Business Plan for E-business Essay Example for Free

Business devise for E- byplay EssayABC Company is an key products company put forwarding Australian autochthonic graphicsists materials and products, such as painting, boomerang and other handicrafts. Based on the internet, ABC Company besides plys timely information about Australian native finale like their narrative or daily news. It is the responsibility of ABC Company to support the development of original peoples culture and advance their keep quality in the same time. The MarketABC is at the forefront in an exciting and growing market. We focus on the market of Australia and extend to the tourists and Australian indigenous culture lovers. Most aboriginal products parentages do not supply the sufficient and related knowledge of aboriginal culture. And our special supporting stagey assists communities line $1 from our sales every $100 for the sake of attracting much aboriginal artists enter the business. It is a different point from other veritable there is no such e-business company like XX operated to mean solar day. The OrganizationABC is owned and operated by our group members. Since our company is operated online, our management team is the group of our four founders. It is founded on the idea that maintaining satisfied customers is essential to the bottom line. With this in mind, our team entrust be working hard to ensure that wholly of their customers expectations are exceeded in completely transactions. To maintain a presence within the art and craft community and close relationships tocustomers and also our suppliers aboriginal people, we volition focus more on the pro knowledge of Australian indigenous culture and encourage local communities to join us.FinancialsThe sales growth impart be conservative in the first stratum as when our focus is on the publicizing and make our products well known by emf customers. It is estimated that the sales increase in a 33% variety from second course of study of business operat ion. The merchandise costs testament remain the 10% of total sales. And we may consider company expansion if projected sales met or exceeded our tar pop out. 1. Company SummaryABC Company is founded in kinfolk of this class in UNSW. The company will offer a variety of products and work of aboriginal culture. In order to save sufficient information and resources of aboriginal culture, we will cooperate with virtuallywhat bases and communities. For the aspect of products, we will offer aboriginal art such as artefacts and painting which are brought from eBay, institutions such as Tandanya in Adelaide and personnel (Tandanya 2013). Moreover, we will erect aboriginal culture and its history on the website.The resources of those will be picked up from variety of institutions, communities and governments website. For the first three years, we will focus on the business on the website. Therefore, customers and visitors can experience aboriginal culture on our website 24 hours, s regular(a) days a week. When our business is stable, we will expand our services and establish a sensual store in Alice Spring. The missionary work of our company is to become the best platform which spreads aboriginal information and provides products.1.1. Market NicheIn the recent market in Australian, indigenous liberal arts occupy a small part. In the recent years, the sale of aboriginal art is $8m every year, which is equivalent to sale 11 years ago (Rothwell 2013). i reason is that people has few opportunities to engage the aboriginal culture. Moreover, few places have aboriginal arts. Most of arts are sold in the regional institutions and heathenish centre, and are offered on few numbers of website. The mission of our company is to be the best platform to provide aboriginal culture and arts.Therefore, we will spread indigenous culture firstly through our website so that more people are acquainted(predicate) with their culture. Moreover, we will offer a variety of product s on the website such as gifts and painting. The range of price is from about $50 to thousands of dollars. After getting information of the product, customers could get the arts what they are interested in. There are two characteristics of our products. get-goly, we are not only sell aboriginal arts, but share the information and background of each art. Therefore, customers could understand the meaning of it. Secondly, as we stock artwork from institution and artists, the price could be demoralize than other stores. Therefore, our products have high quality with a lower price. 1.2. Social responsibility of our businessThere are two main social responsibility of our business spreading the culture and facilitating the economy. As we share aboriginal culture on our website, more people will familiar with its culture. Therefore, our first social responsibility is to spread aboriginal culture. For example, we will share information about meaning of painting, dancing and their music i nstead of merely merchandising products. Culture is a part of fortune for a country. Therefore, it is necessary to prevent it from disappearing. Additionally, we will help some communities and extract $1 from our sales every $100. As we stock some artefacts from communities, it will increase the sales of them. Moreover, we will donate for the community to help it spread aboriginal culture. As a result, it probable creates more job opportunities for aboriginal as more people are interested in its culture.2. Our service and productOur company will provide a serial publication of services and products on the website. For the aspect of service, we will divide into three stages. In the first stage, we will share information about aboriginal culture and artwork. The pen of artists and their painting also is offered. In this stage, we will focus on spreading the culture of aboriginal. In the next stage, when our business is stable, we will expand our service to day tour that visits somat ogenic museum and institution. For example, in South Australia, we will have a day tour to Tandanya to watch a show and have a shop class in Brambuk in Victoria. In our final stage of service, we will offer an opportunity to experience ancient Aboriginal rock art paintings, music, dance and storytelling in Northern Territory ( cultural Tour, 2013).In order to achieve it, we need find more participators with us to organize the planning of travel. For the aspect of our product, we will focus on selling them on our website in the first three years. In the meantime, we will establish a small physical store in Alice Spring. We will offer some(prenominal) products such as artefacts, artwork, crafts, glass and didgeridoos. Every product will attach profile of artist. As we purchase some artefacts and paintings from artists, there will be some unique artworks on our website. Therefore, it is a good choice for gifts to your friends, and good collections for collectors. Moreover, we also h ave some books about aboriginal culture that will be sold on our website. 3. Market epitomeIn recent years, the consumptions of aboriginal culture products (arts, paintings, craft and so on) are decreasing in both Australia internal and international markets. However, it does not mean that the value of have dropped a bit. ABC Company aims to expand the market size of the indigenous products in Australia markets and international markets by selling indigenous touristry products in the meantime, increasing the value of indigenous tourism products by spreading the Australia aboriginal culture information online. The Company will market to four primary customers1. Tourists.2. recreational artists and crafters, including collectors and hobbyists. 3. Professional artists.4. Businesses, such as architects, graphic designers, or direct mail advertisers. In the meantime, customers who are interested in aboriginal culture are also our potential customers. 3.1. Target market segment strateg y1. Tourists. In general, tourists normally visit the physical stores near the attractions. However, tourists purchase amounts are limited to size, material, and there are strict regulations of overseas travelling. Therefore, it is necessary to have partnership between travel agencies and light companies, by sending advertisement via email to the tourists. Then tourists can order indigenous tourism products from overseas or even order the products while they are in Australia before their returns.2. Amateur artists and crafters, including collectors and hobbyists. In general, most part of this segment will be targeted in low and mid-price level of our products compare with the profession artists. However, we will also consider some customers from this segment are eager to purchase the high-price level products. 3. Professional artists. Considering professional artists not only need to purchase the products, but also need to get regular customer service. Our business will try to set u p connections between professional artists and indigenous tourism products services. For the business, such as architects, graphic designers, interior designers, or direct mail advertisers, we will provide large amount order discount for the business oriented purchases or group-buying. 3.2. Service business epitomeOur company is an online business store sells indigenous tourism products from Australia to worldwide. Currently customers can buy indigenous products from the stores which are located around the famous attraction sights. However, due to the strict regulations of overseas travelling, some indigenous tourism products are restricted by the materials, amount, and size. Therefore, some customers prefer to order indigenous tourism products online. Our products include artworks, Didgeridoos, paintings, dolls, books, clothes, and some special order products, etc. 3.2.1. CompetitionsBesides the traditional attraction sights stores, there are two main competitors in Australia, A lperstein Designs and Spirit Gallery. Alperstein Designs entered the marketplace in 1996 and contribute online in 2013 (Alperstein Designs, 2013), it is Australia owned business. Alperstein Designs manufactures and designs products for gifts and indigenous tourism industries. Alperstein Designs has its own originative team, and works with Australia artists and designers in order to produce unique products. The products are manufactured in Australia and Asia.Alperstein Designs provides sell service nationally and internationally, it also has private label service for the customers who have exclusive desires. Spirit Gallery is located in The Rocks Centre. It was established in 2002 as a small Aboriginal art crafts store in the heart of historic Rocks area of Sydney Australia (Spirit Gallery 2013). The products include aboriginal arts, carvings, boomerangs ceramics, glassware basket weaving, utter paintings, and didgeridoos. Spirit Gallery also presents exhibitions for local abori ginal artists.4. Business Strategy Summary4.1. Competitive edgeInstead of merely selling indigenous tourism products, ABC Company aims to spread Australia aboriginal culture and history. This point is different our business from many of our competitors. ABC Companys target markets are not only large consumers, but also have different price levels from low to high, in order to fulfil all kinds of the customers requirements. 4.2. Marketing strategyOur merchandising strategy will focus on customer loyalty, partnership, and online promotion. ABC Company will make partnership between aboriginal institutions and communities, travel agencies and flight companies. For the institutions and communities, we could provide teaching instruments for educational needs in order to achieve the promotional goals and special discounts for students and teachers via email. In the meantime, we can get potential customers and aboriginal culture and history information from them.By working partnership with tourism agents, our business can attract customers by sending emails. Moreover, we could also provide discount deals to the customers who used partner travel agencies and flight companies. Our online promotion will rely on social networks such as, Facebook page, Twitter page, and Aboriginal culture and history videos on YouTube. Our company also have the search engine support from Google. All our promotion plans are based on the Internet, since we are an online store. 4.3. Sales strategyThe purpose of our company is to provide the friendliest online shopping experiences for our customers. First, we design and refine our website to make sure it is user friendly. Second, provide secure online pass onment by using Paypal. Third, provide fast and accurate preservation by working with TNT,UPS, and FedEx. Fourth, we provide the best return/exchange policy to build trust with our customers and maintain retention and loyalty. Most importantly, we will also help some aboriginal communities and extract $1 from our sales every $100. 4.3.1. Sales forecastThe following table and chart highlight forecasted sales.5. SWOT and Competitor Analysis5.1. SWOT AnalysisStrengthOur company provides not only a variety of aboriginal products but also offers the services of aboriginal culture. Besides, the social responsibilities which improve the traditional culture play a key role in the objective of our company. Comparing with other aboriginal products suppliers, we do not rely on the big production of manufactory chain. Instead, we stock artwork from our local institution and artists. In the meantime, the price could be lower than other similar stores. All in all, the most strength in our company is the unique and special quality with a lower price. WeaknessThe weakness of our company is the volume production in the short term. Since our suppliers are the aboriginal people from the local community and institution. It is difficult to replenish our stock as we required. Moreover, th e professional knowledge of aboriginal culture and colloquy to the people is another challenge for us. OpportunityThe aboriginal art has become more and more significant in Australias tourist trade. People from all over the world begin to focus on the traditional culture when they travel to Australia. Although there are many stores especially in tourist attractions, the wish of aboriginal culture information has confused the customers and they cannot understand the reason they buy this work of art. It is an opportunity for us to bring the aboriginal culture to the Internet from physical world. ThreatThere are amounts of aboriginal culture shops today and the aboriginal show that will attract more customers and tourists. However, our business cannot show the real make to our potential customers. There are two main competitors for our company Alperstein Designs and Spirit Gallery. 5.2. Competitor AnalysisOur Company vs. Alperstein DesignsFor Alperstein Design, there are several adv antages compared with our company. First, it has its own creative team therefore, it could have its unique products. Moreover, it provides private label service for customers who wants exclusive products. Therefore, Alperstein pay more attention on different kinds of high quality products. For our company, even though we do not have creative team, we provide a variety of services and products which are collected from different institutions and personnel. Overall, the price of our products will lower than Alperstein and we provide information of aboriginal culture as well. Our Company vs. Spirit GalleryFor Spirit Gallery, it is a brick-click company which means both physical and online business are operating. Moreover, it will provide detailed information about Didgeridoo. Spirit Gallery also presents exhibitions for local aboriginal artists. Though we do not have a gallery for business, we provide particular aboriginal information not only focusing on Didgeridoo, but different kinds of artists and culture. Therefore, compared with Spirit Gallery, our company pay more attention on spreading information on the website. As a result, our business is more convenient for customers searching information and products.6. Financial Plan1. Sales growth will be conservative in first 12 month as it takes time for us to advertise and make our products well known by potential customers. It is estimated that the sales increase in a 33% phase from second year of business operation. 2. Marketing costs will remain the 10% of total sales.3. We may consider company expansion if projected sales met or exceeded our target. 4. There would be a physical store in Alice Spring after three years in order to attract more tourists and present our arts work in more gentle ways.6.1. Important Assumptions1. All the assumption is based on the fact that the investment of this business is from founders savings. 2. Assume the overall economy of the world especially tourism marketing is stable so that economic situation would not affect business operation dramatically.6.2. Projected Profit and LossSeveral important assumptions are make to calculate the projected profit and loss 1. Sales are estimated in a conservative basis, while expenses are estimated above average to maximum values. 2. First years sale will be relatively low as it will take time to be well known by potential customers in order to reach the optimal sales target.With the consideration of first year operation, the sale of business is conservatively assumed at $102,000 in year 1 following by $128,000 and $170,240 in second and third year with gross moulding ratio at 59.90%, 60.80% and 57.98% respectively. The net profit for each year stays at $20,596.36, $26,788.61 and $37,678.14 while the net profit to sales ratios are 20.19%, 20.93% and 22.13% accordingly. The further detail information can be referred to Appendix 1-1. 6.3. Projected cash FlowIn terms of the cash flow statement, the sales are main source s of cash inflow, and it increases in the same pace with business expansion. It is based on the assumption that there is no issue on collecting cash from sales. On the other hand, most cash spending is due to paying to aboriginal artists, sponsor contribution to aboriginal communities and utility bills. As showing on Appendix 1-2, the net cash inflows for first three years are at $17,351, $14,222 and $11,426 respectively.6.4. Projected Balance SheetReferring to Appendix 1-3, the net worth is steadily growing in first three years. Though there will be a physical store in Alice Spring to present our products and attract new customers, our business is primarily focusing on online buyers. Therefore, most assets are current ones. Furthermore, profits generated from business operation are determined to be retained for future business risk safeguard and opportunities capture.6.5. Break-even Point AnalysisFor the purpose of break-even analysis, several factors are assumed as the fixed costs . It includes marketing costs ($5,000), Depreciation ($2,000), utilities ($2,000), Insurance ($400) and other costs ($120) with a total amount of $9,520. Gross margin of first year at 59.90% is extracted as the benchmark to calculate break-even point. As a result, our business needs to make $15,894 sales to be break-even.7. Recommendation and coatingThere are many places need to be improved and modified in the future. Firstly, about 60% of operating cost is the cost of rent therefore, it will save much money if we can cut this cost. One of the effective and efficient ways is to get a closer supply chain relationship. The optimal situation is called just in time that we can acquire the product when we need it as soon as possible.We do not need a facility and staffs to stock and manage our product consequently. Furthermore, it is necessary to corporate with various partners such as culture institution, travel agent, museum and artists. It is easy to manage and corporate with our part ners in the first three years. However, we need more partners when our business is stable such as travel agent. Therefore, the more partners we have, the more benefits we get.Additionally, a user friendly port wine will encourage customers staying on our website. In order to achieve this, it is imperative to hire website designer or use tools such as WordPress (WordPress 2013). In conclusion, the mission of our company is to be the best platform spreading aboriginal information and providing products. We will offer a variety of services and products both on the website and physical stores for different customer segmentations. As a result, it will facilitate the economy of aboriginal and social stability.8. Reference ListAlperstein Designs 2013, Alperstein Designs, viewed on 30th September 2013, http//alpersteindesigns.com.au/. Cultural Tours 2013, Territory Discoveries, viewed on 1st October 2013, http//www.territorydiscoveries.com. Rothwell, N, 2013, Plunging sales crisis for indi genous art, The Australian, viewed on 29 September 2013, http//www.theaustralian.com.au/. Spirit Gallery 2013, Spirit Gallery, viewed on 30th September 2013, http//www.spiritgallery.com.au/. Tandanya, 2013, National aboriginal cultural institute inc., viewed on 29 Sep 2013, http//www.tandanya.com.au/. WordPress 2013, Themes directory, viewed on 1st October 2013, http//wordpress.org/themes/.AppendixAppendix 1-1Profit and Loss