The name of the business to be set up is called “Ali Musa Scribble Pen enterprise”. The business will be situated in Machester City, London. The business product is “scribble pen”. The purpose of my business plan is to enable me have a guide and a focus on the method and means of achieving the business in a very good and successful way. The business target market includes everyone, but most especially, artist and graphic designers. The mission of the business is to provide quality, standard and affordable scribble pen in order to make life easy for anyone interested in scanning a color of an object, drawing, writing, sketching an image from its original form to a paper or digital device.
The business is aim is to provide a scribble pen service to its targeted market and to ensure that the needs of its target market are met. It is not the day that s new business is set up that the business and its location becomes popular so, different marketing strategy such as advertisement, sharing of fliers, e-publications, seminars, etc. will be employed so as to make the business popular, known and for customers to easily access the product.
The strength of the business is that the Scribble pen is a very unique and special pen with special features and function. The pen can recognize and scan any color of an object (as many colors as possible), and then replicate it on a paper or digital display. The pen can even store thousands of colors, the pen is long lasting and the colour does not easily fade off.
The weakness of the scribble pen is that the pain is sold at a high price. The price of each Scribble pen is $150 and it is much higher than other type of pen in the world.
The opportunity the business offers is the fact that Scribble is a product of new technological innovation, it is a recent development of the ongoing 21st century that does not have too many competitors in the market. In addition, Scribble pen is an extremely new product In London and as such, the consumer can be accessed and approached without stress or worry. (Tien, 2016)
The threat the business poses is that of the price, the price could discourage the consumer. The price could serve as a big obstacle when promoting the product.
The awareness of the brand in Vietnamese market is very low because this product has never been launched in Vietnam before. Basically, there is really no competitor, but the weakness of the product, such as the price might become the big obstacle of this promotional campaign. (Tien, 2016)
BUSINESS DESCRIPTION AND MARKET OPPORTUNITIES
The type of business I will like to set up is a scribble pen business. The business has a very large market opportunity because the business is a new innovation and only a few knows about it. Presently, the business is not so competitive which gives room for higher sales and profit making. The existence of the business will help increase the knowledge of people about the use, function and importance of the product (scribble pen). (Scribble, 2014)
The goals and objective of the business
The goal and objective of this business is to provide users the opportunity to scan, write, draw, sketch, paint and share on devices such as surface Pro, Android Tablet, iPad and iPad Pro without stress and with ease.
Description of product
The unique features of the pen, is that the pen has two ends (a nib and a scanner), it also has five refillable cartridges that are made up of white, black, yellow, magenta and cyan colours. It can be used to draw directly on paper. The unique features of Scribble pen are the most prominent advantages of Scribble. First, you can scan any colour that you want on any items and subjects such as fruits, animals or flowers in a very simple way. You just have to point the RGB colour sensor to the objects (Franco, 2014), the colours will immediately be identified. With a huge internal memory, Scribble can identify and store the 16 million different colours (Lowe 2014). Moreover, the custom colour will be transferred easily to the electronic devices such as tablets or mobile phones, and it also can be easily combined with various popular design or graphics softwares like Photoshop or Corel draw. (Scribble 2014)
The functions that this pen provide are very unique. The pen provides users the opportunity to scan objects as well as draw/write object just the way the objects are. Whenever an object is scanned with the pen, the pen mixes the inks in its appropriate proportion so as to ensure that the object scanned is replicated and immediately, gives users the opportunity to draw the object. This special pen can work with any type of device provided that the device has a Bluetooth or a micro USB. The unique colours the pen provides makes the pen suitable for any type of digital work. This pen can discover millions of colours and thousands of colours can be stored on the pen at any point of time. The pen is specially designed for everyone. The pen will be made available in stores. Users can easily access the pen by going to nearby stores. The location of the business will be favourable to distributors (customers). The company will be located in Manchester city, London. The company will be accessible by major roads, freeways, walking depending on where customers or buyers are coming from. The company will be recruiting about a maximum of 100 staffs for a start, as the business progresses, more staffs will be recruited. These staffs will be employed and positioned based on their level of education. The company will need both skilled and unskilled labours. The business will make money by inviting investors to come and invest in the business. The price of each of the pen will be determined by the cost of production for each pen. The business will be a sole proprietorship kind of business but will give room for investors /shareholders. The business will go through all legal process, and be legally authorized.
Market Analysis and Strategy
Presently, the product is not rampant in the market. The market demand for the product is not so high because the product is a new innovation and many don’t yet know about it. The price of each Scribble pen is $150 (Scribble, 2014). Moreover, Scribble is a new brand all over the world. The latest promotional campaign of Scribble was launched only on the internet. They did not have any offline activity particularly. (Tien, 2016)
In a few years from now, the business will be competitive in nature because of the market demand for the product will be high and almost everyone would have known about it functions value. Setting up the business at a period when it is not so competitive will be of a great advantage to my company business because my business company would be able to make its name and gain its customers. For the business to grow, customers are needed. The business will get customers by advertising the product on social media such Facebook, Twitter, etc. the company will also use e-marketing to publicize the product such as ebay, the company will hold a public lecture/seminars on the product and services the business will provide and the company will sponsor events where the product can be advertised. The business target is the whole sellers who will help channel the product to the retailers and the retailers will sell to the final consumers.
DETAILED COMPETITORS ANALYSIS
The San Francisco-based startup Scribble Technology, Wenzhou forever electronic Co.,Ltd, Ningbo, yizhou totop stationary manufacturing company are major competitors. My company will continue to compete and ensure it stands out by bringing new innovation that will continue to make the business attractive to the market. The company will ensure that the product is easy to use by all users. When the market demand for the product because very high, the business will not relent, it will continue to ensure it stands out among many competitors. The business will start with unique quality and essential features which will be improved upon timely to suit technological advancement. The product will help ease the stress of drawing, designing, colouring, painting, sketching, etc. depending on the purpose the user wants it for. The business will have a better advantage in terms of completion because the product will be of higher quality than any other in existence, durable, portable, accessible and affordable at the best market price.
Structure of the business
The business will have the following structure:
A profit and loss summary table, a sales forecast and details of costs for the first year of operation.
|Cost of goods sold||$500,000|
|Merchandize purchases||$4,200, 000|
|Cost of goods available for sales||$4,800,000|
|Less ending inventory||$500,000|
|Selling, administrative and general expense|
|Salary and wages||$1,000,000|
|Light, heat and power||$100,000|
|State and local taxes and license||$100,000|
|Depreciation and amortization of leasehold improvements||$50,000|
|Profit from Selling, administrative and general expense||2,400,000|
|Profit from operation||1900000|
|Net profit before tax|
|Provision for income tax||$400,000|
|Profit from operations||15000000|
In starting up any business, finance is an essential consideration. Finance is needed to start up a business. There are several sources of finance, but before one can request for finance, it is important for the person to know how much is needed.
A business financial need will vary. The size and type of the business are two important features that must consider for example, any business that has to do with processing always requires lots of money. While retail business requires very little capital. There are two major types of finance and they include debt and equity. (Hofstrand, 2013).
Equity: it represents the personal investment of the business owner. It is sometimes referred to as risk capital because investors are likely to lose their money if the business folds up. The entrepreneur always gives room for other investors. (Hofstrand,2013).
Advantage of Equity
- For entrepreneurs, the primary advantage of equity capital is that it does not have to be repaid like a loan does.
- Equity investors have the right to share in the company earning and they have a say (their voice are being heard) in the company decision.
- It does not provide an opportunity for entrepreneurs to borrow funds from a commercial bank
- Only the entrepreneurs bear the risk.
Sources of equity finance
The sources of equity finance includes, Personal savings, friends and family members, angels, partners, corporations, venture capital companies, public stock sale etc.
Debt finance requires borrowing funds from creditors with a requirement of paying back the fund with interest at an agreed stipulated time. The creditors make their money through the interest they charge on the amount lent to borrowers.
Debt ﬁnancing can be either secured or unsecured. The secured debt finance has collateral (it is a valuable asset which the lender can attach to satisfy the loan in case of default by the borrower). While the unsecured debt does not have collateral and places the lender in a less secure position relative to repayment in case of default. (Hofstrand, 2013)
- Debt finance gives room for wider financial sources for new entrepreneurs to access.
- They give out both long term and short terms loan for entrepreneurs giving an entrepreneur a choice to make.
Disadvantages of debt finance
- Even though sources of debt financing are more numerous, it can be difficult to find equity finance.
- It can be very expensive, especially for small companies, because of the risk/return tradeoff.
Sources of debt finance
Commercial banks, Assets-based lenders, Trade credit, Equipment suppliers, Commercial finance companies, saving and loan associations.
The sources of finance I will be using to finance my venture
I will be using the debt financial source, I will be using the debt financial source because, the business I will like to venture into a business that requires large capital investment. The only possible financial source that can provide me with the kind of money I need to start up my business is the Lloyd commercial bank.
The way the investment capital will be used
My investment capital will be used in furnishing my business, it will be used in buying the necessary equipment my business need, it will be used for promoting the business through advertisement and the rest of them, a part will be used to pay my staff and some will be saved for damages in the first few months.
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