A Business Model for Entrepreneurship - Coursework Example

Business Plan Template Please find attached a BUSINESS PLAN TEMPLATE that you need to use for WORK. Please edit to use what you need. Remove any parts that you dont need from the template.   CONTENTS (See Sections Below) EXECUTIVE SUMMARY HISTORY OF YOUR BUSINESS AND THE CURRENT POSITION ABOUT YOU YOUR PRODUCT & SERVICE YOUR MARKET YOUR STRATEGIES PROBLEMS & FIXES (RISKS & MITIGATIONS) FINANCIALS (Spreadsheet) Important Note: Executive Summary A clear straight to the point summary of what your business is about. Sell it to the reader. (Write this last and capture the headlines from all of your paragraphs below). What is the market opportunity or need for your product/service? How will your business address this opportunity/need? How will it be delivered? Why will it succeed? How will you fund your business? How much will you sell, and what revenue/profit are you forecasting and at what cost? “The 20`s Club” is a community space targeting pre-dominantly the youth sector of community. The community space would be more of a club where young people can engage themselves in constructive dialogue, discourse and learn exciting new stuff. The club would be a vibrant venture for the youth to enjoy different kinds of activities, for instance, few of the state`s most acknowledged artists would be asked to offer a painting course, or an aerobics course, or the space may be used as a book club or a poetry club from time to time. One-day workshops or concerts may also be arranged. Thus, The 20`s Club would be a community space which could be used as an innovative social club to learn new stuff and exchange ideas. All the other clubs are too cliché and dealing with only one kind of activity, however, this club would be a new addition as it would be offering various activities depending on the need and time. It will however have a coffee shop in contrast to a cafeteria where people can come to socialize and have small snacks. The admission to the classes would be based on a monthly fees, also free seminars and activities can be arranged via funding from external sources (for instance those working for the cause of revival of arts). Also, permanent members would pay yearly fees to utilize activities on a priority basis at a discounted rate. There would be on the least two activities arranged per week, with around 50 members taking part on each on the average. The revenue in the first year may not be much, however, by the second year as the members network expands, considerable profits can be reaped. The profits in the first year are estimated to around €60,000 with the start-up costs of around €70,000, after which they are expected to be plummeted to 85,000 by the second year. History of your Business And the Current Position Talk about the history of your business or the history of your idea if you have not set up a business yet. Write about when you started, where your business is now and if you have made any sales. Are you a sole-trader or is it a limited company, and anything else of relevance. Give us some background on the business and its current position, and how your skills and experience are suited to success. This is a start-up business with little history related to the idea. There are a lot of clubs found here and there around the UK, yet these are pre-dominantly gyms, or night clubs, or other recreational clubs. There are a very few clubs, near to being non-existent, thus this club would be the sole-trader in setting up new and unique activities after market survey of the needs of the youth. About You You could have an experience, knowledge or skill that you could be taking for granted. Don’t underestimate what you can do and what you have done. Tell us about your experiences, ambitions and hopes with regards to the business. As an aspiring CEO to the company, I have enough confidence that i`d be able to acquire success in no time. I myself love to be involved into various activities, and am an active member of various such clubs. However, I feel that these clubs over-charge and offer only limited set of services (Kershman 2004). I also have a wide social network which will help me market my plan, also I know a lot of experts and entrepreneurs who would love to offer their expertise for the club. What is your educational background? However small or large, we would like to know. Tell us about your career and military history. If you are a spouse or dependant of someone who is in the military, please summarise here. Have you gone through any relevant training and have you any certificates that could assist in this business idea (Please attach them)? If you have other team members helping you, tell us about what they do. Will your staff have the right skills, experiences and/or qualifications to run the business effectively? Your Business Strategy What is your strategy for the first year? The strategy for the first year is to find a low-cost yet a vibrant location where the students and aspiring learners can easily commute to. Secondly, an effort would be made to minimize the costs, for instance, the coffee shop would initially be a small space which would only be serving bakery items and coffee. However, the furniture and other aesthetics won`t be compromised and an interior decorator would be hired to add a theme to the club, i.e. the club must explicate a positive aura and constructive energy. Thirdly, a wide range of services would be advertised for the club, initially starting with people within my own social circle. For instance, bakery chefs, painters and guitarists would be approached, and classes would be advertised where students can sign up at a minimal fee of 80 per week, with three days in a week. If more than 10 students sign up for a class, the space would be allotted for about four to six months. Also, underground bands would be approached to hold concerts, for which discounted passes would be sold initially. Similarly, to market the club, free seminars would be arranged on social issues by social workers and entrepreneurs in the relevant field. Once, an expansive customers base is achieved, the activities would also be diversified to include cooking classes, yoga, aerobics, dance classes, social media course etc. What are your objectives and goals to deliver this strategy? (Please make them SMART: Specific, Measureable, Achievable, Relevant, Time-bounded (ie have a deadline)) Following are the objective for the year 2014 in context to the business plan; Specific: The place must be ready by June 2014, and the first class must take place by August 2014. Measurable: Once the classes are functional, initial profits must roll down to about €5000 to €6000 in a month. Achievable: Around €60,000 must be covered by June 2015. Relevant: All startup costs must be covered by August 2014, and the profits from cupcake shops, yearly club fees, and classes must add up to about 10,000 per month Time-bounded: by 2015, around 10 classes must be going on, and a huge social event must be covered twice a week How are you going to meet these objectives? By starting off early, and marketing the club effectively, and customizing the packaged, the objectives may be met conveniently. Marketing is thus, a very crucial aspect to the business plan and thus a considerable budget must be allocated for the cause. What is your strategy for the next 2 to 5 years? I.e. the bigger picture. By the next 4 years, the 20`s club would be the next big thing in the town, and the trendsetters would find it quite necessary to sign up for atleast few of the courses. There must be a good word of mouth about the services offered. Also, every successful business must take a step towards taking social responsibility for causes to acquire a brand name, also to feel responsible enough (Mullins & Komisar 2009). The 20`s club must turn into a constructive social club where like-minded people can engage in similar activities and be a part of the vibrant community where they can make a change. Once a network of active individuals is formed, the club would also advocate for youth driven causes and the learners of yesterday would become the agents of change for tomorrow. What are your objectives and goals to deliver this strategy? (Please make them SMART: Specific, Measureable, Achievable, Relevant, Time-bounded (ie have a deadline)) Following are the objectives which must be met by the next five years: Specific: The 20`s Club must turn into a constructive community space by 2018 where effective campaigns must be run for instance, young leaders conference Measurable: The 20`s club must be making around €130,000 by 2019, out of which a considerable chunk is being spent on social causes as well Achievable: The 20`s club has alliances with other big clubs in the UK Relevant: The 20`s club has an online space as well, where online tutorials are floated to help the global community Time-bounded: By 2019, The 20`s club makes it to the most influential advocacy clubs voluntarily being supported by the youth How are you going to meet these objectives? The 20`s Club isn`t just going to make profits, it`s going to make customers. The club management is going to ensure that the customers get full satisfaction out of the customers, also it is going to make an added effort that people with potential are spotted out and intermingled with other peers with the same potential via holding club gathering to ensure that a vibrant community building is taking place. Explain the typical process for selling and delivering the service/product, including when you get paid for it (in advance, deposit, on completion, percentages for performance etc) A yearly club fees will be deposited by the start of the registering year, the payment for the courses would be paid in advance, and the tickets for the social events would also be booked in advance. Your Market Use figures, statistics or just plain text to support your explanation. (A picture can paint a thousand words - just make sure it’s the right one) Market Research – What can you tell us about your market? What is it worth, how well is it served, is it national or local etc The Club will be located in Central London, thus market research in London is crucial. London has a population of about 8 million which is expand in the coming years. Also, London`s population is comparatively younger than the rest of the UK where around 65% of the residents are aged under 44(Burgess 2014), which makes the target market for the group. Though the aim would initially be to target the youth segment, but since the working class constitute the class which would be able to afford most of the classes, people aged under 44 would be able to enjoy most of the services offered. Also, people aged between 18-40 constitute the age group where they love to equip themselves with a new skills set, thus that would be the opportunity window for the club. How do you know that there is a demand for your product/service? The 20`s club will market the idea that you are never too old to acquire the skills you dreamt of acquiring while you were in your 20`s. Thus, with new ideas and courses to appeal to a wider audience, the demand for the services would be high. Also, consistent research would be conducted to find out which courses are high in demand (Osterwalder. Pigneur & Clark 2010), and thus the club may alter its choice of courses or social events according to the need, which is the comparative advantage of the club. What type of customers will be buying your product/service? ( age/location/earning status/geographical area/ethnicity ETC). There would be services for all kinds of people, for example people from Asian ethnicity will be offered courses related to their culture, for instance dance practices dominant in their culture, or vegetarian cooking classes etc. Also, courses would range from those with a minimal fee which the students may also afford for instance a beginner painting class or photography sessions. Furthermore, those coming from higher social strata will be able to enjoy classes like golf practice sessions or courses on “how to arrange a theme party”. Thus, the club will have something for everyone. How big is the potential market for your product/service The potential market for the service is as big as London itself. However, people with a taste for new things and a flare for adventure and innovation are found everyone, who would make the potential market for the services. London is one city of the world where all kinds of diverse populace may be found, from almost all continents of the world, all religions and all cultures (Leapman 2012) Who will you be competing with? Tell us anything relevant you know about the competition. (Their business/their products & services/price/area, strengths/weaknesses ETC). The basic entrepreneurial value implies that a thorough analysis of the competitors must be conducted beforehand (Bygrave & Zacharakis 2008). In this case, the competitors are scattered and dealing with a particular genre or a particular segment. In other word, the business doesn’t have any potential competitors at the point, as the idea is considerably new and more of an experiment. What will you do better/worse than your competitors? (Based on the areas discussed above, and more if you can think of more). Since the competitors are catering to a set of target market, offering only the clichéd services, the 20`s club will stand out and soon turn out to be the social community filling out all gaps left behind other similar clubs. Do you have or have you thought about having a network of suppliers that will deliver your product or service? Since i have a diverse social network, I have already spotted out the potential class instructors in various fees who would also acquire a reputation via the club. Moreover, the coffee shop setup would require a bakery chef and a few supplies which would be purchased. What are the strengths and weaknesses of your business and your organisation? These are internal to your business. What are the opportunities and threats in your marketplace? These are external to your business – SWOT Analysis Consider how you will minimise your weaknesses and offset the impact of any threats Your weaknesses and threats can become your strengths and opportunities in time. STRENGTHS (inside your business) WEAKNESSES (inside your business) No dominant competitors Cost effectiveness, as much supplies aren’t required Out of the box approach The business model can easily be altered as it is flexible enough to add and delete courses High risks involved (new business model) Social network may collapse People may find this impractical Competitors may also copy the idea and pursue similar business model OPPORTUNITIES (External to your business - new markets, new opportunities, ability to outperform others etc) THREATS (External to your business - economy, other’s may copy you etc) May turn out to be the new trend setter Community space may be appealing to masses Anything and everything can be incorporated in the business model Others may copy the idea, as idea is the most important asset Bad word of mouth may be floated by the competitors Economic recession is being predicted in the UK (Muniesa 2011) Your Financials How will you advertise, market and generally communicate your business? What is your budget for this? New and innovative marketing techniques will be employed, for instance social media marketing, e-marketing and video blogging. Also, social events would be held consistently to interest the potential market. Moreover, other such social communities can be approached where a team can be sent to offer free tutorials to reflect what it would be like to be a part of the club. A project named “Life at 20`s Club” will be initiated where massed would be educated on how they should get ready to adopt a whole new lifestyle by virtue of club membership. For this, a huge budget isn’t required, it won`t exceed €5000. What is your Sales Forecast for your Service/Product – how many will you sell at what price and at what cost to you? Feed this into your cash flow forecast The sales forecast is around €4000 to €5000 initially which would increase every month and get as high as €10,000 per month. Once the business gets good word of mouth profits would naturally float and costs would be covered. Problems and Fixes Risks & Mitigation Problems occur when running your business. This could include: computer system failure, stock management issues, customers not paying on time, aggressive campaigns by competitors, not enough sales, lacking qualifications - it can be endless. Produce possible and realistic risks to your business below, and on the right tell us something positive and productive you could do to counter-act it. This will help you to prepare for the worst whilst reacting in the best possible way. (Press TAB if you want more rows) RISKS YOUR REACTION (MITIGATION) Customers may start dropping after the first year of payments. Constant reminders, exciting new discounts and even more innovative services would be offered. There may be risks of litigation, as setting up a new business in London may encounter such problems. Insurance would be bought and legal experts would be asked to conduct evaluation on a timely basis. A particular class may be useless for the majority of the members and may end up in loss. The instructors would be made to sign an agreement beforehand implying that the classes would only take place if at least 10 members sign up for the class. Reference : (2010). The Economist pocket world in figures. London, England, Profile. http://site.ebrary.com/id/10437737. BYGRAVE, W. D., & ZACHARAKIS, A. (2008). Entrepreneurship. Hoboken, NJ, John Wiley & Sons. HOBIJN, B. A. R. T., & ŞAHIN, A. Y. S. E. G. U. L. (2013). FIRMS AND FLEXIBILITY. Economic Inquiry, 51, 1, 922-940. Kershman, A. (2004). The London market guide. London: Metro. LEAPMAN, M. (2012). London. New York, N.Y., DK Publishing. Muniesa, F. (December 01, 2011). A flank movement in the understanding of valuation.The Sociological Review, 59, 24-38. MULLINS, J. W., & KOMISAR, R. (2009). Getting to plan B: breaking through to a better business model. Boston, Mass, Harvard Business Press. Osterwalder, A., Pigneur, Y., & Clark, T. (2010). Business model generation: A handbook for visionaries, game changers, and challengers. Hoboken, NJ: Wiley. Verstraete, T., & Jouison-Laffitte, E. (2011). A business model for entrepreneurship. Read More