Start Up expenses 4
The way forward 6
How long it takes to make my business up and running? 6
How long can I manage in case of 0 profit? 6
Cash flow, Book keeping and perspectives 6 6
Introduction
Before writing any Business Plan I should make a Market Research, but because I’m not serious and right now I’m no planning to own a business in any form. This document is an imaginary plan and imaginaries are all the figures and references in it. The intention of this publication is to demonstrate how I would make a Business Plan.
Business Purpose and Type
What and to whom am I selling?
I offer for a low monthly fee computer maintenance services for small starting up companies/businesses for which cannot afford to hire an IT professional, but need such a service. I would aim to companies/businesses which have a lower monthly profit than 15.000€, because generally in Finland to employ an IT professional wages between 1900€ to 3500€ what means it cost for the company 3000€ to 5500€. The target group cannot afford financially to hire a professional, but don’t even need it daily, but in a regular basis.
What kind of business I want?
To start with I choose the form of Sole Proprietorship (T:mi ‘toiminimi’) with the trade name “Aliquantum” which comes from Latin and means “Good deal” and sounds similar to the English term ‘aliquant’ which means an integer that is a divisor of some quantity, referring to my business as a part of the market.
Finance
The capital comes from my own savings, and from the benefit´s for starting businesses (Starti Raha) from the local Employment Office.
Competition
Where does my business fit in?
There is an increased need for IT professional services for small companies. The competition concentrates mainly on domestic customers, but serves this sector as well.
Where does it differ from the competition?
“Aliquantum” would concentrate only on the small or starting up businesses sector providing IT helpdesk and IT solutions for this particular segment for a low monthly fee. There would be no service center or premises for “Aliquantum” which would mean cooperation with regular service spots and companies. “Aliquantum” would fill the gap between the small businesses and the general services. While an IT company offers a wide range of services for domestic users, it doesn’t specify those needed by corporate customers.
The main service needed by a small business not eligible of support from the local government founded business link organizations is the help in IT architecture or IT restructure. These small businesses face with the need of up to date IT solutions and guidance on baying equipments, programs and help in controlling, using and maintaining them. In case if these equipments/programs require service they should know where and what to search or if the problem is minor Aliquantum would service it. If the problems are significant Aliquantum would take care of it (contacting with the right IT Service Spot, partner companies).
For starting up businesses “Aliquantum” would provide basic service and administration as well as IT consulting.
Marketing PlanDirect marketing
To start of a website will be ready before the company opens, and presentations would be held in Entrepreneur curses held by the local Employment Offices in Helsinki. Since the Government puts a lot of effort to start businesses “Aliquantum” can be recommended or promoted at local Business Link organizations. At the first period of the company the main stress would be on letting the potential customers know “Aliquantum’s” existence. I would do it in a ‘call center’ style, choosing the companies from different databases and calling them. I would as well place advertisements to field specific publications (Yellow pages) and would send brochures with offers for the potential customers. The cost would be deducted later, therefore a tailored contract with a major telephone operator would come handy require if it is possible, but either way a large amount of money from the initial capital should be used for this purpose.
Indirect marketing
By time the company’s reputation may grow and the word of mouth will dominate the marketing of the company.
Starting Up Requirements
Start up expenses
Research and development costs. Market research will cost time and money, but it is the most important of all. I would consider hiring a professional research firm, which would raise the expenses, but would result in a deeper analysis at the end when I compare it with my results.
Business Plan Preparation. Business plan should be reconsidered every time when research brings up something unexpected, and it would take time, therefore I have to be careful not to narrow my businesses way too much, trying to achieve a specialized unique company.
Service Specification. The offered services have to be set and well defined. Takes time.
Advertising and Marketing Promotion Expenses. These are the highest expanses.
Cost of Financing. Some interest rate in Finland can be deducted from the tax, and I’m going to use all of these opportunities, but for the start I will not take loans. Loans will be taken if the business needs to take the second step and grow bigger. Initial calculations revealed that in the form of Sole Proprietorship a capital of 8000€ and a minimum of 500€ monthly business start up benefit would ensure the stability of the business for the first 6 months.
Fixtures and Equipment. Since basically it is a home business it require little in terms of fixtures and equipment. Computers, fax machines, modems are some of the most important equipment that I would need. In addition, I provide some budget for the costs of installing all the fixtures and equipment and making sure that these are ready for use.
Lease Payments. These include amounts that must be paid for equipment and facility leases before opening. I expect to pay several months' worth of lease payments even before I open my business.
Licenses and Permits. This amount will include all fees charged by the local agencies, but in this particular segment I need more research.
Professional Fees. I will probably need the assistance of lawyer a before I start officially anything. It is never wasting money to ensure that everything is legally correct.
Unanticipated expenses. I will allocate about 10 percent of my total start up budget for unexpected expenses.
The way forward
How long it takes to make my business up and running?
Approximately 1 or 2 months preparing will be enough to make everything ready.
How long can I manage in case of 0 profit?
According to this Business Plan I can manage it for a maximum of 12 months. With no income I would rely on my wives earning, but it would be enough with my savings (not related to the savings I use for the company) for approximately a year.
Cash flow, Book keeping and perspectives
First I would manage these by myself with the help of ‘Microsoft Accounting’ and ‘Microsoft Money Plus’ programs. By time my business would grow I would hire professionals for it and I would transform my business to Oy – osakeyhtiö (≈private company limited by shares).
