Business Plan – UK Sole Representative Visa
EXECUTIVE SUMMARY
Executive Summary Company is a complete Interior Design and building company with offices in Abu Dhabi. We are planning to extend its footprint in the United Kingdom. Our hallmarks are innovative design and superior execution. Company deploys construction expertise and profound attention to detail right from the conception of a development right through to the execution and handover of a project. At every level, we exceed our client's expectations with unmatched quality and style.
£ 316K Net Present Value
33.8%
Internal Rate of Return
Our services are:
67%
Interior Design, construction, documentation drawing, refurbishment, electro-mechanical work and project management supervision. This business plan is for immigration purposes and will expand the business to the London area via the sole representative visa. XXXX will be the Director of the company and manage its operations. XXXX has more than 12 years’ experience in Interior Design and construction services.
Revenue Growth
40%
Profit Growth
82%
Cash Growth
The parent company will invest £ 170,000 to fund the initial expenses of the UK company. KPI's Revenue EBIT EBITDA Net Profit Free Cash Flow
£ -£ -£ -£ -£
Year 1 995,000 259,620 160,120 259,620 299,420
£ £ £ £ -£
Year 2 3,517,190 329,919 681,638 247,440 192,668
£ £ £ £ £
Year 3 5,064,550 682,555 1,189,010 511,916 116,666
£ £ £ £ £
Year 4 6,611,910 1,034,145 1,695,336 775,609 627,799
£ £ £ £ £
Year 5 7,736,800 1,282,403 2,056,083 961,802 1,280,129
MARKET RESEARCH
Industry at a Glance – United Kingdom
Industry Definition
This industry comprises operators that design architectural interiors and their furnishings. In their operations, interior designers consider building codes, health and safety regulations, traffic patterns, floor planning, electrical needs, interior fittings and furniture. These services are used by the hospitality, healthcare, commercial and residential sectors.
Specialised Design Activities in the UK Key Statistics Snapshot Revenue
£6.8bn Profit Margin 2020
17.2%
Annual Growth 15–20
2.1% Wages as a share of Revenue
21.7%
Source: https://www.ibisworld.com/united-kingdom/market-research-reports/specialised-design-activities-industry/
Annual Growth 20–25
2.3% Number of Businesses
2.5%
Industry Structure Level
1
Life Cycle
2 3 4 5 6 7 8 9 10
Revenue Volatility
Trend
Growth
Low Medium
Capital Intensity Industry Assistance
Low
Concentration Level
Low
Regulation Level
Light
Technology Change
High
Barriers to Entry
Low
Steady
Industry Globalization
Low
Increasing
Competition Level
High
Increasing
Steady
Steady
Products & services segmentation 13% 7%
Industrial design
Fashion design
45% 35%
Interior design Graphic design
Source: https://www.ibisworld.com/united-kingdom/market-research-reports/specialised-design-activities-industry/
Life Cycle Stage - UK 1. 2. 3.
Patterns in the number of establishments follow those of the overall economy. The market shows a saturation of service providers. There is wholehearted market acceptance of the interior design service.
This industry is Mature The Interior Designers industry is in the mature stage of its industry life cycle. Industry value added (IVA), which measures the industry’s contribution to the overall economy, is projected to increase at an annualized rate of 2.3% over the 5 years to 2025. Typically, this level of growth would suggest a growing industry, however other characteristics of the Interior Designers industry are more in line with that of a mature industry. For example, growth in establishments and enterprises has followed patterns in the overall economy. As an industry with most operators being nonemployers and low barriers to entry, the number of enterprises and establishments generally increase during periods of economic growth and decrease.
Industry Performance Growth for this industry is primarily dependent on the level of activity within its complementary sectors within the UK The Interior Designers industry, comprising professionals engaged in the planning, designing, decorating and administering of projects in interior spaces, grew steadily over the five years to 2019. Total industry revenue is expected to have grown an annualized 2.1% over the five years to 2019. Revenue is expected to grow 2.3% to from 2020 to 2025. Growth over the past five years has primarily been driven by rising residential and commercial construction, the latter having grown an annualized 2.5% over the past five years. Growth for this industry is primarily dependent on the level of activity within its complementary sectors, such as residential construction and commercial building construction. Interior designers are often hired to design and manage the construction of interior spaces for residential, healthcare, corporate, retail and hospitality industries. In addition, the level of existing home sales tends to determine the demand for the industry since interior designers are often hired to prepare a home for sale or following a sale to prepare a home for move-in. Periods of higher consumer confidence, per capita disposable income and corporate profit further drive demand since industry services are generally considered a discretionary spending item.
Over the five years to 2024, the Interior Designers industry is expected to continue growing, though at a slowed pace. Residential and commercial construction is expected to increase at a slower pace as abnormally high demand from the previous period is satisfied and the markets normalize. A decline in consumer confidence is also anticipated to weigh on demand for industry services, with more consumers less likely to spend large amounts on luxury or discretionary services. Alongside this, home sales and per capita disposable income are expected to continue increasing, driving demand for the industry.
Key Industry Data Percentage Change in Specialized Design Activities In the UK
Key External Drivers in the UK Demand from commercial building construction The Commercial Building Construction industry includes companies responsible for work on the construction of office, retail, hotel, agricultural and entertainment buildings. Interior design services provided to commercial businesses make up the secondlargest share of industry demand. Interior designers are typically hired for new construction and renovation projects that require interior design services. In 2019, demand from commercial building construction is anticipated to increase.
Existing home sales This driver measures the sales of existing single-family homes, condos and co-ops each year. Interior designers are often hired to increase the selling price of a home or are hired after the sale of a home during the move-in phase. In 2019, existing home sales are expected to increase.
Value of residential construction The value of residential construction includes multifamily residences, new homes, renovations and restorations. It is common for interior designers to be hired for new construction projects as well as for renovations and restorations. Services provided to residential customers make up the majority of industry revenue. In 2019, the value of residential construction is expected to decrease.
Per capita disposable income This driver measures the ability of an individual, on average, to purchase goods or services. It is calculated by dividing the income earned by the total population. Generally, when disposable income increases, spending on discretionary products and services, such as interior design services, increases. In 2019, per capita disposable income is expected to increase, presenting a potential opportunity for the industry.
Housing starts This driver measures the number of new, privately-owned housing units started in a given year. This includes both single-unit and multiunit developments. Interior designers are hired to design the interior of these developments to increase their selling potential or by people that buy them and are moving in. In 2019, housing starts are expected to increase.
Consumer Confidence Index This driver measures the ability of an individual, on average, to purchase goods or services. It is calculated by dividing income earned by the total population. Generally, when disposable income increases, spending on discretionary products and services, such as interior design services, increases. In 2019, per capita disposable income is expected to increase, presenting a potential opportunity for the industry.
Key Success Factors
Good project management skills This is one of the most important factors of success for industry operators. They must ensure the project stays on schedule and must collaborate and communicate with many people.
Access to niche markets Many people use interior designers because of their extensive supply network for original artwork, innovative and original furniture.
Having a good reputation A design firm’s reputation is an important determinant of success. A company’s reputation is generally supported by references from past customers and a portfolio of previous work.
Ability to manage external (outsourcing) contracts Designers need to ensure projects are completed on time and within budget. Many large design firms will use the services of subcontractors to meet deadlines and provide a range of different services. Access to multi-skilled and flexible workforce Companies that have a multiskilled workforce will be able to provide a diverse range of services to clients.
Ability to vary services to suit different needs Varying the services offered attracts a greater number of clients with diverse stylistic and practical needs.
Key Buying and Selling Industries
Key Buying Industries
Construction
The construction sector uses the services of interior designers to design and decorate new homes and office buildings.
Airport Operations
Interior designers are commonly used for decorating and styling airport terminals and lounges.
Finance and Insurance
Non-Hotel Casinos
Hotels & Motels
A variety of clients in this industry use interior design services to design and decorate corporate offices. Casinos typically use interior design services to decorate gaming rooms, lobbies and guest facilities. Hotels and motels are major users of interior design services for decorating hotel rooms, lobbies and other guest areas.
Key Selling Industries
Painters
Flooring Installers
Carpenters
Household Furniture Manufacturing
Home Furnishing Wholesaling
This industry provides contract labor for painting and wallpapering.
This industry installs new flooring for interior designers.
This industry constructs cabinets, built-in shelves, doors, windows and wood framing for redesign work. This industry provides household and institutional furniture used by interior designers. This industry supplies home furnishings that designers use to style a client’s residence or building.
Demand Determinants Residential interior design
Demand for residential interior design is largely dependent on widespread macroeconomic trends. Important drivers of demand include the level of unemployment, the level of per capita, disposable income, changes in existing home sales and the number of homeowners. For instance, when the unemployment rate is low and per capita disposable income is rising, more households can afford, and therefore more likely, to pursue interior design work and remodeling projects. Conversely, during recessionary periods, when unemployment is higher and per capita disposable income growth slows or decreases, households are less likely to embark on interior design projects due to general economic and job uncertainty. Since interior design services are largely considered to be a luxury expense, the demand for these services tends to be sensitive to expansions and contractions in the domestic economy. In addition to macroeconomic indicators, demand for residential interior design work is also positively correlated with the level of existing home sales. Homeowners are most likely to invest in interior design projects when settling into a new living space. Therefore, when existing home sales are rising, demand for interior design services is also expected to rise. Moreover, demand is also positively correlated with the overall rate of homeownership. Individuals are much more likely to invest in the interior design of their living space if they own it. Not surprisingly, people living in rental spaces are much less likely to invest in any home improvement projects using their own income. Therefore, rising homeownership levels are expected to increase demand for industry services.
Nonresidential interior design
Demand for industry services from businesses, corporations and commercial entities follows trends in nonresidential building activity, office relocations and corporate profit. Increases in corporate profit help drive demand for industry services since organizations have more funding they can allocate to investments in the physical work environment. Corporate profit helps drive demand for corporate designers, which specialize in creating interior designs for a variety of workplaces, ranging from small office settings to large-scale corporate buildings, all the while considering efficiency, functionality, workplace safety and a company’s brand. Demand from hospitals, educational institutions, cultural buildings and government buildings tends to be more sensitive to changes in public and private funding. The level of nonresidential construction, which measures the level of construction of these types of facilities, affects demand for industry operators. Before and during construction projects, interior designers are used to plan, design and manage the construction of interior spaces for hospitals, schools, cultural buildings and government offices. Therefore, when the value of nonresidential construction rises, it helps drive demand for interior designers operating in the nonresidential space.
Key trends in Interior Design Some of the new and renowned players in the market like Mourne Weavers, Urban Myth, William Woods Interior Design, etc. are bringing new technologies in interior designing and changing the customer preferences.
Smart Homes Smart homes are already everywhere. Barely a day goes by without one of the tech giants releasing a new gadget designed to make our homes more connected. Google Home has already been around for years now – a smart home control centre that acts as a personal assistant, alarm and speaker rolled into one. Soon, experts predict that smart homes will go much further than just standalone devices. Smart interiors will be built into the very structure of our homes. Kitchens smart interiors are beginning to have an impact. Imagine a voice-controlled shower or a button that changes the outlook from your bedroom window – the possibilities are endless! Smart homes have come a long way in the past few years, and there’s no doubt that we will continue to see our interiors getting smarter and smarter.
3D Printing The advancement in 3D printing is shaping the interior world to such an extent that some believe we are on the cusp of another industrial revolution. Where it used to be costly and cumbersome, today 3D printing is efficient and exciting. Interior designers can quickly demonstrate their designs and allow their clients to touch and feel their ideas in miniature form. With 3D printing, the time between idea conception and its implementation is drastically reduced. This speeds up an interior designer’s work and reduces costs for the client – a win for both parties.3D printing can be used to design intricate furniture that clumsy machinery is incapable of creating.
Key trends in Interior Design Tiny House Movement The Tiny House movement is one of the most striking phenomena that is set to overturn the way we think about interiors. Put simply, it is the movement whereby individuals are actively downsizing their living spaces, typically to under 400 square feet. The Tiny House movement has gripped America, and is partly in response to rising house prices but also thanks to greater environmental awareness and willingness to reduce our carbon footprint. As the Tiny House movement continues to grow, so will the requirement for welldesigned, expertly engineered interiors. In a tiny house, everything must have its use or – even better – everything should have many uses. Stairs that double up as storage units or kitchen tables that form a TV stand. When space is at a premium you can’t afford to be wasteful. With living costs still sky-high, tiny houses may become the norm in a not-so-distant future.
Virtual Reality Virtual reality (VR) has been the word on everyone’s lips this year. Interior designing experts are particularly excited about its uses within their profession. Imagine a designer walking their client through a room they have created, or explaining an architectural structure by actually being beside it. Imagine testing out hundreds of wallpaper designs, furniture pieces or flooring types at the click of a button. It’s no surprise that the interior design industry is welcoming VR as the start of a new, technological future. On the downside, VR technology is still eye-wateringly expensive and requires a very powerful computer to process. More accessible at the moment is VR’s younger cousin, Augmented Reality (AR). Where Virtual Reality simulates total immersion into a virtual world created entirely by software, Augmented Reality fuses the virtual world and the real world, often by overlaying virtual features on top of actual ones.
Key trends in Interior Design Sustainable Design As consumers grow wary of the environmental and social mark they are leaving on the world, so the interest in sustainable design increases. Sustainable design has become a buzzword across a range of industries. From landscaping to beauty, the future for eco-friendly looks bright. For interiors where it used to have connotations of shabby chic; today eco-friendly design is entirely on trend.
This trend looks set to grow as we consider the future of interior design. Upcycling furniture, buying local and actively seeking energy-efficient materials are becoming increasingly common. Interiors with a conscience are most definitely cool.
Business Plan
Introduction Company is a complete Interior Design and building company with offices in Abu Dhabi. We are planning to extend its footprint in the United Kingdom. Our hallmarks are innovative design and superior execution. Company deploys construction expertise and profound attention to detail right from the conception of a development right through to the execution and handover of a project. At every level, we exceed our client's expectations with unmatched quality and style. Our team has attained 15 years of experience in design, our skilled project managers and technical engineers, inventive designers, passionate builders, and chief masons engineer our success. The formula of being exclusive The formula of risk foundation is based on our blend various backgrounds and keeps us unique from our competitors. That has helped us out in the market to occupy a larger share. We work on the principle of being a multi-discipline from processing interior contracting as its core activity. Team has gained experience working with architects, designers, developers, and clients in both the public and private sectors. That is what makes us exclusive. Working collaboratively for acute understanding An acute understanding has been developed from working collaboratively with local owners, fabricators, and stakeholders for leveraging regional conditions to meet quality and performance standards on international grounds as well. Wide spectrum of services We have gained tremendous experience in the profession for a long time. We have assembled our staff member with technical, innovative, and passionate designers and engineers, who can deal with regular and potential new clients as well. We have designers that have expertise in every field, and we allocate the best designer on each design project that includes residential, hospital, hotel, office, commercial or healthcare design.
Services
Services Services
INTERIOR DESIGN
CONSTRUCTION & FIT OUT
CONSTRUCTION & DOCUMENTATION DRAWING
REFURBISHMENT
ELECTRO-MECHANICAL-WORK
PROJECT MANAGEMENT & SUPERVISION
Company UK will work on the same business models for its new location – United Kingdom
Office Design In office design, we have some world-class architect designers who are the best in the best in the use and possess extensive experience for working with high profile interior design projects. Our concept for office interior design is related to cost-effectiveness and is cutting edge that ultimately is an add-on to the business. We work on producing excellent office interior design upon the fact that office interior actually elevates the productivity and boost the business efficiency. The motive of Company office interior designers is to create an innovative workspace to help companies to reinforce your brand identity to promote services and products. The journey to design an exceptionally brilliant office interior started in 2006. On realizing that immersing ourselves in other’s business world would assist us in understanding their business challenges and limitations. Through this, our concept artists work efficiently to produce several office interior design ideas and test highperformance options. We then explore some inspirational and innovative solution. It not only impacts a business rejuvenation but also motivates the organization’s team to perform to a maximum for achieving company goals as well.
Healthcare Design The healthcare industry has its own requirements when it comes to interior design. Whether it is a hospital, a clinic, or any other healthcare facility, it needs to have subtleties that can comfort the pain-stricken people. The use of colours and space has to be such that every element encourages a sense of hope and rejuvenation in the hearts of them.
The landscape of healthcare is not what you think it is. It is edging closer with the rest of the industries. Our approach is to take it even further by adding design elements that speak for themselves. We are approaching the design of the healthcare institute with patients in mind.
Hospitality Design We believe in performing to maximum functionality. Focusing on the comfort of guests our designers have planned the colour scheme, lighting, and furniture choice, which greatly attracts the guests and how they view their surroundings. In the interior of hospitality design, a wide range of venue are included such as restaurants, hotels and retail stores. Our designers use their excellence in choosing the blend of colours that would be soothing for eyes and would pair with furniture and decorative accents. The Company team has been educated on utilizing what types of lighting and colour palette that go in hand with the hospitality interior design. We acknowledge the importance that by the furniture theme the lighting is also affected. Rooms that have vaulted ceilings might require wall fixtures for directing the light upwards. while smaller rooms might utilize overhead lighting or corner lamps. Company designers are well aware of the degree of illumination that is important besides the lighting effect. To encourage feelings of excitement or relaxation, our team is efficient in creating a perfect combination of colours according to themes and space. The interior design in addition to lighting and color palette also focuses on several other factors that are important within the realm of hospitality interior design. For example, choosing white and subtle furniture would give an impact of the sophisticated and polite environment around. We know that furniture plays an important rote in producing an aura as well and motivates respective feelings. A space in which furniture is sparsely placed induces an airy atmosphere whereas furniture kept in small groupings might incite intimacy feelings. The Company team has deep knowledge about the hospitality interior design for creating a cohesive feel that advocates to a certain atmosphere or environment.
Construction & Documentation Drawing Company provides documentation for bidding and execution of construction services The importance that our client may use these services lies within our execution of construction services. Our team or members must possess special skills with in-depth knowledge regarding construction materials. components, and assemblies. One must have possessed the capability of developing construction details that need to be consistent with design, performance and budget objectives. We look Into a member that carries familiarity with the procurement of construction services and should understand the knowledge of manual and computer drawing standards along with system skills with CAD programs. The teams we choose for drawing in Company have great representative task skills. The team is efficient in coordinating specifications and drawing from all disciplines. Preparing construction drawings and specifications to accompany drawings. The representative task includes submitting documents for building code officials and preparing Ind packages. We prepare sketch and specifications for change orders during construction.
Construction & Fit Out
The essence of our reputation lies within cooperation, reliability, and performance. Within the national ground, our fit-out team has proved to be a national leader. Our fit-out team adds value In venous capacities. which includes a construction manager. construction head or construction or design leader. By providing our specialist knowledge in design, workplace, trade and engineering disciplines. Company office leverages that experience for helping the team to deliver outstanding results. The goal is to join the team early, so that we can help integrate the architecture vent the engineering, ensuring buildability and cost efficiency by valuable pre-construction collaboration. After the completion of the project. we offer post-occupancy services that include maintenance and churn management. Company has been focusing on large scale and boutique fit-outs in the corporate workspace. We also fit-out hi-tech sales education. biotech. hospitality, retail, and specialized use. We have established a delivery leadership team for our national clients to maintain consistent service for the clients across the country. The teams are localized and coordinate the delivery on site. Our Electro-Mechanical works is as per the rules and regulations of statutory authorities.
Electro-mechanical work We have induced a complete design of LV electrical system of the projects that include the design of illumination, small Power. load distribution, single line diagrams with civil and fabrication details for authority and consultant approval. The supply and installation of all illumination and small power words include conducting PVC and GI, point wiring. and concealed box fixing. Also, the supply and installation of Ms SOBS. MOB> and L.V panels include assembly of switchgears. dressing and work associated with it. Moreover, after every quarter we perform testing and commissioning of all electrical systems after permanent connections from statutory authorities according to the statutory norms. Site Mobilization We have assigned a team on the site mobilization task. The team is well aware and possess experience for technical and mechanical work that needs to be performed. Company performs all kind of Site Mobilization works including illumination of site office. yard lighting, construction lighting, distribution of temporary electricity and water connections. We have experts who accommodate the services like generator connections, AC works. drainage and water supply to organize toilets and pantries in work floors and offices. Mechanical services according to rules and regulations of statutory authorities In accordance with the statutory rules and regulations authorities, we have a complete design of drainage system, water supply system, and shop drawings for all related mechanical works. This includes head calculations for domestic water pumps and drainage system for air conditioners. The material we use is of superior quality, therefore, the supply and installation of internal and external water supply are done using UPVC pipes, hot water piping with copper pipes, cold water piping with PPA/PEX pipes. The supply and installation of sanitary fixtures and CP fittings with accessories and related works are performed under the extreme supervision of our well-trained engineers. Air conditioning system Our strategy behind producing good design is based on working according to the statutory regulations and listening to clients concerns at the outset. Our practice is based on consultant specifications, preparation of thermal load summaries. testing and commissioning of decorative split exhaust fans. mechanical ventilation through in-line fans. air filtration apparatus, insulation and related works.
Renovate To Innovate
Project Management & Supervision
We strongly believe in the concept of utilizing and recycling to give a new look and vision to an already used space. Our comprehensive knowledge regarding the refurbishment projects have helped us on bringing better and newer ways to produce an outstanding interior Company team has capability of understanding vast knowledge in regards with particular space and building We have developed credentials and worked with some old hotels and prime residential sectors, and succeeded in growing them newest interior and image.
Company maintains extreme supervision through a full range of professional teams that Included planning supervisors, architects. structural and building services engineers. We offer project management service also for covering a wide spectrum of various premises related to issues associated with engineering projects to office moves. Through the integration of project management, we manage the probability of low risk and organizing chaos. We effectively organize, plan and control our projects by Implementing project management, which enables us to meet deadlines. Another advantage we have acquired for project management is integrating the projects with business processes and operations for organizations who believe that projects do not happen in a vacuum. We work with our client's staff to prepare FMS budget forecasts. CAD layouts, and planning schedules, before sourcing the contractors necessary to achieve the goals set by our clients. As this is done, we monitor the project and report on all progress. We can also carry out strategic reviews of your existing arrangements to identify any potential improvements or cost savings.
Company is completely aware of the challenges involved to work with occupied buildings and managed their best to keep guests and staff away from the disruption. We take a hands-on approach throughout the preconstruction and during manufacturing periods of the refurbishment process. We have always placed high emphasis on communication between ow own project teams and supply chain. Our team has always proved to give their best at renovating different sites and earned extensive experience and technicalities during the project. We have always kept our client concern at the top and delivered more than the client has expected from us. The technicalities and functions are well equipped and reliable. which has made possible to gain our client trust to work in the future as well.
We believe in practising refurbishment in buildings, homes. offices and enhancing the value and image of the client property. We offer building conversions and extensions with our team In project management process, some of the tasks that we perform are: expertise that gives a sheer new look. Work safe compliance To maintain all concerns related to the security of the clients as well as our team, we measure safety within the space we operate thereby reducing long term risk. Regular client liaison A regular client liaison allows us to keep track of our client on a routine basis. We ensure every detail is gathered from the client to reduce the ambiguity In various situations. Our team has experts that listen and facilitate the liaison. The client's needs are central to every project. Documentation information We manage all our projects by properly documenting every issue and tiny detail and collect information on hand to evade errors.
6 Reasons Why To Go With Company UK
6 REASONS WHY TO GO WITH Company UK INTERIOR EXPERTISE Our interior team has over 15 years of collective design and construction experience. We have the required expertise an professional skills that are required for the flawless interior design and construction work in several settings including residential homes, offices, hotels, or hospitals.
AWARDS WINNING Our team has performed to the best standard and has won several awards from private and public sectors while enduring interior design competition for major projects in UAE. Our team has exceeded the client's expectations with unmatched quality and style.
FREE CONSULTATION At Company, we believe in walking an extra mile to facilitate our clients and provide them with an exemplary experience. W offer a free consultation for their assistance. Our team of designers uses its skills, expertise. and talent optimally to come u with exceptional designs of various settings. Company Interior Design and Construction understands the mindset of the clients and always facilitates them with the best vision accordingly.
GUARANTEED WORKS Right from the concept to the completion of the project, our experts will pay attention to each minor and major detail. For the enhanced peace of mind and satisfaction of our clients, our construction services are backed by one year guarantee.
REASONABLE PRICE There can be nothing better than delivering high-quality interior design, construction and work completion services affordable rates and Company offers exactly that. No other company in the UAE is offering superior quality services at a rate as competitive as ours. Decisions will be reached jointly with the client and Company offers enough for covering the cost along with a reasonable profit.
SUPPORT SYSTEM At Company, we value your time and resources. Therefore, we offer a 240 support facility for our clients. Email us and we can give you our reply within one hour. We can facilitate any query to the best of our ability using our knowledge and experience.
Potential Market The profile of the Company clients consists of the following geographic, demographic, psychographic, and behavioural factors:
681,704 businesses created in 2019 in the UK
Geographic Company UK will concentrate on London market initially because the number of startups in London increased by 2.4 per cent to 221,373 companies, a substantial portion of the 681,704 businesses created in 2019. Company UK will try to grab 510% of the market in the first two years based on the following demographics.
Only 5.3% of the market share is with large players
Demographics Company UK to target • Renters with a combined household annual income greater than GBP 100,000. • Owns their home, townhouse and/or condominium valued at over GBP 425,000. • Startups in the creative sector • Profitable businesses • Will apply for government tenders for big projects.
The UK has an internationally acclaimed infrastructure shows they spend heavily when comes to designing
Psychographics The Company UK team will first understand the requirements of the owners and businesses. And will target those whose priority is the appearance of their homes and offices. Business often thinks of optimum utilization of its resources this where Company experts will play a vital role in helping them from designing till construction.
Behaviors Most of the businesses try to bring all the amenities and environment better than their peers and constantly changes its appearance with the change in time and technology. Company UK will understand this behaviour and will constantly approach clients with the latest trends in the market.
Mission and Values Mission Company UK is an interior design service for discerning, quality-conscious clients that seek assistance in their design choices for their primary residences, vacation homes, and businesses. This experience offers personal attention through the design process and provides design resources and products to its clients through special purchases of furniture, fabric, and accessories. The total experience is provided in a way to inform, inspire, and assist people through the process of transforming their home or business environment to become a unique and personalized expression of themselves and add to their enjoyment of that interior space.
Ethic We are committed to integrity and ethical business practices as we continue to earn our clients’ trust by delivering outstanding customer service and acting ethically in all that we do. Ethical behaviour is about the choices we make every day. As interior designers, project managers, technical engineers, inventive designers, passionate builders and chief masons we have a responsibility to the public, to our clients and ourselves.
Professionalism We provide constant support throughout 24/7. You can email us and we will give you our reply within one hour. We can facilitate any inquiry to the best we can by using our knowledge and experience. By building strong and sustainable relationships we deliver on our promise and enhance our reputation and credibility. Our mission is to focus on providing the best service for our clients.
Company Policy We will be consistently productive by working together as a team, sharing knowledge, innovating and collaborating the overall business. The hallmarks of what we do are based on innovative design with superior execution. We believe in working with methodical and realistic approach keeping innovation primarily important. Company aims to deliver a solution based on value-engineered that is focused on customer needs and drawing on our experience. While doing business with customers, our aim is to ensure that all our concepts are accurately documented and communicated and that ensure transparency and assurance. Company delivers quality solutions to incorporate design and has 12 years of experience in establishing commercial designs.
Strategy and Implementation The primary sales and marketing strategy for Company UK includes these factors: • A premier interior design consulting experience that provides impressive client service throughout. • The sale of other complementary products that adds value for the client's total experience. • Providing an experience that will result in repeat business for home and/or office needs and client referrals.
Business Strategy
Company UK will have a well thought out business strategy to capture the UK market. The overarching strategy is to deliver services on time and within budget to an exceptional standard. ➢ Penetrate the market immediately: Design is highly valued by UK business, with an estimated £33.5bn spent annually on design. The company will look to penetrate the market within a short time span, aiming to build brand awareness and capturing a significant market share. ➢ ➢ Tie-up with international suppliers: The company will tie-up with such suppliers and be mutually benefitted by partnerships. It will also work aggressively to build relationships with such suppliers. For every £1 invested in design, businesses can expect a return of over £5 in increased exports ➢ Effective Financial Strategy: The company will have an effective financial strategy with well-defined marketing budgets, competitive pricing, and an effective supply chain to ensure all costs are maintained well within budgets and customers are offered the best prices. For every £1 invested in design, businesses can expect over £4 increase in net operating profit. ➢ Hiring British Experts: Ninety per cent of British design businesses say their main competition comes from within the UK. Company UK will hire quality managerial force from the UK itself to beat the competitors using expertise from the UK itself.
Business Strategy Pyramid STRATEGY #1 - Generating Referrals
Tactic #1A Build a client base through leveraging existing contacts from former clients of the architecture firm. Tactic #1B Build a referral network through professional contacts. Offer special order fabric that will arrive in a reasonable time frame and enable to provide something unique for each customer. Program #1A Press release in the local paper announcing the business is open.
Program #1B Offer seminars through organizations to promote the concept of using an interior designer and using Company Designs.
Business Strategy Pyramid STRATEGY #2 - Product Sales
Tactic #2A Promotion of products available through building networks. Program #2A Seminars and demonstration promotions. Program #2B Cross-selling activities with home and office consulting. Tactic #2B Promotion of art and antiques. Program #2C Demonstrate the unique qualities they offer to promote these higher dollar transactions. Program #2D Display this through the online and notebook portfolio.
Business Strategy Pyramid STRATEGY #3 - Generate Awareness Through the Website
Tactic #3A Better facilitate and communicate Barton Interiors services and product through the website Program #3A Integration of completed client work. Tactic #3B Monthly assessment of the performance of email inquiries. Program #3B Establish the goals of the program Program #3C Evaluate the client work initiated through the site.
Organizational Structure General Manager
Administrator
Operation Manager
Business Development Managers
Accountant
Project Coordinator
Business Development Engineer
Architects
3D Visualizer
Draftsman
Drivers
Staff Roles Employees General Manager Business Development Manager Mechanical Engineer Business Development Engineer
Roles and Responsibilities Duties for the General Manager will include allocating budget resources, formulating policies, coordinating business operations, monitoring and motivating staff, managing operational costs, ensuring good customer service, improving administration processes, engaging with vendors, hiring and training employees Contacting potential clients to establish rapport and arrange meetings, Planning and overseeing new marketing initiatives, Researching organizations and individuals to find new opportunities and Increasing the value of current customers while attracting new ones.
• • • •
Plan, conceptualize and create mechanical designs for new products. Develop testing processes and perform testing and validation of new designs. Generate working prototypes for beta testing and customer demonstration. Perform engineering calculations to support design work.
Specific duties of a business development engineer include calling business houses, discussing with them the areas of engineering in which the firm operates, understanding the clients' area of business, proposing a business venture, providing details about the projects and writing business proposals
Project Coordinator
• Maintaining and monitoring project plans, project schedules, work hours, budgets and expenditures. • Organizing, attending and participating in stakeholder meetings. • Documenting and following up on important actions and decisions from meetings.
Operation Manager
Make important policy, planning, and strategy decisions. Develop, implement and review operational policies and procedures. Assist HR with recruiting when necessary. Help promote a company culture that encourages top performance and high morale.
Administrator
An Administrator provides office and administrative support to either a team or individual. This role is vital for the smooth running of a business. Duties may include fielding telephone calls, receiving and directing visitors, word processing, creating spreadsheets and presentations, and filing.
Architect
Developing and presenting project proposals. Adjusting designs and plans to meet the client's needs. Preparing drawings, blueprints, specifications and construction documents. Conducting research and compiling reports on feasibility and environmental impact.
Staff Roles Accountant
3D Visualizer Draftsman
Driver
• Provides financial information to management by researching and analyzing accounting data; preparing reports. • Prepares asset, liability, and capital account entries by compiling and analyzing account information. • Documents financial transactions by entering account information. • Construct Computer-Aided Design (CAD) drawings and 3D visuals for presentation. • Assisting interior designers, architects or graphic designers in space planning and design details. • Applying textures and providing appropriate lighting techniques to the models. Generally, a draftsman's main job duty is to create technical drawings based on given specifications and calculations. Draftsmen typically work with professionals in their field, such as scientists, architects and engineers, who provide the product or structure's details. • • • •
Map out driving routes ahead of time to determine the most expedient trip. Pick up clients from the place and at the time they've requested. Collect payments and issue receipts. Assist clients with loading and unloading their luggage.
Proposed Project Team Staff Roles and Responsibilities in a Typical Project (including Subcontractors) General Manager
Managing Director
Business Development Manager
Project Manager Architect Engineer
Tenders & Contract
Operation Manager
Project Coordinator
Procurement
Project Manager
Quality and Quantity Control
Procurement
Mechanical Engineer
Architect
MEP / HVAC Engineer
Architect
3D Visualizer
Draftsman
3D Visualizer
Draftsman
Staff Plan
Director-XXXX Business Development Managers Operations Manager Accountant Administrator Architects 3D Visualizer Draftsman Mechanical Engineer Project Coordinator Driver Total Staff
Staff Plan Year 1 1 1 1 1 1 1 1 1 1 1 1 11
Salaries Director-XXXX Business Development Managers Operations Manager Accountant Administrator Architects 3D Visualizer Draftsman Mechanical Engineer Project Coordinator Driver Total Staff Cost
Year 1 70,000 41,884 44,917 29,143 25,000 37,908 26,758 24,715 33,349 27,730 26,406 387,810
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
Year 2
Year 3
Year 4
Year 5
1 3 1 1 2 2 1 1 1 1 2 16
1 3 2 1 2 3 1 1 1 2 3 20
1 4 2 2 3 3 1 1 2 2 4 25
1 5 2 2 3 4 2 2 2 2 4 29
Year 2 73,500 43,978 47,163 30,600 26,250 39,803 28,096 25,951 35,016 29,117 27,726 407,201
Year 3 77,175 46,177 49,521 32,130 27,563 41,794 29,501 27,248 36,767 30,572 29,113 427,561
Year 4 81,034 48,486 51,997 33,737 28,941 43,883 30,976 28,611 38,606 32,101 30,568 448,939
Year 5 85,085 50,910 54,597 35,423 30,388 46,077 32,525 30,041 40,536 33,706 32,097 471,385
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $ $
Goals and Action Plan Phase 1
Phase 2
Phase 3
Setting up an office in UK and Sign First contract
Aggressive Business and Marketing Strategies
Diversified Services Portfolio and Strong presence in UK and
Setting up Office in London General Manager will Acquire Sole Representative Visa In the UK and set up an office in London.
Expanding Team Company will hire more talented people on board to win more complex projects.
Trends Check Hiring Business Development Managers Company will hire the best managers for the UK by establishing contacts and building relations. BD Managers to start approaching prospective clients after 3 months for training.
First Contract Signed Company will do all the formalities like site visits, cost estimation, staff requirement, etc.
Company review its initially strategies and will adjust them based on the market and technology advancement.
Spending on Marketing Will increase marketing expense to make the brand popular in the whole of the UK. Company can also bring celebrities on contract for promotion.
GBP 5 Million in Revenue Company will target to achieve GBP 5 Million in revenue.
More high-revenue projects Company will concentrate more on high revenue-generating projects e.g. malls, parks, hotels, hospitals, etc.
Technology-enabled Solution Company will invest in software's and tools for better communication of their ideas and will keep an eye on competitors' activities.
Gaining Significant Market Share By the end of 5th-year company to have
5 – 10% of market share
Milestones and Roadmap Year 1 Sole Representative Visa UK
Year 2
Year 3
Year 4
Year 5
Free Consultation
Establishing UK company
Setting up an office, hiring employees and training.
Change in service portfolio based on demand trends.
Initial Marketing
Achieving `5-10% market share
Start operating - First major client revenues.
Build supplier relationships and partner with local players initially to penetrate the market.
Start focusing on government project (minimum requirement 3 years).
Ongoing digital marketing and launch and participate in events/conferences. Achieve at least £6 m in revenue and recruit additional sales staff.
Profitable business by the end of Year 1
Expanding team to cater more customers
Achieve a profit of at least £600k
Marketing Strategy There are 163,000 UK design and designer fashion jobs in the creative industries. The largest concentrations are in London, South East and North West of England. Company UK will employ the following marketing tactics to increase customer awareness of their services.
Word-of-mouth/In-store Marketing Word of mouth or viva voce is the passing of information from person to person using oral communication, which could be as simple as telling someone the time of day.
Social Media Strategy A social media strategy is a detailed blueprint that answers the what, when, how, and why for all the content related to projects, new technologies, etc.
Influencer marketing
Email marketing
Company UK will approach startups Company UK will try to and business owner via email and endorse renowned celebrities for promotion while promoting phone for providing free consultation and eventually try to convert them into its name in the UK market. clients
SWOT Analysis
Strengths • The proven ability to establish excellent personalized client service • Good referral relationships with architects, complementary vendors, and local realtors. • Client loyalty developed through a solid reputation among repeat, high-dollar purchase clients. Opportunities • A significant portion of our target market is desperately looking for the services Company will offer. • Strategic alliances offering sources for referrals and joint marketing activities to extend our reach. • Promising activity from new home construction activity. • Changes in design trends can initiate home updating and, therefore, generate sales.
S
O
W
T
Weaknesses • The owner is still climbing the "retail experience learning curve.“ • Not established in a market where a variety of interior design options exist. • Challenges of the seasonality of the business.
Threats ▪ Continued price pressure due to competition or the weakening market reducing contribution margins. ▪ Dramatic changes in design, including fabric colours and styles, can present challenges to keep pace with what is desired by what is expected to be a leading-edge client base. ▪ Expansion of products and services offered by other sources including national discount stores into the local market including Target, Wal-Mart, and Home Depot. 42
Parent Clients
Competitors Company UK will face tough competition from renowned players in the market given below: Revenue - GBP 155mn Area Sq. Ltd offers an interior design service. The company was founded in 1999 and is based in Egham, the United Kingdom. Area Sq. Ltd operates as a subsidiary of Fourfront Group Ltd. Revenue - GBP 66 mn Harmsen Tilney Shane provides interior design consulting services for organizations in the United Kingdom. Its services include workplace strategy, building appraisal, space planning, workplace consultancy and interior design, fit-out management, and furniture assistance services. Harmsen Tilney Shane was formerly known as The Harmsen Group Ltd. and changed its name to Harmsen Tilney Shane in June 2013. The company was incorporated in 1994 and is based in Bristol, with additional offices in London, the United Kingdom. Revenue - GBP 56.1 mn Wagstaff Bros. Limited, doing business as Wagstaff Interiors Group, provides office interior design, office interior fit-out, office furniture supply, office move, and office furniture hire services. It offers modern office interior design space planning services; office interior refurbishments, including demolitions, partitioning, ceilings, and flooring and finishing to electrical, mechanical, data services, and office furniture; and office furniture solutions. The company also provides office move services, such as office and workplace move management, office internal move and relocation, project management, IT relocation and consultancy, secure warehousing and storage, and office furniture maintenance services; event and office furniture hire services; workplace consultancy services; reuse and recycling services, and after-sales services. It serves clients through a network of distribution partners in the United Kingdom. The company was founded in 1903 and is based in London, United Kingdom with regional offices in the United Kingdom
Competitors
Revenue - GBP 53.8 mn Conran Holdings Limited, a design studio, provides architecture, interior and interactive design, product and brand design, and brand licensing services. It offers homeware retailing and urban master planning. The company also operates shops, restaurants, bars, and hotels. In addition, it offers furniture and lighting products, kitchen and dining products, home accessories, lifestyle products, gifts, and women and men’s products through its retail and online stores. Further, the company provides procurement and consultancy services on furniture and lighting; project-specific manufacturing and art consultancy; and delivery services. Conran Holdings Limited was incorporated in 1993 and is based in London, United Kingdom. Revenue - GBP 23.5 mn Tetris Projects Limited provides interior design, fit-out, and refurbishment services in the United Kingdom and internationally. Its services include design and build; detail and build; traditional build; furniture selection, procurement, coordination, and delivery; workplace consultancy; and aftercare services. The company’s portfolio includes offices, hotels and leisure facilities, restaurants, and education spaces, as well as retail, industrial, and residential projects. Tetris Projects Limited was incorporated in 2010 and is based in London, United Kingdom. Tetris Projects Limited operates as a subsidiary of Jones Lang LaSalle Limited.
Initial Expenses Particulars
Amount
Sole Representative Visa Legal Machinery and Tools Salaries Subcontractors Office Renovation Brochures Stationery Insurance Rent Expensed Equipment Business Software Office Supplies Utilities Misc.
£ £ £ £ £ £ £ £ £ £ £ £ £ £ £
610.00 900.00 10,000.00 96,952.50 24,875.00 10,000.00 4,000.00 2,000.00 200.00 10,000.00 3,000.00 2,000.00 1,000.00 1,000.00 3,000.00
Total Initial Investment
£
169,537.50
Rounding off
£
170,000.00
Management Summary
Leadership XXXX DIRECTOR XXXX
XXXX XXX XXX
Financial Plan
Projected Income Statements Income Statement Particulars Revenue Cost of Goods Sold Gross Profit Operating Expenses
£ £ £
Year 1 995,000 547,250 447,750
£ £ £
Year 2 3,517,190 1,934,455 1,582,736
Salaries Subcontractors Other Staff Costs Rent Legal, License & professional fee Business promotion Communication Utilities Travelling Repairs and maintenance Office Expenses Bank charges Miscellaneous Depreciation Total Expenses
$ £ £ £ £ £ £ £ £ £ £ £ £ £ £
EBIT/Operating Income EBITDA Taxes @ 19% Net Income
£ £ £
Year 3 5,064,550 2,785,503 2,279,048
387,810 99,500 49,750 40,000 40,000 14,925 12,935 9,950 15,000 10,000 7,500 100 9,950 9,950 707,370
$ £ £ £ £ £ £ £ £ £ £ £ £ £ £
-£ -£
259,620 160,120
£ -£
259,620
£ £ £
Year 4 6,611,910 3,636,551 2,975,360
£ £ £
Year 5 7,736,800 4,255,240 3,481,560
407,201 351,719 175,860 40,720 40,720 52,758 45,723 35,172 15,000 10,000 7,500 100 35,172 35,172 1,252,816
$ £ £ £ £ £ £ £ £ £ £ £ £ £ £
427,561 506,455 253,228 41,453 41,453 75,968 65,839 50,646 15,000 10,000 7,500 100 50,646 50,646 1,596,493
$ £ £ £ £ £ £ £ £ £ £ £ £ £ £
448,939 661,191 330,596 42,199 42,199 99,179 85,955 66,119 15,000 10,000 7,500 100 66,119 66,119 1,941,214
$ £ £ £ £ £ £ £ £ £ £ £ £ £ £
471,385 773,680 386,840 42,959 42,959 116,052 100,578 77,368 15,000 10,000 7,500 100 77,368 77,368 2,199,157
£ £
329,919 681,638
£ £
682,555 1,189,010
£ £
1,034,145 1,695,336
£ £
1,282,403 2,056,083
£ £
82,480 247,440
£ £
170,639 511,916
£ £
258,536 775,609
£ £
320,601 961,802
Projected Cash Statements Cash Flow Statement In GBP Operating activities: Net Profit/ (loss) Depreciation
-£ £
259,620 £ 9,950 £
247,440 £ 35,172 £
511,916 £ 50,646 £
775,609 £ 66,119 £
961,802 77,368
Net cash (used for)/ provided by operating activities
-£
249,670 £
282,612 £
562,561 £
841,728 £
1,039,170
Investing activities: Capital Expenditure
£
49,750 £
175,860 £
253,228 £
330,596 £
386,840
Net cash (used in) investing activities
£
49,750 £
175,860 £
253,228 £
330,596 £
386,840
Financing activities: Issue of Equity/Preferred Stock
£
-
Net cash provided by financing activities
£
-
Net increase/ (decrease) in cash and cash equivalents
-£
299,420 £
106,752 £
309,334 £
511,133 £
652,330
Cash and cash equivalents, beginning of the year Cash and cash equivalents, end of the year
£ -£
- -£ 299,420 -£
299,420 -£ 192,668 £
192,668 £ 116,666 £
116,666 £ 627,799 £
627,799 1,280,129
Year 1
Year 2
£
Year 3
-
£
Year 4
-
£
Year 5
-
£
-
Potential Business
Particulars
Expected No. of Contracts a Year Year 1 Year 2
Year 3
Year 4
Year 5
Interior Design
1.00
3.00
5.00
7.00
10.00
Construction and Fit-Out
2.00
7.00
10.00
13.00
15.00
Refurbishment
2.00
7.00
10.00
13.00
15.00
5
17
25
33
40
Expected No. of Contractors a Year
Particulars
Expected Contract Value Year 1 Year 2
Year 3
Year 4
Year 5
Interior Design
£
55,000
£
167,970
£
279,950
£
391,930
£
559,900
Construction and Fit-Out
£
500,000
£
1,781,500
£
2,545,000
£
3,308,500
£
3,817,500
Refurbishment
£
440,000
£
1,567,720
£
2,239,600
£
2,911,480
£
3,359,400
Expected No. of Contractor Value a Year
£
995,000
£
3,517,190
£
5,064,550
£
6,611,910
£
7,736,800
Operating Expense
Operating Expense Depreciation Miscellaneous Bank charges Office Expenses
Repairs and maintenance Travelling Utilities Communication Business promotion Legal, License & professional fee Rent
Other Staff Costs Salraies and Allowances Managerial remuneration £-
£100 000 £200 000 £300 000 £400 000 £500 000 £600 000 £700 000 £800 000 £900 000 £1 000 000
Year 5
Year 4
Year 3
Year 2
Year 1
Financial Performance Financial Performance £9 000 000 Revenue
£8 000 000 £7 000 000
EBIT
£6 000 000 £5 000 000
EBITDA
£4 000 000 £3 000 000
Net Profit
£2 000 000 Free Cash Flow
£1 000 000 £0 -£1 000 000
Year 1
Year 2
Year 3
KPI's Revenue
Year 4
Year 1 £
Year 2
995,000 £
Growth
3,517,190
£
253%
Year 5
Year 3
Year 4
Year 5
5,064,550 £
6,611,910 £
7,736,800
44%
31%
CAGR 67%
17%
EBIT
-£
259,620
£
329,919
£
682,555 £
1,034,145 £
1,282,403
40%
EBITDA
-£
160,120
£
681,638
£
1,189,010 £
1,695,336 £
2,056,083
32%
Net Profit
-£
259,620
£
247,440
£
511,916 £
775,609 £
961,802
40%
Growth Free Cash Flow Growth
-195% -£
299,420 -£
192,668 £ -36%
107% 116,666 £ -161%
52% 627,799 £ 438%
24% 1,280,129 104%
82%
KPI’s and Revenue Assumptions NPV
Project IRR
£315,919.4
33.8%
Description Services Interior Design Construction and Fit-Out Refurbishment Inflations rate in UK Cost of Sales and Operating Costs Cost of Good Sold Subcontractors Other Staff Costs Rent Legal, License & professional fee Business promotion Communication Utilities Travelling Repairs and maintenance Office Expenses Bank charges Miscellaneous Capex Depreciation Cost of Capital Corporate Tax Rate
Unit Average Contract Size Average Contract Size Average Contract Size in% in% in% in% in% in% in% in% in% In GBP In GBP In GBP In GBP in% in% in% in% in%
Assumption Details £ £ £
£ £
£ £ £ £
55,000.00 250,000.00 220,000.00 1.80% 55.00% 10.00% 5.00% 40,000.00 40,000.00 1.50% 1.30% 1.00% 15,000.00 10,000.00 7,500.00 100.00 1.00% 5.00% 20.00% 25.00% 19.00%
Assumption Remark Business models Business models Business models
Of Revenue Of Revenue Of Revenue Assumption Assumption Assumption Assumption Assumption Assumption Assumption Assumption Assumption Of Revenue Of Revenue Of Capex Assumption