Table of Contents
Executive Summary. 4
1. Industry Analysis. 4
2. Company Description. 5
2.1 Goals after leaving the University. 5
2.2 Purpose, Values, Vision & Mission. 5
2.3 Impact on my Passions. 5
2.4 Three Key Questions to Guide the Choices. 5
2.5 Market and Opportunity that Align with the Goals. 6
3. Operations Plan. 6
3.1 Production Process. 6
3.2 Demand Forecasting. 6
3.3 Capacity Plan. 6
3.4 Quality Management 6
4. Supply Chain Management Plan. 6
5. Market Analysis. 7
5.1 Supply Chain Process. 7
5.2 Structure Mapping. 7
5.3 Supply Chain Risk Management 8
6. Product Design and Development Plan. 8
7. Marketing Plan and Implementation Strategy. 8
7.1 Compelling Value that will be Offered to the Employers and Society: 8
7.2 Differentiation Between me and other UAE students. 9
7.3 The Broader Aspect of the Business Plan. 9
8. The Economics of the Business. 9
9. Risks and Mitigation. 9
9.1 The key milestones and checkpoints in the plan. 9
9.2 Ways to measure the milestones specified. 10
9.3 Defining Success. 10
9.4 External Factors that might affect positively or adversely for attaining success. 10
9.5 Developing Contingency and Risk Mitigation Strategies. 10
9.6 Past Experience of Failure and Learnings from the Same. 10
10. Motivation for Entrepreneurship. 11
10.1 Planning to Practice Ethical Principles in Daily Actions. 11
10.2 Three people who could advise or mentor me. 11
10.3 Reason for choosing them.. 11
10.4 Their Input in their Career 11
10.5 Summarizing personal business plan in 6 words. 11
11. Overall Schedule. 12
12. Financial Projections. 13
Reference List 14
In this report, there will be a detailed evaluation provided for the kind of business that I would like to start with after completion of my academics. The chosen area of work is purchasing second-hand furniture and renovating it in a unique way. This business will help me move forward with a low capital in hand and make my passion as my profession. I will get to design and initiate colors as per my choice and thoughts and present it to the customers. Further, the various ways through which I can be impacted by the risks have been discussed along with the supply chain management plan. The business economics plan and its operation in the market have been evaluated. Also, the goal of the business and my inspiration for my chosen has been described.
1. Industry Analysis
Figure: Market Summary
(Source: mordorintelligence.com, 2021)
Based on the market analysis, I have decided to sell used furniture after renovation as my future business. I will be doing low capital investment and will buy old products and will repair and renovate them and sell them at a new price in the market. The graph depicts in the coming years the demand and sale of furniture. During the forecast period, the market of UAE office furniture is expected to record a positive CAGR. The construction activities are constantly increasing and require an input of furniture and hence raising the demand (Mosteanu and Alghaddaf, 2019). With an increase in nuclear families and a rise in demand for residential areas, the UAE furniture industry is also expected to signify a positive CAGR during 2020-2025. Living-room and dining-room furniture are the largest segments.
2. Company Description
2.1 Goals after leaving the University
My primary goal after leaving the university is to construct the business plan the way it is being decided.
2.2 Purpose, Values, Vision & Mission
Purpose: Presentto the market second-hand furniture at a competitive price and designs that are unique.
Values: Ensure that the capital is properly used and a business takes small leaps to be popular in the market.
Vision: The vision of the business is to provide the market with furniture in a renovated way that will attract them.
Mission: To deliver unique products to the consumers at a competitive market price.
2.3 Impact on my Passions
Based on the mission and vision of the business this will also reflect my passion of art and design that I have developed since I was a kid. Renovating the used furniture in new styles, patterns and colors will help me keep engaged with my passion and well-remembered by my customers.
2.4 Three Key Questions to Guide the Choices
- Who can be the target consumers of the business?
- How appropriately can the capital be utilized?
- What uniqueness can be added to second-hand furniture?
2.5 Market and Opportunity that Align with the Goals
The opportunity to sell the products to the new residentials who will be interested to decorate their house or fill up the house with required furniture (Pirc Barčić et al., 2021).
3. Operations Plan
3.1 Production Process
The second-hand furniture will be taken from certified websites where sellers post their used furniture at a reasonable price.
3.2 Demand Forecasting
The demand forecast for second-hand furniture is for the ones who have recently taken a residential place and are looking to fill up their house space at reasonable rates (Kapoor and Vij, 2021). Apart, from these people; offices, shops and restaurants can also purchase this second-hand furniture for cost-cutting.
3.3 Capacity Plan
The quantity has to be properly planned based on the capital invested in the business. Also, the budget states the capacity of the total furniture that can be purchased from a particular budget.
3.4 Quality Management
In order to manage the quality of the product and to purchase second-hand quality products, an experienced quality manager will be recruited.
4. Supply Chain Management Plan
Forecasting: This feature will help in understanding the company’s revenue objectives and will lead to supply chain planning. This helps in studying the previous demands of the market and the patterns that changed.
Sales and Operations Planning: The total revenue required for the business will be jotted here and also the total capacity required to keep the materials of the business. Also, plan the area and method to conduct the business.
Procurement: The best website or dealer will be contacted for delivering the used furniture to the store. The price, quality and performance are analysed in this factor.
Warehousing: After receiving the products from the dealers, the duty is to keep the products safely in the warehouse and then further plannings of conducting work on it will be decided (Terminanto, Hidayanto and Utomo, 2020).
Logistics: At this point, the products will be shipped to teh customers safely or the materials can come from the suppliers. This whole process of logistics management is directed to and from the locations of the company.
5. Market Analysis
5.1 Supply Chain Process
In the supply chain process, the three various types of flow in supply chain management occur through material flow, information flow and money flow. Material flow includes the smooth flow of the product from the producer to the consumer (Petersen, Hackius and von See, 2018). Information flow includes the request for quotation, quality complaints, purchase order and reports on supplier performance. Money flow states the invoice raised by the producers and the clients check the order for its appropriateness. If the claims are correct then the cash will flow from the clients to the producer.
5.2 Structure Mapping
Based on the requirements and preferences of the target market the furniture will be renovated and presented. Based on this factor, the orders will be produced to the customers and the number of sales will be calculated and analyzed (Ivanov, 2018).
5.3 Supply Chain Risk Management
Identify: The types of risks that the business might be exposed to and the root cause of its occurrence will be identified (Fan and Stevenson, 2018).
Quantify: The ways these risks will be impacting the business and effect the sales and profitability will be analyzed.
Mitigate The strategies and tactics that can be involved in the process to mitigate the issue.
Respond The time required to recover from a disruptive event and get back to normal operations.
6. Product Design and Development Plan
Identify the consumer requirements: Based on the market research, the similar type of furniture that will be required by them will be offered by them. Also, quirky and unique types of furniture are now preferred in the market and based on that it will be renovated. Also, the competitors’ business will be analyzed in order to offer better to the target market (Keiningham et al., 2020).
Establish target performance specifications
The specifications of the target performance will be based on locations. According to locations, the colours and patterns of the furniture renovation will be conducted.
Generate product ideas: Analyzing the demand of the target market, innovations will pertain to second-hand furniture.
Select product ideas: The product ideas will be done majorly by me as I will include my designs and color combination in the furniture that will be new in the market.
Establish final product specifications: The specifications of the product will include unique colors and quirky designs (Jones et al., 2017).
Plan downstream development: Further, research will be conducted in order to check if there is a change in the taste and preference of the customers.
7. Marketing Plan and Implementation Strategy
7.1 Compelling Value that will be Offered to the Employers and Society:
- The second-hand furniture that will be offered to society will be of compelling value because using a piece of second-hand furniture will help in less wastage of products leading to sustainability. Also, the products will be sold in a refurnished way and to enhance its look, quirky style and pretty colors will be added. The ways these risks will be impacting the business and effect the sales and profitability will be analysed.
7.2 Differentiation Between me and other UAE students
The differentiation between me and other UAE students is that I am planning to set up a business that will not make money in the market but also help me keep up my passion.
7.3 The Broader Aspect of the Business Plan
The broader aspect of this business plan is that in future this business can be expanded and not only second-hand furniture will be sold but manufacturing will also be done (Kiukkanen, 2021).
8. The Economics of the Business
Within the economy, every business operates (Iansiti and Lakhani, 2020). Based on this factor economic expectation, my business will decide what kind of products are required to be produced, the way they should be priced, the number of employees required in the initial stages to be employed, how much will be paid to these employees and further how much the business can be expanded and more.
9. Risks and Mitigation
9.1 The key milestones and checkpoints in the plan
The key milestones and checkpoints in the business management plan include getting in touch with appropriate dealers who will provide quality second-hand furniture at a reasonable rate. Ensure that the quality check is done properly because no good will be sold to the customer in and quality as that might destroy the reputation of the business (Zalisham and Jali, 2021). Also, receive positive feedback from the customers and get back loyal customers in future as well.
9.2 Ways to measure the milestones specified
Instead of focusing on the long-term goals, the milestones will be made in small sections so that the leaps are easier to reach and preparations can be done for the upcoming accomplishments.
9.3 Defining Success
- Success for me is, the capital I will be investing is properly utilized. The work conducted is done with a high level of dedication and uniqueness can be seen in the products. Lastly, getting positive reviews from the customers and making loyal customers. Offices, shops and restaurants can also purchase this second-hand furniture for cost-cutting.
9.4 External Factors that might affect positively or adversely for attaining success
The external factor that might adversely affect the business is the tough competition already pertaining in the market and the target market already been interested in the products offered by the competitors (Feng et al., 2019).
9.5 Developing Contingency and Risk Mitigation Strategies
Avoid it: In this case, the risk can be extremely dangerous and can be avoided by not doing the activity altogether.
Reduce it: In case, the risk cannot be avoided completely then it can be reduced.
Transfer it: An insurance contract can be done in order to transfer the risk from one party to another with payment in return.
Accept it: if there is an occurrence of a minor risk then it is suggested to accept them and conduct work accordingly.
9.6 Past Experience of Failure and Learnings from the Same
One of the past experiences that have helped me learn for my future endeavors is creativity and innovation. I have earlier done my project have taken immense help from peer reviewed sources and adapted their pattern of writing and this made me realize that the paper lacks my input of creativity and innovation. Even though, the project was extremely informative it lacked the uniqueness. Further, not only in academic projects but in real-life projects I have decided to add creativity that will set my project apart from the others and also attract others to read or purchase them.
10. Motivation for Entrepreneurship
10.1 Planning to Practice Ethical Principles in Daily Actions
The small leaps of mission that will be created, its plan to reach it significantly by working on a regular basis. Make sure that the customers are satisfied and also the employees are happy with their work.
10.2 Three people who could advise or mentor me
My Mother, Bill Gates and Dhirubai Ambani.
10.3 Reason for choosing them
The reason for choosing my mother is that she always guides me in my work conducted in any field. Also, she never stops believing in the goals that I have set.
The reason for choosing Bill Gates is that his work ethic could make me more concentrated on doing my work in a more ethical manner where every action taken is done systematically.
The reason for choosing Dhirubhai Ambani, the business tycoon is because he taught a background of a person does not matter if the dreams are tactful.
10.4 Their Input in their Career
My mother has been successfully working as a homemaker and also is involved in a profession of her choice where she too leads her passion and this motivates me.
10.5 Summarizing personal business plan in 6 words
Creative idea, unique designs, reasonable furniture, quirky styles, beautiful colors and easily available.
11. Overall Schedule
|Area of Work||1st week||2nd week||3rd week||4th week||5th week||6th week||7th week|
|Business plan outlined|
|Different dealers chosen|
|Incorporation of Venture|
|Obtaining the first sale|
12. Financial Projections
|Cost of starting the business (initial capital)||1.5 million|
|Expected Net Income||323,720|
Based on the discussion conducted it can be concluded that I will be starting my business with a low capital where I will be purchasing second-hand furniture and then fix, renovate and re-design them and make them market-ready. In order to conduct the business, authentic dealers will be contacted and based on the capital in hand the expenditure will be set. The business will also record the positive review of the customers on the company website.
- Fan, Y. and Stevenson, M., 2018. A review of supply chain risk management: definition, theory, and research agenda. International Journal of Physical Distribution & Logistics Management.
- Feng, T., Wang, D., Lawton, A. and Luo, B.N., 2019. Customer orientation and firm performance: The joint moderating effects of ethical leadership and competitive intensity. Journal of Business Research, 100, pp.111-121.
- Iansiti, M. and Lakhani, K.R., 2020. Competing in the age of AI: strategy and leadership when algorithms and networks run the world. Harvard Business Press.
- Ivanov, D., 2018. Revealing interfaces of supply chain resilience and sustainability: a simulation study. International Journal of Production Research, 56(10), pp.3507-3523.
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- Kiukkanen, V., 2021. The value of Finnish second-hand consignment stores for second-hand sellers.
- mordorintelligence.com, 2021. UNITED ARAB EMIRATES OFFICE FURNITURE MARKET – GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2021 – 2026). Accessed on 07.12.2021 from https://www.mordorintelligence.com/industry-reports/uae-office-furniture-market
- Mosteanu, N.R. and Alghaddaf, C., 2019. Smart economic development by Using Foreign Direct Investments–UAE case study. Journal of Information Systems & Operations Management, pp.9-20.
- Petersen, M., Hackius, N. and von See, B., 2018. Mapping the sea of opportunities: Blockchain in supply chain and logistics. it-Information Technology, 60(5-6), pp.263-271.
- Pirc Barčić, A., Kitek Kuzman, M., Vergot, T. and Grošelj, P., 2021. Monitoring consumer purchasing behavior for wood furniture before and during the COVID-19 pandemic. Forests, 12(7), p.873.
- Terminanto, A., Hidayanto, A.N. and Utomo, F.B., 2020. Implementation Open Source System Resource Planning in Sustainable Supply Chain Management of Small and Medium Enterprise. International Journal of Supply Chain Management, 9(3), pp.472-495.
- Zalisham, F.A.B.H.A. and Jali, M.N.B.N., 2021. Preliminary Study On It Security Maintenance Management In Malaysia Organizations. PalArch’s Journal of Archaeology of Egypt/Egyptology, 18(1), pp.4061-4073.
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