Aims and Objectives: The company under consideration is Easy T-Shirts. The following are the short term objectives of acquiring these business organizations. Developing good ethical standards, and values for purposes of creating a strong brand name for the organization. Developing an efficient marketing strategy that can help in increasing the sales of the products of the company. Carrying out a market research for purposes of finding out the best design that is popular with the target market of the company.
The Business: We shall register this business organization as a private limited company. A private limited company is a business organization that can be formed and managed by more than one person. However, the company cannot raise capital by trading in shares at the stock exchange1. The reason for forming a company is based on the notion that it is a separate legal entity. This is advantageous because the shareholders of the company will not be liable for any debts that the company incurs, or its activities.
This has an impact of providing a comfortable feeling to the shareholders of the company. This is in regard to their financial security. Furthermore, the company is only taxed on the profits that they make. They are therefore not subjected to thee personal tax rates that partnerships and sole proprietor-ships normally encounter2. The main disadvantage of a company is the perception that it is expensive to start it.
However, it is possible to start a private limited company free of charge. The following are the possible sources for the capital of our company3, Personal savings from the share holders of the company: This refers to the amount of money that shareholders managed to save, in their bid to raise capital for the organization. Contribution from friends and relatives: The shareholders of the company intend to raise capital by seeking the financial help of friends and relatives. Bank Loans: The share holders of the company intend to apply for bank loans for purposes of acquiring capital to finance the operations of the business organization.
Funding institutions: The shareholders of the company intend to raise capital by seeking the help of institutions that engage in funding business organizations. The name of this business organization will be called, Easy T-Shirt. The company will be located in Oxford, and it intends to open offices within the premises of Oxford University. Oxford has a good infrastructure that can help in ensuring the company achieves its objectives. Furthermore, the company wants to begin by targeting the Oxford market.
This is a potential market for its custom made T-Shirts. The company will employ three major categories of people. These people are sales men and women, designers, and an accountant. The main role of a designer is to design the T-Shirts, in a manner that attracts the potential customers of the business organization. The role of sales men and women will be to market the products of the company. The responsibility of accountants is to control the finances of the organization. Without proper financial control, chances are high that the company will make losses.
Sales men and women will engage in selling the products of the company. These three types of employees are the pillars of the company. This is because without them, it is impossible for the company to achieve its objectives. Customers, Competitors, and Promotion: The target customers of the company are students of the University, members of staff, and their alumni. The company does not only target students of Oxford University, but also college and high school students.
The target age group is people who are between the ages of 16 years, to 40 years of age. These are the people who are more attracted to custom made T-Shirts. In Oxford, there are very few custom made clothing stores. In fact, they are five. Of these five custom clothing stores, three of them have delivery services. Of these five clothing custom stores, none of them offers luxury clothes that are long lasting and durable. Easy T-Shirts aimed at exploiting this weakness by offering luxury clothes that can last long, and are durable.
There are a number of promotional activities that Easy T-Shirt will engage in. These activities are, Hiring of models to promote the T-Shirts. Advertising the products through the social media, posters, and personal interactions. Free delivery for every 64 purchases made by a client. Free Hoodies and T-Shirts during the first months of operation. Sales, Costs and Profits: The following are the start up costs of the company; Costs Units Pounds Cost Per Hoodie 8 pounds 45 360 Cost Per T Shirt 3 pounds 150 450 Cost per letterman Jacket, 30 pounds 10 300 Printing Machine Cost 1 2400 Motor vehicle 1 800 Electricity Bill 40 Phone Bill 25 Rent 450 Salary 460 Printing Ink 04 240 Total 5525 Capital Introduced= 2500 Required Balance: 5525-2500 = 3025 Between the months of January to March, the company expects to make a loss of 630, 335, and 530.
However, between the periods of April to December, the company expects to make the following profits, 82, 185, 1075, 845, 952, 778, 1285, 1015, and 1235. Why This Business Will Succeed: This business will succeed because it is using a differentiation strategy to conduct its operations. The differentiation process involves the delivery of purchased products to customers4. This is a service that the competitors of the company do not offer.
Furthermore, there are few competitors, and the demand for the custom made luxurious T-Shirts is high. The company would also employ an aggressive marketing strategy, aimed at ensuring that people are aware of its products, and their quality. This is through the social media, physical advertisements, and use of models. Bibliography: Brian, F., “How to Write a Business Plan”, 4th ed. London: Kogan Page, 2013. Appendix One: The following are the start up costs of the company; Costs Units Pounds Cost Per Hoodie 8 pounds 45 360 Cost Per T Shirt 3 pounds 150 450 Cost per letterman Jacket, 30 pounds 10 300 Printing Machine Cost 1 2400 Motor vehicle 1 800 Electricity Bill 40 Phone Bill 25 Rent 450 Salary 460 Printing Ink 04 240 Total 5525 Appendix Two: Jan Feb Mar April May June July Aug Sep Oct Nov Dec Receipt Sales 360 570 362 965 1035 2400 2305 2350 2130 2745 2395 2630 Capital Introduced 500 500 500 500 500 Total Receipt 860 1070 862 1465 1535 2400 2305 2350 2130 2745 2395 2630 Payments Goods for Resale 190 100 85 73 50 20 150 93 42 150 70 110 Salary-Employee 460 460 460 460 460 460 460 460 460 460 460 460 Loan Payments+ Interest 270 270 270 270 270 270 270 270 270 270 270 270 Electricity Bill 40 40 40 40 40 40 40 40 40 40 40 40 Phone Bill 25 25 25 25 25 25 25 25 25 25 25 25 Room Rent 450 450 450 450 450 450 450 450 450 450 450 450 Ink for Printing 60 60 60 60 60 60 60 60 60 60 60 60 Total Payments 1495 1405 1390 1378 1355 1325 1455 1398 1347 1455 1375 1415 Net Cash Flow (635) (335) (528) 87 200 1075 850 952 783 1290 1020 1215 Opening Balance - (630) (965) (1495) (1410) (1225) (150) 695 1647 2425 3710 4725 Closing Balance (630) (965) (1495) (1413) (1225) (150) 695 1647 2425 3710 4725 5960