Business Plan

Exam 2 1. How a clearly defined vision helps a business A. Vision produces direction – companies who spell out the vision for their company focus everyone’s attention on the future and detail the path a business will take B. Vision determines decision C. Vision motivates people- a clear vision excites and ignites people to action D. Vision allows for perseverance in the face of adversity. 2. Define strength, weakness, opportunity, and threats a.

Strength- are positive internal factors that inhabit a company’s ability to accomplish its missions goals and objects b. Weakness- are negative internal factors that inhibit a company’s ability to accomplish its missions goals and objectives c. Opportunity’s- positive external forces that a firm can exploit to accomplish its missions goals and objectives. d. Threats- are negative external factors that inhibit a company’s ability to achieve its goals and objectives. 3. Three types of competition Direct, Significant competitors, and indirect competitors.

Direct Competitors – offer the same products and services Customers often compare prices Deals among these competitors when they shop. Significant Competitors – offer some of the same services or similar products or services Product or service lines overlap but not completely. Indirect – offers same or similar products only in as small number of areas. 4. Three types of strategies- a. Cost leadership- Strives to be the to its competition in the industry b.

Differentiation- A Company seeks to build customer loyalty by positioning its goods or services in a unique or different way. c. Focus (niche) – a strategy in which a company selects one or more market segments, identity’s customer special needs wants & interests & offers them with excellent service designed to meet their needs. 5. Define complete advantage- the aggregation of factors that sets a small business apart from its comptetiors and gives it a unique position in the market segments to its competition. 6. Purpose of easibility analysis- a process to determine whether or not an idea can be transformed into a valid business. 7. Elements in 5 forces model- * Rivalry among competitors in the market(strongest force) Barraging power of suppliers to the industry, bargaining power of buyers, threat of new entrants to the industry, threats of substitute products or services. 8. Definition of business prototyping- a process in which entrepreneurs test their business models on a small scale before committing serious resources to launch a business that might not work. . Three aspects considered in financial feasibility analysis- * Primary research- information that the entrepreneur collects first hand and analyses * Secondary research- information that has already been compiled and is analyzed for use often at a very reasonable cost or sometimes even free. * Focus groups- a market research technique that involves enlisting a small number of potential customers (usually 8-120) to give an entrepurerure fed back on specific issues about a potential product or service.

Or special idea it’s self. 10. Two functions of a business plan- * Guides an entrepreneur by charting the company’s future course of action and devising a strategy for success. * Provides a battery of tools – Mission statements, goals, objectives, market analyses, budgets, financial forecasts, target markets, strategy’s to help entrepreneur lead the company. 11. Most common form of business ownership- Sole proprietorship. 12. Advantages/Disadvantages of sole proprietorship Advantages Simple to create, least costly to being, profit incentive, total decision making authority, No special legal restrictions, easy to discontinue Disadvantages * Unlimited personal responsibility, limited skills & capabilities, feelings of isolation, limited access to capital, lack of continuity in business. 13. Types of Corporations – * Domestic- a corporation that does business in the state it was founded in. * Foreign – a company doing business in a state other that where it was founded. Alien – a corporation found in another country but doing business in the U. S * Closely held – a corporation whose shares are controlled by a relatively small number of people Family
elatives friends Employees. * Publicly Held – A corporation who has a large number of stock holders usually traded on the stock exchange. 14. Advantagesdisadvantages of corporations- Advantages – Limited liability of stock holders, ablitlty to attract capital , ability to continue indefinitely, Transferable ownership.

Disadvantages – Cost and time involved in the incorporation process, double tax, and potential for diminished managerial incentive, legal requirements and regulatory red tape, potential loss of control by founders. 15. Types of partnerships – General Partnership – Partners who share in owning a business and who have unlimited personal liability for partners dept. Limited Partnership – Partners, who make financial investments and partnership, do not take on an active role in managing a business, and whose liability is limited to amount invested. 16.

Define Franchising – A system of distribution in which semi-independent business owners pay fees and royalties to a parent company in return for the right to become identified with its trademark, to sell its products or services and often to use its business format and system. 17. Benefits of Franchise – A business system that is proven , manager training and support, brand name appeal, standardized quality of gods and services, national advertising program, financial assistance, proven produces and business formats, combined buying power site selection and territory protecting, greater chance of success. 8. Three types of franchise * Trade name – involves a brand name without distributing particular products exclusively under the franchiser name * Product Distribution – Involves a franchises licensing a franchisee to sell specific products under the franchisors brand name and trademark though a selective limited distribution network. * Pure – involves providing the franchisee with a complete business format. 19.

Definition of piggy back franchise- a method of franchising in which two or more franchises team up to sell complimentary products or services under one roof. 20. Multiple unit Franchising – a method in which a franchiser opens more than one unit in a broad territory with in a specific time period. 21. Franchise Disclosure Document (FDD) – a document that every franchisor is required by law to give potential franchisees before any offer or sale of a franchise outlines 23 important pieces of information. 2. Advantages /Disadvantages of buying an existing business – * Advantages – a successful business may continue to be successful a successful business may already have the best location employees and suppliers are already established, equipment is already installed and productive capacity is known inventory is in place and tide credit is established new business owners hit the ground running. Disadvantages – It’s a looser the previous owner may have created ill will Employees inherited with the business may not be sustainable the locating is unstable equipment and facility’s may be obsolete change and innovation may be hard to implement inventory may be out of date or obsolete account receivables may be less that face value business may be overpriced. 23. Steps to acquiring a business the right way. a. Analyst your skills and ability’s b. Prepare a list of potential candidates c. Investigate and evaluate candidate business to find the best one d. Explore financing options . Ensure smooth transition by communication with employs. 24. Acquiring procedures – * Identify and approach candidate * Sign the nondisclosure statement * Sign letter of intent * Buyers due diligence investigation * Draft the purchase agreement * Close the final deal * Begin the transition 25. 5 Ps of negotiation * Preparation – examine the needs of both parties * Poise – Remain calm during the negotiation. * Patience – don’t be in such a hurry * Persuasiveness- know what most important positions are articulate them. * Persistence – don’t give in a first sign of resistance to your position.

Yangon Institute of Economics Department of Management Studies MBA Programme Business Plan for POINT footwear manufacturing and distribution Submitted by : Nay Zar Myo Roll No : 36 15th Batch MBA Plan Outline 1. Executive Summary 2. Company Summary 3. Products 4. Market Analysis Summary i. Market Segmentation ii. Distribution Strategy iii. Market Trends 5. Competition and Buying Patterns Competitive Edge 6. Strategy and Implementation Summary Sales Strategy 7. Management Summary 8. Financial Plan i. Important Assumptions ii. Break-even Analysis iii. Projected Profit and Loss iv. Projected Cash Flow v. Projected Balance Sheet vi.

Business Ratios 1. Executive Summary POINT is a recent start-up manufacturer of an upscale ladies foot wear line (in order to substitute Foreign foot wears market) targeted at females between the ages of 16 and 65. POINT not only develops the foot wear line, but supports it with advertising and promotion campaigns. Pyay Lai Manufacturing and Trading Company plans to strengthen its partnership with retailers by developing brand awareness. POINT intends to market its line as an alternative to existing foot wear lines, and differentiate itself by marketing strategies, exclusiveness, sophisticated design and technologies and high brand awareness.

The key message associated with the POINT line is classy, upscale, versatile, and inexpensive footwear. The company’s promotional plan is diverse and includes a range of marketing communications. In the future, the company hopes to develop lines of accessories, raw materials (rubber, leather, velvet) and foot wears for men, women, and children. The Figure is drawn based on the Income Statement of the year 2000, 2001 and 2002 when the company manufactured and distributed only traditional slippers (leather and velvet) for men, women and children. Keys to Success 1. Seek out feedback from our customers (teens and ad

Weddings, Events, & Beyond E-Business Plan Mary Weathersby Capella University May 15, 2011 I. Company Description Weddings Events & Beyond opened our doors in May of 2002 as a partnership. We have been continually expanding and now are a large firm with six full time planners, six assistants, four full time Accounting and Finance employees, two full time Human Resources employees, my partner, and myself. At this time we have a website that gives examples of our event planning capabilities with some pictures of events we have planned.

We have decided to take the next step and implement a more advanced site where our customers can see the stages of their event as it is planned. It is our goal to allow the customer to log into our site at anytime and see what the plans for their event are and request changes if it is their wish. We would also like to implement a Secure Socket Layer so that our customers can pay their account on-line. Making our company more accessible through use of the Internet will help us to expand to the outlying areas that before now were more difficult to reach.

The business model that Weddings Events & Beyond is striving to become with the Internet site is that of a “multi-channel merchant” or “bricks and clicks” merchant. This is the type of firm that has both a physical store, as the primary channel of income, and is introducing an online service. (Laudon & Traver 2010 p. 595) II. Marketing Plan Internet marketing is a little bit more complex than regular marketing in that we as a firm will have to show that we have the capability to develop a more positive and long term relationship with our customers. Laudon & Traver 2010 p. 362) We must develop a marketing plan which brings in all ranges on new customers from the bride and groom and their guests all the way to the business whose events we will be planning. We will be planning to show the consumer our unique qualities and capabilities such as the fact that every step of the planning of their event will be available for them to view on our site. This will require opening an account for each customer where they can log on to receive the most up to date work done on their event planning.

This will also allow them to request changes until the closing date of their event. The following categories will be included in our marketing plan: A. Target Audience 1. Customer characteristics: We as a firm will be targeting the bride, the groom, and their families for the weddings and for the events we will be targeting the business community and upper to middle class families who normally do not have the time to plan and organize their special events. 2. Age demographic: Will be adults from the 20-50 year range. 3. Customer geographic: At this time we service only the state of Arizona.

We travel all over the state as needed by where the event is being held. After implementation of e-business we will be targeting the states of California and Nevada as well. Eventually with expansion we plan to cover major cities across the US. (Laudon & Traver 2010 p. 345 – p. 367) B. SWOT analysis (strengths weakness opportunities threats) 1. Strengths: One of the main strengths we possess is that we are one of only four companies in our area that plans Weddings and Events. We will be the first among the four that will be making a more immediate Internet presence.

Making use of our services through the Internet will make us more accessible and give us a wider reach for customer than any other firm. We are the most established firm having been in the business making a name for ourselves for the longest period of time. Our planners have at least an associate’s degree in planning. They have been planners for a minimum of three years and have strong customer service skills. 2. Weakness: At this time we have no planners trained in e-business as will be take approximately four weeks to accomplish.

We are right now in only the state of Arizona, but with the implementation of our e-business we plan to expand to cover California and Nevada. In order to do this we will need more planners and assistants. Hiring new people means we need to start training in all areas of our business including e-business models. This training will take time and resources to accomplish. We will also begin competing with other firms located in California and Nevada. These competitors will be listed in the competitive analysis portion of this plan. 3.

Opportunities: We are convinced that the opportunity for the firm with the implementation of an e-business presence is great. Being the first firm to make ourselves more accessible to people on the go gives us a greater advantage over our competitors. The implementation of our e-business will allow us to reach outside of Arizona. This will eventually help in leading to country wide expansion. We will be able to advertise our business on affiliate sites such as Invitation sites, bridal dress sites, catering sites, and bridal registry sites.

With the implementation of Internet marketing through ads, social networking, and search engine optimization we will be able to open up a market that was before now closed to us. 4. Threats: In becoming an e-business we will be implementing both a CRM plan and an ERP plan. We will now be competing with other Event Planners through Internet channels. Occasions, is just one of the other firms that we will be competing with. This firm is introducing a software program that helps the customer plan their own special event.

We will need to convince these customers that using our firm will give them better results and free up their valuable time. We will be incurring larger travel expenses as well as payroll increase. If our e-business plan does not show a profit in the next 24-36 months we could lose both the e-business and our “bricks and mortar” store. We would have a harder time compensating for the losses. The price of implementing these new e-business models will be substantial and if our new Internet site does not bring in the expected increase in business it would be very hard to pay off these expenses.

We will need to make sure that we are optimizing our Implementation of the Website through, search engine keywords and other Internet sites that would bring the consumer back to our site with as few clicks as possible. To decrease the threat of our competitors we will need to stay on our toes and keep our website updated as well as making sure that we are ready for anything. C. Competitive analysis: The leading competitors in our field are: TLC Wedding Consultants, which is at this time a two man operation which deals exclusively with weddings and holy communions. Occasions, this is a newly formed Event planner whose main ervice is a software program that helps the customer to plan their own events. Specialty Events, this is a three party team that organizes business events exclusively. This company plans seminars and company parties. They have not at this time branched out to work any other events. Competitors brought in to play by our expansion into an e-business will include new business in Nevada and California. Weddings by Nancy, is a firm out of Nevada who have been around approximately three years. They have a site that shows pictures of weddings they have planned and gives contact information for their store.

At this time they are strictly a “bricks and mortar” firm. Their information website is ranked fourth in the search engine ranking. Events for Every Occasion is out of Nevada. They have three trained planners. Their website gives information about the types of events they plan as well as pictures and has reviews from previous customers. This site is currently ranked second in search engine results. Anywhere Anytime Events is a full service firm of three planners working in California. This firm has no website at this time. They do have newspaper and television ads and a client base of about six regular firms that they plan events for.

California Event Planners is full service firm with a website that has customer reviews, photos, and contact information. They ask for permission to e-mail visitors to their site, they are at this time ranked number one in search engine results. This is the site we need to bump and take over in search engine results. Our firm, Weddings Events & Beyond, is the only full service planner in a 100 mile area. We are the largest firm and will be the first to become a major presence on the Internet offering to allow customers access to their planning results 24 hours a day. D.

Marketing Strategy 1. Promotion: We will be promoting our firm through Social Networking on both Facebook. com and MySpace. com. It is our intention to put our name and services on the websites that reach the largest population possible through as many internet sites as possible. Social networks are one of the most used ways of communication with others. Facebook. com logged over 300 million members worldwide in September of 2009 and had 92 million unique visitors while MySpace. com logged 130 million members worldwide with over 64 million unique visitors. (Laudon & Traver 2010 p. 21) Promoting our name and services on these two social networks would help us reach a significantly larger audience that any of our competitors. We will also be using the services of Search Engine Optimization to help us use the right key words to make sure we are accessible to the customers looking for wedding and event planners. In order for the customer to find us using a search on the Internet we need to be able to be located by search engines. Through the use of Search Engine Optimization we will know the appropriate terms for use in order to be more easily found.

Using this service will also help to ensure that we are linked to other sites that will put us closer to the top of search results. (SEOmoz) 2. Advertising: We will be adding a new form of advertising to help us with moving into the new e-business market. In addition to our usual advertising of yellow page and newspaper ads we will also begin Internet marketing. We will be using two forms of Internet marketing: “Viral Marketing” which is the “process of getting customers to pass along a company’s marketing message to friends, family, and colleagues, which is the online version of word of mouth. (Laudon & Traver 2010 p. 390) This type will help get our name out there faster than in the real world. The second form of Internet advertising we will be using is that of “direct e-mail marketing”. This type of marketing is highly effective. We will be sending e-mails to a group of Internet users who have shown interest in our services at one time or another. With this kind of advertising we would send out regular e-mails to people who have pulled up our website and asked to receive e-mails from us. The customer would then have to “opt-out” to stop receiving the e-mails. (Laudon & Traver 2010 p. 43) This form of advertising is a mix of both on-line and off-line marketing since we will be using both the printed off-line version as well as having Internet advertising. 3. Public relations: Both through word of mouth and viral marketing we will be working on our public image helping to increase our public relations. As long as we stay true to our word and keep our customers happy this should not be a problem. III. Customer Relationship Management (CRM) Customer relationship management (CRM) is the repository of customer information it will record and save all contacts a customer or prospective customer makes with our firm.

This plan will also generate the customers profile from what they initially gave us upon entering our site through what categories they view concerning interest in types of events. There will also b e features that are possible for the event. (Laudon & Traver 2010 p356) This is how we will know what our customer is interested in and give a general idea of their price limitations so that an initial plan can begin being implemented. The touch points that we will be using are: telephone network, Internet, mail & fax, staff contact, and our sales force.

As part of our Internet touch point we will be asking visitors to our site for personal information and permission to e-mail them. We will be collecting data through sites that deal with all aspects of weddings and other events as well as sites that deal with bridal registry sites, incitation engraving sites, and visits to our facebook and MySpace sites. 1. Map of customers relationship with the firm. This will let us know how we got this customer as well as this customer’s preferences and if they refer any new customers. We will also be keeping a log of emails and phone conversations with customers throughout the planning of their event. . Product and usage summary. This will let us know which of our services each customer is looking for and how often they return to us to help plan other events. 3. Profitability measures. This will let us know how well our Internet advertising is doing and if it is bringing in new customers. 4. Contact history. This will be summarizing the customers contact with the firm across delivery channels such as Internet and hard copy advertising. 5. E-mail company responses. This will help us to know how our email advertising is doing and how many people have come to our site and signed up for email from us.

IV. Architecture plan Weddings Events & Beyond will require a multi-tier architecture plan. Since we already have a web page which lists our services and how to contact us we will need to build on this site to include, customer contact information, plans for events, security for customer payment of services, email integration which will allow customers to correspond with their planner, and a section that will allow employees to communicate with each other concerning finance, human resources, and management communication within the firm.

This will require us to outsource to another company to produce the necessary hardware components. We will be implementing the following components: 1. An e-commerce website that will be hosted by NetSuite. com allowing us to scale our business with an application that ties the business together across E-commerce, Marketing, Supply Chain Management, Customer Relations Management, Financials, and Human Resources. This website will expanded to help track customer contact, customer event plans, customer e-mail capabilities, a Secure Socket Layer for customer payments, and employee communication capabilities. . New staff that will be in charge of maintaining this system as well as training staff on the new system. At this time we estimate that we will need two to three new employees that will do this. 3. New equipment and software to facilitate e-business. The new equipment will be computer systems that will be networked and implemented with the modules for our e-business expansion. The software will also be for working with all NetSuite models including ERP, CRM, and SCM, Competitive Vision, our competitive tracking firm, and BPIR our new benchmarking partners.

V. Enterprise Resource Plan (ERP) The ERP plan that we will be implementing will make access to financial data and all aspects of the Human Resources Department easier for our staff. This will allow the staff to run credit information on prospective clients as well as work up account information so our finance department can accurately prepare invoices, spreadsheets, and all other accounting data. This will also allow planners to input their own expense reports for quicker calculations.

The Human Resources applications of the new system will make it easier for staff to check their time sheets, medical coverage, 401k, vacation and sick day’s status, and commission status. This should cut down on the amount of time needed by that department to do this for each staff member. The implementation of these two systems will also make it easier for management to review all of this data without the need of printing multiple reports freeing up the time needed for this from all departments. VI. Supply Chain Management (SCM) The scope of our SCM needs at this time is limited to information and inancials. We will be working with NetSuite in this area as well, to maintain integrity with our other systems. We are a service organization that helps our customers decide and plan the aspects of their special event. We work closely with caterers, floral designers, Churches and reception halls. We do not make deposits or pay for any of these things. However, we do keep tabs on what stage of planning these services are at, in order to keep the customer up to date but at the same time not bogged down by all these companies calling them. (Laudon & Traver 2010 p. 77 1. Information chain: We will need to maintain customer information so that we can keep up to date information on our site for each customer. The information we will need concerning the customer is: A. Name B. Billing address C. Telephone number D. E-mail address E. Vender Preferences (so we know who we will be working with) 2. Vender information chain: We will also need to maintain information on all the vendors that we work with as well as full descriptions of what each vendor offers. The information we need from each vendor is: A.

Name B. Address C. E-mail or website D. Telephone number We need to have this vendor information so that the customer knows what each one offers and can save the time it takes to call around looking for the right vendor. This will help to narrow the choices thus making it easier on the customer. The knowledge of what each vendor offers is crucial in helping to save time for our customers. We would also like to add links for the different vendors to our site so that the customer can shop around from our site in as few clicks as possible.

In return the venders would also have a link to our site posted on theirs. 3. Financial flow: For this area we will need to make it possible to maintain the customer’s credit card number and verification code. This will also make it possible to help our customer even further by allowing us to keep records of what the customer wants from each vendor and verify payments have been made. VII. Competitive Tracking (Knowledge Management) We have found that there is a need to implement a program for competitive tracking in order to better understand our business environment.

The information that will be gained from a competitive tracking system will help us in making key business decisions for the entire firm. In order for us to remain competitive with other planning firms we need to understand what they are doing, (Competitive Vision 2011) We have decided that it would serve our interests best at this time to get a software program through Competitive Vision. This program is a web based competitive intelligence solution offering as easy way to collect, organize, and evaluate competitive information.

Some of the benefits of implementing this software would be: * Better understanding of our competitive landscape * Enhancing our strategic planning process * Facilitating more effective information sharing among our shareholders * Lowering costs related to the competitive intelligence effort. Through this software we will be able to view competitive information in an SWOT business model. We will be able to create industry and competitor profiles. The competitive tracking information will be consolidated for easier understanding and be managed in real time. The cost of this software program will be $ 500. 0 per month for the first five users. As we continue to expand into other cities across the United States we will be able to expand our user base at which time our monthly fee would go up to compensate for those additions. Implementing this competitive Intelligence software will take the guesswork out of finding out what our competitors are doing. VIII> Benchmarking. Benchmarking will be in partnership with BPIR (Business Performance Improvement Resource) which is a firm that helps in the process of finding how to improve our company’s performance standards and researches the performance standards of our competition.

We want to keep a customer service rating of 100% satisfaction and a performance rating of 95% and higher. This is our current level as we make the plans for implementing our e-business. The changes that are going to be happening over the next 8-12 months should no cost us the satisfaction of our customers. Through BPIR we will be conducting a quarterly review in the following areas: 1. Best Practices which are the practices that are known to produce the highest results. 2. Performance Measures which is a periodic review to see whether our staff is performing at their peak. 3.

Self Assessment which is an assessment each employee takes showing how well they think they are doing 4. Competitor Analysis which is a system that helps to show how our competitors are doing and what level their benchmarking is at. 5. Website reviews which is how we will determine how effective our website is and where we rank in search results. This will help us to make sure that we are able to continue being the first choice of our prospective customers. IX. Conclusion. As you can see there are quite a few things that will be changing once we break into the world of e-business.

We are looking forward to the time when this implementation and training process are completed. As it is we have a long hard road ahead of us. But, taking our “bricks and mortar” firm to a “bricks and clicks” firm will be step in the direction of progress which every firm must go through eventually. This is a large step but one we must take if we are to stay ahead of our competitors. This type of business model fall under the description of an e-tailer, meaning we have a regular firm with an Internet website that handles the Internet side of our business. Our website will be based on a sales revenue model. (Laudon &Traver 2010 p. 8 & 70) The implementation plan we have outlined will have an economic impact on the business because the initial cost of implementing the ERP, SCM, and CRM will be expensive. We estimate total cost of core services to be in the price range of $ 100,000 dollars. This includes the website development and hosting. The cost of competitive tracking and benchmarking will be separate as well as the man hours that it will take our people to become trained. The cost of competitive tracking will be $500 dollars per month through Competitive Vision. The benchmarking will be approximately $500 dollars through BPIR ever quarter.

The risks we take in this are that we would be putting all this money out to become an e-business and there are never any guarantees that we will be successful. By implementing our e-business we will be mortgaging our current business model but, this would be the case with any kind of expansion process. The benefits of this plan are that we would be able to reach a larger customer base and begin servicing California and Nevada before moving into those areas full scale with a new store and new employees. Future forces that would affect us would be if any of our competitors also implement this same idea.

We are looking at this happening in the next five years but we plan to be well ahead of the game by that time. This plan at the onset will mean more work for our management staff but once it is fully implemented and our people are fully trained they will be able to do twice as much work in half the time. This will free up more time to give our staff the necessary evaluations to verify they are doing their jobs right. As you have seen every member of the firm will need to be trained in the new systems and we will need to hire new employees who have the necessary e-business knowledge to help us succeed.

The final thing we need to include here are the timelines for implementation and training. The implementation is estimated to take between six and eight months. Executive training will begin around two months before completion and be accomplished in three hour increments, three times a week for four weeks. This is so that we will be ready when full implementation is accomplished. Staff training will begin one month prior to completion and will be done in three hour increments twice a week for four weeks ending on or around the completion date.

X. References Laudon, K. C. , & Traver, C. G. (2010). E-commerce: business, technology, society. Upper Saddle River, NJ. Prentice Hall. SeOmoz. (n. d. ) The beginners guide to SEO. Retrieved April 15, 2011 from http://www. guides. seomoz. org . Competitive Vision. (n. d. ) Retrieved June 1, 2011 from http://www. competitivevision. com BPIR (n. d. ) Business Performance Improvement Resource. Retrieved June 3, 2011 from http://bpir. com NetSuite (n. d. ) Retrieved on May 24, 2011 from http://www. netsuite. com

A business plans describe how to start a business,  grow an existing business,  finance a business, and  how to manage and market a business at.  It  addresses  management, location, advertising, and financing.    A business plan is an operating  manual.

Why Precision Auto Detailing needs a business plan.

Precision’s business plan should minimally cover marketing.  Chad and Kyle should focus on financing and profit from new marketing opportunities. Precision’s business plan should focus on ow much money the company needs, what the money will be used for, and how lenders will be repaid?

What the business should plan include

According to the Small Business Administration, the essential elements of a business plan are:  Executive summary,  Market analysis, Company description, Organization and management

Marketing and sales management, Service or product line,  Funding request, Financial statements, Appendix

The executive summary for Precision Auto Detailing is the three paragraph story of f how Chad and Kyle purchased and grew the business.  It would also state the goal for additional financing and growth plans.

The market analysis describes the auto detailing industry.  It should also include a detailed analysis of local competitors, describing how profitable those businesses are in comparison to Precision.  The market analysis will explain why and how Precision Auto Detailing has gained a competitive edge in the local auto detailing market.  Finally, it must convince a lender that a loan will increase the company’s competitiveness and bottom line.

The company description says that Precision Auto Detailing is in business because, then describes all the reasons – markets and customers the company serves and what are the specialties.

The organization and management section is where Chad and Kyle put their resumes.  It details who is the primary financial and operation manager is and how they divide those duties.  This section shows in detail how their personal work has made Precision grow and be as successful as it currently is.

The marketing and sales management section describes Precision’s’s advertising plan.  It should include radio and television advertising, business cards, and brochures.

The service description section show what Precision’s customers get for their money.  It should define what auto detailing is, including a description of detail services that they may not offer now but plan to in the future.  A secondary section should describe  services that can be offered once the bedliner equipment is purchased.

The funding request section will formally request a loan of $30,000 showing a breakdown of what will be purchased and how the money will be used.  The breakdown should address working capital to cover increased  personnel, advertising, and  operating costs.   This section describes how the lender how they will be repaid and requests terms of repayment. This section is a way to negotiate loan or other forms of financing.

The financial statements section includes Precision’s financial statements – a balance sheet, a profit and loss statement, and a statement of cash flow.  Financial projections showing  increased sales, operating expenses, and higher profits even with the loan payment should be included.

The appendix section will provide any additional items that s specific lender requests including, but not limited to equipment purchase orders or brochures,  tax returns,  credit reports, reference letters, licenses, and leases.

What do bankers, other lenders, or investors look for

What lenders will look for is a good investment – one that they will get their money back on.   Lenders want to know if Chad and Kyle can  manage a rapidly growing business.  Lenders will also want Chad and Kyle to consider multiple  financing plans and include them in their financial projections.

Advice for presenting a business plan to a banker

The best advice is to know the business  plan in detail and be able to give a description like Kyle did at the family gathering.  They must be able to defend their financial projections and answer questions about other options not included in their plan.   A  PowerPoint presentation would be good to present to an investment group or loan committee.  If the business plan is going to a bank with an application, they should provide at least copies, and .pdf or word formats upon request.

Conclusion

There are software programs and internet resources to help business owners write business plans.  They can also find help through their state, county or city economic development office.  An accountant can  help them prepare  financial statements and projection.  Or they can use software like Quicken or MS Money.   Through the business plan they should be able to communicate a before and after financing picture of Precision Auto Detailing.

References

www.sba.gov. How to Write a Business Plan (video presentation). Retrieved August 8, 2008, from http://app1.sba.gov/training/sbabp/ind ex.htm

www.sba.gov. Write a Business Plan. Retrieved August 8, 2008, from http://www.sba.gov/smallbusinessplanne r/plan/writeabusinessplan/SERV_ESSENTIA L.html

1Executive Summary

1.1Description of Business

The restaurant business strategy will be an open disclosure of Yummies business proposal. The intention will be to establish practical business expectations, as well as to eradicate uncertainties regarding the profitability of the project. Entrepreneurs often optimistically forecast their restaurant business plan, underlining the benefits and disguising the potential risks. Business owners display a vested interest and economic dedication towards the business’ success. Our aim is to construct a definitive business, financial and marketing plan to satisfy all capital financing requirements, and can be implemented every day. Every precaution has been taken to validate the business and economic models, with a particular aim towards realistic expectations, with the use of market research and existing business theories.

1.2Finance Required

?55,000 will be the total amount of capital that will be needed to commence with the Yummies business. ?50,000 of this will be start-up capital with the remaining money used for a reserve on business operations. This strategy will be submitted so that a ?25000 business loan can be attained. This will be utilised for Equipment purchases, as well as Design, Construction, and Operational Start-Up expenses. Mr. Ajayi and Mr. Sangosanya, the owners, will be supplying ?24,000 of personal capital. Part owners have a non-managerial focus and other Private Investors will supply ?6,000.

The owner’s responsibility is the personal liability for financial debt. Crucial precautions have been established to make sure the business can be completely capitalised. These will address the economic faults, and guarantee the business’ start-up to be successful.

1.3Business Differentiation

The plan appropriates “variety”, “ambiance”, “entertainment” and “efficient staff” to form feelings of “place”, as recommended by Lynn (2009). This will help us to fulfil our targets of overall value within the restaurant market. By generating fair profits for owners and investors, we will also create a rewarding working environment for the workforce.

The model and values that we will use for the business operations are:

“Unique, Innovative & Contemporary”: Establishing an original fine dining experience to separate our business from competitors. Our business aims to be individual and different to other local restaurants, primarily experienced through our innovative design and “electric” decor.

“Product quality”: providing excellent service, food, and ambience.

“Spice of Life” Menu: Our chose of foods is aimed to appeal to a variety of clients. The diverse menu will offer African regional specialties, from: Fried Meat with Potato Balls, , Fried Rice, Eba, Amala. Pounded Yam, Cow Beef, Goat Beef etc.

“Employee Retention Focus”: Retaining the workforce and establishing programs of development is a main aim, and model for a successful business (Napier, 2006). Using these, the business can employee highly skilled and trained professionals and establish a committed workforce. The business has accounted for a stock option program, to implement for Chef and Management roles. This will subsidise the lesser salary base and reduce initial overheads. It will also invite skilled employees, as recommended by Williams (2010).

“Cost Control Focus”: Expenses will be constantly managed, and without exception. “Cost Control” will become integrated to the running of the business. It is a function that looks at handling numbers, assessing the figures that affect the bottom line (Williams, 2010). 80% of a restaurant’s success is determined before the business is even running (Lynn, 2009). The aim of our business will be to lessen cost of goods sold to satisfy the profit margin targets. This will be achieved by balancing these vital cost factors: “Purchasing”, “Receiving”, “Storage”, “Issuing Inventory”, “Rough Preparation”, “Service Preparation”, “Portioning”, “Order Taking”, “Cash Receipts”, “Bank Deposits” and “Accounts Payable.” The business will deploy the restaurant business plan to trace the actual expenses against the forecasted expenses.

Restaurateurs are always on the lookout for innovative methods to separate their restaurant from the competition (Zapoli, 2005). This will give them the competitive advantage over rival businesses. We have identified a gap in the market within the West Midlands for an African Restaurant which delivers quality food to the right target market of African students, entrepreneurs and adults; something that is contemporary and entertaining. We believe that Yummies satisfies these criteria.

1.4Business Credibility

As mentioned, entrepreneurs are renowned for creating optimistic restaurant business plans; looking at potential benefits and overlooking dangers or risks (Reuvid and Millar, 2003), and according to Zapoli (2005), business owners display a vested interest and economic dedication towards the business’ success. Our aim is to construct a definitive business, and a financial and marketing plan that can satisfy the capital financing requirements, and can be implemented every day. Every precaution has been taken to validate the business and economic models, with a particular aim towards realistic expectations. These have been accomplished by:

A financial model that is built on industry statistics and not optimistic predictions. Expenses are based upon our experience of industry and practical situations with other businesses. This will be validated by the National Restaurant industry cost averages (National Statistics, 2010), as well as the assessment of West Midlands’ market averages. Collective statistics are considered to produce solid business predictions (Zapoli, 2005).

The business concept derives from in depth Market Analyses. Rather than building a business based around a preconceived idea, we examined market research to construct a concept that is based around clients. The business looks to appeal to an unmet client “want.”

A buffered financial strategy that provides suitable capitalization. A contingency buffer will be part of the initial expenses to makes sure the restaurant is suitably financed. This will offer the restaurant suitable funds to maintain the business for the initial six months in the restaurant’s life-time. Our current business knowledge confirms that there are prolonged “ramp-up” stages for restaurants, compared to retail or service based businesses (Mintel, 2009). New entrepreneurs sometimes make the mistake of not addressing this issue within their business plan.

Effective Risk Mitigation Plan. By assessing the traditional and non-traditional dangers that are linked to restaurant failure, we have accounted for such risks within the business plan. Rather than dismiss such dangers, we located valid mitigation strategies.

Deep Management Experience. We believe that it is important that our management team has more than fifteen years combined experience, contacts in more than eighty restaurant openings, and, importantly, are heavily active in the Barking & Dagenham restaurant industry.

2The Company and its Industry

2.1Purpose of the Company

2.1.1 Mission

Yummies aims to be an innovative restaurant, which fuses a diverse menu with an engaging ambience. We aim to provide high quality food and services, with the client’s satisfaction a top priority. We anticipate that the typical type of customer for Yummies will be men and women, old and young individuals, as well as couples and singles.

2.1.2 Objectives

Yummies’s targets for the initial 5 operating years are:

Maintaining food expenses to be less than 35% of revenue.
Develop the Gross Margin from 65.41% to 67.10% by the second year. This is a realistic target; the “stretch” will be to get 70.73% by the third year.
Maintaining labour cost is between 25% and 27% of the total sales.
Stay an innovative restaurant with excellent food and service.
Averaging sales between ?525000 to ?630000 per annum.
Developing the Yummies business as an innovative Midtown restaurant.
Increasing the marketing and advertising within West Midlands. This will also include nearby regions to expand customer base.
Attaining profitable investment return for investors from the second year to the sixth.

2.2Company founders and Skills sets

This business will begin as Yummies Limited, owned by General Manager and Executive Chef, Paul Sangosanyaa, and Managing Partner Ajetunmobi Ajayi.

Mr. Ajayi and Mr. Sangosanya both have experience within the restaurant industry, which is based on their experiences in Nigeria. Mr. Sangosanya, a proficient restaurateur, owned many full-service restaurants. Mr. Sangosanya currently owns Currys Restaurant in Ijebu-Ode, and Mr Biggs in Lagos. He is the international Restaurant Consultant for Chicken Republic and Pizza hut.

Mr. Ajayi is qualified in Restaurant and Hotel Management and has experience in International Business Management. He also helped Mcdonalds fast-food chain to become a major London restaurant. This branch was identified as a top 10 restaurant during his management between the years 2002 and 2010.

2.3Competitive Differentials

“Unique, Innovative & Contemporary”: Forming a unique, innovative and high quality dining experience to separate our restaurant from our competitors. We will achieve this through our innovative design and decor. Also, the restaurant will provide a high quality dining atmosphere.

“Product quality”: excellent food, service, ambience.

“Employee Retention Focus”: Retaining the workforce and establishing programs of development is a main aim, and model for a successful business. Using these, the business can employee highly skilled and trained professionals and establish a committed workforce. The business has budgeted for a stock option program, for Chef and Management positions. This will subsidize the lower salary base and reduce the initial overhead and also invite skilled employees.

3PRODUCTS AND SERVICES

Yummies food will set out to be that which blends the best of all African cuisines from all parts of Africa. The menu is intended to have a range of varieties, which will change every 6 months, but still have traditional specials.

Our kitchen staffs and main house staffs will be well trained in food preparation, presentation and their approach to customers thereby providing a high quality service. We will ensure that all customers will also be provided with a nice environment that is comfortable, relaxing an appealing thereby giving them a unique restaurant experience.

3.1YUMMIES MENUS

Our menu would offer several different courses, which will come with choices for a fixed price. This will include starters and appetizers, main course deserts and African cocktail drinks.

Our starters and Appetizers menu will include:

Chin Chin
Plantain chips
Suya with pepper sauce or Goat cheese dip
Sausage rolls
Pepper soup which can be served either goat meat, cow leg or cat fish
Small chops
Puff puff
Fried meat with potato balls

Our main dish menu will include:

Jollof rice, which can be served with a side order of either chicken, beef or fish
White rice, which can be served with a side order of either chicken stew, beef stew or fish stew
Fried rice, which can be served with a side order of either chicken, beef or fish
Coconut rice, which can be served with a side order of either chicken stew, beef stew or fish stew
Eba (cassava puree), which can be served with any of the soup and stew side orders
Amala, which can be served with any of the soup and stew side orders
Iyan, which can be served with any of the soup and stew side orders
Semovita, which can be served with any of the soup and stew side orders
Fufu, which can be served with any of the soup and stew side orders
Ewa Dodo (black eyed peas with plantain)

Our side order menu will include:

Stew and Soup

Efo (also known as vegetable soup)
Obe ata (also known as bell pepper soup)
Obe Eja tutu (also known as fish and pepper stew)
Ogbhona soup (this is stew that is thickened with Obghona nut)

Vegetables and Beans

Moin Moin ( also known as steamed Beans pudding)
Obe Ila (also known as stewed Okra)
Obe Ewedu (also known as simmered mellow greens)
Dodo (fried plantain)

Poultry, Beef and Seafood

Chicken
Turkey
Cow beef
Goat beef
Prawns
Titus fish
Cat fish
Sardine fish

Our drinks, cocktails and beverages menu will include:

Five Alive
Zobo
Traditional African Palm wine
Multina
Malta Guinness
Gulder
Coke
Fanta
Sprite

Our Desert menu will include:

Coconut ice cream in strawberry or cinnamon
Coconut swirl ice cream with pineapple sauce
Orange chocolate Parfait ‘la’ Afrique
Accra banana peanut cake
Tapioca Pudding
Congo sweet oranges

4TARGET MARKET

4.1MARKET ANALYSIS

After conducting a market research, it was found that most traditional African restaurant businesses are not set on customer satisfaction, rather they emphasize more on the culture (Mintel, 2009). Furthermore, it was found that customers are particular about pricing, the restaurant experience and the variety of the menu (Mintel, 2009).

Also, in light of the recent financial crisis, most customers would be very particular about the quality of the service they receive in relation to the price they are charged, especially now that most people would be more conscious of the amount they have saved. Yummies restaurant is priced very reasonably with a maximum main menu price of 12 pounds. The appeal and structure of the restaurant i.e. decoration, bar, waiting time, and service are also factors that are mostly considered by customers as they also contribute to the overall experience.

In the West Midlands, ethnic restaurants are increasing due to the continuous introduction of international cookbooks, recipes and the massive in flow of imported food stock (National Statistics, 2010). This has created a window of opportunities for various ethnic restaurant establishments, an opportunity that Yummies intends to take up. As a result of this market analysis, it is Yummies’ plan to give customers a very good price for a good experience in the restaurant and a find food choice to choose from.

4.2TARGET MARKET

Yummies restaurants aims to cater to different segments of the market, and this includes tourists during the summer period. Yummies restaurant is guaranteed to be a destination, as it will have the necessary attractions, environment and our variety of African cuisine. A vast amount of the tourists are singles, open to new experiences and looking to be well entertained, especially with the upcoming 2012 Olympics.

Our target market is ranged between the ages of 25-45. This is because they are set within the working class and the upper class BC1 income bracket according to the social stratification meaning they have more disposable income and are likely to spend more (Mintel, 2009). We will also be attracting the business class as our contemporary setting and atmosphere will be perfect for business meetings and the overnight business lodger.

Our restaurant service is also not limited to the West Midlands, but aims to draw attention from other parts of the UK. These are the destination customers that seek a different environment or couples on a date night who want time alone and are open to try out something new rather than what they are normally used to.

4.3SERVICE BUSINESS ANALYSIS

The restaurant industry is very competitive at every market segment demands experience. Majority of new restaurants tend to struggle or collapse due to inexperience and bad management. However, the successful ones are those which a concrete knowledge of the market requirements (Zapoli, 2005).

Restaurants and successful businesses generally make good profit by making use of economies of scale for instance, the use of inexpensive ingredients (lower cost price) to make creative cuisines at an increased selling price (Jorgensen, 2003). We intend to incorporate this at Yummies by using cost effective ingredients, but not compromising on the quality. We would source lasting products such as bags of rice and beans in wholesale, so we can get a cheaper price for them, whilst also sourcing diminishable products like Pepper and Tomatoes from local producers, so they are always fresh.

4.4STATEGIES AND IMPLEMENTATION

Yummies restaurant’s approach is straightforward. Our proposed success is to be achieved through an addition of excellent service and finest cuisine in an atmosphere that is welcoming to a wide range of customers. Our main forte is customer satisfaction and creating brand awareness in the Midland area, which will later expand to other parts of the UK. We intend to be well detailed in explaining who we are, the standards we stand for and what our goals are to our customers in order to build a reputation that can easily be spread across.

We would be approaching an existing market of customers, with existing products, as we expect that there are already competitors within the West Midlands area that provide the same sort of services we do. Therefore our main strategy, as represented in the Ansoff Matrix (Ansoff, 1957), would be to penetrate the market and establish our base. We intend to achieve this feat by differentiating our services based on quality, thus adopting a value differentiation focus (Porter, 1985), as opposed to one that was based solely on price or quantity.

By focusing on differentiation in order to penetrate the existing market, Yummies would be distinguishing itself from competitors by selling itself as the prime place to be, a restaurant that values the quality of its services and food, and would always be happy to leave every customer happy. Also, this strategy has been chosen as opposed to a broad based value strategy based of the capital investment required to target a larger audience in the West Midlands. Such a capital investment would typically involve having a larger restaurant, or launching several restaurants, both of which are not immediately financially viable. Furthermore, adopting a cost focus strategy is not financially viable, due to the emphasis Yummies aims to place on the quality of food sold within its restaurants. In order to deliver quality, we can not do so as a start up restaurant. Furthermore, as argued by Grant (2000), the cost focus strategy is usually more ideal for established businesses, as smaller businesses cannot necessarily compete with larger competitors based solely on price.

4.5COMPETITORS

The major competitors will be Debulge, Somaga and The Den restaurants as they have been in prior existence. Debulge restaurant is the only one that attracts a reasonable amount of customers, but has a location disadvantage, comfortable atmosphere and an overall minimal size. This can be said for the other two competitors as well. The advantage that Yummies will have over the known competition will mainly be its location as its going to be set in an area where there is a large mixture of both local and international individuals, hence promising a diverse demographic. This location area is a popular tourist attraction area, thereby making Yummies an obvious choice.

Even though the competitiveness of Yummies Restaurant is not totally dependent on the location advantage, we believe that it gives us a suitable platform to launch ourselves, as it also offers free marketing. Tourists and Passerbys would have a look at the display boards and immediately know it is an African restaurant, and for those that are hungry, or just crave something to eat at that point in time, we would be an ideal location to visit. Furthermore, the ambience and service delivery, along with the food quality they experience whilst at the restaurant would give them enough incentive to return and refer us to friends and family. This is the free sort of marketing and service delivery that Binks and Ennew (1997) recommends for small businesses that are just starting up, as it gives them the chance to built a market following easily and rapidly.

5Marketing, PROMOTION AND SALES

5.1Building and Signage

The fundamental marketing tool that we will deploy will be the design and signage at the exterior of the building. Also, restaurant’s sign would include adequate information about the name of the restaurant and the services we provide. We also intend to invest in substantial renovation work and decor to produce an innovative aesthetic style for Yummies.

5.2Customer Service:

Based on market research, and the owners’ previous experience in the restaurant industry, customer service is a considerable factor in influencing the popularity, and success of top restaurants. The quality of the food and ambience is over-shadowed by excellent customer service. It is this kind of approach that ensures our client’s continuously return.

Wait-staff will be trained by the management to offer a high standard of service, to ensure that our clients are happy and enjoy their experience at our restaurant. These wait-staff must be skilled and well-trained. Every ninety days the wait-staff will have to undergo a performance appraisal; as outlined in the Employee and Operational Manuals, and recommended by Zapoli (2005).

5.3Advertising and Promotion:

The Advertising strategy and media schedule will utilise newspapers and other local publications to target various customer groups, such as singles, couples, and destination customers.

Management acknowledges that extensive media promotion is significant to a restaurant’s immediate success. However, this should be an aggressive campaign to complete the service targets. A suitable budget will be allocated for the initial year. A large section of this will be allocated for media promotion, and to build a “customer buzz” in the thirty days before the restaurant opens. This will be maintained for three months after the opening day.

5.4Media Objectives and Strategy:

Formulating an image as: “a unique Midtown restaurant with great service, value, and great food, served in an eclectic atmosphere.” Efficiency will be maximised through the selection and scheduling of promotion by:

Choosing popular business publications that have large specific market penetration; this will get our business out to the entire target demographic.

Scheduling a suitable occurrence of adverts to affect the market using items from the menu as well as promotions.

Place adverts around entertainment and food editorial publications.

Attracting clients to the business using our restaurant website, encouraging clients to sign up for future functions, V.I.P lists, reservations, as well as flash media promotions.

Maximizing advertisement life-p through publications that are published every week and month.

Maintain a consistent reach and frequency across the year; we will aim certain customer segments within a five-mile radius, and new “suburbanites”, who enjoy high quality, in-town dining.

5.5Promotional Campaign

An efficient manner in which potential clients can be reached is to create an effective advertising campaign. We will look to promote our restaurant using the concept of “Spice of Life.” Additionally, the business will earn recognition from the local press, and public announcements. The website will be used as an incentive to get clients to sign up or to come to the restaurant. The website will use flash media which underlines the business, recent events, future events, and our diverse menu.

Assessments of the periodic customer surveys and weekly menu item sales helps to comprehend the forms of advertisements which are being successful, and those which are failing. This will also give us an idea of the customers that we are reaching with our advertising campaign. The primary objective is to comprehend the client and to study the levels of success that our direct marketing and media activities have generated. This will also aid us in effectively redirecting our campaign.

5.5.1 Publicity Strategy:

These are the publicity strategies deployed by Yummies:

Create and maintain public relations, with contact with editors and personnel at local restaurant publications.

Establish constant and consistent package update program for the primary objective media, making sure that editors are side by side with the business promotions.

Build relationships with editorial staff of such press, so our advertisements and business can be promoted in local “round-ups,” as well as offering product comparisons for restaurant publications and local newspapers.

Create a Yummies record, with a menu that can be implemented as a main device to improve PR, and will be part of the press kits.

5.5.2 Press Release/Grand Opening:

A number of press releases will be given during the “Grand Opening” of Yummies Restaurant:

“Editorial Visitation”: Prior to the restaurant’s opening, and during the initial six months of operations, the restaurant will send out invitations to significant editors and journalists from the local press so that they can come to the restaurant and experience our high quality food, service and atmosphere first-hand.
“Publicity Revenues”: It is forecasted that about 10% of the yearly sales will come from the restaurant’s publicity: a complete media kit will go to the local press, as will updates on menu items, which will be issued every month.
“Community”: Yummies aims to work with the local community development organisations. Also, we will contact radio stations so that we can have another medium in which to interface with potential clients. There will be a constant effort made to find local community programs that the business can participate. We believe that it is healthy policy to “give something back.”
“Marketing Program”: The restaurant will operate three marketing strategies to advance the public’s awareness of Yummies: In-Restaurant, Public Relations, and Media Marketing. A significant strategy will be the “word-of-mouth/in-restaurant” marketing; an affordable and effective marketing programs.
“Restaurant Night”: We will organise a certain night for local restaurant owners, chefs and staff to talk about the contemporary market patterns restaurant people. This will be held on the first Monday of the quarter. We will look to invest in a co-operative effort to promote the Barking Town Centre; whilst it seems that there would be a conflict of interest here, this is an attempt to develop the patronage of the town.
“Monthly Dating Connection”: As the online world continues to grow, Internet and speed dating has become a popular function and the business will run monthly “date nights.” Data packages will be sold in an auction alongside the normal range of food and drinks.
“Wait Area Marketing”: Wait-staff serve appetizers to clients on the wait list.
“Special Events”:
Live Entertainment parties
Seasonal Holidays: Valentine’s Day, New year’s Eve, Mother’s Day etc.
Yummies Halloween Masquerade party
Wine tasting weekend

5.6Public Relations Marketing

Barking Hospitality & Tourism V.I.P. Party:

The restaurant intends to stage a “V.I.P. Dinner” prior to its “Grand Opening.” The dinner should help to train staff and will also introduce the new restaurant to the community. We will use the Chamber of Commerce, West Midlands Hospitality & Tourism, and Midlands Town centre Development group to draw up an invitation list for the “Grand Opening.” If we secure the favour of these people, it will surely benefit the restaurant to gain popularity.

Critics’ Choice:

Before the “Grand Opening”, two parties, designed to accommodate the Media and the Critics community, will be asked to come and to provide an assessment of our service, food and ambiance. This is a preliminary review, as constructive criticism is considered to help make improvements and other revisions before we have the “true Grand Opening.” The results of these reviews from critics and the media commentary will influence the success of Yummies and towards the penultimate design.

Brochures:

Produced for in-town hotels, business establishments etc. This will be given to to guests and staff, and will display images of the restaurant’s interior, as well as display the menu and prices.

Government Relations:

Government offices within the West Midlands region will be contacted about catering for their company’s lunch services, as well as for private functions. This strategy will give the restaurant a greater “visibility” and potentially ensure us with future work. It will also improve the rate of “Word-of-mouth” referrals, which, as mentioned, are influential methods of increasing popularity, especially in the business community.

Private Functions:

As above, we will look to target businesses so that we can provide them with lunch services, dinner entertaining, and private functions.

5.7Media Marketing

Newspaper campaign:

A large part of our media campaign is for the restaurant to be published in the Entertainment and Dining columns in the local press. Additionally, updates of live entertainment events and other special events can be displayed on the newspaper’s calendar.

Restaurant and Special Events Website:

This is an important marketing tool. Therefore we have employed a local designer to produce a top-quality, easily navigated and well-maintained website.

Billboard Advertisement:

Thirty days prior to the “Grand Opening”, innovative billboard adverts are to be hosted; these will publicise the launch of Yummies.

Inner & Outer City Marketing: The restaurant is budgeted to appeal to potential clients from the suburbs.

Sales Strategy

Customers are provided selections of innovative, high quality foods, within a comfortable atmosphere with top-rate service. This experience will be maintained every day, so that the customers enjoy this experience every time.

The restaurant’s marketing strategy invites local critics and clients through the doors. The sales strategy motivates clients to become come again and, more importantly, to improve the “word of mouth” about Yummies, as they inform their friends and family about the high quality dining experience they had at our restaurant.

However, young restaurants generally succumb to two key errors: one is when a restaurant is unprepared for the “Grand Opening”, and the clients endure slow service or low quality food. This will inevitably discourage them from coming again. The other mistake is if the restaurant invests too much into the “Opening”; in these circumstances, the restaurant often finds that it is hard to maintain the levels of quality that the customers who attended the “Grand Opening” expects to receive on return visits. Like the first mistake this results in a decrease in “word of mouth advertising”, and, therefore, generates unsatisfactory income.

Yummies’s sales strategy is to provide top standard food, service, and ambience. This is be achieved through:

The employment of top quality staff, who enjoy working at the restaurant and value the benefits of working for Yummies.
Evaluating and assessing the standard of what is mentioned above, and, therefore, dealing with any issues that are identified.
Communicating with customers in a personal manner; this makes them feel that their comments and opinions are listened to and are not dismissed.
Assessing popular food choices and maintain the most popular ones on the menu, despite rotating seasonal foods and specials Sales Forecast.

These marketing strategies are based on recommendations adopted from Williams (2010); Zapoli (2005); and Mason and Stark (2004), on effective ways of marketing start-up restaurants, especially new restaurants in existing areas where competition is meant to abound. By approaching and adopting these methods, we aim to have built a reasonable customer base within the first 3 months of opening the restaurant. Both owners would be in charge of putting these strategies into motion, and ensuring that there is a wide enough audience for the restaurant, in such a manner that it promotes sales and sustainability, without necessarily spending too much of the budget on marketing.

6

6.1Web Plan Summary

Yummies has a dedicated website that will act as “virtual business card” for the restaurant. The design is simplistic, yet modern. The website displays the Yummies menu, prices, as well as any articles, reviews or latest events associated with the restaurant. It is planned that there will be a “Paparazzi Review” to be published every month, and this will cover that month’s events and the strategies that the business employed to invite new customers into the restaurant.

The site will also promote special offers, and there will be an online order feature for the “Sunday Market Brunch.” Should this feature prove to be successful, then there is the potential for further expansion. The website will offer customers the chance to place an order and pay using their credit card. The range of food that will be available for order will be selected from the pre-packaged meals that will be made available as part of the “Sunday Market Brunch.” We have also considered potential catering jobs.

The Yummies site will have e-mail features which will permit the customer to make online reservations, or book dates for special events.

7Management and Operations

7.1Management Summary

The highly skilled Yummies management team will help make the restaurant successful. The team comprises a number of individuals who have adopted various disciplines, and have professional skills and understanding in the restaurant business; such as marketing and restaurant management.

As mentioned, Mr. Ajayi and Mr. Sangosanya both have a wealth of knowledge and experience of the restaurant industry.

In the second year, Yummies plans to recruit a General Manager to deal with everyday Restaurant management and will help the development of the business.

It is well known that investor confidence cannot be created from optimistic predictions; it has to built on actual success. The Yummies team have a lot of experience with the restaurant industry, and between them, have enough knowledge and practical experience to help ensure the restaurant is successful.

7.1.1 Management Team

Yummies values the significance of a strong core management group and has over forty-eight years of experience between its main officers; this is because a successful business is founded in such a group.

Everyday operational management is to be run by Mr. Ajayi and Mr. Sangosanya; they will have the support of the Advisory Board.

7.1.2 Ownership & Management

Together, Mr. Ajayi and Mr. Sangosanya have more than twenty years of restaurant experience.

Ajetunmobi Ajayi: Managing Director

(Managing Director)

Ajayi displays an accomplished history in the restaurant business. He displays outstanding business acumen as well as an intense enthusiasm for restaurants. With more than seventeen years business management within the I.T industry, Mr. Ajayi has seen success by exploiting popular patterns with constant evaluation of quality assessment. Yummies anticipates Mr. Ajayi’s knowledge of everyday “cash-flow” planning and staff management to be a great asset for the business.

Co-owner, Mr. Ajayi has experience in International Business Management and Business Start-ups. Qualified in Restaurant and Hotel Management, he is also accountable for Yummies’s route and the operational management of the restaurant. Ajayi has been proven to be effective at strategic planning. He is to be the management lead for all public relations, financial and investor services.

Paul Sangosanya: Executive Director

(Executive Chef)

Having owned many full-service restaurants in the past, Mr. Sangosanya is a proficient restaurateur. Accountable for everyday operations management, managing the annual sales targets of ?5 million, Mr. Sangosanya owns the Bauhaus Bar and Nightclub, and used to own the Myth Restaurant, Ouzeri, and Kapilyo Restaurant. Every one of these restaurants were financial and critical successes. Sangosanya’s is an international restaurant consultant for important international organizations, he is a responsible individual. He take contracting responsibilities for Yummies. His role will include: “logistics, Site and Lease Negotiations, Concept Definition, Start-Up and Financial forecast, Menu and Operations Management, as well as Implementation and Launch Management.”

Mr. Sangosanya has an Economics degree. He will be charged with planning the Restaurant Operations, Staff Selection, Menu Definition and Training initiatives.

7.2Managing Partner Responsibilities

Both managers will handle the development of the menu as well as the certification of the Yummie’s economic responsibilities. The managers will co-ordinate, develop, and act out the customer service policies. They will also plan and enforce an “Employee’s manual” for workforce-related policies. Grant (2000) states that the owners and managers of any startup are largely responsible for setting up guidelines and procedures through which the organisation would run and remain functional, which is a function both founding partners at Yummies restaurant have taken ownership for.

The operations managers are tasked with recruitment duties and the decisions regarding employment will be made between them.

7.3Personnel Plan

The Personnel Plan is believed to be in “good proportion” in relation the size of Yummies and the anticipated revenues. It is believed that the staff will comprise five full-time and two part-time employees. They have to work for two hundred and fifty man-hours per week. This will produce an average monthly gross range of ?9180 – ?12,720 for Year 1. Anticipated gross yearly payroll of ?135,280 is a quarter of the entire sales figures.

The wages of the service personnel does not account for tips.

Kitchen:

The Executive Chef and an Assistant Chef, Prep cooks/dishwasher, People cleaning the restaurant.

7.4Restaurant Operations:

Mr. Ajayi is responsible for handling Financial Management, Bookkeeping, PR/Media Advertising, Investor Services and daily Restaurant Operations.

Mr. Sangosanya, the Restaurant Manager, will be in charge of everyday Restaurant Operations and is the Executive Chef, who co-ordinates with the Head Chef. He will also be in charge of the Wait and Bar Staff.

Mr. Sangosanya will be aided by servers/apprentices who are responsible for service and will maintain the upkeep of the restaurant.

Full-time Servers(2)

Servers that work as apprentice (2)

Full-time apprentice bartender(1).

Part-time bartender (1)

Full-time apprentice busboy (2).

Part-time busboy(1)

Operating Criteria

Yummies is to be situated in the West Midlands. Here it will service lunch, dinner, and after-hours dining seven days a week. Yummies will function at the peak service times. This is to profit from street traffic, as well as the after-hour patronage provided by the local entertainment facilities. Service will be available at:

Lunch:Monday to Saturday, 11 a.m. – 2:30 p.m.

Dinner: Monday to Saturday, 5:30 p.m. – 12 midnights

Sundays – Market brunch takeout only.

7.5Important Assumptions

The financial plan is dependent upon significant assumptions: many of these are indicated within the following financial statements. Yummies is wary about their projections, and look to include mitigation of the manageable risks. Here are the primary underlying assumptions:

7.5.1 Economy

“Slow Economic Recovery”: It is predicted that the recovery from the economic recession will be slow.

7.5.2 Business Growth

“Annual Growth Rate Percentage”: It is predicted that the restaurant will see modest growth within the initial years of operation, and these have been calculated as 10% annually over the first five years, owing mostly to increasing popularity and a possible expansion into other regions.

7.6Risk Analysis/Mitigation

Adequate launch period and capital

The restaurant’s financial plan is budgeted to accommodate the “Worst-Case business scenario.” We dealt with the financial risks by:

Considering the monthly break-even.
Calculating “worst-case” monthly financial shortfall, as given by the ramp-up sales percentages that is given by the financial assumptions.
Budgeted the operational shortfall within an operational contingency budget that will be implemented when the situation demands it.

Gaps in Resources and Knowledge of Industry

The owners, Mr. Ajayi and Mr. Sangosanya, have more than twenty years of combined Restaurant Management, Operations and Business Management Experience.

Yummies is looking to employ a seasoned chef to fit in with the restaurant’s image. The restaurant will offer an equity interest to our select Chef to maintain the industry knowledge.

An accounting service will be contracted to a firm specialising in Restaurant accounting.

Market Conditions

The initial plan was to create a restaurant that was almost double the size of what the current one is. However, because of the economic recession, we had to reduce our business overhead, start-up requirements, and business operating capital. Additional risk mitigation strategies were implemented and this has been our general business concept. The restaurant’s menu is deliberately priced at a “mid-tier” level to allow people to eat at a high quality restaurant on a lower budget.

Location

Site selection was based on space, visibility, and functionality; the city grant award confirmed our decision. The Consulting group’s experience of site selection and lease negotiation will be of great use. Whilst the location is not guaranteed, the restaurant took an objective approach towards the concept. Rather than progressing with a predefined business concept, the requirements were defined through market analysis. Yummies’s concept was created based on this, and was tailored to suit Barking Town Centre.

8STARTUP EXPENSES

?

Restaurant Design Fees & Consultancy 10,000

Restaurant Equipments 10,000

Chairs, Tables, Cutlery and Uniforms 3,000

POS Terminals 1,000

Information Technology and Consulting Fees3,000

Legal Fees1,500

Permit Fees and Business License2,700

Liquor Licenses 600

Utilities, Disposal, Tax & Insurance250

Initial Lease and Security Deposits 1,800

Web Site Construction1,000

Marketing, Staff Training and PR2,500

Start-Up Salary for Staff and Chefs4,000

Staff Recruitment 800

Inspections 550

Cleaning and Clearing Services400

Total Costs43,100

Assets

Cash 5,000

Inventory Cost 2,100

Other 500

Fixed 4,300

Assets 11,900

Total Assets 55,000

Liabilities and Capital

Liabilities

Total25,000

Capital

Capital Investments Required

Mr Ajayi12,000

Mr Sangosanya 12,000

Investor 1 6,000

Capital 30,000

Capital and Liabilities55,000

Gross Funding 55,000

9 FINANCIAL FORECAST

10. REFERENCES

Ansoff, I. H. (1957) Strategies for Diversification, Harvard Business Review, Vol. 35 (5), pp.113-124

Barrow, C., P. Barrow and Brow, R. (2005), The Business Plan Workbook (5th ed), London, United Kingdom, Kogan page

Binks, M.R. and Ennew, C.T. (1997) the Relationship between UK Banks and their Small Business Customers, Small Business Economics, 9(2), 167-178

Collis, D. and Montgomery, C. A. (2008) Competing on Resources, Harvard Business Review, Jul-Aug p140-150

Grant, R.M. (2000) Contemporary strategy analysis, (3rd ed.), Blackwell, Malden

Jorgensen, A. S. (2003) Restaurant marketing and advertising: for just a few dollars a day, Atlantic Publishing Company, Atlanta, GA. 140pp

Lynn, J. (2009) Start Your Own Restaurant Business and More: Pizzeria, Coffeehouse, Deli, Bakery, Catering Business. Entrepreneur Press, New York, USA. 256pp

Mason, C., and Stark, M. (2004) what do Investors Look for in a Business PlanA comparison of the Investment Criteria of Bankers, Ventures Capitalists and Business Angels, International Small Business Journal, 22(3), 227-248

Mintel (2009) Eating Out Meal Occasions – UK – September 2009, www.mintel.com, accessed: 17/02/2011.

Napier, H. A. (2006) Creating a winning business, Cengage Learning, London, UK, 444pp

National Statistics (2010) Region in Figures – West Midlands, www.statistics.gov.uk, accessed: 17/02/10

Porter, M.E. (1985) Competitive Strategy, The Free Press, New York

Reuvid, J., Millar, R. (2003) Start & Run your own Business, London, United Kingdom, Kogan page

Williams, S. (2010) Financial Times Guides: Business Start up 2010 (23rd ed), Pearson Education, Harlow

Zapoli, J. R. (2005) How to succeed in the Restaurant Business: Crunching Numbers – now that’s the bottom line, iUniverse, New York, USA. 211pp

Task 1

You need to do some research to familiarise yourself with the subject area and to gain some ideas about how you can carry out the rest of the project. There are a number of websites that specialise in the sale of paintings and craft items. Use a maximum of 1 hour to review these resources. Bookmark the relevant sites and make notes of information that you can use in your assignment.

Business Plan for the Online Art Gallery starts in the internet. Art gallery business is no different business than the other business that happens in the internet. Now a day various established galleries have adapted to this internet medium and number ofnew business are rapidly developed across world in the internet business. Internet has opened the art business as various major barriers are demolished –distance area and limitation of demand and wants choices by the customer. In past if someone has to buy art material they have to reach to the place where that particular art is located and second thing is there was limitation of choices. lot of time and traveling expenses also beard by the customer .Now if any one like to purchase an European painting they are not failed by choices nor have to go to Europe. The rapid growth level of prosperity in the foreign countries has also given a dimension to the art industry across the world, as more and more people now a day can afford to collect of their prospective and desired products within a short time period if the place of the produced product not in their country boundary. For an example10000 people of America can seeing and buying paintings, drawing, prints, sculptures and photographs by artists of almost all periods from the organized exhibition by the Art gallery situated in the USA. Various Artists are now look for avenues on internet to sell their products and try to get benefit than the analog system of buying and selling the product. Though every artist has no personal website as selling their product to customers is one of the lacings of online marketing. The online site of art gallery will provide a instant platform for artists and will help in selling their product.

Task 2

Produce a project plan for the way you intend to complete the rest of this assignment. For planning, use the timescale you have been allocated i.e. from the date you start to the date you submit your assignment. Submit a copy of your plan to your tutor before you proceed further with the assignment.

Project plan for the site development

The site development procedure start from the 11th July and the completion date possibly 2 month later from the starting date. The project plan include the resource allocation for the site development, feasibility study for the market, marketing strategy development and implementation, action plan for the project, termination of the project, project funding etc.

Task 3

Marketing plans are detailed strategies of how to go about successfully marketing a product or products and earning a of return from the effort. A comprehensive marketing plan will consider such important elements as distribution costs, production costs, advertising expenses and any expense related to identifying and marketing the products to the consumers in the targeted markets. The marketing plan may focus on strategies related to the upcoming twelve-month period, the next calendar year, or include a p of three to five years into the future.

The art gallery currently takes a commission of 30% on the price of each painting that they sell and, on average, sells between 6 to 8 paintings by each artist per month. The owner believes that it will be possible to set up similar commission deals with the craftspeople. The possible marketing plan for the project of the art gallery:

Products and Services for the art gallery: The existing products for the art gallery are given below:

• Pottery;
• Wood sculptures;
• Glassware;
• Jewellery.

Market analysis

The market analysis explains the market situation and the opportunity and the threat of the market. It is one of the parts of industry analysis and this also the global environmental analysis for market. Through this market analyses the company or marketers can understand the chances, strengths, weaknesses and risks.

The art gallery on the online is huge demand to the customer in the local as well as the worldwide. The online art gallery market is expanding day by day. The owner of the art gallery understand the situation by market analysis.by severing different site and the customer they realize that the customer wants to buy this kind of product that they provide in the art gallery. If they launch the online art gallery the local people and the global people can buy their product easily. But they have to consult with online art gallery and develop an effective site where the customer can sell and buy their product. This product has huge demand in the local market and also in the European market as well as global.

Target market

The art gallery provides Pottery; Wood sculptures; Glassware; Jewellery to the customers.so the potential customer are available mainly artist, art loving people, and all kinds and all level of people who want to but this product. The Jewellery customers mainly are the female person.

The competition for the art gallery

There are many established online gallery in the market .so the new market entrance the gallery should follow the strategy to market growth and expansion policy. The main competitors of this gallery are E-bay, Picasa, slideshow, picture gallery, global art gallery, and so on.

Marketing plan for the art gallery

The art gallery currently takes a commission of 30% on the price of each painting that they sell and, on average, sells between 6 to 8 paintings by each artist per month. The owner believes that it will be possible to set up similar commission deals with the craftspeople.

Meeting customer needs

Our customers require fresh Pottery, Wood sculptures, Glassware, Jewellery. The system for establishing customer needs is based on the product offering of our competitors. Pottery; Wood sculptures; Glassware; Jewellery demand in the market is huge and the customer may purchase from the site if the site is launched .the site develop such a way that meet the all demand of the customer. The site develops such a way that product quality and quantity is mentioned in the site. The owner of the gallery tries to meet the customer demand in high quality and provide the mentioned demand from the customer.

Quality vs. quantity of the art gallery

The existing artist sells between 6 to 8 paintings per month. If the online art gallery is established then it would be possible to sell at least 30 painting for each artist per month initially. The art gallery site visitors make choice the art paints and the quantities of the product may increase to the site .there are 30 artists make the painting at about 1000 paintings including oil paintings andsculptures; Glassware; Jewellery products at about 1500 made by the 40 artist in this gallery.so product quality and quantity of this art gallery is satisfactory for the launching the online art gallery.

Buying policy of the art gallery

The art gallery if launch the site the possible payment methods listed below:

• By PayPal
• By ProPay
• By Moneybookers
• By Paymate
• By Credit card or debit card

Payment methods not allowed on the art gallery site

In this site buyers can’t ask to sellers to the following things.it is the payment method of the art gallery.so their specific system of payment system:

• To Send cash through the mail is not applicable
• To Send cash or money orders through instant, point-to-point cash transfer services (that are not banks) such as Western Union or MoneyGram
• To Mail checks or money orders (except for items in categories specifically permitted in the local and specific bank)
• To Pay through bank-to-bank transfers (except for items in categories specifically permitted in the local and specific bank)
• To Pay by “topping off” a seller’s prepaid credit or debit card
• To Pay using online or other payment methods not specifically permitted in this policy

Promotional activities for the art gallery

The art gallery’s possible promotion al activities includes the advertising on the social network site life Facebook, Ayol, yahoo messenger, Google talk, Skype and so other site .some exhibition may arrange for the customer attraction to the product. Some completion may arrange for the customer in the online and gift them luxurious product.

Potential domain names

The potential domain name is the big factor to attract the people on the site .so the assistant of the site proposed the tree domain name for the site those are given below:

• global art gallery
• Vinci art gallery
• world art gallery

Advertising and other r promotional cost for the site development: The art gallery estimate that the cost of the site development and advertising and other promotional activities. The competition of the various social site and gift given by the art gallery is about monthly cost $50.the advertising cost will be estimated at about $100.promotional activities of the art gallery cost will be the $50.

Market segmentation for the art gallery

The art gallery segments the market in different areas such as the local area, global area, sub-local area and far area. The local areas segmented by the owner for the ease of the marketing delivery. Distribution channel of the art gallery globally segmented for the ease of the delivery. The main areas of the art gallery are given below: Georgia, India, Kazakhstan, Kyrgyzstan, Maldives, Mongolia, Nepal, Pakistan, Sri Lanka, Tajikistan, Turkmenistan, Uzbekistan, Bahrain, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, United Arab Emirates, Yemen, American Samoa, Cook Islands, and Mexico.

Task 4

Produce a draft of a Delivery and Returns Policy that could be included on the e-commerce site. In particular the policy should address the following issues:

The returns policy that will apply for the art gallery

Item must be returned withinRefund will be given as Return policy details. 14 days after the buyer receives the products they delivered to the customer.Exchange14 days warranty from the received date will applicable. Buyers are responsible for the returning shipping costs under any circumstances. Return items should include the original packaging and accessories. Refund occurs only when item is lost by the shipping company. Maximum refund amount will be the selling price; shipping cost will not be refund since it has been delivered.

The regions and/or the countries that the gallery will deliver to

Name of the worldwide country that the gallery want to deliver their product:

The art gallery segments the market in different areas such as the local area, global area, sub-local area and far area. The local areas segmented by the owner for the ease of the marketing delivery. Distribution channel of the art gallery globally segmented for the ease of the delivery. The main areas of the art gallery are given below: Georgia, India, Kazakhstan, Kyrgyzstan, Maldives, Mongolia, Nepal, Pakistan, Sri Lanka, Tajikistan, Turkmenistan, Uzbekistan, Bahrain, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, United Arab Emirates, Yemen, American Samoa, Cook Islands, and Mexico.

What the cost of deliveries will be

The local delivery cost will about the product basis. And the quantity of the product differ the cost. The other country that the gallery wish to deliver the product also mention in the site by shipping cost and airline cost for the quick delivery.

Task 5

Presentation

Task 6

Produce a list of ten key questions to ask prospective e-commerce suppliers, who will be required to design, develop and host the new e-commerce site on behalf of the gallery owner. The questions should seek to establish that the successful company has the necessary skills, expertise and track record to ensure that they are capable of providing a high quality level of service.

List of ten key questions to ask prospective e-commerce suppliers, who will be required to design, develop and host the new e-commerce site on behalf of the gallery owner.

1. What are the products graphics tools used in the site that related toll the customers need and wants?
2. what is the time line of the developing the site?
3. what are the key material for the picture and other product photography?
4. is there any interaction to the site developer to the artist to manage attractive deign of the site?
5. what amount of money taken by the site developers?
6. how the customers of the art gallery access the site?
7. is there any privacy policy include the owner of the art gallery?
8. should the copyright information needed to the site developer?
9. what category and quality of the product should be maintained for competition in the market?
10. is there any improvement needed to the existing product?

Task 7

Put together a briefing report of no more than 600 words that summarises three of the major types of auctions that can be held, together with the main advantages and disadvantages of each. The note should also include your recommendation on the type of auction that should be used as part of the e-commerce site if the gallery owner decides to go-ahead with this opportunity.

There are three major types of auctions that can be held for the art gallery and those are given below:

Buyer protection for the art gallery

The art gallery makes sure that resolution process when buyers claim to sellers that their item was not received or the item they received was different from what was described in the listing.

Help buyers and sellers resolve disputes in fewer steps, and provide buyers with a more familiar ecommerce resolution experience.
Offer an option to contact the art gallery if buyers and sellers can’t reach resolution themselves. They take a more active role in ensuring transaction problems are resolved.

Someone may ask to help sending or paying for an item and they are not able to. The art gallery doesn’t have the items that are sold on the site. They can ask a seller to send an item, or a buyer to pay for an item, but the art gallery can’t send the item to the buyer or pay the seller. When a buyer or seller doesn’t complete an obligation, they take it seriously and we may limit or suspend their account privileges. They work to make sure that members on the art gallery are honest and fair.

Buyer eligibility and other restrictions

Buyers who have purchased items on the art gallery site are eligible for the Buyer Protection Policy. Buyers who file a case through the art gallery Buyer Protection, but who did not purchase an item on the art gallery, will be redirected to the existing resolution process for the site they used, if any Sellers will use the resolution process initiated by the buyer. Resolution responsibilities and protections are outlined on the site of registration.

Fraudulent charges not covered

The Fraudulent charges to a credit card or a PayPal account are not covered by the art gallery Protection Policy. If notice any charge on the customers PayPal account that did not authorize, report should be in the PayPal Security Center. Fraudulent charges made through the credit card should be resolved with the credit card company.

Payment methods not allowed on eBay

In this site buyers can’t ask to sellers to the following things.it is the payment method of the art gallery. so their specific system of payment system.

• To Send cash through the mail is not applicable
• To Send cash or money orders through instant, point-to-point cash transfer services (that are not banks) such as Western Union or MoneyGram
• To Mail checks or money orders (except for items in categories specifically permitted in the local and specific bank)
• To Pay through bank-to-bank transfers (except for items in categories specifically permitted in the local and specific bank)
• To Pay by “topping off” a seller’s prepaid credit or debit card
• To Pay using online or other payment methods not specifically permitted in this policy

References

1. http://portal.ebay.eu/msn-UK/viewed on 24th June,2011
2. http://pages.ebay.com/securitycenter/index.html analysed on 24th June,2011
3. http://pages.ebay.com/aboutebay/thecompany/companyoverview.html analysed on 25th June,2011
4. http://www.ebayonlocation.com/ analysed on 26th June,2011
5. http://www.randomthink.net/misc/ebay/ analysed on 27th June,2011
6. http://www.kiwipainting.co.nz/ analysed on 21th June,2011
7. http://www.net-art.it/artyou/home-e.shtml viewed on 24th June,2011
8. http://www.mynewsletterbuilder.com/email-marketing/art-gallery viewed on 28th June,2011
9. http://artmarketingsecrets.com/2009/05/how-to-attract-galleries-to-your-art-website-part-5.html viewed on 22th June,2011
10. http://www.net-profit-marketing.com/marketing-online-art-gallery.html viewed on 29th June,2011
11. http://www.thesugarhousegallery.com/art-gallery-marketing-strategy/ analysed on 24th June,2011
12. http://artistmarketingsalon.wordpress.com/nyc-gallery-list/ analysed on 22th June,2011