Business Plan

Executive Summary

Description of the Business :

Operations :

Product design

Current

Quality 50% Performance 52% Features 88% Style 43% (OUR)

81 % , 70% , 60% , 29% (Compuland 495)

43% , 50, 90, 40 (Everyday IT) 519

42, 38, 50,28(Datastore)420

Solo Business is our target segment which demands extreme features, above average value and
average performance .

Performance : 13 said ok , 7 said good

Features : 2 said poor , 15 said ok and 1 said good

Quality : 19 said ok , 1 said good

Price : 2 said poor , 5 said ok , 7 said ok and 6 said excellent .

Purchasing

Sourceline ( Current) 6.25

30 days

10% discount over 2000 units

Alteranative : Prosupply 6.75

5% discount over 500 units

60 days

Production

Built all in house : 312.50 (6.4 hour per unit)

Contract out (0.9 per unit)

1-4 =100

5-24=90 Additional

25-99 = 80

100 + = 70

Contract out all

Overhead absorption

Fixed Rent Salary

Built himself 312.50 208.3 1500
Contract all 312.50 1800 for 20 or no
2400 for 30
Contract half 312.50

Contract out all in starting

Quality check

Minimal : 2 minutes (current)

Basic : 5 minutes

Normal : 15 minutes

High : 30 minutes

VRIO Analysis of Product

Base Value Rare Imitable Organized

Quality Yes No No Yes competitive parity

Features Yes Yes No No Temporary competitive

advantage

Performance Yes No No No competitive parity

Style Yes Yes Yes No Unused Competitive advantage

To improve cashflow ,we will swich to prosupply .

Organizaion

Location : Home 600 annual cost , 60sq feet

Small Business centre 1500 annual

Business park 2000 atleast 3 year lease

Rural Premises 1000 sales and marketing difficult

Managed office 2500 .

Resources Limited 1 Basic 200 rs Standardard 50 per month or 500 buy

Equipment

Tools Basic 250 Standard 50 per month or 500

Furniture basic

Owner

40 hours for a company 1500

22 hours for a business

Good skills

Production

Marketing

IT

Business Management

Design and development

Not good

Sales

Communication

Research

Finance

People Management

Time waste

Resources ( Marketing, purchasing ,sales ,misc)

Skills ( Purchasing or sales )

 Operations Sales and Organization Finance
marketing
Month 1 Supplier Nothing Tool hire Nothing
change
Time 66 hours
Month 2 Production Training in
contract communication
change
Month 3 Production Training in Loan from
contract production family
change
Month 4 Change the Search about
supplier distributers
Month 5 Create legal Hire one
company
Month 6 Go full time
Month 7 Product own
Month 8 Promotions
Month 9 Promotions
Month 10 Training
Month 11 Research
Month 12

 MARGIDA, A. (2016). Leadership theories. Smart Business

Akron/Canton, 26(6), 9. https://search.ebscohost.com/login.aspx?
direct=true&db=bth&AN=120443031&site=ehost-live

 Wiklund, J., & Shepherd, D. A. (2001). Intentions

and Growth: The Moderating Role of Resources
and Opportunities. Proceedings & Membership
Directory - Academy of Management, F1–F6.
https://doi.org/10.5465/APBPP.2001.6133075
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  Gosztonyi, M. (2022). Longitudinal Study of Small
and Medium Enterprises and Family Businesses in
an Emerging Market. Advances in Business-
Related Scientific Research Journal, 13(2), 19–
49.
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direct=true&db=bth&AN=160725921&site=ehost-
live
 Ahmed, M., & Garvin, M. (2022). Review of Critical Success Factors and Key
Performance Indicators in Performance Assessment of P3 Transportation
Projects. Journal of Management in Engineering, 38(5), 1–13.
https://doi.org/10.1061/(ASCE)ME.1943-5479.0001070
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 Cyron, T., & Zoellick, J. C. (2018). Business

Development in Post-Growth Economies:
Challenging Assumptions in the Existing Business
Growth Literature. Management Revue, 29(3),
206–229. https://doi.org/10.5771/0935-9915-2018-
3-206


Business Plan

Executive summary :

Background

Hind Systems has been running from a year and its core business activity is sale of computers.The
target segment of the company is solo business . During that time , it has successfully created a
sound financial condition and workable marketing stretegy.Mr.Rich has bought the company ,Hind
systems .He is working part-time from home to run the business .He has excellent
production ,marketing and IT skills .

Vision , Mission and objective

Company ‘s vision is to provide, solo business ,a system, what they actually want , extensive features
.The company will only focus on its target segment “Solo Business “to fulfil their
requirements .Company’s mission is to bring effectiveness and efficiency in the process be it
production or sales and the objective of the company is to grow the business significantly by making
monthly profit of 3000 and turnover 10000 respectively .

Purpose of the Plan

This Business plan aims to provide the guidelines to run the business for a year and to provide the
key performance indicators that will be used to assess the performance at the end of every month .

Business Modal

Our end target to achieve at the end of 12 months is to produce the maximum number of units by
own and getting the guaranted minimum number of sales each month . Production at house will cut
the variable cost and getting more orders will reduce the fixed cost as well .Our Business plan will
work in three phases .In first phase the focus will be to invest the time to improve the cashflow
scenerio by getting 60 days credit period from supplier and lending 3000 from friends and family .In
second stage , we will work to bring more efficiency and effectiveness , To save the effort and
time ,all units will be contracted out for production instead of producing some at home and that
time will be invested in hiring the required office equipment and improving the skills , sales and
communication, via training .This investment will bring efficiency and effectiveness in company ‘s
growth and owner’s prosperity both,afterwards the product design and price will be changed which
will result in increased gross profit margin since adding the features that target segment focuses on
and eliminating some additional componants ,making no value ,undoubtedly will push the customers
to buy product even at high cost .Finally we will focus on marketing ,we will hire the supplier to
guarantee minimum 15 sales and then we will relocate to managed office and the owner will work
full time in his business. As we will be efficient enough to produce the units by own ,profit will be
earned in two ways ,by cutting the variable cost of production process and reducing the fixed cost by
increasing the number of orders.

Controlling

Each month members of group would conduct a meeting to critically evaluate the results compared
to plan.For every step ,key performance indicators would be there to compare the actual and
planned facts .

Operations plan Overview

With an aim to improve the cashflow ,we will switch to the supplier ,”Prosupply”,giving the credit
facility of two months .This will not only improve the cashflow but also will make the effective use of
s the part of amount will be used in improving the efficiency of business (training and investing in
suitable resources )key performance indicators will be bank balance and ability to invest .The key of
healthy cashflow is extending the credit limit of supplier ®

In order to improve efficiency and order rates we will contract out all the units for production in
initial stages until the resources are hired and skills are learnt.Though producing the part of units by
own cut the cost ,it is dangerous for efficiency and sales rate.As producing 1 unit takes
…….hours ,this will be used effectively for learning the essential skills which furthur will increase
order rates and profitability .

Option A Produce all

Resources 100 per month

Salary 1500

Opportunity cost 300

Contract all 1800

Product design : Changing the product design will improve the customer satisfaction and
order rate .As our target segment prefer extensive features ,our new design will attract them
more as we are going to improve the features by ……% .Removal of feature that neither
your customer needs nor any competitor provides is unlikely to effect the growth of business
meanwhile minor improvement according to customer performance can increase
the number of sales .

Hind systems will remove the extra componant used in quality which is increasing the direct cost ,as
quality comprises of ……….cost ;however neither our customers want it nor other competitors
provide it .Cutting the material will not effect any customer but increasing the features will .This
overall will increase the total cost to …….and price to ………which not only will improve the sales but
also will improve gross profit margin.

Organization

Third month training in sales 300 and 30% growth

4th month training in communication 300 and 30% growth

Month 6 price 490 extensive features

Month 7 set up company

Month 9 Location 220

Month 10 Promotion .

Finance

Month 2

3000 pond loan

1200 for training

100 for resources

Company set up and extra due to contract all

Sales and Marketing

Month 7 sales channel search

Month 8 Negotiation

Month 9 Accept

References

TOMIĆ, V. P., & ANDRIJAŠEVIĆ, M. (2014). Cost Management in the Internal Value
Chain of Integrated Application of Activity-Based Costing, Kaizen Concept and
Target Costing. Megatrend Review, 11(4), 365–380.
https://doi.org/10.5937/MegRev1404365P
https://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=101392099&site=ehost-live

Hirst, S. (2014). 9 ways to grow and improve cashflow. NZ Business, 28(4), 50–
51.
https://search.ebscohost.com/login.aspx?
direct=true&db=bth&AN=95764008&site=ehost-live