6Business Plan Template For BAAF Year 1

Executive Summary

This Business Plan has been prepared to obtain financing in the amount of 200,000 to set up a company in the South side of Dublin. We believe our business concept is Natural & Health and our research suggests the market potential for our product is 84.66%.

The management team formed as part of the Integrated Business Projects module and has distinct competencies in research; financial accounting, marketing, information technology, and project manage. The group anticipates that 200,000of finance is required for start up, with 184,221 required for on-going running costs of the company. It is anticipated the company will be profitable within the first year of operation with net profit around 23,989 by the end of the first year.

Our company provides a health and natural slimming tea, which contains all-natural herbs and flavors, and no artificial colors or preservatives. This kind of tea can effectively removes the excessive fat in human body and lowers the blood pressure and cholesterol. Our intended target market will be people between 15 and 29, especially students in college or university.

The Business Plan This Business Plan has been prepared in order to raise the financing necessary to develop and provide diet products within the Dublin area. Our company intends to provide a high quality competitively priced slimming tea. The proposal for the product was developed by our group as a result of our Integrated Business Projects module, and preliminary research into the development of the project indicates:-

We intend to offer a natural and healthy diet tea. Our intended target market is the young people between 15 and 29. This kind of product can make them lose weight effectively and has no negative effect on their body. Compared to other competitors, our product meets the needs of consumer to lose weight in a short time and provide a high quality with a competitively price. It is anticipated that we need 200,000 euro to set up the business and establish a sales & marketing programme. Our company is a limited liability Company. It is located

The Company

The National Nature & Health Company intends to trade as Limited company registered in Dublin, to begin trading on Jun 2005.

The Companys Business Address will be: 21 Arcade Market The Georage Street Tel: 18413465 Fax: 18413465 E-mail: www.nationalnaturehealthcompany.com

Number of Employees: Although the company is presently non-operational the company intends to be fully operational within the next six months. Management

The current members of the management group are: Ms Zhang Shi Yu responsible for the project management Ms Wu Jian Ping responsible for the companys marketing strategy

Ms Zhang Yang responsible for the companys financial strategy Ms Yu Tong responsible for the companys IT strategy Ms Ma Xiao Meng responsible for the primary research Ms Zhu Nan responsible for the second research While the above management team have individual specialties, it is anticipated they will be jointly involves in the daily running and management of the business. The CVs of the management team are included in the plan.

The Service/ Product The slimming tea is a high quality, competitively priced at 39.99 euro, offering a unique range of losing-weight and health functions to customers in the Dublin.

In the first instance, our company intends to offer a slimming tea to the market. It contains key ingredients that naturally help your body to burn calories efficiently by making fat and blood sugar available to use for fuel. If you drink the tea according to our prescription, you will lose weight effectively. Whats more, It is proved that regular drinking of this tea lead to no side effect. This kind of tea can lower the blood pressure and expel toxicity, nourish the face, moisten the intestines and free the stool.

Secondly, a distinguishing feature of our product is that it intends to offer a 100% natural and healthy tea and provide a high quality product and service. We invite a nutrition professor, who will help the customers to solve relevant problems on line or through telephone.

Sales & Marking Plan The Product / Service: our strategy is to adopt a high quality, low price, and high volume strategy - with our unique selling point to our target audience being young

people between 18 and 29. Most of them are students in college or university.

The main feature of the natural & healthy weight-reducing tea is to provide a healthy, stable and lasting weight-reducing method to meet the consumers satisfaction.

The main benefit of the product is that it can make people lose weight effectively.

The main feel-good factors of the product are a high quality and lower price.

This particular market has a huge potential volume. According to our primary research, over 80% young people have ever experienced or want to lose weight. The diet market is a global market. Every year, people can earn billions of euros from the diet marketing.

The estimated cost of our product is approximately 28,125 with sales estimated around 225,000.

The main fixed assets for setting up business are motor vehicle and equipment with an average cost of 56,400.

The unique selling point of our slimming tea is it contains all-natural herbs and flavors, and no artificial colors or preservatives. Whats more, Slimming (health) tea can effectively remove the excessive fat in human body and lower the blood pressure and cholesterol.

Price Our company proposes to adopt a cost plus strategy- as this appears to be the most flexible approach-price discounting may also be offered on the basis of age, quantity,

customer loyalty, promotional campaigns etc. With an estimated sales volume of 5,625 per year, we would anticipate a return of 225,000 in the first 12 months of operations.

We would envisage a retained profit of around 11,989 in the first year - this would continue increasing in the next 3 years, as the product is not subject to cyclical demand.

Promotion

Based on our financial situation, I think the most cost effective method of promotion would be:

Newspaper Advertising we will do some advertising on local newspapers, which mainly link to health, obesity, diet subject, and some Chinese newspaper -the cost of a quarter pages would be 600 per month. This method would be particularly cost effective as our target customers are the young people between 15 and 29. According to a statistical number in Irish Independent newspaper, there are half of young people in Ireland meeting the obesity problem now. Besides, 10,000-20,000 people read the XinDao weekly newspaper or People. Therefore, we propose to choose some newspaper in aspect of the price and sales to promote our product.

Print Advertising - Flying which is the cheapest way for us to promote our products. 15,000 pieces of paper would cost 450. I think it is especially suitable for a new company. These flying contain more detailed information on price, quality, image and give a clear, truth statement of our product. We also can do some sales promotion. For example, we give a 10% discount to the customers who

are in the first 100 consumers in our shop. It is available to increase the sales. If they find the product is good, they will coming back again or introduce the product to their friends.

Web-site Advertising it is the widest way to promote our products with an average cost of 100 for a full page mono advertisement. We have our own company website. People all over the world can get any information of the product. Our nutrition professor will answer any questions about losing weight on line. In my opinion, internet is a no frontier market; we might get more sales from the internet.

Sales promotions- through the Student Union enabling staff & students to enter a competition etc.

Place (Distribution) On the basis of cost, convenience, location, market potential, we decide to open a small shop in the George Street.

The price of our product is 39.99 per patch. It can be used for one month. We are one of the agents of this product. We import the products from china and sale in Ireland. At the beginning of the business, we only sell the slimming tea by ourselves. Our company is located in the George Street, which near shopping center and Dublin Business School and other universities.

The product / service will be available 5 days per week between the hours of 10:00 am and 6:00 pm at a cost of :-

87,360 for staffing wages per year 40,000 for rent per year

Primary Research We use questionnaire to do the primary research to identify the separate needs of consumers. The total number of people we research is about 114, mainly from Griffith, Portobello, DBS and DIT. The questionnaire provided critical information regarding: Demand for the product service Target people-57.6% of people expressing want to lose weight is between 22 and 25. Age 18-21 3 Zhu Nan21 9 Zhang Shi Yu17 Wu Jian Ping15 5 Ma Xiao Meng21 3 Zhang Yang25 3 Yu Tong20 23 Standard Error: 0.0454 Error estimates of 95% based on assumed normal distribution, two tailed test or +1.96 standard errorsRange : 0.4870 0.664 In this way, we can see the accuracy of the data collected. 22-25 11 7 7 11 15 17 68 26-29 4 7 3 6 20 30-33 2 1 1 2 1 7

Price-41% of those indicated they would be prepared to pay 20-35euro for the slimming tea, 27% of them would be prepared to pay 50-100euro, 21% of them would be prepared to pay 35-50euro, 10% of them would be prepared to pay more than 100euro by monthly. There average spend on losing weigh would be approximately 50eruo per month. Money() 20-35 Zhu Nan21 6 Zhang Shi Yu17 6 Wu Jian Ping15 10 Ma Xiao Meng21 10 Zhang Yang25 35-50 5 4 1 7 3 50-100 14 4 2 10 Above 100 1 3 6 2

Yu Tong 20

15 47

4 24

1 31

12

Quality 78.99% of those surveyed indicated they would like to try our new product, which contains all-natural flavors, and no artificial colors or preservation. People who would like People who would not to try our new product Zhu Nan21 Zhang Shi Yu17 Wu Jian Ping15 Ma Xiao Meng21 Zhang Yang25 Yu Tong20 14 12 12 21 15 20 94 like to try our new product 7 5 3 10 25

Standard Error: 0.0373 Error estimates of 95% based on assumed normal distribution, two tailed test or +1.96 standard errors Range: 0.7167 0.8631 In this way, we can see the accuracy of the data collected.

C.V. Zhang Yang Financial Manager My desire is to become a financial controller. Therefore, I choose this part. I think it is a good chance to improve my relevant skills.

Yu Tong- IT Manager The reason I choose take the IT part of the Group is I learn a little bit more than other members. I have ever studied computing in Dorset College for one year and I got certificate for ECDL. I think I have enough competence for this part of work.

Zhang Shi Yu Project Manager I have a better understanding of the project in aspect of English level. Therefore, I can help them to clarify the objectives of the project. In addition, I have a strong responsibility for the project. I have ever organized groups in the senior school. I believe I have ability to organize the group to complete the project.

JianPing Wu - Marketing I am marketing manager. Marketing managers job is to actualize potential exchanges for the purpose of satisfying human needs and wants. I like this work that has the challenge very much.

Ma Xiao Meng Primary Research Manager I am the primary research manager. I think I can doing this job better than other people because I can communicate with other people very well and I have lot s of friend who are want to lose weight so I can get more information from them. Thats why I choose the primary research manager.

Zhu Nan Secondary Research Manager My name is Zhu Nan. Im the secondary research manager, because I can just sit down and click the mouse, log on to internet, and then I can know anything I want. So

Im very useful for the secondary research.