A Business Plan for Cyprus Financials Limited - Case Study Example

A Business Plan for Cyprus Financials Limited I. Executive Summary Cyprus Financial Limited (CFL) is a business that offers corporate management services, tax and financial consulting to local, existing or future enterprises and also to foreigners who wish to start a business in Cyprus. CFL shall start its operations at Limassol, the second biggest city of Cyprus and the biggest port in the Mediterranean transit trade. Cyprus has an open, free-market, services-based economy. This country’s accession as a full member to the European Union as of May 1, 2004, has been an important milestone in its recent economic development. It serves as a “bridge way” to three continents Europe, Asia and Africa. It boasts of an educated English-speaking population, moderate living costs, good airlines and telecommunication connections (US Department of State. 2007). II. Objective Cyprus Financial Limited’s objectives are to make an equal and fair profit in the business-to-business and business-to-consumer financial services industry. This goal is to be reached by attaining the numbers presented in the sales forecast and financial plan topics. III. Keys to Success There are two keys to success that Cyprus Financial Limited is focused on. These are broadly categorized as Internal and External Factors and are explained as follows: A. Internal Factors 1. Selling and Marketing Power – The services company’s products are made attractive in order to maintain a certain percentage of clients. CFL demonstrates a successful approach in converting its reputation into an excellent brand to ensure the conversion of its clients’ knowledge into their intellectual property, thus creating value for its clients. 2. Create multiple opportunities from a single line of expertise – Cyprus Financial Limited is able to leverage from a single pool of expertise into multiple revenue generation opportunities: business development, market development, personal financial planning, corporate management services, and tax and financial consulting. 3. Key management team – The right management team is integral, and must have a strong foundation in marketing, management, finance, and services development. B. External Factors Cyprus is now living in an interesting era: the process of change from the "old economy" to the "global new economy" brings a tremendous development growth of e-commerce, mobility of capital, and liberalization to the region. Since the new global economy brings new economics, new market structures, new industry structures, and new company structures, the profile of customers has also changed. Customers have evolved from "solution demander" to "value demander," and from "clients” to “business partners”. IV. Company Ownership CFL is a Private Limited Company and shall be headed by a Director, with two full time Account Managers. These account managers will handle all end-to-end processes, from sourcing clients to providing financial consultancy services, and shall report directly to the Director. CFI plans to expand and increase its number of staff within the next two years. The author, being the director, has a solid background in Accounting and Finance, having acquired adequate academic skills on business administration and management. Furthermore, the author is a certified accountant and has obtained professional experience on corporate management, tax and financial demands of a corporation. V. The Resources Required The author’s family operates a law firm in the same area. This makes the author confident that he has an identified pool of clients whom he could tap for referrals. The organization would initially be small – with two account managers alternating as administrative personnel who would handle client servicing and office operations. They would be trained to accomplish multi tasking, and would take care of end-to-end processes of the service they would render. After two years of operation, the firm is targeted to have already expanded with a total of four Account Managers and one group assistant who would handle administrative functions and who would be stationed at the office. The office would relatively be small, to be located at the central business district of Limassol. Start up Capital Expenditures shall be allocated for three sets of Personal Computers, printers, connectivity and office furniture. In the meantime, account managers shall not possess their own mode of transportation while doing client servicing, but would eventually be entitled to a service vehicle by the second year of operations. The targeted revenues shall cover all expenses. Account managers would have their own business targets to achieve. VI. Financial Plans Being a Private Limited Company, the owner shall shoulder all start-up expenses as follows: VII. Product and Market Review Cyprus Financials Limited shall be set up at the heart of Cyprus, where small and mid-scale enterprises usually thrive, thanks to the current economic situation in the country. Being a tourist destination, Cyprus has its services sector as its banner segment, with 77.6% contribution to the country’s Gross Domestic Products (GDP). It is open to off shore industries, and trade is highly important to the local economy, with most of its products being imported. As of the European Union members, Cyprus has been liberal to foreign investors. As a EU member, this country has already lifted restrictions on foreign equity participation and ownership, giving foreign investors the same rights and benefits as local investors. CFL management sees a potential in this economic scenario, thereby deciding to launch an agency that offers assistance to these companies through particular services such as corporate management and tax and financial consultancy. CFL will position itself as a full-service financial agency that initially caters to small and mid-scale businesses owned and operated by both foreign nationals and local residents. It prides itself in having full-time account managers that handles all requirements of the clients. CFL will ensure that clients will be given utmost service by doing on-site management as well. CFL practices confidentiality, reliability and integrity, ensuring the highest level of professionalism in all its transactions. It will primarily offer financial services, which includes establishment of bank accounts, market entry solutions, and credit reports, accounting and auditing services, among others. It will also offer corporate management services, which includes Incorporation and Management of Companies VIII. Marketing Strategies/ Advertising Plan Cyprus Financials Limited is a start up company and will need intensive marketing strategies to be able to penetrate the target market. To begin with, CFL shall introduce its services by advertising in magazines that are targeting entrepreneurs in particular. CFL will place full-page advertisements and advertorials within the first three months of operation. After three months, CFL will begin to publish testimonials as well. CFL will further penetrate the target market by sponsoring forums and conferences regarding business management and entrepreneurship. CFL will conduct talks on how to start a business in Cyprus and offer free consultation to the first 10 people who are interested in their services. CFL will produce its own website to be able to reach clients overseas and from other cities. The website will contain a list and detailed description of all services, and the contact details of the company. The website will offer instant tips and useful information to those who are thinking of starting up their businesses, then eventually gather a pool of contacts from respondents. These contacts shall be recipients of product updates and will be considered sales leads as well. Since the author has a network of potential clients in Limassol, CFL Account Managers shall be directed to conduct sales calls to the leads and gather information on other prospective clients. Word-of-mouth is important in spreading CFL’s products and services, so it’s vital to be able to communicate CFL’s services at a personal level to gain popularity among the target market. IX. Quality Policies CFL has four words in ensuring that they reach the desired quality of operations: confidentiality, reliability, integrity and professionalism. The principals of the business will provide the key fulfillment and delivery of established goals. The core value is professional expertise provided by a combination of experience, smart and hard work, discipline, improvements and education. The company’s Quality Policy is in the frame of ISO 9000 2000. Operations would gear towards the achievement of maximum customer satisfaction by establishing solid understanding of their requirements and needs. The agency will aim to identify measurable results with the client and continuously refer to these guidelines to determine if they are in the right course of action. CFL gives particular importance to leadership, and that the owner must exhibit this by providing an environment that is encouraging and productive to both account manager and clients. The company leader must also create an environment in which account managers and clients feel free to interact and share their ideas to create improvement in the organization. Systems must be established to ensure that all transactions are done properly. For example, agency billing policies must be laid out in black and white for the clients to see and approve prior to the implementation of a project. A cost estimate must initially be prepared and presented to the client, with the terms and conditions clear and precise. CFL must also ensure that a billing statement must be issued, requesting for a down payment of 50% of the agreed cost estimate, with the balance to be paid off upon completion of the project. CFL shall be patronizing seminars and assemblies that aim to update the employees on the current trends in the financial industry and further hone them in their fields of expertise. Attendance to these will ensure that the personnel continuously develop and that the organization has a large room for improvement. Researches and studies shall be given additional value as accurate data is needed for the business to be truly successful. The services to be rendered must be studied carefully, basing on facts and figures derived from the researches. CFL will further work with a steady network of suppliers for their third-party requirements and will meticulously ensure that their standards are not being compromised whenever particular services or products are outsourced. Quantitatively, CFL strives to achieve a minimum of £36,000 worth of sales per month to be able to sustain the operational (OPEX) and capital expenditures (CAPEX) per month. There will be sales monitoring per month to ensure that the financial objectives are being met. There will likewise be a monthly evaluation of the services to be able to implement the quality policies stated above. Sales targets shall be recast every month, depending on the increase or decrease in the need for OPEX or CAPEX. X. Conclusion and Recommendation As a start up company, CFL faces numerous challenges to be able to achieve its corporate and marketing objectives. It is therefore important that the plans are properly laid out and the counter measures properly identified to help the management in implementing properly the operations of the business. At the end of the first year, CFL aims to be able to reach all objectives and successfully carry out their plans in the following years. CFL, after its first year, shall be competing with the region’s top financial companies, with a solid pool of clients locally and internationally. Reference List Background Note: Cyprus. Retrieved November 27, 2007 from http://www.state.gov/r/pa/ei/bgn/5376.htm#econ Read More