& & & & & & & & & & & & & & & & & & & & & & & &
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_ "’_ _ Write your message where it matters‌
Business Plan Georgina Akeroyd – Project Director Olivia Hunter – Marketing Director Matthew Wilson – Social Media & Implementation Director Lauren Macrae – Product Design Director Adam Clare – Finances Director Joe Hepperle – Organisations Director
Chalk&H’away&Business&Plan& &
1&
Contents
_ "’_ _
Executive summery – Pages, 5-6 •
Company Name – 5
•
Slogan – 5
•
Current Position in 2015 - 5
•
Business Concept – 5
•
Marketing
•
Capital Investment - 6
•
Company Roles - 6
•
Mission statement - 7
•
Vision statement -7
•
Objectives -7
Marketing Strategy – Pages, 8-14 •
Executive Summary - 8
•
Target Customers – 8
•
Unique Selling Point - 9
•
Pricing & Positioning Strategy - 9
•
Distribution Plan - 10
•
Marketing Materials - 11
•
Promotions Strategy - 11
•
Online Marketing Strategy - 11
•
Conversion Strategy - 12
•
Referral Strategy - 12
•
Retention Strategy - 12
•
Financial Projections -13
•
Competitor Analysis - 13
•
Competitor Price Point -14
Strategy - Pages, 15-17 •
7P’s approach – 15,16
Chalk&H’away&Business&Plan& &
2&
•
S.W.O.T Analysis
_ "’_ _
Product Development – Pages,&18-19 •
Design Development - 18
•
Product List - 18
•
Services - 19
•
Delivery - 19
Organisations – Pages, 20 •
Management & Organisational Structure -20
•
Human Resources - 20
Methods of Communication – Page, 21 Product Delivery – Page, 21 Manufacturing Process – Page, 22 Stocking Operations – Page, 22 Customer Services – Page, 23 Finances – Pages, 24-35 •
Start-up Capitalisation - 24
•
Product Costing - 24
•
Overheads - 24
•
Delivery Costs - 24
•
Other Investments - 24
•
Directors - 25
•
Marketing - 25
•
Insurance - 25
•
Financing The Company - 25
Chalk&H’away&Business&Plan& &
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Cash flow Forecast Charts – 26-27
•
Projected Profit and Loss - 28
•
The Balance Sheet - 29
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Cash Flow Forecast – 30-31
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The Opening Day Balance Sheet – 32
•
Ratio - 33
•
Break Even Analysis – 34-35
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Appendix – Pages, 36-49 &
! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Chalk&H’away&Business&Plan& &
4&
_ "’_ _
Executive Summery ! &
Company Name & Chalk&H’away&& &
Slogan
! Write&your&message&where&it&matters’& &
Current Position in 2015
& As&a&new&start&up&business&Chalk&H’away&has&been&built&upon&a&widespread&of&thorough& market&research,&to&ensure&we&are&able&to&successfully&appeal&towards&and&capture&our& target&market.&Chalk&H’away&believe&using&our&unique&selling&point&and&due&to&our&first& month’s&trade&period&of&the&year&being&Christmas,&that&we&will&instigate&a&strong&trading& start.&The&business&is&stocked&and&ready&to&begin&retailing&in&the&near&future.&& &
Business Concept
! The&gift&market&within&the&UK&is&worth&over&£5&billion&every&year.&The&industry&is&predicted& to&continue&growing,&especially&in&the&under&£10&segment,&all&of&which&Chalk&H’away’s& products&will&fall&into.&Consumers&are&demanding&products&with&elements&of&personal& exclusiveness.&&Our&distinctive&edge&of&applying&adaptable&personalisation&to&these&products& through&the&use&of&chalkboard,&will&attempt&to&satisfy&this&demand.&& & Initially&Chalk&H’away&will&sell&mugs&as&our&first&consistent&product.&The&chalkboard&mug&gift& will&include&a&piece&of&chalk&and&will&embody&a&high&quality&finish&for&a&reasonable&price,& below&many&of&our&competitors.&We&also&provide&a&parallel&gift&wrapping&service,&which&will& enhance&the&overall&completed&look&of&the&product,&completely&free.&&&&& &
Marketing
Chalk&H’away&are&initially&focusing&on&targeting&two&female&demographics,&one&group&aged& 21O25&and&the&other&30O50.&We&will&appeal&to&these&markets&through&operating&the&7P’s& premeditated&approach,&combined&with&our&adaptable&method&to&drive&sales&using&UK’s& public&holidays&which&run&year&round.&Due&to&the&ease&of&personalisation&of&the&products&this& creates&an&adaptable&marketing&environment.&& & Chalk&H’away&Business&Plan& &
5&
Capital Investment
_ "’_ _
& The&Directors&of&Chalk&H’away&have&100%&solely&funded&the&launch&of&this&venture&with&a& total&of&£426.&This&was&essential&to&ensure&the&business&had&the&most&promising&of&starts&
Company Roles & We&have&assigned&company&roles&to&the&6&directors&to&ensure&the&successful&running&of&our& company.& & Georgina&Akeroyd&–&Project&Manager,&Stocking&Manager&and&Sales&Advisor& Olivia&Hunter&–&Marketing&Manager&and&Sales&Advisor& Lauren&Macrae&–&Product&Manager&and&Sales&Advisor& Matthew&Wilson&–&Head&of&Social&Media&and&Sales&Advisor& Adam&Clare&–&Finance&Director&and&Sales&Advisor& Joe&Hepperle&–&Customer&Relations&Manager,&Human&Resources&Manager&and&Sales&Advisor& & With&these&job&titles&and&roles&in&place,&if&there&is&ever&any&query&raised&or&problem&within& the&company,&we&all&know&who&is&the&best&point&of&call,&depending&on&the&situation&at&hand.&& & We&have&all&agreed&however,&that&‘sales’&cannot&fall&to&just&one&person;&therefore,&we&have& all&taken&equal&responsibility&for&this&area&of&the&business.&&
Chalk&H’away&Business&Plan& &
6&
Mission Statement
_ "’_ _
Chalk&H’away&is&a&unique&company&founded&in&the&North&East&of&England.&Chalk&H’away& produces&visionary&personaliseable,&chalkboard&products&at&very&competitive&prices.&Our& products&are&produced&to&an&extremely&high&quality&and&are&incredibly&versatile&due&to&their& fun&personaliseable&quality,&which&makes&each&product&unique.&Chalk&H’away’s&products& make&the&ideal&gifts&for&many&people,&including&family,&friends&and&coOworkers.&The&price& point&makes&it&the&perfect&gift&for&a&‘Secret&Santa’&present.&& & We&are&intending&to&sell&our&products&in&both&a&physical&and&online&environment.&The& physical&stores&will&include&a&giftOwrapping&service.&The&online&stores&will&give&the&customer& the&option&of&delivery&service,&using&the&Royal&Mail&as&our&courier.&This&will&ensure&our& customers&will&have&the&highest&possible&quality&finish&to&their&products&and&a&quick,&reliable,& trackable&method&of&delivery.& & Chalk&H’away’s&customers&will&be&able&to&‘write your message where it matters’ whenever&they&want,&wherever&they&want.&&
Vision Statement At&Chalk&H’away&our&goal&is&to&become&the&main&company&in&the&UK&to&provide&personalised& gifts&allowing&everyone&to&be&able&to&‘&write your message where it matters’ whenever& they&want,&wherever&they&want.&&& &
Objectives &
• • •
To&breakeven&through&the&sales&of&our&mug&gifts,&within&the&first&2&months&of&trade.&& To&increase&profits&by&10%&by&our&second&year&of&trading&(December&16)& To&gain&5%&market&share&within&the&UK’s&personalised&gift&industry&within&3&years&&
Chalk&H’away&Business&Plan& &
7&
Marketing Strategy
_ "’_ _
Executive Summary ! Within&this&marketing&plan&we&want&to&establish&whom&our&target&market&is&and&why&we& have&chosen&to&engage&them.&Why&our&products&will&sell&well&and&what&their&unique&selling& point&is&within&this&industry.&&Why&we&have&chosen&to&competitively&price&our&products&and& why&we&have&chosen&to&be&in&that&specific&section&of&the&industry.&How&we&plan&to&reach&our& target&market&in&order&to&sell&our&products.&What&offers&we&have&decided&to&implement&in& order&to&generate&a&buzz&around&the&opening&of&our&company.&What&marketing&materials&we& have&decided&to&use,&to&attract&our&potential&customers.&Which&promotional&strategies&we& have&in&place&on&our&social&media&pages.&What&online&marketing&strategies&we&have&in&place.& Why&it&is&important&for&us&to&use&our&keywords&O&chalkboard,&reusable,&personalisation&and& creative&O&consistently.&Why&we&have&chosen&to&exploit&our&USP&in&our&conversion&strategy.& How&our&referral&strategies&will&work&by&capitalising&on&our&Facebook&page.&How&the& introduction&of&new&products,&will&help&with&the&retention&of&our&current&customers.& & &Finally,&what&does&this&marketing&strategy&cost&our&startOup&business&and&how&will&it&help& ‘Chalk&H’away’&in&the&long&run.& &
Target Customers & After&conducting&a&survey&to&pin&point&our&target&demographic,&along&with&what&products& our&customer&would&most&like&to&purchase.&We&have&found&that&our&company&and&its& products&are&most&likely&to&attract&females&in&the&20O30&demographic.&We&also&found&that& women&between&40O50&would&purchase&and&gift&the&products,&which&‘CHALK&H’AWAY’&will& sell.&&(See&appendix).&& & Therefore,&we&have&two&customer&profiles&to&cater&for:&& & Demographic&1:&&&&&&&&&&&&&&&&&&&&&&&Demographic&2:& & Age& 21O25& Age& 30O50& Gender& Female& Gender& Female& Occupation& Student& Occupation& N/A&& Location& Newcastle&& Location& Newcastle& Income& ÂŁ5,513& Income& Job& Dependent& (Student& Loan)& Education& N/A& Education& University& & & Chalk&H’away&Business&Plan& &
8&
_ "’_ _
After&looking&at&both&customer&profiles&we&believe&we&would&be&able&to&attract&both& demographics,&without&compromising&the&other.&We&also&believe&we&would&be&able&to&use& the&same&marketing,&advertising&and&communication&techniques,&to&target&both&of&our& customer&profiles.& & We&understand&that&these&products&are&readily&available&on&the&market&however;&they&do& not&have&the&personalisation&and&reusable&chalkboard&aspect&that&‘Chalk&H’away’&has.&& With&a&population&of&280,000&half&of&which&being&female&and&a&student&population&of&42,000& people&(See&appendix),&we&believe&Newcastle&will&be&the&perfect&place&to&startOup&our& business.&We&will&also&be&catering&to&females&of&all&ages&as&our&products&transcend&the&ages& and&make&perfect&gifts&for&everyone.& &
Unique Selling Point ! Our&unique&selling&point&is&the&chalk&aspect&that&is&consistent&throughout&all&of&our&designs.& We&strongly&believe&that&there&is&no&other&company&offering&the&same&range&of&chalkboard& products&out&there.&This&is&of&critical&importance&and&distinguishes&us&from&our&competitors.& With&the&tag&line&of&‘Write&your&message&where&it&matters‌’&we&believe&people&will&respond& positively&to&the&products&we&are&putting&out&into&the&market.&& !
Pricing & Positioning Strategy ! The&UK&gift&market&is&worth&in&excess&of&£5&billion&every&year.&(See&appendix)&It&is&a&very& lucrative&industry&and&shows&no&signs&of&slowing&down.&Looking&at&the&2014/15&greeting& cards,&stationary&and&gifts&trend&insight,&we&have&found&that&gifts&under&£10&are&selling& extremely&well&O&all&our&products&will&fall&under&this&banner.&Made&in&the&UK&is&also&a&huge& draw&for&consumers,&plus&there&is&resurgence&in&interest&in&functional&and&personalised&gifts.&& & All&of&our&products&tick&all&of&these&boxes.&& & It&is&essential&that&our&products&be&priced&competitively&enough&to&make&us&a&premium& player&within&our&industry.&We&also&need&to&be&considered&a&genuine&threat&to&businesses& amongst&our&competitors.&However,&with&both&of&these&in&mind&we&must&still&price&our& products&accordingly&to&the&target&market&we&wish&to&enter.&& & Young&millennial’s&who&are&currently&students&with&a&minimum&of&a&student&loan,&as&an& income&cannot&realistically&pay&a&premium&price&for&our&products.&&Therefore,&our&products& will&be&priced&competitively&to&entice&our&target&markets&to&purchase.&& & We&as&a&business&want&to&offer&quality&yet&affordable&products.&Our&cost&prices,&trade&prices,& retail&prices&and&profits&are&listed&below;&the&prices&will&be&explained&in&further&detail&in&the& finances&section&of&our&business&plan.& ! Every&company&has&competitors,&and&ours&especially.&We&are&producing&1&of&the&most& common&commodities&within&the&gift&industry,&mugs.&We&are&also&producing&special& Chalk&H’away&Business&Plan& &
9&
Christmas&baubles,&which&are&also&one&of&the&most&common&commodities&within&the& Christmas&decoration&market.&We&will&always&have&competitors&however;&the&unique&& selling&point&of&our&products&is&the&chalkboard&aspect&on&every&one.&This&allows&us&to&bring& something&different&to&the&market&and&help&us&to&capitalise&on&the&potential&profit&we&can& make&on&the&products&that&we&are&selling.& &
_ "’_ _
Distribution Plan ! & Cost&& Trade&& Trade&Profits& Retail&& Retail&Profits& Mugs& ÂŁ1.25&each& ÂŁ3.00&each& ÂŁ1.75&each& ÂŁ4.00&each& ÂŁ2.75&per&item& Mugs&Gift&Set& ÂŁ2.50&for&2& ÂŁ4.00&per&set& ÂŁ1.50&per&set& ÂŁ6.00&for&2& ÂŁ3.50&per&set& & It&is&our&current&plans&to&distribute&our&products&from&both&in&store&and&online&platforms;& & − Northumbria&University&O&We&are&intending&to&sell&at&Northumbria&University&on& December&7th&as&a&oneOtime&pop&up&stall.&This&is&for&potential&customers&to&see&for& the&first&time&the&quality,&range&and&prices&of&our&products.&We&are&seeing&this&event& as&an&opportunity&to&get&our&business&out&there&free&of&charge,&with&the&potential&for& sale.&& − Newcastle&Metro&Centre&–&We&intend&to&sell&a&considerable&amount&of&products&at&an& annual&shopping&event&held&in&February,&at&Newcastle&Metro&Centre.&This&is&an&event,& which&is&directly&linked&to&Young&Enterprise,&and&we&believe&will&allow&us&to&present& our&products&in&a&professional&and&exciting&manner.&This&will&also&allow&us&maximum& exposure&with&a&huge&footfall&of&potential&customers&that&we&can&approach.&& − Facebook&–&Facebook,&we&believe,&will&be&our&largest&source&for&potential&online& sales.&This&is&our&main&online&platform,&which&will&appeal&to&our&target&market.&The& Facebook&page&will&allow&potential&customers&to&purchase&online&with&complete& confidence.&& − Etsy&–&Is&our&second&online&presence.&We&intend&to&set&up&a&page&on&the&very&popular& market&place&website,&which&will&allow&our&products&to&be&exposed&to&potential& customers&all&over&the&country.&This&will&maximise&our&profits&and&allow&us&to&expand& our&business&without&unnecessary&overheads.& − Wooly&Blue&and&Y&L&&–&These&are&local&businesses&located&in&West&Jesmond,&we&want& to&approach&both,&with&the&potential&to&use&one&of&them&as&a&supplier.&It&is&our&goal& to&have&a&physical&presence&within&one&of&the&stores&as&we&think&it&is&important&to& support&local&businesses.&However,&initially&we&want&to&focus&on&the&launch&of&our& business.! − Cake&Stories&O&Is&a&local&cafĂŠ,&also&located&in&West&Jesmond,&which&will&be&great& exposure&for&our&products&O&especially&our&mugs.&&We&intend&to&see&if&they&would&be& willing&to&buy&at&trade&and&use&them&in&their&very&popular&cafĂŠ.&Or&if&not,&we&intend& to&see&if&they&would&be&willing&to&use&our&mugs&in&exchange&for&us&to&advertise&for& free&within&their&store.&However,&the&same&applies&here,&we&want&to&ensure&the& launch&of&our&business&is&successful&before&partnering&with&other&companies.&!
Chalk&H’away&Business&Plan& &
10&
_ "’_ _
Marketing Materials&
! Our&marketing&materials&we&believe&are&the&collateral&used&to&promote&our&business&and&are& therefore&essential&to&the&success&of&our&company.&& & Our&marketing&materials&include&business&cards,&which&will&double&up&as&packaging&used& with&all&of&our&products&O&they&will&hold&the&chalk&which&will&come&as&standard.&We&will&also& use&our&social&media&pages&to&announce&new&products&and&any&special&offers,&amongst&other& important&pieces&of&information.&We&will&also&have&eyeOcatching&P.O.S&that&will&attract&the& customers&and&hopefully&encourage&sales;&this&will&include&posters,&banners&and&leaflets.& Also&during&the&events&O&where&the&majority&of&our&P.O.S&will&be&being&used&O&all&of&the& people&working&on&the&stall&will&be&wearing&tOshirts&with&logos&emblazoned&on&them&to&push& the&identity&of&the&brand&further.& !
Promotions Strategy ! We&believe&the&promotions&strategy&is&one&of&the&most&important&factors&that&must&be& implemented&regarding&the&marketing&of&our&company.&As&we&are&a&brand&new&business&we& don’t&have&the&funds&to&implement&numerous&expensive&promotional&tactics.&However,& looking&to&the&future,&marketing&strategies&such&as&TV&ads&and&trade&shows&are&potential& promotional&strategies&to&look&at&as&our&business&grows.&& & In&order&for&our&business&to&flourish&at&first&we&will&increase&our&online&presence&by&utilizing& the&power&that&social&media&has&right&now.&We&will&announce&our&business&launch&on&our& Facebook&page&and&will&encourage&people&to&‘like’&and&‘share’&our&page.&They&will&be& rewarded&by&being&entered&into&a&competition&to&win&a&product&of&their&choice&from&our& collection.&At&this&time,&we&believe&this&would&be&the&most&effective&way&of&garnering&the& attention&of&our&target&market.&& !
Online Marketing Strategy ! We&have&concluded&from&our&survey&that&the&demographic&we&are&targeting&is&females&from& 20O30&years&of&age.&From&this&survey&we&have&also&found&that&80&of&our&results&from&the& survey&conducted&came&from&Facebook.&Therefore,&we&can&ascertain&that&our&demographic& is&particularly&tech&savvy.&So&as&a&business&we&expect&to&do&a&large&amount&of&our&trade& online.&&We&believe,&within&our&marketing&that&there&are&two&key&components,&which&are& essential&to&gain&a&competitive&advantage&online.&The&two&components&we&must&push& forward&are&as&follows:& & • We&must&include&our&keywords;&these&words&are&synonymous&with&our&company.& Ours&keywords&are,&chalkboard,&reusable,&personalisation&and&creative!&Along&with& our&tag&line&‘write&your&message&where&it&matters‌’.&All&of&these&aspects&link&in&with& our&unique&selling&point&and&give&our&company&a&defined&identity&within&the&market.& & Chalk&H’away&Business&Plan& &
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We&must&also&drive&our&social&media&strategy,&as&discussed&above,&in&our&online& marketing&strategy&and&again&in&the&strategy&and&implementation&section&of&our& business&plan.& & We&will&also&push&our&Instagram&and&twitter&pages&however;&they&will&be&for&image& advertisement&and&written&advertisement&of&our&company&respectively.&& ! •
Conversion Strategy ! We&intend&to&convert&potential&customers&into&paying&customers&by&showing&them&the& versatility&of&our&products.&They&are&the&perfect&gifts&for&friends,&family&and&colleagues.& Again,&by&exploiting&our&USP&&O&and&the&very&reasonable&price&that&the&products&are&priced&at& O&this&should&drive&our&sales.&These&gifts&allow&you&to&personlise&them&with&your&own& message&at&any&time&of&the&year&but&with&our&main&season&being&Christmas&they&also&make& the&perfect&stocking&filler.&We&will&also&encourage&all&of&our&customers&online&to&fill&in&a& feedback&questionnaire&to&help&us&improve&our&product,&customer&service&and&we&will&then& also&be&able&to&use&all&the&positive&responses&within&our&conversion&strategy.&This&will&in& turn,&help&our&overall&business.& ! !
Referral Strategy ! In&order&to&drive&our&referral&customers&we&have&decided&as&a&business,&in&our&very& important,&delicate&opening&first&months&to&encourage&people&to&‘like’&and&‘share’&our& Facebook&page.&The&incentive&as&discussed&–&in&promotions&strategy&O&the&customers&will&be& entered&into&a&competition&to&win&an&item&of&their&choice&from&our&selection&of&products.& The&initial&referral&strategy&will&not&purely&be&focused&on&sales;&it&will&be&focused&on&the& growth&of&the&business,&as&this&in&time&will&lead&to&the&growth&of&sales.&& !
Retention Strategy ! The&retention&of&our&customers&is&very&important&in&our&first&few&weeks&and&months&of& trade.&The&way&we&plan&to&do&this&is&by&bringing&in&new&seasonal&products&throughout&the& year;&for&example,&at&Christmas&we&have&brought&in&baubles.&&For&‘back&to&school’&we&may& bring&in&chalkboard&notebooks.&This&constant&influx&of&new&products&will&entice&customers&to& keep&coming&back.&The&ingenuity&and&originality&will&also&be&a&draw&for&many&customers.&The& products&will&be&produced&to&the&highest&quality&and&should&stand&the&test&of&time.&The& retention&of&customers&should&prove&this&in&time&also.&& !
Chalk&H’away&Business&Plan& &
12&
Financial Projections
_ "’_ _
& By&following&this&specific&marketing&plan&the&financial&expense&has&been&kept&to&a&minimum,& as&it&is&not&financially&viable&to&incur&extravagant&costs&at&this&stage.& & The&only&outgoing&costs&of&this&marketing&strategy&are&as&follows:& & − Newcastle&Metro&Centre&O&The&cost&to&reserve&a&place&at&the&Young&Enterprise&fair&at& Newcastle&Metro&Centre&O&ÂŁ35.00& − Etsy&O&The&cost&of&listing&items&on&etsy,&this&cost&will&be&minimal&and&dependent&of& how&many&items&we&‘list’&on&the&site.& − Business&Cards&–&The&business&cards&which&will&have&all&of&our&companies&information& on,&which&are&also&part&of&our&packaging&O&ÂŁ18.00& − Point&Of&Sale&–&This&is&used&at&both&of&our&trade&shows&which&we&are&currently&signed& up&for,&this&will&most&likely&be&our&flyers&O&ÂŁ15.00& − Stickers–&The&stickers&will&be&worn&by&the&sales&team&at&both&trade&shows&we&are&due& to&attend&O&ÂŁ10.00& − Cake&Stories&–&This&is&a&potential&cost&as&it&stands.&Depending&on&whether&or&not& ‘Cake&Stories’&wants&to&collaborate&with&‘Chalk&H’away’&and&how&many&of&our&mugs& they&are&willing&to&use&within&their&business.&O&ÂŁTBC& & In&total&the&cost&for&the&marketing&strategy&we&are&following&to&launch&‘Chalk&H’away’&is&O& ÂŁ82.00&(This&does&not&include&the&costs&of&the&product&materials&or&packaging)& & We&believe&that&our&Facebook&page&will&generate&the&most&online&attention&and&therefore& be&our&most&successful&tool&within&this&marketing&strategy.&As&it&encompasses,&sales,& customer&retention,&new&customers&and&will&ultimately&bring&us&the&most&profit&in&the&long& run.& & In&the&future,&dependent&on&how&successful&our&company&is,&more&money&can&be&driven&into& the&marketing&strategy.&This&will&result&in&the&potential&for&grater&profits&and&further&brand& exposure;&it&will&bring&us&the&highest&return&on&our&investment.&Once&we&understand&the& success&of&this&marketing&strategy,&we&can&set&future&goals&for&the&company.&These&will&help& expansion&and&growth&of&the&business&as&a&whole.& &
Competitor Analysis The&personalised&gift&market&had&sales&of&£5&billion&in&the&UK&in&2013,&with&scope&to&keep& growing&and&diversify&in&the&future.&&Research&shows&that&the&online&market&for&personalised& giftware&was&also&highly&competitive,&but&still&growing.&With&startOups&such&as& gettingpersonal.co.uk&launching&in&2005,&with&just&2&products&and&3&employees&(including&2& Managing&directors)&to&now&turning&over&more&than&£6&million&in&their&4th&year.&The& company&now&turns&over&£11.3&million&and&was&sold&to&The&Card&Factory&for&an&undisclosed& amount&in&April&2010.& & Chalk&H’away&Business&Plan& &
13&
As&well&as&established&businesses&selling&online,&the&homemade&personal&gift&market&has& seen&an&increase,&thanks&to&the&online&storefront&Etsy.co.uk,&which&specialises&in&giving&a& professional&platform&to&private&sellers&and&startOups.&With&over&2.2&million&new&members&& in&2010,&Etsy&will&be&the&perfect&place&to&promote&and&sell&our&product&to&the&mass&market& online.&& & Further&research&by&Jeremy&Corner&from&Springfair&international&in&2014&showed&that& Children’s&gifts&and&gifts&under&£10&were&a&strong&section&of&the&market.&As&a&result&of&this& we&will&be&aiming&for&a&price&point&of&£4&per&personalised&mug&and&£2&per&Bauble.&If&our& target&market&considers&these&price&points&too&high&when&the&business&goes&live,&they&may& be&reconsidered.&
_ "’_ _
Competitor Price Point Similar&to&our&brand,&our&competitors&focus&on&online&sales.&In&the&personalised&giftware& market&our&major&competitors&include:& & • Notonthehighstreet.com& • Prinster.com& • Etsy&private&sellers& • Vistaprint.com& • Snapfish.com& • FunkyPigeon.com& & Our&products&include&a&stick&of&chalk&O&that&comes&as&standard&with&any&purchase&O&it&can&be& wiped&away&and&re&applied&at&home&by&the&customers.&This&is&what&gives&us&the&competitive& edge&over&our&competitors.&Only&other&private&sellers&on&Etsy&provide&chalk&and&the&ability&to& personalise&at&home&again&and&again.&However,&the&lowest&priced&competitor&on&Etsy&with&a& product&as&high&quality&and&with&similar&specifications&as&ours&was&priced&at&£7.50&per&unit& (Not&including&P&P).&With&our&price&point&starting&a&£2&per&unit&for&Christmas&baubles&and&£4& per&unit&for&mugs&we&will&supply&the&cheapest&product&on&the&market&by&far,&with&the&same& quality&guaranteed.&& &
Chalk&H’away&Business&Plan& &
14&
_ "’_ _
Strategy & To&ensure&that&our&products&are&marketed&properly,&we&have&used&the&7p’s&approach.&This& approach&will&help&eliminate&any&issues&with&our&marketing&strategy.&
Product • •
•
The&homemade&feel&of&our&product&will&appeal&to&the&giftware&market,&as&it&will&seem& more&personal&to&each&individual&customer.& Our&products&are&manufactured&to&be&personalised&at&home&by&our&customer.&They& are&also&reusable&which&is&a&USP&for&our&products,&a&feature&that&our&larger&online& competitors&don’t&provide.&& Our&product&is&primarily&targeting&the&Holiday&and&Gift&market.&Our&products&give&us& the&perfect&opportunity&to&diversify&for&any&holidays,&as&well&as&being&the&perfect& birthday&gift&at&any&time&of&the&year.&& &
Price •
&
• •
Our&price&point&is&considerably&cheaper&than&that&of&our&online&competitors&and& competes&with&in&store&highOstreet&prices.& Mugs&O&ÂŁ4.00&each& Baubles&O&ÂŁ2.00&each&
Places •
•
Online&we&will&have&an&Etsy&Storefront,&Facebook&page,&Instagram&and&Twitter.&With& social&media&being&the&main&avenue&we&want&to&use&to&promote&our&product&via& giveaway&competitions.&Plus,&a&platform&for&customers&to&exhibit&their&own& personalised&products,&appearing&on&our&social&media&pages.&& Young&Enterprise&Trade&FairO&we&plan&to&sign&up&for&a&stand&at&the&Young&Enterprise& Trade&Fair&at&the&Metro&Centre&in&February.&This&will&be&a&great&opportunity&for&Chalk& H’away&to&reach&a&greater&target&market.&&
Promotions •
•
Social&media&will&be&the&main&tool&used&to&promote&our&product.&This&will&be&done&via& Facebook,&Instagram&and&Twitter&competitions.&We&plan&to&use&the&‘hash&tag’&feature& on&Instagram&to&share&the&products&with&a&larger&market.& We&will&send&out&over&4000&invitations&on&Facebook&to&launch&our&social&media& platforms,&encouraging&our&Facebook&friends&to&‘share’&our&page,&to&be&entered&into& our&competition&to&win&one&of&our&products.&&
Chalk&H’away&Business&Plan& &
15&
_ "’_ _
Packaging •
•
The&in&store&packaging&will&include&a&ribbon&tied&around&the&mug,&a&business&card&and& a&stick&of&chalk&will&be&presented&inside&the&mug&with&a&branded&sticker&on&the& outside&of&the&box.&Baubles&will&be&packaged&the&same&way&with&business&cards& inside&the&box.& Delivery&packaging&will&be&the&same&as&in&store&packaging&with&recycled&shredded& paper&inside&the&box&as&protection&for&the&mug&or&bauble.&This&will&add&to&the& homemade&feel&of&our&product.&
& &
People •
•
We&have&a&team&of&6&people&with&different&attributes&that&will&ensure&the&success&of& the&Chalk&H’away&team.&Three&of&the&team&members&are&studying&Fashion& Communications;&this&will&provide&us&with&a&creative&background&and&the&ability&to& spot&trends&and&designs&that&are&on&trend&and&aesthetically&pleasing.&& Of&the&3&remaining&team&members&2&are&studying&Sports&and&Exercise&Science&and& the&final&member&is&studying&Game&Design.&One&team&member&also&has&experience&in& running&and&maintaining&a&small&online&personal&training&business.&
& &
Process •
•
Chalk&H’away&will&guarantee&orders&will&be&dispatched&within&24&hours&of&payment,& this&will&ensure&that&the&customers&receive&their&products&promptly&and&that&their& delivery&is&on&time.&The&speed&of&their&delivery&will&depend&on&the&postage&details& they&have&chosen.& We&have&3&creatively&minded&team&members&O&project&director,&marketing&director& and&product&director&O&that&have&individually&designed&the&logo,&the&product&and&the& packaging.&This&ensures&our&product&is&displayed&and&packaged&in&an&aesthetically& pleasing&way&for&all&our&customers.&It&also&displayed&our&products&to&their&best& potential.&&
Chalk&H’away&Business&Plan& &
16&
_ "’_ _
S.W.O.T Analysis Strengths •
We are launching at a potentially profitable time of year.
• There is plenty room for product development.
Weaknesses • We are a newly established business.
• New skills must be acquired from each team member to ensure
• Our products are manufactured to an extremely high quality, but our prices still remain affordable to our target market.
• Our products all have a
product quality.
• Little to no experience in distribution of products.
• We don’t have a huge amount of seed money in order to establish
personaliseable aspect which can be reapplied wherever they
our business. •
customer wants. •
The lack of advertising could harm the success of the business in the
Our products are all competitively
first few months of trade.
priced to attract our target market.
Opportunities Threats • Huge Christmas market in which we • Potential sales market drops after launch, we need to exploit at this time of year. •
High profit margins on each
the Christmas rush.
• Competitors have a larger range of products and more recognisable
product we produce. •
Easy to diversify our products and
brands. •
expand our product portfolio for
have more money to pour into
other holiday markets. For example, Valentines Day, Mothers Day,
marketing and advertising. •
Fathers Day etc. •
are a North East business will help
make to ensure our company •
Business expansion, into other products and market places.
Chalk&H’away&Business&Plan& &
These products are available online, however, we are hoping the fact we
We can reinvest the profits we continues to flourish.
Other more established companies
attract our customers •
Our manufacturer could potentially go bust, leaving us to resort to our ‘Plan B’ option.
17&
_ "’_ _
Product Development Design Development To&convey&what&our&product&is&to&the&public,&we&created&a&tag&line&to&accompany&our&logo.& This&tag&line&was&created&to&intrigue&our&consumers&and&to&evoke&their&creative,&personal& side.&& & This&slogan&will&appear&under&the&name&of&our&product,&as&seen&bellow.& & &
_ "’_ _ Write your message were it matters
Product List Materials&needed&(quantity)&and&price&list.& & Business&Cards&O&ÂŁ18.00& Black&Ribbon&O&ÂŁ5.00& Mugs&O&ÂŁ40.00& Baubles&O&ÂŁ90.00& Chalk&O&ÂŁ4.39& Boxes&O&ÂŁ37.99& Stickers&O&ÂŁ10.00& & Outer&delivery& Newspaper&O&shredded&recycled&newspaper&paper&O&ÂŁ0&& & We&have&decided&to&keep&the&colour&scheme&mostly&monochrome,&to&enhance&the& chalkboard&aspect&of&our&products&and&its&original&identity.&To&add&colour&to&our&products,&to& make&them&more&aesthetically&pleasing,&we&considered&using&red&ribbon,&as&this&colour& brings&through&themes&of&events&such&as&Christmas&and&Valentines.&This&will&add&a&welcome& pop&of&colour&to&the&Christmas&bauble.&We&will&also,&package&our&products&in&cardboard& boxes,&stuffed&with&recycled&shredded&newspaper&and&our&complementary&stick&of&white& chalk.&They&will&also&be&adorned&with&our&‘Chalk&H’away’&stickers&and&if&bought&in&store,&by& tied&with&an&elegant&black&ribbon,&to&create&a&beautifully&presented&final&product.!& Chalk&H’away&Business&Plan& &
18&
_ "’_ _
Services Our&service&is&to&provide&a&fully&functional&product,&whether&a&Christmas&tree&decoration&or&a& coffee&mug.&We&want&to&make&a&simple&everyday&product&(in&the&case&of&a&mug)&or&a& Christmas&bauble&extra&special.&Each&product&can&then&be&personalised&by&each&individual& customer.& & We&want&our&business&to&be&as&eco&friendly&as&possible&to&set&us&apart&from&our&competitors.& For&this&reason,&we&are&using&recycled&inner&packaging.&We&feel&our&customers&will& appreciate&this&part&of&the&service&we&provide&and&understand&the&roots&of&our&brand.&Our& packaging&will&also&root&us&further&to&the&North&East&as&we&are&using&discarded&metro& newspapers&for&our&inner&packaging.& & We&want&to&go&the&extra&mile&for&our&customer.&We&want&to&ensure&our&products&will&be& received&in&perfect&condition,&we&want&to&make&our&packaging&as&secure&as&possible&so&we& will&trial&our&method&of&delivery&to&ensure&it&is&the&best.&However,&in&the&unlikely&event&of&a& customer&finding&any&fault&with&our&products&we&will&send&out&a&replacement&within&the&next& 24&hours,&once&the&faulty&product&has&been&returned.&
Delivery When&customers&wish&to&order&our&products&through&delivery,&we&will&use&recycled& resources&where&possible.&Our&cardboard&boxes&are&widely&recyclable&and&we&will&use& shredded&newspaper&instead&of&bubble&wrap,&as&explained&above.&& & Depending&on&the&quantity&of&the&order&the&mugs&and&baubles&may&have&to&be&packed&into&a& larger&cardboard&box,&which&will&also&be&filled&with&shredded&paper&to&increase&the&security& of&the&products.&&& & Using&Royal&Mails&guidelines&(see&appendix)&we&will&charge&a&standard&depending&on&the& quantity&of&the&order&or&the&weight&of&the&box.&Covering&the&basic&cost&of&delivery.&& &
&
Chalk&H’away&Business&Plan& &
&
&
19&
&
_ "’_ _
Organisations &
Management & Organisational Structure!! The&business&has&six&founding&members.&Each&has&each&been&assigned&an&individual&and& important&role.&Each&member&will&have&a&specific&section&of&the&business&to&deal&with& although&allOimportant&decisions&that&affect&the&business&will&be&decided&as&a&group&at& formal&meetings,&where&the&majority&voted&will&be&final.&We&have&chosen&these&roles&to& ensure&that&the&organisation&of&our&business&is&always&dealt&with&correctly.&& (See&appendix&1&for&further&detail&of&these&roles)&& & Here&is&a&flow&chart&showing&the&management&structure&of&our&business:!& &
&
Human Resources ! Each&one&of&the&members&of&our&team&has&an&individual&skill&set,&integral&to&the&success&of& our&team&and&business.&Therefore,&deciding&which&member&was&to&be&designated&which&role& was&fairly&easy&and&was&a&quick&process.&& & During&the&startOup&stages&of&our&business&the&management&team&will&be&the&only&people&we& need&to&successfully&run&and&start&our&business,&meaning&no&extra&staff&will&need&to&be&hired& whether&it&be&temporarily&or&permanently.&However,&if&the&business&has&an&extreme&amount& of&orders&within&the&first&few&days&or&weeks,&this&may&need&to&be&revisited.&& & Our&business&is&also&being&monitored&by&our&University&supervisor&Justin&Turner&who&has& multiple&years&working&with&Young&Enterprise’s&and&has&a&lot&of&knowledge&and&guidance&to& offer&our&business.&&
Chalk&H’away&Business&Plan& &
20&
_ "’_ _
Methods of Communication
The&management&team&will&be&in&constant&contact&with&one&another&using&smart&phones.& Our&team&can&easily&exchange&information,&ask&questions&and&plan&meetings&or&events& through&their&smart&phones.&This&will&also&offer&a&way&to&check&the&company&eOmail&which&all& of&our&members&have&access&to&meaning&they&can&also&stay&in&constant&contact&with&our& customers.&
Formal Meeting& Every&week&our&business&management&team&will&meet&at&least&once,&usually&twice& (Monday&and/or&Fridays).&In&these&meetings&group&decisions&will&be&made&to&help&the& progress&of&our&business.& &
Verbal A&lot&of&information&will&be&passed&along&through&these&meetings&all&done&verbally,& this&means&our&members&can&easily&talk&about&any&problems&that&our&business&may& potentially&encounter.&As&previously&mentioned,&smart&phones&also&offer&a&way&for& our&group&to&communicate&verbally.& &
Written Our&company&eOmail&account,&chalkhaway@outlook.com,&will&be&the&main&way&our& business&will&stay&in&contact&with&customers&or&potential&customers,&each&member&of& the&management&team&will&have&full&access&to&the&eOmail&increasing&the&chances&eO mails&we&receive&are&responded&to&as&quickly&as&possible.& Our&Facebook&page&will&also&be&open&to&messages&from&other&Facebook&accounts,& meaning&potential&customers&can&easily&send&us&a&message&and&ask&any&questions.& &
Product Delivery ! Once&our&business&has&its&first&stock&influx&we&can&start&to&offer&delivery&on&our&range&of& products.&Our&main&way&of&advertising&this&will&be&through&social&media,&mainly&Facebook.& Facebook&recently&added&a&new&feature&for&its&business&pages&where&viewers&of&our& webpage&can&order&our&products&directly&through&Facebook.&This&gives&our&potential& customers&a&very&easy&and&quick&way&to&buy.&The&customers&simply&have&to&add&in&their& address&and&their&method&of&payment&and&we&will&receive&an&eOmail&to&our&company&eOmail& account&and&we&will&prepare&the&product&for&delivery.&&Since&our&managing&team&all&have& smart&phones&directly&linked&to&the&business&eOmail,&each&member&will&be&notified&instantly&if& someone&places&an&order&through&Facebook.&&& Like&most&online&shops&when&buying&through&a&website&there&are&many&options&for&delivery,& we&will&offer&two&options:&standard&delivery&or&express&delivery,&express&delivery&will&cost& the&customer&more&but&it&is&ensure&to&arrive&quicker&than&standard&express&and&if&it&does&not& the&customer&will&be&refunded.&Our&business&will&just&use&the&Royal&Mail&rather&than& Chalk&H’away&Business&Plan& &
21&
privatized&postal&companies.&The&delivery&costs&will&be&decided&by&royal&mail&depending&on& the&size&and&weight&of&each&package.& &
_ "’_ _
Manufacturing Process &
&
A) Our&Initial&manufacturing&process&is&to&buy&in&all&the&elements&that&create&the&Mug& Gift&box&as&explained&in&the&Product&Development&section,&a&month&in&advance.&& Below&is&a&list&of&our&selected&manufacturers&& & Mug&Gift&Boxes&& 144&pieces&of&Chalk:&Stephens&on&Amazon& Mug:&George&at&Asda& 250&Stickers:&Instant&print&& 500&Business&cards:&instant&print&& 100&Boxes:&amazon& This&works&out&at&a&minimum&cost&of&ÂŁ1.74&per&Mug&Gift&box&& & Bauble&Gift&Boxes& Bauble:&Hobby&craft&& And&then&the&same&chalk&boxes,&stickers,&business&cards&as&above.&& & The&Chalk,&stickers,&business&cards&and&boxes&are&items&that&are&easily&replaceable.& They&are&also&the&elements&that&enhance&the&main&product&which&is&either&the&mug& or&bauble.&Therefore,&when&searching&for&a&secondary&manufacturer&we&only&need&to& be&prepare&for&the&mugs.&&& & If&this&manufacturing&process&fails,&we&will&have&to&look&elsewhere&for&manufacturers&& B) Our&second&option&for&the&chalkboard&mugs&is&to&buy&them&from&Mugstore.co.uk&& This&online&company&specialise&in&printing&on&mugs.&& This&will&cost&the&business&more&as&the&value&per&unit&is&noticeably&higher.&This&will& then&therefore&have&to&be&reflected&within&our&retail&price&in&order&for&the&business& to&continue.&(See&appendix&6&for&example)&& &
Stocking Operations!! As&previously&mentioned&our&stock&will&be&sold&in&person&and&on&our&online&platforms.&We& will&offer&viewers&of&our&Facebook&page&the&opportunity&to&order&directly&through&Facebook.& This&will&be&a&very&profitable&as&it&is&very&simple&for&Facebook&user’s&to&find&a&page&and&then& buy&something&from&it&if&they&desire.&We&are&also&using&the&online&crafts&market&of&Etsy&as&an& ecommerce&platform&to&appeal&to&our&creative&market.&This&portal&is&ideal&as&it&is&a&host&to& similar&sized&shops&and&product.& & We&have&concluded&that&Chalk&H’away&will&buy&in&their&stock&a&month&in&advance.&This&allows& plenty&of&time&for&preparation&and&flexibility&to&adapt&stock&depending&on&sales.&During&peak& Chalk&H’away&Business&Plan& &
22&
times&of&the&year&we&are&able&to&replenish&stock&fortnightly&if&necessary.&All&stock&will&be& stored&locally,&with&no&storage&costs.&As&a&result&of&this,&we&have&no&overheads.&& !
_ "’_ _
Customer Services!! Potential&customers&will&be&given&the&opportunity&to&eOmail&our&business&whenever&they& access&our&Facebook&page&or&pick&up&one&of&our&business&cards&as&there&will&be&all&of&the& business’s&information&on&both.&Although&Facebook&also&offers&a&way&for&potential& customers&to&directly&message&our&Facebook&page&with&their&own&Facebook&account,&which& is&often&a&lot&easier,&but&depends&on&which&our&potential&customer&feels&most&comfortable& with.&& & Our&business&will&offer&a&returns&policy&if&the&item&has&been&damaged&during&shipping,&we& will&offer&the&customer&a&refund&or&another&product&free&of&charge.&This&is&the&only&exception& to&our&refund&terms&and&conditions,&once&an&item&has&been&purchased&O&unless&it&is&faulty&O we&cannot&offer&a&refund.& &
!
! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Chalk&H’away&Business&Plan& &
23&
_ "’_ _
Finances ! Start-up & Capitalisation
Each&of&our&directors&(6)&has&invested&a&total&of&ÂŁ71,&with&a&grand&total&of&ÂŁ426.&This&figure& covers&the&cost&of&insurance&(ÂŁ100)&as&well&as&covering&the&first&order&of&stock.&Our&first&stock& import&of&mugs,&baubles,&chalk,&branded&stickers,&ribbons&and&boxes&for&packaging&and& delivery&will&be&paid&for&from&this&initial&startOup&fee.&Business&cards&and&flyers&are&also&to&be& purchased,&brandishing&our&company&logo&and&information&about&the&company&such&as& social&media&sites&and&contact&details.&By&producing&business&cards&and&flyers,&this&will&aid&in& reaching&a&broader&customer&base&as&they&are&easily&distributed.&For&protection&inside&each& box&for&delivery,&will&be&shredded&local&newspapers&for&soft&inner&packaging&and&an&ecoO friendly&means&of&safety,&for&each&item,&as&the&newspapers&are&easily&recyclable.&
Product Costing The&cost&of&1&manufactured&mug&bought&in&by&our&company&is&ÂŁ1.25& (www.asda.com/George),&with&a&pack&of&4&totaling&ÂŁ5.00&each&of&our&mugs&will&be&sold&for& the&price&of&ÂŁ4.00&or&alternatively&2&mugs&for&ÂŁ6.00.&This&includes&the&packaging&and&chalk& with&which&to&personlise&our&products.&Extensive&market&research&has&shown&this&price& range&to&be&customer&friendly&and&appealing.&Selling&1&of&our&mugs&for&ÂŁ4.00&will&take&our& gross&profit&to&ÂŁ2.75&per&mug&or&ÂŁ3.50&when&2&mugs&are&bought&simultaneously.&The&selling& figure&was&decided&upon&considering&our&market&research.&Baubles&will&be&purchased&for& ÂŁ1.00&per&unit&(1)&from&hobbycraft&(http://www.hobbycraft.co.uk/)&and&resold&for&a&total&of& ÂŁ2.00.&This&figure&has&been&decided&upon&by&considering&all&of&our&market&research&and&by& all&6&directors,&making&a&100%&gross&profit&per&bauble&unit.&Intricate&market&research&has& noted&that&this&is&a&competitive&price&for&our&company.&The&baubles&sold&will&just&be&sold&for& the&December&15&month&as&sales&boost&for&the&business.&& &
Overheads Chalk&H’away&do&not&require&storage,&therefore&there&are&no&overhead&costs.&This&gives&us&a& potential&advantage&over&our&competitors.& &
Delivery & Costs All&our&received&orders&will&be&delivered&in&small&cardboard&boxes&with&protection&from&any& breakages&within.&All&deliveries&will&be&made&by&royal&mail&delivery&service&as&postage&and& packaging&is&excluded&within&pricing&and&will&be&added&on&depending&on&weight&and&size.&
Other Investments Chalk&will&be&bought&at&the&price&of&ÂŁ4.39&for&144&white&chalk&sticks.&Chalk&will&be&purchased& from&amazon&(http://www.amazon.co.uk/)"and&can&be&delivered&in&a&total&of&3&working&days.
Chalk&H’away&Business&Plan& &
24&
Stickers&will&be&purchased&from&instant&print&(www.instantprint.co.uk/)&for&the&price&of&ÂŁ10& for&250&individual&units.&Business&cards&will&be&bought&in&for&the&price&of&ÂŁ18&for&500& individual&units&with&company&information&on&both&sides&also&from&instant&print.&Flyers&will& potentially&be&bought&in&the&future&at&a&time&where&the&directors&deem&necessary.& &
_ "’_ _
Directors None&of&our&directors&or&members&of&staff&will&financially&receive&income&until&a&breakeven& point&has&been&reached.&Upon&reaching&this&mark,&the&directors&will&confirm&a&payment&plan& as&of&and&when&this&happens.& &
Marketing Our&approach&to&marketing&has&been&adopted&in&the&following&way:&Business&cards&will&be& printed&with&the&company&logo&and&social&media&information,&as&well&as&being&included&as& part&of&our&own&exclusive&packaging.&Our&product&will&be&listed&and&sold&on&the&Etsy&website& (www.etsy.com/uk/)&alongside&our&social&media&websites.&Our&product&may&also&be&listed&on& other&marketplace&websites&such&as&the&Facebook&store.&The&marketing&strategy&is&explained& further&in&the&marketing&section&of&this&business&plan.&
Insurance ‘Chalk&H’away’&has&an&insurance&policy,&which&costs&a&total&of&ÂŁ100&per&annum.& &
Financing The Company The&Chalk&H’away&Company&has&a&startOup&cost&considered&to&be&relatively&low&and&all& financial&matters&and&costs&have&been&shared&amongst&all&6&of&the&directors.&Other&methods& of&financing&included&loans&from&banks;&however,&this&method&was&decided&upon&to&be& impractical&due&to&the&high&interest&rates.&Considering&our&supplier&for&our&mugs&the&online& terms&of&order&include&a&total&of&3O5&working&days&required&for&delivery&and&a&total&delivery& cost&of&£2.95.& & Other&funding&availabilities&and&options&were&also&considered&such&as&overdrafts,&however& once&again&they&were&deemed&unrealistic&by&the&company’s&directors&due&to&interest&rates.& Other&options&included&potential&grants&applied&for&by&the&company,&although&further& intricate&research&is&needed&before&considering&this&option.& & Loans,&overdrafts&and&grants&have&the&potential&to&be&revisited&by&the&directors&if&large& amounts&of&orders&were&to&be&received&by&the&company&as&a&means&of&a&quick&influx&of& money&if&needed.& &
! ! !
Chalk&H’away&Business&Plan& &
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_ "’_ _
Cash Flow Forecast & Sales Forecast Tables
Sales&Forecast&For&Year1&& 100& 90&
90&
80& 70& 60&
52&
52&
50& 40&
32&
30&
24&
20&
20&
40&
36&
32&
28&
24&
32&
28&
10& 0&
Mug&
& & Months&& Mugs! Units&Sold& Baubles!! Units&Sold&
Bauble&&
& Dec& Jan& Feb&
Mar&
Apr& May&& June& July& Aug& Sept& Oct& Nov&
52&
20&
52&
32&
24&
24&
32&
28&
28&
36&
32&
40&
90&
&
&
&
&
&
&
&
&
&
&
&
& & The&table&above&displays&the&projected&sales&figures&for&the&forthcoming&year.&It&is&clear&that& we&are&expecting&stable&figures&through&out&the&next&12&months,&increasing&slightly&on& average&as&the&year&goes&on.&&The&sales&start&off&at&a&high&in&our&first&trading&month&of& December&due&to&the&Christmas&rush.&The&seasonal&holiday&period,&combined&with&our& product&strategy&of&selling&chalkboard&baubles&alongside&the&mugs,&will&boost&our& preliminary&sales.&We&also&are&attending&our&first&trade&fair&early&December&to&start&initial& sales&on&a&high.&January&will&see&a&considerable&drop&in&units&sold,&due&to&the&lack&of& disposable&income&from&the&Christmas&period,&for&the&majority&of&our&target&market.&The& only&segment&of&the&market&to&gain&more&income&are&students,&due&to&the&second&loan& instalment&of&the&year.&We&will&also&drop&the&added&extra&of&retailing&chalkboard&baubles&in& January&as&the&Christmas&period&is&completed.&& & In&February&it&is&probable&to&expect&some&escalation&in&sales&due&to&the&valentine’s&holiday& and&our&products&targeting&the&personalised&gift&market.&We&are&also&partaking in&the&Metro Chalk&H’away&Business&Plan& &
26&
_ "’_ _
Centre&Trade&Fair&to&spread&awareness&of&the&business&and&hopefully&increase&sales&due&to& more&physical&selling&activity&alongside&our&online&portals.& & Again&in&march&we&are&targeting&the&Mothers&Day&Trade,&although&we&are&expecting&a& decrease&in&comparison&to&February,&as&we&level&out&and&return&to&just&online&platforms.&The& next&months&see&a&slight&dip&due&to&the&warmer&weather&decreasing&some&of&the&markets& desire&to&drink&warm&drinks.&Although&June&will&rise&slightly&higher&because&of&the&father’s& day&holiday,&July&and&august&will&continue&at&a&steady&rate&marginally&increasing&as&the&year& goes&on&and&the&business&becomes&further&established.&& & During&September&the&students&return&to&university,&and&we&adapt&our&marketing&strategy&to& target&the&fresher’s,&causing&the&increase&in&sales.&This&period&will&also&see&the&children& return&to&school&for&the&new&academic&year&and&potentially&push&sales&for&a&fresh&start&in&the& office&for&the&parents&too.&October&continues&at&the&stable&pace&seen&throughout&the& summer&slightly&increasing&as&the&colder&season&take&hold.&&November’s&sales&will&amplify& because&of&the&early&Christmas&shoppers&and&hopefully&continue&the&rise&throughout&the& next&year&of&trade.&& &
Chalk&H’away&Business&Plan& &
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_ "’_ _
Projected Profit and Loss
&
Notes&on&Projected&Profit&and&loss&& Utility&charges&and&Brand&costs&of&running&the&business&are&included&within&the&Annual& running&costs&and&a&further&more&detailed&breakdown&is&provided&on&the&cash&flow& forecast&(page,&31)&If&these&rates&need&any&modifications,&these&will&be&carried&out&when& necessary.&& The&directors&of&Chalk&H’away&have&concluded&that&all&profit&is&needed&for&reinvestment& purposes&with&in&the&first&year,&therefore&no&financial&rewards&or&wages&will&be&given& until&the&company&has&become&more&established.&&
Chalk&H’away&Business&Plan& &
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_ "’_ _
The Balance Sheet
Notes on Balance Sheet & Chalk&H’away&function&without&an&overdraft;&therefore&at&no&point&during&the&year&will& we&owe&any&money&to&the&bank.&Our&customers&will&all&pay&in&advance&or&upfront&for& their&product&at&all&times.&At&the&year&end&it&is&evident&on&the&balance&sheet&shown& above,&that&the&company&has&more&assets&then&current&liabilities.&There&are&0&current& liabilities&within&the&business&due&to&the&payment&of&goods&prior&to&delivery,&freeing&the& firm&from&any&credit&terms.&& & Chalk&H’away’s&current&assets&include&the&closing&bank&amount&of&the&year&plus&the&40& mugs&(£50)&worth&of&stock&left&in&hand&for&the&following&month.&This&is&due&the&company& purchasing&the&stock&a&month&in&advance&and&is&expected&to&be&sold&in&November&16,&of& the&second&trading&year.&
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Cash Flow Forecast &
Chalk&H’away&Business&Plan& &
_ "’_ _
30&
_ "’_ _
Notes on Cashflow Forecast The&cash&flow&forecast&is&a&detailed&prediction&of&our&our&finacial&behaviour&of&the&company& in&the&first&12&months.&& As&our&first&trading&month&was&December&our&stock&was&delivered&in&November&in& preparation&for&our&busiest&month&of&the&year.&This&was&boosted&with&the&chalkboard& baubles&retailing&alongside&the&mug,&which&are&to&be&sold&as&a&one&off&boost&for&that&month& only&to&generate&an&increase&in&festive&sales.&The&stock&was&purchased&using&the&capital& invested&by&the&Directors&and&leaves&us&with&£2.64&in&the&bank.&These&initial&stock&costs&were& particularly&high&this&month&due&to&expected&demand&creating&a&large&regular&stock&list,&the& added&extra&of&the&baubles&and&also&the&preparation&for&the&brand&(i.e.&Business&Cards,& Flyers&etc.).& & As&a&business&we&have&decided&that&we&will&buy&in&our&stock&a&month&in&advance.&During& busy&periods,&if&it&is&necessary&we&can&adapt&this&to&suit&i.e.&At&Christmas&when&sales&should& be&busy&throughout&we&could&purchase&fortnightly&or&even&weekly.&For&the&rest&of&the&year& all&stock&will&be&replenished&when&low&as&displayed.&& & Chalk&H’away&will&be&trading&throughout&the&duration&of&the&month&and&cash&will&be&banked& weekly&if&physical&sales&are&made&face&to&face.&Chalk&H’away&will&be&accepting&cash&only&in& physical&sales&due&to&the&risks&and&time&delays&other&method&like&cheques&include.& Otherwise&all&transactions&will&take&place&online&through&our&online&platforms.&such&as&Etsy& and&Facebook.&This&will&result&in&all&the&money&being&paid&either&upfront&or&beforehand&at&all& times.&&
Chalk&H’away&Business&Plan& &
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_ "’_ _
Opening day balance sheet
The Opening Day Balance Sheet Notes The&opening&day&balance&sheet&explains&the&position&Chalk&H’away&are&in&financially&on&the& first&day&of&trade.&This&is&due&to&the&large&amount&of&stock&and&brand&running&costs&for&our& busiest&predicted&month.&After&all&costs&are&paid&for&and&before&any&profits&have&been&made& Chalk&H’away&have&£2.64&in&the&bank.&The&current&liabilities&stay&as&zero&due&to&paying& upfront&for&all&stock,&this&means&we&don’t&owe&any&money&out.& &
Chalk&H’away&Business&Plan& &
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Ratios
_ "’_ _
Above&are&the&details&used&in&order&to&create&the&ratios&of&Gross&profit&margin,&Return&on& capital&employed&and&the&Inventory&to&sales&ratio.&&
Gross profit margin 952.49&/1780&=&0.53.51&& 0.53.51&X&100&=53.51%&
Return on capital employed 701.50/&426&=1.65& A&1.65&ratio&return&on&capital&employed&evidences&that&Chalk&H’away&are&successfully& applying&their&capital&assets&resourcefully.&&
Inventory to sales ratio 426/1780=&0.239& 0.239&X&100&=&24%& This&ratio&is&key&in&evidencing&potential&issues&within&the&cash&flow.&&The&inventory&to& sales&ratio&generates&percentage&best&used&as&a&monthly&guide,&explaining&the&difference& in&stock&levels&in&contrast&to&sales&on&a&monthly&basis.&If&Chalk&H’away’s&percentage&of& 24%&increases,&then&more&stock&is&being&held.&If&the&percentage&is&to&decrease&it&then&it& means&one&of&two&things;&either&the&sales&have&increased&in&the&business&or&the&company& are&holding&onto&less&stock.&& & & & & Chalk&H’away&Business&Plan& &
33&
_ "’_ _
Break Even Analysis
Above&is&the&breakdown&for&the&solving&of&our&breakeven&point.&To&manufacture&the&Mug& gift&costs&£1.74&each,&if&we&sell&our&predicted&440&mugs.&& Creating&our&breakeven&point&to&be&at&44&units/&Mugs&as&displayed&on&the&Chalk&H’away& Breakeven&point&chart&below.&& We&made&an&informed&decision&not&to&include&the&baubles&within&this&breakeven&analysis& and&breakeven&point&as&this&will&distract&from&our&true&breakeven&point&which&focus’&solely& on&mugs.&(as&Chalk&H’away&do&throughout&the&rest&of&the&year)&The&baubles&are&an&solely&an& added&extra.&&
Chalk&H’away&Business&Plan& &
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_ "’_ _
The&graph&displays&that&our&break&even&point&is&at&44&units&for&the&year.&Translated&into& months&this&works&out&at&an&average&of&3.66mugs.&Consequently,&if&we&sell&4&mugs&per& month&based&on&our&forecast&calculations&we&should&break&even&comfortably.
&
Chalk&H’away&Business&Plan& &
!
35&
Appendix&!
_ "’_ _
&
Georgina Akeroyd – Product Director & My&combined&experience&and&skills&set&make&me&an&ideal&choice&for&the&role&of&Project& Director&within&our&Company.&Within&this&role&I&will&assist&the&Finance&Director,&in&monetary& decisions&and&contribute&to&the&operations&and&communications&of&the&team.&&& & As&this&is&my&third&time&as&a&Project&Director,&it&will&allow&for&my&skills&to&be&best&utilized.&My& previous&experience&has&provided&me&with&vital&knowledge&within&the&industry&and&has&been& a&consistent&success.&&As&an&organised&and&good&listener,&I&will&ensure&others&have&the& opportunity&to&reach&their&full&potential,&and&that&their&skills&are&applied&to&enhance&the& business.&&I&reliably&prove&myself&as&a&problem&solver,&therefore&any&issues&that&occur&I&will& be&able&to&offer&practical&advice&and&aid&the&team&forward&together&in&the&right&direction.&& Naturally,&very&driven&as&an&individual&and&believe&that&working&as&a&team&we&can,&and&will& be&a&success.&& & As&Project&Director&I&feel&it&is&my&responsibility&to&oversee&all&decisions&but&also&acknowledge& trust,&skills&and&ideas&of&my&colleagues.&This&is&imperative&in&order&for&the&company&to& function&accurately.&I&am&confident&I&can&guide&Chalk&H’away&to&meet&and&exceed&our& objectives.&& &
Olivia Hunter – Marketing Director!! I&was&the&perfect&choice&for&‘CHALK&H’AWAY’S’&Marketing&Director&as&I&have&ample& experience&within&the&industry.&This&past&summer&I&completed&a&coveted&marketing&and& public&relations&internship&with&the&immensely&talented&Philip&Treacy.&This&gave&me&valuable,& first&hand&experience&within&this&highly&competitive&industry.& & As&a&marketing&director&I&think&it&is&my&responsibility&to&look&after&the&companies&image,&the& brand&and&it’s&standing&within&the&market&place.&I&need&to&ensure&that&‘CHALK&H’AWAY’&is& meeting&the&demands&of&its&clients&and&potential&clients.&I&will&ensure&I&know&the&companies& market&strategies&inside&out,&in&order&for&us,&as&a&business&to&capitalize&on&our&potential& consumers.&& & I&am&a&hard&working&individual&who&will&ensure&the&marketing&objectives&are&implemented& by&the&entire&team.&I&will&work&closely&with&the&other&directors&and&managers&to&create&the& perfect&product&for&our&customer&profile.&&& & These&qualities&are&what&make&me&the&perfect&candidate&for&‘CHALK&H’AWAY’S’&Marketing& Director.& & ! Chalk&H’away&Business&Plan& &
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_ "’_ _
Lauren Macrae – Product Design Director I&chose&to&be&Product&Design&Manager&as&I&have&previous&experience&in&this&area&and&I&enjoy& working&in&design.&I&consider&myself&a&creative&person&and&therefore&I&thought&this&role& would&be&well&suited&to&me.&I&did&Art&and&Design&at&A&level&working&mostly&in&creating&3& demential&pieces.&To&me,&the&design&element&is&most&important&as&it&makes&the&product& more&personable&and&desirable&for&the&consumer.&The&presentation&of&a&product&relays&the& brand&and&product&type&to&the&customer.&A&simple&product&can&be&made&so&much&more& through&its&design.&The&product&itself&must&be&likeable&to&a&broad&verity&of&people&to&reach& everyone&in&our&target&market.&We&want&to&make&our&product&look&good&with&a&sense&of& personalised&creative&interaction,&so&it&stands&out&as&the&perfect&small&gift.&Consideration&of& presentation&and&a&understanding&of&the&consumers&needs&is&what&I&believe&makes&a&good& design&manager,&I&believe&I&can&deliver&in&this&area.& & I&enjoy&creating&the&product&and&its&packaging.&I&will&be&playing&around&with&prototypes&of& mugs&and&our&limited&edition&product,&Christmas&tree&baubles.&Together&as&a&group&we&will& create&a&logo.&I&will&be&designing,&the&packaging&(boxes&and&bags),&cushioning&tissue&paper& with&colours&suited&to&the&occasion&(gift&wrapping)&as&well&as&looking&it&to&the&outer& packaging&for&delivery,&to&ensure&the&product&is&not&damaged&in&anyway.&& &
Adam Clare – Finances Director&& I&have&been&assigned&the&role&of&financial&director&within&our&company,&and&I&feel&that&this& position&is&well&suited&for&me&as&I&feel&as&though&I&bring&to&the&table&a&vast&array&of&financial& skills&which&will&be&key&assets&within&the&business&and&trading&environment.&I&feel&this&is&the& perfect&roll&for&me&within&the&business&as&the&financing&of&any&business&is&an&important&skill& that&is&required&for&all&openly&trading&and&operational&organisations.&A&strong&back&ground&in& financial&organizational&skills&makes&this&position&perfectly&tailored&for&my&resources&to&be& fully&utilized.& & &
Matthew Wilson – Social Media & Implementations Director I&feel&I&am&a&valuable&member&of&the&team&because&of&my&previous&experience&in&Business,&I& currently&run&my&own&online&Personal&Training&and&Nutrition&Coaching&Business.&This&has& given&me&an&insight&into&the&work&it&takes&to&start&a&business&from&the&ground&up.&As&Social& media&is&a&huge&part&of&any&online&business&i&feel&that&this&marks&me&perfectly&suited&to&the& role&of&social&media&implementation&director.&As&Well&as&online&promotion&physical& distribution&was&essential&in&establishing&a&business&this&has&given&me&experience&in& interacting&with&potential&customers&and&establishing&a&brand&and&report.&
Chalk&H’away&Business&Plan& &
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_ "’_ _
Joe Hepperle – Organisations Director & I&have&been&allocated&this&role&as&it&suits&me&best&out&of&all&of&the&roles,&my&past&experiences& will&help&me&perform&all&the&tasks&needed&within&this&role&to&a&high&standard.&Throughout& past&work&experiences&and&my&University&experience&organisation&has&always&been&very& important&and&I&have&learnt&the&advantages&and&disadvantages&of&bad&organisational&skills.&& & & &
Chalk&H’away&Business&Plan& &
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_ "’_ _
Our Products Mug –
Asda. (2015). Asda Living2015. Retrieved 12 November, 2015, from http://direct.asda.com/george/george-home/George-Home-Liquorice-Mugs4-Pack/001452459,default,pd.html?cgid=D26M08G08C01
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Christmas Baubles –
_ "’_ _
Hobbycraft. (2015). Hobbycraft. Retrieved 12 November, 2015, from http://www.hobbycraft.co.uk/pack-of-3-chalkboard-baubles-6cm/6077691000
&
! && & & & & Chalk&H’away&Business&Plan& &
40&
& Appendix 1&–&&
The complete university guide. (2010). The Complete University Guide . Retrieved 12 November, 2015, from http://www.thecompleteuniversityguide.co.uk/cities/newcastle/
& & Appendix 2 –
The mug store. (2015). The Mug Store. Retrieved 12 November, 2015, from http://mugstore.co.uk/mugs/list/personalised-chalk-mugs &
& & & & & & Chalk&H’away&Business&Plan& &
&
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Appendix 3 –
Springfair . (2014). Springfaircouk. Retrieved 12 November, 2015, from http://www.springfair.com/files/2014_trend_insight__jeremy_corner.pdf & &
& & & & & & & & & &
Chalk&H’away&Business&Plan& &
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