Business Proposal Regarding a Business Idea - Essay Example

? Business Proposal Executive Summary Business - The of the business is Maritime Transportation Company is located at Hamshire Town. Business Ownership - Business will operate on a sole proprietorship basis by Eric Mayoma. Business Address: Maritime Transportation Company, 52/14 Hamshire. The business will deal with the sale of hardware products and transportation. The business is important, as there is high demand of the goods and products in the building industry. Maritime Transportation Company customers will include Institutions like Insurance, Building Societies, and companies. The competitors include the following; major companies like Freight Transport Association Limited, and Transport Association Company. The price of the products will be determined by the cost of supply and demand, and competition in the market. Others include the purchasing power of the clients. Strauss, (2012, p. 110). Advertisement will be through, radio, posters, newspapers, and person to person. Distribution will be through zero channels like producer-Wholesaler-customer. Maritime Transportation Company will get its goods from the depot in the industrial area in Hamshire downtown and transported to the warehouse. The production facilities and equipments will include the products taken from warehouse downtown such as cement, iron rods, iron sheets, nails, wood, cardboards, building materials, and house appliances. Introduction Business Name - Maritime Transportation Company will be the name of the business. The name is easy to pronounce and remembered. The business will start at the beginning of October 2012 and will be based at Hamshire town, Englang, United Kingdom. Form of Business - Business will be sole-proprietorship, run and managed by Eric Mayoma who has experience in driving and business skills in entrepreneurship education acquired from Dakota State Technical Teachers Training College as described by Mulcahy, (2011, p. 142). The owner chose this type of business because of its market in the growing population. Another reason is that there is adequate means or chances of employment in the State. The entrepreneur decided to take this business given that he has adequate resources in education and enough money to start the business. In this type of business, there is less competition as compared to other businesses in the market like passenger service vehicles and petroleum oil selling companies. Business Location - It is located at Hamshire Town. The entrepreneur chose the location because of the following reasons, transport network, availability of electricity, security is tight, and near to customers (Adamson, 2005, p. 291) The business will deal with the buying, storing, and transporting all the different types of hardware especially those used for building in the building industry. These goods are stored and sold to the customer. Customers who do not have any means of transport are given a means of transport at a minimal fee. Also, loading and off loading products to the vehicle is free as a form of motivating the customers to come again. Other services in the business will include giving discount to customers, who buy in large quantities. This creates good public relation by rendering services to customers in selling, packing, and transportation to their destination. Customers strategically locate the business building to enhance ease identification. This is because customers are coming to purchase other goods and services from shops, warehouse, and the supermarket along the two roads. The business will consist of two warehouses, a 3-roomed office, one for the manager, secretary, reception room, and a conference hall. Many clients especially on the left wing have not hired the newly established building. Therefore, the entrepreneur sees that as an opportunity to his business as explained by Root & Koenig, (2006, p. 182). The business will mainly be known as sole-proprietorship and owned by one person. The business was chosen for a number of reasons. The reasons include profit making, challenges, opportunity, and independency. The owner wants and intends to utilize the skills he got in the college and become self employed in order to exercise and get his dream come true bearing in mind the above four reasons. The entrepreneur intends and plans that in the future when the business would have expanded he will join his friends who also have plans to start their own businesses. They will join and register for partnership business of about five to ten persons. Later on, they will form a registered limited company having in mind the issue of making more profit utilizing the opportunities being independent and facing the prevailing challenges in the market as explained by Bangs & Henricks (2005, p. 93). This type of business will offer services and products (goods) mainly for building purposes such as cement, and iron sheets. The entrepreneur intends to have his business as small-scale sole-proprietor business. Then later he will operate and enlarge it as sole-proprietor large-scale business. When the business has expanded he will register and form a partnership. Hamshire is a well developing town in terms of business, infrastructure, telecommunication, and marketing has attracted many investors from within and outside the town to invest in different businesses. The climate of the town is good and conducive for business. Other reasons include clean water, good infrastructure (road), housing, medical care, security and availability of readily food staff. The targeted customers are located within and outside the town. These customers move to the town to purchase their goods since the prices are low due to many competitors who tend to lower prices to attract customers (Levison, 2009, p. 324). Transportation of goods to customers is easily accessible due to good roads within and outside the town; hence the breakage of vehicles is minimal. The ready market provided by builders who provide money to buy material has also promoted the business. Goods transported are paid together with the price of goods purchased. The business intends to give the best quality services in the building and agricultural industry in small quality where minimum procedures are to be followed. The short term goal of the business is to start a small-scale business with one small light vehicle. The vehicle is for transporting goods and rendering services to few customers. The entrepreneur is anticipating start the business in the month of October 2012 after sufficient research. The promising areas covered are marketing trends, competitors, population, customers, price trends, communication, and telecommunication. After getting sufficient information, he will be ready to start the business given the time and resources. Marketing plan - The target for the business will be mainly those companies dealing with building and construction of like building societies, estates, companies, commercial and domestic purposes. These customers will be purchasing the goods on retail and wholesale purpose depending on the purchasing power. According to Root & Koenig (2006, p. 182), large companies will be buying on large-scale while the other will purchase in retail or small-scale. The trend or the population is large enough to make the business to expand in the near future. The customer who buys in both large and small scale is willing to buy the products and given time, bearing in mind the need for catering for the population within and outside the town. In all the areas mentioned, there is a crucial need for housing, schools, hospitals, and government offices. This is because many competitors are venturing into town for business investments. The customers are able to purchase products and be transported to their respective residential or business premises without spending much money. In order to attract customers, the entrepreneur will carry out research personally from his competitors to know the customers. Upon getting the potential customers, he will make contact through writing and telephone to them of his newly established business and quote lower prices, give credit, offer low discount, and free samples. The owner will also visit them personally to know the psychological targets and needs. At first the owner upon getting the customers, he will treat them well and offer services and products by way of transporting them to their destinations. Other ways used are such as advertising through the potential customers, family members, and friends. The company will receive stiff competition from Freight Transport Association Limited, and Transport Association Company. According to Mulcahy, (2011, p. 142), the weaknesses of the competitors that the company can take advantage of are lack of adequate finance and experienced staff. These major competitors affect the proposed business to be started at the beginning of October 2012. This is because they lack enough finance and public relations. Others are distantly located in areas such as Lancashire and Oxfordshire. The owner of the proposed business upon carrying out sufficient research for the market mix and customers, he will utilize his skills to overrun his competitors to win the customers satisfaction. This will enable him obtain greater profit in the market bearing in mind that the demand for the building sector is growing up due to high demand for building materials. He will utilize existing channels of distribution to satisfy the customers and market demands. In promoting the business, the owner intends to give special offers at the onset of business. Each customer will be given or rater be added a certain quality on purchased goods. This will motivate them to continue buying the products. Credit will also be used and free transport for some time. For those who will buy in bulk reasonable discount will be given to them as compared to those buying in small quantities. Advertisement will be used in order to promote the business through posters, radio, telephone, and verbal communication to the customers as explained by Nugent (2009, p. 273) Business promotion will include providing delivery notes and invoices to the customers bearing the business names, address and vehicle registration numbers. All vehicles will bear one color such as green or red on the cabin sideways. Posters will be used because they are accessible to many people. The enterprise will employ a zero channel in the distribution of its products. Customers will be directly liable to buy from the business premises. The way of transporting will be provided to all at a reasonable price. In this case, Frey (2008, p.364) argues that the entrepreneur will arrange to get goods from downtown along the industrial area from the wholesalers to his premises, and then sell and offer transportation where there is a lack of transport. The staff members include the manager who is the sole-proprietor. He deals with all aspects of the business like solving problems concerned to the company. He is responsible for all losses incurred by the business. The secretary is the personal assistant to the boss and does other duties like receiving massages, operates the telephone and does the work of receptionist. Marketing officer is the person deals with the work of finding market. Marketing the business goods and services to customers is very important for the business to succeed as explained by Sant (2004, p.180). The storekeeper or cleaner will be responsible for ensuring that the goods are arranged according to the required procedures, and maintaining cleanliness in the store. He handles the keys to the stores, ensure that the stores are repaired and maintained as required by the business organization. He is under the authority of the secretary and the owner of the business. The security guards will guard the premises during scheduled times. He will ensure that the goods and the premises are kept from thieves and way ward passers-by. He will also be welcoming visitors; give them the visitors’ book when entering the main gate. Mckeever, (2010, p. 251). After this, he hand it over to the massager who will take them to the reception room. The messenger is responsible for all errands in the office. The two drivers will be responsible for driving the vehicles to the recommended assignments ordered by the organization. They will ensure that the vehicles are repaired and maintained according to the laid down rules and regulations. The owner of the proposed business upon carrying out sufficient research for the market mix and customers will utilize his skills to overrun his competitors to win the customers satisfaction. This will enable him obtain greater profit in the market bearing in mind that the demand for building sector is growing up due to high demand for building materials. He will utilize existing channels of distribution to satisfy the customers and market demands. Promotion and Advertisement - Channels of advertisement will be used such as television, newspapers, and magazines. Neman, (2001, p. 310). Newspapers - The entrepreneur will enter into a contract with the advertising company, pay some money, and then have the document put in the newspaper and passed to the sellers and to the recruits. Upon receiving the documents, it shows the job description and specification. They will show where the place of work is and required to visit the place on the specified date. Magazine - Through magazines such as parents, weekly Review, and step will be considered useful to reach qualified personnel. Radio - Through this means, the job description will be made through announcement reaching many people within a short or long distance. Person to person - Family members, friends, and potential customers will assist in looking for qualified workers for the casual and skilled jobs. The entrepreneur will have different agencies like government experts, such as ministry of national planning, ministry of finance and commerce for advisory and financial support. Finch, (2010, p. 127) points out that other agencies will include those from non-governmental organizations (NGOs) and friends who will assist in offering advice on how to manage and run the business effectively. Toyota companies will assist in repair and maintenance of the vehicles. Medical experts will be hired from the ministry of Health to oversee the health of business premises on the special scheduled days, at minimal costs. NGO’S and friends will be contracted to go through the books of accounts to see how they are kept and give recommendations and technical advice. Operational plan - For Maritime Transportation Company to have productive business that is profitable, efficient, and effective, the following facilities and equipment are necessary. Building bricks or stones should be made available to erect the warehouses and staff offices. Also, some steel should be bought for the construction. Transporting and staff vehicles should be bought to make work easier when moving from one destination to another. This is during supervision and movement of goods and services as enumerated by Kleiner & Abrams, (2003, p. 274). After the transaction is done, the products are taken from any of the stores, and loaded to the vehicles outside then transported to the customer’s destinations. The flow of the activities, working in the premises is done so effectively, leaving customer very satisfied with his clients. Production Progress - The following stages will be the guiding main of transaction of goods and services to the consumer stage involved. Manufacture - distribution - Wholesaler – retailer – consumer. Manufacturer – Wholesaler – retailer – Consumer. Both the channels are applicable when distributing goods to the consumer. The business deals mainly with the purchase storage and supply of goods to these customers. The channels involved are easy for example, zero-rated channel of distribution. Holtz, (1994, p. 324). The design the entrepreneur will use will be to purchase and store products, and delivering goods to the customers premises. The proposed business will major in all building materials like cement, iron rods, iron sheets, house office fixtures or appliances, wood, and nails. These goods are transported in the owner’s vehicle to the warehouse and later to the customer’s premises on request. Government Regulations - The government regulations or rules will be followed to the later. Such regulations will be used on goods to be stored, health of workers, hygiene of the premises, foodstuffs taken there, environment pollution, noise pollution, and pollution side –effects to the business (Advani, 2006, p. 162). Government experts will be hired to come and carry out inspection in all areas of the business premises, workers health, goods, and services rendered to the customers. Financial Plan - The total plan capital to start the business is ?500,000 of ?300,000 will be taken inform of a co-operative society bank. Pre-operational cost and working capital requirement are expected to be ?140,000 and ?280,000. Variable costs estimated are ?300,000. Total sales estimates for starting year will be ?2,000,000. This gives a contribution margin of ?900,000. Conclusion It is important for every entrepreneur to make a business proposal before venturing into any kind of business. This is because the entrepreneur will be able to know the competitors, their weaknesses, and skills to apply. In addition, he will be able to know the capital required to start the business and the sources of the funds. Market of the products and services can be analyzed by use of the business proposal. The entrepreneur can use the business proposal to source funds from financial institutions. This is true because the entrepreneur will prove to the financial institutions his seriousness as outlined by the proposal. References Adamson, E. J 2005, Law for business and personal use, Cengage Learning: Missouri, US. Advani, A 2006, Investors in your backyard: how to raise business capital from people you know, Nolo: Washington, D.C. Bangs, H. D & Henricks, M 2005, Business plans made easy, Entrepreneur Press: Irvine, CA. Barrow, C 2011, Starting a Business from Home: Choosing a Business, Getting Online, Reaching Your Market and Making a Profit, Kogan Page Publishers: United Kingdom. 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