Dec's Decking and Landscaping - Walsall UK - Essay Example

Business Plan Executive Summary 1 Objectives 2 1. Mission 2 2. Keys to Success 3 2. Company Summary 3 2 Company Ownership 4 2.2. Start-up Summary 4 3. Products and Services 7 4. Market Analysis Summary 8 4.1. Market Segmentation 8 4.2. Target Market Segment Strategy 10 4.2.1. Competition and Buying Patterns 11 5. Strategy and Implementation Summary 12 5.1. Competitive Edge 12 5.2. Marketing Strategy 13 5.3. Sales Strategy 13 5.3.1. Sales Forecast 14 6. Web Plan Summary 15 6.1. Website Marketing Strategy 15 7. Management Summary 15 7.1. Personnel Plan 16 7.2. Start-up Funding 16 7.3. Break-even Analysis 18 *Note: Break-even point is where line intersects at £0 18 7.4. Projected Profit and Loss 18 7.5. Projected Cash Flow 19 8. Legal Compliance 20 9. Total Quality Management 20 10. Human Resource Strategy 21 Decs Decking and Landscaping will combine various human resource management functions both to ensure that the business needs are being met by employee activities, as well as identify opportunities to ensure long-term commitment to the company. Our target goal is to implement a complete performance management system: A system used to identify, evaluate, measure, encourage, and reward employee performance (Mathis & Jackson, 2005). On a bi-annual basis, employees of the company will receive a performance appraisal, whereby their performance levels will be discussed in a formal meeting environment with the ownership. Items such as quantity of work output as well as attendance and quality of output will be measured. For each employee who illustrates superior total performance, a (not yet determined) monetary supplement will be added to their base salary in recognition for their efforts. 21 Establishing such a system ensures the integrity of the company, as well as satisfying total quality management objectives. The aim is to ensure employee satisfaction, while still building a community reputation for quality products and services. 21 8. Legal Compliance 9. Total Quality Management 10. Human Resource Strategy 1. Executive Summary Decs Decking and Landscaping - Walsall UK Products and Services: High-quality garden decking - Original and exclusive garden design and creation - High standard garden refurbishment Highlights This business plan provides a comprehensive view of the start-up position of the business, as well as its three-year financial projections. 1.1 Objectives Decs Decking and Landscaping has established three specific objectives in the pursuit of creating growth and short-term profitability; which the ownership deems as a viable set of business requirements. These include: Increase total profitability by 15% by the end of our fiscal year 2007 Establish an aggressive marketing campaign designed to increase consumer patronage by 20% at fiscal year end 2007. Expand Decs Decking and Landscaping to consist of a minimum of two additional remote business facilities by October 2008. The business and its ownership believes that these objectives are highly attainable, achieved through aggressive advertising and promotion, as well as establishing business relationships with various suppliers. Decs Decking and Landscaping intends to pursue its expanded objective of establishing remote facilities by conducting marketing research (customer demographic studies) to determine which geographical regions are most suited to the high-end services that the business provides. 1.1. Mission We believe that the key to success for contemporary businesses lies in maintaining a superior level of customer service. Our mission is to provide superior products and services while maintaining our uncompromising principles as the business continues to grow. Decs Decking and Landscaping will utilise three specific guiding principles to assist in measuring the effectiveness of our decision-making: Provide an excellent working environment in which all employees, suppliers, and partners are treated with the utmost dignity and mutual respect Striving to embrace diversity as a vital component in all of our business activities Recognize that maintaining an acceptable level of profitability as a key to ongoing business success   1.2. Keys to Success Because our business is primarily a service-oriented establishment, the keys to our success include: Consistently improving on the level of customer service that Decs Decking and Landscaping provides. Measuring this level of customer satisfaction will be accomplished through the utilisation of surveys and questionnaires aimed at gathering customer perceptions of their level of received service offered by the business. At six month intervals, gardens which have been created or serviced by the business will be revisited in order to ensure that our work is perceived of the utmost quality, while asking customers their perceptions of what specific levels of service might need improvement. Maintain regular communication with Decs Decking and Landscaping product suppliers to ensure that our prices are both competitive and within industry norms.   2. Company Summary The business name, Decs Decking and Landscaping, was chosen for the pursuit of establishing name recognition with potential (and existing) clients. Our service is our brand, and business professionals recognise that a companys first true objective for newly introduced services is establishing name recognition (Boone & Kurtz, 2006). Further, in order to clearly indicate the nature of our business, "Decking and Landscaping" was strategically added to the business name. The business will offer the following goods and services: High quality garden decking for all types of gardens - including standard and superior wood types and grades appropriate for a variety of decking projects. Our primary product consists of natural timber, as the business believes that this product creates a substantially decorative and attractive finish. Original and exclusive garden design and project creations - Decs Decking and Landscaping will work directly with our clients to create a unique look; custom-designed for each project and individual customer. High-standard garden refurbishment - The business recognises that not all of our clients will require a customer project. As part of our superior service, Decs will optimise and modernise any existing garden facility to the specifications of our clients.   2.1. Company Ownership The business is a sole proprietorship, 100% owned and managed by Declan Gillespie. As the primary investor in the company, establishing the business as a sole proprietorship allows the owner to maintain absolute control over all business-making decisions and financially-related business strategies. Establishing such a company also enhances ownerships ability to dissolve Decs Decking and Landscaping with little complication. 2.2. Start-up Summary £   In the pursuit of establishing an effective financial management plan, it becomes necessary to highlight the business methodology behind our start-up cost projections: Stock start-up costs - Initially, the business will not maintain high levels of decking or associated materials. As my initial customer base will determine the particular products needed to complete desired outdoor projects, Decs Decking and Landscaping will attain its initial inventories from various suppliers (building merchants or Jewsons and Mahoneys). With a proven track record of reliability in terms of guaranteeing stock levels and wood varieties, the business has chosen to initiate a purchasing relationship with these suppliers. It is necessary, however, in order to justify the start up funds required, to inventory a limited supply of decking, paint varieties, and a number of water features in the event of limited stock levels at our chosen supplier locations. Advertising - Advertising costs are not expected to be substantially high initially, however promotional materials are a crucial element of establishing our presence within a somewhat highly competitive industry. Upon the purchase of Decs two business vans, these vans will immediately be routed to a professional printing agency where the vehicles will have decals installed highlighting the business name, address, and other promotional messages. Vehicles - The vans are crucial elements to business success as they will be used to transport tools and workers from one client job to another. Both vehicles will be Vauxhall Pimistars; proven to be reliable on petrol usage and low cost purchases. Tools and Machinery - In order to perform our services, Decs Decking and Landscaping will require several lawnmowers and turf removers as part of our routine client functions. Lighting, Heating and Various Utilities - All businesses housed in an indoor location requires electricity to operate various machinery and create a comfortable environment for both the staff and potential client meetings. Though the business will, initially, be operated inside of the owners home, a start up allowance to cover any costs associated with the in-home operation of the business is necessary. Insurance - Decs Decking and Landscaping will require two specific types of insurance: Employers Liability Insurance and General Transportation Insurance to cover any potential damage to the Vauxhall vans. Insurance will be provided by AXA as the company has provided a quotation for affordable, reliable insurance policies. Telephone - Not included in the aforementioned utility expenses is the initial utilisation of telephone service. The telephone is another crucial key to success for the business as it is the primary point of contact for interested, potential clients. To ensure that the business expense is separated from that of routine home operations, a secondary telephone line will need to be installed. This start up cost listed will allow Decs to ensure payment on this second line for the first several months of operation; including labour costs for installation. Fuel - For immediate utilisation of the company vans, an adequate supply of fuel is required to activate the business transportation and various machinery. The start up funds required will ensure enough petrol kept on-hand to maintain all necessary equipment for one month.   Start-up     Requirements       Start-up Expenses   Inventory £1,000 Advertising 500 Vehicle 18,000 Tools 2,500 Machinery 2,500 Lighting, Heating, and Various Utilities 600 Telephone 200 Fuel - For Tools and Machinery 200 Insurance 600 Total Start-up Expenses 26,100     Start-up Assets   Cash Required 1,500 Start-up Inventory 1,000 Other Current Assets 500 Long-term Assets 500 Total Assets 3,500     Total Requirements £29,600 Start-up 3. Products and Services As part of the companys objective to expand and improve profitability, our long-term goal for additional products and services will include: Samples of Decking and Landscaping Materials - Various natural and treated woods, each geared toward attracting different consumer markets. Once the business establishes its remote locations, customers will be able to visit in a showroom environment to select their desired landscaping materials. Paint and Paint Samples - As colour palettes are widely diverse, it will be necessary for the business to establish a relationship with our vendors where they will supply professional colour samples for use in our remote locations. For start-up purposes, Decs Decking and Landscaping will supply a limited variety of paint and samples. Traditional and Contemporary Landscaping Specialty Items - Our existing customer base, as well as results from our marketing research campaigns, will help the business to ensure that Decs is able to solidify supply of both traditional and contemporary landscaping designs; each suited to different target markets. Future products might include trellises with different colours and finishes, garden and decorative paver stones as well as other similar items which can be inventoried in our remote locations. 4. Market Analysis Summary Decs Decking and Landscaping will focus on local customer markets, with an emphasis on targeting homeowners in the Walsall area and the surrounding borough. The companys long-term market proposal is to extend our marketing reach to local businesses which maintain a legitimate need for garden and landscaping projects. To assist in our short- and long-term planning, the following regional demographics are included for our local markets: A 2001 census reveals that Walsall maintains a population of 170,994 citizens, with the surrounding borough population at 252,800. This demographic data offers the business over 423,000 potential customers (Wikipedia.org, 2007). The New Art Gallery Walsall, soon to be developed into a mega-shopping centre, is expected to bring more commercial development; increasing the economic position of the city. As such, a portion of Decs Decking and Landscaping market analysis allows us some flexibility in establishing contractual agreements to become recognised as the primary gardening/landscaping organisation for project and outdoor development. This will be accomplished through an aggressive campaign with the local council to utilise Decs services for new development projects.   4.1. Market Segmentation It will become crucial for Decs Decking and Landscaping to explore the various aspects of its potential, local consumer markets; including consumer preferences, consumer attitudes, and income classification. The business realises that customer spending patterns change in direct proportion to the level of income available within each household. Ernst Engel, a renowned German statistician, published Engels law which states that as household income increases, the percentage spent on other items (such as recreation or home improvement) increases (Boone & Kurtz, 2006). With the expected increase in business opportunities in Walsall, borne of commercial development, Decs Decking and Landscaping expects a slow, however steady increase in consumer household income. For our business, this commercial development is one key to ensuring long-term growth with our business plan projections. The following includes relevant demographic information for the local market area in which we will serve: Ethnicity: 86.4% White - 10.4% South Asian - 1.4% Afro/Caribbean (Allexperts.com) - Though ethnicity will not play a significant factor in the success of our business, it is important to illustrate the wide level of diverse cultures in the Walsall and surrounding areas. As such, it is important that Decs marketing literature is aimed toward the cultural and value systems of these different demographic groups. The ownership of Decs Decking and Landscaping will be more competently equipped to create a demographic profile, including spending habits and consumer preferences in the first six months of business operation; once the company has established a strong client base which will offer further marketing research statistics and trends through survey and questionnaire results. Market Analysis     2007 2008 2009 2010 2011   Potential Customers Growth           CAGR Local Homeowners 10% 50,000 55,000 60,500 66,550 73,205 10.00% Local Established Businesses 10% 4,000 4,400 4,840 5,324 5,856 10.00% Council-Approved Development Projects 20% 100 120 144 173 208 20.09% Total 10.02% 54,100 59,520 65,484 72,047 79,269 10.02% Market Analysis (Pie) 4.2. Target Market Segment Strategy To extend the marketing reach of Decs Decking and Landscaping, the company will be establishing a presence on the World Wide Web through an interactive website. The consumer community, a group of regional individuals with a common purpose or interest (Siegel, 2006), will be integral in establishing a secondary feedback method known as the Internet blog. Our website will contain links to various projects that Decs has previously accomplished, as well as an interactive blog link where customers can ask direct questions to the ownership or reply on existing customer projects. The business believes that with the advent of Internet communications, the business can further extend its marketing presence to a vast variety of markets; both high- and low-income as well as business owners. With the establishment of our web presence, the company is not limiting its advertising, promotional, and market research efforts to merely print and billboard advertisements. Decs Decking and Landscaping believes that the creation of our interactive website will be a low cost method to reach various target markets. Further, after several requests for domain name information, DecsDecking.uk is not currently registered; allowing the company to create an Internet name that is just as recognisable as that of its actual company name.   4.2.1. Competition and Buying Patterns Having previously established the business primary points of contact for distribution of retail products geared toward landscaping and gardening, Decs believes that we can "take the guesswork out of decision making" as one of our catch slogans. This slogan will be designed on appropriate print advertising as we position our service as superior to that of our competition. Marketing research indicates that European customers value convenience as a primary factor behind service and company selection. As such, Decs will focus on its product selection as convenience products, or goods and services that consumers desire to purchase frequently and with minimal effort (Boyes & Melvin, 2006). As the direct point of contact for our customers, in terms of collecting desired products through our retail partners, Decs Decking and Landscaping adds both quality and convenience both in our marketing efforts and in our function of selecting the appropriate products for customer demands in a "hassle free" environment. The business has recognised nine other landscaping businesses in the Walsall area, therefore there is a legitimate competitive presence in our local area. Decs will rely on its aggressive marketing campaigns, positioning slogans and interactive Internet presence to draw more clients to the business. As part of our long-term planning, Decs will be carefully monitoring the business activities of our nine competitive entities (in terms of their advertised promotions and incentive advertising) to ensure that Decs remains continuously competitive and more attractive to our target markets. This will be accomplished through routine inspection of our competitions websites, billboards, or any other advertising literature which might serve to undercut the interests of Decs Decking and Landscaping. Price comparison will be a major factor in ensuring that we are able to maintain a high profit margin while still maintaining a competitive edge in terms of project "sales and specials". Contemporary professionals also recognise the importance of word of mouth advertising, especially in geographical regions where communities of individuals interact. As such, it is the responsibility to perform the project or service competently the first time to avoid any negative "buzz" in the Walsall area. To promote a positive word of mouth, periodic mailings for our existing customers designed to follow up on previous projects or offer promotional discounts for further projects will satisfy Decs expectations for healthy community word-of-mouth advertising. Our objective, in terms of competition, is to make Decs the primary name on consumers lips when thinking about landscaping and gardening needs.   5. Strategy and Implementation Summary ICT will support Decs Decking and Landscaping, primarily due to the fact that Declan Gillespie will be performing all of the electronic invoicing/payroll functions utilising standard software and application packages. Microsoft Office is a vital aspect of the ICT in the business as it contains spreadsheet software, desktop publishing (for advertising/promotional purposes), PowerPoint, and Microsoft Word (for document creation). Maintaining accurate business records will aid the business in mapping out its current organisational structure, create customer invoices and service-related letters, as well identifying strengths and weaknesses in current revenue and expenditures. As the business grows and becomes more complex, in terms of extended receipt of business as well as establishing our objective of remote facilities, the business has considered incorporating Sage Payroll Packages via a downloadable, computerised payroll system. The cost for this package is £775.50 inc. VAT. The purchase of this software would greatly streamline the payroll systems of Decs Decking and Landscaping, as well as remove the more labour-intensive aspects of managing the business using Microsoft Office for payroll monitoring. 5.1. Competitive Edge In a rather worst case scenario, taking into consideration the extent of our potential competition in the surrounding areas, the business strives for a 10% market share during the first business year. Our advanced, aggressive marketing tactics (including billboard, print, direct promotional mailings) are designed to offer a long-term projective forecast of seizing at least 30% of the total market share in the Walsall and surrounding communities. In order to seize this 30%, it is imperative that the company maintain a competitive edge, including enhanced customer service, integrity and job performance, to maximise the effectiveness of our overall marketing campaign. Based on the stability of Decs Decking and Landscaping financial position, the business may consider (as a long-term goal) increasing our competitive edge through the addition of an Internet-based ordering system with which customers can review our product selection on our interactive website. The company will work aggressively to establish a mutually-rewarding partnership with our various suppliers to make the ease and convenience of "one click" ordering a method of sustaining value for the business long-term. Another aspect of Decs which will make it stand out from the competition is in the personalised levels of service offered. Because Declan Gillespie will be the primary point of contact for virtually all business matters during the first start up year, this will offer explicit control over the methods by which communication is handled with each client. Marketing which emphasises personalised service is another aspect of our long-term strategic plan to gain further market share in our local area. 5.2. Marketing Strategy Our marketing strategies are relatively simple in nature: Satisfied customers are at the heart of the success of Decs Decking and Landscaping. The first step in the initial start up promotional campaign is to distribute pamphlets and direct mail flyers which emphasise the nature of the business as well as the services that the company provides. A 15%-off promotional coupon will be attached to the initial promotional literature, which will help the business track the effectiveness of this particular type of marketing campaign. When customers call and refer to the 15% promotion, based on the rate by which we receive return on the promotional materials, the business will adjust its pamphlet and direct mail marketing tactics accordingly. Moreover, once we have completed a sizeable project for an existing client, we will provide them with a 25% off "Customer Loyalty" coupon if the client is willing to allow Decs Decking and Landscaping to utilise a small portion of their road-front property to display signage indicating that Decs is the responsible party for creating the clients customised landscaping or gardening project. The business believes that this type of advertising is effective, especially in an environment where a substantial portion of potential customers will be inundated by our roadside advertisements.       5.3. Sales Strategy Initially, Declan Gillespie will be the primary salesperson for the start-up portion of the business. The ownership of Decs Decking and Landscaping will further handle the electronic portion of order processing, invoicing, and payment receipt; as well as manoeuvre pricing, delivery, and conditions of contract for the completion of our service projects. As a long-term strategy, depending on the growth experienced by the business, it may become necessary to staff several salespeople (primarily with the goal of remote location setup) in order to satisfy our customer demands. Compensation levels for the additional sales staff will require a comprehensive analysis of our financial position, as well as offering a competitive salary that is commensurate with experience levels.   5.3.1. Sales Forecast The majority of our profitability, especially with the nature of this particular industry, will be in the form of labour compensation. The sales forecast predicts a realistic, yet steady growth from year to year in terms of overall product and service sales. Decs is projected to experience a 20% cost of goods sold, relating to the expenditures for the raw materials necessary to conduct the primary services; including garden refurbishment and garden design. As such, the profit margin will consist of 80% of all revenues earned through the physical task of performing labour intensive garden and refurbishment services. In a business which is conducted primarily in an outdoor environment, weather and climate changes are a significant factor driving business either upward or downward. The sales forecast projects a dramatic upsurge in sales from the months of May through September, as the weather will be more hospitable for this type of service performance. In the colder months, Decs Decking and Landscaping will likely witness diminished sales and profitability, however this will be offset by a lowered cost of materials as well. To compensate for this weather-related loss of business, Decs will be seriously considering performing indoor work, such as house painting, should we determine a customer demand for this activity; all in the pursuit of raising profitability during inclement weather months.     Sales Forecast   FY 2008 FY 2009 FY 2010 Sales       Garden Decking £48,300 £55,000 £60,000 Garden Design Materials 21,700 23,000 25,000 Paint and Miscellaneous Project Supplies 5,100 6,000 7,500 Garden Refurbishment 19,900 25,000 35,000 Total Sales 95,000 109,000 127,500         Direct Cost of Sales FY 2008 FY 2009 FY 2010 Cost of Materials 17,800 19,000 22,000   0 0 0 Subtotal Direct Cost of Sales £17,800 £19,000 £22,000 6. Web Plan Summary Our future website, DecsDecking.uk, will be designed not only as an interactive website, but also to list actual existing customer commentaries describing their levels of satisfaction for work previously completed by our business. Of our nine different competitors, Decs will be the only legitimate business of this nature to maintain and advertise an interactive website. The website will be printed on ALL of our promotional and advertising materials, inviting customers to visit the website for a broader description of our product availability as well as the services which we will provide. Decs Decking and Landscaping will utilise the services of WebBuilder, a company established to offer low cost web-building services customised for the needs of their clients. The website will be equipped with a "hit counter", which will help us to track the number of visitors which we receive, while eXTReMe Tracker (another online tracking service) will help us to determine which search engine keywords were used to draw potential customers to our interactive website. 6.1. Website Marketing Strategy The business has not, yet, actively pursued gathering costs associated with banner advertisements for our business, largely due to the local area in which we provide goods and services. As a long-term goal, Decs will actively research local websites, related to commercial activities in the Walsall area, where we can build partnerships with our community business leaders and establish low-cost advertising on these sites. Decs will also pursue attending various public relations events in the Walsall area, such as new commercial development or ribbon-cutting ceremonies, where we can display our company logo and communicate with various community leaders. 7. Management Summary During the initial start up year, the primary management staff will consist of Declan Gillespie. (Refer to appendices for an organisational chart for years one and two). In the first year, the company will require staffing two full-time labourers as well as two part-time labourers in order to fulfil our expected growth in customer patronage. Declan Gillespie will perform all of the functions associated with human resources, payroll, invoicing, and any other administrative task associated with the business. All labourers will report directly to Mr. Gillespie and will be responsible for performing, approximately, 75% of all labour-intensive customer projects.   7.1. Personnel Plan At an acceptable rate, during the start up year, both part-time and full-time labourers will be allocated a projected salary of £5. Declan Gillespie will experience a somewhat modest salary, in the pursuit of raising available business-related funds. These figures and salaries are likely to grow each year as the company moves toward its projected goal of establishing remote facilities for business operations.   Personnel Plan   FY 2008 FY 2009 FY 2010 Declan Gillespie £36,000 £45,000 £55,000 Full Time Labourers 20,000 28,000 40,000 Part Time Labourers 10,000 15,000 20,000         Total Payroll £66,000 £88,000 £115,000 7.2. Start-up Funding With a start up requirement nearing £30,000, it is prudent to utilize Lloyds TSB Bank plc to provide the appropriate loan and financing for the start up investment of Decs Decking and Landscaping. Declan Gillespie has been a loyal member of the bank for most of the owners life, and Lloyds has provided the most appropriate, cost-efficient account for business banking. With online funds transfer capabilities, Lloyds TSB Bank plc provides immediate online access to account information, crucial to the needs of Decs. Start-up Funding Start-up Expenses to Fund £26,100 Start-up Assets to Fund 3,500 Total Funding Required 29,600     Assets   Non-cash Assets from Start-up 2,000 Cash Requirements from Start-up 1,500 Additional Cash Raised 400 Cash Balance on Starting Date 1,900 Total Assets 3,900         Liabilities and Capital       Liabilities   Current Borrowing £30,000 Long-term Liabilities 0 Accounts Payable (Outstanding Bills) 0 Other Current Liabilities 0 Total Liabilities £30,000     Capital       Planned Investment   Owner 0 Investor 0 Additional Investment Requirement 0 Total Planned Investment 0     Loss at Start-up (Start-up Expenses) (26,100) Total Capital (26,100)         Total Capital and Liabilities 3,900     Total Funding £30,000 7.3. Break-even Analysis Having analysed fixed costs, such as start-up year labour and payroll costs, costs associated with business operations and variable costs listed at approximately 19%, the break-even analysis is a fair representation of the companys monthly break-even point. Break-even Analysis     Monthly Revenue Break-even £7,348     Assumptions:   Average Percent Variable Cost 19% Estimated Monthly Fixed Cost £5,971 Break-even Analysis *Note: Break-even point is where line intersects at £0 7.4. Projected Profit and Loss Total payroll, including salaried payments to Declan Gillespie, make up a considerable amount of the business yearly expenses; due to the nature of the service industry and the necessity of labour-intensive activities to complete client work projects. Profit and Loss   FY 2008 FY 2009 FY 2010 Sales £95,000 £149,000 £167,500 Direct Costs of Goods 17,800 19,000 22,000 Other Costs of Goods 0 0 0   ------------ ------------ ------------ Cost of Goods Sold 17,800 19,000 22,000         Gross Margin 77,200 90,000 145,000 Gross Margin % 81.26% 82.57% 82.75%                 Expenses       Payroll £66,000 £88,000 £115,000 Marketing/Promotion 1,850 0 0 Depreciation 2,000 0 0 Fuel Costs 1,800 2,000 2,500   0 0 0   0 0 0   0 0 0   ------------ ------------ ------------ Total Operating Expenses 71,650 40,000 117,500         Profit Before Interest and Taxes 5,550 0 27,500 Interest Expense 3,000 3,000 3,000 Taxes Incurred 765 0 0         Net Profit 1,785 37,000 24,500 Net Profit/Sales 1.88% 24.83% 14.62% 7.5. Projected Cash Flow July represents the first instance where Decs Decking and Landscaping will experience a positive cash flow. This is largely due to the initial start-up funding (loan/borrowing) at 30,000. As the business generates extensive client-related business, the cash flow continues to rise as the company expands into 2nd and 3rd year operations. 8. Legal Compliance In order to abide by legal requirements, Decs Decking and Landscaping will be paying Class 4 national insurance and VAT. To prevent being overcharged by Inland Revenue, ownership will be forced to fill in a CWF1 form for declaration purposes. An expenditure allowance has been incorporated into the business financial figures to ensure that all of the companys liability requirements are met. There is the distinct possibility that the business will have to file the appropriate governmental paperwork to apply for planning permissions, depending on the circumstances behind customer projects. These items will be addressed in a case-by-case scenario as deemed appropriate by the local governing council or development professionals. In similar respect, safety and health regulations compliance will be key to ensuring that the business adheres to various regulations demanded of businesses such as Decs Decking and Landscaping. 9. Total Quality Management To ensure the integrity of the business, systems of quality control need to be put into place. A total quality management system (TQM) develops and extends the quality assurance approach by instilling a quality culture within the entire work force. Under TQM, each are of the business is encouraged to regard other employees within the business as stakeholders and to ensure the reputation of Decs by installing only quality-verified products and services. Total quality businesses encourage employees to suggest methods to improve quality through the use of quality circles. These circles will be performed on a weekly and routine basis to ensure that all aspects of the business meet with expectations for compliance. The companys quality assurance approach will be to detect sub-standard products and prevent the installation of defective goods. The TQM approach to guiding our internal business functions relies on a dedicated staff of professionals and proper training (performed by ownership). 10. Human Resource Strategy Decs Decking and Landscaping will combine various human resource management functions both to ensure that the business needs are being met by employee activities, as well as identify opportunities to ensure long-term commitment to the company. Our target goal is to implement a complete performance management system: A system used to identify, evaluate, measure, encourage, and reward employee performance (Mathis & Jackson, 2005). On a bi-annual basis, employees of the company will receive a performance appraisal, whereby their performance levels will be discussed in a formal meeting environment with the ownership. Items such as quantity of work output as well as attendance and quality of output will be measured. For each employee who illustrates superior total performance, a (not yet determined) monetary supplement will be added to their base salary in recognition for their efforts. Establishing such a system ensures the integrity of the company, as well as satisfying total quality management objectives. The aim is to ensure employee satisfaction, while still building a community reputation for quality products and services. Balance Sheet   FY 2008 FY 2009 FY 2010 Assets               Current Assets       Cash 7,637 4,367 10,569 Accounts Receivable 1,233 1,415 1,655 Inventory 400 427 494 Other Current Assets 500 500 500 Total Current Assets 9,771 6,709 (7,919)         Long-term Assets       Long-term Assets 500 500 500 Accumulated Depreciation 2,000 2,000 2,000 Total Long-term Assets (1,500) (1,500) (1,500) Total Assets 8,271 5,209 (9,419)         Liabilities and Capital FY 2008 FY 2009 FY 2010         Current Liabilities       Accounts Payable 2,586 2,524 2,896 Current Borrowing 30,000 30,000 30,000 Other Current Liabilities 0 0 0 Subtotal Current Liabilities 32,586 32,524 32,896         Long-term Liabilities 0 0 0 Total Liabilities 32,586 32,524 32,896         Paid-in Capital 0 0 0         Net Worth £6,500 £12,500 £22,543 Sales Forecast     Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Sales                           Garden Decking 0% 1,200 3,500 7,000 7,000 10,000 8,500 5,000 2,000 2,000 800 500 800 Garden Design Materials 0% 1,000 2,000 3,000 3,500 3,500 3,500 2,000 1,000 800 800 300 300 Paint and Miscellaneous Project Supplies 0% 200 300 400 600 800 800 600 600 400 100 100 200 Garden Refurbishment 0% 500 1,200 1,500 3,000 3,800 4,000 2,500 2,000 1,000 100 100 200 Total Sales   2,900 7,000 11,900 14,100 18,100 16,800 10,100 5,600 4,200 1,800 1,000 1,500                             Direct Cost of Sales   Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Cost of Materials   500 1,500 2,000 3,000 3,000 3,000 1,800 1,000 1,200 200 300 300     0 0 0 0 0 0 0 0 0 0 0 0 Subtotal Direct Cost of Sales   500 1,500 2,000 3,000 3,000 3,000 1,800 1,000 1,200 200 300 300 Personnel Plan£     Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Declan Gillespie 0% 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 Full Time Labourers 0% 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 Part Time Labourers 0% 833 833 833 833 833 833 833 833 833 833 833 833 Total People   0 0 0 0 0 0 0 0 0 0 0 0                             Total Payroll   5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 Cash Flow     Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Cash Received                                                       Cash from Operations                           Cash Sales   1,450 3,500 5,950 7,050 9,050 8,400 5,050 2,800 2,100 900 500 750 Cash from Receivables   0 48 1,518 3,582 5,987 7,117 9,028 8,288 4,975 2,777 2,060 887 Subtotal Cash from Operations   1,450 3,548 7,468 10,632 15,037 15,517 14,078 11,088 7,075 3,677 2,560 1,637                             Additional Cash Received                           Sales Tax, VAT, HST/GST Received 0.00% 0 0 0 0 0 0 0 0 0 0 0 0 New Current Borrowing   0 0 0 0 0 0 0 0 0 0 0 0 New Other Liabilities (interest-free)   0 0 0 0 0 0 0 0 0 0 0 0 New Long-term Liabilities   0 0 0 0 0 0 0 0 0 0 0 0 Sales of Other Current Assets   0 0 0 0 0 0 0 0 0 0 0 0 Sales of Long-term Assets   0 0 0 0 0 0 0 0 0 0 0 0 New Investment Received   0 0 0 0 0 0 0 0 0 0 0 0 Subtotal Cash Received   1,450 3,548 7,468 10,632 15,037 15,517 14,078 11,088 7,075 3,677 2,560 1,637                             Expenditures   Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb                             Expenditures from Operations                           Cash spending   5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 Bill Payments   (665) (550) 2,846 4,252 6,057 6,237 5,737 2,106 123 (111) (1,981) (2,022) Subtotal Spent on Operations   4,835 4,951 8,346 9,752 11,557 11,737 11,237 7,606 5,623 5,389 3,519 3,478                             Additional Cash Spent                           Sales Tax, VAT, HST/GST Paid Out   0 0 0 0 0 0 0 0 0 0 0 0 Principal Repayment of Current Borrowing   0 0 0 0 0 0 0 0 0 0 0 0 Other Liabilities Principal Repayment   0 0 0 0 0 0 0 0 0 0 0 0 Long-term Liabilities Principal Repayment   0 0 0 0 0 0 0 0 0 0 0 0 Purchase Other Current Assets   0 0 0 0 0 0 0 0 0 0 0 0 Purchase Long-term Assets   0 0 0 0 0 0 0 0 0 0 0 0 Dividends   0 0 0 0 0 0 0 0 0 0 0 0 Subtotal Cash Spent   4,835 4,951 8,346 9,752 11,557 11,737 11,237 7,606 5,623 5,389 3,519 3,478                             Net Cash Flow   (3,385) (1,402) (878) 880 3,480 3,780 2,841 3,483 1,452 (1,712) (959) (1,841) Cash Balance   (1,485) (2,887) (3,765) (2,886) 594 4,374 7,215 10,698 12,150 10,438 9,479 7,637 References: Boone, Louis E. & Kurtz, David L. (2006). Contemporary Marketing. 12th ed. Thomson South-Western. United Kingdom. Siegel, Carolyn. (2006). Internet Marketing – Foundations and Applications. 2nd ed. Houghton Mifflin Company. Allexperts.com. (2006) Demographics: Walsall. http://en.allexperts.com/e/m/me/metropolitan_borough_of_walsall.htm Wikipedia.org. (2007). Walsall. Demographics information and summarisation. en.wikipedia.org/walsall. Berry, Tim & Wilson, Doug. (2004). Marketing Planning – On Target. How to develop a successful marketing plan. Gomez-Mejia, Luis R., Balkin, David B. & Cardy, Robert L. (2003). Management: People, Performance, Change. 2nd ed. McGraw Hill Irwin. London. Mathis, Robert L. & Jackson, John H. (2005). Human Resource Management. 10th ed. Thomson South-Western. United Kingdom. Organisational Chart – Structure of Business for Start Up Year 2007 Read More