The Innovative Business of Epiphany Junior - Case Study Example

Entrepreneurship Business Plan Company Epiphany Junior Business plan Contents Executive Summary 3 Company 3 Market Analysis 4 Organization & Management 5 Service or Product Line 6 Marketing & Sales 6 Financial Projections 7 References 9 Executive Summary Epiphany Junior is an U.S. based company headquartered in Florida. The company is going to offer online educational packages to the young generation so that they can develop their entrepreneurial skills and knowledge through these programs. The target customers are middle and lower middle income group of this country. The management of this company also wants to expand its business activities outside Florida. The company is using several communication tools such as news paper, internet, social networking sites etc. for attracting customers to its offered packages. Management is also concerned to handle the financial resources in a proper and efficient way so that all the expenses of the business can be meet by the earned revenue and along with that company can earn sustainable percentage of profit in the business. Company Description Epiphany Junior is such kind of program which will provide innovative business ideas and try to bring out entrepreneur skill of individual person. Especially youth generation will be benefitted from this kind of program. This project is going to launch online course study which will help to develop the entrepreneurial behaviour of young generation by using chronological method. Creativeness and modernization are the main focus areas of this particular project. Again the project will help to develop individual quality, personality, knowledge, and attitude and management skill. The business owner of this project wants to expand this business outside Florida also. So he will target the other countries which are based in U.S. where such kind of online educational programs are in high demand. Basically the project is based on Florida. So the domestic market will be the main focus area to achieve maximum success and this success will help to achieve more market share in the other countries in U.S. Target customers of this project will not be only the young generation and children but also their parents who want to fulfil their children’s dream in a successful way. If the project can implement such kind of courses which can meet the demand and requirement of the targeted customers then only it will be successful to gain competitive advantages in the market. Market Analysis International online learning market is one of the largest and fastest growing markets in the world especially in U.S. It is forecasted that more significant growth can be observed in this particular market over the next three years. It is also estimated that the growth will increase more than 7 % over the next five years. This industry is in growth stage and online learning market is enough matured. So this can be said that investing money in such kind of project will be profitable. Mainly young generation and their parents are major customer group of this project. Again the educational institutions and business schools are also targeted customers of such kind of projects. So this can be said that target market of this project is not a narrow market for expanding this business (Ferrell and Hartline, 2012). Epiphany Junior will use two major approaches to analyze its market trend. These approaches are 5 P’s and AIDA method. Marketing 5 P’s method includes people, product, price, place and promotion. The management of this project should take initiative to give proper training to its employees so that they can understand the customer’s preferences in a better way and provide quality services to satisfy them. Educational courses which the project will offer to its target customers should be well briefed, reliable and valuable in nature. Value based pricing should be charged in this regard. The project will mainly focus on the residential areas and educational institutions. Targeted customer group should belong to the middle income and lower middle income group. Location should be selected on the basis of communication and transportation facilities. News paper and internet can be used for the promotional purpose. Now AIDA model will be focused on the attention, interest, desire and action perspectives. This project can gain the attention of the targeted customers through demonstrating activities on focusing quality and value of the offered products or services. Again continuous communication process from the end of the business also helps to create awareness about the quality of offered services to the potential customers. When customers get value based pricing approach then their interest will be increased. Innovative promotional strategy also helps to generate interest among them. Critical needs of potential customers are quality and value added service with affordable price. If the project can meet those desires then automatically dependency and reliability of customers will be increased on this business. Seasonal and cyclical purchase trend will impact on this business in a positive way (Allen, 2012). In the action part organization should set clear and transparent goals and objectives so that each objective can be understandable by every concerned party such as investors, customers, employees etc. At present size of the primary target market is 30 % which is fixed by the organization. Now the forecasted market growth for this group is 5 % in each year as there is rapid growth for online education in U.S. Organization & Management There should be well organized organizational structure with customer training department, legal associate, human resource manager, finance and accounting manager, marketing manager etc. All the investors will acquire the similar percentage of ownership of this business which they will invest in it. Though the business is small in size but it has to face legal issues and problems time to time. So a professional, experienced legal associate is required to support the business activities. HR managers also should be experienced in the relevant field so that they can recruit proper person in the appropriate position and set proper goals and objectives for the success of this business. Finance & accounting manager should handle the financial resources of this business in a proper and efficient way so that all the risk factors can be dealt through strong financial condition of the organization. Marketing managers as well as whole marketing department will be responsible to do promotional activities in the market so that people can get information about the value added services and quality products of this project. Customer training department is one of the major departments of this organization which is involved to conduct training program for participants or customers. For this training program more than one expert are required in the relevant field. Head of the each department will be included in the board of directors and their minimum qualification should be MBA. The organization should appoint external auditors so that proper and unbiased audit work can be conducted within organization for getting better benefit in future. Service or Product Line The company is going to provide online educational program as their product to the target customers in the market. They will offer online packages for the purpose of study. These packages will motivate the students, their parents and young generation to develop entrepreneurial behaviour. The aim of this business is to provide enterprising courage and attitude within educational framework. So this will be a unique feature of these offered packages. Again the packages are also covered all the educational requirements in the relevant field. So this can be said that this idea will be acceptable by the target customer group. Marketing & Sales In case of marketing and sales the organization should adopt proper communication strategy at first to create awareness among the target customers. If customers cannot get information about the quality of services then they will not enrol their names in the program packages. When they start to rely on the offer packages of this business then only the business can start to earn sustainable profit and can achieve growth in the industry. For the communication process they can use internet and news paper as the medium of communication. Again they also can use media channels for providing detailed information about the offered programs. Social networking sites will also be useful in this regard for promoting quality based services and generating interest among potential customers. Basically single way marketing strategy will be adopted by this company. Marketing managers should build up personal relations with customers and various entities in the market who are related in this business such as many educational institutions and business schools. Financial Projections Success of business not only depends on the number of customers but also the efficiency of management to handle the available fund and control all the related cost in a significant way. A sustainable budget should be prepared by the management to attract the investors. If investors will not be attracted by the composed financial plan of this company then capital generation will be a problematic area for this business. Again if the business wants to take loan from banks then also attractive budget and efficient plan for allocating resources are required. State incorporation fee should be incurred by this company (Kimmel, Weygandt and Kieso, 2010). Now the start up budget and expected monthly revenue/ projection is as follows. Fixed Cost Amount $ Total Amount $ State incorporation fees   200 Assets     Inventory 3,000   Vehicle 250,000   Computers 30,000   Equipments 45,000 328,000 Total   328,200 Variable Cost Amount (per month) $ Total annual Cost $ Telephone 1,500 18000 Electricity 1,500 18000 Rent 7,500 90000 Salaries 30,000 360000 Travelling allowances 6,000 72000 Office supplies 16,000 192000 Legal fees 250 3000 Marketing materials     Brouchures 1,500 18000 Business cards 1,000 12000 Insurance Premium 3,000 36000 Website development 2,500 30000 Total   849000 Income Statement for the year ended Particulars Amount $ Sales 2066416.757 Less: Variable Cost 849000 Net Profit 1217416.757 Profit margin 59% From the above mentioned estimated projection this can be observed that sales growth will be volatile in nature but it can meet the variable cost in every month except the month of December. At the end of the financial year the business can earn 59 % profit margin which is a positive sign for the future growth. References Allen, M. (2012). Analysing the Organisational Environment. Cambridge: Select Knowledge Limited. Ferrell, O. and Hartline, M. (2012). Marketing Strategy. Boston: Cengage Learning. Kimmel, P., Weygandt, J. and Kieso, D. (2010). Financial Accounting: Tools for Business Decision Making. Beijing: John Wiley & Sons. Read More