Virtual Business Plan - "Home Mall"


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A virtual structured Business plan for a stimulated project called Home Mall, Can be perfectly used as Business plan Template for other projects

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Virtual Business Plan - "Home Mall"

  1. 1. Home Mall Launch business plan Home Mall® INC. EGYPT Fifth settlement, Down Town business Building A. first floor Customer Service: 19XXX Fax: +2 23085XXX Home Mall Team: Mazen Ahmed kyrillous George Dina ElMasry Amira Tayel Tamer Bahaa
  2. 2. Confidentiality Agreement The undersigned reader acknowledges that the information provided by Home Mall in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of Home Mall. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to Home Mall. Upon request, this document is to be immediately returned to Home Mall. Home Mall Signature ® Team Home Mall Name ® Team 30-Sept-2013 Date
  3. 3. Copyright © 2013 Home Mall® All Rights Reserved Home Mall®, Home Mall® and other names of Home Mall® products and/or services, and Home Mall® logos are trademarks or registered trademarks of Home Mall®, Incorporated. Other products and company names mentioned in this publication may be the trademarks of their respective owners. Table of Contents 1.0 Executive Summary 2.0 Company Summary 1. 2.1 Start-up Summary a. Table: Start-up 3.0 Services 4.0 Market Analysis Summary a. Table: Market Analysis 5.0 Strategy and Implementation Summary 1. 5.1 Sales Forecast a. Table: Sales Forecast 2. 5.2 Milestones a. Table: Milestones 6.0 Management Summary 7.0 Financial Plan 1. 7.1 Start-up Funding a. Table: Start-up Funding 2. 7.2 Projected Profit and Loss a. Table: Profit and Loss 8.0 Evaluation
  4. 4. 1.0 Executive Summary Home Mall is a click & mortar e-commerce company that operates virtually online serving B2B2C model as our business functions services & facilities of business providers to customers. The Home Mall website enables customers with quick and simple access to facilities and services through a straight forward, easyto-use interface and a clear intuitive navigational design, www.Home contains the following major sections: • • • • • • • • • • • Features of the Month. Top rated services. Most recommended services. Customer reviews. Search Engine. News/Events. Frequently Asked Questions. Contact Us. Glossary. Social Media presence. Home Mall Service guarantees Information. Mission ”At Home Mall, our mission is to provide a global online marketplace where practically anyone can find his desired service & facilities online existing in the modern cities of Egypt..” Vision “Home Mall will reach the middle east in the first 5 years plan” Plan A Market analysis is established later on leading to maintain a marketing & sales strategy with regards to services definition, competitive analysis, implementation strategy & forecast.
  5. 5. 2.0 Company Summary In the modern living culture in the modern cities in Egypt, not all facilities are available easily due to the low population there and also not all the facilities are known where they exist. Home Mall is an e-commerce idea that will simplify the process for searching of home needs by having all the needs in one website with direct agreements to Home Mall users with the suppliers. Home Mall focused in the basic daily needs of any home, it’s a mediator or intermediately or broker for all the services and facilities that are always been outsourced for home needs. As, Home Mall signed agreements with suppliers in each of the targeted segment areas having mutual benefit giving them more customers with a percentage of profit easing to the customer direct interaction with business suppliers in Egypt’s new cities. The Home Mall is the first virtual business in the sector of daily home needs for serving Egypt’s new cities that their citizens are much confused to find their home needs. In terms of grocery, pharmacy, butcher, bakery, fixing technicians, laundry & Super Market. Operation will be virtual as core business will be acting as a mediator between the customer and business so that no need for physical presence. Home Mall is a unique form of business, as it goes without saying that e-commerce is the new trend and the solely future of business. Its success forecast came from these attributes that we are First movers, uniqueness and specialized. Company Goals: • • To became the leading online destination for services 7 facilities. To become the leading supplier on-line and off-line.
  6. 6. • • • • Provide superior value & quality to our customers with a focus on outstanding service. Manage rapid growth through open communication (both internal & external). Deliver financial results that consistently exceed expectations. Position the company as a solution that covers a necessary need. 2.1 Start-up Summary Our Start-up Capital won’t be that much as there’s no psychical presence or inventory. Our initial cost will be about launching the website with an internet connection applied on a set of computers to be applicable for work by hired agents attached with mobile phones to enhance the business in a small rented office with a slice of internet advertising in the kick-off of the project to create awareness. Table: Start-up Requirements Start-up Expenses Expense 1: Website Expense 2: Agents Expense 3: Computers Expense 4: Small office Expense 5: Mobiles Expense 6: Internet Advertising Total Start-up Expenses $500 $100/agent $300 $150/rent $200 $500 $1750 Start-up Assets Cash Assets Other Current Assets Long-term Assets Total Assets $200 $750 $500 $1450 Total Requirements $1750
  7. 7. 3.0 Services Services are mainly similar to a concierge service but for the basic daily home needs in the new cities of Egypt as Zayed City, Fifth Settlement, New Cairo & October City. By which this cities’ residents can’t reach all their home needs due to lack of them or lack of knowledge about their existence. Home Mall is a mediator or intermediary that connects the customers with the business through the web site. Services that Home Mall has agreements with them: • • • • • • • Grocery Pharmaceutical Butchery Bakery Fixing technicians “plumber, carpenter, electrician, etc.” Laundry Super Market Services will take place in:
  8. 8. • • • • Zayed City Fifth Settlement New Cairo October City Future plans: • • • • • • More facilities and services offered requested by customers. Covering Egypt All new cities then reaching the Middle East. Launching a call center campus for customer services. Hiring customer experience team for better predication. Issuing Home Mall Visa card to ensure customers having our special rates. Recommendations and ratings for business suppliers by us and by customers. Business will role by sending customer requests from the website to a business owner supplier that signed an agreement with us to ensure quality for our service. In case of inquires there will our customer service agents who will act as the connection between the customer and the business owner. 4.0 Market Analysis Summary Our target Consumers are mostly A, B-class and some of c-class due to the convenient serving of House hold needs, consumers will be motivated to enjoy the leisure of serving their facilities online and introducing to the unknown business suppliers in their geographic areas. • Sex Both males and females, as it’s not gender related service.
  9. 9. • Age Youth early marriage from age 18- 40 years old are main target. • Adults who are technologically moderated • Education The highly educated people, because they will be able to cope with idea. • • • Some of the medium educated people those are aware with internet and much knowledgeable. Income Mainly people with high & medium income, reflecting on their living in the modern cities in Egypt. Lifestyle These people that have a high life standard of living, rapid tempo in their life seeking technological convenience rather than traditional life. Positioning "Gathering Basic daily home needs from services and facilities into a one website that will ease life of the family" Table: Market Analysis Potential Growth Customers juniors 20% Youth-Early marriage 60% Adults 20% Total 100% Year 1 Year 2 Year 3 Year 4 Year 5 CAGR 20% 60% 20% 100 Competitive Advantage 20% 60% 20% 100 20% 60% 20% 100 20% 60% 20% 100 20% 60% 20% 100 100.00% 100.00% 100.00% 100.00%
  10. 10. • • • • • • • • • • • • • • • First Mover to market. No Direct Competitors. Uniqueness e-commerce business. Specialized. Free of charge Services. Convenience. Flexible process of business. Superior value. Cost, Time & Effort Saving. 24 Hours Availability. Security of delivery of facilities & services served. Guaranteed quality. Non-restrictive. User friendly. Income avenues. SWOT Analysis Strength Business model have no direct competition Weakness Opportunities Rigid case for building trust & credibility in the beginning Reaching middle east Threats Culture adaption
  11. 11. Business model will handle an existing need. Success & acceptance of e-commerce as, Outsourcing service & facilities wont guarantee same quality all the time Online threats & hacking A Mobile Application will be more convenient in future e-commerce resistance Became a retailer having owned suppliers Entrance of competitors 5.0 Strategy and Implementation Summary Marketing • Social Media presence, Fan Pages: “Facebook, Twitter, Google+, LinkedIn” • Facebook Ads. • Masraway Portal. “most visited portal in Egypt” • Radio advertisement in Nile FM, Negoum FM. Sales • Percentage of profit from every supplier received customer request through Home Mall as we can say it Pay per Click approach. • Shops, business & internet Ads on our website will be a revenue generator.
  12. 12. • Suppliers may request priority rating or recommendation by paying more of percentage of the profit. Service development Services may be developed by increasing the number of agreements with business suppliers having mass reach of them from the highest quality to the lowest to cope with the public taste. • Grocery: Local shops in the assigned geographic areas and hyper markets. • Pharmacy: Local pharmacies, El-Ezaby, Seif Stores & Ali’s image. • Butcher: Local shops in the assigned geographic areas and hyper markets. • Bakery: Local shops, TBS, The Backery & Royal Bakery. • Fixing technicians “plumber, carpenter, electrician, etc.” Agreements with service centers agents in the assigned geographic areas.
  13. 13. • Laundry: Mass coverage to reach the suppliers in every single spot. • Super Market: Local ones, Hyper markets, Metro Markets, Khier Zman, Seoudy & Alpha. Marketing & Promotion strategy 1. Offline Approach: Home Mall will use several different forms of conventional media to brand itself to its viewers; • Print Advertising Advertising in trade publications as Waseet, Business magazine, News Papers & flyers in interactive Malls. • Direct mail Mailings to individuals who acquire new retail business licenses. • Viral Marketing Continuous promotion with "snowball" effects. • Broadcast Calls Quarterly calls to targeted retailers. • Logo Link Program Contract with print advertisers to include the logo and Tagline in their advertisements. • Retailer T-Shirt Program
  14. 14. Co-op program supplying retailers (and their staff) with t-shirts to wear in their stores with the logo and tagline. 2. Online Approach: Home Mall will use several different forms of electronic media to brand itself to its viewers; • Social Media Creating a buzz by a strong social media presence generating fan pages, blogs & groups. • Search Engine/Directory Submission Submission made to top search engines and directories on the Internet and engaging with Google Ad words. • Portal & Gateway Pages Create individual web pages for posting news to top search engines, directories, and industry specific sites. With active presence on popular portals as Yahoo Arabia and Masrawy. • Banner Advertisements Banner space on industry specific web sites for example in hyper, Carrefour & spinnes websites. Also, in Facebook ads. • Channels Develop strategic placement on other sites. Marketing Activities • Customer Acquisition program For breaking the ice with customers at our kick-off, giveaways will be sent having our Home Mall logo and contacts to customers while delivering the service or facility to enhance awareness. For acquiring more customers we may launch referral program that customer who refer a friend of him to visit and use Home Mall
  15. 15. will generate points that will lead to free requests or presents when exchanging it. For Loyalty building, we may launch loyalty program for frequent loyal customers to become upgraded to elite customers having elite delightful superior premium treatment with more advantages. A Home Mall card will be issued to customers to use it when dealing with one of signed business suppliers of Home Mall while physical purchasing to acquire Home Mall special rates. • Customer Retention program A retention program for to track customers that use our website before and didn’t return back for a while as by calling them, sending giveaways for reminding. Updates, promotions and newsletters will always be sent gradually on a daily basis to all customers to ensure retaining of customers having their attention all the time. From our customer database we will track their birthday from their applications to send them birthday giveaways or greetings online as for putting Home Mall always in a good state of customer’s mind. • Endorsement Strategy
  16. 16. As it’s known that most of celebrities, politicians and public figures lives in the modern cities of Egypt who are our geographic target segment. We may create a recommendation box whenever any celebrity use Home Mall service as a way of free endorsement advertisement motivating customers and fans by enhancing credibility of Home Mall quality of services. • Sponsorship Strategy Home Mall may adapt sponsorship of events after generating revenue for more massively advertisements and building brand awareness as Home Mall may sponsor Ramadan tournaments in Compounds of the modern cities and Ramadan Tents also exist there. • SMS & Emails Strategy Home Mall may purchase a list of customer database contacts of mobile numbers and emails to send them flyers & brochures for introducing Home Mall to a wide range of the targeted segment through SMS & Emails. Marketing Goals • • • • • • • • • • Reaching the 5 million users. Further defining the target market to mass market Building membership loyalty in early stage Increasing user-to-user referrals Public Relations recommendations Partnerships requests Creating massive awareness Increasing word of mouth rate Eliminating off line advertising gradually to shorten the cost. Interactive online presence 24/7
  17. 17. Sales strategy Home Mall generates many of its sales leads through quarterly broadcast interactive calls to Business Suppliers signed with the database. This call informs the company that their organization is listed on free of charge, verifies phone, fax, email and web address information, and prompts the responder to request additional information about promotional/advertising services. These leads are passed to a sales person who follows up with these business owners via telephone or email or visit with the expectation of making no less than 20 qualified contacts per week. Home Mall will focus on the domestic market with plans to move into the international arena as Middle East at a later date. Following the billing system, Home mall will receive its commission as suppliers may send it on Home Mall’s bank account or pay it by credit card on the website or by third party Collection Company to collect the commission by psychical human interaction. Home Mall customer service representative has completed training on all functions of and has initiated sales calls, trained on handling customer and supplier requests. Main focus of upselling to customer call for tracking his request. 5.1 Sales Forecast Home Mall Sales will be considered about 3 important pillars: • Commission from business suppliers received requests from customers through Home Mall.
  18. 18. • Ads in Home Mall website. • Priority of ranking to business suppliers. Table: Sales Forecast Sales Commission Ads Priority ranking Total Sales Year 1 $100,000 $50,000 $50,000 $200,000 Direct Cost of Sales Row 1 Row 2 Row 3 Subtotal Direct Cost of Sales Year 2 $150,000 $100,000 $100,000 $350,000 Year 3 $300,000 $150,000 $100,00 $550,000 Year 1 $30,000 $20,000 $10,000 $60,000 Year 2 $40,000 $20,000 $10,000 $70,000 Year 3 $50,000 $20,000 $10,000 $80,000 5.2 Milestones Our prioritized ranked milestones to be estimated calculated and evaluated: • • • • • • • Home Mall brand rating Web Site traffic ROI Sales Market Coverage IT expenditure Advertisement & Branding As, per management vision we must always know whether we are on track or we miss lead by assigning our milestones in specific due dates for easing the process of planning further on and distinguishing the effect of these aspects if the cost is worth it or there’s surplus or shortage gaining the efficient and effective approach. Table: Milestones Milestone Start Date End Date Budget Manager Department
  19. 19. Home Mall brand rating ROI Sales Market Coverage IT expenditure Advertisement & Branding Web Site traffic Totals 1/1/14 1/6/14 $20,000 ABC Marketing 1/1/14 1/1/14 1/1/14 1/1/14 1/1/15 1/6/14 1/1/15 1/1/15 $100,000 $100,000 $30,000 $20,000 ABC ABC ABC ABC Finance Sales Planning IT 1/1/14 1/6/14 $40,000 ABC Marketing 1/1/14 1/6/14 10,000 ABC $320,000 IT 6.0 Management Summary Home Mall management team is a balanced mix of strong conventional business experience and with young, cutting edge enthusiasm from different and mixed backgrounds, expertise, industries & specializations. This winning combination will prove to be successful in meeting Home Mall goals. The 5 management team is equally shareholders of Home mall giving the head of management to the most experienced member in the team due to his the most focused related in the internet industry. Tamer Bahaa GM Mazen Ahmed Marketing Manager • Amira Tayel Contracts and Deal Manager Dina El-Masry IT & Internet Manager Kyrillous George Project and Sales Manager Tamer Bahaa General Manager, handling the management issues and dividing functions and tasks among the team
  20. 20. • Mazen Ahmed Marketing Manager, due to his passion and experience in the marketing field in multinational organizations. • Amira Tayel Contracts and Deal Manager, related to her success in the regulatory and contractors in her pharmaceutical sector. • Dina El-Masry IT & Internet Manager, as being the technical engineer in the team with her experience in the IT & Telco sector, Will function also as search engine optimization. • kyrillous George Project and Sales Manager, with proven success in managing many projects active now in Egypt. 7.0 Financial Plan Our financial plan is based mainly on the revenue generated per year. The startup phase is the toughest among all since it will depend mainly on the true belief of the partners to join so it has the highest risk. 7.1 Start-up Funding The startup funding will consist of two main parts, the owners’ savings and bank loan of 300$ with an annual interest rate of 30$. This will be acquired through the bank’s loan for youth. This will cover the startup requirements.
  21. 21. Table: Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required 1750$ 1450$ 1750$ Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets 500$ 1750$ 950$ -300$ 1450$ Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Total Funding 300$ $0 $0 30$ 330$ 1750$ 7.2 Projected Profit and Loss There was no direct loss but we experienced a wide expansion in year 2 which decreased our margin. Table: Profit and Loss Sales Year 1 5367$ Year 2 8218$ Year 3 11090$
  22. 22. Direct Cost of Sales Other Costs of Sales Total Cost of Sales 2000$ $0 2000$ 3500$ $0 3500$ 5200$ $0 5200$ Gross Margin Gross Margin % 3367$ 63% 4718$ 57% 5890$ 53% 500$ 100$ 150$ 500$ 0$ 100$ $0 500$ 120$ 500$ 700$ 200$ 300$ $0 500$ 120$ 500$ 700$ 300$ 300$ $0 1350$ 2320$ 2420$ 2017$ 2398$ Expenses Internet connection Depreciation Rent Website fees Insurance Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales 3470$ $0 $30 $935 $0 $30 $1030 $0 $30 1320$ 1052 19.6% 1338 16.3% 2120 12% 8.0 Evaluation Evaluating for a project begin from scratch should be on a daily basis to know whether on track or not and attributes affecting success and ones affecting failures, what should we focus on more and what we should focus less, what’s interesting and what’s not, what’s most demanded and what’s less, therefore what may
  23. 23. evaluate by some modern aspects that may lead to static, dynamic & solid results generating prober output for decisions later on, As: • • • • • • • • • • • • • • • Google analytics Alexia Social media response Sales volume Transaction volume Internet traffic Stickiness rate Word of mouth Number of visitors Suppliers & customers feed back Volume of signed suppliers Suggestions tab Cash flow amount Turnover rate in the organization Calls, inquires, requests rate.