1
produce a profile of a selected small business identifying its
strengths and weaknesses
Modern people are extremely busy in our days and very often neglect their
homes, especially in London where the lifestyle is very dynamic and
complicated. Therefore Working Angels Ltd intent to offer cleaning services as
part of the business. The cleaning industry is necessary part of the trading
market. In most cases people are happy to use the help from cleaners to keep
their homes and different types of businesses clean, and like that to have
more personal and working time available.
Working Angels Ltd will be a home-based business at first with me
.responsible for all the potential customers. The main targeted customers will
be the affluent customers in purpose to obtain a permanent relationships and
contracts with them. On the other side the recruitment part of the business
will be partly connected to the cleaning services by offering different cleaning
jobs in the job search market. In order to become participant Working Angels
Ltd (WALTD), must actively work to become partner with the customers to
achieve its objectives in short-mid-long terms. In the same time the business
will be responsible
to obtain contracts for different types professionals who are seeking work in
the wished businesses. The company`s effort will be huge in their desire to
provide and fulfil some really useful and high-quality services to the public.
The business plan would be the spine for WALTD or the guide map to reach
the pointed aims.
Business Mission Statement.
Working Angels Ltd will be dedicated to provide its customers professional
cleaning and recruitment services focussing all of its energy and resources on
customer needs satisfaction and value providing excellent reward. The
company`s effort will be huge in their desire to provide some really useful
high-quality services to the public.
Business objectives
Business Objectives.
CLEANING SERVICES OBJECTIVES
Strengths:
Logo
Expertise/ Management
Motivation
Customer Services
Knowledge of the Market
Design ( Stylish uniforms)
Trained Team
Quality Services
Opportunities:
More advertising
Extending the market
Customer taste change in time: New
services
Lower taxes
Weaknesses:
Lack of advertising skills
Lack of Finance
Part time employee and 0hrs employees
Lack of business recognition
Star-up Company
Threats:
Competitors
Tax increases
Government strict regulation (penalties)
Money / Banks / Interests
Market demand may decrease
Market Development
New contracts and Partners
Portfolio could boost company image.
New Entrance
Quality
Speed
Dependability
choice
Flexibility
Cost
Benchmarking
Achievements
their strategic competitive advantage. Michael Porter created the Value Chain
which is a valuable tool for managers giving them a clear picture how the
business is operating
ways. WALTD could benefit with new softwares, computers, invoices, car, van,
carpet cleaning machine and more to be able to provide high standard services for
the targeted customers.
- Human Resources- the people working for WALTD would part of the company`s
competitive advantage.
- According to the Value Chain and SWOT for WALTD the eventual problems may
arise only in the public sector. Dealing with people it is not an easy job. To make
sure that the business will go smoothly especially in the first year passing
through the surviving stage me as a Director should make sure the staff is
trained and experienced, that they have problem solving skills, that they are
calm people with the right manners for the business. Another measure to
overcome the weaknesses is to periodically evaluate the stage of the company
development. It is not necessary to try to go it alone There are many sources
of business advice and help available out there. Example: The financial advisors,
HMRC help Centre and etc.
- If on the end I am not happy from the services provided from my staff to my
customers I could always outsource it from another contract agencies or to hire
more professional staff. To make sure the budgeting is going with no mistakes
and delays (which could make my customers and employees unsatisfied) I will
hire a professional Accountant with right certification and knowledge to do the
job. I am hoping that the logo of WALTD will be easy recognizable and
remembered which would strengthened the market position of the business.
- WALTD has a lot of competitors out there but with the directed to customer care
company culture I am more than sure that the breakeven point will be met
quickly. The unique about the company is the logo, the uniforms, the
professionalism, and in the future the working environment. Competitive
advantage it is not only about to win the customers trust it is also about to win
employees` trust which would motivated them to perform even better. On the
end of each trimester after the breakeven point is met I am planning to set up a
beneficial scheme to each employee met the minimum target marks. There will
always be a room for improvement. When the business is run with passionate,
creativity, logical and evaluating thinking there is now way (apart of the
Recession and Lack of Finances) to not reach the wanted objectives
How effectively WALTD meets the customers` needs? - Make sure what are
they
Which of the offered services is more succeeding? - Define which of both
constantly.
Is my staff working effectively? Evaluate them periodically, offer training
What is new in the business environment?
the customers tourism services. WALTD will offer all-inclusive holidays. To do that
certain steps are required such us signing contract with resort Hotels and transport
services within UK.
Diversification strategy also apply to WALTD. In the future if the company is
gradually growing it will be possible to offer a new product to new market. For
example all-inclusive holidays outside UK, or even to open a coffee shop
somewhere in the resorts.
When choosing which one of the above strategy to be used the company must
very careful to consider all factors from the value chain, what marketing mix to be
used and when is the perfect time to implicate it. Must be known that the changes
are costly and broad forecasting scale should be drawn to make sure that the
revenue will outweigh the costs.
3.1
plans
Strategic goals for WALTD- as mentioned above the company would like to
achieve a total growth of its business. The Ansoff matrix it`s clear example
of the way of orientation and action plan for future. The main goal as a new
stat-up is to survive but there is no way for the company to stay still and
grow.
place
The breakeven point is based on the price per hour for the services provided
in both departments.
Breakeven Point (BEP) = (Fixed Costs (FC) / Gross margin percentage (GMP))
x 100
- GMP = (Revenue (R) Cost of Goods Sold (COGS) / Revenue x 100%
- FC = 19,500
- GMP = (13 8) / 13 x 100% = 38, 46%
- BEP = 19,500 / 38, 46 x 100 = 50,702
- The monthly BEP needs estimated fixed costs which is 1650
BEP = (1,650 / 38, 46) x 100 = 4,290
If the Business reaches the
Monthly expenses:
Rent
500
monthly BEP each month the
Car Insurance
200
business will start to make actual
Cleaning materials
300
Office materials
200
profit on the 12th month of
Company insurance
50
starting selling services.
Loans
500
_________________________________
Total
1650
-
Performance measures for WALTD- those are already set it up. To step in the
competitive market environment even if it is a niche marketing strategy
regularly review is required.
happy to do so and etc. to do all of the simple step is required. From the
ongoing records kept from the company will be necessary to be derived the
data. After carefully analyzed if there are any shortcoming appropriate action
for change needs to be taken. Example: customers may be or not be happy of
the customer services
The company needs to motivate its employees all the time. I believe that it is not
an important on what type of contract they are signed in but their point of view
may be different. To analyze that will be compulsory for WALTD to undertake some
personal chat time with each one of them on regular basis (3 months). Giving
some bonuses during the survival period it`s a good thing to do. In some cases
WALTD will do some extra pay in regards of food and travel cost. To motivate the
staff WALTD will try to employ each one of them depending on the work and
customer progression.
The existing objectives after the first three months period time passes since
the start of the company most probably would be the same as on the
beginning of trading. It will be more useful for WALTD if that assessment is
done after the Breakeven is met. Depending on the customer needs new
objectives may be set up. Example: if the market condition is more conducive
than it was WALTD could expand more quickly and efficiently. If this is the
case new action plan will be set up with all appropriate evaluations and
measures. Depending from the new strategy chosen and on the evaluation
results WALTD may decide to lower the price or the opposite
3.2
If the niche marketing strategy it`s not giving an excellent results, changing the
marketing strategy it`s not a necessary MUST TO DO activity at first.
When is the right time to revise the plan?
-
market situation.
If there is change in the customers behavior. - Answering the question
where we are doing wrong? Take a look of SWOT and pre-evaluate.
Having this in mind there are some resolution available to be made. Some of the
main objectives may be removed from the original one or just a little change may
be incorporated. The Working Angels Ltd as it`s mentioned above will take a lot of
measures when doing the evaluation and implementing the strategies.
Before do any major decisions WALTD be some more forecasting in regards of
eventual losses. Taking a bad investment measure may lead to a total failure for
the company. Me as a director if the changes requires more funding should make
sure that there is enough funding. A thorough observation of the business
environment together with breakeven point analysis for the current performance
and future one must be taken into account. According to the numbers good time
for new investments will be a month or three after the breakeven point.
If the decision for change is a fact WALTD must consider the adjustments
period and how to do it smoothly and pain free for the customers and the
staff. Most people do not like changes. It`s may be simple as the look of the
website and again to cost a lot of hard work and advertising so everyone can
get used to it. Successful changes in business result from a carefully
planned and monitored change plan. Companies and WALTD in particular
must pay strong attention to follow and monitor a change plan. If there is a
change it`s must be introduced to the shareholders in advance. If some
training is required during that change must be provided. Some changes to
the business activities may directly apply on the employee force. If the
change is move instead of
expand some employees may not be happy moving away. WALTD will take a look
from a bird eye to prevent it but some internal or external factors may accrue as a
serious obstacle.
Project budgeting for WALTD
Based on the objectives which the company has for 10% growth the budgeting
may look like:
2016 2017 2018 2019 2020
21,67623,78926,36729,00331,903
200
500
300
200
50
500
1280
3000
1400
880
1000
2000
300
100
11,710
The project budgeting is giving an idea where the incomes are spending. It is
helping to find out if there are some money spend unappropriated and last but not
least how much the company is saving for future investments.
Based on the company performance and all the analysis if the company has
14000 operational balance the saving plan will looks like that:
Savings = 14,000 11,710 = 2,290 x 12 = 27,480
Sales Forecasting:
First month more likely no sales, or if there are some will not be significant.
Second month the company is a bit active and the customers are looking the
company more often. The promotion process is still ongoing.
Third month is much better than the first two. Forecasting is about 3,
Any other month varies in depends of customers needs
On the end of the first year forecast is about 55,000
3.3
Action steps
Forecast incomes
y
Managers 17/07/2015
17/01/2016
10,000
2
3
Managers 23/07/2019
Managers 23/01/2015
23/01/2020
23/09/2016
52,000
7,500
Borough contracts
4.1 report on the impact of the proposed changes on the business and its
personnel
The proposed changes must be well maintained and executed. The main
responsibility lye on the management team who must undertake all steps
appropriately. During the process all analysis including in the plan may change.
Main changes we may wetness in the value chain because of the planned
expanding. The company plans to find an opportunities to work under Joint
Ventures as well in purpose to introduce its services broadly in the market. Such a
step may offer even more conducive environment for operation. Must be taken
into account all the factors affecting any business decision. External and internal
factors, SWOT and forecasting, budgeting available. The most important factor for
WALTD would be the social and demographic factors because of the nature of the
business. Working with people and satisfying customers needs its a difficult and
responsible work. To improve the communication skills between the management
and employees a weekly meeting will be take place. WALTD will be open to any
proposes for improving and innovating. I believe that also will motivated them to
stay loyal and in a long term employed for the company. Presentation also will be
take place in such a meetings to introduce the improvement of the company and
any future changes.
Apart of the risks for WALTD by the undertaken changes there are benefits as well.
I intend to run dynamic business with well-planned and executed plans at all
times. Trainings will be provided, appropriate research will be undertaken and by
doing so the business will improve, diversify and grow.
The impact of changes should remain positive value. All the changes must keep a
high company moral and loyalty to customers need. To evaluate that a monthly
apprises will be undertaking and if necessary company attitude and measures will
be taken
The evaluation process may take some time and the results from it may encourage
us to do some changes in the website view, may have to do some changes in the
value chain or to reconsider the company objectives.
4.2 plan how the changes will be managed in the business
Make a decision which changes are more important than other- According to
the action plan for WALTD the most important change would be expanding.
The reason been for that is the lack of funding to undertake the long-term
Feedback from the Customers- kept informed and asked for their opinion
could revise the changing plans as whole. Not always a change for the
Comparing with the performance in the past would be possible for the company
to see how smoothly the changes are implemented. Keeping a strong database
would give a clear picture of what has been accomplished and what has been
not. Important impact of any changes are upon the company staff. To evaluate
it would be necessary to speak with them and represent them any other
possible changes.
If the business grows more and quicker than expected a possible company
structure change should be plan to ease the tasks related to each employee.
Otherwise if it does not grows as expected some staff cutting must be
preplanned or at least considered.
Having all of that in mind WALTD must have a back-up plan if something goes
wrong. The projected action plan must point a way out of any bad decision taken
such us: investing too much funds, the time it`s not a good time for a change
4.3 monitor improvements in the performance of the business over a
given timescale
It is a good time to overview the plan as whole. The operation of the company
and the improvements and performance of the company depends on doing that
periodically. Going back to the Strategic Action plan it is time to follow the
progress of the taken actions. The timescales set it up are for different periods
of time.
Depending on what have been done (WALTD`s Strategic Action Plan) it will
possible to assess at what stage the business is in. Does the business is
following step by step the or not.
It is also time all the figures from the forecasting to be compared against the
actual (real) one. The actual revenue and cash flow statement must be compared
in purpose finding out does the business operates effectively. WALTD`s planning