Business Plan Essay
Business plays a vital role In the life and culture of countries. In today’s society people are willing to assume the responsibility and the risk for a business operation with the expectation of making a profit. Most businesses develop a new product, a new market, or a new means of production. This report outlines the steps required in setting up a small Business In Antigen and Barbuda. As a guideline we came up with a business In which we would manufacture a commodity for sale locally and regionally. The name of our business is called Waddle Jam.
By using this company it would give a clearer picture and understanding of the steps involved. The steps that are outlined in the report are as follows: Come up with a good business Idea Write a business plan (Approach lending Institution for funding) Decide on a winning name for your business Choose the form of business you are going to start Get a business License Register for taxes Prepare to have employees Buy other kinds of business Insurance Get your business records off to a good start There are different forms of business in today’s society.
The group company Waddle Jam is owned by four individuals therefore the form of business being used is partnership. In this form of business the owners generally decides on the product, acquires the facilities, and brings together the labor force, capital, and production materials. If the business succeeds, the partners reap the reward of profits: If It falls, all the partners take the loss. A business must acquire a business license before they can operate legally within their country. In Antigen business licenses are issued by the high court of Justice.
Taxes are apart of every country, In Antigen a business must register to pay taxes. The Institutions that Issue these taxes are Medical Benefits scheme, Social Security and Inland Revenue. In most businesses employees are an essential part of the structure and development of the business. When starting a business you must prepare to have employees. Develop a method In which employees are hired. Each employee needs the skills and qualifications for the type of business you are operating. Operating a business.
Getting business records off to a good start will make it easier to manage the accounting and payroll of the company. Business Idea Our business idea came from Mr… Lucien Pilgrim’s love for Jams. He developed this craving from his childhood years when eating crackers and home made Jam at his randomness’s house. As he grew older he looked for that special taste in Jams at the supermarket. During his visits to several supermarkets he realized that there were more imported Jams being sold than Jams made with local fruits. He then decided to conduct a feasibility study about Jams being sold and manufactured locally.
The results from his study showed that 10% of Jams on the market were made locally. On further investigation it was revealed that senior citizens made most of the local Jams. These are done on a small scale. The recipes from these Jams are not passed on to the younger generation. Mr… Pilgrim then became very concerned that the recipes of the Jams he loved since childhood would soon be “buried in the grave” along with our ancestors. He then decided to start a business where he would keep the recipe and his culture alive.
He approached five people from the community to develop his idea: Jonathan Gilles – He supplied the fruit trees & Recipes for the Jams Karee Ask – Accounting and management skills & Successful Business Lawyer Unaware Remain – Marketing experience They were all interested in his idea and decided to invest by putting in shares into the business. ANALYSIS Company analysis: Our goal is to make a profit while marketing a product via the internet and also our focus is to produce the best tasting Jam there is on the market. We have developed a fully functional website that has enabled customers to view the various flavors of jams being offered.
CUSTOMER ANALYSIS: of the hundred visitors we are expected to have 60% become customers, after viewing our products which expresses culture and heritage. Our value drivers would be cheaper price of products than our competitors and also a better delivery time. Our customer base will be made up of simplifiers which are people who are attracted y sites that make doing business easier, faster otherwise more efficient than is possible in the physical world. COMPETITIVE ANALYSIS: Our competitor market position is their strength, whereby they already have a strong brand name.
Their weakness would be delivery time because they are not located on the island. Our competitors control at least 60% of the market thus far. COLLABORATORS: The hosting site is bravest, they collaborate with the web designer in order for the website to be functional. S. W. O. T ANALYSIS STRENGTHS Staff with experience in accounting, marketing and management skills Practicing lawyer for twelve years Land with numerous fruit trees Entrepreneurial attributes such as commitment, determined perseverance and self confidence There are not many other businesses that sell locally.
WEAKNESSES Lack of liquid cash to Finance start up cost Lack of established markets OPPORTUNITIES To be able to expand the Capital Consumers not having to go far to get the product Quality Jams THREATS Take a while to enter market since customer/ client relationship would have to be established for fixed deliveries There are several other local Jams being sold Natural elements such as hurricanes etc, animals such as birds, rodents may destroy ruts The company Waddle Jam main purpose for writing a business plan was to secure funding, such as bank loans.
Scotia bank was approached by one of the partners to secure a loan for the company. Following is the information needed by the bank before a loan is granted to the company. You must have tangible security (collateral) in the form of cash or land. You must deposit 35% of the amount of the loan. The loan is paid on principal interest for no more than arrears. The interest rate is between 11-12%. After the loans officer and director of the bank review the requirements, 65% of the initial loan will then be granted to the company. A loan of $441 ,OHO.
Price In order for our business to be successful we have to market our product effectively. We intend to sell our product wholesale and retail. Our aim is to decrease the mount of Jams that are imported into the country and replace those Jams with our product. The cost of our products is cheaper as they are locally made and there are easily transported to the various supermarkets. We want our Jams to be lunch snacks to children, on breakfast tables at hotels, restaurants and supermarket shelves and also sold to many tourists that enter the island.
Eventually we hope to export our Jams to other countries. Our first target is to get our product into the major supermarkets and hotels. By our estimate this will be about 70% of the population of Antigen and Barbuda and about 0% of tourist. Meetings with prospective customer’s media advertisements and flyers would be the machinery put in place to market our Jams. As an introduction to our product we intend to give samples to shoppers and tourist at various hotels as an experiment on how effective the product is.
Then we will record their general opinion and comparisons to the Jams they normally buy. We choose a location that is accessible to everyone. We are located at Coolidge Industrial Park. This location is away from the busy streets of the city traffic with easy access to the airport. Promotion After our product has been introduced into the market the next step is advertising. Because we have plans to eventually take our product regional we decided to advertise on a regional radio station along with local media.
We have received a proposal from Family Radio which broadcast to eight other islands: Montmartre, Inguinal, Nevis, SST Skits, SST Marten, SST Martin, Saba, and SST Status. This is a very popular radio station around the Caribbean. They also have a worldwide audience on the web. In their proposal they are also offering us a banner space on their website which would lead them to our website www. Waddle]amaze. Bravest. Mom where they can view our products and contact information. Decide on a winning name for the business You would want a name that is memorable and is going to summarize what your business does for marketing purposes.
The partners of the company did some brainstorming for a catchy name. They came up with the name Waddle Jam. The name Waddle symbolizes the heritage and our culture and Jams spelled J-A-M-Z represents the old techniques brought into the future. Together they signify the past and present. The form of business ownership used by Waddle Jams is partnership. Waddle Jams is under a general partnership agreement. Each of the four partners is Jointly and severally liable for the debts of the partnership.
This means if the business suffers loss it is shared between partners however this means that as a partner you can be held responsible for any wrongful act or omission by other partners acting in the ordinary course of the firm’s business – which can be a serious disadvantage. In contrast the most successful partnerships are those where the partners have complimentary talents and are comfortable sharing the decision-making. OBTAINING A BUSINESS LICENSE The company has to pay $100 for registration, and an additional $25 for a search to e done in the register to see if the trademark is registered.
A local agent then has to file the paper work in regards to the company’s trademark, then after about two days Trademark Licensing A trademark is a sign that that individualizes the goods of a given enterprise distinguishes them from the goods of its competitors. A trademark must be distinctive and it should not be deceptive. Patent The recipe for the Jams is passed to one of the owners of the company so getting patent rights will ensure that the company Waddle Jams is the only company using that recipe for the Jams. Register the business for Taxes
Taxes that a company in Antigen pays for are: Medical Benefit (Payable to Director of Medical Benefit Antigen and Barbuda) Social Security (Payable to Director of Social Security Antigen and Barbuda) Educational Levy (Payable to Commissioner of Inland Revenue) Business Tax (Payable to Commissioner of Inland Revenue) Business Tax Medical Benefit Social Security Educational Levy Particulars 35% of Net Profit 3. 5% of Employee’s and Employer’s Salary 3% For Employee and 5% for Employer 2. 5% of Employee’s Salary salary over $5000 – The amount of business tax paid to Inland Revenue differs depending on the form of
Revenue in the table above is the deductions commissioned for a business operating as a partnership. The deductions made for business tax are payable on a yearly basis. A form is usually given to employers off business by these institutions to ensure the payments of taxes are made. Hiring Employees While starting a business-hiring employees may be the furthest thing from your mind but it’s amazing how quick a business can grow. A selected numbers of persons must be chosen with the necessary skills and qualifications needed to carry out the different tasks required to perform the functions of the company on a daily basis.
We intend to hire at least 12 employees in the business preliminary stage. Following is a description of the type of staff our business requires: Manager – Must have at least 5 years of management skills. Executive Secretary – Must have at least 5 years experience in administration. Computer skills required. Floor Supervisor – In charge of production, must have at least 1 5 years experience in manufacturing. Cooks – Must be experience in pastry making etc. Stewards – Must have 10 years experience in the related field. Driver/Delivery Person – Must be an experienced licensed (85) heavy-duty equipment river. 5 Years) Cleaner – Must have 5 years experience in the related field. Security – Must have at least 7 years in the related field. Conclusion with the idea to start a business. The procedure in which one has to set up a business deals with a lot of planning, consulting for information and ideas. The most challenging part of doing this exercise is compiling the business plan. A lot of intellectual power went into the business plan. Even though the project was challenging members of the community were very cooperative and patient in giving us all the necessary information.