Appendix 1: sales brochures 14
Appendix 2: proprietors CVs 15
BUSINESS and OBJECTIVES
NAME
ADDRESS
LEGAL STATUS
BUSINESS
START DATE
MISSION STATEMENT
SHORT-TERM OBJECTIVES
LONG-TERM OBJECTIVES
PERSONNEL
Key Personnel
Other personnel
MARKETING PLAN
Product
Say here what your product is
Give details of flavours, fragrances, and shapes etc – general specifications
What the prices are
The product specifications and price have bee arrive at following market research
Say where and how you researched the market
Questionnaires sent to????
A copy of the sales brochure, etc is in appendix 1
The Market
Who are the customers?
What sales do you expect?
Where will you sell?
What market % do you expect?
The Competition
Who are the nearest competitors?
What do they have – good points – bad points
What do you have that they don’t (competitive advantage?)
We are a small company which means we are able to offer a more ‘personal’ service to our customers.
Promotion
Promotion is by way of
Monthly advertising in the hi-fi magazines
Mail shots to existing suppliers (quarterly from January)
Purchase of product – related mailing lists (January)
Sending the speakers for review to the hi-fi magazines
Distribution and Sales
Distribution of the speaker units is in sealed cartons direct to hi-fi retailers and mail order houses. No wholesaler is involved.
Sonic Deco limited is purchasing a van for local and urgent deliveries. It is also has a contract with a carrier, speed direct, which offers a 24 hour and three day delivery service within the UK.
Marketing Budget
In the first twelve months the marketing budget has been estimate at
- Advertising costs in magazines
- Mailing
- Purchase of mailing lists
- Postages related to mailings
In addition, £ has been budgeted for postage and delivery costs
Sales Projections
Expected turnover for the first 12 months, based on the sale of ??? Units £???
Sales break-even figures:
£???? (Total overheads) X 100 = £
Gross profit margin
Sale of units needed for break-even = ???
This company is confident of achieving this level of sales (72% of annual projected sales) in view of the existing good name of the speakers and the current demand shown in the order books.
PRODUCTION PLAN
Production
How will you manufacture your product?
Use the recipes
Quality assurance issues
How will they be packed and where
How will the units be dispatched and from where (where sold)
The two directors and a clerical assistant will administer the business from the premises. An office will be set up on the premises.
All Health and Safety at Work conditions will be met.
Premises
Machinery
Vehicle
Raw Materials
Labour Costs
Quality Control
Strict quality control procedures are at present in operation for materials purchased for finished products in respect of physical finish and sound reproduction.
Sonic deco is at present investigating its overall systems with a view to application for Quality Assurance registration through BS EN ISN 9000
RESOURCES REQUIREMENTS
Resources required
Financial Requirements
- Commercial mortgage with annual repayments of capital and interest requested
- Business loan with first year interest only repayments requested
MONITORING OF FINANCIAL RESULTS
Cash Flow Forecast (say what yours shows
Monthly figures will be recorded and compared with forecast figures and inspected by the directors.
If results fluctuate significantly the situation will be investigated and the forecast redrafted.
Profit and Loss Statement (say what yours shows)
Monthly figures will be extracted from the computer system and compared with the projected monthly equivalent form the forecast.
Year-to-date figures will also be calculated and compared with the forecast. The directors will investigate significant adverse and positive trends and take action accordingly.
All monitored figures will be supplied to a lender on request.
Use ratio analysis eg:
Gross profit margin
Net profit margin
ROCE
Breakeven analysis
AVCE Business Plan Unit 6