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Creating a business plan

Creating a business plan

Creating a business plan is the most daunting task for both small and large business owner. Taking time and starting to draw a business plan is never easy for most entrepreneurs. However, there a factor of tips that cans the process much easy. Before starting the process, it is comparative to spend some time brainstorming, even before you put a pen o the business plan paper (Khatibi, 2002). Note down anything that occurs to the business environment. A business plan is a document that projects the roadmap of the business in the next 3-5 years ahead. It documents the road a business intends to employ to generate revenues.

Executive summary

As the name signifies, business plan executive summary contains all the information in the rest of the document. It is a snapshot of the business plan and documents the company key goals and profile. In a nutshell, an executive summary should be written last after all the other sections of the business plan have been covered.

Organization and management

Documentation of the best organization structure and management for the business indicate the key players in the management are outlined, together with their resumes.The business owner should use this section to certify to the investors that the team behind the management is indeed professionally competent for the assigned roles. However, it is considered unethical for the owner to lie about the management competency (Mirandola et al 2011).In case any position is vacant, indicate how the issue is going to be managed, for instance by outsourcing the functions of the lacking position holder, e.g. account docket.

Funding request

In case the business is seeking other sources of funds, indicate the potential firms or stakeholders to approach for the funds and document any necessary information about the funding process.

Company Description

Include the products of the business, the difference of the business from others and the market it intends to serve. This is the section that covers all the business idea behind the business plan inclusive of the legal formation of the business.

Service or product line

Indicate what the company sells, how it will benefit the customers, the product lifecycle and cover a brief story about the product or service for awareness purposes.

Financial projections

Suppose the business needs external financial support, provide a clear financial projections in this section. This is critical back up for the financial requests. Incorporate all the necessary information in the financial projections including the amount in possession and the amount needed to kick off the business. 

SWOT Analysis

This is an acronym for strengths, weaknesses, opportunities and threats. Compound on the SWOT of the business and indicate a structure to mitigate on each of them.

 

Market Analysis

Indicate the research strategies for the business industry, targeted market and the potential competitors in the market.

Marketing and sales

This section incorporates the marketing plans, sales strategies of the business. In a nutshell, indicate how the products will reach the consumers.

Supporting documentation

In this section, any relevant document to the company is supplied that might interest the readers of the plan. Include awards, certifications and perceived risk mitigation.

Appendix

This section is optional but it is useful to include any other information such as certificate of the business, that is, if the business operates in an environment that needs certification. Include the management resumes, permits and leases. 

Works cited

Ali, Khatibi. “How Companies Can Sustain Growth and Avoid Pitfalls Creating Knowledge.” Strategic Management Conference (2002 : Kuala Lumpur). (2002): 3. Print.

Development of a Product Model for Manufacturing Planning and Control in a Made-to-Order Business. Emerald Group Publishing Ltd. (Bingley, United Kingdom, n.d..Internet resource.

Mirandola, Carlos M. S. “Solving Global Financial Imbalances: A Plan for a World Financial Authority.” Northwestern Journal of International Law & Business. 31.3 (2011): 535-591. Print.

Mirandola, Carlos M. S. “Solving Global Financial Imbalances: A Plan for a World Financial Authority.” Northwestern Journal of International Law & Business. 31.3 (2011): 535-591. Print.

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Business plan Essay Writing

Idea one

Business plan for disposable coffee cups in United States

The coffee company is determined to supply the local coffee shops and resaturants that serve people who like coffee, a place to look forward to as you try to leave the daily life stressors, and a nice place to read your book or to meet your family or friends. With the great demand for great service and coffee of high quality, the company will capitalize on its location in the city centers to build a core group store partners. The company will offer the best disposable coffee cups to the city restaurants, hotels and coffee stores. This will be complimented with free delivery that makes the patrons to enjoy. The company will be a partnership of two investors (Collins & Lazier, 1992).

Location

The company will be located in the first floor of the commercial building in New York. The floor plan includes a 300 square feet of office and 2200 square feet of the operations are who also include the store and wash rooms. The premises have the necessary electricity and water will only require slight remodeling to accommodate the store and the kitchen

Target market

The target market for our products will be the local restaurants, coffee shops and hotels that serve coffee. Our company will serve them with the disposable cups for serving coffee for the customers who wish to carry coffee home. The business is friendly to the environment as the products are easily disposable and therefore will result to reduction of environmental pollution (Floyd, 2005). 

Products

The company will offer our clients the best coffee disposal cups. This will be achieved by sourcing aesthetic and unique designs, light and environmentally friendly raw materials, and products. The products will be aimed at making our clients attract many customers to their stores (Wickham, 2006).

 

Business idea 2

Ad agency

The advertising industry is facing a major downfall of late. The clients who used to turn to major advertising companies are now turning to the small and friendly specialized agencies in the cities. The proposed advertising agency will incorporate latest technological advancements in advertising like using the online platform that has not been embraced with the major advertisement brokers. This ad agency will be will be one person sole proprietorship business that will combine savvy marketing (Floyd, 2005).

Location

  • The business will be situated within the city centre although it will mostly be outdoor marketing and advertising for the brand
  • Networking within the community will be used to establish the business among potential clients
  • Ads will also be placed in different publications that cater different chosen fields
  • Direct mails will also be sent to companies with creative contents

Products

Given that the potential clients will rely solely on the provided ideas from the company, the business will come up with winning ads that will be placed in the media spots that are proper. Some of the products will be:

  • Writing ads for companies and other business on different industries
  • Placing online adverts
  • Graphic designing of ads (Wickham, 2006).

The target market

  • The potential clients for the business will be any organization or businesses that I will choose to go after
  • The business will start with small organizations or the companies that I have some acquaintances
  • Because the business will be situated within the city centre, I will start with businesses that are situated at the city centers such as the fast foods outlets, restaurants and boutiques (Collins & Lazier, 1992).

References

Collins, J. C., & Lazier, W. C. (1992). Beyond entrepreneurship: Turning your business into an                           enduring great company. Englewood Cliffs, NJ: Prentice Hall.

Floyd, S. W. (2005). Innovating strategy process. Malden, MA: BlackweLl Pub.

Timmons, J. A., & Spinelli, S. (2007). New venture creation: Entrepreneurship for the       21st century. Boston, Mass: McGraw-Hill/Irwin.

Wickham, P. A. (2006). Strategic entrepreneurship. Harlow, England: Financial Times Prentice  Hall.

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Business Plan of Coffee Lids

Table of contents

  1. Executive Summary……………………………………………………………3
  2. Objectives…………………………………………………………………………..3
  3. Key to Success……………………………………………………………………..3
  4. Mission………………………………………………………………………………4
  5. Company Summary…………………………………………………….……….4
  6. Company Ownership…………………………………………………..……….4
  7. Start-Up Summary……………………………………………………………….4
  8. The Company’s Facilities and Location……………………………………5
  9. Products……………………………………………………………………………….5
  10. Sales Literature……………………………………………………………………..6
  11. Summary of Market Analysis……………………………………………………..6
  12. Market Trends of Coffee in America……………………………………….6
  13. Coffee At Home………………………………………………………………………7
  14. The Instant Flavors…………………………………………………………………..7
  15. Projection of Coffee Market in America…………………………………….7
  16. Competition and Buying Patterns………………………………………………8
  17. Competition……………………………………………………………………………..8
  18. Buying Patterns……………………………………………………………………….8
  19. Management Team………………………………………………………………….8
  20. Personal Plan…………………………………………………………………………..9
  21. Financial Plan…………………………………………………………………………..9
  22. Important Assumptions………………………………………………………….10
  23. Projected Cash Flow…………………………………………………………………..11
  24. Projected Profit and Loss…………………………………………………………..13
  25. Projected Balance Sheet………………………………………………………………15

 

  1. Executive summary

The coffee company is determined to serve the local coffee shops that serve people who like coffee, a place to look forward to as you try to leave the daily life stressors, and a nice place to read your book or to meet your family or friends. With the great demand for great service and coffee of high quality, the company will capitalize on its location in the city centers to build a core group store partners. The company will offer the best coffee lids to its customers and it will be complimented with free delivery that makes the patrons to enjoy.

The owners of the company have secured the company building for a five –year lease with an extending option. They have also paid the $ 150, 000 of the required $180,000 startup money. The remaining balance will be settled through a loan from bank of America.

The projected sales for the company are $584,000 in financial year 1 to year three. The company will strive to maintain 60% gross profit margin in addition to manageable operating expenses. The company will also ensure net profits grow from $125,000 to $130,000 during the period.

  1. Objectives

The objectives of the company in the first year are:

  • Become the best coffee disposal lids company in the area
  • Plough in profits of  the fist operation month
  • Maintain 60% gross margin
  1. b) Keys to success

Attractive store design to the customers, and has efficient and fast operations

Employee training for the best coffee disposal lids designs

Marketing strategies geared to maximizing profits and creating a solid base of customers

 

  1. c) Mission

The company will strive to crest unique designs of coffee disposal lids which are environment friendly and simple to use by the clients. We will be the best business that creates beauty through its products. The company will invest back its profits for the customer’s satisfaction while giving stable returns to the owners.

  1. Company summary

The company sells disposal coffee lids to the coffee stores in company building located in New York City. The investors are “Tom and jack” who cumulatively own over 65% of the company. Furthermore, the company’s startup loss is assumed to be $25,600

  1. Company ownership

The company is registered as a limited liability company in New York. “Tom and jack” owns 65 % of the company. Other family member s of tom and jack hold minority stakes in the company.

  1. Star-up summary

The expenses of startup include:

  • Legal expenses for getting permits and licenses and accounting services totaling to $1200
  • Expenses for marketing promotions for the grand opening of the company is $3500 besides flyer printing  of total amount of $3600
  • Consultants fees of $2800 paid to espresso consultants to help I setting up of the company
  • Insurance (property casualty, workers compensation, and general liability) coverage totaling to $2500.
  • One month pre paid rent expenses of $4200
  • Remodeling of the premises in the amount of $ 9000
  • Other expenses for the startup including stationery ($600) utility deposits and phone ($2500).

The startup assets required of $ 143,000 include:

  • Operating capital of $67,000 which includes salaries of the owners and employees of $23,800 for the first two months and also cash reserves set for the first three operations months.
  • Startup inventory of $16,000.
  • Equipment for amount totaling  to $60,000

Two major sources are reliable for funding the company, the bank loans and owners investments, and the principal owners “tom and jack,” has contributed $100,000 and $50,000 respectively. The remaining $30,000 required covering the expenses of the assets and startup came from bank loans. A long term loan of five years of $20,000 and a one year loan of $10,000.all loans were gotten from bank of America. Therefore, the assumed total start up loss is $2,600.

  1. The company’s facilities and location

The company will be located in the first floor of the commercial building in New York. The floor plan includes a 300 square feet of office and 2200 square feet of the operations are who also include the store and wash rooms. The premises have the necessary electricity and water will only require slight remodeling to accommodate the store and the kitchen

  1. Products

The company will offer its customers the best coffee disposal lids. This will be achieved by sourcing aesthetic and unique designs, light and environmentally friendly raw materials, and products. The products will be aimed at making our clients attract many clients to their stores.

  1. Sales literature

Three thousand flyers will b e distrusted to the nearby neighborhoods, in the selected coffee store, restaurants and hotels two weeks before the grand opening of the company. Subsequently, some free postcards with the company’s endorsement will be printed and distribute to increase the visibility of the company in the neighborhoods.

  1. Summary of the Market analysis
  2. Market trends of coffee market in America

Coffee is one of the most consumed beverages globally and in United States. Coffee is a significant beverage in the daily life of the Americans that we can say that it assists American over forward. In fact, about 60% of the United States households either use at home ground or whole coffee beans. The coffee market is segmented into roasters, growers, and retailers. Nescafe is the most valuable brand of coffee globally while Maxwell and Folgers are the primary coffee brands in the local coffee segment. In 2012 flogs was estimated to be valued for US 852.4 million dollars.

For many years, the coffee chains have gained popularity among their customers. These retail markets were dominated by Dunkin brand Inc. and Starbucks Company with almost 50% of a combined market share in 2011.furthermore, latest statistics shows that about 22% of the American coffee consumers take one cup of coffee daily averagely. Similarly, the employed Americans of ages ranging from 18-34 years usually spend 24.74 dollars on coffee weekly.

  1. Coffee at home
  • The average household in U.S that uses ground and household coffee consumes an average of 4.2 cups daily. That amounts to 289.5 million of total coffee cups consumed at home daily
  • 89% of households stock regular coffee
  • 84% of the households use pre ground coffee and the other 26% of the households use whole bean coffee.
  1. The instant flavored coffee
  • 27% of households stock the intent coffee
  • 16% of households use it. The most coffee drinkers of instant flavor are Older Americans.
  1. Projection of coffee market in America

The volume of off trade sales are projected  at 1% for the forecast period, steadying at 760,830 tons by the year 2017.this is a representation of a conservative forecast grounded on a the single- serve  brewing changes in the market. Furthermore, with the expiration of the k-cup patent by Green mountains, economy brands, private label, premium players, and regional roasters could all have an impact on the growing terms in the whole category. This combined with on trade brands for the off trade brand consumption replication and the brewing convenience, will increase the volume of off trade sales of the fresh coffee pods. However, the projected growth will be affected by the other reductions in other categories, because of a shift in the manner people consumes coffee, rather than more consumers taking the coffee.

On the other hand, the international coffee organization on July 10th 2013 forecasted that the production and supply of the world coffee for the past one year was 7.8% higher compared to the other previous coffee years.

The company will strive to build many loyal customers by offering quality products.

e)     Competition and buying patterns

Competition

The company will face competition from other established companies that has contacts with the leading cogged stores like Starbucks and Café Roma statistics from the New York food services estimate that non alcoholic bars and snack shops made sales of $14.2 million in 2012.threfore; competition exists to the suppliers to these coffee outlets.

Buying patterns

The major reason for the stores to go for the disposable coffee lids is the uniqueness, quality, and ease of disposal of the lids. The company will price its products competitively. We believe that that selling of the lids with a great service will help us build a storing and a large base of loyal clientele.

  1. Management team

The company will hire a full time manager to oversee the running of the company. The company (name withheld due to his commitment to his current employment) has three years of experience in a managerial position in a New York industry. His responsibilities will include ordering inventory, managing staffs, developing marketing strategy, dealing with suppliers and other daily managerial duties.

The company will also will also still retain the services of espresso consultants. The consultants will primarily do market research, conduct surveys on customer satisfaction, and give additional input in the business evaluation.

 

  1. Personal plan

Year1 ($)

Year 2($)

Year 3($)

Manager

34000

36,000

40,000

Barristers

48,000

52,000

58,000

Employees

40,000

53,000

55,000

Total people

8

9

9

Total payroll

122,000

141,000

153,000

 6.      Financial plan

The company will capitalize on the high demand of coffee in the locality. The owners of the company provided sufficient capital for stat up. With professional management aimed at creating and growing a large base of customers, the company will double its net profit in a couple of years. The company intends to maintain a 60% of the gross margin, which when combined with operating expenses will give enough return to finance the company’s growth.

 a)     Important assumptions

Year1 (%)

Year 2 (%)

year3 (%)

Plan month

1

2

3

Current interest rate

9

9

9

Long term interest rates

9

   9

9

Tax rate

24.4

24

24.4

 b)    Projected cash flow

Proforma cash flow

Year 1($)

Year 2($)

Year 3($)

Cash received

Cash from operations

Cash sales

585,000

640,000

707,000

Subtotal cash from operations

585,000

640,000

707,000

Additional cash received

Sales tax, HST/GST received, VAT

0

0

0

Other new liabilities

0

0

0

New long term liabilities

0

0

0

Sales of other current assets

0

0

0

Sales of long term assets

0

0

0

New investment received

0

0

0

Subtotal cash received

585,000

640,000

707,000

Expenditures

Year 1($)

Year 2($)

Year 3 ($)

Expenditures from the operations

Cash spending

125,000

144,000

155,000

Bill payments

328,000

400,000

421,000

Subtotal spent on payments

452,000

533,000

576,000

Principal Repayment of the Current borrowing

3500

3500

3500

Long term liabilities Principal Payments

0

3600

4000

Purchase long term assets

0

2500

2500

Dividends

0

0

0

Subtotal cash spent

133,000

107,000

131,000

c)     Projected profit and loss

Profoma Profit and Loss

year1 ($)

Year 2($)

Year 3($)

Sales

585,000

643,000

707,000

Direct cost of sales

205,000

225,000

247,000

Total cost of sales

205,000

225,000

247,000

Gross margin

380,000

418,000

460,000

Gross margin percent

65%

65%

65%

Expenses

Payroll

125,000

144,000

155,000

Sales marketing and other expenses

26, 000

28,000

31,000

Depreciation

5500

5600

5500

Rent

48,000

53,000

53,000

Maintenance

6000

6500

7000

Phone/utilities

9000

9600

10,000

Payroll taxes

18,700

22,000

23,000

Total operating expenses

640,000

708,000

710,000

Profit before interest and taxes

131,000

157,000

162,000

         d)    projected balance sheet

Profoma balance sheet

Year1 ($)

Year 2($)

Year 3($)

Assets

Current assets

Cash

195,000

296,000

418,000

Inventory

21,000

23,000

26,000

Other current assets

0

0

0

Total current assets

217,000

320,000

443,000

Long term assets

Long term assets

59,000

61,000

63,000

Accumulated depreciation

5500

11,000

16,500

Total long term assets

54000

50,000

47,000

Total assets

270,000

370,000

490,000

Liabilities and capital

year1

year2

year3

Current liabilities

Account payable

32,000

32,000

35,000

Current borrowing

68000

35000

100

Other current liabilities

0

0

0

Subtotal current liabilities

39,000

35,000

35,000

Long term liabilities

21000

16500

12500

Total liabilities

58,700

52,000

47,000

Paid in capital

150,000

150,000

150,000

Retained earnings

27700

72,000

178,000

Earnings

99,000

107,000

125,000

Total capital

212,000

318,000

443,000

Total capital and liabilities

270,000

370,000

490,000

Net Worth

212,000

318,000

443,000

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EssayFreelanceWriters.Com writing service reviews

About

EssayFreelanceWriters.com provides online writing services to clients seeking assistance in academic writing. They are a team of professionals who offer custom essay writing services, plagiarism detection, and customer support. They have been in the industry for the past 10 years and some of the services they offer include thesis writing, assignments, coursework and writing essays among others.

Mission and core values

The mission of EssayFreelanceWriters.com is to provide writing services for students as well as people who needs content for their websites. They combine the best practices and high-quality standards for best customer support approach.

Their core values include customer satisfaction, quality, honesty, creativity, constant improvement, and teamwork. They have the capacity to offer immediate and exceptional services to their clients. They guarantee 100% originality in their work with no plagiarism. They also adhere to the customers’ requests and deadlines with no fail.

How it works

The clients are only supposed to SUBMIT OR POST their assignment details to the EssayFreelanceWriters.com company’s website. The support representatives then assign your order to the most qualified writer in that field. Their expert writers have vast experience in different fields and can work under pressure hence delivering work within a short deadline. They offer services in writing essays such as case studies, creative writing, literature reviews, presentation speech, admissions essay, annotated bibliography, article, movie and book review, business plan. They also specialize in reflective writing, reports, research papers and proposal, term papers, thesis/ dissertations and editing and proofreading.

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The features offered on their web site include providing a space for E- mails and SMS notifications. This is essential because the client stays informed on the order updates, new messages, and uploading files.

They also have the details of their writer’s profiles where clients can access the number of completed essays, their ratings, reviews, and rates of completion.

They also have a feature where clients can chat online with the writers. Clients can talk to the writers at any time, discussing the order in question as well as asking additional questions through their support representatives.

The company has a strict plagiarism policy where writers provide original content only. Their services are also affordable, and clients can also be given discounts in accordance with their discounts policy.

Their essay writing service pricing starts from $5 per page.

When placing an order, the client is supposed to submit the assignment details alongside the order. These include the topic, subject, number of pages, number of sources required, referencing style and the order deadline.

The support representatives then assign the posted work to their preferred and most qualified writer. The customer also can view the writer’s progress in price, ratings, writing completion and reviews.

When the work is completed, clients can download the orders from the company’s website. They pay for the service, rate the work and can post reviews about their experience on the company’s online page.

Statistics

Their statistics consist of 21906 completed orders with a 93% completion rate. Their customers’ rate is at 4.8/5.0, and an 87% customers return rate. Their pricing starts at $5 per page with an average of 6 pages per order.

Satisfaction

Most of the customers have expressed their satisfaction after using the service. Their comments range from “great writers”, “top notch work”, “excellent work finished on time” and “perfect grade and perfect paper”.  They offer a 50% discount on the first order and 20% on the subsequent orders placed by a client.

EssayFreelanceWriters.com assures their customers that they have varied competent writers who are all native English speakers. Their total writers are at 85% and a 94 % customer satisfaction. The percentage of native English writers is at 73 percent. They offer discounts for their services and the minimal price charged per page is $5. Moreover, they also have a comprehensive money back policy.

Negative Reviews from few customers

They offer 12% lower prices than their competitors which are more affordable to most students. However, some customers have complained that the company has a tendency of over promising and under delivering hence sending poorly written essays.

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They offer a 25 percent discount on the first order 5 percent on the succeeding orders which are below 30 pages. However, most clients have complained of getting incomplete orders and also an inability to meet the set deadlines.

The other disadvantage is that the writers seem not to follow the instructions set and so the clients will usually need; they require revisions. It’s usually irritating for the clients as they have to go through the work, editing and formatting the various grammatical errors which would have been taken care of by the writer.

Conclusion

In essence, EssayFreelanceWriters.com provides an average level of writing services with a score of 9.1/10. It would be advisable to get in touch with them when one needs assistance in basic essays and less technical work.

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