What Is Your Business Idea? Business Plan Example

2021-08-20 01:26:18
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Harvey Mudd College
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Essay
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Antiquarian Second-Hand and School Books are one of the Dials a book services that the company aims to provide. Over the last three years, most students have become web entrepreneurs. Some design websites, some are engaged in online games while some are bloggers or engage in a wide range of online and offline activities. To help more effectively and enable them to concentrate on their various engagements, the company will deliver books to students on demand. The business wills preferable because it is less time consuming but has higher returns with very low investments. For example, through the app that the students will download from the play store and app stores, the students will indicate their location, their books of their choice and the time that they would like the books delivered. The company will only charge 5% commission on the value of books ordered. The company will mainly be in charge of logistics to improve students value through conveniences.

Key success factors

The companys mission is to deliver values to students worldwide through conveniences.

The companys vision is to be the company of choice for students books and supplies

Rationale:

Management- the company will be managed by a team of dedicated students who have had previous experience in running students centered services such as books, printing and photocopying, entertainments. The team will leverage their experiences and understanding of the campus landscape to develop an app that would be used by the students to select books from a wide range of options from menus around the town.

Customer satisfaction- with the groups goal being customer satisfaction, the students centered services will ensure that the customers get value for their money. The students choice and requirements would be exceeded through timely services

Innovation- just like Amazon, the company will ride on innovation to deliver the book to students. For example, using the innovative app, students can use the book delivery services without going to the bookstore or interfering with their various engagements. The company will continuously innovate to improve and exceed customer expectations

The project is less costly as the company would not have to buy motorcycles or car to deliver books, but use the already available riders playing the school route. The company will share the revenue with the students in a pre-agreed ratio (Just like Uber for books). The company would use its app to collect data and analyze the students most preferred books and focus on the areas, and books that students ordered most of the time

Customer service- The Company would consistently endeavor to meet and succeed customer's satisfaction. All the contracted riders would be expected to demonstrate professionalism without which they would be rated low. All the riders whose ratings are below 50% for poor customers service would be eliminated from the book delivery service

In it to win it mindset- The team has reliable information about the market's competitiveness. Currently, tethers are no similar service providers. The cost of entry is also high, and the suppliers have higher bargaining power. This means that the market will be almost unprofitable for small players without networks to use. The only competitors are hotels and bookstore within the school. However, none of the bookstores is a direct competitor as the company will also integrate their services into their supply chain.

Convenience most students cannot afford to buy the new books because of personal financial reason. The company will therefore liaise with other library and second book sellers

Part B

What are the four most important objectives for your new business?

The main objectives include

To develop the dial a book brand.

This is a new brand. Therefore, the first goals should be to drive brand visibility create brand awareness, and promiot6e brand loyalty. Therefore, the company would ensure that it develops brand loyal by marketing aggressively and delivering values to the customers.

To exploit the first mover advantage in the market by being the first one to provide such services on the local campus and beyond. This is the first of its kind in the university. The company would, therefore, assume a market leadership position by using the apps that can be downloaded free of charge. They can just select their preferred books from over 100 bookstores, and the company will deliver. Local bookstore not using technology to market and streamline their services. The company will, therefore, fill the gap between the bookstores and the consumers.

To maximize the market share by leasing with all bookstores and riders within the vicinity of the campus. The Company will partner with all bookstores riders. This way, it would eliminate competition, and the company will be the only authorized distributors of the books produced by the bookstores. The company will manage all take-a-way services.

Ownership

This business will adopt the limited company model. The company will be a private limited company limited by guarantee. A private limited company is chosen over sole proprietorship because the partners would be contributing capital and each investor would have defined roles and voter rights in the companys meetings. Secondly, the company will not be a partnership because a private limited company has more advantages over the partnership. The limited liability company would provide more protection to the towns in the event of liquidation. For example, each one of the leaders role would be limited by guarantee and their assets are protected from the vulnerability associated with loss or liquidation and bankruptcy (Goode, 2009).

Secondly, the private limited company is much preferred because the company;' characteristics meet the company for of ownership and the capital base also allows for the formation of a company. Forming company has an ad evaded advantage as the company is much likely to be awarded loans by the banks for expansion as compared to the partnership. A partnership is only guided day a partnership deed while laws are protecting the company and the stakeholders (Artz, Gramlich, and Porter, 2012). The ease of ownership transfer and the ease of raising money are some of the primary motivation for starting an LLC as opposed to a partnership or sole proprietorship.

Task 2

As part of portfolio task 1, you have defined what your business is, its objectives and the form of ownership it will have. The next step is to complete a PESTLE analysis.

Political

The political stability of the school and the target country. The business relies on the school programs. Political instability would mean the students being out of school and this would threaten the business profitability

Governmental support for e-commerce as the business completely rely on e-commerce, government support for e-commerce should also enable the business to thrive. For example, if the government passes laws aimed at restricting the internet, then the business will be affected. The success of the company is therefore contingent on the sound government decision to support e-commerce

Increasing governmental efforts on cyber-security- cybersecurity is a major threat to the internet business. From the loss of customer, valuable information to loss of online funds, customers would not be willing to share their payment information online through the app unless the movement demonstrates stringer effort to stop cybercrime.

Technological

Rapid technological obsolescence -T he company belles that the technology would not become obsolete faster. However, with the current innovative environment where new technologies and apps are developed every day, the company would have to either update or upgrade their app or lose the market. Technological obsolesce is, therefore, a call for the company to innovate or loss its business

Increasing IT efficiency and R&D- as IT becomes more efficiency, the company has an opportunity to drive revenue and growth by using IT to improve performance and efficiency. With research and development and innovation, IT efficiency would also improve further

Increasing cybercrime - The increase in the cases of cybercrimes is a threat to the company. There are hackers and cybercriminals who a major risk to the company. Therefore, the company has to make arrangements to manage or protects its apps and operations against cyber criminals

Economic

Economic stability -Economic stability of the market is a major factor to be considered. If the market is not economically stable, the companys revenue is also threatened. Economic stability is an opportunity for the company to grow faster and drive revenue

Increasing disposable income in developing countries-As the economic performance is improved, the amount of deposable income would increase translating into money to spend on books, The company would, therefore, earn revenue as many people would be looking for books since they have extra money to spend

Legal

Rising product regulation -.Rising products regulation would be an opportunity and a threat at the same time. If the products regulation on second-hand books favors the sale of second-hand books, that the company would be advantages. On the other hand, if the regulation is against the sale of second-hand books, then the company's profitability would be compromised

Easing of import and export regulations -Laws against import and export of second-hand material would impact the companys profitability. Because the company would be sourcing second-hand books from vendors within the country and outside the country, laws that regulate export and import of second-hand books would be bad for the company

Social

Increasing wealth disparity -Increasing wealth disparity would affect the companys financial performance. For example, m increasing wealth disparity would mean that even the low social, economic people would not be able to afford the second-hand books.

Increasing consumerism in developing countries -Increasing consumerism will be an opportunity for the company as peoples culture and propensity to spend money would increase their expenditure on

Environmental factors

Rising interest in environmental programs- Interest in environmental conservation would mean that the company would benefit as people would be encouraged to use the second-hand books and not dispose of them. Such regulations favor recycling of old books

Rising emphasis on business sustainability- this will drive company success. As the business would be paperless, the company believes that such emphasis would favor its success.

Task 3

It would be helpful for you to review the lecture and seminar on budgeting and managing cash flow. Both the lecture and seminar contain example budget templates that you could use to guide your launch event budget.

Consistency with previous portfolio tasks is needed. For example, if one of your objectives was about high quality then you should make sure that your marketing plan is consistent with this objective. It is recommended that you re-read the portfolio submissions for tasks 1 and two before starting this task.

Part A Defining your Launch Event

The event is for launching the dial-a-book app that students will use to request for any books that they need, and the company would endeavor to find the books and deliver the second-hand books to the students at their preferred time, and location.

The launch of the dial a book app would be within the main campus. There will be special invites especially for the heads of clubs and societies within the school. There will also be an open session for all the uninvited guests. All the 40 invitees would receive an official letter inviting them to the event. The hallmar...

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