Sabrine omar business plan

SABRINE OMAR MDES ENTERPRISE - TASK TWO

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CONTENTS Business description..........................5 Business goals and objectives ..........6 Products and Services ..................... 9 Industry Research ...................... 9-13 Marketing Mix ............................14-21 Packaging ..................................22-25 Operational Plans ............................27 Staff roles and Suppliers..................28 Management and organisation .......31 Start-up expenses .........................32 Financial Plan ............................36-40 Bibliography ....................................42

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BUSINESS DESCRIPTION This section will provide an overview of the business, outlining the mission statement, business philosophy and elevator pitch.

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ELEVATOR PITCH A public workshop space providing various cutting edge services and facilities as well as a platform for designers to meet and exhibit their art work to other designers and industry professionals at a low cost.

MISSION STATEMENT Our mission is to provide the user with the resourceful environment to be creative and the opportunity to showcase their design outcomes to the public at exhibition events amongst other designers and design professionals from the industry. We believe that designers should be given a solid platform in order to get them equipped for a career in design.

BUSINESS PHILOSOPHY We are a business that aims to provide our creative customers the environment and opportunity to showcase their creativity at a low cost as well as spend time in an easy-going environment where they can also use various tools and services. We encourage customers to interact and create relationships with other designers in the workshop space in order to form multi-disciplinary connections. We believe that such environments are what support designers to experiment and explore new ideas. We acknowledge that not everyone can afford the costs of such services, so we provide the same professional facilities at a lower cost. Our late opening hours means that you can always pop in after work.

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SHORT TERM GOALS

LONG TERM GOALS

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BUSINESS GOALS AND OBJECTIVES The section of the report will highlight some key aims to be achieved as the business develops, including the long and shortterm goals

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PRODUCTS AND SERVICES

This section will include a list of the services that are provided by the business, as well as briefly looking into the design industry and where it currently stands in the UK market.

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SERVICES OFFERED AT THE PUBLIC WORKSHOP INCLUDE: Laser cutting: - Black and white printing - Colour printing - Laminating - Hand tools and accessories -

Exhibition events

INDUSTRY RESEARCH SIZE OF THE MARKET

According to Design Week, the UK creative industry is worth ÂŁ71bn a year and is the fastest-growing sector. According to the Department for Culture, Media and Sport report. The sector grew by almost 10 per cent in 2012, outperforming all other sectors of UK industry.

Businesses such as public workshops and exhibition events are one of the many ways that can easily get designers involved and help them form relationships and links with design professionals.

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ccording to the ‘Creative Industries Economic Estimates’ released by the Department for Culture, Media and Sport, the Creative Industries accounted for 1.68 million jobs in 2012, which is 5.6 per cent of the total number of jobs in the UK. Although it is a small segment, it is an 8.6 per cent increase from 2011. This is down to continuous development and growth of design facilities in places such as universities. The improvements made to the design

Creative industries that are included in the above figures include: • Advertising and marketing • Architecture • Crafts • Design: product, graphic and fashion design • Publishing • Music, performing and visual arts • Museums, galleries and libraries • IT, software and computer services • Film, TV, video, radio and photography

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On average, for every £1 businesses invested in design, they gained over £4 net operating profit, over £20 net turnover and over £5 net exports.

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It’s vital that the right framework is in place to nurture and support the industry. We will identify how all involved can ensure the creative industries continue to go from strength to strength.

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Nicola Mendelsohn, chair of the Creative Industries Council

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THE MARKET

This section will provide further research into the design marke, as well as highlight the potential of the business is growing and, inclduing some limitations that the business may face.

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CURRENT DEMAND The Sheffield market for public design workshops is currently small. Although university workshop services are available for students, they are not accessible by the public. They are also limited in some aspects, such as opening hours.

They lack in co-working spaces and an environment where designers are able to form links with other designers in the same and other fields. Businesses such as Union Street in Sheffield are businesses that should be growing and expanding in order to get designers more involved. Their mission statement is ‘a place to work, meet and collaborate in Sheffield city centre’, which is exactly what a design environment should be. They also state on their website that it is ‘designed with collaboration in mind for people developing self employment, start-ups, contractors, social enterprises and freelancers.’

GROWTH POTENTIAL The Public has high potential in growing in many aspects as the business reaches its customer. Below is a list of potential areas that the business could develop and diversify into:

BARRIERS TO ENTRY Although the business has a high potential of growth, there are also barriers that may prevent or make it difficult for the business to progress in some aspects.

These include: 1. Not getting recognised enough in comparison with already established businesses such as Union street 2. Prices may be slightly higher than other businesses 3. People may prefer to go somewhere with a more private environment

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PRODUCTS

The Public workshop offers a range of creative services at relatively low prices. These services are available to everyone that wishes to use the workshop.

-Laser cutting: -Black and white printing -Colour printing -Laminating -Hand tools and accessories -Exhibition events The prices for the services above are currently the same for everyone who uses them. However, introducing membership packages that offer discounts and a different pricing range could possibly encourage customers to join as members. This will create continuing relationships and keep customers interested in the long-term.

CURRENT PRICING: 1-Laser cutting: £15 per unit 2-Black and white printing - £0.15 per page 3-Laminating - £0.30 per page (A3), £0.15 per page (A4) 4-Hand tools - £10 per hour per person 5-Exhibition/events - £8 per person 6-Colour printing - £0.35 per page

THE MEMBERSHIP PACKAGES ARE AS FOLLOWS: 1.Package one - £15 a month – unlimited use on all the printing/laminating services and 10% off laser cutting services.

2. Package two - £18 a month - unlimited use on all the printing/laminating services and 10% off laser cutting services, 15% off laser cutting services and one free use of workshop equipment.

3. Package three - £30 a month – use printing, laminating, and equipment services for free, and get 50% off laser cutting services.

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THE MARKETING MIX - PRODUCT This section will provide detailed description of the 6 elements of the marketing mix in relation to the business.

This includes the products, the people; both customers and empployees, the positioning of the business, place, promotional plans, and fianlly pricing.

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PEOPLE CUSTOMERS AND EMPLOYEES 16

PEOPLE CUSTOMER: The Public is aimed at people that are interested in creating and designing in their day-today life. The late opening hours means that working individuals are also able to use the workshop services until 08:00pm. The social aspect and the low pricing range, as well as the exhibition events are all aimed at design and creative arts students. Through this, they are able to easily access design services, meet people that share the same interests and are in the same industry, and widen their chances of forming relationships with designers in the creative sector.

EMPLOYEES: In the first year of opening The Public, I will be running the business alongside my sister, Khozana. There will also be voluntary positions when possible for design students to gain some experience in the design and creative industry. As the business grows, I would then start employing young designers, focusing mainly on new university graduates. The aim here is to provide design jobs for design students in Sheffield that will offer them experience in the design industry which will increase their chances of then going out into the industry and growing as designers.

MY QUALIFICATIONS:

SKILLS AND HOBBIES:

KHOZANA›S QUALIFICATIONS

SKILLS AND HOBBIES

Candidates that will be considered for jobs in The Public will have to possess some of the above skills, as well as provide a CV and attend an interview.

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POSITIONING The Public is a platform where creative people are able to get together and easily communicate with one another. It is also a friendly multi-disciplinary environment where young designers are able to share and express ideas with other designers from different design fields that they might not come across outside the workshop.

The aim is to grow as a community that is made up of people with a wide range of creative skills that share their knowledge with one another.

PLACE The location of The Public was originally the S1 Artspace in Sheffield, which is a central location that is easily accessed. However, the rent cost based on this venue were very high and showed a negative closing balance at the end of each month of the first year. Therefore, a small venue would be more suitable to start with in order to maintain a healthy closing balance. Future plans for the location may then be to expand into the S1 Artspace. It would also be a good idea to start having pop-up workshops in schools, colleges, and universities in order to promote and grow the business as well as making such services more accessible for people.

PROMOTION The main channels of distribution to start with will be leaflets and flyers distributed around school, college and university facilities in order to promote the workshop services to creative arts and design students. Word of mouth is also relied on for the first couple of months, with people bringing along their friends and family members to workshops. Social media accounts such as Facebook and Instagram will be created at the start of the business to allow pictures and videos to be posted in order to make people aware of the workshop environment and the services that are offered. This is an appropriate method of advertising as it is quick and cheap and can reach a huge number of people faster.

Future promotional plans will include launching a website where weekly updates are posted, a ‘contact us’ page to allow customers to enquire about the services. Once the membership packages are ready to be launched, there will then be an online form where the customers can easily join 24 hours a day. This will be an easier and more convenient way of becoming a member and people are more likely to use this method rather than go into the workshop to join.

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SOCIAL MEDIA Social media is now mostly used for promotion of products and services, by both businesses and freelancers, including designers from various design backgrounds. In December 2014, Instagram announced a milestone of 300 million active users. Just nine months later, it had reached more than 400 million active monthly users worldwide, surpassing Twitter.

As the company is rapidly growing, in September 2015, Instagram announced it would open up advertising to all users.

Instagram is also being mostly used for advertising because it can be linked to Facebook, where advertisers can tap into Facebook’s vast user data to target specific audiences. This is particularly useful to businesses with brick and mortar locations as it enables them to target specific local audiences.

As a marketing strategy, Instagram will be used as a platform for advertising events and regular workshop held at The Public in order to attract a bigger audience. Using hashtags, users will be asked to hashtag a certain picture post and upload it in order to enter a prize draw for example. This post could be a picture of a product that they are taught to make in the workshop, which means that they will be encouraged to go to that workshop so that they are able to enter the prize draw.

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PRICING

This section will be about the pricing of the products and services provided in The Public workshop. It will also compare the prices with some of the competitor’s prices.

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Below are the original prices for the first year of starting the business.

1-Laser cutting: £15 per unit 2-Black and white printing - £0.15 per page 3-Laminating - £0.30 per page (A3), £0.15 per page (A4) 4-Hand tools - £10 per hour per person 5-Exhibition/events - £8 per person 6-Colour printing - £0.35 per page PRINTING Although the printing costs at The Public are higher than some of the printing costs provided by other businesses, the overall service provided by The Public is better. For example, customers at The Public are there mainly to access other services such as laser cutting, or other design workshops. They could also be going to The Public primarily for the social aspect and to be involved with other designers. Therefore, the slightly higher printing costs will not be a put off for customers. Customers could also opt into a membership package, where they are able to have unlimited printing for a month, as well as other discounts.

LASER CUTTING Although not massively, laser cutting services are available in Sheffield.

There are a number of companies that can be found and contacted online for a quote. However, most of these companies only offer services to large quantity orders. Therefore, people cannot go in and use the laser cutters for small cutting jobs.

Razorlab is a laser cutting business that offers a unique online service for its users. The online tool allows users to upload and edit their file, choosing the materials they want laser cut and then paying online. The job would be completed and delivered for them. Including a service like this in The Public in the future could be a huge attraction, especially for students and could possibly bring in extra revenue.

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EVENTS BROCHURE : this will usually be printed and distributed around locations such as the City Centre, colleges, universities and schools particularly in the creative departments to advertise events and exhibitions. Card will be used to print this brochure in the workshop premises so no external printing facility will be used.

BUSINESS CARD 1 This business card will be used for the business at the start-up stage (approx. for the first year). Only black and white ink and card paper is needed to print this, also in the workshop premises.

BUSINESS CARD 2 Once the business is at a stable financial stage where more money can be spent on the marketing aspect, this business card will then be used. This can also be used at events and open days at the start-up stage of the business.

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PACKAGING This section will showcase some of the visual elements of the business, including brochures and business cards. It will also include images of the online presence of the website, and an idea of what the interior of the workshop may look like.

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HOME PAGE

ABOUT US PAGE

C O N TAC T US PAGE

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WORKSHOP INTERIOR

WORKSHOP PLAN

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OPERATIONAL PLANS

This section will highlight the operational plan on a day-to-day basis at The Public, underlining key points such as managing staff, opening times, and suppliers.

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OPENING HOURS The Public will be opened 8 hours a day, 5 days a week.

Monday to Friday - 12pm - 8pm Saturday - 10am - 6pm

CLOSED ON: Bank Holidays Christmas day New Year’s eve New Year’s Day One day before every event

EXHIBITION EVENTS March September

THE WORKSHOP WILL BE CLOSED ONE DAY BEFORE EACH EVENT FOR SETUP

STAFFING As mentioned on previous sections, my sister, Khozana, and myself will be the only two working at The Public for the first year. The hours will be split between Khozana and me throughout the day. For example one of us would work the first 4 hours after opening, and the other would then take over for the next 4 hours before closing. We can also split the days where we can take it in turns to work full days. On days where one of us cannot make it, the other could cover.

Having volunteers will also help with making sure customers are getting the most out of the services, and dealing with issues that might be faced throughout the day. Having a volunteer at all times at reception to welcome customers and deal with enquiries is also required in order for everything to run smoothly on a day-to-day basis.

As the business grows and starts bringing in a healthy profit, there will be a choice to start employing new staff and start dedicating roles to different staff members. In the second year, one member of staff will be employed at the beginning of the year, and possibly another towards the end of the second year once the business grows further.

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KHOZANA›S ROLES

Khozana will deal more with the customer service part as she has had a lot more experience in previously working in customer service and retail therefore her communication and problemsolving skills are excellent. She is also computer cultured and has a lot of software knowledge, for example using the Adobe software package. This means she can also help members out when using computer software as well as printing.

SABRINE›S ROLES

As I have previously been quiet involved in a workshop environment at university, using machinery, materials, and I have also been given a health and safety induction in a workshop environment, I will be dealing more with the practical side of the workshop. I will help customers with using the laser cutters and other large equipment. I will also stand in the workshop store selling materials and accessories as I have reasonable knowledge in materials.

VOLUNTEER›S ROLES

Depending on their previous design studies and knowledge, the volunteers’ roles could be different from one to the other. However, the main purpose of giving the volunteers the opportunity to be involved is to provide them with the chance to be in a design environment and help them develop some personal and practical skills, which they might not have the chance to do otherwise. With the difficulty of getting jobs in the design sector in Sheffield being a real struggle at the moment, this would be a great start for young designers to grow and develop a better CV to better prepare them for future design roles. Roles that they might be involved in include:

SUPPLIERS

Viking supplies are an all round stationary suppliers that accommodate every stationery need from pens, paper, office machines and ink cartridges through to warehouse and cleaning supplies.

Established is 1960, the company now has over 20 years experience in supporting business like The Public. Their prices are reasonably low compared to many other UK suppliers, and they promise a fast free delivery. Another advantage of using Viking as a supplier for The Public is installation of products at the workshop such as the ink cartilage, which is helpful as there are not enough staff for extra jobs like this.

PAPER PRODUCTS

STATIONARY

PRINTER INK

PRINTERS, FAX ETC

TILL

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SOFTWARE PACKAGES

COMPUTERS CLEANING PRODUCTS

STAFF ROLES AND SUPPLIERS 29

MANAGEMENT AND ORGANISATION This section will look at how the management is at the start-up stage and how it will change or develop with time. This will include staffing, management, and suppliers.

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STAFFING

- Year one – only two members of staff carrying out all the customer service and workshop tasks, as well as some volunteers from design backgrounds helping out with various day-to-day tasks and workshops.

- Start of year two – employing another member of staff to help with the customer service side of the business, for example reception duty. This will give Khozana and myself more time to focus on the running of the workshops, events and day-to-day customers making sure the best possible services are provided.

There will still be a number of volunteers alongside the staff members for extra help.

-End of year two – employ another member of staff in addition to the three staff already there, making it easier for myself to take over management of the business, and the rest of the staff will be workshop assistance staff, where they are required to make sure that day-to-day workshops are running smoothly, and that the customers are satisfied with the services they are receiving.

All new members of staff will undergo a full health and safety workshop induction that qualifies them to assist in any workshop activity. This is so they are able to cover for one another and assist one another during large turnouts.

SUPPLIERS

Viking will be the only supplier of products for The Public for the first forecasted years. This is because they provide high quality products for suitable prices as well as cater for most of the business needs.

The aim here is to build a strong relationship with one supplier so that things are always running smoothly when purchasing from them as well as during deliveries. They also offer discounted deals for their loyal customers, which will benefit the business in bringing outgoing costs down.

MANAGING THE BUSINESS

The management of the business will be taken care of by Khozana and myself for the first two years, sharing the workload between the two of us. At the start of year three, where there will be 4 members of staff and some volunteers, the managing role would be given to one member of staff. This is when each role will be dedicated to one member of staff, which means that everything is more efficient, including the management of the business.

In order to make sure that the management side of the business is highly effective and organised, employing a professional business manager would be highly recommended. This would also mean that the four other staff could all focus on only the running of the dad-to-day activity of the business.

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CAPITAL EQUIPMENT NEEDED

ITEMS NEEDED MONTHLY

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SOURCES OF FINANCE

8 START-UP EXPENSES

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9 FINANCIAL PLAN

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YEAR ONE:

Total money out: £63,090.74 Balance: £3,780.78 Main payments this year: - Repayment of the bank loan - £5,000 - Survival budget - £504

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YEAR TWO:

Total money out: £57,360.74 Balance: £9,510.76 Main payments this year: - Repayment of the family loan - £3,000 -Survival budget - £504 - Staff member 1 - starting in August - £340 per month - Staff member 2 - Starting in April the following year - £340 per month

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YEAR THREE: Total money out: £54,360.74 Balance: £12,510.76

Main payments this year: - Survival budget - £504 - No longer making any repayments

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YEAR FOUR:

Total money out: £52,872.74 Balance: £13,998.76 Main payments this year: - No longer paying mysef a survival budget.

- Paying a wage to myself - £380 per month, as I will have more time to get a part time job for living costs.

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YEAR FIVE:

Total money out: £52,872.74 Balance: £24,998.76 Main payments this year: - Income from sales is now starting to increase, by the start of year 5, sales are forcasted to increase by a £1000 each month, and the same for year 6 etc. This is due to markeing, and the social media presence.

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https://www.shu.ac.uk/about-us/our-services/the-print-shop/pricing https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/271008/Creative_Industries_Economic_Estimates_-_ January_2014.pdf https://www.designweek.co.uk/issues/january-2014/uk-creative-industries-worth-71bn-a-year-and-fastest-growing-sector/ https://www.union-st.org/ http://www.designcouncil.org.uk/our-services/business-growth Department for Culture Media and Sport (2014) Creative industries economic estimates, London : DCMS. https://www.gov.uk/government/consultations/classifying-and-measuring-the-creative-industries-consultation-on-proposed-changes

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http://www.ons.gov.uk/ons/guide-method/classifications/current-standard-classifications/standard-industrial-classification/index.html http://www.practicalecommerce.com/articles/120141-why-and-how-to-use-instagram-for-advertising

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