ABC Company will be organized as a sole proprietorship owned by Mr./Mrs./Ms. J. Doe. The business will provide all customers with retail sales and service for all classifications of widget X. The venture will be located in a fully equipped facility directly adjacent to Highway 207, 132, 138, Old Malone Highway and/or _____________ within Kahnawà:ke. The establishment will be seeking to attract clientele from Kahnawà:ke and various other surrounding municipalities _____________that are within a close proximity to the Native community.
ABC will be targeting a market niche consisting of individuals who are seeking to acquire timely service in relation to their widget x needs. These customer needs will range from the purchasing of a wide selection of widget x to immediate and customized widget x service. The business will be undertaking an initial marketing campaign that will consist of advertisements within The Eastern Door newspaper, a selective mail campaign, and the acquisition of an illuminated sign (for example).
Competition for the venture will come from a variety of sources that will include numerous _____________ establishments within Kahnawà:ke, specified _________ retailers within and outside of Kahnawà:ke, and large retail chains that offer widget x sales and service.
ABC plans on implementing an extremely competitive pricing strategy as all widget x’s acquired by the venture will be purchased at tax-free wholesale rates from suppliers. This valuable price advantage will provide the business with the opportunity to pass on these monetary savings to their customers that in turn will increase traffic within the establishment.
This business plan is an official request on behalf of ABC Company to the Tewatohnhi’saktha (KEDC) Business Assistance Fund (BAF) for a five thousand dollar ($5,000) contribution and the Marketing Program Fund (MPF) for a one thousand dollar ($1,500) contribution.
The following are the total project costs and sources of financing associated with the establishment/expansion of ABC Company ___________________
Cost Total Equity KEDC
*** Amounts listed are examples used for illustration purposes only.
Section 1. the business
ABC Company will sell widget x in order to meet the specific needs of all customers. ABC will also provide a variety of widget x services to ensure the complete satisfaction of the business’ clientele.
ABC will be located and operated on the property of Mr. Doe, lot number _____________ adjacent to highway 207, 132, 138, Old Malone Highway and/or ______________________within the territory of Kahnawà:ke. During recent months, Mr. Doe came to realize that a large demand for widget x sales and service existed within Kahnawà:ke, and a window of opportunity to establish a venture that catered specifically to this market was presently open.
Products and services
ABC will sell widget x on a specific order and immediate cash payment basis which will allow the business to operate without inventory or accounts receivable. In addition to widget x sales, ABC will provide the following widget x related services; service 1, service 2, service 3, etc. These services will be performed on location without any customer scheduling or appointment requirements to allow for provide prompt service and convenience for the business’ clientele.
Section 2. organization structure
The following section will begin with a description of the ownership structure of ABC Company, and will follow with an overview of the business’ management and personnel systems.
ABC Company will be entirely owned by Mr. Doe as a sole proprietorship. Mr. Doe will be investing approximately $3,500 as cash equity into the venture in order to contribute to the costs of establishing and maintaining the business. In addition, Mr. Doe will commit a great deal of his time to the business by performing various activities that will be essential to facilitate the efficiency of the venture’s operations.
ABC will be managed entirely by Mr. Doe, whose principal responsibility will include the monitoring of the enterprise’s daily operations. Mr. Doe has acquired a significant amount of knowledge and experience regarding the management of an operation such as ABC Company while being employed by Company X. In the event that any advising or support services would be required for the managing of ABC, Mr. Doe would have the opportunity to consult with a Business Services Officer of Tewatohnhi’saktha Business Services in order to discuss any potential needs.
Mr. Doe will personally perform all of the services offered by the business on a daily basis in addition to managing the operations of ABC Company. Mr. Doe has an extensive amount of experience and skills in a variety of trades, the most relevant of which is the recent term of employment for Company X.
Two service employees
Two assistants will be employed by Mr. Doe to help with operating and maintaining the business in an efficient manner. These assistants will be expected to provide quality service in all operative areas of ABC Company. One assistant will be hired to work on a full-time basis during regular operating hours from Monday to Friday (40 hrs. per week), while the second assistant will work weekends and will serve as the ABC’s substitute employee (15 hrs. per week). These positions are not expected to be difficult to fill as there is an excess of unemployed individuals within
Kahnawà:ke with training and experience in the field of _____________sales service. Each employee will be paid ____________ Dollars per hour.
Section 3. market feasibility
The primary market that ABC Company will be seeking to attract will consist of Native individuals residing within the territory of Kahnawà:ke (specify age, gender, purchasing patterns, income bracket – if applicable). The business’ secondary market (and major source of future growth) will be comprised of non-Native individuals who reside in communities within a close proximity to Kahnawà:ke (specify age, gender, location, purchasing patterns, income bracket – if applicable). The business will be attracting clients by utilizing an aggressive marketing campaign, which will target the geographical area in which the establishment will be seeking to develop a customer base. The venture will improve upon this client base through the provision of efficient and timely service in all aspects of the venture’s operations.
The pricing strategy that the business will incorporate will allow for continual growth as it will be highly competitive in comparison to the fees charged within the existing widget x market. When considering the pricing structure that will be utilized and the various associated expenditures that the venture will be experiencing during its initial year, it has been projected that the establishment will earn $____________ in revenues during its first year of operation.
During the second and third years of operation the venture will be increasing its marketing activity to compensate for the venture’s efforts to penetrate into markets other than Kahnawà:ke. The estimated revenues in years 2 and 3 were calculated with consideration to the business’ growth in terms of market share and changing trends within the existing target markets.
Major competition for retail widget x sales within the Kahnawà:ke market comes from Company Z which is a widget x establishment owned by local resident ___________ Company Z provides the Kahnawà:ke market with a variety of widget x equipment and accessories along with a wide selection of widget x. However, Company Z is seeking to attract a broad market of customers who are looking for a wide variety of widget x merchandise when they frequent the establishment. In contrast, ABC Company is seeking to attract a very specific market of clients who will only be interested in widget x sales and service. This specialization will enable ABC Company to effectively draw in customers without engaging in direct competition with Company Z in terms of retail widget x sales and service.
In terms of competition outside of the geographical area of Kahnawà:ke, ABC Company will have to confront significant market rivalry that will come from a great number of established businesses including, _____________________.
Section 4. marketing strategy
ABC Company will be implementing an aggressive marketing campaign that will target a base of customers from within and outside of the community of Kahnawà:ke. Mr. Doe plans to access funding from the Marketing Program Fund for the purpose of assisting with the costs of launching their initial marketing campaign.
There are two objectives that are critical to the success of the marketing plan:
- The primary objective is to create awareness within the target market as sales for ABC Company (if it’s a new business) can only be generated through awareness of its existence.
- The second objective is to maximize revenues during slow periods in order to balance the seasonal cycles that exist within the industry.
ABC Company will be utilizing a variety of media in order to promote the business and its services. These sources include advertisements within Kahnawà:ke’s local newspaper (The Eastern Door), a mail campaign, and attractive signage for the business (example).
The Eastern Door is printed on a weekly basis and currently reaches approximately 80% of the households within Kahnawà:ke. This provides ABC Company with an unparalleled advertising tool for reaching all demographic segments of the Kahnawà:ke market. The venture plans to implement a marketing campaign that would include advertisements within the Eastern Door every second week, or 26 times per year.
ABC Company will also be developing a mail campaign to attract customers from both Kahnawà:ke and various outside communities. An attractive flier will be produced by (name supplier) and distributed to numerous target households within Kahnawà:ke, St. Isidore, Saint Constant, St. Remi, and other communities whose residents frequent highway 207, 132, 138, or Old Malone Highway through Kahnawà:ke.
Mr. Doe will also be purchasing an illuminated sign that will serve as a promotional vehicle designed to attract motorists who will be passing the establishment without any prior knowledge of its existence. This sign will allow ABC Company to increase its base of potential customers by capturing a greater percentage of passing traffic on highway 207, 132, 138, Old Malone Highway through the creation of increased consumer awareness.
|26 Ads in the Eastern Door
1,800 Color Fliers
4’ X 8’ Sign Neon Sign
ABC Company will offer all classifications of widget x that will range considerably in terms of price in relation to the model of widget x. The average price for a single widget x sold by the business will be $_______ and the average purchasing cost (wholesale from suppliers) that will be absorbed by ABC Company will be $________ per widget x. This results in an average markup of approximately $______ on retail _________ sales which is consistent with the present industry average.
All widget x’s will be purchased tax-free from suppliers which will provide the business with the opportunity to sell their widget x at slightly lower prices than those offered by retail organizations outside of the territory of Kahnawà:ke. This price advantage will be a key factor in establishing ABC Company’s competitiveness and ability to attract patronage to the venture.
ABC Company will provide the widget x’s and widget x services at the following prices:
All products and services offered by ABC Company will be priced competitively and will be of the foremost quality and dependability in order to ensure customer satisfaction.
ABC Company will be located alongside highway 207, 132, 138, Old Malone Highway and/or _______________________ which serves thousands of motorists daily as a major access route to the Mercier Bridge ________________. This location provides ABC Company with an excellent opportunity to develop a sizable customer base during the early years of the venture’s existence.
The location is convenient for Kahnawà:ke residents as the venture will be situated within a close proximity to the densely populated area of the community. The location is also very accessible for non-Native clients who are unfamiliar with the territory of Kahnawà:ke as the business will not be difficult to find being that it will be located near a highway.
Mr. Doe will be renting retail space for a monthly fee of $___________ ($___________ annually). ABC Company will pay for all telephone, utility, and business-related maintenance expenses, while the landlord will provide for the general maintenance of the building in which ABC Company is situated.
Section 5. operational plan
This section will provide an overview of the venture’s operational plan for the first year of operations in relation to the following areas:
- Facility Requirements
- Equipment Requirements
The section will conclude with a summary of total project costs and the proposed sources of funding that will be utilized to establish the enterprise.
The facility that ABC Company will be leasing will provide for a 1000 square foot area (25’ x 40’) equipped with all the basic utilities that will be required by the business. The rental fee will be fixed at $7800.00 annually and the landlord will deliver the rental space as a turnkey operation with all water, hydro, infrastructure, landscaping, and paving included. If Mr. Doe were to make any additional leasehold improvements, all associated costs would be borne by him.
All equipment and accessories that will be needed for the daily operation of ABC Company will have to be purchased by Mr. Doe prior to the opening of the establishment. The following is a complete listing of the equipment needed along with the purchase cost that is associated with each apparatus:
ABC Company will fulfill their retail widget x needs by dealing with the following suppliers:
- Supplier 1
- Supplier 2
- Supplier 3
The above mentioned distributors were chosen after consideration of the vast selection, affordable prices, and dependability that each company offers in relation to the supply of widget x’s. ABC Company will deal mainly with Supplier 1 and Supplier 2, and all transactions with Supplier 3 will occur on an contingency basis in the event that an unforeseen circumstance should occur (such as the closure of one of the main suppliers).
In the future, ABC Company plans to negotiate credit terms of 30 days with the venture’s main suppliers in order to allow for greater flexibility in terms of working capital. However, until a standard credit policy with suppliers is established the business will have to purchase tires on a cash only basis.
Since payroll represents a large portion of fixed costs, the hours of operation for ABC Company may be adjusted according to actual demand once operations are underway. The following is the preliminary operating schedule that has been used to prepare the financial projections presented in Annex A:
|Hours of Operation|
|8 am – 5 pm
8 am – 5 pm
8 am – 5 pm
8 am – 5 pm
8 am – 5 pm
|Total Hours per week||50 hours|
Financial Management and Controls
While ABC Company is becoming established within its geographical area there will not be a need for an elaborate bookkeeping system. Records of revenue receipts and operating expenditures will be organized and manually entered into the business’ books on a weekly basis by Mr. Doe. In the event that Mr. Doe should require any assistance with the implementation of a bookkeeping system for ABC Company, he would have the opportunity seek guidance from a Business Services Officer in this area.
Project Cost Summary
|Widget X Service