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Business Plan


Introductory letter 2 Executive Summary 2 STATEMENT OF OBJECTIVES 2 Mission Statement 2 Driving Force 3 Market Position 3 Streanthes and Weaknesses 3 Streanthes: 3 Weaknesses: 3 Opportunities and threats 3 External Opportunities: 3 External Threats 4 Key Factors For Success 4 Goals and Objectives 4 Strategy 4 BACKGROUND INFORMATION 5 TECHNICAL DESCRIPTION OF SERVICE 5 MARKET DATA 6 Target Market Information 7 Social Environment 7 Demographic 7 Culture 8 Political Environment 9 Economic Environment 9 Competitive Environment 10 Potential Problems 10 Market Data Summary 10 Target Clients 10 Target Market Size 10 MARKET STRATEGY 10 Product 10 Price 11 Place 11 Promotion 11 SELLING TACTICS 12 Cash and Accounts Receivables 12 Peak sales 12 OPERATIONS PLAN 12 FINANCIAL PLAN 13 Necessary Financing 13 Cash Budget 13 Balance Sheet 14 Income Statement 15 Ratio Analysis 16 Depreciation Estimation 17 Fixed Capital Estimation 17 Working Capital Estimation 18 Marketing Estimation 18 Rent Expense Estimation 19 MANAGEMENT PLAN 20 HUMAN RESOURCES PLAN 20 CONCLUSIONS 21

Introductory letter This business plan was created to check the idea about the effectiveness of the creation of the database that will help clients at different shopping centers to find products more quickly. As a result, it saves their time and money.

Executive Summary The company name is Svetlana. The main idea of venture is the creation of the database of products that will help potential clients to find what are necessary for them. The mission of it is to be the best consultants of defining the nonfood product location at the Irkutsk markets, to take care of our clients by saving their time and money, when they do shopping, to offer the best service by using modern computer technology and polite and affable consultants The market of such informational service is quite big and has a lot of opportunities for development. In addition, Svetlana can use the greatest of them because there are no competitors at the market. It offer product that satisfy most of this market demand, as the product contain all main information potential clients want to get to find a product. The sales policy is build on the statement that clients lose nothing, but only save their time and money. After the third year of existence, Svetlana reach the after-tax profit level of $3 510 and will have ROE 35%. The structure of the company is simple as it is quite small, and it is ineffective to use complex system of the distribution of functions. So, as a result of market opportunities, Svetlana have a lot of chances for succeed. STATEMENT OF OBJECTIVES Mission Statement We will be the best consultants of defining the nonfood product location at the Irkutsk markets. We will take care of our clients by saving their time and money, when they do shopping. By using the best computer technology and polite and affable consultants, we will offer the best service our clients can get. We will create a positive working environment for our employees that will promote satisfaction and personal growth.

Driving Force v Our company will offer service that does not exist yet at Irkutsk. It will create very good advantage for our development. v We will place the emphases on the Internet and telephone consultations. v The business will be based on TQM.

Market Position The main our clients are busy people who do not have time to go from shop to shop and want
to find product as quickly as possible. Such people are the most likely users of our database.

Streanthes and Weaknesses Streanthes: v Low-cost equipment v The absence of such database at all local product markets v Skilled labor force v Low operational cost v Use of high technology

Weaknesses: v The creation and updating of database may take a lot of time v Poor marketing materials v High taxes for this kind of service

Opportunities and threats External Opportunities: v Changes in tax structure v The Increase of customer demand level v The government policy for supporting the small business sector

External Threats v Increased competition v Economic downturn or recession v The decrease of customer demand level

Key Factors For Success v The absence of competitors v Broad approach that is provided by the use of Internet and telephone consultations v Polite and affable personal

Goals and Objectives v To create the consulting center that will cover all main nonfood markets In Irkutsk Ш The collection of information and the creation of the consulting center in the ``Irkutskiy`` market Ш The collection of information and the creation of the consulting center in the ``Fortuna`` market Ш The collection of information and the creation of the consulting center in the ``Complex`` market

v To create the centralized informational system Ш The development of database Ш The installation of the server station and user machines v To create web-site Ш The market research of similar sites in Internet Ш The creation of the site structure Ш The creation of the site interface

Strategy As our service is new in the Irkutsk market, our company plans to follow the differentiation strategy. The determining factors will be clients and development. Price will not take the first place. We plan the step by step development at first in the ``Irkutskiy`` market, then in the ``Fortuma`` market, and the last step is ``Complex`` market. In addition, as our service is new, we plan to create loyalty of our customers until direct competitors appear. The scope of development will be the Irkutsk nonfood markets, which sell clothes, shoes, home appliances and other similar things.

BACKGROUND INFORMATION Irkutsk is the biggest city of eastern Siberia. It has a lot of markets, but any of them does not have any consolidating data base that help people to find goods that is necessary. So, this database of products is a result of the demand of many people. Such business is new for the Irkutsk market, so there are no examples of development and existence of similar service, where we can get information and some experience about our venture. The positive side of such situation is that we will be the first, and, as a result we can get the greatest benefits. The negative side is that we will have a lot of unpredictable situations that may create big obstacles for good development. Our informational service center can be classified as informational business, which is in the beginning stage in Russia today. It also creates some global opportunities and threats because during this stage the most prosperous ventures appear, but also many businesses force into insolvency. So, current situation gives our venture a lot of opportunities for good development. TECHNICAL DESCRIPTION OF SERVICE Our product is information. We plan to offer information about non-food products such as clothes,
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