The paper 'Budget and Finance' is a great example of a Business Essay. Elite Electricals Ltd will be an effective place for customers to purchase new electrical appliances as well as spares. The company will ensure there is always quality and sufficient stock in place so as to meet the needs of customers. A wide variety of products will be in store to cater to different customer’ s tastes and preferences. Elite Electricals Ltd predicts that customers will respond positively to the products thus high sales within a short time.
The need for customers to purchase quality products will be given emphasis. Target Market & Market Analysis There are potential targeted customers available to purchase products of Elite Electricals Ltd. The classification of various groups will help the company be aware of feasible customers and their needs (Sant, 2012). With market research, the company is able to evaluate potential and reliable customers as well as understanding their expectations regarding the upcoming products. The realization of the company’ s strengths, opportunities, and capabilities will enable the new venture to penetrate easily in the projected market. On the other hand realization of its threats plus weaknesses will give guidelines on how to perfect them to avoid negative consequences.
The company’ s intended market depends on the products and services to be offered, the needs, demands, and preferences of the customers. By carrying out market research it will be possible to identify competitors in the industry; as a consequence streamline processes to ensure sustenance of quality. The first group of clients is individuals who buy electrical appliances for home use. In this case, they buy just a few products.
The second group is the supermarkets and wholesale stores who will be buying in bulk and then sell in retail. Elite Electricals Ltd plans to put trade discounts for this group upon prompt payments. The third group of customers will be companies who buy electrical appliances for office use as well as spares to replace existing ones. The office plans to be carrying out office delivery so as to attract and retain these customers. To ensure the satisfaction of customers, the company estimates that frequent market researches will be conducted: a team of salespeople will be employed in various sites to collect data from credible customers.
Data will then be analyzed to come up with results from the respondents. Another method which will be used to collect data from possible clients will be face to face interview where respondents will be asked various questions regarding the goods and services. In addition, questionnaires will be issued to respondents for filling then collected after some time upon completion. Excellent skills are significant in the business; therefore the company will take the initiative of training each staff member about sales and marketing (Abrams & Kleiner, 2003). Business Ownership Elite Electricals Limited is a partnership company.
The partners have agreed on terms and conditions towards sharing profits, losses, and responsibilities. Management Elite Electricals Ltd will pull together a competent and competitive team. There will be a general manager with a fruitful background in business and administration with more than five years of experience in the management field. In addition, there will be a professional finance manager who will be responsible for all accounting procedures in the company.
His proficient skills will be of great value in ensuring the profitability of the business. Thirdly the procurement manager will ensure efficient purchasing and supply of goods at the right time and in the right quantity. Elite Ltd recognizes employees as a vital resource; therefore the human resource manager will cater to staff welfare at all times. The management team will be minimal but professional to cut down extra costs. Mission To be the premier provider of high-quality goods and services to our esteemed customers, meet their needs, and satisfy them. The company will be dedicated to building long term relationships with customers through quality training and customer support. Vision To be the leading and most preferred company in the industry by customers.
The company’ s goal is to grow up progressively; make just profits every year and provide a worthwhile place to work for workers. Strategy Elite Electricals Ltd intends to succeed in the business world and at the same time provide a combination of quality products and excellent customer care to customers (Freed and Shervin, 2010). To sustain satisfied customers thus achieve a competitive advantage over competitors. Premises The location is already identified and secured and the monthly cost is mentioned in the financial plan.
The location of the company will be in a strategic point, easily accessible by both the customers and suppliers. This idea will be in order to bring goods plus services nearer to customers. Due to the dynamic business environment, construction of a state of the art facilities will be promoted, adoption of advanced technological devices hence fast and quality production of goods and services. Elite Electricals Ltd plans to provide enough spacing to guarantee easier movement in and out of the company by staff and customers thus a favorable working environment. Probable Challenges Elite Electricals Limited will be a brand new company and therefore the possible challenges are well distinguished.
The company however recognizes the challenges at hand which if not dealt with at the right time using the best strategies challenges can portray negative effects and even delay the execution of the business idea. One such confront is a lack of finances which is a key factor in implementing the business plan (Ryan, 2004). For the whole process to be a success, sufficient finances will be required in order to initiate the business as well as sustain it.
The second confront is deciding on the cost-effective and reliable mode of advertising the products and services to customers. The other challenge is getting the right employees who will work hard to attain the new company objectives. Forecasted Solutions The Elite Electricals Ltd anticipates the finances available will not meet all the planned expenses, therefore different banks and potential investors will be approached to lend a hand in financing the business.
Plans have been set in order to attract many customers. With regard to Bosua and Schutte (2002), a demographic outline of the target market will be carried out to find out who the genuine clients are, clients' needs, and the demand for both the products and services to be offered. Consequently, the best advertising medium to reach vast targeted customers in the right way will be established (Ryan, 2004). The company’ s marketing team will set on the television and newspapers as many people in Miami access them on a daily basis.
A professional recruitment team will be well put in place to warrant only competent and knowledgeable employees who are included in the workforce so as to attain Elite’ s long term objectives. Financial Planning Elite Electricals Ltd will be well acquainted with the important role of financial planning. Finances have facilitated the easier and more rapid implementation of the business plan. The company expects to raise a total of $ 200,000 and to cover up the deficit by borrowing $ 878, 800. The comprehensive financial plan for Elite Electricals is outlined in the excel spreadsheet attached to this proposal. Reason for Investors to invest in Elite Electricals As can be seen in the financial plan the business has growth potential in terms of revenue and profitability.
The gross and net profit margins are indicators that the business is set to reap from a wide range of customers and even expand to other localities. Substantial funding is also allocated for marketing and advertising in order that the business spreads its awareness campaign to new and existing customers. In the span of one year of its operations, the business projects to have a cash flow base of about $ 1.3million with a gross profit margin of 91%.
In light of all these, investors are encouraged to invest in this business in order to set the path for its growth.
Tom, Sant. (2012). Persuasive Business Proposals: Writing to Win More Customers, Clients and contracts. New York: American Management Association
Richard, Freed, & Richard, C., & Freed, Shervin. (2010). Writing Winning Business Proposals. New York: Mc Graw Hill
Bob, Ryan. (2004). Finance and Accounting for Business. Clifton Park, NY: Cengage Learning Business Press
Rhonda, Abrams, & Eugene, Kleiner. (2003). The Successful Business Plan: Secrets & Strategies. Texas: Oasis Press/PSI Research
Willem, Bosua, S., & Madri, Schutte. (2002). Basic Financial Accounting. Cape Town, SA: Juta and Company Ltd