UltraBraveryCobra17
Below is the scenerio and details of the business You have a…
Below is the scenerio and details of the business
You have a ‘friend’ who loves woodworking and has extensive experience in house construction. However, they have only ever had part time jobs – no business experience.
This friend is thinking about opening a new business.
The friend’s idea is to open a new business that would essentially be a self-serve workshop. Average people could get access to woodworking and professional painting equipment.
The idea for a new business came to the friend when they learned of two new government programs (as follows):
New companies can get interest-free loans if they provide services that are not currently widely available in Canada.
Companies can get employee wage subsidies if they hire staff that qualify for a skill training or mentorship program.
The friend would be the only full-time employee. However, whenever the opportunity became available, they would hire temporary staff that qualify for the government subsidies program.
You discuss this with the friend and record the following details from the ‘brainstorming’ session:
Your friend states that they have never heard of this type of business, but they want to believe that this might work. They begin brainstorming ideas with you:
Purchases or rent about $250,000 worth of high-end woodworking and painting equipment;
Professional woodworking and painting equipment tends to be very noisy, expensive and big – not something the average person would own in their homes.
Charging the public a fee to use this equipment for their own projects;
Clients pay an hourly rate (or an annual rate) for access to the equipment.
Could also offer skill training courses;
Clients are responsible for bringing their own materials (business would not have an inventory).
Customers get to learn skills and build interesting projects using the appropriate equipment, and the friend now has their own business.
Below is a SWOT analysis i put together for the business idea
Strengths
-The business is funded by a loan provided from the government. Allows for more personal savings to go towards other expenses.
-The business offers high end, rare tools to use for the public. This makes the business more unique and stand out to people who need to use specific products that they cant find in store
Weaknesses
-Insurance cost for the rare high end products and tools will be pricey.
-Lack of workers to start up the business. This may cause the operation of the business to run slower.
Opportunities
-Little to no competition in this field. This allows for more success to come its way if it succeeds.
-The business can eventually use the government subsidy program when hiring future employees.
Threats
-I do not personally see any substantial threats to the new business idea
Now having all the information above can you please construct a business plan using the criteria below
: The final business plan will consist of the following five sections:
EXECUTIVE SUMMARY: A short section (approximately two pargrphs) – keep in mind that you are demonstrating an understanding of the term and how to apply it to your work. Remember that investors have short attention spans – if the executive summary does not interest them, then the rest of the document will likely remain unread.
MARKETING PLAN: Your marketing plan should consider topics such as the following:
Strategy – what is the key ‘message’ that the marketing strategy is trying to convey?
Demographic – who are you selling to (target market)?
How are you going to get your message out?
What marketing budget will you need?
MANAGEMENT PLAN: This section should include:
A breakdown of the type of ‘work’ that would be needed in a business of this nature.
An overview of the roles*[1] that would need to be played in the business.
Highlight how many roles the owner could play and how many additional staff would have to be hired to address the outstanding roles.
OPERATING PLAN: Based on the best practices (shown in textbook table Exhibit 5-4), demonstrate an operating plan for this business. ( i have the textbook i will do this part)
CONCLUSION: As you complete yur business plan, you should be able to answer the ‘friend’s’ original question. Is this a viable business opportunity? Or is it simply a silly dream?
(Keep in mind that a business plan should focus on making money – not spending money. Spending money is easy – reaching a sustainable breakeven point is very difficult. Force yourself to make the difficult decisions regarding what you want and what you can afford.)
