Ekvin Peiris ADEBM 2019/019 Imagine Idea (PVT) LTD. Business Plan. T.E.I Peiris ADEBM 2305: Business Plan Imagine Idea (PVT) LTD ( Service Oriented Business) No 74/2 s't Anthonys road, Kadalana, Moratuwa. Phone No: +94 72 333 55 00 E - mail: info@imagineidea.co.uk Web site: https://imagineidea.co.uk/ [ 21 .05.2020 ] ADEBM 2305: Business Plan Name of Student : T.E .I Peiris Registration Number : ADEBM2019 /0 19 Academic Year : 2019/2020. Advanced Diploma in Entrepreneurial Business Management (A DEBM) Small and Medium E nterprises Development Support Unit Department of Entrepreneurship Faculty of Management Studies and Commerce University of Sri Jayewardenepura 1 1 Imagi ne Idea (PVT) LTD. Personal Information. Name of the student. T.E .I Peiris Re gistration Number. ADEBM 2019 / 0 19 Y ear / Level ADEBM 2019. Contact Number 070 2013562. E Mail ekvinpeiris@gmail.com Home Address 74/2, St Anthonys ’ s R d, Kadalana, Moratuwa Name Of the Superv isor / Lecture Dr S riyani Ranasinghe. Date of the Submission of the report 21/05/2020. 2 2 Imagi ne Idea (PVT) LTD. Business Plan Title of the Business: Imagine Idea (PVT) LTD. Owners ’ Name : Ekvin Peiris Business A d dress: 74/2, St Antony’s Road, Kadalana, Moratuwa. Tel: 011 2652662 M ob: 0 72 3335500 E - Mail: info@imagineidea.co.uk Website: https://imagineidea.co.uk/ Copy No. 01 3 3 Imagi ne Idea (PVT) LTD. Table of Contents Bus iness Plan. ................................ ................................ ................................ ....................... 2 Executive Summary. ................................ ................................ ................................ ............. 7 Business Description / Profile ................................ ................................ ............................... 8 Cu rrent Status of the Business. ................................ ................................ ......................... 8 Brief Historical Information about the Business. ................................ .............................. 9 Vision o f the Business ................................ ................................ ................................ ....... 9 Mission of the Business ................................ ................................ ................................ ..... 9 Values of the Business. ................................ ................................ ................................ ..... 9 Goals of the Busine ss ................................ ................................ ................................ ...... 10 Objectives of the Business. ................................ ................................ ............................. 10 Environmental Analysis. ................................ ................................ ................................ 10 SWOT A nalysis. ................................ ................................ ................................ .......... 10 PESTEL analysis. ................................ ................................ ................................ ........ 11 Industry Analysis. ................................ ................................ ................................ ............ 12 Competitor Analy sis. ................................ ................................ ................................ ....... 13 Customer Analysis. ................................ ................................ ................................ ......... 15 Product / Service of the Business. ................................ ................................ ................... 16 St rategies for the Bu sines s. ................................ ................................ ............................. 16 Achievements and Future Planning. ................................ ................................ ................ 17 Location of Business. ................................ ................................ ................................ ...... 17 Le gal Structure of Business. ................................ ................................ ............................ 18 Shareholders’ Information. ................................ ................................ .............................. 18 4 4 Imagi ne Idea (PVT) LTD. Management Team. ................................ ................................ ................................ ......... 18 Market Information. ................................ ................................ ................................ ........ 19 Financial Highlights. ................................ ................................ ................................ ....... 20 Social Responsibility. ................................ ................................ ................................ ...... 20 Marketing Plan. ................................ ................................ ................................ ................... 21 Description of Goods / Services. ................................ ................................ ..................... 21 Target Customers. ................................ ................................ ................................ ........... 21 Target Market. ................................ ................................ ................................ ................. 22 Existing. ................................ ................................ ................................ ....................... 22 Proposed. ................................ ................................ ................................ ..................... 23 L ocali zation of Goods / Services. ................................ ................................ ................... 23 Marketing Related Staff and Salaries. ................................ ................................ ............. 24 Logistics/ (Pro moting) of Marketing. ................................ ................................ ............. 25 Existing Methods. ................................ ................................ ................................ ........ 25 Proposed Methods. ................................ ................................ ................................ ...... 25 Tot al Demand for the Pro duct. ................................ ................................ ........................ 26 SWOT Analysis related to the Marketing. ................................ ................................ ...... 26 Strategies for Growing the Business. ................................ ................................ .............. 27 7P s of Marketing ................................ ................................ ................................ ............. 27 Product. ................................ ................................ ................................ ........................ 27 Pricing. ................................ ................................ ................................ ......................... 28 Plac e. ................................ ................................ ................................ ............................ 28 Promotion. ................................ ................................ ................................ ................... 28 People. ................................ ................................ ................................ ......................... 29 Process ................................ ................................ ................................ ......................... 30 Physical Evidence ................................ ................................ ................................ ........ 30 5 5 Imagi ne Idea (PVT) LTD. Promotion Strategies ................................ ................................ ................................ ....... 31 Break Even Analysis. ................................ ................................ ................................ ...... 32 Break Even Service Units. ................................ ................................ ........................... 32 Break Even Service Value. ................................ ................................ .......................... 32 Sales Forecasting. ................................ ................................ ................................ ............ 33 Marketing Related Total Cost. ................................ ................................ ........................ 34 Cash Outflow - Marketing ................................ ................................ ............................... 34 Marketi ng Promotional Method s. ................................ ................................ ................... 35 Existing Methods. ................................ ................................ ................................ ........ 35 Proposed Methods. ................................ ................................ ................................ ...... 36 S ales Non - Current Asse ts relating to the Marke ting. ................................ ...................... 37 Depreciation Cost Monthly and Yearly ................................ ................................ .......... 37 Existing ................................ ................................ ................................ ........................ 38 Prop osed ................................ ................................ ................................ ...................... 38 Communication Strategy. ................................ ................................ ................................ 38 Overall Sales Strategy. ................................ ................................ ................................ .... 38 Marketin g Bud get. ................................ ................................ ................................ ........... 39 Existing ................................ ................................ ................................ ........................ 39 Proposed. ................................ ................................ ................................ ..................... 39 Operation Pla n. ................................ ................................ ................................ ................... 40 Production Process. ................................ ................................ ................................ ......... 40 Operation Fixed Assets. ................................ ................................ ................................ .. 43 Existing ................................ ................................ ................................ ........................ 43 To Be Purchased ................................ ................................ ................................ .......... 44 Operational Staff Organization Structure. ................................ ................................ ....... 44 Staff Ro le and Responsibili ties. ................................ ................................ ...................... 46 6 6 Imagi ne Idea (PVT) LTD. Other Annual Variable Costs. ................................ ................................ ......................... 47 Organization & Management Plan. ................................ ................................ ..................... 48 Introduction ................................ ................................ ................................ ......................... 48 Legal Status of the Business. ................................ ................................ .............................. 48 Name of the Business ................................ ................................ ................................ .. 48 Registration Date and Number. ................................ ................................ ................... 48 Address of the Business. ................................ ................................ .............................. 49 Legal Type of the Busi ness. ................................ ................................ ........................ 49 Qualifications of the Owner/ Partners/ Share Holders. ................................ ....................... 49 SWOT Analysis. ................................ ................................ ................................ ................. 50 Organiz ational Structure. ................................ ................................ ................................ .... 51 Skilled Labor Cost. ................................ ................................ ................................ .......... 51 Responsibilities of Active Partners and Key Employees. ................................ ............... 51 Management and Administration Expenses. ................................ ................................ ... 52 Administrative Fixed Assets. ................................ ................................ .......................... 52 Exi sting Level ................................ ................................ ................................ .............. 52 Financial Plan. ................................ ................................ ................................ ..................... 53 Introduction. ................................ ................................ ................................ .................... 53 Project Cost (Capit al Requirement) ................................ ................................ ................ 53 Working Capital For year. ................................ ................................ ............................... 54 Fixed Assets/ Non - current Asserts. ................................ ................................ ................. 55 Profi t and Loss Statemen t. ................................ ................................ .............................. 56 Cash Flow Statement. ................................ ................................ ................................ ...... 57 Balance Sheet. ................................ ................................ ................................ ................. 58 Fin ancial Ratio Analys is. ................................ ................................ ................................ 59 7 7 Imagi ne Idea (PVT) LTD. Executive Summary. The Imagine Idea (PVT) LTD was founded by Ekvin Peiris in 2018 and has received no outside investments. First, they start ed launch ing simple mobile applicati on called E - locator. After that they re ceive d many app developing contracts from companies and individual peoples. At this time Imagine Idea (PVT LTD was not able to manage app developing, because they ha d limite d resource. Also, some people did n’t have much money to develo p their own app. As an E ntrepreneur Imagine Idea Company Director Ekvin has identify a new business opportunity. Then he and his company team launch mobile App builder. This product resolve both problem mention above and able to make their own app within 5 minute even don’t know any programming knowledge. Also cost is very low. Within the first year this app building platform was able to build several apps and web sites And, Company was able to make a little profit as the capital inves tment was high and th e competition from the o utside was terrible. 8 8 Imagi ne Idea (PVT) LTD. Business Description / Profile Introduction to the Business: Our business is an IT - based business. Our business is Imagine Idea (PVT) LTD, registered as a private company un der PV00207049 in 2 018. We currently provide services to local and international customers. We do software development for our business based on mobile app development. Our products are Website Builder, Mobile App Builder, E locator G PS & SMS Tracking System, Lanka Jobs (Onl ine recruitment portal), Ecommerce web system, Customer relationship management (CRM), Email Marketing Software. We currently provide services. Our firm employs both full time and part time employees. We always strive to provide qua lity service to our cust omers. Our company has modern machines and talented staff. Our business is based on IT. There is a huge market and demand. We hope to further develop our business. Current Status of the Business. The business s tarted about 8 years ago by creating a s mall mobile Talco app. The app goes to the markets. Then Reinvest the money earned from this app and make a variety of apps and scaling the business. Currently, we are mainly focused on cloud - based software (SASS) co mputer software and t ools in the interna tiona l market. Initially started from home using a single computer, today the business has grown to a private company. Our company currently employs both full time and part - time employees. All of our company's busine ss is done online. We currently provide our s ervices to a number of foreign countries. With a range of new services and projects in the future, we are planning to further expand our services and provide maximum customer service. 0 1 9 9 Imagi ne Idea (PVT) LTD. Brief Historical Informati on about the Business The business was start ed about 8 years ago by creating a small Mobile Talco app. The app successfully market to the people. Then Reinvest the money earned from this app and make the various types of apps and scaling the business. Cur rently we are mainly focused Cloud based soft ware (SASS) computer software and tools aimed at the international market. Initially started from home using a single computer, Today the business has grown to a private company. Our business is an IT - based busi ness. Our business is Imagine Idea (PVT) LTD, registered as a private company under PV00207049 in 2018. Vision of the Business “Empowering the world with technology’’ Mission of the Business “To be innovative and expertise in industry, offering extrao rdinary service and t o achieve success a nd gr owth for our customers.” Values of the Business. 1. Introduce International Standards software and App to market. 2. Build and maintain customer credibility. 3. Deliver a realistic promise. 4. Give them more than they ex pected. 5. Always try to introduc e innovati ons a nd WOW customers 6. Fulfillment of social responsibility. 10 10 Imagi ne Idea (PVT) LTD. Goals of the Business 1. Growing the market share. 2. Increase sales. 3. Increase in profit. 4. Improving employee skills 5. Improving employee welfare. 6. Innovating innova tion. Objectives of the Business 1. Gro wing 25 % the market share. 2. Captured a different type of markets and market areas by introducing software system and new technologies. 3. Maximize 30% Profit by reducing unnecessary costs. 4. To provide quality service to customers. 5. Providing after - sales service s for delight customer. Environmental Analysis Our company used SWOT analysis and PESTEL analysis for environmental analysis. SWOT Analysis. Strength • We have a talented group of employees. • We have advanced technolo gy. • To be able to pro vide the service as fast as the customer needs. 11 11 Imagi ne Idea (PVT) LTD. Weakness • Should be paid a fee higher than the normal employee salary. • Workers Lack of interaction with other workers. • Employees suffer from stress and erectile dysfunction. • Unable to do business in areas whe re there is no elec trici ty or internet. Opportunity • Information Technology to be a fast growing field. • Tax exemption from the government. • Business can be done all over the world as it is done using the internet. Threats • Technology is r apidly evolving and n ew. • Cyber - attacks a nd da ta destruction. • Risk of hackers. PESTEL analysis. A PESTEL analysis is a tool used for an acronym to identify the macro (external) forces facing an organization. An external environmental analysis of the politic al, economic, social, technological, env ironm ental and legal environment affecting businesses is considered here. • Political Tax exemption from the government , as well as Government policies on Information Technology • Economic Our business has a positive im pact on the economy a s it is a business that brings in the foreign exchange for the economic growth of the country. Because of mainly our business and customer base on UK. • Social Using different languages in different countries can be a problem. Also, pe ople with good langua ge skills have to b e hir ed 12 12 Imagi ne Idea (PVT) LTD. • Technological The technology environment is directly impacted by a technology - based business. IT is a fast growing industry and its global impact is directly impacting our business. • Environmental Doing busin ess with technology a nd the internet doe s not harm the environment. It can also help reduce environmental damage and pollution. • Legal Businesses must comply with government regulations. Also, rules and regulations should be followed at some point. Industry Analysis The globa l information techn ology industry is on pace to reach $5.2 trillion in 2020, according to the research consultancy IDC. The enormity of the industry is a function of many of the trends discussed in this report. Economies, jobs, and per sonal lives are becom ing more digital, m ore c onnected, and more automated. Waves of innovation build over time, powering the technology growth engine that appears to be on the cusp of another major step forward. The United States is the largest tech market in the world, repres enting 32% of the t otal, or approximately $1.7 trillion for 2020. In the U.S., as well as in many other countries, the tech sector accounts for a significant portion of economic activity. CompTIA’s Cyberstates ( ht tp://www.cyberstate s.org / ) report reveals that the economic impact of the U.S. tech sector, measured as a percentage of gross domestic product, exceeds that of most other industries, including notable sectors such as retail, construc tion, and transportat ion. Source: https://www.comptia.org/content/research/it - industry - trends - analysis 13 13 Imagi ne Idea (PVT) LTD. Competitor Analysis Our Imagine Idea is an Internet - ba sed service provider. Therefore, we have to p rovide services by competing with the world's largest companies in our IT industry. Our products are Web Builder Platform Development, Mobile App Development, Job Portal Platform Development, E Locator Tracking System Development, E mail Marketing Soft ware Development, E - commerce system, SMS marketing system, Customer Relationship Management (CRM). We were able to identify several leading competing organizations that provide services similar to ours. ➢ Wix.com. The Leader in Website Cre ation Wix.com is a leadi ng cloud - based development platform with millions of users worldwide. We make it easy for everyone to create a beautiful, professional web presence. Established in 2006, by 2019, the company has grown to a whopp ing 150M users in 190 countries around t he wo rld. Their powerful technology allows everyone to access online, attractive, and professional websites. Whether you are a first - time website developer or a long - time expert, they specialize in providing you with the tools and soluti ons needed to creat e a p rofessional website with real creative freedom. 14 14 Imagi ne Idea (PVT) LTD. Their specialty is continually developing new tools. Wix provides a business solution for all, connecting with customers and automating your workflow. With Wix sto res, anyone can sell products and make p aymen ts online. Their concurrent services are Wix Logo Maker, Wix SEO Wiz, Wix Video Maker, Wix Blog etc... ➢ Shopify. It is an organization designed to develop e - commerce system. And doing business around the world. M illions of websites h ave been created us ing t he Shopify Platform. This is also a consumer friendly platformer, so anyone who doesn't know any program language can easily create an e - commerce site. Shop at over 1,000,000 businesses worldwide, This Shopify C ompany has been selec ted to start, run, and g row a business. From 2016 to 2018, Shopify's businesses contributed $ 183 billion to economic activity worldwide. This shows the strength of the company. They do business all over the world. ➢ Weebly Weebly was fo unded in 2007 and cur rently employs mill ions of businesses on more than 50 million websites worldwide. Weebly is a website builder that allows anybody to build their own websites quickly and with ease. It is a very popular platform, and has more than 12 mi llion registered user s for one very simp le re ason – Weebly is a free website builder, and it's darn easy to use. The advantage is that it is a consumer - friendly platform that allows anyone who doesn't know any programming language. ➢ Appmaker.lk The company is a Sri Lankan comp any and a subsidiar y of Dialog. The advantage is that it is a consumer - friendly platform that allows anyone who doesn't know any programming language create a mobile android app in a few steps. They are a major threat to our company as they are a subsidiar y of Dialog, which is sp ending heavily on marketing in Sri Lanka. They do business in only Sri Lanka. 15 15 Imagi ne Idea (PVT) LTD. ➢ Ibuy.lk This is an organization designed to develop the E - commerce system. The company is also a subsidiary of Dialog. With the tech nical and financial s upport of Dialog, S ri La nka's premier communications company, these companies have also developed advanced consumer - friendly platforms. This is a company that was founded on time. But it is rapidly becoming popular. Currently, there ar e businesses targetin g Sri Lanka. E - comm erce websites created through this platform can receive online payments through Pay Here, one of Sri Lanka's payment gateways. They do business in Sri Lanka. Customer Analysis Since our business is an online busine ss, most of our clien ts are overseas. We serv e small and medium sized businesses. We provide services to direct customers. So there is no intermediate cost. Most of our customers are in developed countries, so their purchasing power is high. Therefore, we are able to provide o ur services at very good prices. We provide services to small and medium scale businesses, as well as to personal needs. We identify the customer need and provide the service. The service is done according to his needs, his ability to spend. Businessmen Phone users Other 16 16 Imagi ne Idea (PVT) LTD. Product / S ervice of the Busin ess. I. Website Builder. II. Ecommerce web system. III. Mobile App Builder. IV. Customer relationship management (CRM). V. Email Marketing Software. VI. E locator GPS & SMS Tracking System. VII. Lanka Jobs (Online recruitment portal Strategies for the Business ❖ Growth Strategy o f New Products or Features Introduce new features to software’s before other competitors do it and try to increase our market share. ❖ Finding New Markets and Introduce new products discov er through marketing research and introduced new s oftware’s and IT ba sed s ervices for small markets. ❖ Acquisition Strategy to Gain Competitive Advantage. If we detect, some individual people or small company have good quality software’s or app. we buy it f rom them and expand o ur market share. ❖ Flexible Pr ice Strategy if mar ket w as more saturated, We always try to keep price law, as a solution we are get monthly subscription, instead pay full amount of software’s. ❖ Price - Skimming Strategy Sometime if we hav e most demanding softw are’s or app and nobody enter to market yet. We charg e Premier Price and maximize 17 17 Imagi ne Idea (PVT) LTD. Achievements and Future Planning ❖ Instead, provide software’s solution to growing other company's we involve to directly to run business by our self some selected market. ❖ Built a talented marketing team to promote our soft ware and other services. ❖ Increase Market share up to 10% by 2022. Location of Business Business Address: No 74/2 s't Anthonys road, Kadalana, Moratuwa 18 18 Imagi ne Idea (PVT) LTD. Legal Structure of Business Initially e stablished as a sole propriet orship, after that Imagi ne Idea (PVT) LTD was registered as a Private Limited company in 2018 under the number PV00207049. Imagine Idea (PVT) LTD has three major shareholders. Shareholders’ Information Management Team S hareholder Name Share v alue Ekvin Peiris 55% Rojit h Peiris 30% Rohin i Wic kramarachchi 15% Margining Director. 55% Director. 30% Director. 15%