unit 2 assignment management

 

Access Sections 3.1 and 3.2 from the business plan outline located in Course Resources. In this Assignment, you will develop a description of your industry using resources provided and/or ones you find on your own. Then you will complete both a chart and an explanation of the chart that will outline your target customer(s).

Assignment checklist:

1. Describe your industry

   Industry description: (Include: economic situation; governmental regulations and global considerations either through Internet or location)
   Resources used

2. Complete customer analysis

   Explanation
   Table

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Access the

rubric

.

BUSINESS PLAN

[Your Name], Owner
Date

1

. EXECUTIVE SUMMARY
1.1 Product

1.

2

Customers

1.

3

What Drives Us
2. COMPANY DESCRIPTION
2.1 Mission and Vision Statements

2.2 Principal Members at Startup (In Unit 7 you will expand on this section to include medium and long term personnel plans for all team members, including the line staff.)

2.2.1 Using chapter 10 of your text, write the plan, using the section in Chapter 10 that shows how to introduce each team member and describe their background and responsibilities. You will start with the leaders and managers, then discuss other employees as needed for your company to grow.

2.2.2 Use this spreadsheet to show the planning

Leaders/managers (unit 1)

 When needed (number of months/years after opening)

 

 

 

Outside Services

Needed

Key Functions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Add line staff (Unit 7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.3 Legal Structure
3. MARKET RESEARCH

4

>3.1 Industry (from SBA, Business Guides by Industry – https://www.sba.gov/managing-business/business-guides-industry, and Bureau of Labor Statistics – https://www.bls.gov/iag/tgs/iag

5

1.htm, )

3.1.1 Industry description

3.2.1 Resources used

3.2 Customers (from SBA site fill in worksheet, then use text for spreadsheets and follow-up explanations)

Add SBA part here

Then:

Fill in spreadsheet using this example from the text:

Age:

Income:

Sex:

Family:

Geographic:

Suburban

Occupation:

Attitude:

Age:

Age:

Income:

Income:

Fixed

Sex:

Male or Female

Sex:

Male or Female

Family:

Family:

Empty nest

Geographic:

Suburban

Geographic:

Suburban

Occupation:

Occupation:

Attitude:

Security minded, energy conscious

Attitude:

Security minded, energy conscious

Housewife :	Married Couple:
			Age:	35–65	35–55
			Income:		Fixed	Medium to high
			Sex:	Female			Male or Female
			Family:	Children living at home	0 to 2 children
			Geographic:				Suburban
			Occupation:	Housewife	Varies
			Attitude:	Security minded			Security minded, energy conscious
Older Couple:	Elderly:
55–75	70+
High or fixed
	Empty nest
White-collar or retired	Retired

Explain who you are targeting and where they are located beginning with the heading “Customers.” Insert information here using these guidelines:

Information About Your Target Market – Narrow your target market to a manageable size. Many businesses make the mistake of trying to appeal to too many target markets. Research and include the following information about your market:

Distinguishing characteristics – What are the critical needs of your potential customers? Are those needs being met?  What are the demographics of the group and where are they located? Are there any seasonal or cyclical purchasing trends that may impact your business?

Size of the primary target market – In addition to the size of your market, what data can you include about the annual purchases your market makes in your industry? What is the forecasted market growth for this group? For more information, see our

market research guide

 for tips and free government resources that can help you build a market profile.

How much market share can you gain? – What is the market share percentage and number of customers you expect to obtain in a defined geographic area? Explain the logic behind your calculation.

3.3 Competitors (from SBA site fill in worksheet, then use text for spreadsheets and follow-up explanation)

Then:
Fill in spreadsheet using this example from the text:

4

5

4

5

5

5

3

4

4

4

4

5

4

5

3

5

4

5

4

4

3

5

5

4

5

3

5

3

5

5

5

4

5

3

5

Estimated Market Share

Competition 60%

Home Improvements Inc. 30%

Product Line

4

5

Quality

Technology

Advertising

2

Sales Force

3

Distribution

Price

Installation

Ease of Use

Appearance

Design

Useful Life

Responsiveness

Availability

1

Technical Expertise

Repair Service

Efficiency

Guarantee/Warranty

On Time Capability

Industry Reputation

Write an explanation of your findings using information from the spreadsheet using these guidelines:

· Market share

· Strengths and weaknesses

· How important is your target market to your competitors?

· Are there any barriers that may hinder you as you enter the market?

· What is your window of opportunity to enter the market?

· Are there any indirect or secondary competitors who may impact your success?

· What barriers to market are there (e.g., changing technology, high investment cost, lack of quality personnel)?

3.4 Competitive Advantage

Read: Sustainable competitive advantage or temporary competitive advantage: Improving understanding of an important strategy construct.

3.5 Regulation (use SBA site to fill in blanks, and use https://www.sba.gov/managing-business/business-law-regulations as a resource)

4. PRODUCT/SERVICE LINE

4.1 Product or Service

4.2 Pricing Structure

4.3 Product/Service Life Cycle

4.4 Intellectual Property Rights

4.5 Research & Development

5. MARKETING and SALES

5.1 Growth Strategy

· A market penetration strategy.

· A growth strategy. This strategy for building your business might include: an internal strategy such as how to increase your human resources, an acquisition strategy such as buying another business, a franchise strategy for branching out, a horizontal strategy where you would provide the same type of products to different users, or a vertical strategy where you would continue providing the same products but would offer them at different levels of the distribution chain.

· Channels of distribution strategy. Choices for distribution channels could include original equipment manufacturers (OEMs), an internal sales force, distributors, or retailers.

· Communication strategy. How are you going to reach your customers? Usually a combination of the following tactics works the best: promotions, advertising, public relations, personal selling, and printed materials such as brochures, catalogs, flyers, etc.

After you have developed a comprehensive marketing strategy, you can then define your sales strategy. This covers how you plan to actually sell your product.

5.2 Your overall sales strategy should include two primary elements:

· A sales force strategy. If you are going to have a sales force, do you plan to use internal or independent representatives? How many salespeople will you recruit for your sales force? What type of recruitment strategies will you use? How will you train your sales force? What about compensation for your sales force?

· Your sales activities. When you are defining your sales strategy, it is important that you break it down into activities. For instance, you need to identify your prospects. Once you have made a list of your prospects, you need to prioritize the contacts, selecting the leads with the highest potential to buy first. Next, identify the number of sales calls you will make over a certain period of time. From there, you need to determine the average number of sales calls you will need to make per sale, the average dollar size per sale, and the average dollar size per vendor.

5.3 Communication Strategy

5.3.1 Internet Strategy (from the text)

5.3.1 Tracking ROI form website

5.3.2 Discuss how you will assure ethical practices are being used in your marketing and selling.

6. FINANCIAL PROJECTIONS

6.1 Profit & Loss

Advertising

	Year 1		Year 2		Year 3
Sales
Costs/Goods Sold
GROSS PROFIT OPERATING EXPENSES
Salary (Office & Overhead)
Payroll (taxes, etc.)
	Outside Services
Supplies (Office & Operation)
		Repairs & Maintenance
		Car, Delivery & Travel
	Accounting & Legal
		Rent
		Telephone
		Utilities
		Insurance
	Taxes (Real Estate, etc.)
		Interest
	Depreciation
	Other Expenses
TOTAL EXPENSES
NET PROFIT BEFORE TAXES
Income Taxes
NET PROFIT AFTER TAX
Owner Draw/Dividends
ADJUSTED TO RETAINED

6.2 Cash Flow Complete section 6.3 of your business plan outline

Year 1

Year 2

Year 3

Outside Services

Repairs & Maintenance

Advertising

Car, Delivery & Travel

Accounting & Legal

Rent

Telephone

Utilities

Insurance

Taxes (Real Estate, etc.)

Interest

Other Expenses

Pre-Startup EST.
Cash on Hand
CASH RECEIPTS
Cash Sales
Collections from CR Accounts
Loan/Cash Injection
TOTAL CASH RECEIPTS
TOTAL CASH AVAILABLE
CASH PAID OUT
Purchases
Gross Wages
	Supplies
SUBTOTAL
Loan Principal Payment
Capital Purchase
Other Startup Costs
Reserve and/or Escrow
Others Withdrawal
TOTAL CASH PAID OUT
CASH POSITION

6.3 Balance Sheet

Assets	Start Date:	End Date:
CURRENT ASSETS
Cash in Bank
Accounts Receivable
	Inventory
Prepaid Expenses
Other Current Assets
TOTAL CURRENT ASSETS
FIXED ASSETS
Machinery & Equipment
Furniture & Fixtures
Leaseholder Improvements
Land & Buildings
Other Fixed Assets
TOTAL FIXED ASSETS (net of depreciation)
OTHER ASSETS
Intangibles
Deposits
Other
TOTAL OTHER ASSETS
TOTAL ASSETS

Liabilities & Equity

CURRENT LIABILITIES

Accounts Payable

Interest Payable

Taxes Payable

Notes, Short Term (due in 12 months)

Current Part, Long-Term Debt

TOTAL CURRENT LIABILITIES

LONG TERM DEBT

Bank Loans Payable

Notes Payable to Stockholders

LESS: Short-Term Portion

Other Long-Term Debt

TOTAL LONG-TERM DEBT

TOTAL LIABILITIES

OWNER’S EQUITY

Invested Capital

Retained Earnings

TOTAL OWNERS EQUITY

TOTAL LIABILITIES & EQUITY

Customers

6.4 Break-Even Analysis

Inventory

Supplies

Repairs & Maintenance

Advertising

Car, Delivery & Travel

Rent

Telephone

Utilities

Insurance

Interest

Depreciation

DIRECT COSTS	Fixed Costs ($)	Variable Costs (%)
Cost of Goods Sold
Raw Materials
Direct Labor
INDIRECT COSTS
Salaries
Taxes
Other Costs
Total Fixed Costs
Total Variable Costs
BREAK-EVEN SALES LEVEL:

6.5 Financial Assumptions

6.5.1 Assumptions for Profit and Loss Projections

6.5.2 Assumptions for Cash Flow Analysis

6.5.3 Assumptions for Balance Sheet

6.5.4 Assumptions for Break-Even Analysis