Business plan
Order Description
Description and Assessment Criteria
Aim:To research and convey your business idea in report form to convince your board of directors of your organisation/ or potential investors.
Task:
Once you have chosen a business idea you need to write an individual business plan. There is no set format for this but it typically should:
•
• A short format business plan, containing clear objectives, strategy, action programmes and financial projections (TWO YEARS’ Profit & Loss monthly, ditto CASH FLOW quarterly and a clearly worked out break-even calculation, plus a CAPITAL REQUIREMENTS PLAN showing main capital purchases and also clearly identifying sources of finance).
• Clearly describe the product/service and its unique selling proposition (USP)
Justify its uniqueness through a preliminary data search and competitor analysis
• Determine market attractiveness e.g. market size and potential growth through identification of potential customers, market trends
• Determine business strategy with a clear route to commercialisation e.g. technical development, licensing of intellectual property, marketing and implementing
• Identify potential risks and how they will be managed
• Justify expenditure for running the event, equipment and running costs
• Describe key operational requirements e.g. premises, IT and management systems, quality requirements
• Demonstrate credibility of management team
• Demonstrate financial rewards and loan requirements for potential investors
Guidance on writing:
• Indicative word count: 2,500 words (does not include appendices)
• The style of the report short be ‘short and sharp’ and aimed at the business community rather than ‘essay’ style
Please produce the business plan for the following product:
“-The Pitch:
This product presented is a filter that is used in the kitchen called “SPWOIL” (Separating water and oil). Recently, there has been fat and oil blockage in the UK due to the oils and fats being thrown down the kitchen sinks. “a toxic 15-tonne ball of congealed fat the size of a bus that came close to turning parts of the London borough of Kingston upon Thames into a cesspit.” “”fatberg” of solidified grease and oil blocking 95% of the 2.4 metre diameter brick sewer pipe.” Moreover, this product would be installed somewhere under the kitchen sink. This would block the oil and fat, therefore separating it from the water going down the drains. This would lead to the government saving millions. This may lead to a law being passed which requires households to have such a filter.
-The market and its needs:
My product is trying to solve the problem of sewer blockages that are caused by fat and oils thrown down the sink. This product would be on demand by both the government and individuals who want to help conserve their environment. The target consumers are the general public, mainly adults who are aware of what is happening in the world and the government. As the results of something worse then what recently happened may be disastrous. In a way as many people in the UK recycle, using the filter could be seen as another means of recycling as it is helping preserve the environment we are in. Therefore there would be a large market of potential consumers. Moreover, the product would be first installed into the kitchen pipes. From then on, the user of the kitchen would open the filter and replace it with a new clean one. This clearly defines the need and requirement of the product in every household in the UK because of the importance and the greater impact that it has in return.
This product is quite necessary to reduce costs on sending people down the sewers to clean the blockages. Therefore couldn’t be enforced on households. Moreover due to helping the environment and preserving it, many people would be interested in buying such a product, as it is ethical and environmentally friendly.
-The product/service:
This product will satisfy the government and the publics need of support to help resolve the problem of the sewage blocking. The products unique selling point is that it is faster, safer and cheaper to use then sending people down the sewers to clean up. Moreover, as this filter is uniquely made to separate the oils from the water in the kitchen skins; a patient would be used to prevent others such as manufacturers from producing such a filter. This is an attractive product for the government too because of the awareness that it raises towards the constant concern of sewer blockages.
-Competitors:
There is no current competitor to this market. As of recent events, a problem with the sewers being blocked led to the need of a resolution. One of which could be seen in other ways for the long run, as using a filter to help prevent and more sewer blockages. The government is mainly dependent of the people that are being sent down to clean the sewers for weeks on end. Additionally, customers would choose my product, as it is the safer and preferred solution. It would also be the cheaper option for the government as an alternative to cleaning constant sewer blockages.
-Market entry strategy:
At first, the business will attend any exhibitions as events around in London in order to create an image for the brand and product as well as raising an awareness to the problem that its trying to solve. After doing so, the business will approach companies such as Thames Water to pitch the produce to them to see if they’re interested and may want to place an order. This will be the first customer of the business to start with and obtaining this relationship with such a well-known business can really help boost our brand trustworthiness. The business will then approach similar companies such as Anglian Water and Southern Water in order to negotiate a deal. Below is a list of some of the main milestones:
Manufacture Product
Test Prototypes
Improve If Needed To
Attend Exhibitions (brand awareness)
Start Mass Production
Negotiate with Thames Water
Dispatch Order
Negotiate with Southern Water and Anglian Water
Dispatch Order
The first milestone would be manufacturing the product. Then comes the process of testing the prototypes and if needed to improve on them. Moreover, when the product has passed testing. Exhibitions would be attended to help strengthen the product and brand name. Furthermore, after negotiations with Thames Water, Southern Waters and Anglian Waters the product would go into mass production to dispatch orders.”