Final Business Plan

pic University of Technology Jamaica Entrepreneurial Skills tune devise Business Idea federal agency iron heel Group B. Eng. 2M (ca) Date April 11, 2007Group members Lecturer Mr. Clive GrossettDexroy J mavens Dwayne McIntoch Mckay Kirkpatrick Binns Calford Ramsay Keon Hinds (3M art) purpose maker Summary ________________________________________ Introduction Swiff Electronics is a start-up cellular teleph unitary phone gear and electronic distribution beau monde. Its st targetgy is to issue in alone cell phone users who wear continuous dead shelling while engaging in an most-valuable call or entertaining entertainment plectron.It allow for capitalize on the intricate engineering trope and manu occurrenceured harvesting that is capable of electric charge a cell phone. there be many untapped effectiveness securities industrys within this industry, as the desire for high-quality stylish goods that be convenient, affordable, and easily sourced be in great pau perism. It is the firms intention to import intersection points from the leaders of electronic, Teqtronics and introduce it to a target population within Jamaicas Metropolitan or corporate ara and to make Swiff Electronic a place hold put up customer come to know and trust.To do this the smart sets long-term goals are to come across a 20% market share in the Jamaicas build up brand image and brand equity through marketing, achieve a sustainable 55% make headway margin, and eventually produce our very(prenominal) protest luxury ware in addition to the initial, moderately-priced line. The company Swiff Electronic is a hold liability corporation in which the sourcing of the ware offered mend bespeak is make internationally while the marketing and sales are focussed in and around the corporate areas of Kingston Jamaica, for short term purposes.possession is divided among five principal individuals who are putting up the initial investment. These include Dexroy Jone Managing Director, Keon Hinds head of Finance and administration, Calford Ramsay extend of merchandise and Human Resources, Dwayne McKay McIntoch Head of Product bring forthment and Kirkpatrick Binns Head of Operations. The First outlet of Swiff Electronics allow for be located at 13 Duke Street, Down Town Kingston, Jamaica. The present placement is more or less 700 square meters and should be large luxuriant for the get-go threesome years of the companys exploitation.The portable transmitrs volition be stored at the Duke Street situation and leave alone be dispatched to different location based on demand and agreement signed with our feature business partners. The harvest-tide The initial product line volition depict the full effect of the product that get out be offered, inclusive of a range of different colors and possibility the opportunity to personalize. The company plans to release more models, which entrust be corporate as we aim to give customs a wide selection to choose from.The pricing strategy sequel be to initially tenderloin our main competitors by selling at a minimal profit, utilise a market penetration strategy. Then, pricing allow for be ad practiced to be directly competitive with the opposite(a)wise major competitors. The price per smudge Charge is judge to be unbelievably affordable. The market Entry into the tele talk/electronics industry comes at a prosperous time. Over the past dickens years, the purchases of cell phone bring in plusd vastly and the trend is expected to continue once the cell phone manufactures continues to introduce new features to their designs.This will only adversely widen our market as individual continues to explore charge Where ever, when ever. One of the most definitive recent trends is that cell phone users are willing to spend higher amounts on their phones because of the elevate image appeal and reliability. Therefore, a company that can build a substantial brand im age in this industry gains a hearty competitive advantage. It is the aim of Swiff Electronics to capitalize on its high quality and commonsense price while pursuing the innovative styles necessary for brand building. monetaryThe companys start up costs will be $ . Owners equity will be provide $ , $ will populate of short-term borrowing, and the rest will be long-term loans. The majority of the start-up costs will consist of rent, seek and development, initial inventory, and a strong cash account. boot Statement ____________________________________ Swiff Electronics boot is simple and straightforward Purpose Swiff Electronics exists to provide a faster, more dependable source of forcefulness for all mobile phone users.Swiff Electronics sells solutions & results Vision By providing fast reply, in turned expertise, and consistently high quality solutions, Swiff Electronics aims to generate enough satisfied repeat customers to provide a invariable retainer base. This wi ll generates sufficient profit to provide a comfortable living for the owner. Mission The short term objective is to start this company quickly and inexpensively, with marginal debt. The long term objective is to grow the company into a stable and profitable entity that the owner can easily and comfortably manage. Marketing motto position Charge where ever, when ever Keys to Success The detects to success for Swiff Electronics are Marketing and Net acetifying (getting the name out there). Responsiveness (organism an on-call supplier paramedic with fast response time). quality (getting the job done salutary the first time, offering 99. 9% or greater guarantee). Relationships (developing loyal repeat customers retainers). Analysis of the business surround ____________________________________Jamaicas telecommunication sector is dominated by three major players, and a number of small entities that presently supply all the electronic accessories that Jamaicans my involve for there cell phone. It has been observed all the same that none of these companies provide the ease or accessibility of charging your phone where you wish, when you want, so the reason why Swiff Electronics has been developed. Over the past five years, the rate of failure of industries in Jamaica has remains relatively steady, and the implementation of new businesses and scheme has marginally increased.Swiff Electronics will be a new organization that is not yet established and has not yet developed its clientele. However the fact that the market for call phones keeps growing, as manufactures aim to convert a product that was once used only for communication, to a new revolutionized product that consist of attention grabbing entertainment. The need to keep the bruiseies of these fascinating gadgets charged Where ever, when ever has arisen, Thus giving Swiff Electrons the operation to be very profitable once the right marketing approach is taken.Presently there are trend that are been experienced in the industry which are classified as official or negative depending on the effects these trend live with on particular businesses. These trends include Positive *implementation of supererogatory features to the ordinary phones * trim back the size of the gadgets *Reduction in pricing causing more individuals to be able to afford a phone Negative *modification of batteries to have longer life *Developing unique charging outlet that would be problematic to sourceOver the past year the population of the marketing residential area has been generally stable based on results obtained form the Statistical bring in of Jamaica. The attitude of the community toward the business has been favorable as the results were seen in a feasibleness study that was done in and around the marketing community. explanation of product ____________________________________ The Spot Charge, as its name implies is a miniature device, very handy portable charger which is operated on a single AA battery and is able to power up any cell phone batter in minutes.Pretty compacted and stylish, the Spot charge is like a pipage and is small enough to be fitted anywhere. So be it anywhere in the world, you can charge up your phone battery anytime by just plugging one end of the Spot Charge adapter into the unit and the other into the cell your phone. Not only will it charge the battery, thanks to its design you can handle your cell phone while it is charging. There is a blue light at one end of the Spot charge that indicates when cell phones is being charge, and if the light goes out plain replace the battery.Spot Charge is ideal during power outages and when camping, hiking or sailing. It gives you the opportunity to make and gravel calls as soon as you plug it in. This device is able to power up a cell phone for two hour of gurgle time or 40 hours of standby time on one AA battery (included). It Trickle charges an average cell phone in 1 ? hours, and comes with a charging adapter that is compatible with Motorola (Motorola ROKR, Motorola RAZR) Audiovox Kyocera Samsung Nokia Sanyo Sony Ericsson LG cell phone even berry PDAs Spot Charge 3 long x ? diameter and squeeze less than 1 oz. Analysis of the opposition ____________________________________ Based on prior investigation and survey of the market, there were no companies or organizations supplying the product that we are introducing to this market area, Therefore when it comes to identical portable chargers like the Spot Charger there are no current competitors. There are tho products that provides that same services as the Spot Charge. These products includes car charger, house hold chargers, which are provided by the following companies. Cable and Wireless ? Digicel ? centennial Miphone ____________________________________________________________ ____________ ____________________________________________________________ _____________ Production selection Market share Product Qual ity Quality of service Amount of overtize and production price Workforce perturbation Workforce financial condition Level of debt Equipment Production capacity ____________________________________________________________ _____________ Pricing Strategies ____________________________________The pricing strategy that Swiff Electronics will be using is to initially gash our main competitors by selling our product with a small profit of 3%, using a market penetration strategy. Then later getting a share in the market, pricing will be adjusted to be directly competitive with our other major competitors. Swiff Electronics will in addition maximize sale by spreading the name of the company and products offered by taking part I seasonal sales that will comprise ? The use of coupons ? Bundle pricing This will be done to capture the attention of the public in the peak shopping seasons.For customers who purchase our product and require the product to be shipped to then, Swiff electronics will comply with these requests however the join price of the product will now include the additional cost for shipping. Credit Policy Swiff electronics credit policy will not be the symmetrical policies that we know exist in the business world. What we will be introducing is a policy called cash on delivery, what this hence means is that we deliver the goods and our customers will devote us on the spot.Considering the grade of product we are introducing to the market and that we have no real competition there is no doubt that this policy will work. No other product in Jamaica can do what the spot charge does. This is surely an advantage in the business that gives us the opportunity to do with our product whatever pleases. Competitive advantage There are no real competitors because Spot charge is new to the market but what we have are potential competitors. The advantages expected would be compared to businesses offering services that are not exactly like Swiff electronics.Th e quality, price, location and turnaround of the business will all be an advantage over potential competitors. The quality of the product is guerrilla to none and the price compares to that of the cost of items that would provide similar service (car charger, regular phone charger and so on ) but the advantage we have is that none of those items are portable and discrete as the spot charge. Market class The market segmentation is divided into the leading target markets. The division reflects the differences in marketing strategy that will be used to target distributively different market. The yuppies who enjoy being the first on their block to have a new, chic and hip product. The yuppies who follow trends and buy products that everyone else has. Older adults who simply use and depend on their cell phone for business or pleasure. Average college students who seeks convenience while indulging in entertainment. Technologically state senior citizens. The individual who engage in long distance trips who are plagued by dead battery. Market analysis Potential Customers Expected growth Approximate numbers 2% 10,000 New Yuppies 3% 20,000 Trend Yuppies 2% 10,000 Older Adults 5% 15,000 College Students 1% 2,000 Senior Citizen 3. % 5,000 other 16. 5% 47,000 tot up Description of Location ____________________________________ Based on results gathered from a feasibility study that was done regarding or product Spot Charge. majority of the individuals who would welcome Spot Charge a part of their daily habit resides outside the metropolitan area of raven town Kingston. A decision was agreed on by all executive members to locate the first business outlet of Swiff Electronics, within close proximity of the heart of down town Kingston. This would give us an advantage to bring Spot Charge closer to those who have a higher level in arouse in the product. A Survey of the down town area was in addition car ried out, to find out in which area Swiff Electronics would be more profitable. The result of that survey led us to source a shop stead that is located at 13 Duke Street.Duke Street is one of the most busiest streets, in the down town area that Is not only populated by commercial entities but also other small businesses that are doing exceptionally s hearty up, which is as a result of their location. With Swiff Electronics being a new put one across on the block and the only Electronic/cell phone accessory dealer, we are expecting to welcome a number of curious shopper as well as individuals who are knowledgeable about our product and services. Promotional Plan ____________________________________ The ultimate promotional goal of Swiff electronics is to To communication with the target group and bring out awareness and interest in the service Spot Charge has to offer. To increase the use of Spot Charge, hence eliminate the break in communication associated with dead cell phone batteries. To acquire an increase in revenue. To enhance name recognition There are many shipway to market the service offered by the product Spot Charge, however, the strategies listed below represent a few cost-effective ways to accomplish the marketing objective. Communication miscellanea In communicating with the target group, we will use a faction of communication channels such as advertising, publicity, promotions and personal selling. Because people need to hear a capacity many times from a vicissitude of sources, we will employ a combination of these with a variety of approaches. denote Strategy focusing & Implementation Funding Tasks Responsibility cartridge clip trunk Utilization of Monitors( big screen Identify what monitors are available in areas Ongoing TV) that are placed in prime areas frequented by grad coordinators Promotions Committee eg Libraries, supermarkets and Identify message content universities and schools and so forth Banner in campus cafes and other canvas possibility with cafes to pay Promotions Committee April June 2007 strategic locations what message (link with Free coffee promotion below) Television ads. Radio advertisement Develop appropriate ads emphasizing the Promotions Committee Ongoing benefits of owning a Spot Charge Publicity Strategy Management & Implementation Funding Tasks Responsibility Time Frame Donate time and funds to Identify charitable organizations and investigate Promotions Committee July 2007 charitable organization such aspossible ways of offering time and funding. Children stands and Juvenile Correctional centers Writing articles for the local pay back article with relevant information on the Promotions Committee July 2007 newspaper concerning luxurious benefits of Spot Charge entrance of Spot Charge Promotions Strategy Management & Implementation Funding Tasks Responsibility Time Frame Presentation of promotional Le tter text & printing/ Design brochures. Promotions Committee End of princely 2007 product, letter, and brochures look into associated cost. at well developed companies, Print brochures. Shopping centers and other frequently vi setd locations Incentive promotion with phone Investigate how it will work and ways to verify Promotions Committee September 2007 companies- get product at eligibility discounted price with the purchase of any phone. Web site web site of resources and information about Spot Promotions Committee September 2007 Charge and generic wine attributes Video message on web or email Investigate costs & how to do this Promotions Committee September 2007 Identify a key message we wish to use it to deliver. Management and personnel Swiff Electronics is currently not hiring any employees. The decision has been made to postpone hiring until the company begins to succeed. After approximately one year, there employees wil l be added to the current five. Organizational social organisation Swiff Electronics is split functionality, In that each division of the company is managed by one of the co-owner of the group. Management Team Dexroy Jones is the managing director, and founder of Swiff electronics. Jones was president of production at Swiss Army Watches before he decided to return to his native home land to start his own company. He graduated from the University of Technology Jamaica, and genuine an MBA at The Florida International University. Calford Ramsay head of Marketing and Human Resources division. He has worked and co-owned Wright and Ramsay, an advertising agency, for fifteen years. Ramsay received a BA and MBA from University of Technology Jamaica UTech. Dwayne McKay McIntoch Head of product development division. He was previously vice president of operations at Greentree Sports in Phoenix, AZ.He received his BA from Caribbean Maritime Institute Jamaica CMI and his MBA from UCLA. Keyo n Hinds Financial Controller and head of administration. He was previously financial controller of french Collection for United Kingdom FCUK for seven years. He has returned home to provide his knowledge and expertise in the building of Swiff Electronics. He received his BA at the University of Technology Jamaica and a MBA at Cambridge University. Kirkpatrick Binns Operation manager. Binns is the owner of fabled Manufactures and has worked as operation manager for six years at Docks producers in Marthas Vineyard. He has received a B. Sc. at the University of Technology Jamaica and a MBA at Texas A&M University. Management Team Gaps The following important gaps exist The present team has little sales experience. There is no current in-house designer this should be corrected within a year. There is no international manager. Personnel The personnel plan calls for adding three employees by the end of the first year for a total of eight. After the atomic number 42 year, employment is expected to increase by another four. These new employees will go into production and sales.Swiff Electronics aims to provide the finest services to its employees. In fulfilling this aim the company provides benefits for all full time employees which include ? Health plan ? animateness insurance ? pension plan The company also observes all public calendar holidays. For public holidays, salary paid employees will receive a day off, and hourly paid employee will receive double pay for the hours worked on these days. All employees are also entitled to three mould days per month however only full time employees will receive pay for these periods. Vacation time is available for all employees having being with the company for a minimum of one year.The following give distributor point has to how the time is allotted NUMBER VACATION OF YEARS TIME (working days) 1 5 2 4 14 4 and over 28 For employees who may experience a death in the family they will be eligible fo r additional days off. For death within the immediate family, employees will receive 4 working days off (spouse, children, parent etc. , and 2 working days off for other members of the family (cousin, uncle, aunt etc. ). The company will also present a floral presentment to the team member who has experience such tragedy. Swiff Electronics hiring policies are governed by ? surname VII of the Civil Rights spiels ? Age Discrimination Law ? The Americans with Disability Act ? The Family Leave Act As the company gives equal opportunity to all applicants irrespective of the colour of their skin, religious believe, age, nationality, disability and sexual orientation. Organizational chart pic Work Schedule pic Work period April 9, 2007 April 15, 2007 Approved by_________________________ Names compass point QUANTITY NEEDED PRICE FOR EACH TOTAL PRICE Desk 5 4080 20400 Chairs 8 3200 25600 Shelving 9 3700 33300 Lounge chairs 3 6900 20700 chalk up for furniture and fixtures hundred thousand Machinery / Equipment Computers 3 40000 120000 do for machinery and equipment 120000 Checklist for start-up cost Inventory 57,866,000 Furniture and fixtures 100,000 Machinery and equipment 120,000 postpaid expenses indemnification 150,000 Grand opening advertising 70,000 sanctioned fees 80,000 Accounting fees Employees wages 300,000 Other summation prepaid expenses 600,000 deposits lease 120,000 Utility Tax 994,500 other 50,000 resume deposits 1,299,500 Building and renovation If purchased Sales price Construction /renovation If leased Leasehold improvements Total location cost 0 Working capital Owners salary 500,000 Employees salary Employee taxes Rent advert Utilities Supplies Telephone Legal/accounting fees bestow payment Repairs/maintenance Auto/travel expenses inventory miscellaneous Total working capital 500,000 Total Start-up cost 60,350,500 Financing 1. What are your total start-up costs? $ 60,350,500 2. How practically will you invest from personal funds? $350,000 3. How untold will you obtain in other equity? 0 4. How much will you borrow? $60,000,000Bank loan$ 5,000,000 Borrowed for 5 years at 17% interest Finance companies $55,000,000 Borrowed for 7 years at 16. 45% Opening Day Balance Sheet Assets Current assets Cash (working capital)500,000 Supplies Prepaid expenses465,000 Inventory 57,866,000 Total current assets$ 58,831,000 Fixed assets Furniture/fixtures100,000 Machinery/equipment120,000 Renovations Total wintry assets 220,000 Total assets$ 59,051,000 Liabilities Current liabilities commodious term debt 60,000,000 Total current liabilities Long term liabilities Total long term$ 60,000,000 Total liabilities$ 60,000,000 Equity Total liabilities and equity Projected Income Statement Sales 72,332,500 cost of goods sold first gear inventory 0 + purchases 57,866,000 + freight 0 - ending inventory 0 = cost of goods sold 57,866,000 Gross margin 14,466,500 Expenses Employee wages 300,000 Legal 80,000 Advertising 95,000 Rent 120,000 Depreciation Supplies Utilities 5000 Telephone 3300 Interest Repairs Taxes 994,500 redress 150,000 Miscellaneous Total expenses 1,747,800 Net profit 12,718,700 Less income -3,179,675 Less self employed tax -890,309 Net profit after tax 8,648,716 Jan Feb Rent 120,000 Telephone 3,300 Legal 80,000 Insurance 150,000 Total 350,000 3,300 Determine breakeven Contribution margin Projected sales for first year$ 198,738,715 Gross margin$ 173,598,000 Contribution margin =. 87 infract even Total fixed expense4,200,000 Contribution margin0. 87 Break even point BE= 4,200,000/0. 87 = $4,827,586. 21 Legalities ____________________________________ Swiff Electronics is a partnership or limited liability company.The decision to choose this organization form is as a result of legalities that surround our organization. Being a limited liability organization gives us the opportunity to pull together the requisite funding as well as a profound and well grounding decision making team. Calfrod Ramsay the Marking manager is currently in discussion with the producers of our product, making agreement to be the main distributor of the Spot Charge within our marketing environment. With that agreement finalize no other company would have legal right to purchase or be a distributor for the manufacture of Spot Charge within this market. Insurance Requirements ____________________________________In ensuring the safety of our employees and property is . Swiff Suppliers ____________________________________ Swiff Electronics source all its products from Teqtronics Manufacturing located in China. Although there are not the only suppliers, Teqtronics has proven to be more consistent in their business agreements and the quality of the product they offer. They are also the only producers of the brand and type of Spot Charge that we will be marketing. The credit terms offered by Teqtronics are unbeatable and they give us the opportunity to choose the quantity of products we would like to order based on the demand of our customers. Uncontrollable risks ____________________________________There are a number of insubordinate risks that plagues new businesses that are now on the list of Swiff Electronics. These risks include ? inbred disasters Hurricanes Storms Flood etc. ? Rate of inflation ? Changes in technology ? Changes in consumer tasks and life style ? New competition ? The continuous decrease in value of our dollar vs. our counterparts Conclusion ____________________________________ pic Managing Director Dexroy Jones Financial Controller/ formation Keon Hinds Marketing and HR Manager Calford Ramsay Product Development Dwayne McKay McIntoch Marketing and sales TBA Operations manager Kirkpatrick Binns Administrative Assistant TBA Marketing an d Sales TBA