Business plan

.....it is worth living

Uni-Life Corporation
University of Greenwich
Medway Campus
Chatham
ME4 4TB

Phone: 0123456789
Fax: 0123456789
Mobile: 0123456789
E-mail: admin@uni-life.com
Web site: www.uni-life.com

Uni-Life Business plan prepared 2010 Page 1

 TABLE OF CONTENTS

Business overview ....................................................................................................................................... 3

Mission........................................................................................................................................................... 3
Objectives ..................................................................................................................................................... 3
Keys to success ........................................................................................................................................... 3
Introduction ................................................................................................................................................ 3
Business strategy ...................................................................................................................................... 4
Tactics ............................................................................................................................................................ 5
strategic issues ........................................................................................................................................... 5
Core values ................................................................................................................................................... 6
Business environment .............................................................................................................................. 7
Internal environment .............................................................................................................................. 7
Micro environment ................................................................................................................................. 11
macro environment ................................................................................................................................ 13
SWOT analysis .............................................................................................................................................. 14
MARKET analysis ........................................................................................................................................ 16
Current position and research ........................................................................................................... 19
Market segmentation............................................................................................................................. 19
Financial budgets and forecasts ....................................................................................................... 21
Break-even Analysis............................................................................................................................... 21
Payback method of the Business ...................................................................................................... 25
Net present value of the business..................................................................................................... 26
Profit and loss Account ......................................................................................................................... 27
Balance sheet ............................................................................................................................................ 29
Cash Budget ............................................................................................................................................... 30
Appendix .......................................................................................................................................................... 33

Uni-Life Business plan prepared 2010 Page 2

 BUSINESS OVERVIEW

MISSION

Uni-Life mission is to provide finest quality and variety of interesting

merchandise options to students at ever low bargain price. Uni-Life wants each
student to feel as though he/she has gotten West End treatment at a bargain
price. Dedicated to customer service Uni-Life will give its patrons the kind of
service that is respectful and prompt.

OBJECTIVES

Uni-Life’s objectives for the first four years are:

 To provide a wide range of merchandise at a reasonable price

 To achieve a healthy profit margin within the first year
 To achieve a modest net profit by year two
 To develop an effective, well placed e-commerce site
 To launch a laser focused marketing campaign in a controllable and
measurable market that drive customer’s towards the company’s website
 To be an active and vocal member of the student community and provide
continual re-investment through participation in students union
activities.

KEYS TO SUCCESS

Uni-Life’s keys to success are:

 Marketing
 Product quality
 Sell a broad range of products
 Provide for the satisfaction of 100% our customers
 Be an active member of the student community
 Encourage customer input

INTRODUCTION

Uni-life is a start-up online, retail, supply chain and convenience store of the 21st
century future, designed with students in mind and fulfilling a need that will
continue to grow into existence in a foreseeable future.

With a centralized and modernized warehouse and distribution centre, Uni-Life

will be providing high quality and necessary services to university students
across the nation. We will provide online services that students will be very
much interested in making use of as it will be as simple as just registering and
making their intention known. Upon completion, student will be able to enjoy the

Uni-Life Business plan prepared 2010 Page 3

services we rendered ranging from online shopping, delivery, price-comparison,
in store retail shops to social well-being issues. In order to impact the future of
the nation, students deserves these fantastic services that will meet their most
essential daily needs while at university because we believe university life “it is
worth living”.

We will offer the cheapest price but high quality products and services that can
be found on any campus nationwide. We have a centralized system in place that
offers solution to online merchants of physical, non-perishable products.
Furthermore, the company utilizes a consolidation approach in handling all
product returns that allows online merchants to instantly save bad sales, restore
customer satisfaction and stimulate repeat sales, while offering students a
convenient, centralized online location to claim returns. By creating a new
service category and utilizing the first-mover advantage, and with an aggressive
marketing plan, easy to use website and efficient distribution system, Uni-Life
positions itself for rapid growth and gains a strong opportunity to raise entry
barriers for possible competition.

We expect to experience a steady growth throughout our first year even though
we are new business enterprise. As we become more familiar to the students we
expect to gain more market share and would like to see progressive growth in
the following year.

3
Sales
2 Gross Margin
Net Profit
1

0
Year One Year Two Year Three Year Four
-1

Fig.1. First four year predicted growth

BUSINESS STRATEGY

Uni-Life Corporation we will benchmark our objectives for sales promotion,

mass selling and merging internet marketplace. We are focusing our marketing
effort on student community that wants interesting variety of merchandise at
bargain prices. Students are always looking for proactive, non-invasive ways of
having their needs met. Our strategy is to treats this student as one big family in
a community. This means our marketing resources will be centred on both sales

Uni-Life Business plan prepared 2010 Page 4

promotions in means of events, display and personal sales such as customer
service and a good friendly atmosphere. Our long range goal is not only to
dominate the market but also to become iconic. Initially the company will:

 Engage in web based marketing for the next year to generate awareness
of the company, product and service information.
 Engage in outdoor advertising and liaising with student union in
organizing events with a view of providing general awareness to the
student at large and direct individual to our company website.
 We will stay within our marketing budget
 Marketing promotions will be consistent with the mission statement

TACTICS

Uni-Life will process all of its sales online through a secure socket layer (SSL) and
internet connection. All orders will be charged to individual students’ credit and
debit cards.

Uni-Life will ensure the website is easy to navigate as well as to order from,
doing this will ensure that customers are more likely to transact on our website
because research does show that too many sites that are not intuitive enough
loose customers.

Employees will be paid straight wage but can achieve a semi-yearly bonus based
on profits and customer satisfaction rates. All potential sales will be attended to
in a timely fashion.

All goods are negotiated and bought directly from the manufacturer; cutting out
the middle man cost by so doing we could possibly offer the products to student
at unbelievable good bargain price. Ensuring we negotiate and re-negotiate a
good deal with other service provider such as Thomas Cook, Disney, virgin
Holidays and Atlantic, in order for us to be able to offer the cheapest deal to our
customer.

STRATEGIC ISSUES

We plan to project a full-time retail store that student can look to as a personal
asset to their academic and social welfare hub on campus. Emphasizing our full-
time commitment as a student service provider, we intend to collaborate with
host of holiday and event’s organizers nationwide to be to offer the latest and
cheapest but quality oriented events to students.

Every student likes to enjoy comfort, ease, personalized services, online

services, socializing, discounts, variety and a perfectly good life while studying.
We have a structure in place that will deliver all of these to our esteemed
students in a well organized, beautiful cosy environment. Our mission statement
is well spelt out, our logo and brand name is so distinct, Management team are
highly experienced in business, our advisors and attorneys are some of the best
anyone can come around in the UK, Our Office and stores will be well located

Uni-Life Business plan prepared 2010 Page 5

where all student activities on campus takes place. Our staffs are well trained on
best practices and our liaison officers are cutting edge managers. Moreover the
design, finishing, furnishing and equipment at our various offices (our office will
be attached to the retail store) are the latest designs and technology, we will be
employing an aggressive method of marketing which also involves the use of the
media (i.e. radio, television, posters and hand leaflets), promotional campus
shows and gigs, a well organized set of vehicles and bikes for dispatch. Our
package is the first of its kind on any campus in UK.

CORE VALUES

The fact that we are in business to make a university life, a life worth living for
student by providing good quality merchandise and services at all time low
bargain price compared to any other competitor. This is the key to our long term
stability as we will strive for perfection to the last details. High morale boosting
within our staffs will be really phenomenal as they will be able to partake in
different activities and also have generous discount facilities.

Uni-Life Business plan prepared 2010 Page 6

 BUSINESS ENVIRONMENT

INTERNAL ENVIRONMENT

Uni-Life is expected to open its first store in Medway University campus in

August of Year one and the building will be leased with a down payment
£3,000.00 on a four year lease. Start up costs will be financed through a
combination of owners’ investment of £10,000.00 and short term loans. The
organization will be of a simple structure consisting of the managing
directors/owners and the employees.

Other miscellaneous expense includes:

 Legal fees for the organizations fillings

 Marketing and advertising consultancy fees
 Retail designing fees for store layout and minor renovations
 Office supplies
 Web Development and administration
 Utility fees such as phone, internet connection, heating and electricity.

THE COMPANY

Uni-Life will be incorporated as Private Limited Liability Company (PLC). This

will shield the owners from issues of personal liability and double taxation. The
investors are the shareholders and therefore will not be liable for more than
their personal investments. With the financing in place, Uni-Life will be able to
successfully open and maintain operations through year one. The large capital
investments of the owners will provide universities with a unique and innovative
store that will cater to the needs of students. The successful operation of Uni-Life
will provide a customer base that will allow the company to be self sufficient.

OWNERSHIP AND HUMAN RESOURCES

The business is a start-up private limited liability company comprising of seven

principal shareholders, Mr. A Omisore, Mr. S Jenkins, Mr. D Jayasinghe, Mr. A
Wickrema, Mr. O Adeyemo, Mr. S Chikwekwem and Mr. C Osagie.

The principal shareholders and owners of Uni-life Corporation strongly believes

that relationships should be forthright, work should be structured with adequate
room for creativity, and pay should be fair and equitable in relation to what the
industry is paying. With the right people in place, Uni-Life Corporation will have
the incentives to encourage quality people to stay.

Uni-Life Business plan prepared 2010 Page 7

 Fig.2. Accredited positions of the Shareholders

We have amassed a wealth of experience in online business, supply chain and

retailing industries since studying at university. Now that we’ve graduated and
reflected on certain facilities we didn’t have access to at the time of our studies,
we have decided to be providing students with an alternative way of meeting and
satisfying their needs at a cheaper and discounted price while enjoying first class
door-step delivery. Currently there are no establishments that offer the products
and services that we will be offering. Having had great work experience required
from a familiar background, we believe we have gained adequate knowledge and
expertise to run a successful business and make a healthy profit.

The position accredited to the team member involved with project is does so in
accordance with individual discipline.

Mr. Ayomide Omisore – Chief Executive Officer

Mr. Sylvanus Jenkins – President

Mr. Olushola Adeyemo – Director of Operations

Mr. Danushka Jayasinghe – Finance

Mr. Adheesha Wickrema – Marketing

Mr. Samuel Chikwekwem – Human Resources Manager

Mr. C Osagie- Administrative Consultant

Uni-Life Business plan prepared 2010 Page 8

  Director of operations – is in in-charge of investment and business strategy. In
change of general management of each established department –roles ranging
from decision making, organizing meetings and AGM
 Finance – is in-charge of payroll, budget, cash flow and profit and losses of the
company. The finance manager is also responsible to registering the company
with Registrar of companies and keep hold of relevant legal document in a safe
place.
 Marketing – is in-charge of business relation with manufacturer and supplier
and sometimes to the end user or consumer.
 Administrative Consultant– is in charge of inventory, takes stock of all items
we have and about to deliver.
 Human Resources manager – managing personnel to optimize the
performance of the company.

New staff will go through a recruitment agency where they will be sorted out to
find the most appreciate staff joining the Uni-life employee team for the
following roles

 permanent staff - either full time or part time

 staff with fixed-term contracts
 casual or agency staff
 freelancers and outside contractors

These roles identified by Uni-life management team will ensure that staffs are
trained for the above job roles. The personnel plan is included in the following
table. It shows the owner’s salary in which the shareholders only wants small
draw at the initial start of the business. Store employees will start at an hourly
rate and raises will come after the first year of operation. The managers will start
at a monthly salary, Full time employees will qualifies for full benefits.

Personnel Year 1 Year 2 Year 3

Owner/Manager £20,000.00 £21,500.00 £23,000.00

Full Time £16,800.00 £17,000.00 £18,500.00

Full Time £16,800.00 £17,000.00 £18,500.00

Part Time £6,000.00 £5,900.00 £6,300.00

Part Time £6,000.00 £5,900.00 £6,300.00

Total Payroll £65,600.00 £67,300.00 £72,600.00

Uni-Life Business plan prepared 2010 Page 9

 Fig.3. Personnel plan

Uni-life will strive to keep its staff employed for longer and motivated to work by
having a scheme involving employee performance which will be used to monitor
staffs performance and reward for hard work and overall attitude at work
includes;

 varied and interesting work - perhaps giving the opportunity to travel

 high-quality training and development - e.g. encouragement to study for
professional qualifications
 an 'open door' culture in which managers are approachable
 authentic management and leadership whose behaviour is consistent and
genuine
 respect for a good work-life balance - e.g. offering the opportunity for
flexible working
 proactive and regular communication
 regular appraisal and positive feedback - restating business objectives
and recognizing your staff's contribution
 requests for feedback, either in person or via staff surveys, on how
employees feel about their roles, the support they get, and improvements
to the business
 the chance to socialize with colleagues at organized events
 recognition and reward for ideas or competitive intelligence

This scheme will benefit employee and keep them willing and happy to work.

Uni-Life Business plan prepared 2010 Page 10

 MICRO ENVIRONMENT

CONSUMERS

With Uni-life, students are our major and primary targeted customer. Students
are always looking for proactive, non-invasive ways of having their needs met.
Our strategy is to treats this student as one big family in a community, therefore
concentrating our energy on making students shopping for goods and other
services that might be required easier and also readily available at a bargain
price.

COMPETITION

Uni-Life will be pioneer of this type of business as there are not many stores
dedicated to students and offering all items at almost manufacturer price. We
know the success of our business will attract other business to venture into our
business model. The major competitor right now is the convenience store in the
university and also bigger stores such as Tesco and ASDA. However, we will be
having the edge over our competitor in the sense that our products and services
are majorly tailored to students needs. We are offering more personalised
products to our students. Services such as welfare, housing, travel and events
management will make us more establish among students.

INTERMEDIARIES

To offer all time low bargain price to our customer, Uni-Life has eliminated the
need for intermediaries by dealing straight with the manufacturers. In all cases,
Uni-Life, acted as the intermediaries between the manufacturer and the
consumer. The products are purchased and stored in our warehouse and
distribution centre, where it can be transferred straight to the shelf or directly to
the customer.

SUPPLIERS

Uni-Life, have been in touch with major manufacturers such as Nestle, Procter &
Gamble, Coca-Cola, Sony and Unilever to mention a few. However, Uni-Life has
negotiated a direct supply of goods and services with these manufacturers.
Giving that the negotiations is in place already, the manufacturer is also the
supplier of their products tour warehouse and distribution centre.

Uni-Life Business plan prepared 2010 Page 11

 COMPETITIVE EDGE

Our principal competitors will either be the university owned convenience stores
or other established online retail stores. The university owned convenience store
has enjoyed a considerable amount of monopoly and recognition on campus, and
we know that the student populace are used to the service rendered by the store.
Because most convenience stores on campus are run by the University or the
student union, the issue of funds to run and build the business is not usually a
difficulty. Our competitors have built a long time track record in the business.
With all these and other important factors in mind, have carefully put in place a
solid plan for Uni-Life to have an easy penetration into the hearts of all the
students.

We have decided to shift ourselves from competition by furnishing ourselves

with strategic marketing advice from experts, fantastic branding and publicity,
promotions, discounts, special sales during Christmas, very beautiful and
attractive setting with state-of-the-art facilities like shelves, CCTVs, latest fridges,
deep freezers and cooling equipment, air conditioners, heaters. Special offers at
discounted prices, upgraded computerized transaction machine that can
dispense cash, stamps, Lotto and phone cards and other coupons, and our unique
door-step delivery of service, event planning for student parties, holiday trips,
accommodation services and personalized student-client account tagged “Uni-
life ID”. Our goal is to establish a service delivery to student in order to make
them comfortable enjoying our various packages while studying on campus. We
will be collaborating with our team of advisors including Company lawyer and
attorney to be furnishing ongoing business insights as well as pitfalls to avoid.

Another competitive edge we will have over our competitor is the large variety of
merchandise we will carry. With the sources we are working with, it will be
possible to carry many brand names at a discount price. Add a staff committed to
providing great customer service and Uni-Life will be an attractive store for the
students.

Uni-Life Business plan prepared 2010 Page 12

 MACRO ENVIRONMENT

DEMOGRAPHIC

 The age composition of the society: This determines the number of people
who will be in the universities and ultimately determines how large our
customers will be
 The number of people who are willing to go to the university
 The number of students who decides to drop out of university
 The amount of our profits also depends on the number of universities
available which is the main focus our business

POLITICAL/LEGAL ENVIRONMENT

 Stable political environment

 Government laws that favours business activities

ECONOMIC ENVIRONMENT

 The number of students who are studying and working part time
 The general economic situation of students

SOCIO CULTURAL ENVIRONMENT

 The general spending patterns of students such as going to the cinema

or/and eating out regularly

TECHNOLOGICAL ENVIRONMENT

 Improved faster delivery of services through technology.

Uni-Life Business plan prepared 2010 Page 13

 SWOT ANALYSIS

 Quality of products and services: Because Uni-Life gets its

Strength products directly from the manufactures therefore the
products they offer to customers are quality products. Their
online and phone delivery services also make it easier for
customers needs to be met accordingly.
 Better knowledge of customers need: The various partners
in Uni- Life business establishment are fresh graduates from
different universities, therefore they have better
understanding of the students needs and how best to
satisfy them.
 Nearness to the market: Our business establishment (Uni-
Life) is at the door steps of students who are the major
focus of our business. As a result we have full control of the
market.
 Good business relationship with customers: Again good
business relationship exists between Uni-Life and the
customers. This is so because the students have access to
Uni-life customer services and can interact with us and
express their views and opinions
 Ability to pull resources together: Uni-Life being a business
establishment made up of several shareholders whom are
actively involved in running of the business; there is the
ability to pull resources together in terms of finance and
ideas when most needed by the business.
 Wild range nature of services we offer: Because we offer
variety of services we are more likely to maximize our profit
even in the most fierce market competition.

 Limited nature of the market: Uni-life is limited to

providing services to university students alone. This may
Weakness
affect the ability of Uni-life to maximize profit during the
period students go on holidays. This is so because they
would be out of profit during that such period.

 From the comments, views, and opinions expressed by

customers, Uni-Life has opportunity of improving and
Opportunities
altering its services to satisfy the customers better. This will

Uni-Life Business plan prepared 2010 Page 14

 make us not only to retain our customers but also to gain
more customers.
 As a result of dealing with manufactures directly we would
be able to gain trust thus we may come up with more
negotiable deals and contracts.
 Proper understanding of the needs of the consumers is a
good opportunity to reach more consumers and to make
our markets wideness.
 As we are bringing the market right to the door step of the
customers we are effectively shortening possibility of losing
the consumers.

 Competition from new entry into the market with better

and improved delivery of goods and services
Threats
 How to cope with rising customer demand for goods and
services
 Dealing with challenges of sudden shift in customer’s needs
and choice on how they obtain goods and services
 Coping with the seasonal nature for the business

Uni-Life Business plan prepared 2010 Page 15

 MARKET ANALYSIS

THE PRODUCTS/SERVICES

Uni-life will offer the products that will meet the need of students. Our various
sections are categorized as Books, Movies, Music, Games, Digital Downloads,
Stationery, Publications, Computers, Office, Electronics, Home, Garden, Grocery,
Health, Beauty, Clothing, shoes and jewelleries, Sports and Outdoors, Tools, Auto
and Industrial offering products such as newspapers, magazines, soft drinks,
fruit juices, sport drinks, hot and cold snacks, various grocery items such as
canned soups, microwaveable meals, condiments, bread, auto products such as
fuel additives and cleaning supplies, pet supplies, paper products, toothpaste, etc.
All products will be in original packaging and branding such as Coca-Cola, Jolly
Green Giant, Charmin, Stouffer's, etc. The merchandise is purchased directly
from a variety of well known manufacturers such as Procter & Gamble, Unilever,
Nestle and as well as number of other generic branded companies. Stock will
arrive at our warehouse on a daily basis for distribution to our retail branches
and consumers directly if applicable. We will continue to find new product lines
that can be added to our inventory.

We have also added an attractive computerized transaction machine that can

dispense cash, stamps, Lotto and phone cards and other coupons as part of our
retail service package. Uni-Life will be designing a solid website to allow the
products stated available online, making it possible for students to pick up items
in store choice or get the items delivered to their door step. Uni-life is a big
dream that will definitely offer more than just the aforementioned services but
will certainly be the hub of business for students and will offer other social
welfare services according to students’ requirement. Some of these include
events planning; holiday trips for students, accommodation services for students
specially designed to fit into all customers taste. Our services will be “tailored
made services” and our Products will be delivered to individuals a one on one
basis, hence creating a personal interaction with all our student customers. With
this approach we shall create personal accounts for them on our website.

PRICES

We will be coming on board with the most fantastic and competitive prices any
one can think of. We are making sure this does not infringe on the quality of our
service and products, neither will it infringe on our profit as a company. We
intent to set a low price for our service range so that we can reap very high long
run profit. Our first approach is basically ‘’penetration pricing’’ so that we can
capture the market attention and increase our customer base at the beginning.
As we progress in our business we will also employ the various pricing methods
for our different products and services.

Uni-Life Business plan prepared 2010 Page 16

 PLACE

We have done our basic assignment of distribution channels and locations. We

are starting by locating our liaison offices and stores at major campuses that we
have surveyed and ascertained good for business. Our stores and offices will
always be close to student union buildings of most of the campuses. As we have
highlighted before we intend to ensure our convenience stores which would be
our main distribution channel on the campus and our office are all in one
building facility but departmentalised.

We are making a concrete arrangement with all manufacturers we are

representing for regular delivery of stock by reliable transportation to keep our
stock consistent. We also have our own Delivery vans and long buses for mobility
and in place to facilitate ease of mobility and direct delivery of product and
services.

We will be having an edge over a lot of our competitors in the area of Internet
usage. Prospective customers will subscribe to our services online. Customers
will pay subscription charges so that special accounts can be allotted to them and
they can always sign in any time. Apart from this, payments can be done using
our online payment system.

PROMOTION

Because of the nature of our business we have decided on aggressive promo. We

shall be mounting our sign post at all our stores and point of sales whenever we
establish our presence at events or participate in campus shows and events. To
enhance our sales, complimentary gifts of some of our sample products and
services will be given to prospective customers. We are also planning to give
student clients discount coupons to facilitate our promo.

We will not rule out the importance of advertisement in this case. We are already
talking to the media houses on the various opportunities we have to showcase
our product and services on the radio and T.V. This means our marketing
resources will be centred on both sales promotions in means of events, display
and personal sales such as customer service and a good friendly atmosphere. Our
long range goal is not only to dominate the market but also to become iconic.
Initially the company will:

 Engage in web based marketing for the next year to generate awareness
of the company, product and service information.
 Engage in outdoor advertising and liaising with student union in
organizing events with a view of providing general awareness to the
student at large and direct individual to our company website.
 We will stay within our marketing budget
 Marketing promotions will be consistent with the mission statement.

Uni-Life Business plan prepared 2010 Page 17

 PEOPLE

We are very sensitive to the fact that consumers are the ultimate determinant in
the market research we have done and we intend to always put customer
satisfaction in mind. Our target consumers are campus students; therefore we
are recruiting and training staff for the appropriate experience and skills needed
to interact and deliver. Our team will be made of skilful professionals and
workers ready to meet up with the best business practices no matter the
challenge.

PROCESSES

We have decided to be creative in devising a consistent methodology to

constantly encourage the loyalty of our student customers. We will achieve this
by regular updates, quality and timely service and product deliveries and e-
services. An example is the automated system we have that gives each and every
customer a statement of all the purchases they have made over a period of time.
E-mails shall also be sent to all our customers, notifying them of the discounts
and benefits that they are entitled to, after a period of patronising.

PHYSICAL EVIDENCE

Our business points, stores and offices will be neat, clean and tidy. We shall
employ cleaners, gardeners and other casual workers and supervisors to ensure
hygiene, security, environmental cleanliness to make UNI-LIFE a worthy place to
be. Security of our customers and their property when they come to our stores
and offices shall be ensured. We are also making plans to employ experienced
security personnel for all our business points, offices, events, stores.

Uni-Life Business plan prepared 2010 Page 18

 CURRENT POSITION AND RESEARCH

The student views on the access to amenities and convenience stores available
have changed a lot in the past few years. Students want fast, personalised and
convenient ways of transacting. They no longer want the orthodox approach of
gaining access to these services and will also like to have a central hub that will
look after their welfare. Therefore we intend to carve a niche in the market
aimed directly at students. During last semester (September to December)
revenues, retailers saw online revenues double and there were far exceeding
expectations according to business week. With growth arising from retailing
categories such as home and garden, electronics and apparel. An earlier study
conducted by Ernst & Young, before the holiday frenzy, already estimated that
total revenues for online retail and consumer products for the calendar year just
completed were around £25-30 billion. Currently, the average rate of returns for
Internet-based companies is 9%. In the coming year the value of returned
merchandise will be £1.5 billion. This indicates an amazing opportunity that Uni-
Life will fill by been innovative, sensitive to students’ need and offering a wide
range of flexible products in an environment that will nurture student socializing
and networking.

MARKET SEGMENTATION

Studies conducted by Ernst & Young reflect that the average return for internet
based companies is 9%. Uni-life intends to take advantages of the current
climate, as it an amazing opportunity for the company to bring forth, innovative
idea such as using its stores as well as the internet to hold a share in the market.
Our target market for our test store encompasses a five mile radius for university
students; its approximate population is 150,000 (based on census information).

The majority of the residents in this area are White (58.8%) Black (23.6%) and
Hispanic (19%) with occupations classified as students, professional/technical,
homemaker, or retired. The majority of university spends between 6,000 to
9,000 pounds per year on their lifestyle. The median income student spends an
average £34,248 to 35,000 during the three years of their studies this figures can
varies, however when compared with student from New York area produced an
average figure of reaching $48,096. The typical ages range is between is 25 - 34
(22.4%) or age 34 - 44 (23.1%) with a median age of 44.4 years old and an
average age of 32 years old. Using this information Uni-life intends to provide
services, on average taking 34.4% with all the relevant income and age ranges
factors included every year.

Uni-Life Business plan prepared 2010 Page 19

 Average student Spending over 3 years
period

Ages 18-21
Ages 22-25
Ages 26-29
Ages 30-35

Fig.4. Market Analysis of students’ expenditure over a 3 year period

IDENTIFYING THE MARKET

Average Spending over three years

Ages Year 1 Year 2 Year 3 AVERAGE

over three
years
18 – 21 £ 7,000 £ 7,000 £ 7,000 21,000,00
22 - 25 6,250.00 6,250,00 6,250,00 20,000,00
26 - 29 5,300,00 5,300,00 5,300,00 15,900,00
30 -35 4,000,00 4,000,00 4,000,00 12,000,00

Target Market Segment Strategy

Uni-life focuses on the student conscious consumer who is looking for value as
well as quality. The average spending of student varies between the different age
group, which shows that younger student spend more money than older ones
during the course of their three years studies. If we can attract and keep these
consumers the word will continue to spread about what our store has to offer,
and we can easily achieve our aim of taking on average 34.4% from overall of
student expenses on services.

Uni-Life Business plan prepared 2010 Page 20

 FINANCIAL BUDGETS AND FORECASTS

The following sections will outline important financial information.

 Growth will be moderate; cash flow steady

 Marketing cost will remain below 15% of sales
 The company will invest residual profits into financial markets to attain
company stability before looking forward to company expansion
 Future cash investments will use NOV projections to achieve maximum
return with limited risk.

BREAK-EVEN ANALYSIS

A break-even Analysis table has been completed on the basis of average

costs/prices. With fixed costs, average sales and average variable costs, the table
and chart show what we need per month to break-even.

Record-able compact disks - 100 pack

Our selling price per unit = £ 16

Variable price per unit = £ 11

Number of
Fixed costs Variable costs Total cost Revenue Profit Loss
Units
0 £1,000.00 £0.00 £1,000.00 £0.00 £0.00 £1,000.00
100 £1,000.00 £1,100.00 £2,100.00 £1,600.00 £0.00 £500.00
200 £1,000.00 £2,200.00 £3,200.00 £3,200.00 £0.00 £0.00
300 £1,000.00 £3,300.00 £4,300.00 £4,800.00 £500.00 £0.00
400 £1,000.00 £4,400.00 £5,400.00 £6,400.00 £1,000.00 £0.00
500 £1,000.00 £5,500.00 £6,500.00 £8,000.00 £1,500.00 £0.00
600 £1,000.00 £6,600.00 £7,600.00 £9,600.00 £2,000.00 £0.00
Fig.5. Break-even Analysis table

According to the table the break-even point of Record-able compact disks - 100
pack.

Break-even point (Volume) = Fixed costs / Selling price per unit - Variable
price per unit

= Fixed costs / Contribution per unit

= 1000 / 16 - 11

= 1000 / 5

Uni-Life Business plan prepared 2010 Page 21

Break-even point (Volume) = 200

The following graph illustrates the results of the Break-even analysis.

£11,000.00

£10,000.00

£9,000.00

£8,000.00
Break-even point
£7,000.00

£6,000.00

£5,000.00

£4,000.00

£3,000.00

£2,000.00

£1,000.00

£0.00
0 100 200 300 400 500 600

Total costs Revenue

Fig.6. Break-even Chart Item 1

Safety margin = Planned or Budgeted sales volume - Break even quantity

= 400 - 200

Safety margin = 200

Uni-Life Business plan prepared 2010 Page 22

External hard disk drivers - SEAGATE 1.5 TB

Our selling price per unit = £ 110.50

Variable price per unit = £ 101.50

As the main method of keeping the variable price to £101.50 we negotiated with
the SEAGATE manufactures and have reach an agreement. The following table
shows the break-even analysis of the particular product.

Number of Fixed Variable

Total cost Revenue Profit Loss
Units costs costs
0 £4,800.00 £0.00 £4,800.00 £0.00 £0.00 £4,800.00
100 £4,800.00 £10,150.00 £14,950.00 £11,050.00 £0.00 £3,900.00
200 £4,800.00 £20,300.00 £25,100.00 £22,100.00 £0.00 £3,000.00
300 £4,800.00 £30,450.00 £35,250.00 £33,150.00 £0.00 £2,100.00
400 £4,800.00 £40,600.00 £45,400.00 £44,200.00 £0.00 £1,200.00
500 £4,800.00 £50,750.00 £55,550.00 £55,250.00 £0.00 £300.00
600 £4,800.00 £60,900.00 £65,700.00 £66,300.00 £600.00 £0.00
700 £4,800.00 £71,050.00 £75,850.00 £77,350.00 £1,500.00 £0.00
800 £4,800.00 £81,200.00 £86,000.00 £88,400.00 £2,400.00 £0.00
900 £4,800.00 £91,350.00 £96,150.00 £99,450.00 £3,300.00 £0.00
1000 £4,800.00 £101,500.00 £106,300.00 £110,500.00 £4,200.00 £0.00
1100 £4,800.00 £111,650.00 £116,450.00 £121,550.00 £5,100.00 £0.00
1200 £4,801.00 £121,800.00 £126,601.00 £132,600.00 £5,999.00 £0.00
Fig.7. break-even table item 2

Break-even point (Volume) = Fixed costs / Selling price per unit - Variable
price per unit

= Fixed costs / Contribution per unit

= 4800 / 110.5 - 101.5

= 4800 / 9

= 533.333

Break-even point (Volume) = 534

At the sales volume 534, we have break-even on this product. Considering the
results of the analysis, the sales volume of 800 would be recommended as the
safety margin for this particular product. As key to success in profits with this
product, Uni-Life will negotiate with the manufacturer for discounts on large

Uni-Life Business plan prepared 2010 Page 23

orders for an instance an order of 800. The graph bellow reflects the results of
the break-even analysis.

£140,000.00

£130,000.00
Safety
£120,000.00 Margin
£110,000.00
Break-even
£100,000.00
point
£90,000.00

£80,000.00

£70,000.00

£60,000.00

£50,000.00

£40,000.00

£30,000.00

£20,000.00

£10,000.00

£0.00
0 100 200 300 400 500 600 700 800 900 1000 1100 1200

Total costs Revenue

Fig.8. Break-even Chart for item 2

Safety margin = Planned or Budgeted sales volume - Break even quantity

= 800 - 534

Safety margin = 266

Uni-Life Business plan prepared 2010 Page 24

 PAYBACK METHOD OF THE BUSINESS

Initial investment of the business is £ 175000. The following table shows the
payback period of the current business.

Annual cash Cumulative cash

Year Revenue Expenditures
inflows balance
£0
1 £ 209800 £ 107760 £ 102040
(-£ 72960)
1.8 Payback period £ 72960 £0

2 £ 211800 £ 117350 £ 94450 £ 21490

Initial investment = £ 175000

Number of the Year =2

Total of the cash inflow to the Year = £ 196490

Payback period (Years) = Initial investment * Number of the year

Total of the cash inflow to the Year

= 175000 * 2

196490

= 1.78

Payback period (Years) = 1.8

Uni-Life Business plan prepared 2010 Page 25

 NET PRESENT VALUE OF THE BUSINESS

The net present value of current business at the cost of capital of 10% is shown
in the table below.

Year Cash inflows Discount at 10% Net present value

1 £ 102040 (1 + 0.1) -1 £ 92764

2 £ 94450 (1 + 0.1) -2 £ 78709
3 £ 101000 (1 + 0.1) -3 £ 77693
Total present value of cash inflows £ 249166

Initial outlay = £ 175000

Total present value of cash inflows = £ 249166

Net present value = Total present value of cash inflows - Initial outlay

= 249166 - 175000

= £ 74166

Uni-Life Business plan prepared 2010 Page 26

 PROFIT AND LOSS ACCOUNT

UNI LIFE 2010

PROFIT AND LOSS STATEMENT
2010
Income £ £
Sales
Sales of good/services 185000
Sundry Income 5000
Income variances 12800
Other Income
Sales on Business assets 7000
Total Income 209800

Cost of Sales
Cost of sales of goods/services 67800
Services 4200
Total Cost of Sales 72000

Gross Profit 137800

Expenses
General & Administrative
Bank Charges 1800
Credit card commission 900
Consultant fees 500
Office supplies 500
Licence fees 250
Business insurance 500
Total General & Administrative 4450

Marketing & Promotional

Advertising 2000
Promotion-General 500
Promotion-Other 200
Total Marketing & Promotional 2700

Operating Expenses
Newspapers & Magazines 390
Cleaning & Cleaning products 210
Sundry supplies 600
Books, games, stationary etc. 900
Equipment Hire 4000

Uni-Life Business plan prepared 2010 Page 27

 Total Operating Expenses 6100

Employment Expenses
Superannuation 2000
Work cover insurance 1000
Recruit costs, & training 900
Total Employment Expenses 3900

Salary & Wages

Permanent 65000
Casual 10000
Total Employment Expenses 75000

Occupancy Costs
Electricity 1700
Telephones 500
Rates 500
Rents 9600
Water 800
Repair 2410
Waste removal 100
Total Occupancy Costs 15610

Total Expenses 107760

Net Profit 30040

Tax on property 700

Tax on vehicles 1000
Total tax 1700

Retained profit 28340

Uni-Life Business plan prepared 2010 Page 28

 BALANCE SHEET

UNI LIFE 2010

BALANCE SHEET

Long-Term Assets £ £
Property, Plant, and Equipments 65190
Less accumulated depreciation 1000
Total Long-Term Assets 66190
Current Assets
Cash 102040
Short term investments 26000
Debtors 7114
Stock and work in progress 10900
Prepaid expenses 8600
Total Current Assets 154654
Current Liabilities
Short term debt 750
Current maturities of Long-Term debt 1050
Creditors 2000
Income taxes payable 10204
Accrued liabilities 500

Total Current Liabilities 14504

Total Net Current Assets 140150

Total Net Assets 206340

TOTAL LONG TERM LIABILITIES AND SHAREHOLDERS' FUNDS
Partners equity
Paid in capital 175000
Retained earnings 28340
Total Shareholders' Fund 203340
Long-Term Liabilities
Long-Term debt less current maturities 2000
Deferred income taxes 1000
Total Long-Term Liabilities 3000

Total Long-Term Funds 206340

Uni-Life Business plan prepared 2010 Page 29

 CASH BUDGET

UNI LIFE CORPORATION

CASH BUDGET - 2010
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Income
Office equipments 1500 1000 1000 1300 900 1000 850 1250 1400 720 815 1300
Stationary sales 4000 3500 3850 2600 4250 3700 2850 3200 3050 2780 4120 2000
Grocery sales 3600 2500 3870 4300 3520 2900 1780 2650 3125 4100 2690 1460
Clothing & other beauty
products 990 785 1115 980 1200 870 990 1030 1110 780 1220 900
Sports & outdoor sales 1100 980 785 1230 1010 970 860 985 1210 860 200 980
Industrial offering
products 150 170 200 130 300 400 400 140 100 300 300 300
Auto products 855 630 520 150 160 150 500 300 130 160 500 700
Transaction machine
sales 900 200 100 350 300 230 560 200 430 460 570 430
Online sales 6000 5200 4450 5140 4400 3485 5660 6340 4070 5680 4500 5130
Other 2100 1900 1750 2500 1100 2050 2150 1950 2000 2350 2950 2000
TOTAL
INCOME(A) 21195 16865 17640 18680 17140 15755 16600 18045 16625 18190 17865 15200
Payments(Costs)
Personal
Expenses
Wages & Salaries 5300 5300 5300 5300 5300 5300 5300 5300 5300 5300 5300 5450
Employers National
Insurance 937 937 937 937 937 937 937 937 937 937 937 943
Medical/Pension 20 50 200 50 10 30 600 700 50 30 30 400
Canteen 10 80 50 300 10 400 40 80 30 500 40 50
Travel 0 60 50 30 30 50 650 80 40 130 50 20
Uniforms 100 0 0 0 100 0 0 0 100 0 0 0

Uni-Life Business plan prepared 2010 Page 30

Controllable
Costs
Marketing Materials 90 100 300 600 50 50 90 30 90 30 90 120
Newspapers 20 20 40 50 50 50 50 30 90 10 90 10
Books & Magazines 20 20 50 50 30 300 50 50 40 20 70 10
Stationary Supplies 40 50 50 500 200 120 40 40 30 10 80 20
Stationary Local Purchase 200 270 385 250 435 220 290 310 265 475 320 320
Postage 0 30 10 50 40 40 10 20 90 20 10 0
Delivery Charges 50 10 30 50 50 140 10 30 10 30 10 10
Telephones 50 60 50 30 50 40 30 30 60 50 20 30
Debit Card Charges 20 10 50 230 300 30 20 20 10 20 10 10
Cleaning 10 20 90 30 40 100 10 10 20 10 40 10
Other 0 10 70 100 50 50 30 10 30 10 10 0

Property Costs
Rent Payable 800 800 800 800 800 800 800 800 800 800 800 800
Business & water Rates 120 100 90 70 110 120 130 95 120 100 110 135
Property Service Charge 40 30 40 50 30 340 30 30 30 30 40 10
Light & Heat 150 100 135 190 145 150 120 145 175 130 160 100
Insurance 100 70 90 80 85 70 70 85 70 80 100 100

Repairs &
Maintenance
Building & Electrical
Repairs 20 30 40 100 50 30 40 30 40 10 10 10
Equipment Repairs 10 40 50 100 60 400 30 30 30 10 20 20
Security Repairs &
Maintenance 40 50 50 20 80 40 20 20 70 20 20 30
IT Repairs &
Maintenance 50 40 50 20 40 40 40 10 30 20 10 10
Other 0 10 50 60 40 60 50 20 40 20 10 20

Uni-Life Business plan prepared 2010 Page 31

OTHER COSTS 0 20 50 20 50 70 0 30 20 10 10 0

TOTAL COSTS(B) 8197 8317 9107 10067 9172 9977 9487 8972 8617 8812 8397 8638
CASH
BALANCE(A-B) 12998 8548 8533 8613 7968 5778 7113 9073 8008 9378 9468 6562
OPEN BALANCE 0 12998 21546 30079 38692 46660 52438 59551 68624 76632 86010 95478
CLOSING
BALANCE 12998 21546 30079 38692 46660 52438 59551 68624 76632 86010 95478 102040

Revenue 209800
Total expenditures 107760
Total cash flow 102040

Uni-Life Business plan prepared 2010 Page 32

 APPENDIX

TE A M M E M B E R S

Ayomide Omisore
Sylvanus Jenkins
Danushka Jayasinghe
Adheesha Wickrema
Olushola Adeyemo
Samuel Chickwekwem
Chukwuma Osagie

S TA R T U P C HA R T A N D T A B L E S

3.5

2.5
Series 1
2
Column1
1.5 Column2

0.5

0
Expenses Assets Investment Loans

This start up chart above shows the distribution of finance also the start up cost below.

Start-up Expenses to Fund £13,000.00

Start-up Assets to Fund £73,500.00

Total Funding Required £86,500.00

Assets

Non-cash Assets from Start-up

Cash Requirements from Start-up £31,000.00

Uni-Life Business plan prepared 2010 Page 33

Additional Cash Raised £42,500.00

Cash Balance on Starting Date £0.00

Total Assets £42,500.00

£73,500.00

Liabilities and Capital

Liabilities

Current Borrowing

Long-term Liabilities

Accounts Payable (Outstanding Bills)

Other Current Liabilities (interest-free) £0.00

Total Liabilities £0.00

£6,000.00

Capital £500.00

£6,500.00

Planned Investment

Ted Brinkman

Jim Spencer

Other

Additional Investment Requirement £40,000.00

Total Planned Investment £30,000.00

£10,000.00

Loss at Start-up (Start-up Expenses) £0.00

Total Capital £80,000.00

£13,000.00

Total Capital and Liabilities £67,000.00

Total Funding

£73,500.00

£86,500.00

Uni-Life Business plan prepared 2010 Page 34

 G R O W TH P L A N

We expect to experience a steady growth throughout our first year even though we are new business
enterprise. As we become more familiar to the students we expect to gain more market share and would like
to see progressive growth in the following year.

The following chart gives a run down on forecasted sales we expect.

3.5
3
2.5 Perishable Goods
2
1.5 Non-Perishable Goods &
Services
1
0.5
0
Quarter 1 Quarter 2 Quarter 3 Quarter 4

REFERENCES

 Barclays Bank UK https://www.barclaysmicrosites.co.uk/start_up/landing_battery.html?WT.srch=1

 HSBC Bank Plc http://www.tsbc.co.uk/sbo/hsbckn/viewLesson.aspx?Lid=114&cid=1

 Bplans Organisations http://www.bplans.com/sample_business_plans.cfm

 Management & Communications Lecture notes. By Aaliyah B Essop. University of Greenwich

Uni-Life Business plan prepared 2010 Page 35