Business Plan

Hello everyone.
So today I am going to share with you the business plan I did for d2p business.

Number 1 Excusive Summary:

The following business plan has been created by Egle Dapkunaite for the company d2p. d2p is an Irish based height adjustable desk with a feature that allows the users to transform the desk into a ping pong table to allow for much-needed exercise in the workplace.

The following plan has outlined in detail the business. At present, there is one member in the company the founder Egle Dapkunaite. The firm operates Ireland in the desk space and has aspirations of expanding into the EU and UK markets.

The firm plans to grow its members and have a board consisting of 6 members which will over see the running of the business un all aspects from marketing to sales. This team will be selected once the firm has developed its sales strategy.

The report has showed the financial direction of the firm at present. The firms plan is to take a €400,000 loan from the bank to expand and cover starting operational costs so the business can grow further.

Sales will be generated by two key areas the first will be from sales of the desk and the second sales avenue will come from sales of parts as the firm produces desks which can have parts replaced easily/

Sales will be generated via a modern advertising strategy; all promotion will be done via online targeted ads and also at expos of modern business office equipment. 

 

 

 

 

 

 

 

 

 

 

Number 2 Company Description:

The founder of the company is Egle Dapkunaite, I’ve created the product and am the 100% shareholder in the business. As the business grows so too will the board. The board will grow depending on the business needs. The projected board members will include a minimum of 6 other members to aid in future business decisions. Decisions such as the financial marketing and production direction of the business.  

Advisors:

When I came up with the idea of d2p desk I went to my lecturers Sue Corcoran and Haris Makedonopoulou, Sue is involved in the design field, she gives me the advice and what needs to improve to make the product better, and Haris was helping me with the design of the desk, how to improve the function of the desk.

Products services:

The focus for this product was Circular Economy, the desk is made from recycled materials and it's built so the owner can replace the parts easily and nothing goes to waste, the second category is the sale of an office and ping pong desk.

Long term aim of business:

The company will aim to enter desk markets that are fit in the bill of Circular Economy.

Objectives:

·         The company objectives are:

·         To create a modern desk that fits the circular economy

·         To reduce back issues in the workplace

·         To help with reducing waste in the world

·         To allow its users to save money in terms of office equipment purchases.

SWOT:

Strengths:

A new design

Helps fight back pain

Easy fix parts.

Weaknesses:

High cost of marketing

Sourcing material difficult

Cheaper alternatives available.

Opportunities:

New markets EU and UK

Green everything happening in the world

New products, chairs etc.

Threats:

Competitors

Cheap plastic desk

Changes in government policy. What can be used in desks may be changed i.e. recycled metal.

Number 3 Market Analysis:

Target Market:

European Union is a major player in the desk market, with over 500,000 million people (European Union, 2020) and 27.5 million business (Eurostat, 2020) it is a great market for d2p business. The United Kingdom is going to be another major aim with 5.9 million businesses (UK SME Data, Stats & Charts, 2020) d2p can expand all over Europe and grow bigger.

Total Market Valuation

The total market value of the desk industry in Ireland is €25,000,000. There are 250,000 enterprises in Ireland with an average of 6 employees in the company taking that into account coupled with the cost price od the desk of €1700 the total market value in Ireland is €25,000,000. UK sales from the manufacturer of office and shop furniture were £1,135,000 on office desks in 2018. (Statista, 2020) EU sales revenue in the Office Furniture segment amounts of €32,960,000 in 2020. The market is expected to grow annually by 2.1%. (2020-2023). (Statista, 2020)

Targeted Share:

The total market valuation in Ireland €25,000,000 in the first year the aim is to take 8% of the €25,000,000, second year 12%, after five years the aim is to take 25% of the desk industry sales. In UK the aim is to take 5% after the first year, 9% after the second year, after five years 18% of the sales. In EU the aim is to take 3% after year one, 6% after the second year and after five years to take 16% of the sales and so on.

Market Trends:

The trend that d2p are following is Circular Economy. Circular Economy is an economic system aimed at eliminating waste and the continual use of resources. (Sustainable development, 2020). The aim for this is reducing the waste and design for the future making sure that nothing goes to waste and using recycled materials to build dp2 desk.

Profile of Competitors:

In Ireland Javris Bamboo Standing Desk starts at €569.00, the customer may customize their workspace with Javris eco-friendly bamboo desk. The desk can be designed online on Javris website, the desk can be purchased in the shop and online on their website. (Jarvis Bamboo Standing Desk, 2020)

In UK Hunts Office, Co-Worktable starts from £749.00, Hunts Office strikes a balance between collaborative communication and private headspace with a variety of different size desks. The desk can be purchased on their website and in the shops. (Hunts Office, 2020)

In EU deskCity SUAS starts from €475 + vat, professional installers, desk put in position, packaging taken away. The frame and the desk various in different finishes and colors. (DeskCity, 2020)

Competitive advantage:

The design of d2p is two height-adjustable tables that are joint together and turned into a ping-pong desk in the offices. After weeks of searching there is nothing similar on the market now, the whole design circles around the circular economy, the materials were picked carefully from recycled wood and metal to make sure that this desk produces 0 waste. As well as this it gives its users an opportunity to work out and stretch their muscles, not even that this is beneficial for people to exercise but it's good for their mind too. The design and the purpose of d2p are why this product is so attractive to offices all over the world.

Benefits to Clients:

d2p helps to prevent back problems in the office for the end-user. The product also features easily replace parts and as such will reduce the costs of the company purchasing the desk. As they don’t have to fully replace a desk.

Number 4 Marketing/Sales Strategy:

Income sources:

There are two main income sources first is the traditional sales avenues such as online sales, demos, shows, etc. and the second source is for the parts to be sold individually to allow for the desk to be fixed if necessary.

Marketing strategy:

The marketing strategy consists of the 4P’s. The 4P’s are: Product:  d2p is a height-adjustable ping pong table that prevents back problems in the offices, d2p stands for desk to pong. Price: is made up of the materials and cost of promotion (advertising cost) there will be various prices for individual part cost. Place: d2p will be sold online and business exhibition shows (such a design week, demos, etc. where the product can be demonstrated). Promotion: online advertising, targeting adds, promotion of active sales.

Pricing :

The ads on YouTube cost between €0.10 and €0.30 cents. For the first 4 months, there will be 1000 ads on YouTube promoting d2p desk. (Web FX, 2020) The average small business using Google adverting spends between €8,200 and €9,000 a month on their advertising campaigns. (The WordStream , 2020) Depending on the size of the stall and the event it cost from €1,000 to €10,000 to promote the product.

The total production works at €1,700 which cost to make €700, from every desk being made €1000 turnover from every desk. All the aforementioned costs have been coupled to form the price point.

Advertising and Promotion:

The advertising and promotion strategy of the business will mainly focus on online advertising, targeted ads on the platform YouTube will be created. These ads will play during popular videos. The ads will consist of informational pieces about the product. The next online marketing promotional tool will be Google ads these will allow the product to be shown on related and popular websites these ads will allow customers to enter our website. The next promotional tool is expos at which trained professionals will demonstrate the product to potential customers as well as this leaflet containing product information will be made available. In the future, additional and larger scale promotion will develop as the business grows.

Sales Strategy:

The replacement parts are one of the sales strategies, this gives an opportunity for the customer to buy a part of the desk that needs to be replaced, other sales strategies are faced to face sales at the shows and online sales. The strategy is a complementary style of sales the first step is creating the sale of the desk with the consumer the complementary aspect comes in terms of parts sales, the fact that the desk allows for part replacement the consumer will purchase future orders with the firm if parts need replacing, this strategy will allow for continual growth and customer retention.

Number 5 Research & Development:

Patents, copyrights and brands:

The name is d2p and the brand is the design that was created around it.

In order to be eligible for a valid patent the invention must be new and to be capable of industrial application. Short term patent in Ireland is 10 years. The patent filing in Ireland cost €60.00 and there is a charge of €30.00 while the file is granted. The patent will be granted in 9-12 months from application date. The idea is protected from the application date. (New Product Development, 2020)

For EU patent cost fees are charged for filing, searching, the designation of contracting states, claims, and printing. Renewal fees are also payable for the third year and each subsequent year after the date of filing until an EU patent is granted. The filling and search fees at the beginning of the procedure currently amount to €1,550. The remaining fees are payable later. It currently costs on average €5,750. (EPO, 2020)

Prior to use, it is essential to search the trade makes register in each target market. This will discover any marks or existing names that are the same. Register in all classes of goods where it is currently used as well as in classes where there is intent to use. The initial life of registration is 10 years which can be renewed identify each decade thereafter. The cost of an application, for one class in Ireland, is €520 plus VAT. At registration, approximately 18 months later, a further cost of €504 arises. Community Trademark (CTM) is a registration that provides exclusive use of the mark in all member states of the European Union. The application in the EU can cost up to €1,511 plus VAT, which covers 3 classes of goods. At registration approximately 18 months later, a further €1,762 cost arises. (Copyright Association of Ireland, 2020)

Product/Service Development:

There are a couple improvements for further d2p design development. USB charger ports will be put in the desk to give more freedom and futuristic touch. As well as the storage space can be custom made.

R&D:

For Research and Development primary and secondary research was carried out the the main reason for the interviews is to understand the problems people had in the office spaces. Also to improve R&D there will be surveys introduced so when one will make a purchase of d2p desk they can carry out the survey for well-needed feedback to see how they find the desk, is it hard/ easy to put together, or use. When all information is gathered it may be used to develop to make the new more futuristic desk, the company will continue to try to find the best reusable materials to improve the business.

 

Number 6 Staffing and Operations:   

Management Organization Charts:

The following image shows the intended organizational structural d2p will take. At present, there is only one member on the team (Egle Dapkunaite the founder), but as the business grows so too the organizational structure.

The image was accessed from Google images on 12/03/2020.

Staffing:

Staffing for d2p business are:

CEO: Egle Dapkunaite, General manager that would oversee the whole business and works on the strategies to improve the various aspects within the business. The general manager controls the staff, operations and customer care. An accountant is one of the critical points of keeping a company afloat. Accountants help the business with financial strategy, and they can assist the business with being tax compliant. Marketing guru will look after marketing needs. As the business grows it may be getting different people for the different aspects of marketing. Administrative assistant CEO can delegate the task to give them time away from more critical parts of the business. IT technician to fix or help with the computers if the system is down to make sure the business is running smoothly. HR (Human Resource Manager) to hire and manage people. As the business grows bigger more staff will be hired due to their skills.

Training Plans:

Employee training is very important because it helps to improve employee engagement and increases employee retention. Training is good for employees and for future customers too.

1.      Establish program goals capture needs. Capturing a clear, honest set of needs helps businesses to establish what it will use as a marker of success for business employee training initiatives. It also enables us to prioritize which training objectives need tackling first, which ones will be most appreciated by employees, and which have a bigger impact on the business. (Elucidat, 2020)

2.      Choosing the right employee training software. The main elements of any new online learning initiative must carefully consider are the content authoring tool and the deployment method. The content authoring tool is a piece of software that allows businesses to create eLearning courses that the employees can engage with. Deployment methods for online employee training. Businesses can create a learning portal and let their staff access it from there. It can be password protected. (Elucidat, 2020)

3.      Create useful and engaging employee learning experiences. How well the business employees engaged with training will determine how successful it will be. (Elucidat, 2020)

4.      Deliver training to employees at the right time. It’s important to provide training to employees in ways that will be most useful for them. The key is that the training and access method is convenient for the audience. (Elucidat, 2020)

5.      Track & improve. Review online quick results to see if questions are consistently answered incorrectly. Measure customer satisfaction to determine if the training is having the desired effects. Directly ask employees and managers about their performance pain points and what’s helping. Review support request to see where training could be created or improved. (Elucidat, 2020)

Operations:

Operations will begin with a CEO who understands the marketplace and can define clear KPIs (Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives). (KPI, 2020)  Then the CEO needs to draw a business plan. Set revenue and profitability goals, create a human resources team, hire the right employees, offer benefits for staff and implement the right tools for business growth strategy. (Business Plan, 2020)

 

Number 7 Financial Projections:

Key Assumptions:

The key assumptions will be divided into income and expenditure they will be shown as follows:

Income:

·         Sale of product

·         Sale of parts

·         Income from loan

·         Income from entrepreneur programs

·         Savings

Expenditure

·         Wages

·         Cost of materials

·         Cost of storage

·         Cost of distribution

·         Cost of marketing

·         Unforeseen/additional cost (phone bills, Wi-Fi, etc.)

Profit and Loss Account:

			d2p
Profit and Loss Statement
For the period ended 1 January 2020 to December 31, 2020
					Debit €	Credit €
Income					€2,000,000
Sales					€3,000
Other income						€2,003,000
Expenses
Accounting					€5,000
Advertising					€30,000
Assets Small					€1,500
Bank Charges					€4,500
Cost of Goods Sold					€35,000
Depreciation					€8,000
Electricity					€25,000
Insurance					€6,000
Office Supplies					€500
Rent					€45,000
Repairs & Maintenance					€3,000
Stationery					€1,200
Subscriptions					€15,000
Telephone					€3,000
Training					€10,000
Wages					€140,000
Promotional Cost					€10,000
Storage Cost					€30,000
Cost of Materials					€60,000
Total Expenses						€364,400
Profit						€1,638,600

 

 

 

 

Number 8 Approach to Sales / Sales Pipeline:

Approach to sales for d2p will include demos all over the country it will expand to the UK and EU when the business grows bigger. At these demos, a salesperson can approach the potential customer and demonstrate how would d2p works. This also allows us to explain the customers your business, it also includes pointing out how many were sold in the past, recommending a certain model that costs less, or that d2p can be made custom design.

Another approach that d2p is going to use is consultative selling this helps in selling technical products or services to businesses. The seller will build up a relationship with the buyer, using technical experience or certification to analyze problems and offer solutions.

Solution Selling is another approach that can be used to help d2p business. Solution selling defines the problem by asking relevant questions and listening to the customer. Questions can help get to the roof of the customer’s problem and give the salesperson a clear idea of what they are selling. (Chron, 2020)

Image is from Google images, accessed on 17/03/2020.

Sales Pipeline: for the first year of d2p business are to go to all the demos all over Ireland, the second and third year of the business go to demos all over the UK & EU. Some demos listed in Ireland Trade Shows in Ireland, The Architecture, Design and Planning Expo, Ireland’s Leading’s SME Network Expo, in UK Basingstoke Business Expo 2020, Southampton Business Expo 2020, UK's Largest Business Exhibition and in EU Trade Shows Worldwide - Europe - 2020/2021, LOGIMAT International Trade Fair for In-Company Distribution, Materials Handling and Information Flow, Business Trade Fairs & Exhibitions in Germany. From these various shows that will take place our potential customer base has been identified it will allow for a pipeline of potential sales to be created and clearer estimates to be seen for future sales.

Number 9 Funding Requirements:

Ireland embraces enterprise and there are over 170 different Irish Government supports for new businesses including grant money. (Grants and funding, 2020) There are also different banks and loan companies that will lend business money to help to set their business. When applying for a loan one needs to take into consideration the smallest interest rate and make sure they get the best offer. To set up d2p business there will be a loan borrowed from the bank of €400,000 @ 10% for the cost of materials, labor, to pay employees wages, storage units, rent, bills, insurance, depreciation, etc.

Number 10 Appendices:

The images attached bellow are the final presentation boards for d2p prosocial. The first board is the research that includes primary and secondary research on the back problems in the offices. The second board shows how the d2p desk is going to be constructed, and the third board shows how the table looks when it’s been put together, it shows elevations and a plan of d2p, the materials, 3D views and the render of people playing ping-pong. All boards below were made by Egle Dapkunaite.