Business Plan Report: Amazon Fiberglass Which Is A Startup Business (Essay Sample)

Cover Page Business Plan 2018 Company/Business Name: ________________________ Business Owner: _____________________________ Business Plan Report 1 Business Plan Summary Amazon Fiberglass, Ltd. Amazon Fiberglass is a start-up manufacturing firm with patented products that will transform the construction industry. Amazon Fiberglass is the exclusive manufacturer in Australia. Amazon Fiberglass is run by Mr. Johnson who has straight knowledge of the industry and vast research experience. Mr. Johnson has been affiliated with the fiberglass industry and has watched numerous developments in the construction as well as marine manufacturing industries. What prompts him to venture into this new for-profit business is the advancement in building and construction which has prompted the need and demand for innovative products such as fiberglass in the construction industry. The firm will manufacture insulated roof sheets in many colors with finished stucco, and price competitive as well. The fiberglass products include external structural wall panels and roof tiles. The United States copyright supports these two products. 2 Business Opportunity 1 Customer Need and Target Market In many cities and developed countries, construction of homes and office buildings is leading the way by proving to be outstanding for the construction industry and economy at large. It is expected in the year 2018 that the universal demand for insulation to increase up to almost $25 billion (Maidenberg, 2014) Manufacturers of building materials perform well when the general construction does well. Fiberglass insulation market is one of the sectors that is continuing to experience increased demand. With this growth in demand and opportunity, it is crucial for fiberglass manufacturers to safeguard their ventures while remaining ahead and on top. In other words, downtime is not a choice. The product is targets markets such as potential investors, dealers, and distributors of fiberglass, and raw material distributors. According to analysis, real estate projects alone power the resident construction industry. Construction industries ride a wave of trade development that is adapting the commercial area skyline and rolling some powerful residential areas from deserted lots into huge new mixed second-hand projects. 2 Megatrends Fiberglass market is anticipated to witness a remarkable increase of USD 20.32 billion by the year 2023 with CGR of 9.2% between the years 2016 and 2023 (Fiberglass market research report, 2018). The escalating growth rate of fiberglass market is because of growing consumption in end-user industries such as electrical, aerospace, and automobile industry in different developed areas. Furthermore, increasing consumption of fiberglass insulation and composites has been recognized in Asia region because of increase in different end-user commercial practice such as construction and others. On the contrary, unsteady prices of raw materials is a big restraining determinant of the fiberglass market which can prevent the growth of Universal Fiberglass Market. Huge opportunities emerge due to escalating demand in construction especially in developing regions such as Thailand, Indonesia, and India as well as North America regions. Due to huge consumption in construction, electrical, and pharmaceutical industry, European region comes third in position in terms of Universal fiberglass market. Southern and Latin America are also witnessing demand for fiberglass due to different end-user industries such as construction, aerospace, electrical, and others (Fiberglass market research report, 2018). 3 Opportunity Testing Plan The law of demand explains the association between the quantity that is demanded and the price of the product. The law itself declares that the plea of a product increases with a decrease in its value and vice versa. Hence, there is an inverse association between the quantity of the product demanded and its price. However, low prices do not always guarantee a high demand for products. Product-market fitting is the only thing that matters especially for a start-up industry (Anderssen, 2007). For start-up businesses, huge funding may appear as an ego boost because one feels that the investors have high faith in you but, what is happening is that one is increasing their vulnerability to risks when insured. Anderssen (2007) suggests that until one achieves product/market fit, disbursing tends to be unsuitable at its best. The cheapest way one can attain product-market fit is by modifying their products to suit what the target market wants or moving the market to suit what the market wants. There are tools in these modern times that are helping entrepreneurs to test the market. For example, technology can enable an entrepreneur to build a prototype and display in front of potential customers. Another way is placing ads on social media like Facebook to test the market and sure it is a low-cost way of testing the products of Amazon Fiberglass before the production process. 3 Sales and Marketing Strategy 4 Fundamentals Amazon Fiberglass strategy is straightforward and ambitious. To start, its base would be in an old town area and apparently it is the only manufacturing industry in the area. Mr. Johnson will start to market his company to new customers. The initial goal is to establish Amazon Fiberglass in a market sector that has huge growth potential. The objective is taking a 3 percent market stake following the launch in the first year. Before pricing the products, the company knows the lowest and the highest prices it is going to charge the consumers since the company is carrying the price-benefit evaluation before starting the production cycle. The company sales strategy is as follows: * Contacting developers of commercial and residential properties. * Employing the company's sales delegates. * Contacting major architectural companies. * Participating at regional and national trade shows. * Creating contacts with commercial and residential contractors. Amazon Fiberglass advertises in radio, billboards, and newspapers all over the state of Australia. The company will achieve substantial awareness through word of mouth, and additional incentives for customers and prospective customers. Also, a set amount of sales incomes will extend towards Amazon Fiberglass advertisement movement. 5 Social Media and Free Publicity Social media marketing will help Amazon Fiberglass to engage an audience where they are now spending their time. The goals of the social media strategy for Amazon Fiberglass is as follows: * To brand the ‘Amazon Fiberglass’ name, and its cause. * To Increase customer base. * To keep the local community posted on events, happenings, and discounts. * To understand how the customers are using the social media and observe what the customers are saying about Amazon Fiberglass Amazon Fiberglass will use social media to obtain free publicity. Examples of these social media include Facebook and Twitter. Amazon fiberglass brandsitself through social networking as well. Examples include Google Plus and Linkedin.com. The status is updated always and all other social media toolssuch as Facebook, blog articles, and Twitter are linked. 6 Measurement and Information The success of Amazon Fiberglass would be measured to see how much income it is generating. Three main financial statements would be used are the cash flow and income statement as well as the balance sheet. The income statement would measure the profitability of the Amazon Fiberglass by indicating profits and losses at a certain period of time. The balance sheet would show the company's financial well-being. And lastly, the cash flow statement would be showing how liquid cash is at the company. Another crucial measure of success the company would be taking is ensuring the customers are satisfied with the products are buying from Amazon Fiberglass. Customer satisfaction would be measured through reviews, surveys, and asking some of the questions. After receiving the reviews, they would be posted on the company's website so that others would find out what people are saying about Amazon Fiberglass products. Furthermore, conducting the performance review to know how the employees are doing. Some employees may have extra time and they are unhappy. Maybe delegating some more roles would make them happier thereby no increase of workers on the payroll. An accounting system is the most appropriate way of getting business information. The kind of information Amazon Fiberglass would be getting from an account system is sales, profits, and costs/expenses information. The information would be useful to the marketers The company would invest in accounting software that is well designed with proper flexibility. However, this information is at the macro level, and normally it does not provide the marketers with necessary information to enable the company in reacting to real-time opportunities and crises. So for Amazon Fiberglass, a marketing information system that is electronic comparable in order to reduce paperwork. 4 Operational Strategy 7 Operational Structure President/Chief Executive Officer: Shall be the Administrative Officer. He shall be making every effort in promoting the health of the company and increasing utility to all members. The CEO would ensure the proper execution of operations in an orderly manner. Areas of Action * Calling and presiding over the chapter, Board, and Executive team assemblies. * Maintaining contact with members through monthly bulletins. * Maintaining cooperation with Chapter groups * Representing the alliance at external functions like other departments. Vice President Shall be performing the role of the president in case of vacancy or absence of the president. Shall be performing other duties such as Areas of Action * Preparing and presenting a schedule of events a...