The Marvelous Gadget Company LLC
Part Two: Business Plan, Term Project: Week 1
A strong business plan for the start-up of a new business is essential in bringing in investment and demonstrating a viable idea in an attractive way. The assignment is to present a business plan for setting up a manufacturing plant for small kitchen appliances. To develop the plan, and to effectively position the company in the minds of a targeted market and will start with answering basic questions. Every company needs a mission a statement and a plan for action.
The steps will be outlined:
Step 1.
A.) By stating who, you are? The Marvelous Gadget Company LLC
B.) What business am I in? The manufacture small kitchen gadgets appliances used in the kitchen such as toasters, blenders.
Step 2.
C.) Where do I want to go or is my market? The target market is in the US, will start will local distribution in the State of Georgia and if all goes well, will expand to other states.
D.) Who will buy? The product is for everyone who prepares food. Since the products are not luxury goods, they will be categorized as necessity goods, which are needed by everyone. Therefore, planning to capitalize on volume sales along with a decent profit margin.
E.) Who is the competition? The current product brands, which have been available for years and have developed customer loyalty, are the toughest competition. However, as a new entrant, the company will have to squeeze margins to make the price tag attractive for grabbing customers.
Step 3.
F.) What is the sales strategy? In the beginning, it will be imperative to leverage its proven products and floor space with all the leading retailers in the state. By bringing the product to the retailer through opportunities such as display and presentations at the local level and trade shows. Creating competitive advantage and rewarding loyal customers with discounts coupons, freedemonstrations, and uncompromising quality.
G.) How much money is needed to operate the company? Initially, start by forecasting market demand, and the expected share of the market. An article in Kitchen and Bath Design News by Ken W Peterson he states "The most effective business people manage their operations based on projections and results measured in numbers...not intuition and hope."
Step 4:
H.) Learn how much each unit will cost and then how much margin can company have in these products. Finally, look for breakeven units and see how long according to estimates will the company be able to achieve these numbers and will the company have enough money to sustain the business till then. If not, the search for alternative channels of financing can be started with the help such as:
Opportunities for seeking Help:
Loans: Small Business Administration, the U.S. Department of Agriculture, and other agencies support small manufacturers by providing funds needed to obtain machinery, equipment, and working capital.
Import-Export Assistance: could also be a channel to look for The Trade Adjustment Assistance for Firms, which is a federal program that provides financial assistance to manufacturers.
Finally, after working all this out, MarvelousGadgets LLC will get all necessary approvals from the local and state authorities, register the business under an appropriate name and finally roll out as per plan.
Resources used:
SBA: https://www.sba.gov/
It lists out all types of assistance offered by the government to start-ups and expansions for firms operating on a small scale. They also provide complete case studies to understand key factors for successes.
Http://www.bplans.com/
It gives an idea about the structure, how to launch a business
Http://www.aham.org/ht/d/Links/pid/1199
Gives an idea about the home appliance industry in the US, thus, giving a starting point for understanding the industry and Associations that are critical to industry standards.
Some other areas to look at for information are as follows:
Manufacturing | SBA.gov. (n.d.). Retrieved from https://www.sba.gov/content/manufacturing