LINK FOR THE BOOK (you can also check the questions): https://b123im434-mp02-y-https-library-books24x7-com.proxy.lirn.net/toc.aspx
PLEASE check the ass attached before answering the questions so you know the business I have been working on.
: The balance sheet
Using the template link provided at the start of this chapter:
Using the format on the break-even analysis sheet (Table 20.1):
a 10 per cent rise/fall in sales volume;
a 10 per cent rise/fall in unit selling price;
a 10 per cent rise/fall in variable costs per unit of sale, eg a meal;
a 10 per cent rise/fall in fixed costs;
a requirement for achieving your profit objective by year 1 – now what ‘volume’ of product must you sell to break even?
Table 20.1 (PICTURE ATTACHED)
: ESTIMATING FINANCING REQUIREMENTS
Based on your financial projections, state how much cash you need to raise to set up your business, and how and when you propose to repay it. Use the questions below as the format for your worksheet:
: STRESS TESTING YOUR BUSINESS PROJECTIONS
Southern States University
1. Who will conduct the selling for your business, and have they been professionally trained to sell?
The business will use personnel to sell the products to the public, and the personnel will have received the best training to handle the clients.
2. What selling methods will they employ?
The personnel will employ the ideology of training to deliver the best to the people.
3. Will you use point-of-sale material – leaflets, brochures, or videos, for example?
I will use point-sale materials such as brochures and leaflets to ensure that the people can easily understand the education.
4. Who will manage, monitor, and control your sales effort, and how will they do so?
The product tracking will be done by properly packaging the products when the customers buy through the identified courier.
5. Describe the selling process, leading from an unaware prospect to a converted client, covering identification of decision makers, overcoming objections, gaining agreement, etc.
The selling process will commence with identifying suitable places where the customers will not struggle. The second ideology for sales will include the identification of the distribution channel where there will be no intermediaries. The operation risks will be identified to ensure they are sorted out during the operation. The other idea is contacting the clients and the last part is after-sales services offered to the clients.
6. What procedures do you have for handling customer complaints?
Various communication channels within the organization enable communication with the customers. The various communication channels will enable the customers to choose the best communication channel depending on the urgency of the complaints.
7. What incentives exist for people to meet sales targets, and how will you motivate them to do so?
The products will have the best quality, motivating the clients to purchase from the business. Additionally, there will be frequent communication to notify the client of any dispatch to encourage them to purchase from us.
8. Who will direct, monitor and control your sales effort and what experience/skills do they have?
The online group will monitor the sales, who will have great skills in dealing with the products and identifying the changes on the products.
9. How long is the process from becoming aware of your product or service to making the buying decision, receiving the product or service and finally paying for it? This will have an important bearing on your cash flow and initial sales forecast.
The creation of awareness will be easily conducted through the online team to ensure that the people can easily access the products.
10. What sales volume and activity targets, such as calls per day, etc, have you set for each salesperson or selling method?
I have set excellent sales volume and activity targets to ensure that most people can access products on time.
11. What processes will you use to ensure you are paid on time?
I will ensure that all the products are delivered on time and that most activities are complete before the end of the payment period.
1. How much of your product or service do you plan to produce in-house?
I am planning to produce high amounts of the products to ensure that most people can access the variety of the products.
2. If you are making a product, describe the production process; also explain how your principal competitors go about manufacturing.
The production process will involve identifying the resources required for the production and getting the best labor to undertake the process. The required technology will also be collected to ensure that production output is achieved.
3. What plant and equipment will you need, what can it do, how much will it cost and where will you get it from?
The plants’ aid will be used in producing the arousal sexual desire and other plants associated with producing sexual materials. The plants are good at producing mass products at a time and will enable the business to grow fast. The plant will be accessible from the market, and thus, it may cost $2450.
4. What bought-in materials and/or services will you need, where will you buy them from, and how much will they cost?
The bought-in materials and services we will need will include laptops and other accessories and will be bought from the local markets to ensure that the cost of the products is reduced.
5. How will you equip your office? I will equip the office with the best technological materials to ensure that the sales and production tracking is appropriately conducted. The best expertise will be employed to run the office and ensure that the people are willing to access the customers.
1. Does your venture require a licence to operate?
The venture requires a licence because it must pay the nation’s taxes.
2. Will you be holding data on customers, suppliers, and employees, and if so, what are the implications of the Data Protection Act on your plans?
I will hold the data of the customers and suppliers to ensure that I can follow up on them when necessary. The idea implies that the data protection Act should guide the business to ensure that the data from the clients are closely protected.
3. Does your proposed advertising, both print, and website, comply with the various advertising regulations?
The website-based advertising rooted in social media advertising is one of the best and always complies with the advertising regulations.
4. How will you handle refunds?
When the refunds happen within the organization, I will be accepting the refunds to ensure that I protect the picture of the business.
5. Will you have to register for VAT, or could it be to your advantage to do so?
I will have to register for VAT to ensure that the chances of the business being closed down because of tax evasion is worked out.
6. If you have to register for VAT, which is the best scheme for you?
The best scheme for me to register for will be the VAT Annual Accounting Scheme to ensure that I will be handing over the taxes by the end of the year.
7. How much tax do you expect to have to pay?
I intend to ensure that I pay the tax that correlates with the products I operate with. The VAT calculation will be based on the products I am operating with.
8. Will you have to collect and pay tax for any employees?
The human resource manager within the business will be mandated to pay any employees’ taxes.
9. How much NI will you be responsible for paying?
I will have to pay national insurance based on the amount that I gain from the business. If the weekly payment is $242 to $967, I will be mandated to pay 13.25%.
10. Have you incorporated the cost implications of these operating regulations in your financial forecasts?
I have incorporated the cost implications of the operating regulations in the financial forecasts to ensure that most of the projected challenges are taken care of. It is always very important to ensure that the financial forecasts are taken with great care to eliminate failure cases.
Southern States University
The business will implement the best and latest marketing strategies to create business awareness and also to market the business products. These market techniques show how our business is competitive as they present the uniqueness of our services and our products. The aim of using the strategies is to make my products and services stand out from those of our competitors.
Social media marketing is the first marketing technique that will use to market our business. Our competitors are already using this strategy; however, the strategy has notes effective as it is supposed to be because of lack of creativity and innovation at the same time. Also, our competitors one line of business limit them in ensuring that they satisfy all the customers’ needs.
The first innovation is the creation of a website that will enable clients to observe our services and products. This strategy is not new since our two identified major competitors have theirs; however, our website will differ from their as far as marketing is concerned. There are different techniques that we will use to drive huge traffic to the website and ensure that we got enough clients. First, we will optimize the website so that the clients will not have issues when navigating through the website. Second, we will implement analytics to collects information from the users and use the information to enhance their experience when using the site.
Our second innovation is the social media marketing platform to achieve different social business needs. A study on the use of social media shows that about 60% of the population has accounts in different social media platforms. This number is high and should be utilized to achieve different needs of the organization. Apart from advertising, we will integrate social media communication channel with the organization website so that we can answer the clients queries in real time. Timely response to the client matters in marketing and since it is not possible to be always online, it is important that we integrate the chat functionality with our website.
Apart from the technological innovation, we will also make use of the traditional marketing methods innovatively. Our business provides both products and services(education); therefore, blending them together will make our strategy stand out from those of our competitors that offer one line of service products.
Our business will make use of the online presence majorly to do sex education and training. The clients will have to attend an interactive session to be held at specific time. However, we will also have a local premise where our primary operations take place. The premises will also have sex products that will be delivered to the customers when they purchase them. Also, the premises will enable the customers to come and seek firsthand information when they need in our localized premises.
A plan is in process to gain premises for the most preferred cost depending on our needs. Our plan is to have a premise that will not limit us in terms of space to carry out our business with no issue. Therefore, to get the most desirable place, we must first thing about the associated costs and how we meet that cost.
We want the business to begin immediately; thus, we have gained a building on a mortgage that will be paid over a period. The current value of the offices for the business in the location is about $600 000. This is an amount that we will use to purchase the build through a mortgage from one lender. The identified building goes for slightly higher amount but will pay the $50, 000 amount on cash and gain the building through a mortgage for the remaining balance. This is the most preferred way since it will not drain us financially. The current rate for the mortgage is an annual of 5.4%. thus will require us to pay about $2770 monthly an amount that is most affordable.
Since we are gaining the business premises, then we are going to incur some business premise rates that accrue on monthly and annually. The business will have to incur the land rates that the government requires of all lands owned by individuals and businesses. Apart from these rates, the business also will incur other expenses that will enable it to run effectively. For instance, insurance and electricity bills.
The business will be insured so that it is secured from any uncertain eventuality. We will incur three types of business insurance to protect the business from any loss that can come because of the losses linked to that insurance. The following are some of the insurance that business will take.
Professional liability insurance–this is insurance that protects business from damages that come because of the negligence because of mistakes or failures. The cost of this insurance ranges from $a 1000 to $5000 depending on the insurance company that will be contracted.
Property insurance–our business will have a different type of properties that has monitory value. This include the equipment, inventory, and furniture. The property insurance will insure these properties from any damage that might come. The premium for the insurance is calculated by the insurance company that is selected.
Business Interruption insurance – since our business will operate in a physical location, some of interruption might come on the way, for instance, political issues and natural destruction. This will require used to insure the business to be compensated in case of the interruption.
Adequacy of the premises
The premises are adequate for now, considering our current target market. However, our projects suggest that the business will be good and we will need to expand in the future to accommodate the growth both physically and online. For the physical growth, the business will open other offices in different location from where they will serve our customers. For online growth, we will create additional sex education topics that will handle different topics preferred by the customers.
Finding business premises
We have not found the premises yet, but we are planning to identify suitable places where the customers will not struggle to find us. Also, as we stated earlier, we intended to own the premises rather than renting them out from other business or people. Owning the premises will allow us to have full control of the premises regarding the use and expansion.
Our business will offer sex products and education. Therefore, we have no intermediaries between us and our clients. We sell to the directly. We will deliver our sex toys to customers through any currier service upon the purchase, while the education will be carried directly to the interest of individual upon subscribing for the service.
The business will not encounter any significant risk during operations. However, some of the risk that might happen can be managed easily. One of the risk is lack of personnel who will handle training and manufacturing the sex products.
Contact with customers
Our personnel that will come in contact with the customers must have received the best training regarding how they are supposed to handle the clients. For example, taking sex education requires people who understand and have been trained on how to carry the sex education training.
After-sales support and advice
The after sell support and advice applies only to our sex tools. A manual on how to use this product will be packaged together and delivered to the customers. Also, our team will make a follow up to the customer to ensure that customer is satisfied with the product. Finally, all customers that purchase the products will get free sex education training that will be availed through our website. This is the strategy that we will use to keep our customer updated with new products and services that they may keep getting them from our company.
Tracking the products
Most of the products that we will sell will be readily available. Therefore, when a customer purchases them, they will be packaged and delivered through our identified courier. for the customer satisfaction, we will select courier service that will enable the customer to monitor the products until they are delivered.
Communication with the organization
There are different modes that we have selected to enable used to communicate with our customers. The various communication channels will allow the customers to select their most preferred channel depending on the urgency of the information. We will have a phone number that will be available 24/7. Therefore, the customer will use it to connect with us whenever they have an issue or want to relay important information to our team. Email is the second mode of communication that will be implemented in the organization. It will be used for official clients will like to take with the organization. For example, notify the client on the dispatch of the merchandize and also on the training information for the case of training.
Our products and services must meet the required quality. Ensuring that the products have the Right quality is one technique that we will use to difference our products and services from those of our competitors. How are we going to ensure the highest quality standards? By setting quality department that monitor the quality of the products and training. Anything that does not meet the setting quality standards will not be allowed to go to the market. This strategy will allow us to maintain customer trust.
Through the comparative analysis of the web performance, we observed that two websites of our two competitors do not rank as expected. This is a sign that they do not mind about their online presence and thus give us an opportunity to outsmart them in the business. We will have our website optimized so that it ranks well in the search engine. Also, we will optimize the website for speed and also responsiveness so that the clients will not have a hard time using the website.
Website domain name
The domain name of our website will go hand in hand with the name of the business. This will enable the customers to easily search and identify the website. It is also important to make sure that the domain name goes well with the business theme of the business as most customers are likely to such certain keywords that will appear in the website domain name. From the critical analysis and research of the best domain name, the “sexeduhub.com” suits our websites because our business provides sex education and sex products. The domain name is also easy to remember and thus our customers will always have a simple time searching and navigating through the website.
Submission of services
Through our website is possible that customers could easily submit services to the organization. Our website will have an integrated form that allows the customers to submit their information or message. The team responsible will always respond to the massage at an appropriate time in order to convert the customer. We will test all the communication channels integrated into the system to ensure that they are all working and efficiently delivers message to the organization.
Social media review
There are many social media channels that are in existent currently. However, the number of users in each differs depends on the preference of the social media. The business will have to use the mostly used social media platform to reach the most of the clients. According to our analysis we have established that face is most widely used social media and we expect using more to get our clients. Also, Facebook is ranking the top in the number of marketing strategies we can use to sell our products. Apart from Facebook will also use twitter and Instagram sparingly because they do not command a high number of users as compared to Facebook. However, the integration with our website will ensure any post appearing in our social media also appears on our website.
Tacking and analyzing the web traffic
We will use google analytics to track our website traffic. This will give us an opportunity to see our performance as far as the web performance is concerned. Also, analyzing the traffic will give us insights on the type of services and products that are performing well.
Southern States University
1- Describe your product or service, as if explaining it to a novice.
The business I’m starting is an online sexshop, selling sex toys and lingeries. Aside from that, I would like to focus on sex education. I’ll have a business Instagram account where I will work with a sexologist and we will post videos and pictures about issues that most people have related to sex. Our goal is to make people feel secure, explore, and love their bodies.
2- Is it currently available for sale? If not, what needs to be done, how much will that work cost and how long will it take?
At the moment, me and my partner are still deciding which toys we will sell and which manufacturer we will use. The lingeries will be designed by a friend of mine and made by my vegan leader. Our plan is to invest $3,000 to start the business and launch it in July 2023.
3- Do you have, or plan to have, any legal protection such as patents? If so, explain what you have done so far to establish your rights.
We probably won’t have a patent, since I don’t think it’s necessary, at least not in the beginning. If we decide to create a new product that doesn’t exist on the market, then maybe yes.
4- How is your product or service different from those already on the market?
Initially, I will sell the same products that other companies sell; however, it will be my marketing strategy that will make the difference. We will use Instagram and our website to communicate with our clients, teaching them about their bodies and sex wellnes . In addition to talking with our sexologist, clients will have the opportunity to ask her questions. My brand will be the first to combine sex education with the sales of sex products.
5- Will you be providing any warranties, guarantees or after-sales service?
We will provide warranties in case the product does not function as originally described or intended.
6- Are there any possibilities of developing new products or services complementary to the one(s) described above?
It is one of my goals to create a product that does not exist on the market in the future. I don’t know what it will be yet, but I have an idea in mind that involves a vibrator and an egg controlled by an app from anywhere in the world. They both vibrate on the same level, so couples who live far apart can feel a little closer.
1- List all the costs you are likely to incur in making or marketing your product.
We’re going to buy toys and lingerie from manufacturers, packaging, shipping, ads, and influencers to promote our brand.
2- Refer forward to
and then calculate the fixed and variable costs associated with your product.
To answer this question, I will select only one product, Satisfyer Pro. Fixed: .$3.000 Unit variable cost: $15
3- Using the costs as calculated above and your profit objective, calculate the optimal price you should charge.
The price I should charge for the Satisfyer pro is $70 per unit.
4- What price do your competitors charge?
Compared to what I’ll be charging, my competitors will charge between $10 and $20 less.
5- Compared with your product/service how much better/worse are those of your competitors?
It is unlikely that I will have a competitor selling a better service than me. Sex toys and sex education are not combined by any brand yet.
6- Are any of your possible market segments less price-sensitive than others?
7- Does your answer to question 6 lead you to believe that there is an opportunity to sell at different prices in each market segment – and so enhancing profits?
In the beginning I pretend to keep the same prices independently of the market segment.
1- Prepare a leaflet describing your product/service to your main customers. (Don’t worry if you don’t plan to use a leaflet – the exercise will serve to ensure you have put your offer in terms that recognize customers’ needs, rather than simply being a technical specification.)
As a provider of products and services, my goal is to enable my clients to relax their minds, discover their sexuality, and have their biggest orgasms. People will feel more empowered and happy as a result of my business.
2- Write a press release announcing the launch of your venture. List the media to whom you will send the release.
Something like “ give yourself the pleasure you deserve and have a better life.”
3- Prepare an advertising and promotional plan for the upcoming year, explaining:
a)what you want to happen as a result of your advertising;
I want people to get to know my business and be curious about it. I want people to see my brand as something that will transform their lives with self-respect and self-love.
b)how much it’s worth to you to make that happen;
It is extremely valuable for us to build our reputation.
c) what message(s) you will use to achieve these results;
I’m not sure yet what the message is going to be yet. It has to be really well elaborated so people don’t misunderstand it. We must be extremely careful when discussing a topic like this.
d) what media you will use and why
My plan is to use Instagram because I believe it’s the best platform to communicate with the public nowadays.
e) how the results of your advertising will be monitored;
We will be tracking the number of people liking and commenting on our posts, clicking on our website, and the amount of products sold through Instagram.
f) how much you will spend.
I plan to spend $2,000 on ads.
g) If you have already done some advertising or promotional work, describe what you have done and the results you have achieved. Has your work on this assignment given you any pointers for future action?
This assignment made me realize there are a lot more things to consider before starting my own business.
Southern States University
In relation to Porter’s five forces, the business exhibits the threat of new entrants into the market. In essence, the business is a new entrant and may have to face stiff competition from new entrants who may be interested to engage in the business. Moreover, the business has an issue with the bargaining power of the customers, as many customers would view the business as not experienced enough in handling sexual education in tantra and sensory sex.
Another advantage that the business can expand on in the business plan is the integration of the sex industry through offering discounts and free tconsultation with therapists and sexologists to first-time customers. Specifically, free therapy for new customers will enhance the market share of the business, thereby leading to high-profit margins, as well as expanding the market share of the business.
In regard to strategic positions under consideration in the industry, many operators are projected towards differentiation and innovation. As such., every competitor in the market is striving to maintain the customers by coming up with service innovation and product innovation to enhance profitability, as well as to maintain the market share.
Further, the business will be established under the strategic position of differentiation. Product differentiation, as well as service differentiation, is very key and vital in enhancing growth for any business. As such, the business will come with a unique experience of lessons, as well as free consultation for first-time learners, thereby leading to a better performance in the industry.
The proposition of the plan was greatly inspired by the desire to engage in sexual education., which is not only beneficial to couples but also for young adults. The fact that every person is interested in getting to know the issues related to sex makes me believe that the business will succeed. The mission of the business is to provide customers and lovers with an intimate experience during intimacy. On the same note, the vision of the business is to grow into an organization that enables various individuals to attain proper communication, sexual harmony, respectful relationships, and self love as well as mindfulness during intimacy, thereby creating an enabling environment for intimacy. Furthermore, the short-term objectives of the business include attaining a transformative pleasurable experience, whereas the long-term objectives include creating awareness in regard to mindful and harmonical sex, overcoming sexual misconceptions, and promoting communication between partners during intimacy.
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