Business Plan Development Project

PLEASE SEE ATTACHED. 

Business Plan Development Project

Part 2

Task: Development of Business Plan Components for a Web-based Business

Continue with the Business Plan

. Competitive Positioning

Complete the Competitive positioning table. Describe each aspect in minimum 1 to 3 sentences. Note:. Listing or describing in few words for aspects that are applicable – will be accepted. You need to have at least two Competitors in the table.

-Competitive Positioning Table

2. Milestones and Action Plan

Complete the Milestone and Action Plan table. You need to have at least one Milestone and at least 3 actions for it. Explain each aspect (Milestones, Action Plan #1, #2, #3) in of 1 to 3 sentences.

-Milestone 1

Due date

3. Financial Plan

Complete the Profit and Loss Mini-budget table. On the expenses you can show expenses for minimum of 5 areas (you can choose from the list shown in the table).

-Mini-Budget Table

EXAMPLE OF FINANCIAL PLAN:

Financial Plan

Assumptions Metrics:

Selling Price (SP), Offering 1

Cost of Goods Sold (COGS), Offering 1

$0

Average Sales Cycle Time (in months)

0

1

Month 0

Month 1

Month 2

Month 3

Total

Unit Sales, Offering 1

0

Total Sales (SP * Unit Sales), Offering 1

$0

COGS, Offering 1

$0

Gross Profit, Offering 1

$0

$3,000

Expenses:

Public Relations

$0

$50

Advertising

$100

Marketing

$0

$250

$300

$350

Website

$50

$50

$50

Shipping

$0

$200

$300

Total Expenses

Profit (or Loss)

TERM PROJECT
part 2

Competitive Positioning

■ A well-done competitor table succinctly portrays a value proposition offering relative

to your competition in tabular form.

■ Competitor table lays out the decision-making process of the customer among

competitor.

– Write like a customer

■ Who are your competitors? No competitor?

– Internet search, North American Industry Classification System, industry

associations, etc.

■ It should get updated and referenced often.

Competitive Offering
Your Business

(Type here)

Competitor #1

Home Depot Garden

Center

Competitor #2

Wildcat Garden Center

Value Proposition
Native, distinctive, and

uncommon plants, trees and

shrubs

Lowest prices for the most

common mass-market

plants and materials

One-stop shopping for all

your garden center needs

Geographic area server
7-mile radius of single location

with mobile outreach

10-mile radius of multiple

locations

5-mile radius of single

location

Core products or services

Locally grown green goods,

glowers, plants trees and

shrubs, and premium

accessories

Name-brand discounted

flowers, nursery stock,

garden tools, greenhouses,

planters, water, and

accessories

Everything from plants to

pots, chemicals, accessories

and more

Value-added offering

Landscape architecture design,

sourcing perfect plants, in-

house delivery, installation,

education events

Installation, low-prices sales,

project how-to-guides for do-

it-yourselfers, e-commerce

Store-owned delivery,

category event sales, private

consultations

Pricing strategy

Premium price for a premium

product to premium

customers, 50% gross margin

minimum

Name brands at low prices

Event sales, prices within

20% of Home Depot’s for

overlap, 45% gross margin

pricing on all other products

Café? No No No

Milestones

■ A good business plan provides a guide, like a road map, for you to reference when

you need one.

– Talk to your customers first before you write any business plan.

■ Milestones represent significant events in the life of a business

– It can be used to check whether your business is on the right track.

■ How can we possibly predict what our business will be doing 90 days from now, or

one, three or even five years from now?

■ We need the

milestones

to happen.

– Action plans and items

Milestones

■ Three elements

– A significant business event, a deliverable date, and a measurable description

of the business event.

■ What are some classic milestones in business?

– Completing the product or service prototype for customer testing.

– Hiring the first employee

– Obtaining the first sales order

– Receiving your first customer payment

– Paying back your investors

Milestones

■ With the proper level of sandbagging

built into your milestone, you can

reduce uncertainty and myriad

business risks.

– You do not want to create future

business millstones that you

cannot achieve because they

might also be used as weapons

against you.

■ Action plan and action items for the

milestones

Mini Budget

■ Recording the early customer financial transactions is the most important part of

the budget process.

– We ignore most expenses for now, except for those that enable us to achieve

the first customer transaction.

■ Mini budget is a major cornerstone for your business model, and we will see how it

naturally folds into a more complete profit-and-loss budget.

Mini Budget

■ Selling price: the price at which something is offered for sale.

– Market-based method: based on your competitors’ selling prices.

– Mark-up method: establishing a selling prices based on all known costs.

■ Cost of goods sold: the direct costs attributable to the production of the goods sold

by a company.

– This amount includes the cost of the materials, direct labor costs, packaging

costs, inland freight, etc.

– For service goods, costs related to employee training, travel, and printed

materials should be considered.

Mini Budget

■ Average sales cycle time/customer acquisition time

– How many days will it take you to acquire your first customer?

– You will need to estimate and later refine your average sales cycle time as a key
business model performance indicator.

■ Add (#) of days from first contact to customer conversion for all deals = Total (#) of days
for all sales combined

■ Total (#) of days for all sales combined / (#) of deals = (#) of days for Average Sales
Cycle. E.g., 20 days / 50 transactions = 0.4 day.

■ Unit sales forecast

– How many units of your offering you can sell in your average sales cycle time?

– How many customers can you approach in one month?

Mini Budget (an example of Aruba)

■ Aruba’s snorkeling business example

– 2.25 trips per day (0.25 from the night snorkeling.)

– Two vans seating five people each on average. The second van breaks down a

lot.

■ Unit sale forecast by month.

– 30 days * 2.25 snorkeling event per day * 1.25 vans * 5 people per van *

0.65 average van capacity

– 274 average snorkeling unit sales per month.

Mini Budget

Question?

2

Business Plan Development
Term Project – Part 1

Isabella Petrafeza

January 22, 2023

1. Business Description

a.
Business name: BFIT

b.
What type of business? BFIT is an online platform via an app. The app will enable users to exercise at any time of the day, wherever they are. There will not only be guides, but visual recordings as well of all exercises. Users will be able to choose the length of the workout and what muscle they want to focus on. The only equipment needed is resistance bands a set of dumbbells.

c.
Vision statement: “Look good, feel good, do good – it all starts with YOU”

d.
Mission statement: To allow all ages and stages to stay fit and consistent no matter where they are in life.

2. Value Proposition

Need: Individuals, especially those working in offices, have little time to take part in physical exercise. They find it hard to plan and create time to visit settings such as gyms or attend clubs to get an opportunity to participate in the exercise. However, BFIT offers a chance to overcome these barriers. BFIT, as an online platform application, enables users to exercise at any time of the day, wherever they are. The tool will guide them and offer visual recordings of their heart rates, activities, and physical fitness. The program will give the users a chance to choose the length of workout and the muscle they prefer to focus on.

Solution: Success in physical activity and exercise requires knowing essential vitals. The proposed program helps individuals monitor their physical fitness, activities, and heart rate. This gives an opportunity of making the necessary adjustment in case the exercise is not beneficial.

Product/Services Feature: BFIT is an online platform via an application. It offers guidelines to the users about the exercise. It records vitals that guide on the need to adjust the exercise plan. It also advises the muscle to focus while planning the length of the workout.

Advantage: The advantage of BFIT offers flexibility to the users. In this case, it makes it possible for them to participate in the exercise program at any time and wherever they prefer to practice. It allows the users to choose the length of the workout and the muscle they prefer to focus on. The other advantage is that it offers the users the opportunity to view the programs they have made in terms of exercise and allows them to make the necessary adjustments to attain the targeted objective.

Benefit: The application will improve the physical fitness of the individuals. It will help reduce chronic diseases such as obesity, hypertension, and diabetes. This is because it reduces the high cases of sedentary lifestyle linked to office work or limited time taking part in the exercise. It will also boost the economy of the individuals and the country as people will remain healthy and actively participate in nation-building activities.

3. Customer Target Market

Public Relations: The application is a promising tool aimed at increasing adherence to physical exercise at home, places of work, and anywhere a person feels they can engage in exercise activity. Therefore, it is essential to create awareness about the existence of the BFIT program. The focus groups, polling, interviews, questionnaire, and field experiments will be used as tools for public relations.

Advertisement: It will be achieved through the use of social networking. The YouTube advertisement, use of Facebook, partnerships with widely recognized sportsmanship individuals, use of sports events or activities, and advertisement on international business television networks will be adopted as practical approaches.

Marketing: The marketing program will focus on the targeted market, creating a website with easy scheduling, maximization of the SEO, starting a fitness blog, building a social media presence, and launching the fitness challenge. It is also essential to build a community through a specific club to attract more people, share the message, host live videos, and provide behind-the-scenes content.

Sales: The selling will be promoted by creating an online store using a platform that supports digital, subscription production, physical, and VOD.

The list of prospective customers: The targeted customers are individuals at risk of a sedentary lifestyle and have low chances of participating in the exercise. Those working full-time in the offices are also targeted. The target is also the individuals with risks of obesity, diabetes, and other chronic disease caused by poor involvement in exercise activities. Individuals with chronic conditions such as hypertension, diabetes, and obesity are also targeted.