Address: Mirpur-10, Dhaka. www.allin1servicecenter.com Contact numbers: +880167616!!! "#e $lan is $re$aid b%& 1' (d' Asif) Sultanul Arefeen id:&11&18*&1 +' ,a#man) -#an (unsur&ur id:&0.&1*118&/ /' Noor&A&Alam id:&10&170**&+ MOHAMMAD MOSTOFA JAMAN Senior Lecturer Entrepreneurship Development Department of usiness A!ministration, A"# Su$%ect& Su$mission of usiness 'lan Dear Sir, (e have much pleasure to su$mit this $usiness plan entitle! )All in1 Service Center* which has $een prepare! in re+uirements of the ,inal E-amination in Entrepreneurship Development. "n this report we are tr. to !evelop $riefl. our $usiness plan. /his is a $usiness that is !escri$in0 in one sentence )All the home appliance repair service in a one store*. ,inall., we are trul. 0rateful to .ou for 0ivin0 us this pleasant opportunit. to work on this $usiness plan. Despite our all possi$le attempts, certain !eficiencies ma. resi!e an! we are sincerel. re0rettin0 this. Sincerel. .ours,
(d' Asif) Sultanul Arefeen id:&11&18*&1 ,a#man) -#an (unsur&ur id:&0.&1*118&/ Noor&A&Alam id:&10&170**&+ 1 "able of Contents: 1. Executive Summary Page #4 2. General Company Description Page #5 3. !e "pportunity# $n%ustry & 'ar(et Page #) 4. Strategy Page #* 5. +usiness 'o%el Page #, ). eam - 'anagement & "rganisation Page #. *. 'ar(eting Plan Page #11 ,. "perational Plan Page #15 .. /inancial Plan Page #1, 10. 1ppen%ix Page #23 2 1' 0!ecuti1e Summar% 3ome Appliance repair $usiness is a 0reat mone.makin0 opportunit. for mechanicall. incline! entrepreneurs. Air con!ition, 4efri0erator, (ashin0 machine, Micro oven an! are %ust a few of the home appliances that .ou will $e a$le to repair at rates as hi0h as 567 per pro!uct. /he purpose of this $usiness plan is to raise 170, 00,000 tk. for the !evelopment of an appliance repair service while showcasin0 the e-pecte! financials an! operations over the ne-t three .ears. All in 1 Service Center is a Dhaka $ase! compan. that will provi!e repairs of appliances an! sales of appliances to customers in its tar0ete! market. /he Compan. was foun!e! $. Sultanul Arefeen. All in 1 service center 0ive .ou the opportunit. to take all the home appliance repair service in a one store. 3ere we repair .our home appliances an! provi!e .ou hi0hest +ualit. services. "n our shop .ou foun! all t.pes of home appliances repair services. (e repair Computer, Laptop, Mo$ile 'hone, Camera, 8i!eo camera, /elevision 9LCD, LED : C4/;, Air con!ition, 4efri0erator, (ashin0 machine, Micro oven, 'rinter, ,A< Machine, 'hotocopier Machine, Scanner Machine an! 'ro%ector Machine. (e are not onl. provi!in0 .ou service $ut also 0ive a warrant. up to 1 .ear. (e are availa$le 1=-6 in our we$site an! >am to ?pm in our stores aroun! the !ifferent places in an0la!esh. (e nee! a well setup $i0 floor where all the home appliances have separate !epartment an! separate hi0hl. e-perience technician who provi!e their $est +ualit. service. . +' 2eneral Com$an% 3escri$tion = !e 2ame o3 t!e company is 4All in 1 Service Center*. "t is a 3ome Appliance repair compan.. "t is a sole proprietorship $usiness. /he name of owner is Sultanul Arefeen. /he $usiness is starte! with a =000 s+ fit showroom in Mirpur-10, Shah Ali Super Market. @ur initial capital is 1.7 cr. taka with fi-e! !eposit 7,000,000 /aka. 'ission statement All in 1 Service Center is committe! to provi!e +ualit. an! e-cellent service center that full fill .our service !eman!. "t is !e!icate! to nurture an! hi0h service that ensure the warrant. of the pro!uct. Goals an% o56ectives Make a stron0 position in the local market. Ensure the tension free service of .our pro!uct. 'rovi!e on time service. 'rovi!e .ou the worl! class service 'rovi!e all the home appliances repair service in a floor. Make a ran! "ma0e of the Compan.. Company strengt!s an% core competencies /he compan. stren0ths are stron0 human resource mana0ement. (e have $est +ualification an! e-perience technician team of each of the service. @ur core competencies are we not onl. provi!e .ou service on time $ut ensure a warrant. of .our pro!uct for future uses. Another core competence is make 0oo! commitment with our stock hol!ers. !e in%ustry (e make our $usiness in home appliances repair service center in!ustr.. "t is not a $i0 in!ustr. $ut it is an important in!ustr. in our countr.. Ever. .ear 700 cr. /aka is transaction was !one in this in!ustr.. Most of the raw material is collecte! from China. @ur compan. want to $e a lea!in0 position of this in!ustr.. /' "#e O$$ortunit%) 4ndustr% 5 (ar6et 7 !e "pportunity "n our countr. home appliances repair $usiness has a 0reat opportunit.. At now all the home appliances have a separate repair center or store. 3ere have a market 0ap. ecause there have no repair center or store where all the home appliances like computer, mo$ile phone, television, Air con!ition, 4efri0erator, (ashin0 machine, Micro oven an! man. more are repair or service in a sin0le floor or store. So where have a 0oo! opportunit. to esta$lish a store where all the home appliances are repair in a sin0le floor or store. !e $n%ustry /he main $arriers to entr. in this in!ustr. is 0eneral people are !epen! on their well known technician who are alrea!. !i! service their pro!uct. Most of the people are take that t.pe of service with well known technician or store. So that is the main $arrier to entr. in this in!ustr.. /he main customers of this in!ustr. is mi! level income customer an! as well as the hi0h level of the societ.. ecause the user of the home appliances is mainl. that two t.pes of customers. /he $ar0ainin0 power is availa$le in the market $ecause there have lots of small home service appliances repair store in all over the count.. ut like our $usiness that have none of them. @ur $usiness has stron0 $ackwar! supplies inte0ration. /hat makes us inspire to provi!e all t.pe of repair service in a sin0le store. @ur main competitors are lots of small home service appliances repair store in all over the count.. /he. are hi0hl. e-perience an! technical well known $ut their service is not +ualit. full like us. "t is a 0reat competitive a!vanta0e of our $usiness. /he ma%or chan0es affectin0 the in!ustr. are +uick chan0e of home appliances technolo0. in the competitive market. Sometimes ol! technolo0ies parts are not availa$le in the market $ecause the mother compan. was stoppin0 the pro!uction of that pro!uct. !e 'ar(et /he total siAe of the market is not as $i0 as compare to others pro!uct in our countr.. ut it is a 700 cr. market in our countr.. /he 0rowin0 rate of that market is not so fast, $ut it is not so slow. "t is an avera0e 0rowin0 market. @ur /ar0et is capture ma%or percenta0e share of the total market. /he ma%or tren!s in the tar0et market are consumer want a 0oo! +ualit. full service that makes himBher tension free in the future. Cow a !a. consumers are chan0e their ha$it. /he. want on stop service center. (e respect to consumers ha$it an! provi!e on stop service in our store. As an0la!esh is a !evelopin0 countr., so that !a. $. !a. people are more !epen!a$le on the electronic pro!uct. So !eman! of the repair service $usiness is increase rapi!l.. ' Strate7% ? /he compan. follows the niche marketin0 strate0.. /his is a servicin0 center where customers 0et service on !ifferent electronic !evice not onl. that, also !ifferent companies will $e serve! on their verities electronic !evice. So the tar0et customer will $e the entire market. /he servicin0 not onl. tar0ets the niche or a se0ment of market. "t serves $oth house hol! an! companies. /he servicin0 center serve the entire market $ecause there are all t.pes of servicin0 !epartment like mo$ile phone, air con!ition, /elevision, Camera, (ashin0 matchin0, 'rintin0 matchin0, Soun! s.stem, Computer, C'#, ,an, ,ri!0e an! so on. 'eople will 0et all kin! of electronic service from this servicin0 unit. Cow a !a.s we cannot live a sin0le moment without that !ifferent t.pe of electronic !evice. @verall in an0la!eshi are !epen!ent on electronic !evice. /hatDs wh. in an0la!esh is full of electronic !evice. 'eople face !ifferent t.pes of pro$lem re0ar!in0 their electrical !evice. An electronic !evice ma. face pro$lems an! then the. fin! servicin0 center $ut in an0la!esh there is not enou0h an! e-pert operators in servicin0 center. So when Customer will know a$out that center $esi!es the. will 0et $etter service from our center, the. will $e satisfie!. An! customer create $elieve in their min! a$out our servicin0 center. Like this if we are a$le to provi!e 0oo! service +ualit. then we will $e a$le to reach much of customer. /he #ni+ue a$out the usiness& ,irst time in an0la!esh. Latest servicin0 facilities for customer. Customer will 0et all electronic !evice servicin0 facilities in one place. Customer will 0et $etter service on their !evice. /o $rin0 !evice for receivin0 an! !eliver. customer will 0et transportation facilities. Customer will 0et !iscount facilities when the. will $e permanent. Customer will 0et a token when the. will 0ive us their !evice. (ell !ecorate! servicin0 center. /he value we are creatin0 for our customers is provi!in0 the $est +ualit. service in a reasona$le price with a specific time perio! !eliver.. /he offerin0 !ifferent from of our competitors is that we provi!e all t.pes of service in a sin0le floor or store an! we also 0ive a warrant. that makes .ou tension free in future use of .our pro!uct. 6 5. Business Model The sources of revenue: @ur sources of revenue are provi!in0 service an! sell spare parts. /his is our main sources of revenue. (e main revenue earnin0 part is service point. (e know that all the pro!ucts are not creatin0 the same value or revenue. Some are makin0 hi0h, some are avera0e an! rest of the will mo!erate. (e cover our lose item with the hi0h revenue items. (e S(@/ out our pro!uct an! make it important so that revenue will not stop ever. The major cost involve in generating the revenue: /he ma%or cost involves in 0eneratin0 the revenue is @peration cost an! 3uman 4esource Mana0ement cost. (e run a $i0 store so fair of the store, electricit. cost of the store, raw material like spare parts of the store nee!s a $i0 amount of cost. 3uman 4esource is $i0 asset for our compan.. "t is a competitive a!vanta0e of our compan.. /o maintain the 3uman 4esource nee! a $i0 fi-e! cost. So this two fi-e! cost is ma%or cost. /hat ma%or cost is also involve! in 0eneratin0 the revenue. The investments requirement to get the business up and running: usinesses that are $e.on! the startup phase an! alrea!. have revenues comin0 in, a venture-capital investment ma. $e appropriate. ,ast-0rowth companies with an e-it strate0. alrea!. in place can 0ain up to invest, network an! 0row their compan. +uickl.. E/he $enefit of venture-capital investors to a startup is that the. can help them 0et the mone. an! provi!e them with professional mana0ement e-pertise,E sai! rian 3au0ht., assistant professor of finance an! !irector of the investment center at Marist Colle0e. Eecause venture capitalists focus on specific in!ustries, the. can 0enerall. offer a!vice to the entrepreneur on whether the pro!uct is 0oin0 to fl. or what the. nee! to !o to $rin0 it to market.E3owever, venture capitalists have a short leash when it comes to compan. lo.alt. an! often look to recover their investment within a three- to five-.ear time win!ow. @ur investment is initiall. re+uire! 1.7 cr. tk. Ma%or cost of that investment is $usiness setup cost itDs aroun! 12000000 t(. "n the setup cost have store !ecoration, Central Air-con!ition s.stem, furniture an! electric wirin0 cost. @ur secon! $i00est cost is a!vance rent pa.ment of the floor. "t is 7 lac each moth of ? months 20 lac taka. 4est of the mone. is nee! for promotional activities an! 0overnment permission or re0istration cost. Ever. moth we nee! 13)01)0 t(. fi-e! costs for runnin0 the $usiness. (e nee! 700000 tk. for rent of the place, =0000 to 70000 tk. thousan! for electric $ills an! rest of the, mone. nee! other operation cost. @ur Monthl. 4evenue reak-even point is 1=111?0 tk. F The critical success factors and assumptions for making the profit model work: Objective Candidate Critical Success Factors (e want Gain market share locall. of 17H "ncrease competitiveness versus other local stores Attract new customers Achieve fresh supplies of )farm to customer* in 1= hours for 67H of pro!ucts Sustain successful relationships with local suppliers Sustain a customer satisfaction rate of >FH 4etain staff an! keep up customer- focuse! trainin0 E-pan! pro!uct ran0e to attract more customers Source new pro!ucts locall. E-ten! store space to accommo!ate new pro!ucts an! customers Secure financin0 for e-pansion Mana0e $uil!in0 work an! an. !isruption to the $usiness 6' "eam 8 (ana7ement 5 Or7anisation 7ist t!e 3oun%ers inclu%ing t!eir 8uali3ications an% experience !e name o3 t!e 3oun%ers is Sultanul 1re3een. 9e is ++1 gra%uate. 9e is young 5ut !as lots o3 i%ea t!ose !elp t!e society to c!ange. 9e !as not so muc! experience in t!e real 5usiness :orl% 5ut !ave :ell enoug! (no:le%ge a5out t!e 5usiness. > Or7ani9ational c#art Description of who will manage the business on da to da basis: usiness an! or0aniAations is the function that coor!inates the efforts of people to accomplish 0oals an! o$%ectives usin0 availa$le resources efficientl. an! effectivel.. /he 3ea! of the compan. is Mana0in0 Director. 3e is owner of the or0aniAation. 3e has two Su$or!inate, 1. Mana0er an! 1. Chef En0ineer #n!er Mana0er have Accounts officer, 34M officer, @peration officer, Iualit. an! (arrant. officer, Sells an! Marketin0 officer, /echnical @fficer an! Securit. officer. /he mana0er has 0ive them !irection an! mana0er them. #n!er Chef En0ineer has ? !ifferent sections En0ineer. #n!er section En0ineer have two technicians. /he sections mana0er 0ive the !irection an! mana0e them as well as. 7' (ar6etin7 Plan 10 !anaging Director !anager Chef "ngineer "ngineer # "ngineer $ "ngineer % "ngineer & "ngineer ' "ngineer ( /echnician-1 /echnician 1 1 /echnician-1 /echnician 1 /echnician 1 1 /echnician 1 /echnician 1 /echnician 1 1 /echnician 1 /echnician 1 /echnician 1 /echnician 1 Accounts officer 34M officer @peration officer (arrant. an! +ualit. !!!offomana0ement officer Sells an! Marketin0 Securit. officer /echnical @fficer )alue: /he pro!uct of services is valua$le to customers for- *iving warrant: (e are 0ivin0 warrant. when customers take services from us. Also we provi!e !etail un!erstan!in0 a$out the pro$lem of the 0oo!s to the customers for proper han!lin0. So that there were no possi$ilit. to occurs the same t.pe of pro$lem. +ow cost repairing: 3ence our strate0. is the $usiness !evelopment an! customer satisfaction, so we repair ever. kin! of electronic 0oo!s. As we repair all kin! of electronic items we can !o the work with ver. low cost. $&,- service: (e are rea!. with 10 mem$ers who can 0ive service to .ou at an. time. *ood qualit of service: (e mostl. $elieve that +ualit. of the pro!ucts shoul! $e o$taine!. /hatDs wh. we tr. our $est to 0ive +ualit. service to our customers. Target !arket: Our market target is those classified customer: #pper level #pper-Me!ium Me!ium ,or market competitors J Lots of Small Electric pro!uct repair service stores in the an0la!esh. !arket .ositioning: A positionin0 statement is a concise !escription of m. tar0et market as well as a compellin0 picture of how " want that market to perceive m. $ran!. /hou0h it ma. rea! like somethin0 from m. promotional materials, m. positionin0 statement is an internal tool. Ever. pro!uct an! marketin0 !ecision " make re0ar!in0 m. $ran! has to ali0n with an! support m. positionin0 statement. A 0oo! positionin0 statement is a 0ui!epost for m. marketin0 efforts. 11 "t helps me maintain focus on m. $ran! an! its value proposition while " work on market strate0. an! tactics. A Gui!eline that " will follow for Goo! 'ositionin0 Statements "t is simple, memora$le, an! tailore! to the tar0et market. "t provi!es an unmistaka$le an! easil. un!erstoo! picture of m. $ran! that !ifferentiates it from m. competitors. "t is cre!i$le, an! m. $ran! can !eliver on its promise. M. $ran! can $e the sole occupier of this particular position in the market. " can )own* it. "t helps me evaluate whether or not marketin0 !ecisions are consistent with an! supportive of m. $ran!. "t leaves room for 0rowth. .ricing Strateg: @ne of the most !ifficult, .et important, issues " must !eci!e as an entrepreneur is how much to char0e for m. pro!uct or service. (hile there is no one sin0le ri0ht wa. to !etermine m. pricin0 strate0., fortunatel. there are some 0ui!elines that will help me with m. !ecision. efore " 0et to the actual pricin0 mo!els, here are some of the factors that " will $e consi!ere!& .ositioning - 3ow am " positionin0 m. pro!uct in the marketK "s pricin0 0oin0 to $e a ke. part of that positionin0K /he pricin0 has to $e consistent with the positionin0. 'eople reall. !o hol! stron0l. to the i!ea that " 0et what " pa. for.
11 Demand Curve - 3ow will m. pricin0 affect !eman!K LouMre 0oin0 to have to !o some $asic market research to fin! this out, even if itMs informal. Get 10 people to answer a simple +uestionnaire, askin0 them, E(oul! .ou take this service at < priceK L priceK N priceKE ,or a lar0er venture, "Mll want to !o somethin0 more formal, of course -- perhaps hire a market research firm. ut even a sole practitioner can chart a $asic curve that sa.s that at < price, <M percenta0e will $u., at L price, LM will $u., an! at N price NM will $u..
Cost - Calculate the fi-e! an! varia$le costs associate! with m. service. 3ow much is the Ecost of 0oo!sE, i.e., a cost associate! with each item service !elivere!, an! how much is Efi-e! overhea!E, i.e., it !oesnMt chan0e unless m. compan. chan0es !ramaticall. in siAeK " alwa.s followe! that m. 0ross mar0in 9price minus cost of 0oo!s; has to ampl. cover m. fi-e! overhea! in or!er for me to turn a profit. Man. entrepreneurs un!er- estimate this an! it 0ets them into trou$le.
Short/term profit ma0imi1ation - (hile this soun!s 0reat, it ma. not actuall. $e the optimal approach for lon0-term profits. /his approach is common in companies that are $ootstrappin0, as cash flow is the overri!in0 consi!eration. "tMs also common amon0 smaller companies hopin0 to attract venture fun!in0 $. !emonstratin0 profita$ilit. as soon as possi$le. " will also follow some a!!itional 'ricin0 strate0.. /hose are&
o Short-term revenue ma-imiAation o Ma-imiAe +uantit. o Ma-imiAe profit mar0in o Differentiation o Survival Cow that " have the information " nee! an! are clear a$out what " am tr.in0 to achieve. " am rea!. to take a look at specific pricin0 metho!s to help me arrive at m. actual num$ers. Sales 2 Distribution: Si0nificantl. increase sales throu0h appropriate !istri$ution channels. Successful companies will em$race new approaches an! operational chan0es to meet these challen0es. " $elieve that there are several ke. factors that !rive !istri$ution success, each of which re+uires attention for companies to remain competitive. /hese factors inclu!e& o market se0mentation o pro!uct positionin0 o service !eliver. o un!erstan!in0 of customer nee!s : $ehaviors o costBprofita$ilit. anal.sis 12 On-line stores vs. Off-line stores Lou will fin! it M#C3 easier to 0et m. service into @n-line stores than @ff-line stores. "n the online stores in m. compan. to see .our all service that .ou take previousl. via .our account. . .our account .ou will also 0ive the or!er of future service. .romotion Strateg: 'ro!uct promotion is one of the necessities for 0ettin0 m. $ran! in front of the pu$lic an! attractin0 new customers. /here are numerous wa.s to promote a pro!uct or service. Some companies use more than one metho!, while others ma. use !ifferent metho!s for !ifferent marketin0 purposes. 4e0ar!less of m. compan.Ms pro!uct or service, a stron0 set of promotional strate0ies can help position m. compan. in a favora$le li0ht with not onl. current customers $ut new ones as well. Contests Contests are a fre+uentl. use! promotional strate0.. Man. contests !onMt even re+uire a purchase. /he i!ea is to promote m. $ran! an! put m. lo0o an! name in front of the pu$lic rather than make mone. throu0h a har!-sell campai0n. 'eople like to win priAes. Sponsorin0 contests can $rin0 attention to .our pro!uct without compan. overtonesD. Social Media Social me!ia we$sites such as ,ace$ook an! Goo0leO offer companies a wa. to promote pro!ucts an! services in a more rela-e! environment. /his is !irect marketin0 at its $est. Social networks connect with a worl! of potential customers that can view m. compan. from a !ifferent perspective. 4ather than seein0 m. compan. as Etr.in0 to sellE somethin0, the social network can see a compan. that is in touch with people on a more personal level. /his can help lessen the !ivi!e $etween the compan. an! the $u.er, which in turn presents a more appealin0 an! familiar ima0e of the compan.. Service Giveaways Service 0ives a wa.s an! allowin0 potential customers to sample services are metho!s use! often $. companies to intro!uce new househol! pro!ucts. Man. of these companies sponsor 1= in-store promotions, 0ivin0 awa. pro!uct samples to entice the $u.in0 pu$lic into tr.in0 new pro!ucts. Customer Referral Incentive Program /he customer referral incentive pro0ram is a wa. to encoura0e current customers to refer new customers to m. store. ,ree service, $i0 !iscounts an! cash $ack are some of the incentives " can use. /his is a promotional strate0. that levera0es m. customer $ase as a sales force. After-Service Customer Surveys Contactin0 customers $. telephone or throu0h the mail after a sale is a promotional strate0. that puts the importance of customer satisfaction first while leavin0 the !oor open for a promotional opportunit.. Skille! service people make surve. calls to customers to 0ather information that can later $e use! for marketin0 $. askin0 +uestions relatin0 to the wa. the customers feel a$out the services the. take. /his serves the !ual purpose of promotin0 m. compan. as one that cares what the customer thinks an! one that is alwa.s strivin0 to provi!e the $est service. 8' O$erational Plan ,or operatin0 a new $usiness there must $e e-ist strate0ic : operational plan. /he plannin0 process is comprise! of two ke. parts---strate0ic plannin0 an! operational plannin0. Strate0ic plannin0 esta$lishes an or0aniAationMs lon0-term vision, o$%ectives an! strate0ies re+uire! to achieve the o$%ectives. @perational plannin0 is the e-ecution phase. "t outlines a framework for implementin0 the strate0ies an! achievin0 the o$%ectives. Strategic .lan /he strate0ic plan covers a three to five .ear time frame. Annual reviews are con!ucte! to assess if the plan is on track an! if chan0es are re+uire!. An anal.sis of stren0ths, weaknesses, opportunities an! threats provi!es a startin0 point. /he strate0ic plan i!entifies the performance measures use! to monitor pro0ress towar!s achievin0 the o$%ectives. Strate0ic plans are !evelope! $. senior mana0ement althou0h !epartments can !evelop their own strate0ic plans un!er the um$rella of the corporate-level plan. S3OT 4nalsis: 17 S(@/ anal.sis is commonl. use! in marketin0 an! $usiness in 0eneral as a metho! of i!entif.in0 opposition for a new venture or strate0.. Short for Stren0ths, (eaknesses, @pportunities an! /hreats, this allows professionals to i!entif. all of the positive an! ne0ative elements that ma. affect an. new propose! actions. P Stren0ths an! /hreats are the e-ternal factors P @pportunities an! (eaknesses are internal factors Operational .lan: @perational plannin0 covers a one .ear time frame. "t outlines the actions re+uire! to implement each strate0.. "t i!entifies the resources nee!e!, responsi$ilities an! time frames for implementin0 actions. @perational plans 0overn !a.-to-!a. $usiness an! la. the foun!ation for preparin0 the annual $u!0et. 'ersonal o$%ectives are !efine! at this level. 5ntegrating Strategic and Operational .lans 1? /he strate0ic plan la.s the foun!ation for the operational plan. 3owever, operational plannin0 i!entifies stren0ths an! weaknesses in the or0aniAation that, in turn, influence strate0ic !irection. Ceither process is !evelope! in isolation from the other. /he strate0ic o$%ectives !rive the pro0rams an! pro%ects at the operational level. (ithout this linka0e, pro%ects cannot secure resources. 'erformance measures are i!entifie! at the strate0ic level an! implemente! at the operational level. Each functional area, such as customer service or manufacturin0, re+uires an operational plan to outline actions that will achieve the !esire! results. "nvironmental 5mpacts A chan0in0 environment can ren!er strate0ies o$solete. @r0aniAations nee! to monitor the environment an! revisit strate0ies as circumstances chan0e. ,or e-ample, a new competitor enterin0 the market necessitates a strate0ic review to reflect this new threat. @r0aniAations mi0ht feel that lon0-term plannin0 is not appropriate in rapi!l. chan0in0 environments. Cevertheless, an or0aniAation will $enefit $. havin0 a vision an! strate0ic !irection $. i!entif.in0 an! capitaliAin0 on opportunities. "n some cases, the plannin0 c.cle ma. $e shortene! to allow for rapi! response. Challenges @r0aniAations can 0et $o00e! !own in !a.-to-!a. operations. As lon0 as sales are 0oin0 well an! a compan. is makin0 mone., mana0ement mi0ht not feel the nee! to chan0e !irection. /he pro$lem with operatin0 in the here an! now is that a compan. is not capitaliAin0 on opportunities an! will miss out on future 0rowth. Strate0ic plannin0 an! successful e-ecution keep an or0aniAation on its feet, ena$lin0 it to esta$lish a lea!ership position in the market. E-ecutives can lose touch with emplo.ees an! ma. not have a han! on the pulse of the or0aniAation. "f the strate0ic plan is !evelope! in isolation, the operational level mana0ers mi0ht not $u. into the process, an! the e-ecution phase will not succee!. 16 .' :inancial Plan " will also prepai! a financial plan for start-up cost, loss-profit .earl. an! monthl., Cash flow an! Compan. alance Sheet for a .ear. " am also calculatin0 the compan. $reakeven point. /he calculation is provi!e! in $low. Start-up Start;up $nventory 1200000 7ease% E8uipment 120000 Start;up E8uipment 1)00000 "t!er 0 otal Start Expenses 32)4000 Start;up 1ssets Cas! <e8uirement *3)000 "t!er Current 1ssets 0 7ong;term 1ssets ,000000 otal 1ssets ,*3)000 otal <e8uirements 12000000 1F 1> Cash-flow Company Balance Sheet =ear 1 =ear 2 =ear 3 Cas! <eceive% Cas! /rom "perations Cas! Sales 1,,00000 201)0000 22000000 Su5total Cas! /rom "perations 1,,00000 201)0000 22000000 1%%itional Cas! receive% Sales ax# >1 <eceive% 0 0 0 2e: Current +orro:ing 0 0 0 2e: "t!er 7ia5ilities 0 0 0 2e: 7ong;term 7ia5ilities 0 0 0 Sales o3 "t!er Current 1ssets 0 0 0 Sales "l% 7ong;term 1ssets 0 0 0 2e: $nvestment <eceive% 0 0 0 10 Su5total Cas! <eceive% 1,,00000 201)0000 22000000 Expen%itures Expen%itures 3rom "perations Cas! Spen%ing 11520000 124,0000 13.20000 +ill Payments 5.))5)0 ))*)54,0 )..).)0 Su5total Spent on "perations 1*4,)5)0 1.15)4,0 20.1).)0 1%%itional Cas! Spent Sales ax# >1 Pai% "ut 0 0 0 Principal <epayment o3 Current +orro:ing 0 0 0 "t!er 7ia5ilities Principal <epayment 0 0 0 Purc!ase "t!er Current 1ssets 0 0 0 Purc!ase 7ong;term 1ssets 0 0 0 Divi%en%s 0 0 0 Su5total Cas! Spent 1*4,)5)0 1.15)4,0 20.1).)0 2et Cas! /lo: 1313440 1003520 10,3040 Cas! +alance 204.440 3052.)0 413)000 =ear 1 =ear 2 =ear 3 1ssets Cas! 204.440 3052.)0 413)000 "t!er Current 1ssets 0 0 0 otal Current 1ssets 204.440 3052.)0 413)000 7ong;term 1ssets 7ong;term 1ssets ,000000 ,000000 ,000000 1ccumulate% Depreciation 1**)00 352000 532,00 otal 7ong;term 1ssets *,22400 *)44,00 *4)*200 otal 1ssets .,*1,40 10).**)0 11)03200 7ia5ilities an% Capital Current 7ia5ilities 1ccounts Paya5le 534.)0 550000 5**3)0 Current +orro:ing 0 0 0 "t!er Current 7ia5ilities 0 0 0 Su5total Current 7ia5ilities 534.)0 550000 5**3)0 7ong;term 7ia5ilities ,000000 ,000000 ,000000 otal 7ia5ilities ,534.)0 ,550000 ,5**3)0 Pai%;in Capital 4000000 4000000 4000000 <etaine% Earnings ;32)4000 ;2))3120 ;1,52240 Earnings )00,,0 ,10,,0 ,*,0,0 otal Capital 133),,0 214**)0 3025,40 otal 7ia5ilities an% Capital .,*1,40 10).**)0 11)03200 2et ?ort! 133),,0 214**)0 3025,40 11 'ont!ly <evenue +rea(;even 14221)0 1ssumptions@ 1verage Percent >aria5le Cost 4A Estimate% 'ont!ly /ixe% Cost 13)01)0 11 10' A$$endi! Essential o3 Entrepreneurs!ip an% Small +usiness 'anagement# 5 t! e%ition 5y !omas ?. Bimmerer an% 2orman '. Scar5oroug!. >isiting +CS Computer city an% 'irpur S!a! 1li Super 'ar(et. 'r. 'usta3a Baman. :::.google.com !ttp@CCen.:i(ipe%ia.orgC:i(iC'ainDPage !ttp@CC:::.entrepreneur.comC5usinessi%easCin%ex.!tml 1n% many more :e5site. /////////////Thank ou//////////// 12