Two Wheeled Oracle in Portland is a bicycle-based courier company that serves law firms. The Oracle can transport documents, small parcels, and documents to clients and other law firms. They also file documents with the clerks. Law firms will be our primary customers. Non-law firm customers will also be serviced, but they won’t be targeted.
The Oracle will be able to provide law firms with industry insights and reliability. It will also enable them to provide superior services relative to current service providers. This will allow the company to rapidly gain market share. By month nine, profitability will be achieved and revenue for the third year will be very comfortable.
1.1 Objectives
The following are the goals for the first 3 years of operation:
To create a service-based company whose primary goal is to exceed customer’s expectations.
The Oracle should be used at least by 30 law firms.
Superior service is essential to increase the number of clients we serve by 20% per annum.
To create a profit-generating start-up within the first year.
1.2 Mission
Two Wheeled Oracle is a law firm delivery service that is environmentally friendly and efficient. We are here to retain and attract customers. All else will fall into place if we follow this maxim. Our services will surpass the expectations of customers.
Wheelie Deals distributes wholesale to the retail bicycle industry. Wheelie Deals can create a niche within the bicycle industry by offering closeouts last-year models and seconds. Currently, most of the large wholesalers will occasionally have a closeout to offer, however, the availability of special deals is spotty. Wheelie Deals is quickly going to be the best source for retail shops looking for higher margins.
Wheelie Deals was founded by Dan Psycle MBA. He is a veteran of cycling industry. Dan has taken inspiration from a highly successful wholesale distributor business model for Wheelie Deals, and it will rapidly gain market share. Profitability will be reached by month eight with comfortable profits by year three.
1.1 Objectives
The following are the three-year objectives.
To create a company whose goal is to exceed customer’s expectations.
To increase the number customers served by 20% annually.
To develop a sustainable start-up business, surviving off its own cash.
1.2 Mission
Wheelie deals’ mission is to provide the most complete selection of bike parts. We exist to attract and maintain customers. This maxim will guide everything else. Our services will meet or exceed customer expectations.
1.3 Keys To Success
Excellence in customer service and selection are key ingredients to your success.
University Cycle Works is an established bicycle specialty store, offering retail sales of new bicycles, parts and accessories, clothing, and maintenance and repair service. It is conveniently located in a highly-trafficked area, close to universities.
The primary market for University Cycle Works is the university student population, which normally has a turnover/growth of approximately 25% each year. The secondary market is the university faculty and staff, and the tertiary market is the greater Metroburg community.
Hubert ‘#8220’ Hub has been the Assistant Manager of University Cycle Works for five-years. Hubert also has seven additional years of retail and service experience in the bicycle industry. Hub first began investigating the ownership of a bike business two years ago, however, the local Metroburg market seemed saturated with shops. Realizing that a more practical option would be to buy an existing shop, Hub approached his current boss. After two years of negotiations, the University Cycle Works will be sold to Hub on July 1, 2001. The goal is to seamlessly transfer ownership. Staff, bike lines and location will remain the same.
This business plan is being prepared for presentation to Metroburg Business Bank, and to the store’s major suppliers of new bicycles, accessories, and parts. A substantial part of the past year’s planning has been negotiations with these suppliers to maintain the current financial agreements as the business changed hands. Hub’s good working relationships with sales representatives from various suppliers were a huge help in these negotiations. In the meantime, the suppliers have granted provisional continuation of existing terms.
This sample plan does not include names, proprietary information or financials.
1.1 Objectives
University Cycle Works’ objectives are:
University Cycle Works remains committed to providing the best sales and support services.
You can easily transfer ownership.
Assist in the purchase of a business that is financially sound.
Within the first year, repay the family member’s start-up loan.
You will achieve monthly and annual sales equal or greater than the previous year’s under the previous owner.
The goal is to increase sales of rainwear and garments that are bicycle-specific over the next year.
For current growth in sales revenue and service revenue, you should focus your marketing efforts on new students.
1.2 Keys for Success
Our unique, high-visibility spot right adjacent to Metroburg State University has made us the leading service and bicycle dealer for the university community.
The continuance of established accounts payable, sales programs, and co-op advertising resources by suppliers of bicycles, accessories, and parts makes the financial plan reasonable and attainable. The purchase of the business without this support would be unacceptable and risky.
Buying and continuing to use the recognized, well respected name University Cycle Works provides continuity for the customers, the owner, and the employees.
This is as important a product as any other. They are University Cycle Works’ lifeblood. University Cycle Works has always valued long-term relationships with its customers. We know and address our customers personally and are eager to be a part their university experience.
BikeArt’s mission is to offer functional items and artwork made from recycled bicycle parts. Steve’s wife Shoodnt will create the artwork. The featured products include wall clocks as well picture frames, table tops, chair, table, mobiles wind chimes and book ends.
BikeArt is a separate kiosk that will be located in the Valley River Mall. BikeArt can display larger items on the adjacent floor space thanks to the lease’s outstanding terms and conditions. This will help increase sales since the mall’s walk-through traffic is high.
BikeArt expects to reach profitability in the ninth month and make profits of almost $40,000 per year by the third.
Beginnings
The first month will serve to set up the kiosk, and get things going. During this month the part-time employees will be hired and trained. During the first month, sales will be slow. From the second month, sales will gradually increase due to the increased number of customers who visit the kiosk.
Startup costs total $45,000 This will be financed through $25,000 put forward by Steve Useitagyen as equity and another $20,000 in a long-term small business loan.
The Company
Steve Useitagyen, the sole proprietor of the company, will operate it.
Steve Useitagyen has the qualifications to work in this niche. The University of Portland awarded him a combined degree in art design and business administration. Steve worked in a bicycle shop throughout college. He started as a mechanic and moved on to sales. The shop was then managed by Steve for two years.
BikeArt plans to employ three parttime employees to manage the kiosk. Steve will oversee the hiring, payroll and purchasing.
The Market
BikeArt will target 2 market segments: bike enthusiasts and industrial artists. Eugene is home to both of these demographics. BikeArt has chosen to focus on these two types of people because they are likely to be the largest consumers of this type work.
BikeArt has many competitors:
Additional retailers are available in the shopping center.
Galeries of art
Bicycle shops.
BikeArt will leverage its competitive advantage of existing in a niche market by being the only retailer that exclusively deals with bicycle artwork. You can have your own display in the middle if a mall with lots of people.
Success
The company intends to slowly grow and to establish a sustainable level sales and cash flow before expanding. BikeArt will open other kiosks in Salem Corvallis and Portland once this is accomplished. The expansion will occur after year 3.
Break-even Analysis suggests that $15,212 of monthly revenue is required in order to reach the breakeven point. BikeArt’s products will have a price range of $40 to $500 per piece. This is based on a desired net profit margin of 12%. BikeArt’s products can be priced between $40 and $500 per piece, as they are locally created pieces of art.
Forecasts indicate that the business will be profitable by month nine. The revenues are expected to reach $147,000 and profits will reach $35,500 at year end.
1.1 Mission
BikeArt’s mission is to provide the customer with functional items and art work made out of recycled bicycle parts. We exist to attract and maintain customers. This maxim will guide everything else. Our services will exceed our customers’ expectations.
1.2 Objectives
The following objectives are set for the initial three years of operation
To create a product-based kiosk whose primary goal is to exceed customer’s expectations.
Every year, there is a 20% increase in product sales.
To develop a sustainable retail outlet that sells artwork and functional items made out of recycled parts.
Concrete Carbon Parts, a California-based company, designs and markets a variety carbon fiber seatposts for road bikes and mountain bikes. The California L.L.C. created the company. The owner has run the business from his home for the past one year. The owner would like to take the company further.
The products
Concrete Carbon is a supplier of high-end carbon fibre seatposts. The shafts are made from custom-drawn carbon fibre and the head unit is CNC machined from 6000 series aluminum. Josh has developed a unique design for posts after extensive torture testing. Concrete Carbon can offer high-end seats for road and mountain bikes that are light and comfortable thanks to carbon fiber’s natural ability to disperse vibrations. They are also completely safe. Concrete Carbon has yet not experienced a failure of a seatpost.
Concrete Carbon’s competitive advantage is built on its product. It is able offer a variety of posts to fit every rider. The range of posts are based on rider weight. Custom fitting is not offered by any other manufacturer. The way that the post is tuned can have a significant impact on ride quality, safety margins, and weight. A post that is custom-tuned to a rider’s weight range will ensure that the weight of the rider will not exceed safety. The ride quality and ride quality will be maximized by allowing enough flexibility to occur. This will dampen road and trail vibrations and reduce the risk of injury. It can be likened to suspension because of the amount of flex it has.
Concrete Carbon will use an outsourcing model for production in order to let Concrete Carbon concentrate on its core business, which is serving the customer. Production will be outsourced two industry leaders. Josh will provide the subcontractors with all the design details. They’ll make the parts as specified. Josh’, Concrete Carbon’s prior networking connections, was a key factor in selecting the subcontractors. They were also selected for their capacity to scale production as required.
The Market
Concrete Carbon sells seatposts only to individuals. Concrete Carbon has to sell seatposts to more customers in order grow its business. Concrete Carbon is now selling to distributors. Individual customers have a 10% annual growth rate with 343,009 potential customers. Distributors have a 4% growth rate with 14 potential clients. Although distributors are not expected to grow at a high rate, the market potential is huge due to the large volume they will sell and buy in relation to individual customers.
Marketing
Concrete Carbon will employ two somewhat distinct marketing strategies to reach its perspective customer segments. Concrete Carbon will use the website to make concrete carbon’s parts more visible to consumers. The website is now live for over a year. We will keep improving it. Concrete Carbon will be very active at industry trade shows to establish sales relationships. The best way to establish close relationships and build trust with potential distributors is at trade shows. Concrete Carbon will be able to invest trust in many relationships because business relationships are built on trust.
In Year 1, sales will reach $119,000, and rise to $332,000 by Year 3. Concrete Carbon Parts will see a steady increase in profitability and gross margins over the next three-years.
1. Keys to Success
Products with precise engineering.
Follow up on all promises made to vendors and customers.
Strict financial controls.
1.2 Mission
Concrete Carbon Parts’#8217 mission is to make the best quality carbon seatposts available. All of our products will benefit from lightweight, comfort, safety and lightness.
1.3 Objectives
To be the top carbon seatpost bicycle maker.
Concrete Carbon must increase its sales in order to become a sustainable company.
Significantly increase sales by creating a new market segment of customers.