FINAL Abi Velocity Business Plan FINAL (1) (1)

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Transcript of FINAL Abi Velocity Business Plan FINAL (1) (1)

Velocity International Business Plan

Table of ContentsIntroductory Components1Executive Summary1Company Overview2Mission Statement2Management Function2Planning2Organization2Directing5Controlling5SWOT Analysis6External Environment7Current Economic Conditions7Industry Analysis9Real9Virtual10Competitive Analysis11Marketing Plan11Target Market and Market Segmentation11Marketing Mix12Product12Price13Placement14Promotion14Positioning15Discussion of Business Risks16Financial Planning17Break-Even Analysis17Income Statement17Balance Sheet18Cash Budget18Financial Write-up19Appendix19Bank Statement19Contract19Loan Amortization20Organization Chart20

Introductory ComponentsExecutive Summary Velocity International was established in 2011 as an extreme sporting goods retailer. Over the years, the company has expanded to include a wide variety of products, ranging from both physically operated to electric. The major categories of the sporting goods include bicycles, inline skates, snow boards, skis, skateboards, hover boards, electric bicycles, and electric go karts. Additionally, we will also be selling complementary accessories and Velocity Internationals very own branded clothing line. Velocity International will mainly be targeting teenagers and young adults. Additionally, we will focus our marketing and promotional items on individuals who are interested in living a health conscience lifestyle and are seeking an alternative to the conventional methods of adhering to such needs. Therefore, Velocity International has begun to sell electric, ecofriendly sporting goods products that satisfy both the need to take care of the environment and oneself. We have positioned ourselves in a place of growth, where we are fully expected to expand quickly and efficiently. We cater to almost every aspect of the sporting goods industry, through the inclusion of new products that are more targeted for teenagers. Sports, being an international activity, can straightforwardly be marketed in international countries, with the only disadvantage being the different time zones. Additionally, we plan on attending at least two trade shows this year, which is where a large amount of our sales will be derived from. VI is currently expected to make a profit by the end of this fiscal year, by selling more than 8,500 products, our breakeven point.VI feels that we are in an optimal position, in terms of our finances. As of October 2015, our companys cash account balance is $880,619, higher than the average firms. With such a large amount, we are in the process of paying off our total current liabilities, with the largest debt, $281,358, being our business loan. This situation is ideal since the FED is preparing to increase the prime interest rate, which will save VI a substantial amount of cash.Company Overview Velocity International, positioned at 67-01 110th St. Forest Hills, New York is an already established firm that has been in existence for over five years. Previously, the company Bikeworks, a bicycle retailing company, was established in September of 2008. VIs main purpose is to sell high quality sporting goods at affordable prices. Velocity International began its first year of operations in September 2011 with twenty-five employees, and has since grown to 31 employees. The company filed with VE Law and became recognized as a C Corporation on October 1, 2011.Mission StatementVelocity Internationals mission is to be dedicated to providing our customers with the highest quality products at an affordable price point. Our goal is to promote an active, outdoor, healthy, and ecofriendly lifestyle through the sale of extreme sports and electric products, as well as complementary accessories.

Management FunctionPlanningShort Term GoalsStrategiesDeadlines

Promote our new productsGetting our staff to advocate for our company and through affiliate marketing. Emailing our existing customers about the new products January2016

Continue to promote and improve our companys websiteWe will keep up to date with oure-commerce information, as well as adding in high quality content, which includes a functioning checkout button and high resolution product images.

December 2015

Long Term GoalsStrategiesDeadlines

Give back to the communityCreate awareness about breast cancer with our pink products and offer eco-friendly products June 2017

Build the companys name recognition within the nationPromote our company through social media: Instagram, Email, Newsletters and FacebookApril 2018

Create good relations with other VE firms Create 5 trade deals with international firms and 5 trade deals within the countryJanuary 2017

Organization

Our companys organizational chart is broken down into four tiers. The C.E.O., at the top of the hierarchy, is responsible for creating, planning, implementing, and integrating the strategic direction for the company. The Chief Executive Officer (C.E.O.) also oversees all the departments and instill responsibly and hard work. The second tier includes the Chief Operating Officer (C.O.O.) and the Chief Financial Officer (C.F.O.). The C.O.O. directs and manages the Web Design, Administration, Human Resources and Public Relations departments. Meanwhile, the C.F.O. directs and manages the Accounting, Sales & Marketing and Purchasing departments. The third tier is made up of the Vice Presidents of the Accounting, Purchasing, Administration, Sales & Marketing, Web Design, Public Relations and Human Resources. Lastly, the fourth tier is made up of employees for each department. Due to the flat structure of our companys organizational chart, its more efficient for us to communicate between departments.The Accounting department is responsible for establishing the companys cash budget, maintaining the accounting system, and completing financial records. Their duties range from structuring, formatting, and reviewing the companys monthly financial reports. Additionally, the department prepares and updates a break-even analysis. The Sales and Marketing department works on creating a master product list along with evaluating the VE competition. The team creates and refines the procedures for processing and carrying out sales of all of Velocity Internationals products on the master product list at the time. Additionally, the department produces a sales catalog, order forms, as well as an inventory report. The Human Resources department has a major role in the overall functionality of our company. The employees are accountable for creating a department workflow diagram, as well as being able to identify our current business resources, and establish the firms attendance policy and the associated penalties. Furthermore, every Friday, the staff members are required to collect all of the employees weekly task log and completion sheets. The Purchasing department creates a supply requisition form and establishes supply request procedures as well as develops and maintains purchasing records. As part of their job, they establish a virtual market place.The Administration department oversees coordinating a company newsletter project and developing procedures to manage firm purchasing. In addition, they create a system for storing and sharing files between departments as well as purchase or renew insurance policies based on the companys objectives. The Web Design department is in charge of the entire design aspect of the companys website. Specifically, their function is to create and constantly update the layout of the site, ensure that all parts of the website are operational, and to ensure that there are no errors throughout the purchasing process. The job of the Public Relations Coordinator is to prepare and supervise the production of publicity brochures, handouts, leaflets, and photographs. The Coordinator is accountable for advertising and managing the companys reputation with other VE Firms as well as throughout the school. Directing The employees are given tasks and deadlines, but they cannot commence their job until they are informed about what to do and how to do the job through direction and leadership. Therefore, the CEO holds weekly company meetings on Mondays to assign, discuss, and review tasks and objectives. Information and completed tasks are collected at the beginning of the meeting from the previous week and the progress is discussed with feedback from the team. The CFO and the COO assigns tasks to the VPs of their departments. The VPs then disperse and divide the specific tasks to the staff members who are most qualified to complete them in an orderly and timed fashion. Controlling The controlling management function of the business helps insure high quality of work output, which is an important key factor for long-term success. In order to keep track of each employee task sheets are disturbed in the being of the week and collected at the end. Employees are required to fill out the weekly log/task sheet for each day. Morning agendas are also disturbed every morning, informing the employees what is required by the C-Levels. In order to commemorate our hard working employees, two employees are selected each marking period and receive the honorary title of Employee of the marking period. All of this is done to ensure that our goals are met and that employees are motivated to stay on task.SWOT AnalysisStrengthsWeakness

Our highly qualified and Multi-Cultural employees support our operating policies to support our companys objectives. High education of employees Flat structure of our companys hierarchy allows for excellent communication. The Returning employees use their prior experience to improve the company. Inability of file sharing makes it difficult for work to be shared and reviewed. High payroll expense due to 31 employees Difficulty in collecting accounts receivables

Strategies to improve In order to impro