Business Plan - Final Mal
Business Plan - Final Mal
Business Plan - Final Mal
AND
TOURS
3. DEFINITION OF THE BUSINESS..................................................10 3.1 3.2 3.3 The Business Concept....................10 The Current Offering.10 Projected Growth...11
4. PURPOSE OF THE BUSINESS PLAN..12-14 5. BUSINESS FEASIBILITY..................15-16 5.1 5.2 5.3 Analysis of the Demand.17 Analysis of Risk17-18 Environmental Impact19
6.0 JUSTIFICATION OF THE BUSINESS 20 6.1 6.2 6.3 Economic Benefits 20 Social Benefits...20 Personal Benefits...21 2
8.0 HUMAN RESOURCES26 8.1 8.2 8.3 8.4 Sourcing and Staffing Considerations...26 Training & Development26-29 Remuneration and Salary Packages29-30 Performance Appraisals30
9. OPERATIONAL CONSIDERATIONS31 9.1 9.2 9.3 9.4 9.5 Location...31 Technical Requirements31 Utilities...31 Business General Operations.32 Quality Control..32
10. MARKETING PLAN .....33 10.1 10.2 10.3 10.3 Product...33 Target Market.33 Place...34 Price34-38
Ministry Of Transport & Works This Ministry of Transport & Works was established with the mandate to provide a safe and efficient transportation system, the building and maintenance of high quality infrastructure works, including roads. National Works Agency Formerly the Public Works Department, the National Works Agency is responsible for the management of the islands public works infrastructure. Island Traffic Authority The island Traffic Authority administers the provisions of the Road Traffic Act, which speaks to the testing of vehicles to ensure fitness and worthiness and general compliance with safety standards. They ensure that a high standard of safety exists on Jamaicas roadways. Transport Authority This Agency functions as a regulatory body, dealing with the licensing of all public and commercial vehicles and the regulating and monitoring of public transportation throughout the island. 9
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Writing a business plan will ensure that you pay attention to both the broad operational and financial objectives of your new business and the details, such as budgeting and market planning. Taking the time to work through the process of writing a business plan will make for a smoother startup period and fewer unforeseen problems as your business becomes established. To make business planning manageable and effective.
A business plan is essential if you're thinking of starting a business, but it's also an important tool for establishing SMKS. Viable businesses are dynamic; they change and grow. The company's original business plan needs to be revised as new goals are set. Reviewing the business plan can also help you see what goals have been accomplished, what changes need to be made, or what new directions your company's growth should take. To attract investors.
In order for SMKS to attract investors, a well strategized business plan is needed. A presentation may appeal their interest, however they'll need a well-written document they can take away and study before they'll be prepared to make any investment commitment. Be prepared for your business plan to be scrutinized; both venture capitalists and angel investors will want to conduct 13
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80%
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S1 No
50% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 10% 5%
7%
23%
70%
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Financial Risk Every business has the potential to fail, but this risk is normally higher within the first three years of existence. Our weekly rate of $1200 - $1600 one way and $2200 - $3000 two way was decided upon by carefully analyzing the result of our feasibility study. The biggest danger of SMKS comes from not providing a quality service that satisfies both the children and parents who are our main clients. When our customers are satisfied they will contribute to our business for years, through their recommendations and referrals. SMKS will make sure that the environment is comfortable for the child/children are safe. We will
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Health of Personnel All employees will have a current physical on file, signed by a physician. All physicals will be updated annually as mandated. Sick employees will be encouraged to stay at home and will be replaced with qualified substitute.
Staff Qualifications
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A 24-hour security system will be implemented by Guardsman Alarms to constantly monitor the premises. A fire management system will be implemented; staff and children will be trained on how to evacuate buses/premises in the event of accident/fire and how to use fire extinguishers. 5.3 Environmental Impact The business being proposed will pose some amount of threat to the environment. The threats being acknowledged is mainly air pollution resulting from the exhaust from the vehicles. Currently, the Jamaican society has not adapted to the concept of going green, hence the rate of pollutants that are given off from motor vehicles will add to the pollution. Though technically a threat, the heightened awareness of air pollution will be our selling point to those that are sensitive towards the needs of the environment. This will be a subject of our marketing campaigns thus bringing the attention for families to help in the reduction of emissions. It is SMKS ltds intention to acquire and employ eco-friendly resources in order to help preserve the environment.
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Figure 1 Displays the Organizational Chart for SMKS Transport and Tours Ltd. It shows the relationship between the managers and other staff members who make up the business.
Managing Director
Receptionist HR Manager
Marketing Manager
Operations Manager
Accounting Manager
Drivers
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8. HUMAN RESOURCES HR Policy statement It is the policy of SMKS to plan its human resource requirements for the future and take action to ensure that it has an adequate supply of people with the right skills, training and experience available at the required time to enable the business objectives to be met. Recruitment, Training and ensuring that each employee is capable of performing the assigned tasks are but a few of the human resource management issues that must be addressed. Job analysis will determine the job specification for each assignment and subsequently the job descriptions will be developed. Job involvement can lead to job satisfaction resulting in low turnover and extended tenure. 8.1 Sourcing and Staffing Considerations Human Resource Management is one of the key functional areas of any business. HRM involves activities undertaken to attract, develop and maintain an effective workforce within an organization. SMKS HRM planning activities include Recruitment in work, Employee relations, Divergent interests, Equal opportunities, Commitment, Rewards and Career development.
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SMKS Ltd. will be sourcing and staffing a small labour force consisting of two receptionists/ secretaries. We will also be employing defensive bus drivers with at least six years of driving experience. Sourcing will be carried out through print advertisements in the Sunday Gleaner for two weeks to target qualified and interested individuals. The draft of such advertisement may be viewed in the appendix section of the business plan. The following are the requirements applicants are expected to meet. Must have a valid General drivers License. (Minimum six years old) At least six (6) years driving experience in a commercial vehicle.
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Target Market Pricing We will be using different prices for different target markets. For example, we will be offering parents who put more than one child at the service a discount as opposed to those who only have one child. The pricing strategy we intend to adopt in order to achieve our service pricing objectives set above is by Market skimming which is to skim maximum revenues layer by layer. This is where we plan to utilize the highest possible price because of the following reasons: The service quality of being a 24-hour service and the image will support its higher price.
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Meeting/Seminars In an effort to get to know our parent and for them to meet the drivers and attendants we
would use meeting and seminars to promote our service. Based on the feaslibilty study we found that the best way to promote the service is the build a personal relationship with our client and teachers. We aim to build our service on trust and integrity and in order to do so we need a mutual relationship with our clients. Television Advertising is described as a paid, non-personal communication by an organization using various media such as the television to reach its target market. SMKS will promote its services on the number one television station in Jamaica TVJ. Ads will be aired during the popular programs such as; Smile Jamaica, Rising Stars, Entertainment Report, and the Ity and Fancy Cat Show. This type of promotion will help to increase the brand awareness and the services offered. 37
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SMKS Ltd. is making the following assumptions as it regards the projected cash flow; Revenue is received from core services. Depreciate is done straight line basis of ten percent (10%) per annum. . Sales will increase in the second year by 13% and 16% in the third. There are no intentions to invest in any additional capital equipment within the first 3 years. If there are any deviations in cash flow, then we have a BNS line of credit that can cushion effects.
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Loan amount Annual interest rate Loan period in years Number of payments per year Start date of loan Optional extra payments
Lender name:
PmtN o. 1 2 3 4 5 6 7 8 9 10
Payment Date 12/30/2012 12/30/2013 12/30/2014 12/30/2015 12/30/2016 12/30/2017 12/30/2018 12/30/2019 12/30/2020 12/30/2021
Beginning Balance $25,000,000.00 23,213,155.58 21,247,626.71 19,085,544.96 16,707,255.04 14,091,136.12 11,213,405.31 8,047,901.42 4,565,847.14 735,587.43
Scheduled Payment $ 3,286,844.42 3,286,844.42 3,286,844.42 3,286,844.42 3,286,844.42 3,286,844.42 3,286,844.42 3,286,844.42 3,286,844.42 3,286,844.42
Extra Payment $1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 -
Total Payment $ 4,286,844.42 4,286,844.42 4,286,844.42 4,286,844.42 4,286,844.42 4,286,844.42 4,286,844.42 4,286,844.42 4,286,844.42 735,587.43
Principal $1,786,844.42 1,965,528.86 2,162,081.75 2,378,289.93 2,616,118.92 2,877,730.81 3,165,503.89 3,482,054.28 3,830,259.71 662,028.68
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Jan-12
Feb-12
Mar-12
Apr-12
Buildings and Equipment Building acquisition costs Building renovations Manufacturing machinery and equipment Office equipment & Computers 200 ,000 500 ,000 2,000 ,000
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Marketing Development Market research Design of marketing materials Materials printing costs Product launch expenses Total Marketing Development 150 ,000 25 ,000 5 ,000 100 ,000 $ 280,000 37,500 6,250 2,500 25,000 $ 71,250 $ 150,000 25,000 5,000 25,000 205,000 $ 150,000 25,000 5,000 25,000 205,000
Other Expenses Interest expenses Miscellaneous expenses Total Other Expenses 208 ,333 25 ,000 $ 233,333 $ 19,720,10 0 208,333 25,000 $ 233,333 $ 208,333 25,000 233,333 $ 208,333 25,000 233,333
$ 2,951,350
$ 3,085,100
$ 3,085,100
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Gross Receipts on Sales Dividend and Interest Income Invested Capital TOTAL FUNDS IN OUTFLOW
Sales, General, and Administration Buildings and Equipment Other Expenses Interest Expense Corporate Taxes TOTAL FUNDS OUT
Net Cash Flow Plus: Beginning Cash Balance Ending Cash Balance
$ 14,936,492 $ 14,936,492
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Year 1: Expected Sales for all Ten Buses No. of Weeks Monthly No. of Rental Per Week-End per Month Period Buses $74,000.00 4 12.00 Total Total 10 $35,520,000.00 $35,520,000.00
Year 2: Expected Sales for all Ten Buses No. of Expected No. of Term No. Cost per Passengers Weeks per Months Per s Per of week per week. Month Terms Year Buses Total $1,500.00 12 4 3 3 10 $6,480,000.00 $2,500.00 27 4 3 3 10 $24,300,000.00 $30,780,000.00
Year 2: Expected Sales for all Ten Buses No. of Weeks Monthly No. of Rental Per Week-End per Month Period Buses $74,000.00 4 12.00 Total Total $35,520,000.00 $35,520,000.00
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Year 3: Expected Sales for all Ten Buses No. of Weeks Monthly No. of Rental Per Week-End per Month Period Buses $93,600.00 4 12.00 Total 10 $44,928,000.00
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Gross Receipts on Sales Dividend and Interest Income TOTAL INCOME EXPENSES Sales, General, and Administration General Expenses & Misc. Salaries and wages Payroll taxes Rent and lease expenses Utilities License & Insurance Marketing & Advertising Vehicle expenses Accounting and legal services Total Sales, General, and Administration
66,300,00 0 $ 66,300,000
81,864,00 0 $ 81,864,000
81,864,00 0 $ 81,864,000
1,440,00 0 5,080,00 0 1,270,00 0 960,00 0 540,00 0 5,000,00 0 6,417,60 0 3,000,00 0 6,417,60 0 $ 30,125,200
1,440,00 0 5,080,00 0 1,270,00 0 960,00 0 540,00 0 5,000,00 0 7,956,00 0 3,000,00 0 6,630,00 0 $ 31,876,000
1,440,00 0 5,080,00 0 1,270,00 0 1,152,00 0 540,00 0 5,000,00 0 3,693,60 0 3,000,00 0 8,186,40 0 $ 29,362,000
1,440,00 0 5,080,00 0 1,270,00 0 1,152,00 0 540,00 0 5,000,00 0 3,693,60 0 3,000,00 0 9,186,40 0 $ 30,362,000 2,000,00 0 48
Building renovations Manufacturing machinery and equipment Office equipment and computers
500,00 0 2,000,00 0
Operating Profit Less: interest expense Profit Before Taxes Less: corporate taxes
NET PROFIT
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We understand that writing a business plan is time-consuming, but it's essential if you want to have a successful business that's going to survive the startup phase and it is by this nature that SMKS Transport & Tours have created our business plan as a guideline. The process of writing a business plan can do wonders to clarify where you're going as a business.
It is the goal of SMKS LTD., To provide the best private transportation with related products and services in Jamaica. SMKS LTD. will continually strive to provide quality products, timeliness delivery of service at affordable prices which will satisfy our customers needs. SMKS LTD. will aggressively pursue cutting edge technology, changes in international and local trends, services improvements and new products/services, in order to provide the customer with the maximum satisfaction possible.
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Letter of Commitment
Date:_____________________ JAPAN IMPORTS & PARTS 4553 W Lexington Street Chicago Illinois 60624 Ms. Safiyyah Plummer Chief Executive Officer SMKS Ltd. 141 Constant Spring Road Kingston 10 Dear Ms. Plummer, As per our previously negotiated agreement, SMKS Ltd. will have full support in the efficient delivery of all necessary equipments and parts as was stated in our agreement. They will be delivered to the above location on date of your request with a thirty to sixty day credit term. If there are any other supplies that are not stored by us, we will source so as to meet your request. If we fail to meet this credit term agreement, you will be liable for the stated penalties in our contract. Thanks for making it Japan Imports, we look forward to a healthy business relationship. Yours Sincerely
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________________________________________________ _____________________________________________________________________________ _ PICK UP ADDRESS :( if different) ________________________________________________ TELEPHONE: _______________ MOBILE: _______________ SCHOOL: ________________________________________________ SCHOOLS ADDRESS: ________________________________________________ DROP OFF ADDRESS: (if diff.) ________________________________________________ GRADE: ________________ NAME OF TEACHER: ____________________________ OTHER: ______________
TIME SCH. STARTS: __________________ TIME SCH. ENDS: _____________________ EXTRACURRICULAR: YES NO END TIME: __________________
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_____________________________ Date
University of Technology, Jamaica Good day, my name is __________________ and I am collecting information for an upcoming company called SMKS Transport and Tours. We are conducting a study to find out how parent/guardians feel about having a state of the art schools transportation service which is safe, reliable, effective and efficient which also provides amenities such as snacks, educational material while traveling in comfort. To this end, we are asking you to please complete the following questions. The information you provide will be treated with the strictest confidentiality. 63
2. Which age group do you belong? 18-24 25-30 31-40 41 and over
3. Which age group are your child/ children? 3-5 6-10 10-13 14-18
4. What is the relationship with child/children? Parents Brother/ sister Aunt/Uncle other
5. What area do you live in? Kingston/ St. Andrew Portmore Spanish Town
8. Where would you prefer drop off? Home Work Extra classes other
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11. What is the range of your monthly income? $30,000- 39,999 $40,000-49,000 $50,000-59,000 $60,000 and over
12. What is would be your preferred means of paying for this service? Debit/credit cards Cash cheque online
13. How much would you pay on a weekly basis for one way? $1200 $1400 $1600
14. How much would you pay on a weekly basis two ways? $2200 $2600 $3000
15. What time of morning would you prefer pick up? 6:00-6:20 6:40-7:00 7:20-7:40
16. What time of day would you prefer pick up? Morning Evening Both
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17. What would be the best medium to promote this service? Television Radio Newspaper Internet Posters
18. Is there any business with similar service that you are currently supporting? Yes No
19. If yes, how effective are these businesses? Please rate 10-20% 30-40% 50-60 70-80% 90% & over
20. Which characteristic attracts you to a business most? Customer service Convenience/reliability Cost safety of child
SMKS Transport and Tours Tagline: We make each trip and experience
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REFERENCES
Deliotte & Touche, Writing an Effective Business Plan 4th Edition, Accelerator 2003 Longenecker,Moore, Petty, Palich, Small Business management; An entrepreneurial Emphasis 13th Edition, Thomson South-Western 2006 Robbins and Judge, Organizational Behavior, 12th Edition, Pearson Prentice Hall, 2007. http://www.managementstudyguide.com/secondary_data.htm (n.d.). Retrieved October 11, 2011, from www.ehow.com.
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