Business plan is a summary of what project or business intends to carry out. It outlines both short-term and long-term goals of the business. Business plan is important because of many reasons. One of the reasons is that it assists in focusing the ideas of the business. Additionally, it serves as a feasibility study of the business and presents the probability of success and growth of the business. Furthermore, business plans aid a business owner and any other interested parties to observe the business objectively. Moreover, business plans help market a business, thus, enabling the management of the business to obtain financing it requires. This paper outlines a business plan for the Toolscorp Corporation, and the preliminary market analysis of the business.
Executive Summary of Toolscorp Corporation
Toolscorp Corporation is located in Tennessee. It started its operations in the year 2010. It is the Corporation concerned with the production of farm equipments. The Corporation has several objectives including ensuring that the products delivered are of high quality. Additionally, it aims at offering strong administration controls. Predictability and feedback are what defines strong administration control. Such management gives accurate forecasts as to the period the project is estimated to last, the amount of resources the project would need, and the likely total cost of the project. The last objective is to maximize productivity.
The product that the company currently has in plan is battery lawn equipment. The equipment will be used to cut grass and trim it to an appropriate level. The equipment is handheld and cordless. It will be battery powered. It is estimated that the product will take up to six months to be ready for introduction into the market. The battery lawn equipment is unique and differs from other lawn mowing equipments in that it is quieter, more powered and light in weight.
The market, in which the product will be competing in, is India. The company will be targeting homeowners and professional landscape contractors. However, the company considers homeowners to be the largest market it will focus on. The product will be good mostly for those places with noise restrictions. The niche the company will be capitalizing on is the fact that most lawn mower producers are producing gas lawn mowers, which are very noisy. The company plans to capture to about 60% of the Indian market. The growing market will be satisfied through setting up many branches in the UK and India, which is the target market for the product. The products will be priced reasonably so as to attract consumers and to be in a position of standing out from other lawn mower producers.
The marketing strategy the company plans to implement in promoting the product will be advertising. The company will use various media, including television, print, radio, and websites to market the product. Additionally, the company will target trade shows to market the product. Additionally, the company plans to hire sales persons who will market the products on a one-to-one basis. The strategies that Toolscorp Corporation will execute in the distribution of the battery lawn equipment will be diverse. One of the strategies will be through sales representatives in India. Additionally, the company plans to contract with distributors and resellers in India. It will set up branches in India to facilitate the eased access to the products by consumers.
The corporation will face competition from other lawn mower producers in the UK and India. One of the competitors will be Mowers UK. This business has existed in the market for decades and is now fully established. It is located in Basingstoke, Hampshire. The corporation supplies some of the leading brands in the market such as Honda, Mountfield, and Hayter. However, the corporation plans to counter the competition by producing high-quality products at cheap prices. Additionally, it plans to partner with some of the famous distributors in the market, so as to help market its produce. The operations of the corporation differ from those of competitors since Toolscorp Corporation plans to produce battery powered lawn equipment.
Toolscorp Corporation will assign a group of individuals specialized in information gathering. This group will also be responsible for the analysis of the collected information on the product. The corporation is considering hiring more staff that is highly qualified with degrees in manufacturing and equipment engineering. The paraphernalia that the corporation plans to utilize in developing a product is already available in the company. Hence, the cost of equipment acquisition will be low. However, Toolscorp Corporation will be forced to source some of the equipment outside the corporation.
Toolscorp Corporation has a manager that is in charge of all operations in the company. However, with the plans to produce a new product, the company plans on hiring a manager with experience in plant operations. The manager will be required to have a master’s degree in manufacturing engineering, product assembling or mechanical engineering. The manager is expected to have worked in a business environment with an experience of about six years. He or she should be of the age between 26 and 35 years. The manager will be charged with overseeing the operations of the product development. He or she will be responsible for giving advice on any areas that will require improvements of any kind. Additionally, the management will be required to report to the overall management of the company on the progress of the project and the time that the task is probable to come to the accomplishment.
The personnel that the company has are all courteous and act promptly. Currently, the corporation has 20 employees. The employees work full time. The personnel are all qualified and have degrees in business, accounting, commerce, mechanical and product assembling engineering. All the necessary personnel for the product development are available. However, the corporation has decided that in the event that more manpower will be required, the jobs will be advertised through the website and print. The remuneration to the employees will be monthly salaries. The employees are also expected to benefit from the medical and life insurance that the corporation offers to its employees.
Preliminary Market Analysis
A preliminary study on the market was done. It involved a study on competition, regulations, political and economic state of India, and the market customer needs. Additionally, a preliminary market analysis also looked into the suitability of the target market of the product. Moreover, competition and prices were also the subjects of the study. Under competition, the study showed that Toolscorp Corporation is probable to experience stiff competition from the already established lawn mower producing companies both in the UK and India. Some of the companies include Mowers UK, Jagatsukh Industries, and Honda Siel Power Product Ltd.
The preliminary market analysis also showed that India is politically and economically stable. Hence, the environment will be good to carry out the business of selling lawn mowers. Additionally, the economic state of India suggested that the people have income to buy the mowers. Hence, the corporation is likely to make huge sales. The preliminary study also showed that the India’s regulations are very flexible; thus, Toolscorp will be able to obtain a license to legalize its operations in India. Additionally, the market analysis also showed that the corporation is likely to benefit from Indian market because of low prices of the product.