Introduction

Where successful small Businesses are the backbone of any country’s economic
growth ,failure in running the business also have drastic effect on social
growth(Reference) ,therefore it is essential to manage the business properly .Not only it is
important to come with a rational planning before starting the business but also it is
mandatory to check the performance regularly against some indicators so that adjustments
can be made as and when required (reference).
This report is going to discuss how the small company “Hind systems”managed to run the
business effectively for one year.The detailed actions they took each month and key
performance indicators they used to assess the performance have been included in this
report ; however business plan ,the minutes of meeting and detailed analysis of company data
is attached in the appendix .
Analysis of Proposed Theories
Many theories have been proposed to grow the small businesses effectively. According to
………..Business growth depends on how we adjust our stretegies and resources to cope up
with the market demand (Refrences).This theory promotes the flexibility as one particular
stretegy and resources can not be efficient enough all the times ,thus it is must to adjust them
as and when required however it also requires continuous inspection after each period and
even one wrong decision can effect the business drastically. Moreover ,Theory of behaviour
states that the more likely the individual initiates to take the opportunities available to
him ,the higher the chances he will adjust the resources available to him which will result in
effective growth of business (References)Though this theory is good to take competitive
advantage ,adjusting the resources everytime according to new availabel opportunity may
bring chaos..…………..fouces on the knowledge of market is an essential aspect of business
growth .Having the eye on market trends is essential but there are some other factors also that
effects the business significantly ,we must take them into consideration as well .
Methodology
Our Business plan is based on the discussed theories ,after considering the limitations of each
.We will use simventure to get montly reports and then will check the report against key
performance indicators decided for each action.After analysis the necessary changes to plan
will be made to run the next month .We will continue this process for one year to grow the
business significantly.
Month 1
Actions taken
Contract out all the units for production
Change the supplier giving 60 days credit .

Performance analysis
KPI At the beginning At the end Improvement
Effort rate 100 72 28
 Enquiries -order 80% 100% 20%
ratio
State of mind Busy Refreshed Yes

Month 2
Actions taken
Hire the standard office equipment
Get the loan of £3000
Performance analysis
KPI At the Begining At the end Improvement
Time wasted due to 8 hours 5 hours 3 hours
lack of resources
Efficiency 82% 85% 3%
Bank Balance 3920 17011 13091

Month 3
Actions taken
Get the training in sales
Changed to Sourceline
Performance Analysis
KPI At the Begining At the end Improvement
Time wasted in sales 8 hours 4 hours 4 hours
due to lack of skills
Number of enquiries 15 20 5
Cost cutting per unit 6.41 6.25 0.16

Month 4
Actions taken
Get the training in communication skills .
Change to prosupply
Performance Analysis
KPI At the Begining At the end Improvement
Efficiency in 56% 86% 30%
communication
Time wasted due to 5 3.5 1.5
lack of
communication
skills
 Funds available for 1345 1568 223
investment

Month 5
Actions taken
Hired the standard tool for production
Performance Analysis
KPI At the Begining At the end Improvement
Efficiency Rate 86% 92% 6%

Month 6
Actions taken
Changed the product design by adding features from 88% to 93%
Changed the price from 480 to 490
Performance Analysis
KPI At the begining At the end Improvement
Number of orders 21 23 2
Number of enquiries 22 25 4
Gross profit Margin 100 104 4

Month 7
Actions taken
Formal set up of company
Searching for distributers
Performance Analysis
This month we invested time in setting up the company and searching for suitable distributers
only ,the effect of which cannot be seen in one month hence no performance analysis was
performed this month.

Month 8
Actions taken
Negotiate with the supplier
Performance Analysis
Since the time is invested in negotiating with the supplier ,no new other action has been taken
for which the effect can be seen this month.

Month 9
Action taken
Relocate to well managed office “240 sq feet”
Accepted the contract of Horizon Brothers.
Performance Analysis
KPI At the begining At the end Improvement
Number of orders 21 34 13
Efficiency 89% 91% 2%
Time wasted due to 14 hours 0 hours 14 hours
lack of space

Month 10
Actions taken
Work full time in office
Production of units by own
Performance Analysis
KPI At the begining At the end Improvement
Profit 1578 1642 64
Efficiency 86% 88% 2%

Month 11
Actions taken
Promotion via Press release
Performance Analysis
KPI At the begining At the end Improvement
Number of orders 36 33 3
Number of enquiries 22 24 2

Month 12
Actions taken
Contract some units out
Performance Analysis
 KPI At the begining At the end Improvement
Stress level Busy Refreshed Yes
Efficiency 86% 92% 92%

Summary of 12 months

July August september october November December January February March April May June
Enquiries 19 15 20 21 22 25 24 23 21 22 24 25
Orders 18 19 18 19 21 23 20 21 34 36 33 35
Sales 20 18 19 18 19 21 23 20 21 34 36 33
Bank 3920 17011 14438 14121 16459 16760 17945 20074 19903 22355 20800 20345
Balance

Profit 1239 1119 548 881 955 1287 1306 1240 1578 1642 1708 1974

Conclusion
We have successfully managed to run the company effectively ,however our target of earning
profit of 3000 has not been achieved .The main reason behind that is we had to manage the
resources and learn the skills before investing in marketing stretegy ,however if we continue
to run the business with the same modal ,it is very likely that we will achieve that target
within next 4 months.

Business plan
Executive summary
Background
Hind Systems has been running from a year and its core business activity is sale of
computers.The target segment of the company is solo business . During that time , it has
successfully created a sound financial condition and workable marketing stretegy.Mr.Rich
has bought the company ,Hind systems .He is working part-time from home to run the
business .He has excellent production ,marketing and IT skills .
Vision , Mission and objective
Company ‘s vision is to provide, solo business ,a system, what they actually want , extensive
features .The company will only focus on its target segment “Solo Business “to fulfil their
requirements .Company’s mission is to bring effectiveness and efficiency in the process be it
production or sales and the objective of the company is to grow the business significantly by
making monthly profit of 3000 and turnover 10000 respectively .
Purpose of the Plan
This Business plan aims to provide the guidelines to run the business for a year and to
provide the key performance indicators that will be used to assess the performance at the end
of every month .
Business Modal
Our end target to achieve at the end of 12 months is to produce the maximum number of units
by own and getting the guaranted minimum number of sales each month . Production at
house will cut the variable cost and getting more orders will reduce the fixed cost as
well .Our Business plan will work in three phases .In first phase the focus will be to invest the
time to improve the cashflow scenerio by getting 60 days credit period from supplier and
lending 3000 from friends and family .In second stage , we will work to bring more
efficiency and effectiveness , To save the effort and time ,all units will be contracted out for
production instead of producing some at home and that time will be invested in hiring the
required office equipment and improving the skills , sales and communication, via
training .This investment will bring efficiency and effectiveness in company ‘s growth and
owner’s prosperity both,afterwards the product design and price will be changed which will
result in increased gross profit margin since adding the features that target segment focuses
on and eliminating some additional componants ,making no value ,undoubtedly will push the
customers to buy product even at high cost .Finally we will focus on marketing ,we will hire
the supplier to guarantee minimum 15 sales and then we will relocate to managed office and
the owner will work full time in his business. As we will be efficient enough to produce the
units by own ,profit will be earned in two ways ,by cutting the variable cost of production
process and reducing the fixed cost by increasing the number of orders.
Controlling
Each month members of group would conduct a meeting to critically evaluate the results
compared to plan.For every step ,key performance indicators would be there to compare the
actual and planned facts .
Operations plan Overview
The key of healthy cashflow is extending the credit limit of supplier ® With an aim to
improve the cashflow ,we will switch to the supplier ,”Prosupply”,giving the credit facility
of two months .This will not only improve the cashflow but also will make the effective use
of the time and money as part of these will be used in improving the efficiency of business
(training and investing in suitable resources )key performance indicators will be bank balance
and ability to invest .
In order to improve efficiency and order rates we will contract out all the units for production
in initial stages until the resources are hired and skills are learnt.Though producing the part of
units by own cut the cost ,it is dangerous for efficiency and sales rate.As producing 1 unit
takes …….hours ,this will be used effectively for learning the essential skills which furthur
will increase order rates and profitability .
Product design : Changing the product design will improve the customer satisfaction and
order rate .As our target segment prefer extensive features ,our new design will attract them
more as we are going to improve the features by 6% .
Removal of feature that neither your customer needs nor any competitor provides is unlikely
to effect the growth of business , meanwhile minor improvement according to customer
performance can increase the number of sales (Reference). Hind systems will remove the
extra componant used in quality which is increasing the direct cost ,as quality comprises of
……….cost ;however neither our customers want it nor other competitors provide it .Cutting
the material will not effect any customer but increasing the features will .This overall will
increase the total cost to …….and price to ………which not only will improve the sales but
also will improve gross profit margin.
Organization plan overview
In initial period ,we will hire a standard office equipment which will save the time in sales
and marketing activities with increasing efficiency in work.After that we will focus on
learning the new skills .As communication skill is the backbone of company’s growth .To
convert all the enquiries into orders ,we will train staff “HP” in communication which will
increase 30% efficiency .Then we will hire a standard tool that is required for production as
we will produce the maximum number of units by own .Moreover after learning all the skills
and getting the supplier ,which will guarantee the particular number of sales we will set up a
company to work full time and will relocate to managed office as at this point we are sure of
getting enough profit to give salary to the owner which he is earning from working full time
for others ,”1500”.
Finance
We will require 3000 loan from friends and family to cover the cost that we will bear on
investing to bring efficiency in work .800 will be spent on training in subsequent two
months ,100 per month will be used for hiring the resources . In initial period ,Contracting
out all units will increase the variable cost (90 per unit) , the part of which will be beared
from this amount monthly.In nutshell ,each month the part of this amount will be utilized to
bring efficiency and the return of the investment will be used to pay the installment ,thus it
will not be a direct burden on the business.
Sales and Marketing
In third phase we will focus on sales and marketing .We will hire the distributer “Horizons
Brothers”who guarantee atleast 15 orders at the rate of 422.This will help us to reduce the
fixed cost burden.After that ,we will make a promotion via press release as according to the
report 40% of the solo businesses watch press reports ,thus we will choose this method to
promote which will increase the number of orders even more.