Business Plan - Juniata College

Business Plan
Owners:
Jon Niezgoda
Business Name: Notebooks For Sale
Address: 1700 Moore St.
Huntingdon, PA
Email:
[email protected]
Website:
notebooksforsale.weebly.com
I.
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
Table of content
Table of contents……………………………………………………………………………………... 1
Executive summary.…………………………………………………………………………………. 2
General Company Description.………………………………………………………………….. 3
Products and services.……………………………………………………………………………… 4
Marketing plan.………………………………………………………………………………………... 5
Operational Plan.……………………………………………………………………………………... 8
Management and organization.……………………………………………………………….. 10
Personal financial statement………………………………………………………………….... 11
Startup Expenses and Capitalization.………………………………………………………. 12
Financial plan.………………………………………………………............................................... 13
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II. Executive Summary
Executive Summary
Notebooks for Sale is a start-up business that is going to monopolize on student note
taking in college. The company will specialize in providing students with an easy to
use and efficient note taking software. My company will be offering the first ever
software that has been approved by the school it is being used in to minimize
student teacher conflict, a text to speech note-taker, and a implemented self-test
feature for studying . That is the premise of my product: to provide an
individualized, student oriented, software that allows students to utilize notes in a
more efficient way. The product will monumentally help and foster the studying
habits of students everywhere. Furthermore, it works with teachers to create a
seamless integration into the classroom environment that so many computer
technologies seem to lack nowadays. .
My target customers will be anyone and everyone working or studying in high
school or college. NBFS will hopefully be in the majority of classrooms and lecture
halls after the first several years. The owner of NBFS is Jon Niezgoda.
He is seeking a loan from a highly qualified bank that is capable of providing a loan
of at least $500,000. The capital from the loan will go to start-up costs such as
locating and renting/leasing property for an office, and compensating employees
and officers for labor. The loan will get the company up and running very quickly.
NBFS will be a success in the industry, and the owner believes the bank will be
repaid fully in roughly five years or less, plus interest.
Thank you for taking the time to dive deeper into what may be the biggest
academic breakthrough of the generation. Keep a look out for this program in
your local business supply store.
2
III. General Company Description
Mission Statement:
It is the Mission of NBFS is to provide students and teachers with technology
that circumvents the problems of note taking and studying in a collegiate setting.
My professional staff will help educate and find solutions for my customers.
Company Goals:
I want to continue to grow my company to make it more efficient and profitable so
that both, clients and employees can get more out of their time. My goal is to
increase my company’s corporate value by 200%.
Objectives:
● Define my target market to two major areas.
● Start marketing to the target the right schools and incorporation of clients
in R&D
Philosophy:
My product is meant to provide convenience for students and teachers in
addition become a useful resource for both.
Industry Description:
This is a growth industry where I look at the company in the long-term, focusing
on the trends of the time to help decide whether change is needed or not.
Company Strengths:
-
Software is easy to use
High product quality
Involvement with Academia
Legal form of ownership:
Sole Proprietor- this is a reliable form of ownership because of simplicity.
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IV. Product and Service
Notebooks For Sale
The NBFS Software is a product that streamlines note taking. Installing it on your
computer is extremely easy and incredibly fast. The 2 versions, Student Edition and
Premium Edition are extremely intuitive and are very reliable.
Price: $250-350
At $250 the Student edition is accessible to all families, but if not there are rentable
options available at some schools. At $350 the Premium Edition is a steal for its
available features.
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V. Marketing Plan
The way I plan on marketing the software is by advertising it online, around the end
of summer. I can also make TV advertisements with the funding from other
organizations and colleges using the program in its curriculum.
Market research
I did some extensive research into note taking programs. I did a majority of the
research from various surveys I asked students and college faculty in my target
market to complete. I also know a lot about computer programing from personal
experience. With this information I feel comfortable in the marketing efforts going
forward.
Economics
●
●
●
●
Small shares
Moderate demand
Trends in target market include a rise in the marketplace for the next years.
My business size is small, my products have the potential to help it
expand and grow.
Barriers
● High marketing costs: Personalized marketing
● Consumer acceptance/brand recognition: Work on creating brand
recognition
● Training/skills: Need extensive knowledge
● Unique technology/patents: Must receive patents for my code
● Competition: OneNote, Evernote
● Changing economy: recession could allow for a negative impact on sales
Customers
● College students
● College professors
 Colleges
Competition
5
● OneNote
● Evernote
● Dragon Text To Speech
These three companies are my biggest competitors in this industry
because they have the same idea and they are making the same
product as I envisioned. But, only my product is the seamless
integration of many constituent parts such as text to speech.
Table 1: Competitive Analysis
1=not very important; 5=critical
Factor
Me Strength Weakness OneNote
Evernote
Dragon Text
to Speech
Importance to
Customer
Products
4
3
5
5
5
Price
3
5
4
3
5
Quality
5
1
1
4
3
Selection
1
2
5
4
4
Service
5
x
2
2
3
2
Reliability
4
x
5
5
2
3
Stability
3
5
4
3
3
Expertise
5
4
2
3
2
Company
Reputation
5
5
1
2
1
Location
1
3
5
3
4
Appearance
4
5
2
4
2
Sales Method
2
3
2
1
2
Credit
Policies
1
2
3
1
3
Advertising
5
5
3
2
1
Image
4
2
4
x
x
x
x
X
x
X
x
x
x
X
x
X
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Niche
My company has a specific corner within the industry. While I am
young and only possesses a small share of this big industry, I am
new and have extremely good and influential ideas.
Strategy
Promotion: My main means of advertising will be through Search Engine
Optimization, radio advertising, television advertising, and newspaper advertising.
Promotion Budget:
SEO
Search Engine Optimization
$350-$600 per month
Television
Advertising
The Business Channel
$2500
Newspaper
Advertising
$80/week for 26 weeks
(Community & Uprising
Sections on Wednesday)
$2080
Radio Advertising
$80/ 30 sec. Prerecorded
Advertisement 3 per day
on FM 102.1 WLUM
$50,400
Pricing:
My pricing is moderate compared to the marketplace because of
my ability to price reasonably and work with big buyers like
colleges. Since it is online the 2 options are rent and buy and both
of those strategist benefit me.
Proposed Location:
Currently I am located in Huntingdon, PA and I am planning on
moving the business to southern WI because it’s easier for
production and business running.
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VI. Operational Plan
Production
NBFS is a code which is inscribed on a disk or in downloadable file. The only thing I
need to create products are writeable CD’s and a inscribing tower or an internet
connection.
Location
The company has one factory that located in Central PA, but is on every major
online business supply store nationwide. The office and office furniture and
accessories and computers cost around $1,200.
Legal Environment
Licensing and bonding requirements:
● Local licenses include business license
Health, workplace or environmental regulations:
● The health inspection office in the local county to make sure it meets
specifications will certify production
Zoning or building code requirements:
● NBFS will work with a local construction company to discuss the office
building. They have checked to make sure the building code and permits for
the storage and processing are allowed. Also, the renovation of the office is
permitted.
Trademarks, copyrights, or patents (pending, existing, or purchased)
Credit Policies
8
To support the financial goals of NBFS and to support its sales efforts,
while maintaining the highest the quality of accounts receivable within the
corporation capacity for risk.
Credit goals
● A target for the percentage of bad debts to sales
● Percentage targets for acceptable account aging, average days delinquent,
percent over 90 days past due
Credit responsibilities
● Credit manager
● Credit analyst
Evaluating customers’ creditworthiness
● I require a credit application to be fully completed by every customer and
signed by an authorized officer of Debtor Company. Also, I want to review
credit report, credit group, financial statements and information provided by
applicants.
Terms and conditions of sale
● It will be included on all sale documents, and the credit application with a
statement requiring a signature.
Collection
● Up to 30 days after signing
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VII. Management and organization
Professional and Advisory Support
My management team is made up of people with at least three years of experience in
the product design and development. My aim is focus on the customer’s needs. I am
the CEO as of now with expansion possible in the future
Board of directors:
Production Manager, Marketing Manager and Administrative Manager
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VIII. Personal Financial Statement
11
IX. Startup Expenses and Capitalization
The way I will fund the production of the program is by coding it on my own
time and gaining donations from colleges and other organizations who are the
driving forces of academic evolution. Obviously, customers will be paying enough to
make a profit, so that revenue will be re-used into the company to pay employees
and make newer, better versions of the program.
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X. Financial Plan
● Experience moderate growth.
● Costs will be managed and forecasts for future needs will be performed on a
regular basis.
● Finding the right product, at the right price will enable the business to meet
planned margins and maintain inventory at an acceptable level.
● The NBFS note taking program will cost $250-350 for customers and
buyers, people renting the program are paying what the college or renter is
renting it for, most likely around $65. The price is based on the amount of
labor time spent on the program as well as other things including: R&D,
manufacturing, advertising, overhead costs, etc.
Profit & Loss Projections
13
Projected Cash Flow
Profit and Loss Statement
14
Opening Day Balance Sheet
15
Breakeven Analysis
16
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