will contain enough card to supply 66 units, averaging at £0.59 per unit. The building blocks we will be using cost £4.80 and each unit will contain 80 blocks. We have bought a printer for a total cost of £570 (see Appendix 12). The cost of Epson ink in a 220ml cartridge: Online prices average at £61 per cartridge + VAT + Shipping.Therefore, each print will cost approximately £1.08 (see Appendix 11).

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8.0 - Product Development Plan 8.1 - Development Status and Tasks Once the license to create the game has been sanctioned, our product will be ready for production. We have designed, developed and tested a prototype, and planned the production methods and packaging. Conception (September 2015) – Alex Qualter came up with the concept of Wobbly whilst taking part in a class activity at university. He developed his idea by envisaging an image of the game and conveying his idea to housemates and classmates. Prototype (March 2016) – This stage of development was researched effectively whereall materials sourced were based on quality and price. This process ensured the product met market requirements. The prototype is fully automated with a working motor, including batteries, and attractive packaging. The game currently stands as a working prototype. Testing (March 2016) – The testing phase of development is complete; tests were designed to challenge durability, reliability and the prototype’s overall performance in line with market requirements. The prototype passed all tests, and once the license is granted, it will be ready for market. Production (January 2017) – We envisage the initial stage of production to take place in January, so that orders can be met.

8.2 - Challenge and Risks If the product license is delayed, the Company cannot begin to produce or trade.

As sufficient time has been granted for the allocation of the license, we anticipatethat this will not be problematical.

The electrical components the product uses pose a potential risk to theassembly-line workers. We therefore intend to train personnel in electrical safetyto minimise risk.

We have factored in to our production cost, sufficient funding to accommodateany unforeseen expenditure.

Whilst it is impossible to anticipate the precise number of orders we will receive,we have sufficient flexibility within the working team to produce enough units tomeet a moderate unexpected peak in sales.

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8.3 - Costs We had a budget of £100 for the creation of the prototype and testing. The costs were as below: Costs Price Labour £85 Prototype Materials £10.91 Testing (Batteries) £2 Total £97.91

The labour was based on the UK minimum wage of a 20 year old, working 16 hours over 2 days. The prototype materials were based on the unit cost of 1 board game, and the test costs included the batteries used to power the game. The total spend was £97.91.

8.4 - Intellectual Property We do not currently have any patents on Wobbly, however we will be seeking to obtain one during the first year of development and trade.

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9.0 - Corporate Social Responsibility Here at Wobbly, we understand the importance of sustainability and as a result we actively set out to make the world a better place through our vision of sustainable enterprise. This means that for us, we focus specifically on the three dimensions of the triple bottom line and ensure we implement strategies to cover all three areas. Firstly, in terms of economic sustainability, we keep our production local to the UK. This helps the country’s economy to grow because we contribute to job creation. We also minimise our imported materials and try to purchase wherever possible directly from EU countries. Not only does this save on import costs, but it also helps drive the European economy. From an environmental perspective, we are very concerned with ensuring our products do not harm the environment. Wobbly is made from materials and components which can be easily recycled. Put simply, our cardboard, batteries, and packaging can all be reused. Moreover, the socially responsible brand image that we convey, enables Wobbly to strengthen its relationships with stakeholders, most notably our customers. Indeed, as a result of Wobbly’s active engagement in corporate social responsibility, we envisage a positive impact on sales within the UK. Our socially responsible image promotes family fun and time for bonding through our unique creation. Our game encourages creative thinking in children, simple construction skills and friendly competition. Our plan for the future, entails a reinvestment of profits into the local community through the support of charities and youth programmes. Our vision of the future also includes investigating ways to further improve our product’s sustainability. This might include looking at new, more efficient ways of producing the game, as well as growing the business through sustainable and responsible methods which can benefit the local and wider community.

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10.0 - Financial Projections 10.1 - Sources and Uses of Fund Statement Previous projections in the business plan demonstrate we aim to invest £30,000. To acquire this figure we have investigated possible sources to assist this fund. Each member of the team has agreed to initially invest £5000 of personal savings. This initial funding will go towards purchasing materials to make the units sold in the first few months of trading. The remainder of the money will go towards renting office premises, labour of the production team, and the marketing of the product.

10.2 - Profitability Ratios These ratios assess a company’s ability to generate revenue and profits compared to relative investment amounts such as capital. The Return on Sales (ROS) measures the amount of profit made, compared to the sales revenue of the company. The calculated ROS for Wobbly in 2017 is projected to be 11.59%. This figure is relatively low, however climbs each year and is estimated to be 32.79% in 2019. This is a very healthy projection for return on sales This ratio indicates the gross profit as a percentage of the business’ sales. Gross profit (%) is on a high growth period between 2017 and 2019. The percentage for 2017 is 18.46% and the average over the 3 years is 38.91%. It is expected to increase to 59.61% by 2019.

10.3 - Financial Status Ratios The current ratio of Wobbly for 2017 is 1.20. This ratio is well below the recommended average of 1.85. This ratio tests the ability of a company to cover their short term liabilities with their short term assets. However we sit on a large inventory of stock and therefore should not worry too much about having a low ratio for the time being. This ratio is set to decrease ever slightly, however the figure is relatively stable. The debt ratio is also very stable with an average across the 3 years of 0.85 and the range between the numbers of 0.04.

Figure 10: Ratio Analysis

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BALANCE SHEETS Year 2019 2018 2017 2016ASSETSCurrent AssetsCash 200,847 162,235 138,533 30,000 Stock 23,703 46,158 41,168 -Debtors - - - -Total Current Assets 224,550 208,393 179,700 30,000 Fixed AssetsProperty - - - -Machinery 570 570 570 -Total Fixed Assets 570 570 570 -TOTAL ASSETS 225,120 208,963 180,270 -MEMBERS EQUITY & LIABILITIESMembers Equity (Shares & Reserves)Share Capital 30,000 30,000 30,000 30,000 Shareholders Funds 30,000 30,000 30,000 30,000 CRS DUE > 12 MONTHSLoan Capital - - - - Total LT Liabilities - - - - CURRENT LIABILITIESExpenses 195,120 178,393 150,270 -Overdraft - - - -Total Current Liabs 195,120 178,393 150,270 -TOTAL EQUITY & LIABILITIES 225,120 208,393 180,270 30,000

2019 2018 2017 2016Current Ratio 1.15 1.17 1.20 N/ADebt Ratio 0.87 0.85 0.83 N/ANet Income 65,849.90£ 27,045.90£ 12,576.30£ £- Total Capital 30,000.00£ 30,000.00£ 30,000.00£ 30,000.00£ Net Worth 30,000.00£ 30,000.00£ 30,000.00£ 30,000.00£

10.4 - Balance Sheet

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MONTHLY CASHFLOW FORECAST - YEAR 1 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Opening Balance £- 28,987.40£ 28,544.80£ 28,102.20£ 27,659.60£ 27,217.00£ 26,774.40£ 26,331.80£ 25,889.20£ 26,694.10£ 27,499.00£ 39,531.40£ Receipts Cash From Sales 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 7,485.00£ 7,485.00£ 18,712.50£ 24,950.00£ Cash From Debtors £- £- £- £- £- £- £- £- £- £- £- £- Sale Of Assets £- £- £- £- £- £- £- £- £- £- £- £- Capital 30,000.00£ £- £- £- £- £- £- £- £- £- £- £- Total Receipts 36,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 7,485.00£ 7,485.00£ 18,712.50£ 24,950.00£ Payments Suppliers 5,455.00£ 5,455.00£ 5,455.00£ 5,455.00£ 5,455.00£ 5,455.00£ 5,455.00£ 5,455.00£ 5,455.00£ 5,455.00£ 5,455.00£ 5,455.00£ Wages 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ Drawings £- £- £- £- £- £- £- £- £- £- £- £- Rent 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ Phone Line/Internet 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ Other 570.00£ £- £- £- £- £- £- £- £- £- £- £- Total Payments 7,250.10£ 6,680.10£ 6,680.10£ 6,680.10£ 6,680.10£ 6,680.10£ 6,680.10£ 6,680.10£ 6,680.10£ 6,680.10£ 6,680.10£ 6,680.10£ Closing Bank Balance 28,987.40£ 28,544.80£ 28,102.20£ 27,659.60£ 27,217.00£ 26,774.40£ 26,331.80£ 25,889.20£ 26,694.10£ 27,499.00£ 39,531.40£ 57,801.30£


Opening Balance 57,801.30£ 63,696.30£ 65,433.20£ 67,170.10£ 68,907.00£ 70,643.90£ 72,380.80£ 74,117.70£ 75,854.60£ 79,697.50£ 83,540.40£ 93,701.30£ Receipts Cash From Sales 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 11,227.50£ 11,227.50£ 22,455.00£ 27,445.00£ Cash from debtors £- £- £- £- £- £- £- £- £- £- £- £- Sale Of Assets £- £- £- £- £- £- £- £- £- £- £- £- Capital £- £- £- £- £- £- £- £- £- £- £- £- Total Receipts 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 11,227.50£ 11,227.50£ 22,455.00£ 27,445.00£ Payments Suppliers £- 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 4,909.50£ 4,909.50£ 9,819.00£ 12,001.00£ Wages £- 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ Drawings 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ Rent 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ Phone Line/Internet 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ Other £- £- £- £- £- £- £- £- £- £- £- £- Total Payments 1,590.00£ 5,748.10£ 5,748.10£ 5,748.10£ 5,748.10£ 5,748.10£ 5,748.10£ 5,748.10£ 7,384.60£ 7,384.60£ 12,294.10£ 14,476.10£ Closing Bank Balance 63,696.30£ 65,433.20£ 67,170.10£ 68,907.00£ 70,643.90£ 72,380.80£ 74,117.70£ 75,854.60£ 79,697.50£ 83,540.40£ 93,701.30£ 106,670.20£


Opening Balance 106,670.20£ 117,555.20£ 124,282.10£ 131,009.00£ 137,735.90£ 144,462.80£ 151,189.70£ 157,916.60£ 164,643.50£ 175,971.40£ 187,299.30£ 203,697.70£ Receipts Cash From Sales 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 18,712.50£ 18,712.50£ 28,692.50£ 34,930.00£ Cash From Debtors £- £- £- £- £- £- £- £- £- £- £- £- Sale Of Assets £- £- £- £- £- £- £- £- £- £- £- £- Capital £- £- £- £- £- £- £- £- £- £- £- £- Total Receipts 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 18,712.50£ 18,712.50£ 28,692.50£ 34,930.00£ Payments Suppliers £- 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 4,909.50£ 4,909.50£ 9,819.00£ 12,001.00£ Wages £- 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ Drawings 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ Rent 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ Phone Line/Internet 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ Other £- £- £- £- £- £- £- £- £- £- £- £- Total Payments 1,590.00£ 5,748.10£ 5,748.10£ 5,748.10£ 5,748.10£ 5,748.10£ 5,748.10£ 5,748.10£ 7,384.60£ 7,384.60£ 12,294.10£ 14,476.10£ Closing Bank Balance 117,555.20£ 124,282.10£ 131,009.00£ 137,735.90£ 144,462.80£ 151,189.70£ 157,916.60£ 164,643.50£ 175,971.40£ 187,299.30£ 203,697.70£ 224,151.60£

10.5 - Cash Flow

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P&L FORECAST - WOBBLY - YEAR1Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

SALES INCOME 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 7,485.00£ 7,485.00£ 18,712.50£ 24,950.00£ Cost of sales (variable cost)Units Produced 500 500 500 500 500 500 500 500 500 500 500 500Opening Stock (Per Unit) 500 250 500 750 1000 1250 1500 1750 2000 2200 2400 2150Closing Stock (Per Unit) 250 500 750 1000 1250 1500 1750 2000 2200 2400 2150 1650Units Sold 250 250 250 250 250 250 250 250 300 300 750 1000Purchases 2,727.50£ 2,727.50£ 2,727.50£ 2,727.50£ 2,727.50£ 2,727.50£ 2,727.50£ 2,727.50£ 3,273.00£ 3,273.00£ 8,182.50£ 10,910.00£ Total Direct Costs 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ GROSS PROFIT 1,137.50-£ 1,137.50-£ 1,137.50-£ 1,137.50-£ 1,137.50-£ 1,137.50-£ 1,137.50-£ 1,137.50-£ 110.00£ 110.00£ 11,337.50£ 17,575.00£ Overheads (operating cost)Rent (All Included) 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ Phone Line/Internet 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ Employee Costs (500/3x5.30) 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ Other Overheads -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ Drawings -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ Total Additional Costs 1,225.10-£ 1,225.10-£ 1,225.10-£ 1,225.10-£ 1,225.10-£ 1,225.10-£ 1,225.10-£ 1,225.10-£ 1,225.10-£ 1,225.10-£ 1,225.10-£ 1,225.10-£ NET PROFIT/LOSS 2,362.60-£ 2,362.60-£ 2,362.60-£ 2,362.60-£ 2,362.60-£ 2,362.60-£ 2,362.60-£ 2,362.60-£ 1,115.10-£ 1,115.10-£ 10,112.40£ 16,349.90£ Porfit Margin 2,362.60-£ 4,725.20-£ 7,087.80-£ 9,450.40-£ 11,813.00-£ 14,175.60-£ 16,538.20-£ 18,900.80-£ 20,015.90-£ 21,131.00-£ 11,018.60-£ 5,331.30£


SALES INCOME 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 11,227.50£ 11,227.50£ 22,455.00£ 27,445.00£ Cost of sales (variable cost)Units Produced 0 500 500 500 500 500 500 500 500 500 500 500Opening Stock (Per Unit) 1650 1350 1550 1750 1950 2150 2350 2550 2750 2800 2850 2450Closing Stock (Per Unit) 1350 1550 1750 1950 2150 2350 2550 2750 2800 2850 2450 1850Units Sold 300 300 300 300 300 300 300 300 450 450 900 1100Purchases 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 4,909.50£ 4,909.50£ 9,819.00£ 12,001.00£ Total Direct Costs -£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ GROSS PROFIT 7,485.00£ 110.00£ 110.00£ 110.00£ 110.00£ 110.00£ 110.00£ 110.00£ 3,852.50£ 3,852.50£ 15,080.00£ 20,070.00£ Overheads (operating cost)Rent (All Included) 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ Phone Line/Internet 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ Employee Costs (500/3x5.30) -£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ Other Overheads -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ Drawings 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ Total Additional Costs 1,590.00-£ 2,475.10-£ 2,475.10-£ 2,475.10-£ 2,475.10-£ 2,475.10-£ 2,475.10-£ 2,475.10-£ 2,475.10-£ 2,475.10-£ 2,475.10-£ 2,475.10-£ NET PROFIT/LOSS 5,895.00£ 2,365.10-£ 2,365.10-£ 2,365.10-£ 2,365.10-£ 2,365.10-£ 2,365.10-£ 2,365.10-£ 1,377.40£ 1,377.40£ 12,604.90£ 17,594.90£ Porfit Margin 5,895.00£ 3,529.90£ 1,164.80£ 1,200.30-£ 3,565.40-£ 5,930.50-£ 8,295.60-£ 10,660.70-£ 9,283.30-£ 7,905.90-£ 4,699.00£ 22,293.90£


SALES INCOME 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 18,712.50£ 18,712.50£ 28,692.50£ 34,930.00£ Cost of sales (variable cost)Units Produced 0 650 650 650 650 650 650 650 650 650 650 650Opening Stock (Per Unit) 1850 1350 1500 1650 1800 1950 2100 2250 2400 2300 2200 1700Closing Stock (Per Unit) 1350 1500 1650 1800 1950 2100 2250 2400 2300 2200 1700 950Units Sold 500 500 500 500 500 500 500 500 750 750 1150 1400Purchases 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 4,909.50£ 4,909.50£ 9,819.00£ 12,001.00£ Total Direct Costs -£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ GROSS PROFIT 12,475.00£ 5,100.00£ 5,100.00£ 5,100.00£ 5,100.00£ 5,100.00£ 5,100.00£ 5,100.00£ 11,337.50£ 11,337.50£ 21,317.50£ 27,555.00£ Overheads (operating cost)Rent (All Included) 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ Phone Line/Internet 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ Employee Costs (500/3x5.30) -£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ Other Overheads -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ Drawings 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ Total Additional Costs 1,590.00-£ 2,475.10-£ 2,475.10-£ 2,475.10-£ 2,475.10-£ 2,475.10-£ 2,475.10-£ 2,475.10-£ 2,475.10-£ 2,475.10-£ 2,475.10-£ 2,475.10-£ NET PROFIT/LOSS 10,885.00£ 2,624.90£ 2,624.90£ 2,624.90£ 2,624.90£ 2,624.90£ 2,624.90£ 2,624.90£ 8,862.40£ 8,862.40£ 18,842.40£ 25,079.90£ Porfit Margin 10,885.00£ 13,509.90£ 16,134.80£ 18,759.70£ 21,384.60£ 24,009.50£ 26,634.40£ 29,259.30£ 38,121.70£ 46,984.10£ 65,826.50£ 90,906.40£

10.6 - Profit and Loss

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10.7 - Conclusion

Wobbly seems to have a healthy start to the business world. The ratios show an increasing trend of rising financial ratios. ROS suggests that the company is efficient at generating a profit from the sales revenue, which means our overheads have been well thought out. Using the Gross Profit %, you can see that our profits are also increasing with the projected rise in sales. This means that due to economies of scale, Wobbly is benefiting from lower costing.

The financial status ratios, seem to suggest that the business is lower than the average current ratio. The low current ratio means that there is a great risk that the business may not be able to pay off short term debts because it does not have enough assets that it can quickly liquidate, however, with the business sitting on a large amount of stock, our assets are reasonably liquid provided the business is still making sales and hitting targets.

Overall, I would say that Wobbly is making a steady and healthy start however it is hard to judge the financial stability of a company in its first year of trading, and that there are still many risks faced by the company.

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11.0 - Milestones and Exit Planning 11.1 - Goals and Visions Our vision for the next decade is growing Wobbly to a market leader. This would be gaining market share, which would ensure that ‘Wobbly would be a 1st choice for family fun’. Goals: After 12 months our revenue must be greater than £100,000 After 3 years we aim to control 0.5% of the toys and games industry After 5 years we aim to triple the number of employees After 10 years we aim to control 2.5% of the toys and game industry11.2 - Strategies Our main strategy is Expansion. We aim to do this through adding new lines to our existing product catalogue. Some of our initial ideas include: Different coloured and shaped blocks Branded clothing merchandise Limited edition Wobbly board sets Wobbly on the go (Travel Edition) Wobbly application for iPhone and AndroidAnother expansion method would be increasing our target market by selling Wobbly overseas. This would also mean that our production capacity would have to increase, through employing more production workers in Manchester, and investing more money in larger scale printers. Although this may cost a lot of money, the potential revenue and profits earned from this move will be economically worth the cost in the long term. In aid of the main strategy, we will employ a promotion and support strategy, through investing and intensifying our marketing, with the hope of increasing our sales. Our ideas for this strategy include: Update TV advert Billboards and Bus stops In store ‘Wobbly’ experience Invest in R&D in order to develop trending modern products Update website with new interactive features

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11.3 - Milestones Event Specifics Date Completed Initial Finance Secured

Finance secured from personal savings.

February 2016 Prototype Completed and Tested

Wobbly board game fully built and passed all testing

March 2016

Production Employee Hired

Hire and train employee to help manufacture Wobbly

November 2016 Obtain Office Lease

Move materials in and be ready for production

December 2016 Obtain Product License

Have Wobbly approved and fully licensed

January 2017 First Product Produced and Shipped

Obtain materials and proceed with production before fulfilling the first order of Wobbly

January 2017

First Profits Calculated

Calculate the finances for the first month of trading

February 2017 Sell 1000 Units We aim to sell 1000 units by the end of

April April 2017

11.4 – Exit Planning Each of the initial team who invested and developed Wobbly have an equal stake in the business. Therefore an agreement must be made between the team, as a whole, as to the official exit plan for Wobbly. It is unclear for now as to what exact strategy we will use to exit the business. Some partners in the business may buy out the stakes in which other have in Wobbly. The company could be sold to an external businessman or company in return for a large sum. In this case, the sum would be equally shared based on shares in the business.

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Appendix

Appendix 1: Industry Size of Toys and Games Industry in the UK Source: www.euromonitor.co.uk

Appendix 2: Wire for Wobbly Production Source: http://www.amazon.co.uk/Tenflyer-Plated-Copper-Circuit-Jumper/dp/B00RYS2Q4E/ref=sr_1_1?s=diy&ie=UTF8&qid=1455278350&sr=1-1&keywords=circuit+cable

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Appendix 3: Coloured Bags for Wobbly Production Source: http://www.dhgate.com/product/wholesale-random-colour-microfiber-two-pull/372250198.html#s1-14-1b;searl|1033957736

Appendix 4: Motor for Wobbly Production Source: https://catalog.precisionmicrodrives.com/order-parts/product/304-101-4mm-vibration-motor-11mm-type

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Appendix 5: Cardboard for Wobbly Production Source: http://www.amazon.co.uk/dp/B00O2XN9EA?psc=1

Appendix 6: White Card for Wobbly Production Source: http://www.bakerross.co.uk/large-a2-white-card-1?gclid=CNGZlq-Ii8sCFYu6GwodlioFiA

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Appendix 7: Blocks for Wobbly Production Source: http://www.ebay.co.uk/itm/Wooden-Towering-Blocks-Tumbling-Tower-Tumblin-Towers-Mini-Jenga-Blocks-Wooden-/201349864872?hash=item2ee1631da8:g:4OIAAOSwv0tVVIg3

Appendix 8: Stamp for Wobbly Production Source: https://www.stamps4u.co.uk/trodat-id-protection-stamp?nfxsid=56cad8781c53c1456134264&gclid=CPiLu-yKi8sCFbEW0wodnR0Gyw

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Appendix 9: National Minimum Wage Source: https://www.gov.uk/minimum-wage-calculator-employers/y/current_payment/not_an_apprentice/20/30/140.0/718.2/0.0/no

Appendix 10: Battery Holder for Wobbly Production Source: http://www.rapidonline.com/electrical-power/trupower-bh-421-3p-2-x-aaa-pcb-battery-holder-18-2925?&gclid=cjez1o_fi8scfrvmgwodq3aiha

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Appendix 11: Ink Costs for Wobbly Production Source: http://www.imaging-expert.co.uk/New/The-estimated-running-costs-of-printers.html

Appendix 12: Epson 4880 Printer Source: http://www.athema.co.uk/epson-stylus-pro-4800-a2-colour-plotterprinter-c11c593001bc-refurbished-p-1312.html?gclid=CI7BuZHAncsCFQfnwgodFewFVg

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Appendix 13: Ashley Graham CV

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Appendix 14: Alexander Qualter CV

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Appendix 15: James Oakes CV

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Appendix 16: Rory Philbin CV

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Appendix 17: Jack Legge CV

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Appendix 18: Adam Thompson CV

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Appendix 19: Office Location in Manchester City Centre

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Figure 20: Wobbly Logo

Figure 21: Wobbly Colour Logo

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References Amazon.co.uk, (2016). Cardboard Sheet (single wall) 250 x 300mm (packed in 20): Amazon.co.uk: Kitchen & Home. [online] Available at: http://www.amazon.co.uk/dp/B00O2XN9EA?psc=1 [Accessed 15 Feb. 2016]. Amazon.co.uk, (2016). [online] Available at: http://www.amazon.co.uk/Tenflyer-Plated-Copper-Circuit- [Accessed 12 Feb. 2016]. Athema.co.uk, (2016). [online] Available at: http://www.athema.co.uk/epson-stylus-pro-4800-a2-colour-plotterprinter-c11c593001bc- [Accessed 12 Feb. 2016]. Bakerross.co.uk, (2016). Large A2 White Card. [online] Available at: http://www.bakerross.co.uk/large-a2-white-card-1?gclid=CNGZlq-Ii8sCFYu6GwodlioFiA [Accessed 14 Feb. 2016]. Catalog.precisionmicrodrives.com, (2016). [online] Available at: https://catalog.precisionmicrodrives.com/order-parts/product/304-101-4mm-vibration-motor- [Accessed 12 Feb. 2016]. Dhgate.com, (2016). [online] Available at: http://www.dhgate.com/product/wholesale-random-colour-microfiber-two- [Accessed 15 Feb. 2016]. Ebay.co.uk, (2016). Wooden Towering Blocks Tumbling Tower Tumblin Towers Mini | eBay. [online] Available at: http://www.ebay.co.uk/sch/sis.html?_nkw=Wooden+Towering+Blocks+Tumbling+Tower+Tumblin+Towers+Mini&_trksid=p2047675.m4100 [Accessed 11 Feb. 2016]. Euromonitor.co.uk, (2016). euromonitor.co.ukÂ -&nbspThis website is for sale!Â -&nbspeuromonitor Resources and Information.. [online] Available at: http://www.euromonitor.co.uk [Accessed 11 Feb. 2016]. GOV.uk [online] Available at: https://www.gov.uk/minimum-wage-calculator- [Accessed 10 Feb. 2016]. Imaging-expert.co.uk, (2016). The-estimated-running-costs-of-printers : Atmos Design, the digital imaging experts. [online] Available at: http://www.imaging-expert.co.uk/New/The-estimated-running-costs-of-printers.html [Accessed 12 Feb. 2016]. Mintel.com, (2016). Mintel: Global Market Research & Market Insight | Mintel.com. [online] Available at: http://www.mintel.com [Accessed 12 Feb. 2016].

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Ons.gov.uk, (2016). Families and Households- Office for National Statistics. [online] Available at: http://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/families/bulletins/familiesandhouseholds/2015-11-05 [Accessed 12 Feb. 2016]. Rapidonline.com, (2016). Electrical & Power | Rapid Online. [online] Available at: http://www.rapidonline.com/Electrical-Power [Accessed 13 Feb. 2016]. Retailowner.com, (2016). Retail Owners InstituteÂ® > Benchmarks > Recreation, Leisure Activities Stores. [online] Available at: http://retailowner.com/Benchmarks/Recreation-Leisure-Activities-Stores/Hobby-Toy-and- [Accessed 12 Feb. 2016]. Royal Mail.com, (2016). [online] Available at: (http://www.royalmail.com/sites/default/files/Royal-Mail-Business-Price- Guide-30-March-2015.pdf [Accessed 14 Feb. 2016]. Smith, C. (2015). By the Numbers: 200+ Amazing Facebook Statistics (January 2015). [online] DMR. Available at: http://expandedramblings.com/index.php/by-the-numbers-17-amazing-facebook-stats/ [Accessed 2 Mar. 2016]. Stamps4u.co.uk, (2016). [online] Available at: https://www.stamps4u.co.uk/trodat-id-protection- [Accessed 12 Feb. 2016]. The Board Game Family, (2016). The Board Game Family. [online] Available at: http://www.theboardgamefamily.com [Accessed 15 Feb. 2016]. U.S. Department of Commerce Industry Report. (2010)

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Enterprise in Action: Group Business plan

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Transcript of Enterprise in Action: Group Business plan