Remote-Controlled Camera Company Planning - Business Plan Example

BUSINESS PLAN FOR REMOTE CONTROLLED CAMERA COMPANY Name: Course: Tutor: Date: BUSINESS PLAN FOR REMOTE CONTROLLED CAMERA COMPANY Executive summary The Mission Statement The mission of the business is to produce economic friendly high-tech cameras of commercial benefit, which will help in the improvement of video coverage and reduction of loss of lives in battles. The manufacture strategies will ensure that the device is efficient, flexible, and efficient. This ensures that the device is authentic and adaptive to battle grounds where few journalists dare report. Company Information The company is a technological firm developed that prides in being in the fore front is using creativity and innovation in technology to design products that are crucial at tackling notable problems in the society. Therefore, it is a problem-driven company that always seeks and come up with great solutions for the technological problems. Therefore, the idea of developing a remote controlled camera came after identifying a problem in which journalists risk their lives trying to capture information and videos at battle grounds. These journalists often place their lives at stake when they make this decision. This is because the kind of information that can be captured in these settings can be of great interest to many people and thus it can lift the reporting status of the journalist. With the lives of these journalists in mind and following the availability of technology within the disposal of the company, the idea popped up. Growth Highlights The company is likely to grow at a rate of 14 percent per annum for the next three years because it aims at the production of effective products, which will be promoted through rapid advertisements. The economic friendly nature to be imposed on the products will lead to increased purchases when coupled with advertisements and promotions. The demand for the product by media houses is also expected to boost the growth of the company in an immense manner. Despite huge start up costs, the value of the product is expected to ensure that the company breaks even before the end of the three years. From the profit and loss statement analysis, the company is projected to make a loss of $2492.75 in the first year. This is attributed to the fact that there are many initial expenses and the number of clients have not increased, leading to less income and more operating expenses. However, in the second and third years, the company will be making a lot of profits. These profits are projected to be $380434.36 and $ 388228.4 respectively. Financial Information  The following is a three year profit and loss statement for the project: Profit and Loss Statement Year 1 Year 2 Year 3 Income 1069468 1119467.9 1200000 Debtors 181350 281350 291350 Total Income 1250818 1400817.9 1400818 Advertising/Promotion 6000 6000 6000 Employee Benefits @ 5% of Wage 32423.04 32423.04 32423.04 Entertainment 3000 3000 3000 Insurance charges 2500 2500 2500 Lease - Equipment 900 900 900 Licenses & Permits 800 800 800 Loan Payment (Principal & Interest) 480762.8 247835.73 247835.7 Memberships & Subscriptions 300 300 300 Miscellaneous 2400 2400 2400 Office Supplies 600 600 600 Phone/Fax/Internet 2470 2470 2470 Professional Fees 2500 2500 2500 Rent 32500 32500 32500 Repairs & Maintenance 3600 3600 3600 Salaries & Wages 648460.8 648460.8 648460.8 Travel 2300 2300 2300 Utilities 24000 24000 24000 Vehicle Fuel 7794 7794 7794 Total Operating Expenses 1253311 1020383.6 1012590 Net Profit/Loss -2492.75 380434.36 388228.4 Break Even Analysis Break Even Point CONTRIBUTION MARGIN=TOTAL REVENUE - VARIABLE COST ITEM DESCRIPTION AMOUNT AMOUNT Total Revenue 4052453.9 LESS VARIABLE COST Purchases 351000 Electricity bill 16800 Telephone bill 4940 Water bill 9300 Stationery 6200 Miscellaneous 2050 TOTAL VARIABLE COST 390290 CONTRIBUTION MARGIN 3662163.9 CONTRIBUTION MARGIN PERCENTAGE Contribution Margin Percentage=Contribution Margin/Total Revenue × 100% = 3662163.9/2651635.9X100% = 90% Summary of the future plans  The company is established through the existing gap in the media industry because the currently produced cameras cannot be controlled by the remote, hence a person has to take them to the field in order to enable it capture the information. The cameras of this company can effectively be controlled by the remote and this closes that gap of being physically present at any given relevant event. As the company grows, it will engage in the production of bullet proof cameras with wireless streaming of up to a radius of 20 kilometers. This will ensure that the products can stream all the happenings in a building or battle ground from a far distance. Competition and products The key competitors in this field are the Dallmeier Company and V-Ron Technology. All these companies produce high tech security products. Dallmeier Company has the advantage of trust in its customers (Dallmeier, 2014) and thus, convincing its customers to leave its products and settle for others can be difficult. V-Ron Technology on the other hand, besides producing high quality security products, it has an advantage in the global market because it has its products worldwide (Vron, 2014). The advantage of this company is its ability to produce cameras that can be controlled using a remote. No other company does this and this is likely to attract customers especially owners of large buildings, highly secured places like barracks and even companies. In addition, the affordability of these products could also help in the attraction of more buyers. This company also wishes to incorporate some practices as its strengths such a five-year guarantee, using the customer feedback as the basis of improving the products and the employment of highly skilled personnel. Promotional activities such as free installation in places whose security attracts public attention could also be strength of the company. The company also faces various weaknesses that make it overcome by the competitors. The first one is its size, which implies that it has a low market share. Nevertheless, as mentioned earlier, the company wishes to overcome this through increased advertisement and promotional activities. The other weakness of the company is the large size occupied by the cameras because they need a space to enable them rotate freely. This could make them visible to thieves and terrorists making them to avoid the cameras. However, as the company grows, it will look for ways of reducing the size of the cameras and the various techniques of making them invisible to intruders. Key Audience for your business plan The key audiences for this business plan are the technology specialists who have interests in the security products. They could use this business plan to assist the company with various inventions that might help it overcome its weaknesses. In addition, the financial institutions also need this plan to assess the company on its ability to become profitable and they can also use it to know the amount of loan they can provide to the company. References Dallmeier (2014). Dallmeier Technologies. Retrieved from http://www.dallmeier.com/en/company/production/cameras-made-in-germany.html Stefoff, R. (2008). Security vs. privacy: Open for debate. New York: Marshall Cavendish Benchmark. Vron (2014). V-Ron Technology. Retrieved from http://www.vroncctv.com/ Read More