Running head: BSBMGT617 1

BSBMGT617 DEVELOP AND IMPLEMENT A BUSINESS PLAN

ASSESSMENT 1: PROJECT
Student name:
Student ID:
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PART A: REPORT (Analyzing the business plan of WorkChairs)

Executive Summary
The information given in the business plan of WorkChairs is reviewed and summarized in this
report. The information regarding action plan, business goals, competitive analysis, marketing
approaches, financial targets and product analysis is also evaluated in this report. The strengths
and weaknesses of the business plan are also compared, concluding the report.

Introduction

WorkChairs is a small business based in Studio City, CA that sells specialty ergonomic products
to local businesses and home office workers while also selling those products on their website
online. The company is operated out of the home of owners Jake and Lisa Wilson. Their son
Peter also is part of the company. The aim of the company is to provide quality products to
satisfy their customers desire to work in a healthy work environment that keeps them injury and
pain-free. WorkChairs also take pride in educating their customers on ergonomic issues that they
might not be aware of, to prevent them from experiencing pain and discomfort in the future as
well.

Further Analysis

Action plan

The formation of the corporation, product selection, creation of the website, search engine
submissions, link campaign, joining business groups, launch of cold calls and launch of affiliated
groups are the desired milestones of the company. The company feel it's crucial to hit all
milestones on time to get the business going before the slow summer season hits. They would
like to use the summer season to fine tune the company’s website and make sure that the
relationships with their manufacturers are all solid and working well. Furthermore, they would
use the Plan vs. Actual feature of Business Plan Pro® PREMIER to track the overall progress in
getting everything done on time.
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Business goals

Following are the goals and objectives of the business:

1. Becoming profitable after six months of operation.

2. Be the market share leader of specialty ergonomic products in the local market. There is
no official measurement, but it should be relatively easy to guess how the few
competitors are doing.
3. Have the company’s website be one of the top five websites for specialty ergonomic
products measured by both traffic and sales.
4. Have fun helping the customers work in a safer and more comfortable work environment.

Competitor analysis

People choose other brands over WorkChairs because of product selection, price, and customer
service. They want to work with a company that provides a number of ergonomic products to
choose from, including competing brands. People usually have questions before purchasing an
ergonomic product because, for the most part, they have never seen or worked with the product
before. It is efficient to provide excellent customer service to local customers to make them
happy and loyal. Currently, the primary competitive edge of WorkChairs is their product
selection and how they contribute in educating their customers. There are lots of websites that
carry ergonomic products, but most of them just list the products and don't give much
information about them.

Financial arrangements

The financial plan of WorkChairs is very simple and conservative. The company aims to keep
their expenses low while growing sales very slowly and under control. Because they don't have
any major expenditures to make, therefore, they don't need to have huge amounts of cash on
hand. The company just need enough to pay our bills and our salary, and provide additional
cushion to their account. The company expects to have a positive cash balance at all times.
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Management arrangements

WorkChairs is owned and managed by Jake and Lisa Wilson. The only other employee is the
manager of the website, Peter Wilson. The company don't initially plan on hiring any additional
employees, but there is a possibility of adding a local salesperson in the future. Following is the
brief descriptions of the job roles;

Jake Wilson - Jake built up a huge knowledge of products, developed relationships with
manufacturers, and made many valuable local contacts at businesses in the area which
WorkChairs can use. Jake will work as the President of WorkChairs as well as being the primary
local salesperson and expert on products.

Lisa Wilson - Lisa has more experience in the accounting and organizational aspects of the
business, so she'll be taking that role with WorkChairs.

Peter Wilson - Peter grew up working in the office store, but has since left that industry and
became a seasoned expert in Web development, online sales, and online marketing. Peter will be
in charge of the website and it's marketing for WorkChairs.

Marketing approaches

The marketing strategy of WorkChairs has two categories that both hit three target markets:

1. Local marketing strategy

2. Online marketing strategy

Local marketing strategy:

 Cold Calls - Jake Wilson will call on local businesses both small and large to educate
them on the company and its ergonomic products.
 Yellow Pages – the company will be listed in the local yellow pages under office
products, office furniture, etc.
 Business Groups - Jake and Lisa Wilson will each be joining a number of local business
groups in order to network and make contacts at local companies.
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Online marketing strategy

The online marketing strategy will be run by Peter Wilson who is in charge of the company
website.

 Search Engines - Peter Wilson is an expert in this area, and will have the site optimized to
do well in the engines.
 Pay-per-click Advertising – the company will spend a limited monthly budget on pay-
per-click advertising on Overture and Google for targeted ergonomic keywords.
 Link-building Campaign – the company will provide tons of information about
ergonomics that will be educational for people trying to solve health problems. This will
make the website an ergonomic resource worth linking to from other websites.
 Affiliate Program – the company will arrange an affiliate program for other websites to
sign up and earn a 10% commission on sales they refer to us.
 Word of Mouth – the company website will allow users to send pages from its site to
their friends or co-workers.

Product analysis

WorkChairs sells niche ergonomic products that are hard to find at standard office furniture or
office supply stores. Their primary products include chairs, work stations, computer accessories,
document holders, foot rests, lights, back/arm/wrist support and headsets. There is a large
number of specialty chairs that are built to solve various physical problems caused by sitting in
an office chair all day. These chairs aim to solve back, hip, leg, neck, shoulder, arm, and wrist
problems. Unfortunately, these products are often hard to find at general furniture stores or office
supply stores. WorkChairs aims to supply these products to both local market and in the online
space.

Strengths and Weaknesses of Business plan

Strengths:

The business plan is very appropriate to the business goals and objectives. It is simple and easy
to understand. It is providing enough information regarding selected marketing strategies,
financial arrangements, product analysis, personnel plan and development plan. The
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management arrangement is short and limited. However, there is a need for more employees.
The plan clearly defines the milestones, time to complete the targets, budget and person
responsible to fulfil the targets. This makes the business plan complete and useful.

Weaknesses

Despite of other factors which are beneficial, there is no risk analysis in the business plan. There
is no information regarding license and permit requirements. These are some points which are
unneglectable. The plan not clearly mentions the competitors. The business ratios are not simple
to understand to a lay man. That’s making the plan lengthy to give a read. Also, there is no
concluding statement which is the summary of the overall plan.
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PART B: BUSINESS PLAN (FAST TRACK COURIERS)

Executive Summary
The assignment provides an effective illustration of the business plan that Fast Track Couriers
need to work on and prepare an effective continues to process. This plan help in relating with the
different performance that the company does and the different directions through which it is
being implemented in the company and be provided for the beneficial for the customers. The
following study will provide information about the description of the business along with the
products and services that it provides. Different marketing activity along with the different
operations this will be suitable for the company to perform and make it works as per the needs of
the customers.
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Contents
Introduction......................................................................................................................................9
Description of the business..............................................................................................................9
Business products and services........................................................................................................9
Marketing activity..........................................................................................................................10
Business operations.......................................................................................................................10
Management and organizational structure.....................................................................................10
Personnel plan................................................................................................................................11
Financial plan - forecasting...........................................................................................................12
Risks analysis.................................................................................................................................12
Licensing and permit requirement.................................................................................................13
Conclusion.....................................................................................................................................14
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Introduction
A business plan is a written document that helps in describing how a business is going to
achieve its goals. It is a written plan under marketing, financing, and operational working
procedures. In this context an efficient illustration of the business products that Fast Track
Couriers produce and have a good reputation in regarding the packages across the city. The
company had been using operating in New South Wales for the last 15 years and their primary
function is to deliver medium and large sixe packages around the country. The company had
marketed through direct-sales, telephone, internet listings and mail-outs. The following study
will provide information about the description of the business along with the products and
services that it provides. Different marketing activity along with the different operations this will
be suitable for the company to perform and make it works as per the needs of the customers.

Description of the business

Fast Track Couriers is a courier company, which operates from New South Wales for 15
years. The primary work of the company is to perform delivering packages across the state. The
business has a good reputation in the marketplace and performs reliability with the performance
that it provides. The company currently plans on mainly targets small and medium-sized
business and this makes 80% of its customer’s base. The retention rate of the company is
admirable to 87% for the existing customers. The company markets through direct sales, internet
listings, and telephone services. The future plans of the company retain the customer base
through the use of new courier patterns that may be helpful and in providing new and digital use
of courier performances.

Business products and services

The company provides delivery products to its customers, has built a good reputation for
the past 12 years. The company grows effectively with annual sales of $17 million for the year.
The company's main service is to market sales, telephone and interest listings into the market.
The company has been reflecting their growth and profit margins and primarily targets small and
medium sized business which will help the company to grow their customer base to 80%. The
sales of the company had also increased to 5% and had been looking forward of delivering to
regional areas in NSW.
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Marketing activity
The company mainly focuses on the small to medium-sized companies and provides
couriers service to 80% of its customer base. The geographical location of the company is very
limited and currently, the company does not deliver outside the state. The sales and profit of the
company have increased to 5% on an average. The company has been making 80% of its
customer base with the use of its current plan and these needs to be analyzed and take into
consideration as per the requirement. The geographic location is considered to eb the main factor
for the company as currently the company has not been delivering its servicing outside Sydney
metropolitan area.

Business operations
The strategies that are being made in the company help in developing and getting the
result through the external market research and also indicates the shortage of delivery and
providing services to the NSW towns. The company is also looking to grow their opportunities
and sees on the ideal opportunities that are required to get the works on time and as per the rules
and regulations. The company has been working and marketing through direct sales and internet
listings and with this program taken into consideration of telephone follow-up the customer
ongoing satisfaction with the business had also increased.

Management and organizational structure

The company is organized through three different members that act as the Board of
Management and the responsibility for approving the business decision. The organizational
structure consists of the personnel as follows:

Managing Director The person is responsible for the operations that are
happening on the daily basis and takes the necessary
decisions as well.

Logistic Manager The person is responsible for the decision-making and

scheduling of the trucks and deliveries that are will be done
throughout the day.

5 office support employees The people are responsible for the maintenance of the
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accounts, administration, and sales of the company.

20 truck drivers The people are responsible for the delivering of the goods to
its destination.

Figure 1: Fast Track Couriers organizational Structure

(Source: Self-developed)

Personnel plan
The company currently allocates two drivers to load and unload heavy packages and the strategy
relating to this has moved forward. It is to remove the need for two drivers per truck through
installing of the automatic lift gate on the back of each truck. The cost of the construction will
lead to $10,000 per truck and this means that one of the drivers is needed for each of the truck
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has no heavy lifting will be necessary for this process. Under this, it will allow the company to
purchase 10 new trucks and use the existing drivers into the regional routes. Each of the truck
will cost $60,000 including the installation of the lifts. The money will be borrowed from the
bank and will be implemented in the business plan.

Financial plan - forecasting

The annual sales of the company have been recorded as $17 million under which the
estimated sales were recorded as $22 million. The annual profit, which included current net
profit, was resulted in $1.9 million and the estimated net profit resulted to $3.2 million. The costs
that the company incurred in the year was recorded were loan repayments $200,000 per annum,
operating costs were recorded as $2.2 million, Administrative costs were recorded as $100,000
and the labor costs were for that particular year. The salary range of the company was in range of
$32,000 to $75,000 per annum. The driver of the company was paid $45,000 per annum and the
age criteria were in range of 25-65.

Risks analysis

Probable risk Probability Effect Responsible Risk Involved

of staff
Occurrence

Uncertain use High On the use of Managing The techniques that are
of techniques the new Director being used may not
techniques that sometimes help the
are being sued company as the digital
in the company techniques may not help
in establishing the
performance effectively.

Lack of Medium On the profits Finance The financial works that

financing earned for the Manager are being conducted in the
year company may sometimes
make it hard for the
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company to perform
effectively.

Non-timely Low Rejection by the Logistics Delivering the services in

delivery customers Manager time may sometimes not
help the working
procedures of a company
as this is hard to maintain
time quality every time.

Inefficient Medium On the Administratio The business operation

business employees of n Officer that are being performed
operations the company by the company may be
inefficient as the works
that are being performed
to maintain the
performance are not to the
point and effective.

Licensing and permit requirement

As per the above table, a discussion can be made using the probable risk factors which include
the following factors like Uncertain use of techniques, lack of financing, Non-timely delivery,
and Inefficient business operations. All the factors provide different views in consideration of the
performances that may lead to inefficiency of the procedures for the customers. In this
consideration, the different skills that may be required in maintaining the risk factors are skilled
labors that are available to implement the plan and recruiting and training of the employees
would need to be done as per the requirements. Secondly, Licensing will help the performance of
the company to deal with the delivery concern, which the company may face at any given time.
All the skills need to be implemented in order to deal with the risks that may arrive at any
moment.
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Conclusion
As per the study which provides an effective illustration of the business and describing
the different business product and services. Marketing activity will provide the total customer
base earned during the year. A suitable organizational structure has also been provided to show
the affectability of the delivering of the products. The products description and the services that
the company provides will also help in deciding the performances of the company in an effective
manner. The business plan that has been provided in the above points will effectively provide the
business plan to the stakeholders. Under this the performances that are being done in the
company will effectively help the company with the different performance criteria as the
stakeholders holds a important place in context of the company. This will provide with the
necessary requirements and take necessary stakeholders procedures to take decisions as per the
requirement.

Outcomes of consultation
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A meeting is conducted with the key stakeholder (accessor) about the information essential for
writing a business plan.

The process that has been used to develop the business plan
As per the above discussion of the Fast Track Couriers and its performances criteria, a business
plan has also be implemented in the study which will provide effective discussion on the works
that the company does. The business plan includes the following points, which are as follows:

Business plan points Future expectations (Growth business plan)

Description of the company Leading courier company of New South Wales

Organizing and management The company has organized a new procedure in

dealing with the customers in which it provides
discounts to the customers

Services and products New services are being evolved in the company
which includes trading 24 hours continuously

Marketing and sales The company generally delivers small and medium-
sized companies through which services are being
provided including discounts

Funding The company decides to take the loan from the bank