Question.865 - Table 7.3: Outline of a Business Plan Introductory Page Name and address of business Name(s) and address(es) of principal(s) Nature of business Statement of financing needed Statement of confidentiality of report Executive Summary - Two to three pages summarizing the complete business plan Industry Analysis Future outlook and trends Analysis of competitors Market segmentation Industry and market forecasts Description of Venture Product(s) Service(s) Size of business Office equipment and personnel Background of entrepreneur(s) Production Plan Manufacturing process (amount subcontracted) Physical plant Machinery and equipment Names of suppliers of raw materials Operations Plan Description of company's operation Flow of orders for goods and/or services Technology utilization Marketing Plan Pricing Distribution Promotion Product forecasts Controls Organizational Plan Form of ownership Identification of partners or principal shareholders Authority of principals Management team background Roles and responsibilities of members of organization Assessment of Risk Evaluate weakness(es) of business New technologies Contingency plans Financial Plan Assumptions Pro forma income statement Cash flow projections Pro forma balance sheet Break-even analysis Sources and applications of funds Appendix (contains backup material) Hisrich, R., Shepherd, D., & Peters, M. (2017). Entrepreneurship (10th ed.). McGraw-Hill Education. Submission Instructions:? The detailed summary should be 3000 words in length that uses the current APA style and format.? Complete and submit the assignment by 11:59 PM ET Thursday. Late work policies, expectations regarding proper citations, acceptable means of responding to peer feedback, and other expectations?are at the discretion of the instructor.
Answer Below:
Final Entrepreneurial Business Plan Development Armon Love St. Thomas University BUS 536: ENTREPRENEURSHIP Professor Justin Peart March 2nd, 2023 Introduction Content writing that involves services from product/service description, brochure content, blogs, social media marketing, and website content. The mission is to produce pristine and fresh content that is irreplaceable by other writers or artificial intelligence. The content should reflect the intent of the customer to the core. For example, if we're writing the content for an organic food store, the words should reflect the natural approach of any of the firms or individuals we serve. Primarily the reason was I always believed that writing was an art that any sort of technology cannot mimic since every individual will have an individual take on how they approach a particular content. To have a brief motivating factor from my personal understanding, I've worked for several firms and also been an intern, which was unsatisfactory; all my learnings were driven towards starting up my own firm where I could put my managerial skills to practice, plus my family never had a business background I wanted to start it up for the future generations. The authenticity of the content we try to focus on originality, plus the customer loyalty we try to build with each and every customer in order to depict professionalism and business ethics, the value proposal of the firm will serve as one of the driving beacons as we navigate the path to entrepreneurial success. According to Scrum.org, our business model is driven by the rationale which is demanded by the industry and also why the market exists. It is the value that any service will provide and how customers should choose our services over another. From either the customer's perspective, the value of the service is comparable to its advantages less its price. Our business model would constantly center on the consumer and their opinion of the worth of their service. Establishing channels for client input and capitalizing on it can guarantee that our service continues strong as it expands. That may be accomplished using basic, autonomous conversational technologies, structured questionnaires, forums that include our customer segment as a part of the business model, and other methods. The business model of the firm has been developed with field and industrial experience, and the pricing model has been drafted, and we had a UI/UI designer work on the website makeup of how it should after assessing the target market. Product(s) and/or service(s): content writing, primarily website content, blog, product/service description, social media marketing content, and more. There is no patent, copyright, or trademark for the services yet the discussion depends on the shareholders and business partners. Entirely online platform as per the draft business model, while some of the stakeholders believe it is better to build a physical firm and provide the employees and freelancers the scope to work in a corporate setting to instill work ethics and discipline. Since the existing plan is to build the firm in an online platform, we are planning on renting office space to set up a stakeholder hub for my partners only while giving the benefit of working from home for the rest of the employees and freelancers. The office is a rental space. For the drafted business model, there is no need to build a physical space in terms of inventory control, because most of the data will be stored in the cloud. In terms of technology, we need a constant internet connection, a tablet for UX/UI designers, and computers for the IT team and the business team. Risk Evaluation Financial risk: Given a shortage of funds and low profitability, small content-writing organizations may suffer financial hazards. This risk may be reduced by regularly monitoring cash flow, minimizing costs, and diversifying income streams. Cybersecurity risk: As a content writing firm, the natural order of working is exposed to the possession of sensitive customer information, making the information subjected to cyber assaults. To prevent this danger, strong cybersecurity measures such as firewalls, data encryption, and periodic data backups must be used. Risk of a bad reputation: In the content writing profession, reputation is key. Bad feedback, poor quality work, or missed deadlines may all swiftly harm the reputation. To reduce this risk, provide quality work and deliverability to clients, as well as proactive management of the online reputation via social media and other online channels. Assess the company's weaknesses Resources are scarce: Tiny content writing firms may have limited resources, such as funds, employees, and technology. This can have an influence on the work's quality and capacity to scale up. To address this shortcoming, it is critical to focus on developing a strong team, establishing efficient procedures, and investing in new technology. Lack of industry expertise: Because content creation is such a competitive field, it can be difficult for small businesses to stay up with the newest trends and best practices. To overcome this shortcoming, it is critical to constantly study and upskill, as well as attend business conferences and gatherings and communicate with colleagues and thought leaders. Novel technologies are needed Content management systems (CMS): A CMS may help the firm speed the content production process, boost team communication, and maintain content consistency across several platforms. WordPress, Drupal, and Joomla are all popular CMS alternatives. Marketing automation software may assist in streamlining marketing activities, tracking and analyzing client behavior, and improving lead generation and conversion rates. HubSpot, Marketo, and Pardot are all popular solutions. Industrial Analysis Trends of automation are helping start-up businesses to utilize the effectiveness of new technologies including improved AI, and 5G networking. However, this has impacted employment adversely. Though this is responsible for cutting down the cost of organizations, it is reducing the hiring of employees. Total industry sales over the past five years of Content Writing is approximately £270,000. The anticipated growth of the industry of content writing is interlinked with various factors (Hisrich et al., 2017). Currently, the demand for content writing is increasing because of the expansion of digital marketing. New platforms like Clubhouse and Tiktok are creating platforms for content creators in a broad spectrum. Industries of content writing are continuously increasing because, in 2019, there are only 1.5 million businesses. It has increased by 3.5% in the last year. Content writing is emerging with its various new products including video scripts, social media content, interactive content and podcasts script. Pros Media and The Writer are the big entities of this industry. Content Writing requires producing high-quality, SEO-specific content for making the business operations better than these competitors. This company provides work-from-home opportunities that help it to hire experienced employees. However, from work-from office, this organization requires to rent a space to work. It can affect the organization in managing resources because it requires purchasing computers and software. Sales of Prose Media has been increased by 5% in 2021 and similarly, The Writer has also increased its profitability by 9.5% in 2021. The Writer always focuses on hiring experienced candidates but their retention rate is not good. Similarly, though the retention rate of Prose Media is high, it has to provide training to fresher candidates. The current trend in this market is that SEO-friendly content writing is the main subject to attracting more customers. The profile of customers in the content writing industry is different from others. Customers may be individual persons, large entities, small-medium enterprises, educational institutes and digital marketing agencies. Content Writing is only focused on educational institutes and digital marketing entities while its competitors focus on others. Marketing Plan Marketing Plan Executive Summary: With a staff of 5 to 10 professionals, our content writing firm seeks to deliver high-quality writing services to customers wishing to improve their internet presence. By targeted marketing initiatives, we intend to broaden our reach to potential consumers, raise brand awareness, and increase revenue. Analysis of the Situation: Our content writing firm is in a highly competitive market with a strong demand for high-quality material. As businesses continue to migrate to digital platforms, the need for online content is likely to rise. Small to medium-sized enterprises, entrepreneurs, and people in need of high-quality content for their websites and blogs comprise our target market. Our content writing firm was launched in 2022 and has since established a good reputation for offering high-quality writing services. Our objective is to provide well-researched and entertaining material to assist businesses and people in developing a strong internet presence. Venture's Strengths and Weaknesses Strengths: A skilled writing staff Content of high quality Excellent client service Pricing that is competitive Concentrate on developing long-term client connections. Weaknesses: Minimal marketing and advertising resources; little market recognition. Opportunities: Rising online content demand A growing number of firms are going online There is a high likelihood of repeat business and referrals. Increased industrial competitiveness poses a threat. Price wars and downward pressure on pricing are possible. Study of Competitors: Our primary rivals are other article writing organizations and freelance authors. While many of our rivals provide comparable services, we distinguish ourselves by providing individual service and high-quality material that is targeted to each client's unique demands. Marketing Targets and Goals: In the following 12 months, increase brand recognition by 50%. For the following six months, increase website traffic by 25%. For the following six months, acquire ten new consumers every month. Raise sales by 30% in the following year. Marketing Strategies and Action Plans Product Development: Create a variety of content bundles to meet the demands and budgets of your customers. Provide reduced product packages that incorporate numerous content offerings. Pricing Strategy: Provide competitive price that matches our services' excellent quality. Discounts are available for new customers and big buys. Location Strategy: Promote our services and raise brand awareness through social marketing channels. Use email marketing to reach out to new clients and establish long-term relationships. Promotion Strategy: Create a content marketing strategy that portrays our organization as a content writing specialist. Use paid advertising networks to reach out to potential consumers. Budgets: Budget for marketing: $10,000 per year. Website development and upkeep costs $2,000 each year. Content creation costs $50 per hour for each writer. Sponsored advertisement costs $500 per month. Controls: On a monthly basis, review website analytics and social media data to assess progress toward goals. Do customer surveys on a regular basis to get feedback and discover areas for improvement. To maximize effectiveness, examine and update the marketing plan on a regular basis. The marketing plan for our article writing firm intends to broaden our reach to potential clients, raise brand awareness, and generate income. We want to reach our marketing goals and establish ourselves as a prominent provider of high-quality content writing services by concentrating on producing a variety of content packages, delivering reasonable pricing, and using social media and email marketing. Production Plan Will you be responsible for all or part of the manufacturing operation? Since the company is in the budding stage and involves less than ten employee count as of now, other partners and I will be handling the operations. If some manufacturing is subcontracted, who will be the subcontractors? (Give names and addresses.) None of the operations will be outsourced because we are trying to set a benchmark in the industry, which is being taken over by technological advancement as A.I. and other writing tools, outsourcing will hamper the overall image and the brand equity we are trying to build, and also we'd lose the authority of quality we're trying to produce. So taking up work that the present team is capable of delivering is one strategy we're working on rather than having subcontracts, but building a direct business with the customers. Why were these subcontractors selected? Not Applicable What are the costs of subcontracted manufacturing? (Include copies of any written contracts.) Not Applicable What will be the layout of the production process? (Illustrate steps if possible.) As per the draft created for the operations: the first step is to seek direct customers or clients in order to procure business, followed by the second step providing sample work to secure the leads, thirdly discussing the payment and schedule of the content in terms of service delivery, in the scenario, there is an urgent need for the service those clients will be given the option to choose the deadline for the service delivery. The fourth stage is service delivery and evaluation of the content, where the client will discuss if it needs improvement or if it fits their demand. The final stage is to deliver the final content and receive the payment. What equipment will be needed immediately for manufacturing? There is no particular equipment that's needed for the content-related service, while we're expecting a few computers with high-performing processors, internet connections, access to various digital content, and certain software tools like Grammarly and abode premier pro for video editing-related content. What raw materials will be needed for manufacturing? Not Applicable. Who are the suppliers of new materials, and what are the appropriate costs? Not Applicable. What are the costs of manufacturing the product? A rough estimation of the computer, internet connection, and software tools sums up to a one-time investment of around $6,000 to $9,000 for computers, while a monthly subscription basis for internet and software tools of about $1,500. What are the future capital equipment needs of the venture? The plan is to provide laptops to employees who work from home; those are the future capital investment, and slowly have a shift towards work from the office; we're looking for a corporate space and establishing two working shifts. If Retail Operation or Service From whom will merchandise be purchased? Since there are no technical specifications for the equipment, we assessed the pricing over various firms for the computer; some of it included purchasing it directly, but the cost drastically differed when we considered Walmart due to ready-to-use assembly and offer prices. How will the inventory control system operate? Presently for the operations, we use excel and monday.com subscriptions to manage the inflow of work in terms of assigning who gets what works and also to maintain the deadlines. What are the storage needs of the venture, and how will they be promoted? Since this is service-oriented, their storage is over the cloud; we purchase amazons web services to store the data online and use google drive to share a common dropbox between the client and the content writers. How will the goods flow to the customer? As above mention - we create a common dropbox and share the access with the client as and when the content is uploaded; we inform the client about it for review, and when the client gets back to us on the review update, and make another upload in the drop box, while the client also gets to upload relevant data pertaining to the content they desire which can be used as source material. Chronologically, what are the steps involved in a business transaction? Business procurement from direct customer - work sample for review and approval of business - discuss schedule and payment model they wish to opt for - deliver the work and seek payment accordingly. What are the technology utilization requirements to service customers effectively? Our current working model demands a chat application to ease the flow of communication with the customers. However, unlike other services, the primary conversation will be towards reviewing and improving the content we deliver, such as chat application, and having a group for stakeholders will complete the process. Organization Structure What is the form of ownership of the organization? This content writing idea was developed by a friend and me; we both own the business model. If a partnership, who are the partners, and what are the terms of the agreement? Apart from all the expenditures from the revenue generated, there is a 50/50 model based on the profit we generate. If incorporated, who are the principal shareholders, and how much stock do they own? Not applicable. How many shares of voting or nonvoting stock have been issued, and what type? Not Applicable. Who are the members of the board of directors? (Give names, addresses, and resumes.) There is no board of directors since the total count, including top management and the content writers, is around 8 to 12. Who has check-signing authority or control? Both the owners of the firm have the authority to mitigate the flow of operations and have complete control. Who are the members of the management team, and what are their backgrounds? Both my friend and I have experience in business management and teaching skills, with varying expertise in content related such as writing and video editing. What are the roles and responsibilities of each member of the management team? Both the owners tend to work in operations that are in direct contact with the customer and procuring business, customer handling, and finance. While the writers and content creators are targeted to focus on content creation. What are the salaries, bonuses, or other forms of payment for each member of the management team? The basic pay for content creators and writers is drafted to be around $25 to $35 per hour in addition to the rewards pay of $0.01 to $0.50 per which will be provided over the pre-set target. Financial Plan Considering the entrepreneurial business model of content writing company which we’re working on throughout the course, the firm is presently is operating with 8 employees: Sales: $500,000 Cost of Services: $300,000 Gross Profit: $200,000 Operating Expenses: Salaries: $150,000 Rent: $30,000 Utilities: $10,000 Advertising: $20,000 Sales Expenses: $5,000 Insurance: $5,000 Payroll: $20,000 Miscellaneous Expenses: $10,000 Total Operating Expenses: $250,000 Net Profit: Gross Profit - Operating Expenses = $200,000 - $250,000 = -$50,000 Taxes: $0 (Assuming no taxable income due to net loss) This is a draft of financial plan subjected to change in the future, the content writing company is expected to generate sales of $500,000 and could spend on the cost of services for about $300,000, subsequent in a gross profit of $200,000. Though, the company might sustain operating expenses of $250,000, including salaries, rent, utilities, advertising, sales expenses, insurance, payroll, and miscellaneous expenses, resulting in a net loss of $50,000. The company might not result in profit, and no taxes are owed due to the net loss nor break has achieved breakeven status. References Chen, Z., Qiu, Y., & Zhang, Y. (2018). Financial risk assessment for small and medium-sized enterprises based on D-S evidence theory. Mathematical Problems in Engineering, 2018, 1-8. https://doi.org/10.1155/2018/9564391Nikolov, M., Stankov, K., & Stefanov, N. (2019). Cybersecurity risks for small and medium-sized enterprises: A systematic review. Journal of Cybersecurity, 5(1), tyz004. https://doi.org/10.1093/cybsec/tyz004Xie, H., & Chen, Y. (2017). Reputation management in the digital age: The case of Yelp.com. Journal of HospitalityMore Articles From Business Management
.ico)
.ico)
.ico)
.ico)
