logo
by ordering custom writing service for us you'll get
 
professional research of your paper
order now
 
our experienced
 
   
discounts
you save
Type of assignment:
Urgency:
Writer level:


 
Cost per page:
 
Number of pages:
 
Total without discount:
payment
 
← PepsiCo Inc Case AnalysisClass Pricing Project →

Buy Business Plan for “Electricity House” essay paper online

Running head: BUSINESS PLAN BUSINESS PLAN for “Electricity House” Completed by University of Outline 1. Executive Summary 2. Company Summary 3. Products 4. Market Analysis 5. Management Analysis 6. Financial Plan 1. Executive Summary Electricity House is a small, Piraeus (Greece)-based company selling electrical supplies. It is brick and mortar firm where customers can also order products by mail. Electricity House is planning to remain small in order to offer extraordinary customer attention. Electricity House will be taking an active part in an exciting, developing market. Electrical supplies have seen tremendous increase in Greece at the end of 90’s in the beginning of the 21-st century. The Greek market is worth about 200 Million USD. Electricity House is founded on the idea that keeping satisfied clients is essential to the financial performance of the company. Electricity House is planning to be both a traditional brick and mortar organization providing quality products to the local community and working through the catalog mail order service. The catalog is designed as five-color edition and following editions will be examined to check the cost effectiveness of publishing in this format. Electricity House will offer finished electricity products and parts for a broad variety of electrical goods. Safety products (such as fire alarms) and set up equipment will also be sold. A wide range of the popular name brands will be sold in addition to a selection of generic label parts. Electricity House will start making profit from month one. Margins are projected to be at 30%, ultimately reaching 33%. Sales during Year one will be $350,000 for this year with a 30% increase rate for the following five years. Electricity House is an great possibility that combines a customer-centric company with an explosive industry. Buying all of the electrical supplies rather than ordering them through a service company is becoming increasingly popular in Greece with more and more people becoming active participants in this business. Even for individuals who are not real electricians or engineers, it seems to be prestigious to equip the house with the goods that they have chose (all major electrical goods are usually installed for free once purchased in the store). The following graph illustrates the forecasted sales 1. A. Objectives 1. To make Electricity House the number one company for the purchase of electricity supplies in the Piraeus. 2. To attain a preliminary gross profit (GP) margin of at least 30%, growing that by at least 1% per year until becoming our final target of 33%. 3. To reach sales of $350,000 in products the first year. 4. To keep a steady growth rate of 30% per year for the first five years. 1. B Mission Electricity House is devoted to offering electrical products that combine quality performance with cost effective pricing. We desire to establish a winning partnership with our customers, our workers, and our suppliers that value the interests and goals of each party. Continually striving to supply what the client is asking for, we will recurrently review what is available in the marketplace, and what has to be provided. Improving on what is accessible and offering new goods and services to the areas of need will aid to ensure our success in a market driven by strong consumer demand. 1. C. Keys to success Achievements will eventually be measured by our customers choosing us because of their confidence in our ability to meet or exceed their anticipations of price, service, and selection. To win in this business, Electricity House must: • Be a positive member of the local community: attend functions at local events, be an active participant and sponsor at regional and national shows. • Deliver our products on time. Deal with our clients on a personal level 2. Company Summary Electricity House is a new organization, which upon beginning of operations will offer entry-level reasonably priced goods and quality service. 2. A. Ownership Electricity House is a Piraeus corporation, subchapter S, owned completely by Matthew Paragowski and John Smithers. 2. Start-up Analysis Major costs are $12,500 for buying computer hardware, setting up software getting support; $1,600 are rent expenses, $2,500 go towards telephone system costs, about $1,300 are spent on office equipment and furniture, at least $2,700 will go to purchase various warehouse equipment, $2,800 will be spent on leasehold improvements, and $7,000 will go towards buying company pick-up truck.

 

Get Price Quote

 
 
Type of assignment Title of your paper Spacing Writer level
Number of pages Timeframe Currency Total price
 
 
   

The firm will start out with approximately three months' inventory on hand. This means the bulk of company assets will be inventory (the beginning cash balance will not be considerable). You will discover that we have about $60,625 additional funding required. The aim of this business plan is to find financing for that amount. Below in this plan, when you look through the Forecasted Balance Sheet, Forecasted Cash Flow and the Forecasted Profit and Loss statements, you will find out that we do not indicate any debt or interest expense. Yet, by examining these same charts, you will find out that we project a significant amount of earnings to service a debt load. Start-up Costs Labels $725 Rent expenses $1,600 Stationery expenses $300 Total Start-up Costs $2,625 Start-up Assets Required Cash Balance (Beginning of Period) $1,000 Beginning Inventory $50,000 Current Assets $0 Total Current Assets $51,000 Long-term Assets $29,000 Total Assets calculated $80,000 Total Needed $82,625 Financial support Investment Individual Investment $80,625 Total Investment $80,625 Current Liabilities Accounts Payable $2,000 Current Liabilities $2,000 Long-term Liabilities $0 Total Liabilities $2,000 Loss at Commence of the business ($2,625) Total Capital $78,000 Total Capital and Liabilities $80,000 Start-up 2. C. Company facilities Electricity House is situated at 45 Green Line, Piraeus, Greece. Such location will offer us good visibility along with convenient right of entry for traveling. Another benefit of this location is the lack of any major department stores selling electrical supplies. We will at first be leasing 2,500 sq. ft. of a new 15,000 sq. ft. trading center. As needs will show, our office and warehouse space could be increased into an additional 1,500 sq. ft. We will split this facility with another organization that also involved in providing electrical services, and their business will draw many of the local customers who will also visit our facility. This location will comprise a showroom, warehouse space, and office space. All deliveries and goods will be treated and dealt with at this location. We will also have spacy parking accessible. 3. Products Examination Electricity House is going to sell electricity supplies to a wide range of customers. These products will include finished electricity products and parts for a broad variety of electrical goods. Safety products (such as fire alarms) and set up equipment will also be sold. A wide range of the popular name brands will be sold in addition to a selection of generic label parts. Electricity House will help its customers to find the best parts for their use at a price that meets or exceeds their wants. In the case of a problem, we will be there to assist and advice the customer to a quick solution. We will bear or have swift access to most key lines of electrical equipment. We will also bear generic "simple label" goods that we will market under our own company name. Personal labeling will allow us, in many cases, to significantly increase our profits since the subsequent costs are much lower for these types of products. Although our target market is the entry-level electrical supplies shopper (one who knows little about the technicalities of the matter), our product mix will be adequate to fill most of the needs of even the most sophisticated electrical engineer. We will work Monday through Saturday with hours yet to be concluded upon. Our experience has indicated that most entry-level electrical supplies shoppers’ greatest choice is for low prices. We are sure we can offer goods that indeed are lower in price without sacrificing the presentation and safety issues that our customers will want. Southeast Racing Parts will provide precisely the level of service that today's entry-level racer requires. 3. A. Competition Within this niche, we only have one major competitor. They, however, do not sell fire alarms and safety equipment, which should give us a competitive advanage in that respect.

Order now

In general, yet, our rivals are not in our targeted part of the market. This competition comprises mainly these three groups: 1. Secondary electrical parts suppliers. 2. Professional engineering companies’ suppliers. 3. Regional mail order suppliers. Sourcing is the area that we are confident we will have a distinct advantage over much of the competition. Because of our former work experience in sales, we have a vast number of dealer contacts within the electrical supplies industry. We have nice, long-term, strong relationships with many of these suppliers which, in many cases, will let us achieve economies of scale. Many of these vendors have already issued special deals for us, such as removing their buy-in requirements, extra payment terms, and purchasing referrals. We will buy our inventory from both local wholesalers and direct from the producers. We will use the local suppliers more initially because of their capability to service us faster. This will decrease our profit slightly; yet, we are sure that it will allow us to turn our inventory at a greater paste. As our sales volume grows, we will move our buying patterns away from the wholesalers and buy more of our stocks direct, which will result in greater profits. 3. B. Technology All hardware and software computer systems that will be used by Electricity House have been cautiously and diligently evaluated. We will use modern, PC-based software for accounting aims’ quick completion including AR/AP, sales, returns, inventory, and purchasing. We will begin with three workstations and get bigger upon that as required. A number of the computer systems employed in this today are outmoded and obsolete. The key suppliers are unwilling to change because of the enormous capital expense to alter over their systems at one time. Therefore, they keep going with the old and obsolete equipment. By selecting this software, our training costs will be abridged tremendously. Much of the software used by rivals takes weeks to learn and study. Our use of this software will allow an ordinary, computer-literate employee to learn the system in one day. 4. Market Analysis At present, the market for electricity supplies is rapidly growing. Overall it is calculated that the total retail market for electrical supplies is $200 Million annually and it still continues to expand. The only real danger to our business enterprise would be a similar new entry to the market. 4. A. Segmentation The electrical supplies industry is in a boom period. While there are a number of items from various suppliers available, Electricity House has approached the market as a field retailer -- a source of parts and services to the entry-level shopper (one without any specialized knowledge in electrical engineering). Our target client in this segment will have a broad range of engineering skills, but our most important target clients are relatively unsophisticated at engineering. We will mange to serve this buyer well not only by giving them parts at an affordable price, but also by offering them recommendation that ensures they get the task done properly, therefore improving their on-track performance. 4. B. Segment Strategy Our segment description is of strategic nature. We are not aiming to satisfy all users of electrical equipment, but rather individuals who are just interested in furnishing their houses and those who are struggling to keep with the rising costs of service companies. We can save our clienst time and money, not because we will offer unique pricing structure, but by assessing their requirements and guiding them toward the proper product. People, by nature, are inclined to want a high-end product, when frequently a low to mid-end product will satisfy them. By always presenting products in an honest and ethical manner, we will construct customer loyalty and word-of-mouth sales will be increased also. 4. C. Market Needs Because our target market is the entry-level shopper (one who has no specialized knowledge in engineering), the most important requirements are ease of use, service, and price. One of the major points of our strategy is to center on target segments that know and appreciate these needs and are wanting for us to fulfill those needs.

Live chat

4. D. Industry participants We are part of the electrical industry, which includes several kinds of ventures. Local Shops: Most of these are little, often part-time businesses run from the individual's home. From time to time they will service a part of the local community; however, they typically carry a very minimal amount of supply, and are usually operated by a family depending exclusively upon a small circle of friends as clients. They in general lack business and marketing skills. Parts providers: Normally these are well-treated firms offering parts to the service industry. Their client profile is situated in the mid to upper part of the market. They provide superb technical support; yet, it is only accessible to customers using their products. They keep parts to service their clients, but are typically limited in areas beyond that. Mail Order: The electrical supplies industry is served more and more by large mail order companies that offer aggressive pricing on electrical parts. They are normally impersonal, and have little or no technical support at hand. For the entirely price-driven purchaser who buys parts and expects no support, these companies offer a good option. Combinations: There are many other companies through which individuals buy their electrical goods and parts, usually combinations of the main three types above. 4. D. Distribution Usually, traditional distribution channels are abided by. The goods are bought from local suppliers and/or direct from the manufacturers, who have typically no control in how products are marketed. As in most cases, price levels drop as volume grow. 5. Management Analysis Electricity House’ strategy is based on satisfying the niche of entry-level shoppers (those who have little or no experience in engineering). • What starts as a modified version of a standard product, tailored to the requirements of local shoppers, can eventually become a niche good that will fill up the needs of similar shoppers across the country. • We are designing our marketing strategy so that we can ultimately reach specific kinds of customers across broad geographic lines. • We center on satisfying the needs of entry-level shoppers. • We center on follow-on service that we can take to the public, as opposed to leading edge technology that aims at the professional shoppers (those with extended knowledge in electrical engineering). 5. A. Marketing Strategy The general marketing strategy of Electricity House centers on building a corporate individuality that clearly defines our market niche in terms that promote our client. 5. B. Pricing Our clients are especially responsive to value. We must make sure that our price and service are seen to bring a good value to the shoppers. However, we do realize that someone can always beat our price. Consequently, our pricing strategy is to be reasonable within the various product ranges, but not to be based on the selling price to outshine the other advantages of doing business with our firm. We will market ourselves on the basis of a assorted line of quality goods, that are readily obtainable, logically priced, and backed up by our exceptional customer service. The goods will be tested prior to shipment and all required shipping dates will be met. We will aim for a gross profit margin of 30%, raising that to 33% by year four. 5. C. Promotion The company’s most important means for sales promotion will be our catalog, which was depicted in the executive summary of this plan. 5. D. Sales Strategy Because Electricity house is a new business, we know that we will have to prove our firm’s worth to clients in order to earn their respect and custom. Most significantly, we have to sell our company, not essentially the products. We will have to push our service and back capabilities. 5. E. Sales Forecast The table that appears in the following paragraph and related graph indicates how our present sales forecast is structured. We are forecasting sales to grow at the paste of 30% for the following three years. Monthly Sales Sales Forecast Sales FY 2005 FY 2006 FY 2007 Inventory Sales $350,219 $455,285 $591,870 Internet Marketing $16,800 $16,800 $16,800 Total Sales $367,019 $472,085 $608,670 Direct Cost of Sales FY 2000 FY 2001 FY 2002 Inventory Sales $245,154 $314,147 $402,472 Internet Marketing $0 $0 $0 Subtotal Direct Cost of Sales $245,154 $314,147 $402,472 Personnel Plan FY 2005 FY 2006 FY 2007 Matthew Paragowski $16,800 $20,160 $24,192 John Smithers $9,600 $11,520 $13,824 Salesperson (PT) $0 $8,000 $8,000 Salesperson (FT) $0 $0 $20,000 Total People 2 3 4 Total Payroll $26,400 $39,680 $66,016 6.

Order Now

Financials FY 2005 FY 2006 FY 2007 Plan Month 1 2 3 Current Interest Rate 10.00% 10.00% 10.00% Long-term Interest Rate 10.00% 10.00% 10.00% Tax Rate 25.42% 25.00% 25.42% Other 0 0 0 The chief indicators in our setting show growing sales, control of costs, and increasing profits. Break-even Analysis Click to Enlarge Break-even Analysis: Monthly Units Break-even 20,000 Monthly Revenue Break-even $20,000 Assumptions: Average Per-Unit Revenue $1.00 Average Per-Unit Variable Cost $0.70 Estimated Monthly Fixed Cost $6,000 Pro Forma Profit and Loss FY 2000 FY 2001 FY 2002 Sales $367,019 $472,085 $608,670 Direct Costs of Goods $245,154 $314,147 $402,472 Speedingticket.net $0 $0 $0 ------------ ------------ ------------ Cost of Goods Sold $245,154 $314,147 $402,472 Gross Margin $121,865 $157,938 $206,198 Gross Margin % 33.20% 33.46% 33.88% Expenses: Payroll $26,400 $39,680 $66,016 Sales and Marketing and Other Expenses $13,404 $15,734 $18,489 Depreciation $2,650 $3,445 $4,478 Office Supplies $600 $780 $1,014 Utilities $2,400 $2,400 $2,400 Security/alarm $360 $360 $360 Insurance $840 $840 $840 Rent $19,200 $19,200 $19,200 Depreciation $4,140 $4,140 $4,140 Leased Equipment $0 $0 $0 Payroll Taxes $3,960 $5,952 $9,902 Other $0 $0 $0 ------------ ------------ ------------ Total Operating Expenses $73,954 $92,531 $126,839 Profit Before Interest and Taxes $47,911 $65,407 $79,359 Interest Expense $0 $0 $0 Taxes Incurred $11,999 $16,352 $20,170 Net Profit $35,912 $49,055 $59,188 Net Profit/Sales 9.78% 10.39% 9.72% Cash Flow Pro Forma Cash Flow FY 2000 FY 2001 FY 2002 Cash Received Cash from Operations: Cash Sales $367,019 $472,085 $608,670 Cash from Receivables $0 $0 $0 Subtotal Cash from Operations $367,019 $472,085 $608,670 Additional Cash Received Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $367,019 $472,085 $608,670 Expenditures FY 2000 FY 2001 FY 2002 Expenditures from Operations: Cash Spending $27,427 $38,133 $47,819 Payment of Accounts Payable $254,471 $379,163 $497,880 Subtotal Spent on Operations $281,899 $417,295 $545,699 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 Principal Repayment of Current Borrowing $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $281,899 $417,295 $545,699 Net Cash Flow $85,120 $54,790 $62,971 Cash Balance $86,120 $140,910 $203,881 Pro Forma Balance Sheet Assets Current Assets FY 2000 FY 2001 FY 2002 Cash $86,120 $140,910 $203,881 Inventory $26,196 $33,568 $43,006 Other Current Assets $0 $0 $0 Total Current Assets $112,316 $174,478 $246,887 Long-term Assets Long-term Assets $29,000 $29,000 $29,000 Accumulated Depreciation $2,650 $6,095 $10,573 Total Long-term Assets $26,350 $22,905 $18,427 Total Assets $138,666 $197,383 $265,314 Liabilities and Capital Current Liabilities FY 2000 FY 2001 FY 2002 Accounts Payable $24,754 $34,416 $43,158 Current Borrowing $0 $0 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $24,754 $34,416 $43,158 Long-term Liabilities $0 $0 $0 Total Liabilities $24,754 $34,416 $43,158 Paid-in Capital $80,625 $80,625 $80,625 Retained Earnings ($2,625) $33,287 $82,343 Earnings $35,912 $49,055 $59,188 Total Capital $113,912 $162,968 $222,156 Total Liabilities and Capital $138,666 $197,383 $265,314 Net Worth $113,912 $162,968 $222,156

Buy Business Plan for “Electricity House” essay paper online

Related essays

  1. Class Pricing Project
  2. Agricultural Sector in Canadian Economic Development
  3. PepsiCo Inc Case Analysis
  4. Business Industry Forecasting
 
order now
7K
3.5K
live support
our advantages
300 Words per page
12 pt Times New Roman Double-spaced typed page
MBA and PhD Writers
Relevant and up-to-date
US Writers
100% Confidentiality Quality Guarantee
24/7 Support
24/7 Live Chat
Direct Contact with an assigned writer
Flexible Discount Program
ANY Difficulty Level!
testimonials
I am so impressed with research paper that I received and your service. You are simply the best! In future I will order my papers from you. Best Regards.
Jay, Australia
Say thanks to the writer who helped me with my research paper. A very professional work!!!!!! Much appreciated. Thanks.
Paul, USA
I tried other writing services but from now on I am going to use only your service. My college essay was written in accordance to the standards that were stated on your site. This is great to deal with the service which does what they promise.
Michelle, USA
testimonials
home samples buy term paper essay prices about faq tips discount contacts
X
-15% first order  Order now