Office Experts Business Plan a.

8/2/2019 Office Experts Business Plan a.

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OFFICE EXPERTS

BUSINESS PLAN

MARCH 2012


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Office Experts Business Plan 2012

Contents

1. Business Description ............................................................................................................................. 4

2. Business Overview ................................................................................................................................ 4

2.1 Key Initiatives and Objectives ............................................................................................................ 4

2.2 Business Opportunity ....................................................................................................................... 4

2.3 Vision and Mission Statement ........................................................................................................... 5

2.4 Objectives ....................................................................................................................................... 5

2.5 S.W.O.T Analysis ............................................................................................................................. 5

3. Location and Facilities ........................................................................................................................... 6

4. Ownership and Management ............................................................................................................... 6

4.1 Organisational Structure ................................................................................................................... 7

4.2 Staff Duties and responsibilities ......................................................................................................... 84.3 Staff Remuneration ........................................................................................................................ 10

5. Products and Services ......................................................................................................................... 11

5.1 Description of Products and Services ............................................................................................... 11

5.2 Key Features of the Products and Services ...................................................................................... 11

5.3 Procurement of Products and Services............................................................................................. 11

5.4 Future Products and Services ......................................................................................................... 13

5.5 Comparative Advantages in Procurement......................................................................................... 13

6. Market Research ................................................................................................................................. 13

7. Marketing Opportunities .................................................................................................................... 13

8. Competitive Advantages ..................................................................................................................... 13

9. Marketing Strategy ............................................................................................................................. 14

9.1 Target Markets ................................................................................................................................ 14

9.2 Analysis of Competitive Position ...................................................................................................... 14

9.3 Pricing Strategy ............................................................................................................................. 15

9.4 Market Segmentation ..................................................................................................................... 15

9.5 Promotion Strategy ........................................................................................................................ 16

10. Industry Outlook ............................................................................................................................. 17

11. Regulatory Issues ............................................................................................................................ 17

14 Risks ................................................................................................................................................ 17

14.1 Market Risks.................................................................................................................................. 17


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14.2 Other Risks ................................................................................................................................... 18

15 Implementation Plan ......................................................................... Error! Bookmark not defined.

15.1 Implementation Activities and Dates.................................................... Error! Bookmark not defined.

16 Financial Plan .................................................................................................................................. 18

17 Conclusion ....................................................................................................................................... 18


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1. Business DescriptionOffice Experts will be an office furniture retailing business located in Windhoek, the capital city of Namibia, .

The company will specialize in bottom to top of the range office furniture that will suit customer specific

needs for office furniture.

The proposed products design and style will be unique in that it will rely on carefully selected suppliers that

provide unique products. Office Experts will offer superior product quality and design at competitive prices.

Our affordable designs will be a modern version of popular office furniture, scaled down in size to fit into

today's offices.

Office Experts products will be available in a variety of resilient finishes and colors so that customers have

the flexibility to customize their choice of office furniture to their individual or organizational tastes. We will

emphasize on superior quality furniture in a variety of popular faux antique finishes.

While we currently intend on focusing on office furniture, our product line will be expanded to includebookcases, wall units, buffets, hutches and cabinets for a professional outlook. It is our ultimate objective to

continuously expand and develop our existing product lines and add new product lines such as bedroom

furniture, and household furniture within 3 years of establishing a reputable corporate image.

2. Business Overview2.1 Key Initiatives and Objectives

Our primary objective is to purchase the initial inventory and to finance the working capital. The initial

inventory order will enable the business to set foot regarding its reliability and penciling its corporate brand

in the Namibia corporate world. In order to do this we have found it necessary that we seek financial

leverage through a bank loan.

2.2 Business OpportunityOffice Experts founded in 2011 by Margret von Luttichou and Barry Birch, is an office furniture retailing

company located in Windhoek, Namibia. The company was formed in order to retail office furniture thatmeets the demands of the low income to upper income end of the office furniture potential and actual

clientele.

Preliminary research indicated that there are very few companies that specialize in office furniture retail and

hence the market can still accommodate more players. It is the objective of office experts to tap into this

vacuum and create a niche market, focusing on bottom to top of the range office furniture.


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2.3 Vision and Mission StatementOffice Experts is a vibrant and innovative office furniture retailing company. It will offer our customers

superior quality furniture and unique designs at affordable prices. We will continue to expand our product

lines and introduce new designs, based on the needs of our customers.

2.4 ObjectivesOur primary objectives over the next year will be to:

1. Increase sales by 27% during the next 12 months by increasing retail distribution of our new product

lines.

2. Expand our product lines to meet customer demand. We will introduce three new types of products

including cabinets for entertainment centers, wall units and bookcases.

3. Expand distribution of our product lines within Namibia. Our product will be sold throughout Namibia andwhere regional demand is significant we will utilize agents or where feasible establish new branches. Our

intention is to increase the clientele base by 25% annually.

2.5 S.W.O.T AnalysisOur evaluation of the business environment is as follows;

Strengths

The Office Experts management team and thekey members have been in the industry indifferent capacities and have innovative ideas toturn around the performance of the Golden Fruitbrand.

The management team has intimate knowledge ofthe Namibian market.

Office Experts has a vastly enriched humancapital base to ensure success of the company.

Weaknesses

Office Experts will be starting off withone retail shop in the Capital city.

Office Experts will enter the marketwith the least market share in theindustry.

Office Experts will require loanfinancing or investors for it to financeits working capital needs.


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3. Location and FacilitiesThe Office Experts retail offices will be located in the city centre at shop 5 Gutenberg Street,Erastus

Shapumba Tower. The shop is approximately 117 square meters and is leased for $1xxxxxxxxxx. There

will also be a warehouse of size 200 square meters that will be located at xxxxxxxxxxxxxxxxxxxx.

The location of the offices and the warehouse was carefully selected to reduce overheads and distribution

costs. The location of the offices also offers an opportunity for potential and actual customers to constantly

view the furniture on display, our location affords an opportunity for them to interact with the business.The

close proximity to our customers means lower marketing, and transportation costs, additionally our

distribution costs will be at a minimum possible.

4. Ownership and ManagementOffice Experts is incorporated under the laws of Namibia and is owned and operated by two partners,Margret von Luttichou and xxxxxxxx. Both partners have extensive experience in business management

and the furniture industry. They will both be equally involved in its operations and management

For the past 50 years, xxxxxxxxxxxxxx's family has owned a large upholstered furniture manufacturing plant

in London, Ontario. Mr. Birch trained and worked at the company for 15 years. He also worked for a

reputable furniture retailing company in the capital city. His experience and knowledge of the industry will

Opportunities

The furniture market has a few establishedcompanies competing in the market and OfficeExperts can take high percentage market share if

introduced in market.

Despite most brands having an advantage of earlyestablishment no specific product has a highnumber of distribution sites; it has not translatedthis into market share leadership. Thereforemarket share is not driven by quantity ofdistribution sites only but by brand quality.

Threats

The niche locations attract interestfrom all competitors such that it maybecome unprofitable due tooversaturation of the market.

Amendment of laws to protect thelocal industry.


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be instrumental in growing the business. He also worked for 5 years at a large national furniture retail chain

as a purchaser.

On the other hand Margret von Luttichou is an enterprising entrepreneur who owns., She also has

experience in ..

4.1 Organisational StructureThe owners will manage the company and share all managerial, administrative, and marketing functions.

The company will initially commence with five full time employees. The furniture industry is very cyclical, so

staffing levels will fluctuate continuously however the directors will evaluate to determine if there are any

additional human resources needs. Part time employees who may be engaged will be promoted to full time

as sales increase.

Office Experts Organogram

Board of Directors

General Manager

Warehouse

Supervisor

Warehouse

Attendant

Sales and

Marketing

OfficersX2

Driver

Finance and

Administration

Manager


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4.2 Staff Duties and responsibilitiesThe General Manager will be responsible for:

Position General Manager(Identified and available on a months notice)

The General Manager will be the most senior executive manager; he will report to the Board of Directors.

The GM will be responsible for the overall management of the company, including the staff, the customers,

the budget, the company's assets and all other company resources to make the best use of them and

increase the company's profitability. It is expected that the GM will spearhead the development of a robust

operational strategy and provide support to the Sales and Marketing Officers. The GM will assume a

leadership role for Office Experts, and will ensure that the workforce is fully motivated.

The GM will report to the Board of Directors on at least a quarterly basis to keep them informed of how

Office Experts is operating. The Board will offer suggestions and ideas about how to improve the company

to the GM. It will be the GM's responsibility to implement and improve upon these ideas.

Key Responsibilities Decision making and supervision of department heads; Financial sourcing; Motivating staff; Business development; Negotiate supply contracts with selected suppliers;

Position Finance and Administration Manager

(Identified and available on a months notice)The Financial Managers role will be to create value from the firm's capital budgeting, financing, and net

working-capital activities. The Finance and Administration Manager will oversee the preparation of financial

reports, execute cash management strategies (inflow and outflow of funds), and direct Office Experts

investment strategies.

The Finance and Administration Manager will be expected to demonstrate leadership in cost-effective uses

of the corporation's financial resources by utilizing effective financial management practices. In this way the

Finance and Administration Manager, will be responsible for maximizing the shareholder value.

Key Responsibilities Production of financial and management accounts; Advising the directors on corporate governance issues; Cash flow management; Negotiating with suppliers for best discount rates; Creditors and debtors management;
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Ensure periodic and random stock counts are conducted; and Ensure the company complies with all financial legal requirements;

Position Sales and Marketing Officers(Identified and available on a months notice)The Sales and Marketing Officer will be responsible for entrenching the corporate brand and image in the

market. Marketing methods should result in maximum volume sales in a manner that does not violate

business ethics, standard policies and procedures of the company, and legislation binding the industry. It

will be the responsibility of the Sales and Marketing Officers to ensure that the company and the distribution

to customers operates in the most efficient and effective manner.

At commencement the Managing Director will double up as the Marketing Executive to ensure all strategic

target customers fully appreciate the value in our products and service.

Key Responsibilities

Marketing the organization and products of Office Experts; Ensure existing customers are constantly appraised of new products; Develop the business and the market by searching for new customers; Ensuring products are strategically and conveniently displayed on the shop floor; and Ensure product prices are displayed all the time.

Position Warehouse Supervisor

(Identified and available on a months notice)Receives and inspects all incoming materials and reconciles with purchase orders; processes and

distributes documentation with purchase orders; reports, documents and tracks damages and

discrepancies on orders received.

Receives and stores documents and confidential files; maintains record of approved document and

confidential file destruction. Maintains the warehouse, records area and stores area in a neat and orderly

manner.

Key Responsibilities

Determine the inventory holding levels; Determine the economic order quantities to be held; Ensuring that the warehouse is kept clean at all times; Liase with the sales department and ensuring orders are timeously delivered; and Conduct periodic and random stock counts.


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Position Warehouse Attendant(Identified and available on a months notice)

Assisting the Warehouse Supervisor in executing his/her duties and responsibilities.

Key Responsibilities Assist the warehouse supervisor in coordinating deliveries from the warehouse; Assist in carrying out inventory stock counts; Assist In moving products from the warehouse to the truck and vice-versa; and Maintain the warehouse in a clean and orderly condition.

Position Driver(Can be available immediately)The Driver will be responsible for the transportation of products to and from the warehouse.

Key Responsibilities Ensure products are timeously delivered to customers; Provide the customer with delivery note which the customer should sign to acknowledge receipt of

goods in good order; Ensure the delivery truck is maintained in good order, clean and reflective of the organizational

image; and

Report all problems on check-in/out sheet and work order form.

4.3 Staff RemunerationThe following is a summary of the proposed salaries for the staff of Office Experts;

Position Monthly Salary Annual

General Manager 10,000 120,000

Finance and Administration Manager 9,000 108,000

Sales Officers 7,000 84,000

Warehouse Supervisor 7,000 84,000

Warehouse Attendant 5,000 60,000


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Driver 4,000 48,000

Total cost 42,000 504,000

5. Products and Services5.1 Description of Products and Services

Office Experts will procure furniture including office desks, bookcases, cabinets, office shelves. We will

expand product lines to include household furniture in order to complete our lines of unique dining room

and living room furniture.

The furniture will be available in various different durable finishes and stains. The consumers will have the

option to have their office furniture customized with their preferred finish or simply selecting the regular

products that will be displayed on the shop floor.

5.2 Key Features of the Products and ServicesThe design and style of our proposed product lines will be unique. We offer superior quality and design at

competitive prices. Our affordable designs will be modern version of popular antique pine furniture, scaled

down in size to fit into today's offices, apartments, and condominiums. All of our products will be available

in a variety of resilient finishes and colors so that customers have the flexibility to customize the furniture to

their individual tastes. All of our furniture will made from superior quality hardware in a variety of popular

faux antique finishes.

5.3 Procurement of Products and ServicesOur company will seriously consider the buying criteria of the consumers. Consumer demand will determine

the style, design, perceived value, quality, and price of the furniture.The reputation of the manufacturer

from where we buy the furniture, will significantly determine our selected product suppliers.

We will procure products that we feel will best meet the price, quality and design needs of our actual and

potential customers. The turn-around time of deliveries once an order has been is estimated to be not more

than 10 working days. Due to the considerably high inventory holding costs, approximately 60% of our

display products will be provided by the product suppliers.

It is also our strategic objective to maximize profits by taking advantage of discounts offered by our

selected product suppliers. The following is a list of some of the product suppliers who have agreed to

provide Office Experts with either display products or supplies at discounted rates.

Chair Express General Cabinet Pro-trade Namibia


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Touchwood Furniture City Office Specialised Filing Sterling Furniture


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5.4 Future Products and ServicesWe will continue to expand and develop our product lines and add new product lines such as bedroom

furniture. Our products design will continue evolve based on consumer trends and demand. We intend to

obtain feedback from our customers and attend furniture trade shows to determine what furniture trends are

popular. Based on this information and local demand, it is our goal to design and introduce 2 to 3 newproducts per year.

5.5 Comparative Advantages in ProcurementOffice experts will utilize a flexible ordering system that enables us to shorten our order to delivery times

effectively fill small orders. Our employees will be highly skilled craftsman with extensive experience in

wooden furniture manufacturing. This experience, combined with short turnaround time resulting from

machinery, gives us a competitive advantage over other small furniture retailers in the country.

6. Market ResearchTo analyze the market potential of office furniture products in Namibia we collected information from a

number of sources. We talked to small wood furniture manufacturers located throughout the country to get

their perceptions of the trends and potential of the wood furniture industry in Namibia. We also visited a

number of small furniture retailers located in Windhoek to evaluate the types, styles, and quality of the

competitive furniture being sold. The retail owners/managers were able to provide us with information

regarding local consumer trends, level of demand and level of competition. To determine the potential mid-

term demand for office furniture in the country we collected statistical information from the Namibia

Planning Commission. Additional information was obtained from research reports, magazine and journal

articless, and newspaper clippings as well as information on the Internet.

7. Marketing OpportunitiesShort term demand for office furniture is driven by disposable income, interest rates, and employment

levels, while housing starts and income growth drive mid to long term demand. Windhoek and surrounding

communities will grow quickly due to the opening of a new plant. The Namibian Economic Development

statistics indicate that in the next 3 to 5 years macro economic growth will be on a steady increase. As a

result, the demand for furniture will remain strong. Currently, there will not enough furniture retailers and

manufacturers to satisfy demand and our company is in an excellent position to capitalize on this

opportunity.

8. Competitive AdvantagesWhile there are limited competitive office furniture retailers in Namibia our competitive advantages will

include our unique furniture design and quality, a competitive pricing strategy, strong market demand, and

a strategic location close to local and international suppliers, distributors, and consumers. Our competitive


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advantages include our customer sensitive marketing strategy which will enable us to cost effectively

shorten customer order and turn-around time.

9. Marketing StrategyOffice furniture is sold to consumers through retail outlets. Our company's promotional strategy targets bothpublicly owned enterprises and privately owned businesses. We will produce a catalogue featuring our

product lines and samples of our wood finishes that will distributed to targeted customers. Our sales team

will use the catalogues to show potential customers any products not displayed in our showroom and to

order additional product. A brochure has been developed on each product line that is distributed to

interested consumers. The product catalogue will show customers the actual products to be made available

amongst our product lines.

Our products will be priced competitively and take into account freighting where the suppliers will

international. It will be the focus of Office Experts to follow competitive pricing strategies while being

cognisant of consumer price sensitivity. The company's goal is to provide good quality furniture for areasonable price while still maintaining healthy profit margins.

9.1 Target MarketsOur primary target market includes companies, hospitals, government, and small to medium enterprises in

and around Windhoek. Secondary markets include independent retailers in other areas of the country. As

our company grows and sales volumes increase, larger furniture chains and department stores will be

targeted. Currently, our company does not have the capacity to service this market.

Our primary consumer target market is established companies buying new or replacing office furniture. Thissegment of the market is growing in Namibia with the opening of new businesses. The NPC has forecast

strong growth in population and housing starts. Unemployment rates will also forecast to decline which

should increase consumer confidence and the demand for furniture.

9.2 Analysis of Competitive PositionOur company's product line will have several competitive advantages over our competitors including unique

design and quality for a reasonable price. Our product lines will be flexible in that customers can choose

different finishes to satisfy their style and design preferences. While other office furniture retailers offer this

service, we will emphasise on our ability to negotiate for competitive prices and discount with our suppliers.While our product lines will competitively priced in comparison to other furniture lines offered through local

retail outlets, we offer superior quality in that we will not be utilizing the traditional office suppliers.

Currently, and in the near future there will not be enough furniture retailers and manufacturers in the area to

satisfy demand and our company is in an excellent position to capitalize on this opportunity.


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However, the furniture marketplace is highly competitive and furniture trends can change quickly.

Consumers buy furniture based on design, quality and price. Consumers have very individual tastes that

can change quickly. Office Experts management and staff have been in the business for a very long time

and intend to utilize their relations with the corporate world to tap into the niche markets that will not be

serviced by the established office furniture retailers.

9.3 Pricing StrategyOur strategy is to price our products at a level comparable to our competitors. Our strategy takes into

account production costs, competitive pricing strategies and consumer price sensitivity. The office furniture

market is very competitive and the price conscious consumer market is looking for good value. Our

company's goal is to provide good quality furniture for a reasonable price while still maintaining healthy

profit margins. While, our company does not offer volume discounts to retailers, we do offer credit terms of

30 days.

9.4 Market SegmentationThe growth of business and the provision of office furniture in Windhoek will be critical to the success of the

business. We will aggressively market our products to target customers who will include:

The Government of the Republic of Namibia ; State owned Enterprises; and Privately owned companies.


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Market Segmentation (%age)

9.5 Promotion StrategyOur company's promotional strategy will target companies, state owned enterprises, individual and non

profit organizations.

Direct Marketing

As the company grows, a marketing agent will be hired to promote our product lines to targeted customers.

The objective will be to obtain the views and opinions of targeted customers on their preferred products.

The marketing agent will be expected to identify any challenges that may hinder potential customers from

making new orders. This will also be an opportunity to evaluate our customers satisfaction in our products

and service.

Brochures

Brochures will be developed for products that we anticipate will be attractive to existing and potentialcustomers. The brochures will feature pictures of each product and highlight the unique design and qualityof our products. Office experts will use the catalogue to show potential customers any products notdisplayed in their showroom and to order additional product.

Internet-WebsiteIn the modern day of technology it is part of the strategic marketing plan to create an Office Experts websitethat will complement the physical brochures. The website will allow customers to explore products on

55

5

5

40 Government

Schools

Prisons

Private Institutions


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display and those that can be availed by Experts. The major advantage being that the customer caninteract with Office Experts from the comfort of their homes, offices or mobile phones.

10. Industry OutlookThe market outlook for office furniture in Namibia is positive. Demand growth is generated from a growing

business sector. While total domestic demand for office furniture in Namibia is projected to see minimalannual growth of 1% over the next several years, product opportunities exist. For example, domestic

demand for furniture is growing due to changing consumer purchasing trends. Consumers no longer view

furniture as a once-in-a-lifetime investment. As a result, the demand for contemporary designs is

increasing. Popular design and style trends include softer lighter wood tones, finer detailing, and faux aged

hardwwill.

11. Regulatory Issues

a)

In order to protect the business we have put a trademark on the name of our company, OfficeExperts.

b) The company will ensure compliance with all labour requirements and will uphold equal opportunityemployment principles. The main focus in our recruitment policy will be to empower previouslydisadvantaged groups.

14 Risks14.1 Market Risks

There are several factors that may affect the demand of our products. The Namibian office furnitureindustry may be indirectly affected by economic conditions. While the economy of Namibia is forecast to

grow and remain strong over the next three to five years, this could result in increased competition. Our

company will address these market risks by continuing to offer competitively priced products of superior

quality. Due to the affordability of our products demand is projected to increase as customers become

aware of the corporate brand. We will track changes in consumer trends by maintaining strong relationships

with our customers. Continuous research will be carried out to keep track of the needs of the consumer

market.

Small style changes will relatively inexpensive and easy to make. Small independent retailers could lose

market share to larger retailers and discount stores. It is important that our company use only reputable

well known small retailers to distribute our product. Increasing the availability of our furniture by affiliating

with retailers throughout the province should enable our company to achieve sales targets. Demand in the

furniture industry is highly cyclical. However, our flexible manufacturing system and the use of part time

labor allows us to cost effectively modify production as needed.


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14.2 Other RisksThe availability of labor could become a problem with the opening of the new plant. The expansion of our

product lines and increased sales volume will enable our company to promote our part time employees to

full time. Once we have 5 full time employees we will also be in a position to offer a more comprehensive

benefits package. Another risk would be the loss of a partner. The success of many companies is directly

linked to their management team. However, both partners at Pine of the Times will involved in all aspects of

company operations so the loss of one partner would not adversely affect the success or management of

the company.

15 Financial Plan

16 ConclusionThe business plan was developed in order to provide Office Experts and targeted investors with the basic

understanding of the capacity and potential of our team in the Namibian market.

The business plan will only serve as a guide towards coming up with a robust business strategy as dictated by the

market.

Office Experts Business Plan a.

Documents

Transcript of Office Experts Business Plan a.