Dsicuss about the Business Finance Plan Of Mazin And Abdullah.
The small business finance plan of Mazin and Abdullah has been evaluated and it has been recognized that the few improvements are required to be done to prepare a better business and financial plan.
- The business idea is about the “scientific library for children” which is quite an innovative idea as not such business currently exists in the market and the implementation of this business plan would offer great market to the business.
- The business plan and the business description have briefly explained about the business functions and the activities. It clearly briefs that what is the main business and how the business would proceed.
- The business plan clearly states that the business would be very successful in the market due to the process which has been followed while preparing the business plan. Entire points have been focused while preparing the report so that a better decision could be made.
- The most exciting thing about the executive thing is that it includes all the analysis part and the study of the report in brief. It is quite interesting for the read as the entire idea about the business plan could be got from the executive summary and the business description only.
- On the basis of the executive summary, it could easily be recognized that the business would run in the market in a well manner and the investors would also get huge return from the business.
- The business plan has prepared after evaluating all the related points and has focused on all the factors, so it could be said that this is a well researched plan. the planner have given their time to study all the related factors such as economical changes, technological changes, trends in the market etc and on the basis of that, they have prepared the report.
- However, the business plan has failed to describe about the main strength of the business swiftly. The executive summary and the business description only briefs about the analysis and the result of the report.
- It has not been mentioned that what would be the business and how would it develop the customer base in the market but it can’t be state as the main strength of the business.
Description of business:
- The owners of the business are enough qualified and have enough experiences about their field of work. Owners of the business are Mazin and Abdullah. Zahra is the president and founder of the business which holds a diploma degree of higher diploma in accounting.
- On the other hand, Abdullah has 4 year of experiences and a degree of higher diploma and would work as director of sales. It explains that both of them have leadership tactics which would help them to run the business efficiently and it would also make them easier to set the better market base in market efficiently and effectively.
- The vision and the mission of the business plan explain about the loyalty, customer devotion, high quality product, children suitability, excellence in the process, meet the demand etc. It evaluates that the mission and vision statement of the business plan is quite swift.
- But the words of the mission and vision statement are not professional and explain that the Mazin and Buthania should use the professional language while describing about the mission and vision statement of the business.
- Owner and the manager position of the business are handled by the Mazin and Abdullah only. As the business is quite small and entrepreneur think that they could manage it by themselves so no managers have been hired and the owners are handling the process and the work of managers.
- Yes, the owner-manager of the company are entrepreneurial and they are enough motivated and innovative to manage and run the business efficiently.
- The long term objectives of the business are to manage the loyalty in the market and enhance the market base and the revenue of the business.
- The long term objectives of the business briefs about the loyalty, customer devotion, excellence in the process, meet the demand, high quality product, children suitability etc (Brinckmann and Kim, 2015).
On the basis of the above study, it has been recognized that the business plan of the company is efficient. However, the owners have not used the professional language as well as main points have not been added by them in the executive summary and the introduction part. So, it is suggested to the owners of the company to make the changes into the language, mission and vision statement and must add the strength of the business report. The executive summary should also include about the financial projection of the company such as how much profit would be achieved by the company in the initial years and how much cost would occur to implement the business plan. An executive summary should be in such a manner that the entire idea about the report could be get from that reading only.
- PEST analysis has been studied further from the business plan and it has been evaluated that the analysis over the political, economical, social and technological factors has been done by the business owners efficiently.
- Business owners have used the proper logic and the rationale to evaluate the political, economical, social and technological factors. All the factors have been written after conducting a good research.
- All the points are explaining about the current trend in the industry and thus it is quite better to make decision about the performance of the company.
- The market research has been done by the entrepreneurs on the basis of secondary data and it has been found that a swift analysis has been done. They have measured all the factors in the market and have briefed about the current trends of the industry in well manner.
- However, they have failed to mention about the percent rate of interest, exchange rate etc. In the entire PEST analysis, no statistical data has been given. It only explains and measures the non financial data and explains that how it would impact on the business of the company (Higgins, 2012).
- On the basis of the PEST analysis on the study, it has been recognized that the business would run significantly in the Oman market as there are no competitors in the market as well as the idea of the business is quite competitive.
- The political, economical, social and technological factors of the industry describe that the business must be implemented by the owners of the company immediately.
- Further, the study on the PEST analysis of the industry explains that the proper language has not been used by the owners and the opportunity gap explains there is no huge opportunity gap among the business and the industry situations.
- It has been evaluated that the business idea of the owners are quite innovative and thus no much effect has been affected the business of the company. On the basis of the PEST analysis, it has been found that the current position of the industry is quite better and if the owners would implement the business plan now, than the business plan would offer great return to the company.
- It has also been recognized on the basis of PEST analysis that the owners were just required to add some statistical data in the report. Rest, the analysis is way better.
On the basis of the PEST analysis of business plan, it has been recognized that the PEST of the company is efficient. However, the owners have not used the professional language as well as statistical points have not been added by them in the PEST analysis. So, it is suggested to the owners of the company to make the changes into the language, and must add the statistical data in the analysis part. The analysis part must also be clear and must be written in such a way that anybody could understand it easily. It is quite tough to understand and evaluate the current analysis report (Brown, 2012). However, the analysis of the company is quite better and it would lead to the owners of the company to evaluate that how would their company would be perform in the industry and how tough it would be for them to run the activities of the business and reach over the breakeven point.
Evaluation of competitive environment:
Competitive environment of the business plan has been studied and it has been recognized that the business owners have also undertaken a study on the competitors of the company.
- The main competitors of the business are hkayat library and open children library. The business plan only explains about the direct competitors of the company. No substitute competition has been described in the business plan.
- It briefs that the Owner of the business are quite confident that there would be no substitution effect on their business.
- In the business plan, it has been stated that the main competitors of the company are hkayat library and open children library.
- The business plan states that the main strength behind the success of the competitors in the market is their numerous outlets.
- The mainly focus on the incorporate superb, enormous size business sector and low valuing procedure and that is why they have achieved a great market share in the market.
- Their strength and weakness have also been identified so that it becomes easy to overcome the threat of the competitors.
- On the basis of the study, it has been found that the main weakness of both the competitors is huge employee turnover and the strength is huge market share.
- The quality and the technology of both the competitors are also impressive and explain that the performance of the company is quite better.
- On the basis of the competitive analysis, the business has recognized that the business must be implemented in such a way that business could be more competitive.
- The business plan explains that the business must concentrate of the staffing and training process so that the employee turnover of the business could be reduced and the company could perform well in the market.
On the basis of the competitor analysis of business plan, it has been recognized that the study on the competitors of the company is efficient. However, the owners have not used the perfect study to evaluate the competitors market. So, it is suggested to the owners of the company to make the changes into the competitors’ analysis part. The analysis part must also be clear and must be written in such a way that anybody could understand it easily. It is quite tough to understand and evaluate the current analysis report.
Evaluation of customer profile:
The customer profile of the business plan includes the information about the customers, their characteristics, target market etc.
- On the basis of the customer’s analysis of the company, it has been evaluated that the target market of the business has been identified perfectly by the owners of the business.
- The main target of the business would be schools where they will promote the business (Finch, 2016). However, the target market could have been larger.
- The customers need have not been described well in the business report. It only explains that how the business would take care of the customers. But it has not been mentioned anywhere that what would be the exact customer needs of the business and how the business would cater those services.
- The business plan clearly explains that the segmentation of the customers would be according to the age group of the company. Further, it has been found on the basis of the business plan that the business has not planned for any customer retention strategy.
On the basis of the customer analysis of business plan, it has been recognized that the customers’ analysis of the company is efficient. However, the owners have not used the proper strategy and the proper needs of the customers. So, it is suggested to the owners of the company to make the changes into the customer needs segment and the strategies must be prepared for the retention of the customers (Gibson, 2011). The analysis part must also be clear and must be written in such a way that anybody could understand it easily. It is quite tough to understand and evaluate the current analysis report. However, the owners have made many efforts to accomplish the consumer analysis.
Evaluation of marketing mix:
Marketing mix study of the business report explains about the clear details of the price, product, place and promotion of the business. Following is the evaluation and the suggestions for the business plan:
- Product evaluation explains that the business plan clearly states about the products of the business.
- The main products of the company are quite innovative and it would attract the customers of the company to come to the outlet and purchase the products of the company and avail the services as well.
- The business plan has mentioned about all the products briefly that the idea about the product could be taken easily.
- The business plan states that the business would use various strategies and the plans to enhance the customer’s base of the company such as through few contests, offering the toys and the books to the children etc.
- However, the products of the company have not been compared with the product of the competitors.
The company has differentiated the books into 2 segments, one segment is for the children and other one is for the adults. It explains that the difference among the products is sustainable.
On the basis of the product evaluation of business plan, it has been suggested that the product description must be given in such a state that the benchmark must be set by the company and the competitor’s product must also be evaluated before depicting about the products of the business.
- The information about the place of the outlet is clearly stated ad the area is on the main road near many distinguished shops so it would be easier for the people to find the store.
- The benefits of the place have been clearly stated in the business plan. The information about the cost effectively has not been given in the business plan.
- However, the place of the business is accessible and it is visible as well. The company has not compared its place with the competitors and the choices about the place have also not been mentioned by the owners in the business plan.
Owners are required to evaluate the study on “Place” again as they have not included various information about the cost effectively, competitive advantage, benchmark of the place etc. these information would attract the investors more to invest into the company.
- Price of the product has been mentioned properly. It is better price as it has been set after analyzing the customer’s price. Low cost and differentiation strategy has been followed for the business.
- This price strategy is appropriate according to the pricing model and it would be effective for the business according to the industry.
- The company has not compared the prices of the business with the competitors.
- The customer’s price has been discussed briefly in the report and lastly, the little information about the price competition has also been given in the report.
Owners are required to evaluate the study on “Price” again as they have not included various information about the competitive advantage, pricing model etc. these information would make it easier for the customers to manage the performance of the company (Brooks, 2015).
- Promotion strategy defines about the advertising and sales promotion.
- It is quite specific and clear in the business plan.
- The strategies does not emphasise on something which makes the business unique.
- The strategies would help the business to reach to its customers easily.
Business planners are just required to manage the study on “Promotion” again as they have not included various information about the promotion activities.
Evaluation of the management team:
- Owners of the company would manage the business only. They have not hired anybody for the management.
- Both the owners have enough experience, skills and qualification about the business.
- There is no team gap and skill gap among the team and the firm. There is no proper organizational structure as the business would be handled by 2 of them only.
- A proper human resource plan has been prepare to recruit, manage and train the employees.
Business planners are just required to add some strategies of organizational structure which would help them to manage the business.
Recasting the financial statement:
Lastly, the financial statements have been recast on the basis of assumptions and the forecasting. Following are recast financial statements and the assumptions:
- Loan from ODB would be taken on 5% interest rate. Thus the loan amount would be $ 31,200.
- Cash savings should be $ 15,000 for the business.
- Depreciation rate on delivery van and kitchen equipment must be 15$ according to their uses and the industry evaluation.
- Electricity and water expenses would be $ 1500 according to the nature of the business.
- Total sales of the business would be 150 meal, 200 meals and 280 meals in year 1, 350 meals in year 2 and next would be same (Brigham and Daves, 2012).
- Cost of production would be different according to the sales.
- The production cost and the sales cost would be same according to the industry.
- Salary, stock and other fixed expenses of the company would also be same.