Business Plan Summary
The Business Fig.3. Cross section of the cooker Management & ownership Sustainability plan Advertising & sales Profit and loss forecast
The Business
Business name: Next-Gen Technosave
Business structure: Sole trader
ABN: 86804 713 259
Business location: George Street, Sydney.
Date established: 1/11/2017
Business owner(s): – Your name
Relevant owner experience: 11 years in top management positions at Apple Inc and Walmart.
Products/services: Insulated solar electric cooker- Electri-Save Cooker
The Market
Target market:Australia and CEMEA
Marketing strategy:Penetration marketing strategy, internet marketing, social media marketing, and shopfront sales.
The Future
Vision statement:
To maximize profits and save the world in a bid to leave a sustainable world for the future generations.
Goals/objectives:
-Profit maximization. This will be achieved by careful cost management, minimizing and eliminating all unnecessary costs as well as maximizing sales.
-Expansion- Strategic identification of potential markets across the world and the subsequent entry.
The Finances
The business requires a total of $92,340 to cater for all start up costs as well as equipment and capital costs. As such, I will contribute to$50,000 to the total, seek $22,340 from friends and family, and obtain a loan for $20,000 at an interest rate of 10%p.a.
Business details
Products/services:
In the modern technology to offer a unique set of insulated solar electric cooker in a bid to capitalize on the needs for the various users of such equipment in the modern world to get gadgets with high efficiency as well as significant cost savings. As such, the primary product to be offered by the business upon the onset of its operations will be named “Electri-save cooker” due to its high energy saving capabilities as well as high operational efficiency as well as durability. In order to offer a compact sercive to the target market, the cooker will be offered in a complete set composed of two solar panels, an inverter, and the hot plate for cooking. Moreover, for the sake of exeptional customer needs, it will be possible for the clients to get the individual components independently on demand, and at affordable prices. The cooker will be offered in different capacities to cater for different markets and consumers, bearing in mind that the cooker specifications for commercial use will differ from those required by small-scale and domestic users. As such, the inverters will be designed differently with various DC-input channels to allow the connection of between two and twelve solar panels so as to satisfy the different energy needs of different users whose heating gadgets require upto 3000W. The diagram below demonstrates an example of the cooker system (uninsulated).
Fig. 1. Uninsulated solar electric cooker.
Simply put, the Insulated solar electric cooker named Elecri-save cooker will be made up of solar panel(s), power inverter, electric heater, and high-density insulation.
Fig.2. Electri-save cooker with some insulation removed to expose the internal cooking chamber.
Being a modern innovation that seeks to increase consumer utility alongside cost savings and environmental sustainability, the cooker can be offered in all local and international markets. However, the main demand for the electri-save cooker is expected to emanate from the developing nations, especially the emerging markets in Central & Eastern Europe, Middle East, and Africa (CEMEA region) as well as the local Australian market. High demand is, however, expected to come from the sub-Saharan regions of Africa which are characterized by long seasons sun and minimal rainy or winter seasons. The business will also leverage on such regions as Asia and the Eastern Europe who share similar characteristics with Subsaharan Africa to increase the sales of the cooker. More than often, the nations in the CEMEA region are characterized by limited or too expensive sources of power which are also harmful to human and animal lives as well as the environment. The WHO, for instance, claims that at least 3 billion individuals across the globe utilize biomass as well as coal in cooking, a factor which is blamed for 4 million deaths annually as a result of respiratory complications. Moreover, such fuels complicate the issue of indoor air pollution, deforestation, and environmental degradation. Such challenges have triggered the global environmental awareness which forms the basis for the innovation of electri-save cooker. Due to the affordability of solar panels across the world, as well as the elimination of the health concerns attributed to other sources of energy such as coal, and the increasing environmental concerns, the demand for the cooker is expected to rise constantly after the launch of the product.
Registration details
Business name: Next-Gen Technosave
Trading name(s): Next-Gen Technosave
Location(s) registered: Sydney
Business structure: Sole Trader
ABN: 86 804 713 259
ACN: N/A
Licences & permits: ABN, TFN.
Business premises
Business location:
Next-Gen Technosave has entered into an initial 50-year lease agreemnent with the owners of the Third Generation Towers situated along the George Street, Sydney, Australia, where it intends to conduct all its operations at the beginning. The street, which is approximately three kilometres long, is located at the central business district of the city characterized by heavy retail traffic, both local and international. Moreover, George street is a center of business activity in Sydney, hosting various among the most successful corporates in the country including Acacia Coal Limited, Accent Resources NL, and Abacus Property Group among others. Among the most identifiable landmarks around the prospective location of the business is the Sydney Harbor Bridge and the Railway Square. Due to the nature of the business, Next-Gen Technosave intends to occupy the entire ground, first, and second floors, all of which measure approximately 1,000 sq. ft. The smooth operations of the company, therefore, require administration offices, an open office for the customer service agents, a warehouse for the storage of materials and the finished products, ample parking space for the staff as well as visiting customers, and production workshops. Moreover, there is a mega plan to open offices as well as production sites, in the future, in other regions that will be identified in the future as viable and potential in terms of productivity and demand for the products. However, since the business will target the local and international markets, both retail and wholesale, the strategic location along the George Street will not only be ideal for retail selling but also a source of convenience due to the vast modes of transport and access to the port and the airports. Being a business founded on new technology, environmental conservation, and affordable products which are also durable, the business is expected to remain a step ahead of other retailers and wholesalers in the region.
Buy/lease:
According to the lease agreement offered by the management of the Third Generation Towers where the business will be located, the total annual fee for the required 1,000 sq. ft. will add up to $112,000 inclusive of all applicable taxes. According to the management of the building, the business is required to pay the total annual lease charge in three equal instalments, whereby the first instalment will be accompanied by a refundable insurance deposit of $15,000. It has also been agreed that the lease charges payablke from the second year up to the expiry of the lease will be payable in two instalments: by every 30th January and 30th July. The lease contract also mandates the business to conduct minimal or any type of internal modifications to the building as it may be agreed with the owners at any given time. According to the agreement, the building owners as well as government authorities are allowed to visit and inspect the premises and the operations therein at predetermined intervals. Annual maintenance costs for the business premises has also been agreed to be shared between the business and the owners until the expiry of the lease. On the other hand, the owners of the buildings have no right to terminate the lease agreement at their own discretion unless it has been proved by a court of law that the business has deliberately or accidentally breached the terms of the agreement. In the event of either party breaching the agreement terms, the other party will be entitled to revoke the agreement and sue the former for compensation of such a magnitude as may be determined by the court, but not below $200,000.
Organisation chart
Since the business is yet to begin its operations, it has entered into agreements with various individuals to take up various positions when the operations begin, possibly on 1st December 2017. As such, being a sole proprietorship, the business owner will assume the top position as a director ad CEO. In a bid to ensure smooth operations, I will be aided by an operations manager, Ms. Mary Adams, and a production manager, Mr.Harris John. Below the Managers will be three supervisors, Mary Wonder, John Smith, and Mitchel Johnson. While the first three supervisors will work hand in hand to oversee the production and distribution, Mitchel Johnson will be in charge of customer service. Below the supervisers will be production technicians and customer service executves. The HR and accounting functions will be outsourced from an external firm which the business is in the process of identifying.
Names of owners:
Next-gen Technosave is a sole proprietorship form of business, implying that it is solely owned by one person, Morgan McGregor.
Details of management & ownership:
Being a sole proprietorship form of business, I intend to take an active role in the business operations. As such, I will act as the CEO to the business, manning all the managers and supervisors to ensure that the organization delivers on its mandate as well as achieving its goals and objectives. Being a top management position, as the CEO, I will play a critical role in coordinating all activities in the organization with the assistance of my managers who work in direct contact with the junior staff. Moreover, I will work with externalparties such as government and regulatory authorities, locally and internationally, to ensure that the business meets all their requirements. In the position of the CEO, the success of the company will be in my hands, as well as the failure, and so I will work relentlessly to coordinate all managerial and operational roles discharged by others to ensure that we delover the organizational goals and objectives. Moreover, I will lead by example and allow for creativity on the part of the managers as well as other workers.
Experience:
The motivation to open up the business lies in my previous experiences at Apple Inc. where I served as a vice president to the chief operations manager, 6 years and at Walmart where I served as a senior operations manager, 5 years. I can attest to the fact that my previous tenures were successes for me and my employers in many ways. Firstand foremost, I gained sufficient negotiation and leadership skills which are critical for the success of any business. I experienced both the local and international markets as well as their various dynamisms. Moreover, I will rely on my negotiation skills to obtain the best deals with partners, locally and abroad. Internally, I appreciate the power of a highly motivated staff team. As such, I will capitalize on my leadership skills to coordinate my workforce to achieve the highest level of motivation, hence high productivity.
Key personnel
Required staff
Recruitment options
To acquire the best talent, I intent to work with an external HR firm to identify, select, and recruit the employees.
Training programs
I do not intend to train the prospective employees at the recruitment stage since I believe the job market will supply the right individuals with the right skills. On my part, I will pursue an executive diploma in Business management to fin tune my leadership and management skills.
Skill retention strategies
In every role assigned to an individual, all procedures will be clearly outlined in manuals and explained to the worker before taking up the role. All individuals will be assigned specific roles in the organization on which they must deliver. The individual responsibilities in the organization will be formulated ny the managers and supervisors and communicated to the staff at scheduled meetings accompanied by manuals or brochures for reference. The business will also adopt a continuous performance measurement system to constantly evaluate the employee skills.
Products/services
Market position:
The Electri-save cooker is best suited in the competitive market segments as well as the budget segments. As such, the product enjoys a competitive edge above the existing competitors due to its durability, affordability, and efficiency.
Unique selling position:
The cooker is a unique innovation offered at an affordable price. Moreover, the product is extremely affordable since it only consumes the solar energy which is free of charge. Its success will also be boosted by the numerous health benefits, reduced risks, and environmental conservation which arise from its use.
Anticipated demand:
Since the products are highly durable, the customers are expected to purchase an average of one or twocookers per year depending on their extent of use. The demand will however, be boosted by the wide market coverage.
Pricing strategy:
For the products to succeed, the business will rely on the price penetration strategy which will make our products more attractive and affordable than those of the competitors.
Value to customer:
The cookers are necessities to the customers since they require them to prepare their meals at all times.
Innovation
Research & development (R&D)/innovation activities
To maintain competitiveness, I will continuously invest in R&D to ensure the most efficient technology id introduced to the product. As such, I will allocate funds and staff as need may dictate ($20,000 p.a) to ensure success.
Intellectual property strategy
I will ensure that all my business’ innovations are patented to protect any infringement.
Insurance
Workers compensation:
The business will offer Work Insurance Cover for the life or any injury to the staff to a maximum of $1,000 p.a. Moreover, it will cover their medical bills to the tune of $500 p.a for outpatient and $1,000 for inpatient.
Business assets:
The business also intents to take insurance cover policies for all its property before beginning its operations.
Legal considerations
The business will operate in compliance to the consumer protection laws as well as the business laws both locally and abroad.
Production process
The business will be involved in assembling the insulated cooker only. The solar panels and the inverters will be outsourced.
Suppliers
The solar panels and inverters will be outsourced from Sol Distribution PTY.
Technology (Software):
The business wil require a management information system as well as an accounting software for the management of its oparations. The systems will be critical for information processing and storage. It will also need a website which will cost $5,000 p.a. The accounting and management information systems will cost $1,000 each.
Trading hours:
The business will strictly operate from Monday to Friday between 8:00 am and 4:30 pm. It will remain closed during public holidays and weekends. Our products are not season-driven, and therefore, the business does not expect peak trading hours.
Communication channels:
Our customers can always reach the business through the phone number (xxxxx) or email (BBBBB). They can also visit our premises during business hours.
Payment types accepted:
The business will strictly operate on non-cash payments for security reasons. Payments accepted include Visa, mastercard, EFT, RTGS, and Paypal.
Credit policy:
The business will strictly operate on cash sale terms.
Warranties & refunds:
Any faulty goods supplied to our customers will be returnable within 7 days and in accordance with our return policy.
Environmental/resource impacts
Our product as well as the manufacturing process will have minimal or no impacton the environment.
S.W.O.T. analysis
Advertising & promotional strategy
Sales & marketing objectives
The sales team is made up of highly skilled executives with excellent customer relations skills as well as onlime marketing agility.
Sales & distribution channels
The Future
Vision statement
To maximize profits and save the world in a bid to leave a sustainable world for the future generations.
Mission statement
To provide the world with the most economical and highly efficient technologies while maintaining organizational competitiveness.
Goals/objectives
-Profit maximization. This will be achieved by careful cost management, minimizing and eliminating all unnecessary costs as well as maximizing sales.
-Expansion- Strategic identification of potential markets across the world and the subsequent entry.
Action plan
Please note: This table does not include sustainability milestones as they are listed in the sustainability section above.
The Finances
Key objectives & financial review
Financial objectives
To minimize operational costs as much as possible while maximizing revenues.
Finance required
The business requires a total of $92,340 to cater for all start up costs as well as equipment and capital costs. As such, I will contribute to$50,000 to the total, seek $22,340 from friends and family, and obtain a loan for $20,000 at an interest rate of 10%p.a.
Start-up costs for [2017/18]
