Abdullah Al-Shukaili MANGT100 Fall 2016 Tutorial Class Week 4 & 5 & 6 Abdullah Al-Shukaili MANGT100 Fall 2016

Business Idea Presentation The Business idea will be evaluated based on the following criteria:   Criteria Marks 1. Innovative / Creative 2 2. Feasibility 3. How did they generate this idea 4. Presentation 5. Quality of the report in terms of the content Total 10 Marks

Course Goal – create a Business Plan Executive Summary Business Overview [You will do as plan part 1] Marketing Plan [You will do as plan part 2] Risks [You will do in final presentation] Operations Plan [You will do as Part 3] Management [You will do in final presentation] Financial Plan [You will do as plan part 4] Offering (if seeking investors)

For Today Entrepreneur being invited to give a presentation about his business ( place 6 –B)

Omandaily newspaper ; 10/10/2016

Opportunity to invest in Oman Please search about this topic and bring some ideas

13 Small Business Ideas with Small Capital https://www.youtube.com/watch?v=GTjpeeVUDQs

Top 20 Best Small Business Ideas for Beginners in 2016 https://www.youtube.com/watch?v=G0dzLanYW1E

How To Write a Business Plan To Start Your Own Business https://www.youtube.com/watch?v=Fqch5OrUPvA

Executive Summary The Company – your name and location The product – what will you create or sell? Market potential – how many customers are there? Operations Plan – how will you make your product? Distinctive Competency – what makes your business special? Financial Plan – how will you make money?

Business Overview Business Description Distinctive competence – what makes this business special? [In Business Plan part 1 you will review 3 competitors to see if you can be special.] Achievements to date – what have you done so far? Research you have conducted. Product testing you have done. Sample sales. [In Business Plan Part 1 you will create a survey to learn more about your customers]

Marketing Plan Advantages of your product Market definition Market size Market strategy Competitors Sales plan

Risks Imitation risk Production risks Personnel/leadership risks Legal risks Experience limits

Operations Plan Initial work – set up Production Plan Growth Plan

Management Advisory Board Executive Team Management Team Employees

Financial Information Payment Terms / policies Warranties Financing sources Financing plan

New Child’s Toy Business Overview Business Description - I plan to create a new toy for small children – a talking camel. Distinctive competence – While there are many other toys available for children, few include animals from this region. Achievements to date – I have conducted a survey of customers. I found mothers like the idea of having a regional animal for their children to play with.

New child’s Toy Marketing Plan Advantages of your product – Few other regional toys are available. Market definition – I will sell on-line to the people of Oman. Market size – 4 million people live in Oman Market strategy – I will focus on mothers of small children Competitors – Large international companies have lots of toys for sale. Sales plan – I will recruit mothers to sell to other mothers. I will pay the saleswomen a commission on each sale.

Personnel/leadership risks – I have never owned such a business before New Child’s toy Risks Imitation – It is possible other toy manufacturers will also start offering more regional animal toys. Production risks – I am relying on a company in China to make the toys. Personnel/leadership risks – I have never owned such a business before Legal risks – we must be careful if children get injured by these toys Experience limits – I have no business experience

New Child’s Toy Operations Plan Initial work – set up – I need to create a model camel. It should include the size, the appearance, and the materials used to cover the animal. I intend the camel to “speak,” so I will need to record a series of comments for it to make, in both Arabic and English. Production Plan – The camel will be manufactured in Shanghai by a small company that makes toys for other companies. Initially I will order one thousand of the camels. They will ship them to me through the Port of Muscat. Growth Plan – If sales are good, I will order more camels. I will also expand to other regional animals like the Gemsbok.

New Child’s toy Management Advisory Board – My father has run a successful business for 23 years. I will use him as an advisor. Executive Team – I will be the president of this company. Management Team – I will manage the business. Employees – I will find mothers who wish to help sell the toys on commission. I do not have plans for any other employees at first. As the business grows, I may hire one person to help.

New Child’s Toy Financial Information Payment Terms / policies – We will accept cash and bank cards. I have contacted a bank about this process. Warranties – We will give all money back if a customer does not like the toy. Financing sources – I plan to borrow 5,000 OMR from my father. I will ask Bank of Muscat for a loan of 7,000 OMR. Financing plan – I will ask that the bank loan be paid back over 36 months.

New Child’s Toy Financial Information Cashflow for my business: I expect to sell 100 toy camels each month. My cost for each camel is 2.5 OMR. I will sell each camel for 5.0 OMR per cup. Here is my cashflow for the first year:

Toy Business – cashflow analysis Monthly - Buy 100 camels (2 Toy Business – cashflow analysis Monthly - Buy 100 camels (2.50) – sell 100 camels (5.0) Month 1 2 – 3 – 4 5 6 7 8 9 10 11 12 Office 100  100 Commissions C.O.G.S.  250 250 Total costs 450 Revenue  500 500 Profit/(loss) 50 Year profit/ (loss) 150 200 300 350 400 550 600

Toy Business Financial Information Breakeven analysis for my business: I expect to sell 100 camels each month. My cost for each camel is 2.5 OMR plus 1 OMR sales commission I will sell each camel for 5.0 OMR My profit on one camel is 1.5 OMR Total fixed costs for first year – 12*100 (Office costs) = 1200 OMR / Profit on one camel (1.5 OMR) = 800 camels to sell to cover all costs (break even)

Business Plan Practice Business Description Distinctive competence – what makes this business special? [In Business Plan part 1 you will review 3 competitors to see if you can be special.] What makes any business special? Find 5 ways to be special.

Business Plan Practice Marketing Advantages of your product Sales plan How would you tell the world about your new business? Provide 4 cheap approaches.

Business Plan Practice Operations Initial work – set up Production Plan Growth Plan What are 4 things almost every business has to do to start?

How To Write A Business Plan | How To Start A Business https://www.youtube.com/watch?v=x0y3VgjhGw0

Omani Photobook example Business Overview Business Description - I plan to create a book of Omani photographs that I can sell to tourists. Distinctive competence – There are many such books, but my photos will be joined by historical descriptions of the places. Achievements to date – I have conducted a survey of customers. I found they like the pictures I have taken and are interested in the history of the places.

Photobook example Marketing Plan Advantages of your product – I will have historical information with my pictures. Market definition – I will sell to tourists Market size – 250,000 people visit Oman every year Market strategy – I will focus on tourists who come to historical sites Competitors – I have found 12 other picture books about Oman Sales plan – I will set up a website and meet with managers of tourist hotels and tour companies.

Photobook example Risks Imitation – It is possible other people will make similar books. Production risks – It may be expensive to get the book made since it will have many photographs. Personnel/leadership risks – I have never published a book before. Legal risks – I must make sure I get permission to take the pictures Experience limits – I have no business experience

Photobook example Operations Plan Initial work – set up – I will need six months to take all the pictures and to do the historical research. Production Plan – I need to find a publishing company that has good experience publishing picture books. I will work with them to arrange the materials for publication. I will order 200 copies of the book. Growth Plan – If this book is successful, I can publish additional volumes.

Photobook Example Management Advisory Board – My father has an interest in local history. He can advise me on historical information. Executive Team – I will be the owner of this company. Management Team – I will manage the business. Employees – I will not need any employees.

Photobook example Financial Information Payment Terms / policies – We will accept cash and bank cards. I have contacted a bank about this process. Warranties – We will give all money back if a customer does not like the book. Financing sources – I plan to borrow 15,000 OMR from my father. I will ask Bank of Muscat for a loan of 10,000 OMR. Financing plan – I will ask that the bank loan be paid back over 36 months.

Photobook example Financial Information Cashflow for my business: I expect to sell 20 books each month. My cost for each book is 6 OMR I will sell each book for 15 OMR Here is my cashflow for the first year:

Photobook – cashflow analysis Monthly Buy 20 books for 6 OMR – sell 20 books for 15 OMR 3 4 5 6 7 8 9 10 11 12 Equipment 100   Travel 20 C.O.G.S. 120 Total costs 140 Revenue 300 Profit/(loss) (120) (20) 160 Year profit/ (loss) (140) (160) (180) (200) (220) (60) 260 420 580 740

Photobook example Financial Information Breakeven analysis for my business: I expect to sell 20 books each month. My cost for 1 book is 6 OMR. I will sell 1 book for 15 OMR. My profit on one book is 9 OMR Total fixed costs for first year is 20* 12 (travel costs) + 100 (equipment) = 340 OMR / Profit on one book (9 OMR) = 37.7 books to cover all costs (break even)

Business Plan Practice Financing She wants to charge 15 OMR for each book. Is that a good price? What are 3 ways to determine how much to charge for a product?

Business Plan Practice Customer survey What questions should this person ask tourists about her Omani photobook? List 5 good questions for her survey.

Business Plan Practice Production A company will create her book. What are 4 things she should check when she chooses a publishing company?

Business Plan Practice Advisory board She has no experience making such a photobook and selling it. Where could she get help?

Business Plan Practice Cash Flow table She expects to be selling books in six months. What could cause a delay?

Business Plan Practice A Good Business? Here is her break even analysis: Book cost - 6 OMR. Customer price - 15 OMR. Profit - 9 OMR Total fixed costs for first year is 20* 12 (travel costs) + 100 (equipment) = 340 OMR / Profit on one book (9 OMR) = 37.7 books to cover all costs (break even)

7 Steps to a Perfectly Written Business Plan https://www.entrepreneur.com/article/281416