Business Plan Research Paper 

Business Plan Research Paper

Instructions/Descriptions

Business Plan Research Paper

OneDrop Business Plan

Proper hand washing is the most effective preventative measure available to combat communicable diseases. Improper hand washing contributes to more than 130,000 deaths in the U.S. each year through the transfer of communicable diseases in restaurants, daycares and hospitals (more than AIDS and breast cancer combined).

Studies have shown that proper hand washing procedures in these environments could cut down the spread of disease by up to 75%. Treatment of preventable diseases costs Americans over $95 Billion in direct costs each year(www.webmd.com). This is why I plan to start a disinfecting hand soap business called OneDrop. It is a start-up, sole proprietorship firm, which makes me the only owner of the business. In my plan, I envision to have full control of the business activities.

The purpose of a business is to make profits and succeed. I am optimistic that I will be successful before I have already done my analysis. I have identified key areas that will make me successful. These include gaining the customers’ trust in the product, pricing that reflects quality, and creating channels and getting customers.

I will use this ability to develop and retain as many customers as possible. I have been an entrepreneur, and I have worked in several production companies as an entrepreneur, and these skills will make me successful in this business.

As a person who has been interested in business since birth, I have worked for various /companies and I have gained a lot of experience in different areas of business. I have been able to assist multiple companies in producing similar consumer goods. Although I have produced similar goods, my product will be unique. The quality of our production and customer relationship will be what sets us apart.

Product

It is a product which, though not very new, is unique in terms of quality and ingredients. OnDrop disinfecting hand soap will be the root of our product as a business. (Pattanaro, 2014).

OneDrop hand washing detergent is a product that will manufacture using the current technology. It will include essential nutrients and substances which will be able to protect the hands from the diseases. The detergent will also carry critical hand cleansing elements, which will leave the customers’ hands healthy.

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Even the soap will have no harmful chemicals. This quality will mean that it will be entirely safe for use by the whole family. These benefits will make the customers want to try it out and eventually make high sales.

Section two

1. Market analysis

As a beginner, my market plan will be based on an in-depth analysis of the market. This analysis will help us in my business to know what to expect and also develop defense mechanisms against any potential threats. First, as part of the plan, I will do market research to know if my product is going to sell or not.

Market research will also help me decide on how to make the pricing of the product. This action is to ensure that I attract consumers. I will also ensure that I observe some of the companies I am expecting to compete with this business. This move will help me know how they operate and how I can operate betters in my industry.

I will then analyse my result and compare it to the expected production of my offering. This analysis will then give me the green light to start the production of my product, OneDrop.

OneDrop will be available to all regions across the world. In my plan, the business will open up sub-branches in all the areas across the globe. This action will ensure that every part of the world will be able to have access to the product from the branches. The product will be ready for use by all ages (Ekanem, 2017).

Given the nature of the product, it is harmless. Most of my consumers will be the working, middle class. They have the habit of purchasing similar products, which contributes to the health of their wellbeing (should i take this part out) . This class of people will make up the main percentage of the consumers.

Looking at the market trends, there are growing demands for quality handsoap. This trend is an indication that the market is growing, and my business plan will benefit from such growth. It is an opportunity I am willing to grasp. With good intentions, I anticipate high returns, which will make the business control the market.

As the founder and owner of the business, I will first focus on growing the business. I am not after high profits for myself. The amount I get will be sent back into the company to ensure that the market is stable. However, a certain percentage will be used to pay workers and purchase the required raw materials as needed for other operations in the business.

As time goes by, I will then get a considerable share of the profits after I have paid the employees. The shares will change according to the growth of the business (David, 2012).

As part of the business plan, I have set aside a risk management plan. This management plan will ensure that my business is ready to deal with any identified risks. The industry outlook will assist the management of the company in understanding the economic trends and coming up with an informed plan of ensuring that our product is not affected by such.

There are some segments that, due to competition, are not well served. These include geographical segments and demographical segments. Some of the current producers tend to ignore some regions and also produce a product that might not be economically friendly for many people. These segments will present an opportunity for the growth of the business, as we will be able and ready to serve them.

1. Marketing plan

In this, the business will help in the fight against disease-causing germs. The handwashing product will be packaged in bottles and taken to all regional branches for distribution. I will ensure that I develop an honest public image to gain customer trust. The pricing of the product will be done gradually as per the customer reactions.

The competitors might try to lower their prices, but I will raise my quality, which will make the customers buy my product. The business will not allow any credits, and so customers will be given products at a fair price. Quality is the only thing that will make my business succeed. Customer opinions and preferences will be a priority, which will ensure that I compete successfully with the competitors other than just in pricing.

As part of my marketing plan, I target to reach all ages and gender. The low class, the working class, and the upper class are all my target market. I will use social media to reach them and also the local broadcasting systems. By telling them about the health benefits of OneDrop, I will make them want to try the product out.

The marketing plan might cost around $500 and will take approximately six months to make it a success. This estimate is according to my business plan.

1. Location

The business production section will be located in a less populated area with plenty of space. This move is to make production more comfortable, and the place is going to be easily accessible by road for the secure transportation of products and the raw materials. The land will be purchased for that purpose. This action will ensure that the production is done with no pressure and for a long time. NEED WORK HERE !!!

1. Competition

The soap production companies will be the highest competitors. However, I intend to ensure that the production of our product surpasses the competitor’s output. Gaining customer trust will help my business beat all the competitors. The competition will pose a challenge for my market entry, but through the plan, I have the company will prevail in such competition GOOD STUFF ADD MORE

Section 3

The management team should be people who have at least worked in various production companies. They should have at least 3-year experience in the management sector; these individuals should also show excellent leadership skills. They should be creative and ready to drive success.

The functional areas of the business are the production area, the marketing area, and the selling areas. The reduction manager will head the production section. The marketing manager will lead the marketing and sales sections. These managers will report to the head manager, who will then report to the Chief Executive Officer.

In terms of salaries, the CEO will earn a monthly salary of $1000, the head manager will receive about $920, and the other managers will make a total of $800 each. Other employees will earn a salary depending on their performance. They will also be given motivation in terms of allowances and overtime payments.

The management sector is a crucial part of the business. This move is because the success of the company will depend on how well managed. The managers will be expected to be as creative as possible. Consultants, business websites, and ground informants will be reliable outside management resources.(should this be here??) They will equip the managers with information on areas of improvement within the business.

One-drop hand washing detergent will go through a production process. It will be processed in our processing plant and mixed with recommended ingredients according to the law. The new technology will be applied, where digital machines will be used to provide labor in the plant (Chiulli, 2018).

It will do the packaging of the product into bottles ready for transport. Wholesalers and suppliers will then be given a chance to make their opinions. This move will strengthen the relationship between suppliers and the company. For now, the personnel will be aiming at achieving fairness in terms of payments.

They will be expected to provide ideas for changes in the development of OneDrop. In the future, when the business expands, they might want a pay increase and promotion in their position of work. These personnel should pose high production and marketing skills. I will ensure that I give them weekly training on quality of production, communication skills, and customer relationship management skills.

According to research, the personnel required is available. However, everyone has different skills and capabilities. This situation will force the business to select only the most experienced and competent employees. In case of an accident, the employees will compensate as we have partnered with several insurance companies who will cater to any accidents. Employees working in remote areas will have higher pay and a life insurance cover for them and their families.

Extra Stuff I Might Need to Add

Entrepreneurs are individuals who develop business ideas. They then take these ideas and put them into practice. I am one such person who has come up with a business idea and plans to put it into practice. My business is generally a goods production kind of activity (McSweeney, 2013)might can add somewhere else.

The product is safe and meets all current FDA regulatory requirements for soap.

business that will see completely new production, management, customers, and employees. These stakeholders are critical in ensuring the survival of the company as expected. A new business is always facing with many challenges. I am, however, ready to deal with any problem that might occur.

This product will be our primary offering, and we look forward to making a lot of profits from its sales. My business plan aims at filling the gap realized in the market about the availability of a quality hand wash (McGary, 2011). I realized that the world would always be in need of reliable and quality handwashing products.

There are constant discoveries of new diseases that can cause severe health problems, and doctors had recommended the regular washing of hands as the first precaution. Therefore, my handwashing detergent One-Drop will be the leading product in the business plan.

Section 4

Every business needs to be very clear about what it needs for a start-up. The initial and operating capital is planned well to ensure that the market will be stable. This will help the company to know how much money it requires, the number of profits expected, and how it could deal with debts.

1. Financial projections

Start-up expenses

My product has three units, which include the cost of production, the value of the advertisement, and the cost of marketing. The SP will be $100000, and the direct cost will be $95000 per unit. The total cost of sales will be around $300000, which is about 0.03% of the selling price.

Income statement

The monthly sales might be affected by marketing and seasonal factors in that. Poor marketing might lead to fewer sales. Some seasons don’t also allow for the purchase of a product, thus affecting sales (Pepels, 2016).

The monthly cost of sales will be around $25,000, and the gross profit will stand at approximately $300,000.

Income statement for three years

My business will not allow credits to prevent customer delays. Vendors will be paid on time as soon as they deliver the required materials or products to the target market. This move will be to promote and increase their morale at work.

My business will follow all the set of government policies all over the world. Taxes paid as required. Export duty and other fees to different regions will also pay. This move will affect the pricing of our product to different regions.

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Balance sheet for three years

1. Break Even Analysis

Contribution margin = sales – variable expenses

$300,000-$39800=$260,200

Total fixed expenses

Rent $5,000

Insurance $200

Utilities $ 800

Salaries $20,000

Break even analysis sales

$26,000/$260,200*100=9.99%

Section 5: Executive summary

In general, the business plan is about making profits and growing the company. It is base on producing consumer goods. Its success will depend on how well the product marketed. Customer relationship is also vital in making high sales. If implemented, the business plan might lead to the up rise of a strong business that will serve the whole world. It is estimated to make huge returns, attracting investors, and more shareholders.

References

Chiulli, R. M. (2018). undefined. Quantitative Analysis, 91-124. doi:10.1201/9780203741559-3

David M, E. (2012). undefined. Islamic Finance. doi:10.1093/law/9780199566945.003.0008

Ekanem, I. (2017). undefined. Writing a Business Plan, 9-10. doi:10.4324/9781315465814-3

McGary, M. (2011). undefined. The ASHA Leader, 16(6). doi:10.1044/leader.miw.16062011.np

McSweeney, B. (2013). undefined. International Marketing Review, 30(5), 483-504. doi:10.1108/imr-04-2013-0082

Pattanaro, G. (2014). undefined. Tourism Management, Marketing, and Development, 221-237. doi:10.1057/9781137354358_12

Pepels, W. (2016). undefined. doi:10.3790/978-3-428-54930-6

Business Plan Research Paper

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