Entrepreneurship Week 7 Operations

Business Plan – Part 2 – Due March 14 After you have asked at least five people to answer the questions about your business idea, summarize what they told you. (Attach notes from your interviews at the back of this assignment as an appendix.) What do they see as the best parts of your business idea? What do they see as the weakest parts of your idea? How much would they be willing to pay for your product or service?

Business Plan – Part 2 – Due March 14 Customer research: I interviewed 7 potential customers. The part of my business they liked most was… They had some concerns about … When I asked about the price of my product they said…

Business Plan – Part 2 – Due March 14   Next do a competitive analysis. Name three companies that do something similar to your business. Describe the product and service of each company. Describe the strength of each company – what does each company do that helps it be successful?

Business Plan – Part 2 – Due March 14 Competitive analysis There are three businesses similar to mine. One is called … It sells… One thing they do well is …

Business Plan – Part 2 – Due March 14 Now that you have customer information and competitive information, rewrite the description of your business. Describe what your company will do that is better than the three companies you have described. You should have at least two improvements. For each improvement, describe why customers will value your improvement. What did customers tell you in your survey that will help you be special? What are they looking for? Then describe how you can create that improvement.

Business Plan – Part 2 – Due March 14 My competitive Strategy Competing companies do several things very well. In order to compete with those companies I will… I think that will be successful with customers because.. I will be able to make this improvement and still make a profit because.. [If you say you will have lower prices, unless you can prove how you will do that and still earn a profit, assume your mark will be 5/15 on this assignment]

Business Plan – Part 2 – Due March 14 Now describe how you will market your business. Where will you sell? How many customers are located there? Which part of the population will you sell to – men? Women? Children? Foreigners? How will you advertise your business to those customers? What will that cost? Why is that the best approach? If all you say is “I will use social media” expect a mark of 0/15

Business Plan - Part 3 Describe where you will do your business and how you will operate. If you are going to make a product, how will you make it? If you are selling a product as a retailer, where will you get the products you sell? How much will you have to pay for the products you sell? What employees will you have, and what will each of them do?   If your business is successful, what growth plans do you have?

Business Operations Value Chain – suppliers to company to distributors to customers – Toy example

Business Operations Value Chain – suppliers to company to distributors to customers – Book publishing example

Business Operations Value Chain – Dress shop example – Who are the suppliers? How do dresses get to your shop? How do dresses get to your customers?

Business Operations Value Chain – Perfume shop example – Who are the suppliers? How do Perfumes get to your shop? How do Perfumes get to your customers?

Business Operations Value Chain – Restaurant example – Who are the suppliers? How does food get to your restaurant? How does food get to your customers?

Business Operations Value Chain – Your business – Who are your suppliers? How will supplies get to your business? How does your product get to your customers?

Setting up your Business What will it take to prepare your business? Usually you need to fix up a facility, buy equipment, and hire employees. What will all that cost?

Set up – ice cream shop example I first need to rent a store near the Nizwa Mall. It will need to have some parking spaces out front, and a good air conditioning system to keep the store cool. It will also have to have a wash basin where I can clean my ice cream scoops. I will want to paint and decorate it before I open. I will need to purchase two display refrigerators with glass fronts so I can keep the ice cream cool, but still have it visible for customers to see. I will need another freezer in the back of the store to keep extra ice cream. To collect money, I will need a cash register and a counter. I will operate the store during the first year, so I do not need to hire any employees.

Initial Costs – ice cream shop example Costs – Stores with the size and location I need rent for about 200 OMR per month. I estimate decorating costs at 50 OMR I have found used ice cream refrigerators for 130 OMR each, and a large freeze will cost me another 300 OMR. The cash register and counter will cost 90 OMR. Total set up costs – 50 OMR for paint and decorations 260 OMR for two ice cream displays 300 OMR for the storage freezer 90 OMR for the cash register

Operations How will you make your product? Where will you get materials? How much will those materials cost? How long will it take to make each product?

Suppliers Ice cream shop example I do not plan to make my own ice cream. I will purchase it from Muscat Creamery. I have contacted them and learned I can buy their ice cream in 5 liter containers for 20 OMR. I have found that 5 liters of ice cream yields 50 scoops, or .4 OMR per scoop. I have another source – Nizwa Supply – for plastic cups, spoons, and napkins. Total cost per sale will be .1 OMR. Total cost of each sale: .4 OMR ice cream .1 OMR cups, spoon, napkins .5 OMR total

Growth Plan What plans do you have for the future? What might you do in the next 1-3 years if your business is successful?

Growth Plan Ice cream shop example I plan to start with 8 flavors of ice cream. If the store is successful, I will add additional flavors and some candy items.

Set up – Photobook example I have a good camera, but for professional quality photos, I will need to buy a very good Nikon. I will also need to drive to many important locations about Oman to take pictures. I expect that will take me 6 months. I will also have to write up the history of these places. I already have some books on the history of Oman, but I will need to go to the library for more, and I will want to talk to local people who might have additional stories to tell. I have a car that can travel throughout Oman, but I will need money for gas and meals.

Initial Costs – Photobook example Costs - 200 OMR for the Nikon camera 20 OMR for gas and food for 6 months

Suppliers – Photobook example I have spoken with sales people at Muscat Instaprint. They tell me I need to layout 180 pages for the book. For each page I will have to identify the photo to use, and give them the photo description in a Microsoft Word document file. They will charge me a 50 OMR “set up” fee and 6 OMR for each book I order. I plan to order 200 books to start. Once I have the books, I will act as my own salesman, and I will visit tourist hotels and tour company operators to see if they will show my books to their customers.

Growth Plan – Photobook example There are several ways I could expand my business. One way would be to hire a salesperson who can reach more tour operators in the south of Oman. Another way would be to produce more tour books with each either focusing on a location (Nizwa, Muscat, Salalah), or a theme (castles, seashore, mountains).