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Business Plan

Business Name: All in 1 Service Center


Name of Owner: Sultanul Arefeen

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!.
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.' :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
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