Business Development Proposal
Business Development Proposal
WEB PUBLICATIONS LIMITED
(an internet publishing house)
Submitted in fulfilment of the requirements of the Masters’ degree to the University of XXX, for the degree of Master in Business Administration (MBA)
March 2012
WEB PUBLICATIONS LIMITED
Contents
Page
Executive Summary
Chapter 1: Introduction 1
Chapter 2: Business Concept 3
Chapter 3: Feasibility 6
3.1 Primary and secondary Market Research
3.2 Feasibility
§ Product/service
§ Industry/market
§ Organisational
§ Financial feasibility
3.3 Resource Requirement Evaluation
Chapter 4: Strategic Analysis and Business Model 22
4.1 Strategic Analysis of the business idea
4.2 SWOT analysis and Value Chain
4.2 Sources of competitive advantage and sustainability
4.3 Selection of strategies for success
4.4 Development of appropriate Business Model
Chapter 5: Business Plan 34
5.1 Business Plan outline
5.2 Proposed plan of action
5.3 Critical Success / Failure Factor
Appendices
References
Bibliography
ACKNOWLEDGEMENTS
I would like to take the opportunity to say thanks to my respected supervisor
XXX class teacher XXX, for their widespread supervision to write my business development project.
I would like say thanks to our entire college librarian who helped me to get all the magazine, journals and text book which assist me to prepare my project.
I would like to give special thanks to my parents who helped with the finance for my studies in the UK.
Executive Summary:
The following paper is a business development proposal for establishment of a start-up consultancy company specialising in sustainability consulting, certificate auditing and monitoring in small and medium enterprises (SMEs) in Serbia. The company will offer expert advice in implementation of ISO 14,000 (set of voluntary standards for environmental management) norm and Eco-Management Audit Scheme (EMAS); ISO 50,000 norm for energy management (EnMS) as well as advice in management of Waste; and Stakeholders and Reporting.
The business development proposal contains several chapters. In the first chapter will be described the business idea, while the second chapter will evaluate if the idea is feasible through market research and different external and internal analysis of the market. The financial requirements are estimated at € 45,000 and are planned to be acquired in the form share capital (€30,000) and bank loan (€15,000). The sales, profit and loss forecasts and the cash flow analysis predict positive returns in the fifth year of the company´s operations, while the breakeven analysis sets the breakeven number of customers at 11 and the breakeven value of services at €57,377.20.
The NPV calculation had positive results for the rate of return required by investors (20%) and IRR was calculated at 26.60% thus meeting the requirements of investors. The company-internal factors were assessed using a Value Chain model and a SWOT analysis, while the market was investigated through a PEST analysis and the Five Forces Model. The resource requirements are relatively low since the business is a service provider, with the most resources needed in the financial and training categories, with the latter covering the certificates needed for auditing of the customers.
In the course of our feasibility analysis, the critical success and failure factors for the business will be defined, which are both company’s internal and external, and include the successful acquisition of financial assets, the acquisition of certificates
needed and successful contact with our most important national and international partners and, at the end of the start-up phase, customers.
The implementation plan for the start-up phase was designed by first identifying the key events and stages for this phase and then setting out a timeline for the introduction and completion of those stages by determining which events are dependent upon others. This timeline was modelled by using both a Gantt chart and a critical path model. Both models resulted in a minimal start-up phase of 12 weeks, with the critical path including administrative setting up of the business, establishing contact with national and international partners and the first business contact with customers. The start-up phase is represented in the financial analysis as year 0.
The chosen strategy is a hybrid diversification-cost leadership strategy with a slow, progressive growth and a strong connection of the company´s policies and internal culture to sustainability issues. This strategy reflects the choice of a business field and a strong diversification drive from other competitors in the field of business consultancy, while also considering the main characteristics, especially the often limited resources, of our base customers.Exertion of accomplishing business development proposal on online publish shop is to expose the business prospect of publish trade in UK market including domestic and home market. Publishing industry is having a major part of UK economy contribution. It is the second highest value added sector in United Kingdom finance sector and fifth largest publish fabricator in the world. This is a sector contributes in education to government institutions.
Chapter 1: Introduction
1.1 Rationale for the business concept:
The publishing industry is experiencing quicker growth of unparalleled environment over the year. Due to development of technology and effective work process publish industry is growing rapidly and contributes a huge amount of funds in UK economy. Nonetheless, United Kingdom is a place of full opportunity for every business sector, each every day a number of businesses launched with different idea. From set up period to end of business operation a organisation require publishing product.
Based on my work experience in publishing sector and current market situation i have planned to start a internet based publish business. It will be able to serve the customer with low cost pricing and customize services. On the other hand background of my education is business studies and my family have business tendency, which also drive me to run a business.
1.2 Selection of a Scenario:
Four scenarios for development of the BDP are available
- a new company startup as an entrepreneur
- your own company as an existing company owner
-your current employing organization
-a commercial or not-for-profit organization
From the given scenarios “A New Company Start-Up as an Entrepreneur” has been chosen for development of this project. It will help me to utilize my knowledge and assist me to understand the market situation of desire business.
1.3 Aim and Purpose:
The aim of the project is to test the feasibility of this business idea developed in the proposal. Business development plan is a framework of business development idea. It helps to gain reliability and identify business and finance risk. This is also a tool which helps to make decision and evaluation of a business idea. To conduct this study owner or employee able to match with organisation goals, and informed about strategy and implementation. This report also helps to identify the viability of this business plan, required funds, target audience / market and competitor and able to design the action plan accordingly. Specially, a business proposal helps to generate required funds from the potential investor because investor can see the entire project and probability of success.
Other objectives of this report are-
- to understand carefully customer volumes and preferences
- to study profitable restaurant operation through research
- to study economic and environmental factors which affect profitability
1.4 Structure of the report:
The rest of this report is organised as follows: Chapter 2 depicts the business concept and opportunity including company mission, vision, and proposed product / service; Chapter 3 reviews the feasibility of proposed business concept; Chapter 4 explain the strategy analysis of business idea and explain the development business model; Chapter 5 gives a picture of overall business plan considering marketing plan, organisational plan, operation plan and financial plan.
Chapter 2: Business Concept
In UK business place want to introduce a online publishing company name Webpub.co.uk. This company will take a part in publishing industry in whole Europe. It will offer online publish solutions and creative design with low cost to individual and non-profit business organisations.
2.1 Business Opportunity
The Federal trade commission mentioned, “Business opportunity is a pack of trade venture that let the buyer to begin a business”. Today’s business world everyday 118 start-up firms launch in UK market including individual, corporate and incorporate (Irish Examiner Tuesday, May 01, 2012). To run those businesses, owners need to follow all marketing activities to create product or service awareness in customer mind. Nevertheless, introduce a new business in business world require a company business card and to make a sense of professionalism in business have to keep company letter head, which are related to publishing sector. In current competitive market to run a profitable trade have to choose an effective and low cost marketing movement. Publish media is one of them. Using publish media (eg, Flyer, poster, leaflet and brochure) a business can reach to a huge number of potential target customers with low cost.
However, to use publish media people have to find time to make those publishing stuff from a publishing shop. Also they need to design the artwork and visit a publishing shop to explain all to do publish. But now a day all business organisations are trying to reduce cost, saving time and keep more concentrate on customer service with good product. In that situation online shop can help them to maintain all successful steps to make business profitable.
Webpub.co.uk offering all types publishing product with customize design template. As a result an individual can do design according to the product and advertising criteria and can place a order easily on website. Though this business concept is not new in the market, other online publishing shop is not focusing on individual customer with tailor product idea, where a vast opportunity to grow and expansion in this sector. Existing online publish shops are serving high street publishing shop or reseller publishing traders to do publish. They only focus on publish not the design. To do the design general customer need to go to a designing company and pay a amount of money then choose a publisher or press to publish. By bearing in mind all of this scope and demand Webpub.co.uk introduce the service package of design and publish together in local market to whole Europe.
On the other hand, publishing industry offers a massive opportunity for existing and potential investors. For instance, on account of economic recession in 2009-10 all business organisations had influenced but in publishing industry was not seriously exaggerated, according to industry profile – Global commercial publishing, May 2011, publishing industry revenue turned down with a compound annual rate of 0.9%. In the recession time, all other sectors of business was going down and down they tried to increase sells using promotional activity including leaflet distribution, flyer distribution, sale offer showing posters and delivering booklet to the customer.
2.2 Mission: webpub.co.uk mission is to provide customize and blue cheap quality product with low cost.
2.2 Vision: Utilizing the supremacy of internet and organisation resources become market leader of publish business sector in the UK.
2.3 Product and Services description:
Webpub.co.uk will be an internet based publish shop and business to business (B2B) publish service provider. It will offer customer a one stop service to complete the publish demand. Customer will be capable of making design by our computerized file creating software and able to place order with the accepting of company terms and conditions. With publish production company will offer design including Logo, Menu and promotional items.
§ Restaurant relates – Food Menu, Window / Table menu
§ Advertising Materials – Pamphlet, Poster, Loyalty card, Flyer etc.
§ Invoice, Notepad.
§ Wish / Greeting Cards – Christmas Card, Invitation Card and Birthday celebration card.
§ Calendar.
§ Office Stationary Stuffs – Business Card, Letter head and Compliment Slip.
Positioning
Although a few online publishers serve individual customers, they charge them a huge amount of money. Because they know that to serve an- individual customer have to spend lot of time to come up with a fruitful work. To fill up this gap and grab this business opportunity webpub.co.uk will introduce the company in publishing industry with user friendly website and cheap price.
Scale of growth anticipated(example)
The initial investment for this enterprise is to establish one resthouse in Manchester. Once the first has established itself in the industry and becomes profitable the ownership will seek to expand and build more resthousesin the surrounding London boroughs. The following table 2.1 represents the expected scale and growth within a 5 year period from the resthouses’ inception.
Table 2.1 Scale & Growth Anticipation
Year / Date / Scale / Growth1 / January 2013 / 1 Restaurant / 10%
2 / January 2014 / 1 Restaurant / 15%
3 / January 2015 / 2 Restaurants / 20%
4 / January 2016 / 2 Restaurants / 35%
5 / January 2017 / 3 Restaurants / 40%
Chapter 3: Feasibility study
To operate a new publishing business in UK market it may be face lot of queries from shareholder perspective:
Ø Unique Selling Proposition of the company.
Ø Any market in the gap
Ø Is it profitable and potential in terms of invested in a publishing business?
Ø Is the market trend growing?
Ø At last what amount of capital requires starting a publishing business in UK?
In order to find satisfying answer of all question have to conduct a feasibility study with market research including secondary and primary research.
3.1 Market Research:
According to The UK Market Research Society website (MRS 2004) “Market survey is one of the significant tools in business.. It is helping an organisation to identify that what their customers and prospective customers need, desire and care about.” Market research helps a business to reduce risk in market and properly informed about the customer demand and how they will be satisfy. Bradley (2007, p. 4) stated that “Market research take a look at specific marketplaces; it portray consumers in those marketplaces and what amount of product they may use.”