Business Plan

Subsequently, the following global business plan was developed to illustrate how Task Rabbit can enter he international business arena, starting in Australia. This plan will demonstrate why, in time, it is good idea for Task Rabbit to seek out the foreign market in an attempt to sell these services. Some of the key points it will cover are: the potential competitors currently In the Australian market, Influential demographic trends, and geographic, economic and cultural factors that could influence this global business opportunity.

There has been a multitude of personal concierges popping up in Australia since the early sass’s. Professionals are busy people and time is everyone’s cost valuable asset. Thus, it is the only thing we cannot buy, until now. Some of the potential competitors that Task Rabbit will face are: One Concierge, Someone Lifestyle Services and Concierge Connections. All of these companies are based In Sydney or Melbourne but will service the whole area of Australia. Task Rabbit will overcome any barriers having to do with these competitors because their operations are slightly different from the rest.

They allow the client to post the task or errand that needs to be completed and Task Rabbit “employees” bid on the job and the linen can choose which person they want to go with. They can choose based on the reputation of the person or by the cost of their quote. It gives the clients options, which empowers them and puts In control. Australia currently does not have a service-based business Like this, so Task Rabbit would thrive for this reason only. Not only does Task Rabbit grant the client power, they have had so much success in the United States since their inception so their positive image will serve as a benefit to them as well.

When one is attempting to enter into the international business arena t is important to look at any demographic trends that could influence the success and effectiveness of the organization. Utilizing a personal concierge can be viewed as a luxury service, and It Is to most people. Some people In Australia may not be able to afford this service, but when the overall demographics of Australia are observed, it is clear that there is a market for this type of personalized concierge service. About 54% of Australia is made up of individuals ages 25-64 years of age and these are the majority of the people who would be using Task Rabbit (Australia).

The following graph shows some of the wealth and distribution of Australia (“Australian”). It also notes that the median household Income and net worth Is indication that Task Rabbit has the potential to succeed in Australia given it has flourished thus far in the United States. The Australian economy is a capitalist nation and is a large driver and support for entrepreneurship and innovation. The growth of their economy can partly be attributed to entrepreneurs who have created many Jobs with their start up companies.

With all these Jobs and more people having less time to take care of their arsenal and administrative tasks, warrants a need for additional help. This claim further solidifies why Task Rabbit will be profitable in Australia. Variables one must examine when looking at geographic factors are mostly natural resources and the distance from world markets (Willie). Fortunately, Australia is a developed nation and they have roadways and infrastructure to allow Task Rabbit to be successful. Furthermore, natural resources will not have any bearing on the success of Task Rabbit.

As previously stated, the culture of Australia is highly innovative with a entrepreneurial business acumen. This is why their culture will lend a hand in the success of the Task Rabbit venture. Australians are receptive to new businesses developing around them and are willing to try new things. In the United States, Task Rabbit has set a high standard for delivering quality service to its customers. Part of Task Rabbit’s purpose is “connecting busy people who need a little extra time with entrepreneurial people who need a little extra money. It’s an elegant, singular solution to two big problems.

Participating in the Taskmaster community provides people on both sides of the marketplace with the resources and freedom to do what they love,” (“About”). Task Rabbit is booming in the United States and it seems as though there is a willing market in Australia, which seems simply enough it has a great chance of success in Australia. There would be many challenges Task Rabbit would face if they were to seek out the foreign market. Despite those challenges, I believe Task Rabbit will succeed based on the success and support they have received in the United States.

Benefits which includes saving money, because it is cheaper to make products using recycled materials. Products that are made from recycled and innovated materials can also be purchased at a cheaper price. Recycling benefits the economy by also reducing expenditure in other ways. The recycling business sector is growing and developing into an extremely promising industry. Growth Trends In This Business Strong demand for recycled and innovated products is working in the industry favor.

Major users of plastic packaging, apparently responding to consumer desires, eave begun incorporating at least some recycled plastic content in their products as part of the growing interest in recycling. The market for this products is growing as population grows and new household formations take place. This is especially true in expanding economies as the standards of living make further gains. Also household purchases are increasingly being made through large chain discount retailers which we plan to focus on serving.

Pricing Power We will not initially enjoy pricing power in marketing innovated accessories. Discount chains will be primarily interested in price. We are considering to determine the price by “cost plus 20% mark-up or value based pricing strategies Our ultimate goal is to build a line so unique and promote it so effectively that consumers will be willing to pay a premium. Our long-term objective is to build a market that is not entirely based on price. Market segmentation D’ Innovation’s primary target market will be those artistic individuals, as well as the students and office workers.

Segmenting Consumer Markets Geographic – Dave City Demographic – We plan to segment our products at schools and offices with respect to population. Cryptographic – We also plan to market it with respect on the lifestyle, personality, values and social class of the consumers inside the geographic and demographic aspect. Advertising Marketing Plan Initially our price structure will be based on a maximum markup of 20% in order to provide a strong price incentive. We will be depending on the combination of fresh styling, quality and price to break into this market.

Short Range Plan (6 to 12 months): Initially our advertising and promotion will be done on an entirely personal basis without any budget for paid advertising. We will utilize direct mail and face-to-face promotional strategies to raise awareness about our products and services in the target markets. It will be our plan to limit our advertising budget to personal travel expenses in making these presentations and follow-up presentations. Mid Range Plan (12 – 36 months): To establish brand recognition at the retail level, we plan to budget 2% of our sales.

Newspaper advertising may also be used. Radio and television ads are not certain, we will evaluate their effectiveness before further implementation. We will solicit presentations from local advertising agencies. Long Range Plan: D’ Innovation Corporation plans to aggressively build brand recognition and loyalty by budgeting 5% of sales, which will be allocated between space advertising in trade Journals, appropriate consumer magazines and Joint advertising with my customers.

Manhattan, the most metropolitan of the five boroughs of New York City, is dotted heavily by restaurants, shops, businesses, and famous attractions like the Times Square and Central Park, the Empire State, Rockefeller Center, the Metropolitan Museum of Art and United Nations buildings (WorldWeb.Com, undated).

EXECUTIVE SUMMARY

            A recreational tourism company, Manhattan Luxury Experiences, will provide a fully-customizable tour service to wealthy, high-income tourists and residents.

            New York City received 43.8 million international and domestic tourists, following a generally upward trend since 1998.  Of that number, the city received around 36.54 million Americans and 7.26 million foreigners, mostly from the United Kingdom, Canada, Germany and Scandinavia. (NYC & Co., undated)

            The company will be offering four-hour sightseeing tours around Manhattan.  The client and his group of up to 10 guests will experience seeing New York with an experienced guide.  The package will include a luxurious driven  tour and a walking tour in areas of interests.

Potential Market

The target market would include high-income tourists, specially those taking their family on holidays.

The company will also be offering tours guided by guides that are fluent in either Japanese or Korean.  Statistics show that NYC received more than 500,000 Japanese and Korean visitors in 2006.  Both groups have low-level English proficiency and studies of two limo-tour service companies currently operating in New York, Stan’s Limo and New York Fun Tours, do not cater to them.

Product

            Our initial product would be a fully-customizable tour with a highly experienced and knowledgeable tour guide.  The clients will be treated like royalty for the duration four-hour tour.  Tours would be planned according to the client’s preferences, interests, and the time of his visit.

Current Competition and Competitive Strategy

            New York City Fun Tours offers a three-hour tour of the city, in a stretch limousine.  The company charges $595 for the tour which can accommodate up to 10 people.  The tour is also being offered in Spanish.  The tour includes a chauffeur, which the company says would be a native New Yorker who would also act as the tour guide.  The tour would begin in West village, running through celebrity homes, to the promenade and will end in Manhattan. (New York City Fun Tours Activity Guide).

            Meanwhile, another closely-similar service, Stan’s Limo, offers several theme tours like a holiday tour, kids tour.  Generally, its limo tour prices range from $75 to $150 for six hours.  Like New York City Fun Tours, the limo drivers are native New Yorkers who are knowledgeable about NYC.  Stan’s Limo, however, does not provide a set itinerary for the trip.

            Manhattan Luxury Experiences will take the best of both existing services and combine it with our unique value-added service: customization.  With specific emphasis on putting a premium of quality service and comprehensiveness, trip advisors would be at-hand to assist the client in selecting which places and events in Manhattan he’d like to include in his tour.  Trip advisors will also be recommending attractions and places according to the client’s interests and the time of the year the client makes his visits, like skating for 30 minutes at Rockefeller Center during the winter months or visiting a just opened exhibit at the Metropolitan Museum of Art.

            Manhattan Luxury Experiences’ existing competitors are limited to pre-packaged tours, or haphazard tours without direction.

As previously mentioned, the company will be targeting families on holiday, as well as Japanese and Korean visitors.  Half a million non-English native speakers in 2006 came to New York in 2006.  No tour packages catered to them.  This untapped market would provide the company with an edge by offering a service that was not there before.  The company would be taking customization further by providing Korean and Japanese guests with a tour guide that speaks their language.

Pricing Strategy

Aside from New York Fun Tours and Stan’s Limo, most limo services in New York City do not provide a fixed rate for their services.  One exception is Royal Way, which advertises a $62 per person rate for its limo services.  Taking into account that NY Fun Tours charge $595 for a three-hour tour, while Stan’s Limo at least $75 for a six-hour tour, the company plans to utilize a base rate of $200 dollars per hour for its tours, which would include the customized tours and the guide.

 Japanese and Korean tours will be charged a premium of $100 per hour.

Promotion

Since the company is looking more at tourists visiting Manhattan, most of its initial promotion would focus on developing its Web site, which would:

• advertise the company’s services,
• offer a free consultation/customization consultation with our trip advisors, along with a quote-request functionality, and
• feature testimonials from past customers.

Initial company estimates of building a fully-functional Web site (including the employment of a Web design specialist) and supplementary expenses like hosting servers and a maintenance team, is placed at $10,000.

The company would also utilize existing travel-related Web sites, like Lonely Planet and Trip Advisor, as venues for its target advertising.  Initial advertising budget is around $15,000.

The company will also be creating a tie-in with hotels, creating an avenue for the company to advertise our services in their lobbies.  On-site marketing materials such as flyers and brochures, or promotional merchandise such as key holders, is estimated at $10,000.

The foregoing are for the initial year.  Promotional activities on the second and succeeding years will be based on the success of each promotional channel, as objectively quantified by a survey (which will be given to the clients after the tour) and internal company metrics (Web site hits, sales from the Web site, queries and bookings from hotels).

Financial Plan

Net income for the first five years has been estimated at $1,460,000 for simplicity’s sake, and based on the following assumptions: the company is estimating to provide around an average of five tours daily, which would translate to an annual total of 1825 tours in a year at $800 each.  This figure does not include the premiums the company has set on Japanese and Korean tours, which the company estimates to number around 50 a year, which translates to a premium revenue of $20,000.

The company’s capitalization plan for its office and its fleet of 5 limousines (again based on the assumption of 5 daily tours), and subsequent maintenance and operations,  would be around $600,000 for the first year and $100,000 for the next four years.

The company also plans to employ two full-time trip advisors, an office receptionist, five chauffeurs, and tour guides on-call.  Salaries and other administrative expenses are budgeted at around $750,000 annually.

As previously stated, promotional and launching efforts would have an initial budget of $10,000 for the Web site project, including professional Web site creation of $6,000, Web site maintenance of $2,000 and supplementary expenses of $2,000.  Launching advertising budged totals $25,000, with $15,000 going to on line advertising, while $10,000 goes to brick-and-mortar advertising.

Over the course of five years, promotional expenses are seen to decline due to the following reasons:  the company will only focus on the more effective promotional channel and after the third year, the company would have build brand recognition for itself, while relying more on other forms of advertising such as word-of-mouth and peer recommendations.

References

“Manhattan New York Travel Guide” Undated.  WorldWeb.Com. Retrieved on 7 December 2007.             <http://www.manhattan.worldweb.com/>

New York Fun Tours Web site. Retrieved on 7 December 2007.     <http://www.zerve.com/amp/activity_details.php?activity_id=541&msg=2> and          <http://www.zerve.com/FunTours/viptour>

“NYC Statistics” Undated. NYC & Company. Retrieved on 7 December 2007. <http://www.nycvisit.com/content/index.cfm?pagePkey=57>

Royal Way Web site. Retrieved on 7 December 2007.         <http://www.royalwaylimo.com/holiday.htm>

Stan’s Limo Web site. Retrieved on 7 December 2007. ;http://www.stanslimo.com/;

Meeting people Is one of the biggest hurdles for 25-45 year old singles. Colloquy Grog Shop provides this group with an effective solution to this problem. Colloquy Grog Shop will reach profitability by year two and will have earned comfortable profits of by the end of year three.

The objectives for the first three years of operation Include:  To create a local tavern/coffee shop whose primary goal Is to exceed customer’s expectations.  To increase the number of clients by 20% per year.  To develop a sustainable start-up business surviving off of its own cash flow.

Colloquy Grog Shop’s mission is to provide a neighborhood bar/coffee shop where single people can meet. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers. The keys to success will be to constantly address our customer’s needs. Colloquy Grog Shop is a bar/coffee shop designed to bring together singles and create an environment that allows people to comfortably meet each other.

This Is done through a structured conversation system that eliminates uncertainty regarding he social dynamic by creating structure through the use of conversation topics assigned to each table. This structure allows people to be feel more comfortable in meeting new people at the bar/coffee shop because the uncertainty of how to act is eliminated, the structure guides the interaction with the people at the table. The Colloquy Grog Shop will be set up in the hip, upcoming industrial area of NW Portland.

 One, alcohol reduces inhibition, making it easier for people to meet and interact. Two, draft beer generates wonderful profits. Microbes are chosen because they are of higher quality than large production beers and our target segment prefers them. Espresso, cappuccino, coffee, and other coffee/espresso drinks: coffee and fee-related drinks are hugely popular, particularly in the Pacific Northwest. Northwestern expect good coffee/espresso at most food/drink establishments and it is often associated with good conversation.  An assortment of different taps: taps are chosen because they can be relatively easy to make, the offerings can be changed frequently, and taps are more community oriented, meaning they Shop mission of bringing new people together.

The service offerings are based on a system for singles to meet new people. This is accomplished through a structured conversation system. The Grog Shop is divided into two sections: a smaller section of tables for general customers, and another larger section for singles to come and meet new people. The singles section is composed of 4-top tables (tables for seating for four). Each table will be marked with a topic of conversation in the center. Throughout the evening as there is turnover of the table or the conversation is exhausted, the server will introduce a new topic.

The topics are far reaching, some are recent news or sports, while others are intellectual, and some are philosophical. The bulk of the topics will be of the latter varieties as people that are interested in tenting people through the conduit of conversation will typically prefer heavier stuff to provide more insight into that person. If you ask a majority of single 25-45 year olds, most will say they have difficulty meeting new people. Regular bars are not an ideal place to meet people because beyond their visual image, it is quite difficult to learn anything material about the person to determine if there are commonalities.

The typical bar has loud music and is not geared up for serious conversation. Colloquy Grog Shop creates a setting in a bar/coffee shop that encourages thoughtful invitation, allowing patrons to gain insight into the other singles. The key to the conversation system is structure. The rules are clearly established. Singles sit down at specific tables and discuss the assigned topic of conversation. The conversation is used to elicit insight into the other person, their values and perspectives as well as implicit, and sometimes explicit, insight to their background and past.

The structured conversation system is successful because it is reduces ambiguity or uncertainty in the singles social scene allowing people to feel more comfortable in the setting and open up more to the new people. Additionally, for intellectually- minded people, it allows them to find people with similar interests, whether the similarity is based in the topic of conversation of more generally in conversation itself. ? Market Analysis Summary Colloquy Grog Shop’s market can be broken down into two different groups, singles and non-singles. Both groups are well educated and are middle to upper-middle class.

Colloquy Grog Shop competes within the bar/coffee shop industry with a market niche focusing on singles activities. By concentrating on these single activities, Colloquy Grog Shop also faces competition from other singles groups. . 1 Market Segmentation Colloquy Grog Shop’s customers can be broken down into two groups: singles, and non-singles. The non-singles group is smaller by virtue of the fact that if you are meeting someone whom you already know, the two of you can come up with the topic of conversation yourself, therefore, Grog Shop offers this group less value.

The demographics for the non-singles is similar to the singles, to be listed below. The demographics of the singles are:  Single: self evident.  Professional: this characteristic is intuitive since the the underlying element of Colloquy Grog Shop is thoughtful conversation, and most, if not all professionals are intelligent and appreciate thought-provoking conversation.  Income over one exception are teachers who are underpaid relative to their contribution to society.  Age 25-45: the largest group of singles looking for companions.

Target Market Segment Strategy

Colloquy Grog Shop strategy will be based on communicating Grog Shop’s value to the targeted segments. This will be done through a variety of methods. The first method will be strategically placed advertisements. One place that will be used for advertisements is the Willamette Weekly, the liberal arts magazine that details all of the entertainment in Portland. This will be the main source of advertisements because the demographics of their readership are fairly similar to Colloquy Grog Shop’s demographics.

Another source of marketing will be done with strategic relationships with companies that have similar customer demographics. One prime example is the Multinomial Athletic Club. While the clubs patrons are not necessarily overwhelmingly single, the rest of the demographics match. The MAC is a fairly exclusive downtown athletic club that by virtue of the memberships costs, attracts repossession. The strategic relationship with be mutually beneficial where both organizations will develop visibility for each other.

The other form of advertising will be using “grassroots” methods where customers will be given coupons for their friends to try Colloquy Grog Shop for the first time. The coupon will be an economic incentive for the newcomer to try Colloquy Grog Shop. The coupon also has the added force of a referral from a friend.

Industry Analysis

Colloquy Grog Shop competes within the general bar/coffee shop industry. The bar industry is a very broad industry. Participants in the industry do not seriously focus on specific niches. Sure there is a flavor to specific bars, but it is not an overwhelming trait. An example of this might be a sports bar that will typically have multiple TV’s with sports on. Beyond this “decoration,” there is not a significantly prevailing theme other than the place that serves alcohol. The value that bars offer is a place where someone can go to get alcohol in a social setting. A secondary benefit is an opportunity to meet people. Please see the Product and Services section for commentary on the effectiveness off bar’s ability for people to meet people.

To conclude, most bars have some sort of theme, but overriding theme is a place to socially consume alcohol. The coffee shop industry is made up of diverse coffee shops that typically serve coffee and assorted coffee drinks as well as various food offerings. Coffee shops are places where people will go to enjoy their favorite coffee beverage, to read a newspaper and relax, or to meet people and engage in conversation. This last purpose of a coffee shop is an unstructured, unstated purpose. It takes place at the hands of the patrons as opposed to a concerted effort by the establishment.

Competition and Buying Patterns

The competition comes from several different sources. Bars: there are many different types of bars or taverns. Some are better than others for meeting people, however, none have the business mission to bring together singles.  Coffee shops: coffee shops are typically an easy-going social setting that does lend itself for people to meet others. Conversations occur in part because of the historical underpinning of coffee houses, in part by virtue of the fact organized activities to bring singles together. Other events activities aimed at bringing together singles: one phenomenon that has started in New York City and Ovid to a few other larger cities (not including Portland) is an activity that has a long rectangular table that always has one seat opposing the other. People will sit down and with females on one side and males on the other (this seating arrangement is for heterosexual gatherings, the homosexual gatherings will obviously have the same sex on both sides) and will have a limited number of minutes (usually 10) to chat.

Typically, conversations can be be about anything, however you are not to reveal the Job/profession that you are involved in, beyond that, anything is fair game. The table rotates and you end up speaking with a lot of efferent people. You then create a list of the top five that you would like to speak with again and if the matching person also has you on their list, phone numbers are released to the two people. Another activity might be some sort of outdoor activity like hiking or rafting and it is organized as a singles event.

There are also other type of singles events, too numerous to mention. Lastly, there are resources like personal sections in local papers where people can post or respond to personal advertisements. Every person has their own method of meeting people, some more useful than others. Colloquy Grog Shop predicts singles will abandon or at least supplement their current method of meeting people with the Grog Shop’s activities as they are thoughtfully designed to achieve the goal of introducing like-minded individuals.

Strategy and Implementation

Colloquy Grog Shop’s implementation strategy is based on a targeted advertising campaign as well as word-of-mouth referrals. Colloquy Grog Shop is confident that the referrals will be an excellent source of business because of the uniqueness of their singles service as well as its sheer effectiveness. Colloquy Grog Shop will steadily build a loyal customer base. Competitive Edge Colloquy Grog Shop’s competitive edge is based on their unique approach to getting singles together using the structured conversation system.

This system was detailed in the Product and Services section, please refer to that section for more information. This system is a competitive edge because most bars/taverns to not have a niche that they are truly concentrating on. While every bar or coffee shop has a certain “flavor” and that is why someone will choose one bar or another, the flavor is only surface deep. The business model of the establishment is to sell alcohol and provide a social setting. Beyond these two values, there is little other genuine value that the establishments try to provide.

Colloquy Grog Shop is distinguished by the fact that their business model concentrates on developing value for customers beyond serving drinks. The Grog Shop develops an effective, albeit inherently structured or artificial, social setting that encourages meeting like-minded individuals. Providing the drinks is the source of income, an ancillary part of the business model. Generating value for the customers is the main focus, if the customers are happy then the revenue will follow assuming of course that proper ended serving alcohol is the distinguishing characteristic that will allow Colloquy Grog Shop to rapidly gain market share.

Sales Strategy

Stated in an earlier section, the competitive advantage of the structured conversation system is what will drive people to Colloquy Grog Shop and will develop long-lasting customer relationships. What will drive the bottom line beyond creating loyal customers, is revenue generated from sales of drinks and food. Providing a rotating selection of premium micro beers will be one sales strategy. Micro beers, particularly on tap, have great profit margins. The servers will be well trained in the different beer offerings to provide the customers with in-depth information.

Offering a rotating selection will encourage people to visit often and try new beers. Offering an ever changing selection of taps encourages repeat visits. Additionally, the choice of taps encourages people to order several, increasing the per person bill because  the taps offer a reasonable portion of one thing that in itself is not filling for a meal by itself, and taps are a community food where the table can order many taps and everyone gets to try some. Acknowledging that the food and drink are the venue drivers, the servers will be well trained in the products as well as upsetting.

Sales Forecast

The first two months will be used to set up the physical location, hiring personnel, as well as establishing vendor relationships getting an alcohol license. The third month will be the grand opening. Business during the second month will be understandably slow as a steady customer base takes time to build. By month four it is forecasted that sales will steadily grow.

The first two Directors of the company are my husband and l; and we alm at nurturing the company to becoming a major layer in the agricultural sector of the Ghanaian economy. In view of the saying noted above, this project work offers me an opportunity to develop a comprehensive business plan as a means of charting the way forward for the company. A Means for Charting the Way Forward for Businesses Planning, according to Akoff . is “the design of the desired future and the effective ways of bringing it about. This definition tends to encapsulate the essence of putting forward a plan for one’s business. Likening such a plan to a Global Positioning system (GPS), Simoneaux and Stroud  noted that as the user of GPS Is confident of not getting lost; so also is the user of a well documented business plan. This is because the plan assists the user in mapping out a journey for taking the company from where it is today to its intended destination by enabling the user to “Identify the milestones, obstacles, and desired routes along the way,” . The need for a business to have a plan cannot be overemphasized, for as pointed out by Barrow and Brown “perhaps the most important step in launching any new venture or expanding an existing one is the construction ot a business plan”. Skripsky, in buttressing this assertion noted that “a business plan Is absolute necessity in todays business climate. ” For this reasons, the Jokat Farms cannot succeed in carving itself out as a major player within the agricultural sector of the Ghanaian economy without a business plan.

In spelling out the main components of a business plan, Simoneaux and Stroud  noted such major headings as an executive summary, company overview. Description of products and services, market and competitor analysis,  company strategies, management and personnel, and financial review. Jokat Farms: An Intended Major Player in the Agricultural Sector lokat Farms, as noted above originated as a hobby some seven years ago, and as Its name implies, it is an actor in the agricultural sector of the Ghanaian economy. The company is the brain-child of John D.

Abbeo my husband who conceived the idea for the establishment of a farm project during his Executive Master’s degree studies this seven-year life, the venture has made investments in cash crops by engaging in the cultivation of cocoa, orange, and mango. From the perspective of livestock development; the company has established a piggery and poultry production farm. Whilst John Abbeo had a conception of establishing the company during his study, I have a conviction of developing a comprehensive business plan for the company in my engagement in a similar Master’s program with the same institution (GIMPA).

The development of a business plan for this company is intended to be a comprehensive development of the company by way of its corporate philosophy (i. e. , mission and vision), products and/or services concepts, marketing and competitive strategies, management and staffing requirements, and the financial plans of the company going forward. Methodology In developing a business plan for Jokat Farms, a qualitative research methodology would be employed. Such a research method, according to Creswell is “a means of exploring or understanding a social or human problem” an inquiry approach that. The deployment of the qualitative research inquiry approach will allow for an in depth exploration of Jokat Farms in relation to its existing business operations and other modus operand’. Feasibility and Scope of the Project Work The business plan, as noted above, will be developed for the Jokat Farms, but to ensure that the development of the plan becomes more focused, this project work ntends to concentrate on developing a business plan for only the poultry division of the company.

The reason for such a focus and concentration stemmed from the fact that the company has not anticipated facing problems with the marketing of the cash crops. For instance, companies such as Pinora Company Ltd, Blue Skies Company and the statutorily established Ghana Cocoa Board and its agents offer avenues for technical support and sale of the crops. However, the poultry sector is inundated with some challenges and calls for systematic planning in order to succeed.

It is important to note that, in general, there is no single official universal definition for a small firm. For research purposes, the US Small Business Administration (SBA) has traditionally defined Small businesses as businesses with fewer than 500 employees (SBA, 2001). However, other studies that have followed this definition of small business may have failed to detect and discriminate the differences and nuances between ‘larger’ small firms (e. . a firm with 450 employees and IJS$17m in revenues) and truly small firms (e. g. a firm with 7 employees and $540,000 in sales). Thus, the literature was examined to glean other definitions of ‘small’ business. According to Mukhtar (1998), a wide range of definitions is used in practice. The Wiltshire Committee’s definition of small business is often used by researchers and states that: ‘ is a business in which one or two persons are required to make all the critical management decisions such as finance, accounting, personnel, purchasing, processing or servicing, in only one or two functional areas.’ (Berryman, 1983). Micro, Small and Medium Enterprises in Ghana are said to be a characteristic feature of the production andscape and have been noted to provide about 85% of manufacturing employment of Ghana (Aryeetey, 2001). SME’s are also believed to contribute about 70% to Ghana’s Gross Domestic Product (GDP) and account for about 92% of businesses in Ghana.

SME’s therefore having a crucial role to play in stimulating growth, generating employment and contributing to poverty alleviation, given their economic weight in African countries. SME’s development can encourage the process of both inter and intra-regional decentralization; and, reckon force in catching up with economic superpowers of larger economies in the developed world. More generally, the development of SME’s is seen as accelerating the achievement of wider socioeconomic objectives, including poverty alleviation.

SMEs are complex and quite different from large business specifically in relation to resources (MacDougall& Pike, 2004), markets (Chetty& Campbell-Hunt, 2003); flexibility (Freel 2000), leadership (Fuller, 2003) and structure (McDonald & Wiesner, 1997). While the management and academic literature on the topic area of strategic planning has predominantly focused on the large business environment, here is now a growing body of knowledge related to the SME context.

The link between strategic planning and small business success has been researched and documented (Meers & Robertson, 2007) and the value and contribution from strategic planning for small firms is important (Beaver, 2007). Breaking down strategic intentions into actionable components and allocating responsibility for each of the components was considered an important part of successful implementation. In their empirical study of 267 firms, Joyce and Woods (2003) concluded that organizations using systems of strategic management made faster decisions and successfully mplemented change and innovation to bring about growth.

Even while acknowledging the importance of strategic and business planning, many small business owners and managers do not undertake the process, frequently citing lack of time, lack of familiarity with strategic management techniques and processes, lack of skills and confidence to begin the process, and lack of trust in internal stakeholders in relation to sharing business information as the reasons for non- implementation of strategic planning (Beaver, 2007).

Greater clarity is provided by Wang, Walker and Redmond (2007) where the owner’s motivation for being in usiness, whether profit or growth maximization compared with personal fulfillment, was presented in their analysis of SMEs’ engagement in strategic planning processes. Owner motivations are presented as a key determinant for engaging in strategic planning (Miller & Toulouse (1986). Further, in investigating owner managers and the practice of strategic management it was determined that SMEs had access to fewer strategic tools than other managers, and as a consequence, used fewer tools in planning (Woods & Joyce, 2003).

By their nature, SMEs have more limited human, material and financial resources (McAdam 2002). SMEs focus on allocation of resources to achieve their maximum short-term advantage, which frequently leaves them to respond to external influences as they occur rather than taking a proactive small business owners, “If you want to be more successful, then obtain more knowledge of the strategic planning process”.

Analysis of the external environment is a crucial step in strategic planning whether utilizing critical success factor (CSF), “what if” analysis, SWOT (strengths weaknesses, opportunities and threats), or stakeholder analysis. The assessment of external business conditions is onsidered essential to planning (Beaver, 2007). While the use of strategic management tools as an aid to business growth was confirmed, how managers in small firms handle strategic management in practice is still limited.

Research has demonstrated lower levels of familiarity and lower levels of use of strategic tools by owner managers compared with other managers in small firms (Woods & Joyce, 2003). The majority of small firms did not utilize the traditional tools and techniques of strategic planning in the study by Meers and Robertson (2007), yet their findings suggested that internal and external business ondition assessments were worthy of consideration.

Lewis (1983) used a model that stems from an analysis of the literature concerning the life-cycle of organizations. On the basis of an empirical research conducted through a questionnaire distributed to 110 owners and managers of successful small companies in the $1 million to $35 millions sales revenues range, they criticized past research for three main reasons:

• it assumes that a company must grow and pass through all stages (e. g. creativity, direction, delegation, coordination, collaboration Greiner (1993) of development or die in the attempt;
• it fails to capture the important early stages in a company’s origin and growth;
• it measures company’s size only in terms of sales revenues, so ignoring other relevant factors such as: value- added, number of locations, complexity in product line and rate of change in products or production technology.

Consequently, they proposed a non-deterministic approach, based on five different sequential phases of development (i. e. existence, survival, success, take-off, resource maturity) for a growing small firm, each of them eing characterized by an index of size, diversity and complexity and described by different management factors, among which business planning and control systems play an important and different role according to the particular growth stage of the firm. The Existence stage concerns business start up. Main problems are related to building a sufficient customer and sales base and to get the necessary liquidity to feed initial financial needs.

A critical resource is equity-owner’s entrepreneurial ability in managing by his/her relevant business functions, matching ersonal and business goals and finding proper monetary resources. When the firm reaches the second stage (survival) it has demonstrated to be a workable business entity. It has accumulated a minimum credibility in its market as is able to satisfy its customer base with its products. Critical resources are the same as in the previous scenario. Cash management is particularly critical, as cash flow from consolidated products have to feed financial needs from current operations and to support growth (i. . investments in new products, processes, management systems, human resources, etc. ).

In the survival stage, the company may either grow in size and profitability and move on to the next stage or remain at this phase for some time, though, in the above two stages, systems and formal planning are minimal to non- existent and the company’s strategy is simply to remain alive (in the first phase) or to consolidate its market position (in the second phase), drawing up a formal business plan (either for internal or external use, e. . for banks) or even sketching an informal plan in the entrepreneur’s mind may be very helpful to support growth management awareness (Blanchi et al. , 1998). In the last decade, there has been a growing trend of small firms utilizing formal business plans as a modeling tool in the start-up phase; a major reason for this phenomenon could be related to the fact that such a document is a pre-requisite to benefit by public financial grants.

Relatively often, however, many entrepreneurs have viewed drawing up their business plans as a bureaucratic constraint, rather than a learning tool which may help them to be aware of the business formula that is going to be adopted. The outcome of such a mechanistic perspective is a static and non-systemic document emerging from the aggregation of isparate data (e. g. commercial, financial, statistical, and macro-economic, etc. that do not allow entrepreneurs to understand the structure of the dynamic system where the firm will operate (Blanchi et al. , 1998). In contrast, conceiving business planning in a learning-oriented context may allow the entrepreneur to foresee the future stages of business growth and, consequently, to understand the proper time when to start to build relevant resources (e. g. money, management competences, formal systems and structures, machinery, brand reputation, customer base, etc. ) hat will allow the firm to move to the subsequent stages.

More particularly, a learning-oriented and dynamic approach to business plan drawing up is likely to support the entrepreneur to understand cause-and-effect relationships between cash flows generated or absorbed by consolidated and new products, as well as trade-offs between support and development investments. Another important decision area that could be mastered by a learning-oriented approach to business planning is related to the dynamics generated by commercial policies (e. g. those related to sale price, terms of payment allowed to customers and negotiated with uppliers, sale delivery delays, etc. on sales revenues, current income and cash flows in a short and longer time horizon (Blanchi et al. , 1998). For instance, too a sharp increase in customers’ terms of payment and inaccurate short term profit withdrawals by the equity-owner, together with too a high “debts-to-equity’ ratio, could undermine financial structure, because of delayed higher current financial needs caused by growing net working capital (Blanchi and Mollona, 1997). Such a dynamics would give rise to increasing negative bank accounts which – in spite of rowing trends in sales and low interest rates – might seriously threaten long term liquidity and profitability.

Other relevant issues to which business plan as a learning tool could be applied in the survival stage are related both to the possibility to simulate and fgure out future scenarios related to alternative growth and harvesting strategies and to timely detect internal limits to growth related to resource scarcity (e. g. production capacity). The third stage (Success) implies two alternative scenarios:

• disengagement;
• growth (Blanchi and Mollona, 1997).

In the first case, he firm has attained sufficient profitability, size and product-market penetration to ensure economic success. As far as the “rules of the game” in the firm’s market niche investing cash flows in new product development. The firm has grown large enough to require functional managers to take over some activities and tasks formerly performed by the owner. Also a professional staff techno structure is usually built and a controller drives a formal budgeting process, supporting functional delegation. In the second case, the business-owner is more concerned to build strategic resources and to plan future growth. Matching current with future cash flows requirements and building competences through hiring managers are critical issues in this sub-stage.

Not only a formal budgeting, but also a formal strategic planning process is enhanced (Blanchi et al. , 1998). In the fourth stage (Take-om the firm becomes more complex as more strategic business units are active, because of new product development and decision-making delegation. Key management factors are particularly the owner’s ability to delegate, the availability of significant cash flows (Hutchinson, 1986) to foster growth, and of qualified formal structures and systems. Both budgetary and strategic control are fundamental to the.

The owner tends not to perceive the company as his own creature, even though she/he is still the person having a major charisma as well as stock control. When the company enters the last stage (Resource maturity), it consolidates and controls financial gains generated by growth and retains, at the same time, the advantages of small size, related to flexibility and entrepreneurial spirit. In this last stage coordination between different departments and units is pursued by a stronger resort to formal strategic and operational planning (Blanchi et al. 998). Although in the last three stages (and particularly in the last two) formal and more sophisticated planning is used as a coordination mechanism, it is possible to assert that also in these scenarios – in spite of structured budgeting and planning procedures – the learning-oriented approach may play a significant role in fostering both an inter-functional view of the business and communication through trade-off analysis (thereby reducing the risks of bureaucratization).

Moreover, particularly when the firm operates in the success- growth stage, such an approach may also support the management of cash flow ynamics and a deeper understanding of dynamic relationships between the firm and its competitive system (Blanchi et al. , 1998).  Relationship between strategic planning and SME success Many studies have suggested that business failure is due largely to an organization’s failure to plan. As Norman and Thomas (2003) noted, ‘Without a clearly defined strategy, a business has no sustainable basis for creating and maintaining a competitive edge in the marketplace. This view is shared by numerous empirical studies that reveal a link between strategic planning and corporate success (e. g. Bracker et al, 1988). Strategic planning is therefore a very important research topic for organizational success. Studies have shown that the high failure rate among small firms, particularly among start-ups, can be attributed to the lack of formal business planning (Castrogiovanni, 1996). Studies have generally shown that planning is not only important for large organizations but for SMEs as well (Rue and Ibrahim, 1998).

Berman et al (1997) found that firms that plan produce better financial results than firms that do not plan. Lerner and Almor (2002) contended that planning lays the groundwork for developing the strategic apabilities needed for high performance. Planning does not guarantee business factors to business failures may be predicted and effectively address during the infancy of small business development when strategic planning is employed, thereby decreasing the failure rate for small business.

Where strategic planning has been adopted, businesses usually report that it benefits them (Baker et al, 1993). However, an extensive review of the literature shows that research on the impact of strategic planning on SME success is inconclusive. Below, we divide the research into two ategories: those that show a positive impact of strategic planning on SME success and those that show a negative impact. Considering the positive impact, Sexton and Van Auken (1985) found in their longitudinal analysis that the survival rates of SME that apply formal strategic planning are higher.

Boyd (1991) found that the probability of survival is substantially smaller for non-planning enterprises. Birley and Niktari (1995) found an association between the failure of small firms and a lack in business planning. Castrogiovanni (1996) linked the lack of strategic planning with higher mortality rates of SMEs. Miller and Cardinal (1994) claimed that planning produces better results than non- planning. Michalisin et al (1997) stated that firms can achieve sustainable competitive advantage from such resources as strategic planning.

The studies that examined the nature of business planning activities undertaken by small firms suggest that a relationship exists between enhanced sales growth and the implementation of sophisticated business planning techniques (Berman et al, 1997). A further study by Olson and Bokor (1995) of 442 small start-up firms supported the case for formal planning enhancing business performance, lthough this was found to be context dependent. Characteristics of the entrepreneurs -prior management experience or previous work history – were found to be significant.

The empirical literature widely assumes that strategic planning is a substantial success factor for small or new ventures. Accordingly, strategic planning increases not only the rate, but also the extent of success. Meta-analyses conducted by Robinson and Pearce (1984) and Schwenk and Shrader (1993) showed that the existence of strategic planning is significantly positively correlated with the success of an enterprise. Small firms can benefit from strategic planning particularly if it involves long-range thinking and systematic screening of opportunities (Schwenk & Shrader, 1993).

Robinson and Littlejohn (1981) found a positive relationship between strategic planning and financial success in their investigation of small business enterprises. Similarly, Jones (1982) found that small business ‘planners’ were shown to be more successful measured by return on assets than ‘non planners’. Besides, they were engaging more in anticipating changes in the marketplace and looking for ways to take advantage of these changes. Based on an analysis of 51 small enterprises in the U. S. Robinson et al (1984) showed that simple planning activities can have a positive influence on the success of small enterprises. Furthermore, the process of (formal) planning itself seems to have a positive effect in that it leads to a better understanding of the business and to a broader range of strategic alternatives. Ackelsberg and Arlow (1985) have proven that strategically planning enterprises achieve better financial results. This implies that expenditures related to between strategic planning and financial performance was discovered by numerous esearchers in different industries (Bracker et al, 1988).

Delmar and Shane (2003) examined the relationship between planning and enterprise development on the basis of 211 Swedish new ventures and found that planning reduces the probability of enterprise dissolution, thus increasing the probability of survival. According to the authors, this contradicts the widespread opinion that due to a lack of time, planning is less relevant for enterprise founders than other value-increasing enterprise activities. The authors likewise regarded planning as a value increasing activity itself, ven in a largely uncertain and unclear situation like the establishment phase of an enterprise.

However, studies that established a negative relationship between planning and SME success stipulated that although the majority of studies have identified a positive relationship between strategic planning and SME success, there are also those that have identified no relationship between these variables. Robinson and Pearce (1983) in their investigation of 50 small American banks; Gable and Topol (1987) in their study of 179 small retailers from North-East U. S. ; Gibson et al (2001) in heir investigation of 2,956 small Australian enterprises, and French et al (2004) in their investigation of 127 small Australian service enterprises).

Some studies even found a negative relationship between planning and success. For instance, O’Gorman and Doran (1999) demonstrated that the presence of a formal mission or mission statement does not seem to have any direct influence on the success of small enterprises. However, even those studies that could not show a positive relationship usually emphasized the positive impact of planning (Robinson and Pearce, 1984; French et al, 2004). 2. BUSINESS PLAN According to the International Federation of Accountants (IFAC) report (2006), there are two primary objectives to preparing a business plan.

The first is external; to obtain funding that is essential for the development and growth of the business. The second is internal; which is to provide a plan for early strategic and corporate development. This helps guide an organization towards meeting its objectives, by keeping the business entrepreneur and all its decision-makers headed in a predetermined direction, and by setting out how the company will be run for the next two to three years. In addition, well designed business plans provide an operational framework that allows the business to enjoy distinct competitive advantages.

This, in turn, should result in increased profits for the organization. A well developed business plan serves the following four primary purposes:

• To serve as an Action Plan – for the next 12 months
• To serve as a Roadmap – for the next two to three years
• To serve as a Performance Tool – on an ongoing basis
• To serve as a Business Promotions Tool

A business plan can help by breaking down a seemingly insurmountable task of tarting a business into many smaller and less intimidating tasks, each of which is assigned a due date, persons responsible, and detailed action plans. For existing businesses it enables greater focus on dealing with issues in an organized, coherent and systematic manner. Roadmap help keep you on track and moving in the direction you want to go. In the busy running of the day to-day business, it is very easy to lose sight of your objectives and goals. A business plan can help keep you focused and serve to help others understand your vision. The business plan depicts the flags on the hill’ and the oadmap of actions to get you there.

Your business plan is also an operating tool which, when properly used, will help you manage and guide your business towards its success. Your business plan will allow you to set realistic goals and objectives for your organization’s performance, and, if maintained, will also provide a basis for evaluating and controlling the organization’s performance in the future. Perhaps most importantly, a business plan serves as a business promotional tool.

You will probably require external financing to fund your business, and a business lan is one of the tools you use to persuade investors or lenders to finance business. Every business, regardless of its size, has some form of a strategic plan. In small enterprises, this may include e. g. the general ideas put forward by the entrepreneur; with increasing size of the enterprise, however, the strategic plan usually becomes more formal and elaborate. Such a document is called a business plan. It is the document which describes the enterprise’s strategy,  content and process, thereby presenting the vision of the enterprise and how the enterprise is going to attain its vision (Honig & Karlsson, 2004). The business plan can particularly serve as the basis of the strategy itself and as its formalized documentation. Usually, it is written to serve as a means of communication with external stakeholders, especially potential investors (Castrogiovanni, 1996). In addition, it can serve as a mechanism for internal control and goal-achievement.

Entrepreneurs who prepare a business plan become more conscious of their business instruments and their assumptions about how to become successful. In some cases, after devising the business plan, especially after making the financial calculations, the entrepreneur might even find hat his business is not likely to succeed, and thereby gets the chance to not go into business rather than engaging in one which is ex ante deemed to fail. This can be seen as a most positive outcome of the pre-start-up planning process (Kraus and Kauranen, 2009).

The pure existence of a business plan and the quality of the business plan are commonly regarded as indicators of the enterprise’s attitude towards strategic planning. They also provide insight into how much the entrepreneur is committed to his venture (“signaling effect”). Research has indicated that the probability of actually founding the new company is six times higher among ntrepreneurs who have written a business plan than among entrepreneurs who have not written a business plan (Heriot & Campbell, 2004).

Furthermore, the existence of a business plan has been positively associated with the success of the enterprise e. g. in an Austrian study of 458 young SMEs by Kraus and Schwarz (2007) and in a study of 312 nascent entrepreneurs from the USA by Liao and Gartner (2008). Similarly, a study by Schulte (2008) of 585 business plans from Germany also regarded pre-start-up planning as an important requirement for success. The business plan can be regarded as one of the most important strategic management nstruments in young SMEs.

The purpose of this business plan Is to raise $125,000 for the development of a Juice nd smoothie bar while showcasing the expected financials and operations over the next three years. Juice and Smoothie Bar, Inc. (“the Company’) is a New York based corporation that will provide a diverse line of Juices, smoothies, and small food products to customers In Its targeted market. The Company was founded by John Doe.

Products and Services

The Company will offer a wide menu of Juices, sandwiches/wraps, salads, a number of other specialty organic items.

All products will be organic food and beverage goods. The store focuses primarily on smoothies, juices, and wheat grass shots. The usiness also offers a wide variety of sandwiches, salad wraps, and breakfast products. The Company will pride itself on being a small, but full service health quick service restaurant that seeks to provide only the highest quality products in an Inviting atmosphere. The third section of the business plan will further describe the services offered by the Juice and Smoothie Bar.

The Financing Mr. Doe is seeking to raise $125,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan ‘OF5 Mr. Doe will contribute $25,000 to the venture.

Mission Statement

The Juice and Smoothie Bar’s mission is to provide customers with an expansive number of quality and freshly made Juices, smoothies, and small food products that are affordable and healthy.  The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the food service industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the xpected financials over the next three years.  The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market.

Company and Financing Summary

Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Juice and Smoothie Bar. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.  Through the Company’s location, Mr. Doe will be able to provide customers with an extensive menu of multi-flavored Juices, smoothies, and food products such as salads and wraps. Juice and Smoothie Bar anticipates that the business will earn 80% gross margins on the Juice and smoothie products offered by the business and approximately 75% to 78% on the food (salads, wraps, etc. The menu and full pricing offered by Juice and Smoothie Bar can be found in the fifth section of the business plan. Currently, Mr. Doe is sourcing a number of inventory and equipment suppliers for the ongoing and one time costs associated with this business. Mr. Doe anticipates that the kitchen equipment required in this business plan will total $17,000. A full equipment list is available upon request. Furthermore, Ms. Doe’s top priority (along with serving quality food) is to comply with all state and local laws regarding the sale of food and beverages the general public.

Within the Juice and Smoothie facility, the safe food handling practices) which have higher incidences of spoilage. Mr. Doe will ensure, at all times, the Juice and Smoothie Bar facility is in compliance with all health and food safety laws.

Strategic and Market Analysis

This section of the analysis will detail the economic climate, the Juice bar industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession.

This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period. ]The coffee and non-alcoholic retail shop (which includes smoothie and Juice bars) ndustry has experienced a healthy level of growth over the past decade. The U. S. Economic Census estimates that there are over 190,000 individual cafes and specialty health food restaurants in the United States.

This number is expected to increase at a rate of 5% per annum. While the growth rate of the number of establishments has increased 5% per year, the revenues generated per establishment have increased at a rate of 10% per year. As the country has become significantly wealthier of the last ten years, more and more Americans are eating out. Time has also become a concern for the average American family. Studies have shown that more than 40% of American families eat out at least one night per week. Americans, on the whole, have also become much busier.

More and more families now have two incomes, and as such, the tradition of staying at home and cooking meals is vanishing. Juice and Smoothie Bar’s average client will be a middle to upper middle class man or woman living in the Company’s target market. Common traits among clients will include: Annual household income exceeding $50,000 Lives or works no more than 15 miles from the Company’s location. Will spend $7 per visit to the Juice and Smoothie Bar In this section of the analysis, you should describe the type of customer you are seeking to acquire.

These traits include income size, type of business/ occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.

Competitive Analysis

This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your esearch on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages.

If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your less expensive than your competition.  Juice and Smoothie Bar intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company. Potentially develop a catering menu for local event planners. Implement a local campaign with the Companys targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.  Obtain a highly visible retail location that can be easily seen by pedestrians and drivers.   Mr. Doe intends on using a number of marketing strategies that will allow the Juice and Smoothie Bar to easily target men and women within the target market. These strategies include traditional print advertisements and ads placed on search engines n the Internet.

Below is a description of how the business intends to market its services to the general public. Foremost, the Company intends to source a highly visible retail location in either a stand alone property or within a highly trafficked strip mall type setting. This will allow Juice and Smoothie Bar to have instant recognition among local residents of its location and the types of Juice, smoothie, and food products offered. Juice and Smoothie Bar, on a regular basis, will distribute coupons/menus directly to residents within the target market as well as through local newspaper circulars.

FFF Ltd will be the publisher of Fast Food Fun (FFF) booklet. FFF is one of the answers to the increasing demands to educate all generations about healthy eating, it is aimed at increasing people’s knowledge, awareness and skills around healthy eating; as a result we hope to encourage people to eat well and lead healthier lives. The ‘local’ booklet, which will be published monthly, will be directed at fast food lovers of all ages throughout Bedfordshire initially, growing through counties around Britain.

The management of FFF Ltd is aiming to achieve a total combined readership of 20,000 in year one, increasing to more than 50,000 by the end of year three. FFF will be complimented by a website and an app that gives the customer all the information and offers at their fingertips. Distribution points, organisational sales, and direct mail to target market segments will be utilised to build revenue. In the UK market place there were 61,365 companies engaged as fast food restaurants and takeaways in 2011.

Consumer expenditures for fast food and home delivery industry in the UK grew by 6% in 2011, to 10. 28bn, the overall fast-food and home-delivery industry has remained robust, in spite of the economic downturn, Key Note Report – Fast-Food & Home-Delivery Outlets 2012. Publishing is a high margin and high profit business, the key to success is quality content and successful marketing; the franchising of the ‘local FFF booklet’ to other counties of England, Scotland, Wales and N. Ireland will be an additional revenue stream which will be undertaken from month six.

A loan of  25,000 and the successful execution of FFF Ltd. ’s plan will produce revenues and profit of more than 90,000 & 5,000 respectively in year one, 180,000 (25,000) in year two, and 210,000 (? 60,000) in year three. The lowest margins are in year one, reflecting start-up, printing and marketing costs, the development of internet support and the franchise framework. With production and fulfilment services outsourced and the general and project management in place (Robert and Sue Moss, the AMC Ltd owners), FFF will only have the need for artistic & editorial as well as financial and legal expertise. Figure – FFF Projected Sales Revenue by channel

The project, which begins in January 2013 with be governed by the use of Prince2 project methodology and will have the following outline timelines and milestones. FFF has outlined a process (and milestone) to recruit the contract artistic & editorial expertise that is required to draw together the booklet and the aligned website and app. The legal and financial expertise will be hired as ‘contract labour’, on individual set briefs. Moreover, any additional sales persons required will be hired as temporary contract labour via an agency.

Appendix C – Strategy and Implementation Summary The strategy at FFF is to serve a large clearly defined local market well, by targeting the identifiable markets in a ‘taster’ county (Bedfordshire) with… 1. an additional advertising channel for the FF provider 2. information, related memberships and offers/discounts for the consumer and 3. a franchise framework for the concept for replication around the country A thirst exists for not only information about what we eat but also where we can get it for the best possible value, especially in this tough economic climate.

The initial issues which will be published in early summer of 2013 will reach out and assist or inform the target markets. The strategy will be to combine direct selling, direct mailing, and subscription or membership to build up circulation through multi-channel distribution and to give the providers an additional advertising channel direct to their target market; with the added benefit of a scalable business model that can be replicated in the other 85 counties. Marketing Strategy The advertising revenue will be generated by outlining the benefits via direct mailing to the local businesses in the first instance, and gauging the response.

This would then be followed by an introductory phone call and then finally by a visit to the premises and discussion with the owner or manager. Booklet sales will be generated primarily by using direct sales methods, at locations where the target market will have a ‘foot fall’ such as shopping centres, universities schools and youth clubs, there will also be use of direct mailing from mailing lists, there are several database lists available to purchase. The promotional runs will be 50 page promotional booklets initially with press runs of 1,000 copies for pre-issues A and B in month 4 and 5 of operation respectively.

All costs associated with the promotional runs will be included in the advertising and promotion budgets for those months. A total of  2000 in the first year will be spent on direct mail focusing on growing the readership, as the subscription base grows the focus will gradually move to franchise development. Finally, sales to retail outlets through distributors will also be accomplished; key distributors will be contacted again in the near future, and have already expressed interest in the publication. Distribution Strategy

Distribution of the booklet will be through a number of channels, they include… 1. direct selling (projected to be 70%) 2. direct mailing (projected to be 20%) 3. retail channels (projected to be 10%). All sales will be booked at full revenue, fulfilment costs will be expensed. Advertising revenue will be generated in a number of different ways, and include face to face sales people, telephone sales and direct marketing; all advertising revenue will be booked at full value with fulfilment costs being expensed.

There are more than 86 counties in the United Kingdom, with 39 in England, 13 in Wales and 34 in Scotland; all franchise revenue will be booked at full revenue with administration costs being expensed. A number of strategic alliances can be explored and exploited between FFF and FF providers, radio station and other publications, focus will be given to this activity once the booklet is published and established. Promotion Strategy In addition to advertising, direct selling and mailing FFF will endeavour to use public relations exposure to benefit and promote the FFF brand.

Robert Moss will seek to appear and be interviewed on local T. V and radio programs announcing competitions and local sponsorship to generate interest and calls either for subscription, advertising or franchising information. A promotion strategy for subscription sales through retail organisations will include percentage rebate of the first year’s subscription revenue. Pricing Strategy Advertising in the FFF booklet will be  60 per page per issue 1. A one-year up front subscription will be  600 2. A two-year up front subscription will be 960 The FFF booklet will sell for ? 1. 00 per single issue through distribution points. 1. A one-year subscription will be 10. 00 2.

A two year subscription will be  18. 00 Website private membership access will sell for  10. 00 per quarter. 1. A one-year subscription will be 20. 00 2. A two year subscription will be  35. 00 The county franchise will sell for ? 1,000 per month for a yearly license. 1. A one-year up front franchise license will be 10,000 2. A two year up front franchise license will be  18,000