Business Plan 2013
Shana Raghoebier, Lesley de Bie, Guylene van de Veer, Romy
Matharoo, Manuela Bck, Brent Heiner, Anton Georgiev, Youri Hommen,
Ting Ko, Aashna Lal, Nancy Vosveld, Can Guden, Romario
Uneputty.
Executive summary
Enlightment was founded in 2012 and created by young
entrepreneurs. Enlightment sells a bag light; this baglight is a
light you can place easily in your bag. With no stray light
escaping to bother anyone else, this will provide the owners of the
bag to easily find their belongings in their bag.Especially at
night when you cannot easily find your keys the baglight will
help.The market research has shown that mostly people from
seventeen to forty would like to purchase Enlightments product and
the majority of them were female and also seventy percent thought
the baglight would be useful and have the problem that they cannot
find their belongings quickly.Enlightment is the only company right
now on the Dutch market who wants to sell the baglight. Ofcourse
there are other subsitutes to bright up your bag, for example the
mobile phone but that is not as convenient as the baglight. The
company, nevertheless, considers the mobile phone as a threat
because of the fast growing electronic market.However, with a
unique market position strategy and differentiation strategy
Enlightment is able to succeed within its target market.
Enlightments marketing strategy is that the baglight is the only
versatile, convenient, innovative bag light in the market. Our
market strategy will focus on being an easy and simple gadget,
which is simple to use. It will please the companys customers and
make their life more convenient.Services will be provided with
thirtheen employees of different cultural backgrounds who are based
in different departments. They all, however, have selling and
marketing skills which is invaluable when Enlightment starts
selling its product. The companys CEOs are Lesley de Bie together
with Shana Raghoebier, they will ensure that the company is a good
running business. The four managers, Guylene van de Veer as the
Market and Sales, Anton Georgiev as the Financial manager, Aashna
Lal as the Human Resource and Can Guden as the Production manager
make sure that their departments are running successfully.The
capital required of Enlightment is 960. For Enlightment to make
profit it is necessary to sell 400 products because the profit per
share will be 15,18. This is on top of the inserted 20.The company
already has a number of potential customers who would like to buy
the baglight. Enlightment aims to promote its product through
social contacts, flyers and the companys website which provides
potential customers with information about the product.
Enlightment, furthermore, seeks advantage of social media and the
possibility to send e-mails to a larger number of people at once in
order to advertise its product. Moreover, is a video commercial in
planning.
Mission & Vision
Many women carry a bag all day long, even at night. Mostly bags
are filled with a lot of everyday commodities what results in the
fact that it is almost impossible to find anything. Imagine a lady
walking to her car at night in a scary neighborhood, she is trying
to find her keys as quick as possible, but the inside of her bag is
too dark, she cant see anything. Those moments are terrifying for
every woman. These kinds of things happen daily but Enlightment
doesnt want to fight crime; no we want that the lady who wants to
get something out of her bag can do that with ease. However there
never was a handy and useful solution, until now.
Our mission is: to save precious time and life of women to make
a difference for women, where they see there purse in a different
light. to make women feel special
Our vision is:Safety for women: No more standing outside, while
searching in your bag and avoid cramped situations.Awareness:
Providing all women with information regarding our product.Profit:
Maximize profit per share for shareholders.Efficiency: Work
efficient and effective to increase customer satisfaction.
Contents
Executive summary1Mission & Vision2
1. Production41.1 Technical features41.2 Purchasing41.3
Delivery41.4 Stock management41.5 Conclusion52. Marketing &
Sales62.1 Marketing objectives62.2 Markets62.3 Competition62.4
Distribution72.5 Positioning72.6 Added Value72.7 Quantative
goal72.8 Promotional budget72.9 SWOT analysis82.10 Conclusion83.
Financial Projections93.1 Variable cost and fixed cost
calculation93.2 Departmental budgets93.3 Minimum selling price93.4
Possible scenario93.5 Break-even analysis103.6 Projected financial
statements103.7 Projected profit per share scenarios 113.8
Conclusion114. Human Resource124.1 Organizational structure124.2
Team and organization12Conclusion13Appendices14
Eco-friendly silicone bag light
Product height(3.5+18.5)*2*0.8cm
MaterialRubber+Led
Packing1PC/BOX
Logo on packingOnly if MOQ is >5000 pieces
Logo on productOnly if MOQ is >5000 pieces
1. Production
1.1 Technical featuresThe handbag light is a very handy and
compact light that grants vision in any bag that is used to put it
into. The light panel LED bag light is a completely new way to use
light for searching through a bag when there is no sufficient light
or if it is too dark. The bag-light can be attached to the bag as
shown in picture A.1.1. With no stray light escaping to bother
anyone it is designed especially for finding things in a bag.
1.2 PurchasingEco-friendly silicone bag light
PriceUSD$ 1.13 per piece / 0.87 per piece
Minimum Quantity Order300 Pieces
Delivery time3-5 days
Light SourceLED
Certificate StandardRoHS, SGS, Reach38, GZMR, LFGB, FDA
Power GenerationButton
ColorAny color available
MaterialSilicone
Power SourceButton Cell
Install MethodClip used to attach the product to the bag
LED Life50.000 h
1.3 DeliveryThe suppliers offers us to ship the goods with TNT,
UPS, FEDEX, DHL and so on. The one thing that could be a risk were
the products itself. The shipping terms were free on board. Which
means, from the moment the products arrived at the boat, the
products were our responsibility.Fortunately, the products arrived
safely , after having intense contact with the supplier.
1.4 Stock managementThe stock is stored at the residence of the
production manager. In this way we will save money on storage
costs, and the production manager can keep track on the
products.The products are partly divided within our company for
personal selling, and we will write two receipt per transaction.
One for the customer and one for our company, so that we can keep
track on our sell.We will keep track on the inventory by using a
inventory manager from the internet.
1.5 ConclusionBy following this business plan and choosing the
best supplier Enlightment will have great opportunities. The
biggest opportunity that Enlightment has is to introduce a new
product to the Dutch market, as it is not being sold in the
Netherlands yet. Enlightment has chosen the best supplier who can
provide us with the best quality and price, which is Yongfeng
silicone rubber products. The production manager will be keeping
track of the stocks. They will also stay at the managers residence.
Enlightment has designed an receipt, for customers who buy our
product. But also to double check Enlightments stocks. Enlightment
also equally divide all the tasks within our department. So that
every person knows what to do and when it needs to be done.
2. Marketing & Sales
2.1 Marketing objectivesThe objectives of the marketing plan are
centered on 2 main criteria: To create consumer awareness towards
the baglight Create 400 sales by mid April 2013
2.2 MarketsOur product is new and therefor the market suitable
for us isnt clearly outlined, what creates loads of opportunities,
in this way Enlightment can outline our wanted customer (women
17-40 years) and create a market suitable for our customer. The
best way for doing that is by promoting our product in ways that
link with our customers the most, for example social media (women
focused), flyers etc. and adapting our product to the needs and
wants of the customer.
In this Enlightment can build up our brand awareness, and also
by working with a charity (Dance4life), the brand value is
increased. Therefor people want to spend more on our product, and
customers will have an extra reason to buy from us.
In the two surveys done by Enlightment it shows that 80% of the
first survey and 30% of the consumers are willing to pay 5 10 for
the product. This is why the competitive price of 5,99 was chosen
for the product.
2.3 CompetitionEnlightment is introducing a new product.
Therefor our competition isnt clearly outlined, in the market
Enlightment is in. Enlightment sees a threat in mobile phones, as
they have a flash, or the mini flashlight that you can use as a
keychain. However these are all secured with items mostly to find
in your handbag, and our product is secured to your handbag and
therefor you dont need to find your phone or keys first, you can
just take an easy look by pushing on the light.
2.4 DistributionThe fact that Enlightment is a student company
and our product is temporarily being sold holds us back in setting
up a definitive selling point. Therefor Enlightment choose to sell
to personal contacts, market fairs, and sole proprietorship retail
stores. In this way Enlightment can still have a broad market, as
our company exist of 13 individuals spread over Holland and
abroad.
2.5 PositioningAs Enlightment is a starting business, our
position is not clearly defined yet. However the position
Enlightment desires is a low-cost position but due to high sales
profitable. I think a good comparison is for example the market of
covers for phones and tablets. They are cheap, but necessary and
they come in all different shapes and colors. Enlightment thinks
that our product is best positioned in the same area as those
products.
2.6 Added valueEnlightment adds value to its product by working
togheter with Dance4 life. It is an organization that makes young
people aware of the risk of HIV and Aids and the prevention of it.
They operate in several ways but mainly through dancing for example
they give dance classes in South Africa. The companys connection to
Dance for Life is that it will promote this organization and donate
a percentage of its turnover to them.
2.7 Quantitative goalsTo make our business a profitable one,
Enlightment has set up some goals, which cover the cost and best
scenario, a worthy profit. To accomplish that, 2 units need to be
sold; each unit exists of 200 pieces, what brings us to the total
of 400 pieces. The active selling period is from February till May,
in this period Enlightment is obligated to sell 400 pieces. This is
a challenging goal but very reachable, if the plan and time line is
strictly followed.2.8 Promotional budgetThe promotional budget on
which the company operates is going to be outlined in the following
part. Due to the fact that Enlightment is a student company
promotional cost need to be kept as low as possible. Through
extensive research this has been realized. The cost of the flyers
are 35 for 1250 and 69 for 10.000. The cost for online advertising
are kept at 27 as all the work related to it is done by company
members who are specialized in media. Together with the unexpected
cost of 18 and the cost of the flyers if Enlightment choose 10.000
the promotional budget is 115.
2.9 SWOT analysisStrengths:1. Student company: We are a young
company and understand the trends in this ever changing market.2.
Innovative product: The baglight combines a small light source with
the addition of a cord which can be easily attached to the bag of
choice.3. Convenience: The product solves the problem of not
finding the desired item within the bag.
Weaknesses1. No real distribution channel: There is no physical
distribution point for the product.2. Inexperienced: Enlightment is
new to this market, therefore there could be some starting
problems.3. Limited extra features: In the end it is just a
lightOpportunities1. Limited direct competitor with the focus on
bags: There are a limited amount of direct competitors marketing
their lights specific for in the use of bags within the Dutch
market. Enlightment can take advantage of that.Threats1. Several
different substitute products: There are products that can be used
as substitutes i.e. mobile phones that everybody has.
2.10 ConclusionOrganizations at this time are extremely
sensitive to demographic, political, technological and economic
developments. With the help of our and outside surveys Enlightment
has found the perfect consumer market. Analyzing the competitors
has proven that Enlightment stands strong in the market.This has
led the company to creating a strategy to create product awareness
and to eventually capture the value of the consumer. With the
research done Enlightment can conclude that the company is able to
reach the target market and to reach the companys sales
targets.
Financial projections
During the research, a lot of information has been gathered. Our
product the Baglight is thoroughly examined by our financial team
to search for the best selling price and the most profitable
scenario.
3.1 Variable cost and fixed cost calculationThe variable costs:
The cost price per product is 1,09. We have already purchased 400
products. That means those variable costs are equal to 433,95.The
fixed costs: The fixed costs include the budgets of the
departments, the salaries, bank account expenses and possible
miscellanies. In 3.2 the departmental budgets are furthermore
explained.
3.2 Departmental budgetsMarketing department HR department
Flyers 70 Invitations and flyers 10
E-advertisement 27 Shareholders meeting 20
Miscellaneous 18 Miscellaneous 20
Total 115 Total 50
Financial department Production department
Miscellaneous 25 Miscellaneous 20
Total 25 Total 20
3.3 Minimum selling priceThe financial department based there
research on a total amount of 400 products that will be sold. With
this total amount of products the financial department calculated
the cost price per product excluding the VAT and the cost price per
product including VAT. As you can see the cost price per product is
3, 15 excluding VAT and 3, 81 including VAT.Cost price (excl. VAT)
3,15 Valued added Tax = 21 % Cost price (incl. VAT) 3,81
3.4 Possible scenarioEnlightment chose a selling price of 5,99
including VAT of 4,95 excluding VAT. Below you can see table
showing the costs, shares required, turnover, earnings before
income tax, net margins and earnings per share for different
scenarios based on the different order quantity of products. We
chose the scenario with purchase order of 400 pieces and we already
have a start-up capital of 960.ProductsFixed costsTotal
costsTurnover excluding VATShares requiredEBIT Net
ProfitNetmarginEPS
200 600,00 816,98 990,0026 173,03 133,23
250 600,00 871,22 1 237,5029 366,28 282,0422,79% 5,88
300 600,00 925,46 1 485,0031 559,54 430,8429,01% 8,98
350 600,00 979,71 1 732,5034 752,79 579,6533,46% 12,08
400 600,00 1 033,95 1 980,0037 946,05 728,4636,79% 15,18
450 600,00 1 088,19 2 227,50391139,31 877,2739,38% 18,28
3.5 Break-even analysisThe break-even analysis shows that the
company has to sell 156 products at a price of 5.99. In this
scenario you can see that the break-even point is achievable. That
means that our fixed costs have been covered. After this point it
is possible to change the price.
3.6 Projected financial statementsThe projected financial
statements will provide you with the information from the first
semester, the second semester and the whole year. In the first
semester the company is not going to sell, it is just purchasing
the products. This is why the company makes a loss in the first
semester. In the second semester we assume that the company will
sell all of its products, based on this assumption the company will
gain 1980 in revenues. Enlightment company
Consolidated Statement of Income
Semester 1At the end of Semester 2The Year
Net revenues (excl. VAT) - 1980 1980
Cost of revenues - 433.95 433.95
Gross margin - 1546,05 1546,05
Operating expenses
Production expense - 20 20.00
Marketing expense 37.47 77,53 115.00
Financial expense - 25, 25.00
HR expense 50 50.00
Bank - 20 20.00
Miscellaneous 2.05 70 70
Wages expense 300.00 300.00
Total operating expenses 39,79 560,21 600
EBIT 985,84 946,05
Corp.Tax 23 % - 226,74 217,59
Net income/loss - 39,79 759,1 728,46
Enlightment company
Share holder's equity
Semester 1Semester 2 at the end of sellsThe year
Beginig capital - 920,21 -
Investment by shares 960.00 960.00
Net income /loss -39,79 759,1 728,46
End Capital 920,21 1679,31 1688,46
3.7 Projected profit per share scenariosIn this table you can
see the profits per share (EPS) for different selling prices all
excluding VAT and quantity of ordered products. We chose the
scenario with a price of 4,95.Profit per share scenario 1:Selling
price is 4Profit per share scenario 2:Selling price is 4,95Profit
per share scenario 3:Selling price is 6
Products250EPS 2,17
300 4.40
350 6,74
400 9,08
Products EPS
250 5,88
300 8,98
350 12,08
400 15,18
ProductsEPS
250 10,09
300 14,03
350 17,97
400 21,91
3.8 ConclusionOur breakeven comes at 156 sales. After that we
can alter the price. We are confident that will reach the break
even. The contribution margin from every next sold product will be
an addition to our profit. Overall our startup capital was 960 or
in other words 48 sold shares. Each employee has sold 3 shares. We
purchased 400 bag lights at a price of 1, 09 apiece in total 433,
95. We chose the selling price of 5, 99 including VAT or 4, 95
excluding VAT because at that price if sell all 400 products we
will make net profit of 728, 46 and will cover all our costs.
4 Human Resource
4.1 Organizational structure
4.2 Team and organizationOur company consists of thirteen
employees from different countries and cultural backgrounds.
Therefore the individual expectations of the employees may vary,
making this business both challenging and exciting. The main focus
within the HR department lays on communication, because good
communication is the key to a well-functioning organization.
Communication also ensures that the work is submitted in time,
allowing for employees to both support and check each others
progress on the tasks. This also ensures that the work is done in
an ethically responsible way. In a company it is necessary to have
a good arranged communication and organization structure so that
tasks can be done efficiently and efficiently in addition all
business goals can be met.
Another important goal is that thoughts can be shared without
fear of punishment; it is important for every employee to be heard.
Effective communication can be challenging. The company points out
that there is no limit of understanding others and what
communication is about. Should any employee be afraid of voicing
their opinion, it is highly recommended to consult the Human
Resource Department. The Human Resource Department has to develop
good listening and dialogue skills, because they are an important
part of this organization. The company defines good communication
in the art of actively listening, asking, understanding and
reacting.To ensure good internal communication the company will
have regular meetings. There will be three kinds of meetings: the
CEO and managers meeting, the managers and staff meetings and
general company meetings. Giving information and getting feedback
will be the focus.
Conclusion
Like it was stated in the introduction, this product is
revolutionary. It is new, it is smart and it has a great
sustainability. There are multiple suppliers to contact and the
company has a great market to introduce its product. Enlightment is
going to introduce a product to the Netherlands which they never
heard of.
As a selling company Enlightment stands strong in the market.
There are some competitors but they will not be a big threat to the
companys product or its market position. With a good market
strategy people can be made aware of the baglight. As soon as the
consumers are aware of the Baglight the selling will go smoothly,
especially because the product feeds the curiosity of its
consumers. The research that has been done by the Market Department
shows that Enlightment is able to reach out to our target market
and with that reach our sales targets. The sales target is hundred
forty-three pieces, that is the break-even point when the retail
price is 5,99. Enlightment chose this retail price to cover its
costs and to be able to make profit.
As a startup capital about 960 are needed, if a purchase of four
hundred products is made. This indicates that thirty-seven shares
were needed. This was not a problem. The company has thirteen
employees, when every employee sells three shares the company will
have thirty-nine shares, which is enough to cover all the costs.Of
course Enlightments goal is not to cover up its costs and expenses;
it wants to make a profit. When the company is able to sell all the
four hundred products it can make a net profit of 728,46.
Englightments quest to find the best quality for its customers
will never end. Enlightment will never stop improving their product
and we never stop to look for more quality, because quality
brightens up your world!
AppendicesAppendix A: Product questionnaire by enlightment 2012
Survey EnlightmentParticipants: 170
Options:Reactions:
What is your gender?Male28,0%
Female72,0%
What is your age?504,0%
Do you think a light in your bag would be useful?Yes71,0%
No29,0%
Would you consider purchasing this product?Yes57,0%
No43,0%
How often do you visit clubs or bars? 1 for never, 5 for very
often116,0%
230,0%
333,0%
412,0%
519,0%
How much would you spend on this product?3,0%
Would you pay more for a designer bag light?Yes21,0%
No79,0%
Appendix B: Global: Look at the following statements and tick
all that apply, by gender % respondents ticking
