Ensuring customer satisfaction as our business is was chosen so we could give the best service possible for the lowest possible cost. This will be achieved by receiving, reading and acting upon customer feedback.
Becoming an international company, as aforementioned, will make our services available to many more customers.
Partnering with an airline is vital as the business will be able to operate abroad with contact abroad, and with package holidays being offered, it will be even easier for customers to interact with the business
Date to Start Trading:
April 2010
Nature of Business:
Our business is a company in the automotive industry that offers car rentals to customers, as well as insurance and car washes. We plan to start trading by as soon as April 2010 and hopefully, by 2012 we will be based in Spain and have a large customer base in Europe.
How and where the service will be provided:
Our service will operate outside of our registered address, beginning with two workers only, but slowly growing into a larger scale business. We will first operate in Saddleworth, where the business is based
Marketing:
Marketing is where we will attempt to get the company well known. It will be based on physical adverts, such as posters and leaflets. We will also advertise digitally, but only when the business is stable, by using adverts on the Internet/TV, offers and newsletters across Saddleworth. These will be produced at our local school, who has offered us a deal with paper supplies. We will give a series of assemblies to the children here, who will hopefully refer us to their parents. We will follow the four P’s of marketing, which will hopefully help us reach the correct market.
How will finance be obtained to start your business?:
I will get a sustainable amount of money from a loan from the bank, and I will get any more required money from friends, family and shareholders. I will only get money from a bank that is financially, as I do not want to get into financial danger with the business. I will begin to pay it back at the end of the 2011 year as the business will probably be stable and financially secure by then.
Barclays: Barclays is my first choice for a loan as they are secure and will hopefully not go into liquidation during my operations with them. If they are not willing to give a loan, I will go to their competition.
Family: Since my business partner’s and my family cannot supply the full amount of money required, they will pay only a small part toward the business
Shareholders and Friends: Both of these are very good sources of finance, but they are not completely reliable. Shareholders need not be repaid, meanwhile, as they already have shares in the company.
Venture Capitalists: Venture Capitalists are a great source of money as you only have to pay them back in shares. They should be safe as they are giving you money first, in return for the shares in the business, which will only be worth a substantial amount when the business is successful.
Projected sales, costs and profit:
Variable Costs
Merchandise
We plan to make all our merchandise on site, but in total, the cost for materials and the cost operating the machines will be around £10 per product, and we aim to sell all 40 of these. The total cost per annum should be (40 x 10) £400.
Purchasing Cars
In the first year, we will buy £50,000 worth of cars.
The total variable costs for the fiscal year are (400 + 50,000) £50,400.
Fixed Costs
Fuel
The fuel tank of each car comes with half a full tank, and they cost approximately £50 per full tank. Therefore, the total costs of fuel for the year will be ([50 / 2] x 250) £6,250.
Staff
The staff has a wage of £5 per hour, applicable on all days. There are 4 staff members working at any one time. Therefore, the wage for staff per hour will be (4 x 5) £20. We will be open from 0800-1600 all week, so the cost per day is £160. Therefore, the cost per week for staffing is (160 x 7) £1,120. The total cost per annum for staffing wages is (1120 x 52) £58,240.
Building Rental
The building costs £2,000 for 2 blocks per annum to rent.
The total fixed costs of the fiscal year are (6,250 + 58,240 + 2000) £66,490.
The total costs for the 2010-11 Fiscal Year is
(50,400 + 6,640)
£57,040.
Sales
Cars
We aim to rent out at 8 cars each month, with the price of a car per day being on average £250, and the average length of rental predicted to be 7 days.
Therefore, the average money gained per customer will be (250 x 7) £1750 and the average predicted money gained for the first month will (1750 x 8) £14,000. The average predicted revenue gained for the first year will be (14000 x 12) £168,000.
Our projected total profits for the Fiscal Year 2010-11 are predicted to be
(168,000 – 56,890)
£11,110
