Small Business Plan
Small Business Plan m m C C Executive Summary Proposed Name of business: Chocolate Milk Proposed address: Prime function of the business: providing a variety of clothing to men Mission statement of the business: to provide Men with quality clothing, having a variety and a great location. Vision of the business: aim of the business is to expand and franchise to allow customers to purchase quality clothing Legal structure of the business: legal structure of Chocolate Milk is a private company that is an incorporated business with limited liability.
Chocolate Milk has become a sole trader, positive highs of becoming a sole trader is that you are able to make your own decisions.
If the business is interested in expanding in the future it will then become a franchise, doing so will expand the business so it then becomes well known and is a great marketing strategy. C C The products your business will sell: C C M M Casual T-shirts M M C C Dressy tops (club wear) M M C C M M Jeans pants (long /and shorts) Jackets / jumpers (ranging from all different materials) Swimwear (trending shorts) Accessories ( backpacks, sunglasses, bracelets)
Financial goals of the business: Expanding into a franchise Having a variety of men’s clothing (shoes, hats, jewellery) To expand and produce chocolate milks own clothing line Social goals of the business: Personal goals of the business: Situation Analysis Target Market: the target market of chocolate milks business is targeting the ages of 17 to 26 these are the ages that continue to stay with the trend, the most popular clothing being casual but indie, meaning fashion that will stir the normal trend, and may even bring the old ones in. Key competitors:
The key competitors of chocolate milk are a variety of high fashion trend stores that have become very popular are: These stores are high competitors because they have franchised and expanded their business. They have gone further to put up a online store for their brand, which has expanded them further, it is a good market plan that boosts up your business, and gets your name/brand known all over the world. These stores are a main threat to chocolate milk because they serve for the same age group and have the same fashion trends. The establishment stage of the business:
Chocolate milk has many characteristics of the establishment stage of the business life cycle some are: Positive cash flow Creating name/brand of the business and registering it as your own Monitoring the business and evaluating the weakness’s and improving on it to then set a firm foundation for your business, for the future years, and continually improving Having a healthy customer base flowing in Benefiting your business by having a positive amount of profit Having high quality staff that will represent your business Continually staying on top of all the financial work within the business Swot Analysis ¦| | | |
Outline strengths(internal)| | Outline weaknesses (internal)| Outline opportunities (external)| Outline threats(external)| * Customer loyalty * Having popular products * Keeping up with fashions trends within the market * Having high quality staff that are continually proving themselves| | * Main weakness the business faces is that it hasn’t expanded to be an online store to further more opportunities * And having only one location is a very big challenge because advertising has to be very high * Only targeting men| * To target the online market sales * Having new technology to increase our customer base (advertising on high end sites that will gain interest of customers)| * Customers are continually using the online buying instead of going into stores which threatens chocolate milk. * People make cheaper clothes that look the same as chocolate milks brands. | Operations plan Key products that will sell: Key products that chocolate milk will sell are high new quality clothing all original and unique in their own way, the clothing brands we are to sell are what will bring the business to have a high product sales. Service offered: Chocolate milk is located in one of the high fashion places in Sydney, this gives us a variety of great customers, having a large store that operates with a large range of clothing, walking into the store gives males a variety they need. Equipment required:
Equipment chocolate milk will need to operate the store and to be able to display all the products will be a variety of different shelves, racks, tables, dressing rooms, POS ( two, point of sale), a steam iron ( for the more delicate items that crease), those are the items needed. Laws and regulations: As any business they need to follow the laws and regulations that the Government put down, by doing this your bettering your business by having guidelines and rules, this really contributes to your business/workplace. Some of the laws and regualstions that chocolate milk needs to abide by are: * New South Wales Occupational Health and Safety Act 2000 * Sex Discrimination Act 1984 * The Age Discrimination Act 2004 * Equal Employment Opportunity * Fair Trading Act * Fair Work Act * Australian consumer rights * NSW Tax laws and regulations
Suppliers and their location and what they are supplying: Levi – Levi home base is located in ‘San Francisco, the United States’ since the company’s founding in 1853. But through the years their headquarters have branched out and some of these locations are now in Brussels-Europe, Middle East and North Africa, Singapore – Asia Pacific Division Headquarters. This brand/label will supply Chocolate Milk with high quality jeans, ranging from all different types of denim material, and all having a unique design. Address/location/country/Telephone/Fax San Francisco, U. S. A| Europe, Middle East and North Africa| Singapore| Levi Strauss & Co. 1155 Battery StreetSan Francisco, CA 94111U. S. A.
Tel: (415) 501-6000Fax: (415) 501-7112| Levi Strauss Europe, Middle East and North Africa (LSEMA) Avenue Arnaud Fraiteur 15-23 1050 Brussels, Belgium Tel: (32-2) 641-6011| 1 Kim Seng Promenade #16-01 Great World City East Tower Singapore 237994 Tel: (65) 735-9303 Fax: (65) 735-2923| Wrangler – Its headquarters is in Greensboro, North Carolina in the United States, with headquarters in a variety of locations throughout the world. Some of them are based in North America, Asia, Latin America, and Europe. This brand/label will provide chocolate milk with top of the range; jeans, T-shirt, Jackets, and accessories that will help your fashion trends throughout the seaons. Australian headquarters based in Victoria TRUE ALLIANCE 270 DAREBIN RD FAIRFIELD VICTORIA AUSTRALIA 3078 +61 3 9481 9999 Factors affecting choice of suppliers:
Chocolate Milk has chosen these brand/labels for the purpose that they are well known all over the world, they have the trending fashion for men that is very popular, all the brands have high quality clothing they all brands appeal to target market being male men of the ages17 to 29. These labels are well known for the quality product they produce and with this comes affordable prices. Shop layout My shop layout is convenient in many ways not just to my business that is very high in advertising of the products but the way the public view it from the outside as well. I want my shop to be known as a well-respected business throughout the community. The way I’ve designed my shop is to bring customers in, hoping they’ll be intrigued by the displays and the whole cleanness of the shop, the environment is clean that I am in, so my shop shouldn’t ever be below standards.
I have defined clear exits signs (emergency exits) making it easy for people to view and the shop is very open and spread out so there should be an obstacles in the way in case of an emergency, this also help my customers to walk freely throughout the shop not feeling confined. The theme of the shop is wild and free letting the young youth of our generation be shown through all the displaying furniture, having unusual displays to present the product this is how we intrigue our target market, by the unusual. Inventory Control: The way I will be able to monitor my inventory flow (stock), I will be coming into work on the day the business is closed ‘Wednesday’ being that day and I will be going through all the items my ‘inventory’ whether that be the clothes, accessories.
I will be filling out how many items we have out on display and at the back (storage) and the sheet I have printed will tell me how many I should have in stock, and I will then count up how many we have displaying and out back in storage, and then come up with a final sheet to see if any of the stock is missing. Example inventory control sheet: Date: Wednesday 25th of July| Name: clothing stock take| Label| Item Code| Category| The quantity you should have in stock| Quantity you have:| Inventory lost | Levi| M308352929723| Jackets- denim| 20| 20| | Wrangler| S934U935U2020| Original wrangler T-shirt -cotton| 15| 13| 2| Element| D9234834E0343| Hat| 5| 5| | Stussy| H2349743752H2| Singlet| 11| 11| | | | | | | | | | | | | |
Quality control procedures- Depending on the flow of inventory that is getting sold, that will decided on the amount of stock that will be brought . Whether extra stock should be brought for a popular item (one that is getting sold out). Again buying more stock and new stock for the seasons depends on sales. Employment relations Plan: The levels of staffing in Chocolate Milk are: 1 full time 5 part time staff Recruitment process/ development program: The recruitment approach that chocolate milk uses is a 7 stage process, this process consists of: After this you will begin training, 5 training shifts where you will be shown through the procedures of the shop and POS.
After this you will begin training, 5 training shifts where you will be shown through the procedures of the shop and POS. Website (www. chocolatemilk. com. au) Website (www. chocolatemilk. com. au) You will attend an introduction day going through the shop and answering any questions. You will attend an introduction day going through the shop and answering any questions. Options- career -fill out cover letter and resume plus availability (hours & days ) Options- career -fill out cover letter and resume plus availability (hours & days ) Then after the 5 shifts you are able to be on your own if needed, but you will be watched for a 3 month period Then after the 5 shifts you are able to be on your own if needed, but you will be watched for a 3 month period
If you receive a call back again after the face to face interview you have been successful and received the job If you receive a call back again after the face to face interview you have been successful and received the job If selected you will receive a phone call, (an over the phone interview) If selected you will receive a phone call, (an over the phone interview) During face to face interview you will be asked a series of questions and fill out more application forms During face to face interview you will be asked a series of questions and fill out more application forms If selected again after the interview you will be called to have a face to face interview If selected again after the interview you will be called to have a face to face interview
New employees go through a introduction day, this day will give them more insight on the business they will soon be working for. This day consists of going through the everyday procedures, and going through all the rules and regulations of the business. When rostered on they will be going through five training shifts, these training shifts will consist of learning: * Learning POS (Point Of Sale) ( greeting the customer) * Team work ( a successful business is only successful if everyone works together) * Floor duties ( moment of truth- be polite to customers by greeting them) * Decision making * Emergency exit meeting point Employee wages: * Full time staff – $ 20 an hour Part time staff – $ 16 an hour Days| Danielle| Jess| Mel| Stephanie| Nicole| Mechelen| Hours open| Monday| Danielle| Jess| | | | | 7hrs| Tuesday| Danielle| | | | Nicole| | 7hrs| Wednesday| Danielle (stock)| —–| ——-| ————-| ———-| ————| 2hrs| Thursday| Danielle| Jess| Mel| | | | 7hrs| Friday| | | | Stephanie| | | 4hrs| Saturday| Danielle| | | | Nicole| Mechelen| | Sunday| ———–| ——-| ——-| ————-| ———–| ————| ———–| Total worked hours during the week:| 30hrs| 14hrs | 7hrs| 4hrs| 14hrs| 7hrs| | On-costs for the business Some on-costs of Chocolate Milk are: * OH&S requirements Long service leave * Sick leave * Holiday pay * Maternity leave * Leave loading * Wages * Insurance Non-monetary benefits: Chocolate Milk has many non-monetary benefits for staff members that have done great work and have shown that they are following work procedures and guidelines; some of these are: * Retailer voucher * Movie voucher * Discount on products Worker appraisal process: * Promotions within the business * Rewards received ( extra benefits, for following working procedures) Marketing Plan Marketing objectives: Chocolate Milks marketing objective is to increase the business of the store (getting the name known) by 40% in the next 12 months.
By doing this we will have a high customer base, and we will be able to add more features to our stores: e. g. Loyalty cards, giving our employees discounts and promotional offers. Competitive advantage of this business Chocolate Milk as a business has many competitive advantages such as; * Unique clothing * High up in all fashion trends * Staff continue to help the business grow * Targeting the young youth Product strategies| Pricing strategies| Promotion strategies| Distribution strategies| -great quality products-unique designs-the products that are sold are eye catching -| Chocolate uses Market price method of pricing-the products sold at Chocolate milk have a price mark-up of 2. (250%)| Upselling of business– staff tell customers the benefits of the storeA big promotional strategy are loyalty cards Advertising- advertising on high end sites or social networks for example Facebook, and magazines | The distribution method used for Chocolate Milk is:ProducerwholesalerretailerCustomer| Financial Plan Type of finance required: The owner equity is 20’000 to start up the business while the loan was 10’000. This was the best option of finance because Chocolate Milk needed this to start up the business and push through all the circumstances and challenges of the establishment stage of a business. Breakeven point – Breakeven point in needed to see the estimate amount of goods you need to sell to make a profit. Break even = total fixed costs Unit price – variable costs per unit 193508 40 – 15 = 7740. 32 000 $000 108 Breakeven6 Variable costs , Fixed costs4 Revenue20 100 200 300 400 500 600 700 800 1000$0000 $0000 | Revenue: Revenue Statement Chocolate Milk For year ending Sales 500 000 Less COGS 80 000 Gross Profit 420 000 Less Operating Expenses Selling expenses Advertising 2000 Wages 88608
Deliveries 1000 91608 Aministrative expenses Rent 104000 Telephone 2000 Stationary 200 106200 Financial Expenses Insurance 1500 1500 199308 Net profit 220692 Revenue Statement Chocolate Milk For year ending Sales 500 000 Less COGS 80 000 Gross Profit 420 000 Less Operating Expenses
Selling expenses Advertising 2000 Wages 88608 Deliveries 1000 91608 Aministrative expenses Rent 104000 Telephone 2000 Stationary 200 106200 Financial Expenses Insurance 1500 1500 199308 Net profit 220692 This Revenue statement allows the business to be financially stable. Due to the high cost of rent and wages, the business may suffer through the year and not make a substantial amount of net-profit.
Even though these expenses of the business are very high it is necessary and relevant, this revenue statement shows that needs to increase sales so the net profit will not be as affect when all the expenses are paid. Balance Sheet: This Balance Sheet shows that the businesses assets to liabilities and owners’ equity are balanced. This allows Chocolate milk to be financially stable. Balance SheetChocolate MilkAssets LiabilitiesCurrent AssetsCurrent Liabilities Accounts Receivable 19000Accounts Payable 900stock 3400 Non-current AssetsNon-current LiabilitiesEquipment 590Loan 2090Owner’s EquityCapital 20 0002299022990|