Steps to Starting a Successful Business

This document outlines the essential stages of launching a new business venture. It covers key aspects such as conducting market research, securing funding through rentals or hiring staff, establishing legal frameworks, and preparing a business plan for investor review. The text emphasizes strategic planning and execution to achieve entrepreneurial success.

Running head: INNOVATION AND ENTREPRENEURSHIP
Innovation and Entrepreneurship
Name of the Student
Name of the University
Authors Note
Course ID

1INNOVATION AND ENTREPRENEURSHIP
Table of Contents
Business Description..................................................................................................................4
Company overview:...................................................................................................................4
Product and Service:..................................................................................................................4
Value Proposition:......................................................................................................................4
Location:....................................................................................................................................5
Industry and Competitor Analysis:............................................................................................5
Competitor analysis:...................................................................................................................6
Marketing:..................................................................................................................................6
Target market:............................................................................................................................6
Market Size:...............................................................................................................................7
Marketing Strategy:....................................................................................................................7
Pricing:.......................................................................................................................................8
Marketing Communications:......................................................................................................9
Management...............................................................................................................................9
Legal Structure:........................................................................................................................10
Financial Forecast....................................................................................................................10
Resources Required:.................................................................................................................10
Income Statement:....................................................................................................................12
Cash Flow Statement:..............................................................................................................12
Break-Even Analysis:...............................................................................................................13

2INNOVATION AND ENTREPRENEURSHIP
Balance Sheet:..........................................................................................................................14
Risks:........................................................................................................................................15
Risk Identified..........................................................................................................................15
Risk management methods:.....................................................................................................16
Milestones:...............................................................................................................................16
Reference List:.........................................................................................................................17

3INNOVATION AND ENTREPRENEURSHIP
Executive Summary:
The current business plan is based on the business idea of launching a mobile repairing
service. The current business plan will be providing a detailed business description of the
products and services along with the locations. Additionally, the market and the competition
will be considered with target market for marketing its services will be also be provided in
this business plan. This business plan will be considering the marketing strategy, pricing and
market communication strategy for advertisement and sales promotions of the product. The
financial segment of the business will be considering the resources required, with set up cost,
financial forecast and breakeven analysis. The business plan will be additionally providing
risk involved in business with risk management techniques as well.

4INNOVATION AND ENTREPRENEURSHIP
Business Description
Company overview:
Considering the growth of the wireless communication industry and based on the
success the owners have come up with the idea of launching the business of mobile repair
service in order to expand the business operations and establish a niche market for the mobile
repair service.
Product and Service:
Cell phone is considered to be ubiquitous however, they are not resistant to damage.
Since the cell phone breaks, there is a need for cellular phone repair service (McKeever
2016). Marble Cellular Service is to provide its customers with the cell phone repair service
of highest quality. The owners of the business places emphasis on the personalized service by
rendering door-to-door service for repairs of the mobile phone. Marble Cellular Service will
be offering convenience and rapid service to its customers since the business will employing
technological expertise in helping its customers in sorting out the defects contained in the
device. The range of mobile phone repair service that will be offered by the Marble Cellular
Phones includes the following;
a) GSM Cellular Phones: Alcatel, Ericsson, Motorola, Samsung, Siemens, LG
Electronics and other smart phone devices.
b) Fixed Wireless Phones
c) Cellular Phone Accessories: Antennas, batteries, Belt Clips, Cables, faceplates and
modems.

5INNOVATION AND ENTREPRENEURSHIP
Value Proposition:
The staff of the business will be emplacing on strong vendor relationships with the
customers and will be able to meet the demand of the customers for fixing the device in
cellular phone technology (Schaper et al. 2014). The staff believe that is it important to
remain an energetic member of the community and to impact on the lives of the customers in
more ways instead of deriving profit from them. Marble Cellular Service repair centres will
rise to the occasion to meet the growing demand of the customers for cell phone repairs.
Location:
The business will be located in the urban streets of Melbourne which will be having
greater access to the residential populations. The location of the business will be serving as
the competitive environment since the business will be exposed to the large number
populations and this will enable the staff of the business to provide timely service of mobile
repairs with higher customer satisfactions.
Industry and Competitor Analysis:
The mobile phone repair industry has been steadily increasing over the period of last
five years. An increase of 3 percent yearly growth ranging from the period of 2011 to 2016
has bought forward a total revenue of around $4 billion (Thomas et al. 2014). As long as the
smart phones continues to play an important role in the lives of the consumers resulting in a
promising outlook for the immediate future there shall also be the market for the reliable cell
phone repair services. The mobile repair industry has been exploding at a faster rate over the
period of last six years because of the several factors. There is also a growing popularity of
smartphones that are more exposed to breakage and will more likely needing repairs that has
ultimately contributed to the advancement of the cell phone repair industry (Ward 2016).
Additionally, the smart phone are generally expensive in comparison to the earlier mobile

6INNOVATION AND ENTREPRENEURSHIP
phone models that have driven consumers to repair shops instead of replacing them; however
as the industry reaches the market saturations and the expenditure of replacement has turned
out to be more feasible.
Competitor analysis:
The key to the consumer decision is based on the service of the repairer and the
satisfaction derived from the cell phone after the repair. Considering the competitive business
environment there are other smart phone repairers that provide similar service however
Marble Cellular Phone Service partnership with numerous suppliers of the accessories that
are engaged in the mobile phone repair business is less expensive (Baker 2014). It is yet
essential for the service staff to state the salient feature and selling points favouring the
business.
Customers, particularly located in the Western business culture takes in the account
the speed of service being the key reason of taking the service of the technological expert.
Customers generally resent the delays and does not prefer waiting for service (Solomon
2014). In Australia speed of service does not anymore distinguishes an enterprise that provide
superior value. Customers are usually not excited if they receive better mobile service
however they are greatly dissatisfied if they not get the service. Henceforth, Marble Cellular
Service will offer required framework to cope with such kind of demands by cutting down
the waiting time for the mobile phone repair service.
Marketing:
Target market:
The market for the Marble Cellular Service and their accessories is considered to be very
fragmented and competitive. Among these there are some of the large local firms that provide
service to the entire city of the Melbourne and its surrounding (Perreault et al. 2013). Marble

7INNOVATION AND ENTREPRENEURSHIP
Cellular Service present niche in its location, variety of products and expertise in serving the
public will assist in meeting the projected the sales. The company will be operating under the
niche market locations and has the potential of serving the public that will assure the
projected sales. The company anticipates to undertake complete advantage of the trends that
is described in the market analysis above and would make an attempt to penetrate in the
market of gadgets especially with the working people by making the use of advertisements
and demonstrations (Leonidou et al. 2013). The target market strategy of the Marble Cellular
Phones;
a. Each individual will be the potential customer and all the potential market of the
business will gain growth
b. Marketing to one segment of the population will result in the expansion of the overall
market growth.
c. Students
d. General public
e. Service organizations and firms that requires to be in regular communication with
their employees.
f. Professionals
Market Size:
Cell phone repair services market makes up around $4 billion industry. They also
complement a steady smartphone sales market which is encouraged by constant of the device.
Additionally, a large number of consumer are integrating their cell phone device in their daily
life. Such trend of dependence transforms into strong potential for phone-n-fix franchise
since they provide a quick and cost effective means to keep their device intact (Armstrong et
al. 2015). Reasonable rate and a quick service turnaround together with the knowledgeable
team and quality parts makes a stand out repair providing in this competitive market.

8INNOVATION AND ENTREPRENEURSHIP
Marketing Strategy:
Short term strategy of marketing will be those that will be bringing the business
temporary boost in the traffic (Chatterji, Glaeser and Kerr 2014). Even though such kind of
techniques is considered to be very important for the overall plan of the Marble Cellular
Service, they are only regarded as the provisional source of traffic and cannot be entirely
relied upon. The short term marketing strategy of Marble Cellular Service includes the
following;
a. Purchasing advertisements
b. Internet search engines
c. Bulletin boards
Long term marketing strategies on the other hand for Marble Cellular Service is
concerned with brining the stable stream of targeted traffic over the time. These kind of
strategies will continue to generate outcomes for a longer period of time. The long term
marketing strategies of Marble Cellular Service comprises of the following;
a. Opt-in list
b. Door-to-door service
c. Calling and hire service
By creating a balanced marketing strategies in terms of both short term and long term
strategy would enable Marble Cellular Service to drive a steady stream of targeted customers
for its business. The short term marketing strategy will emphasis on the sales promotion,
niche positioning in the market and customer service with loyalty and retention in sales
(Cieślik 2017).

9INNOVATION AND ENTREPRENEURSHIP
Pricing:
Marble Cellular Service will be implementing cost effective and fixed pricing strategy
to expand their business. Marble Cellular Service will be having a range of services in the
areas of mobile accessories for more than 20 brands and other unbranded mobile repair
services as well. In other words, Marble Cellular Service pricing strategies will be focussing
on the other products which is listed below;
High margins: High margin pricing will be set for the cases, headsets repair (margins: 60-
90%)
Low Margins: Earphones, screen guard services, key pad services (margins: 30-60%)
Marble Cellular Service anticipates to charge an average price for a unit of $50 of mobile
service.
Marketing Communications:
Measurement and evaluation is considered to be critical considerations for Marble
Cellular Service in promoting effective personal relationships with the customers. The
business will be emphasising on the implementing media monitoring that will assist the
business in getting ahead of the negative messaging and would be able exert greater amount
of influence over the business cycle (Colombelli, Krafft and Vivarelli 2016). All the business
owners would like to generate buzz regarding their products and services. Therefore, Marble
Cellular Service will be making use of the word to mouth as the best source of promotion for
the cell phone repair. Additionally, for the mobile phone repair business word to mount is
considered as the critical considerations in the marketing mix. The procedure of
advertisement commences from the development of communications vehicles and
mechanism that would invite discussion.

10INNOVATION AND ENTREPRENEURSHIP
Management
The business is planning to employ around 5 employees together with the IT
professionals. The management of the Marble Cellular Service will be having executives,
suppliers, administrative personnel and financial executives to look after the affairs of the
business. The IT professional teams will be responsible for significantly enhancing the
Marble Cellular Service online web presence through the help of the optimisation of the
search engine and paid digital marketing. Marble Cellular Service marketing and executive
team will be responsible for monitoring the needs and preferences of the customers and
activities of competitor. The management team will be communicating the strategies and will
keep informing the owners regarding the potential competitive differentiators for Marble
Cellular Service.
Legal Structure:
A business legal structure is considered to be an important component of the business.
Marble Cellular Service will be a partnership form of business. The reason for choosing the
business is that there are very few restrictions to the setting of the business with another
person in partnerships and numerous definite advantage (Galindo and Méndez 2014). By
pooling resources together, the partners of the business will be having more amount of
capital. The partners will be introducing numerous skills to the business. The liability of the
owners will be separate and will be distinct from each other both from its directors. The
liability of the shareholders is restricted to the sum paid or unpaid on the amount of capital
contributed by each of the partner.

11INNOVATION AND ENTREPRENEURSHIP
Financial Forecast
Resources Required:
Considering the resources, the business partners will be contributing a sum of $8000 each
from their respective savings account and would take a loan of $25,000 to carry out the
administrative operations. The total amount of resources that is needed to commence this
service is $50,000.
Set Up Cost:
Start Up Expenses
Start-up Expenses
Fixed Costs Particulars Amount ($)
Administrative Expenses $6,500
Device Cost $12,500
License cost $2,500
Office rent $7,500
Communication Expenses $1,450
Wages and salary for three month $3,000
Staff training cost $1,750
Marketing and sales cost $1,250
Office equipment $4,750
Insurance $2,000
Repairs and Maintenance $3,000
Working capital $25,000
Total Fixed Costs $71,200
Average Monthly Costs
Rent $542
Interest on loan 8% $208
Postage & Telephone $396
Repairs and Maintenance $250
Taxes $839
Salaries / Wages $1,042
Total Average Monthly Costs $3,276
x Number of Months: 12
Total Monthly Costs $39,315
Total Startup Expenses $1,10,515

12INNOVATION AND ENTREPRENEURSHIP
Start-up Assets
Sources of funds
Owners Fund $25,000
Total Owner Funding $25,000
Loans
Bank Loan $25,000
Other
Total Loans $25,000
Total Start up Funds $50,000
Assets
Computers 5000
Furniture $12,000
Vehicles $15,000
Equipments $7,500
Total Fixed Assets $39,500
Total Start-up Assets $89,500
Income Statement:
(4) PROFIT AND LOSS FORECAST
Preop
Year 0 1 2 3
Revenue 0 75,000 93,750 1,21,875
Cost of sales 0 15,000 18,750 21,563
Gross profit 0 60,000 75,000 1,00,313
Gross Margin 51,515 62,884 77,968
Expenses/overheads
Leased Premises Rent 1,500 1,500 1,500
Wages 12,000 14,400 18,000
Administrative Expenses 550 660 825
Communication Expenses 2,500 3,000 3,750
Marketing Expenses 1,450 1,740 2,175
Rates 1,750 2,100 2,625
Insurance 900 1,080 1,350
Other general expenses 1,000 1,200 1,500
Interest 875 1,050 1,313
Market survey 2,000 2,000 2,000
Prelim expenses 1,250 1,500 1,875

13INNOVATION AND ENTREPRENEURSHIP
Lease payments 675 675 675
Total expenses/overheads 26,450 30,905 37,588
Profit before tax 33,550 44,095 62,725
Tax @ 30% 10,065 13,229 18,818
Profit after tax 23,485 30,867 43,908
Transfer to reserves 33,550 44,095 62,725
Cash Flow Statement:
(2) CASHFLOW FORECAST
Preop
Year 0 1 2 3
CASH INFLOWS
Cash from Sales 75,000 93,750 1,21,875
Directors loans 25,000 25,000 25,000 25,000
Capital Employed 1,00,000 25,000 27,500 30,250
Other cash inflows
TOTAL CASH INFLOW 1,25,000 1,25,000 1,46,250 1,77,125
CASH OUTFLOWS
Payments for materials 15,000 18,750 21,563
operating expenses ( ) 0
Premises (rent, rates) 0 1,500 1,500 1,500
Wages and salaries 0 12,000 14,400 18,000
General expenses 0 550 660 825
Interest and bank charges payable 0 675 675 675
Lease payments 0 675 675 675
Corporation Tax 10,065 13,229 18,818
Market survey costs 0 1,250 1,500 1,875
Other preliminary expenses 0 550 660 825
capital expenditure
Plant and other capital expenditure 0 39,500 39,500 39,500
financing repayments
Loan repayments 2,000 2,000
TOTAL CASH OUTFLOWS 0 81,765 93,549 1,06,255
Cash flow summary
NET CASHFLOW FOR PERIOD 1,25,000 43,235 52,702 70,870

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OPENING CASH BALANCE 0 1,25,000 1,68,235 2,20,937
CLOSING CASH BALANCE 1,25,000 1,68,235 2,20,937 2,91,807
Break-Even Analysis:
Revenue
Contributio
n
Fixed
Cost Profit
18988.5 9494.25 18988.5 -9494.25
37977 18988.5 18988.5 0
47471.25 23735.625 18988.5
4747.12
5
56965.5 28482.75 18988.5 9494.25
10000 20000 30000 40000 50000 60000
-15000
-10000
-5000
0
5000
10000
15000
20000
25000
30000
35000
-9494.25
0
4747.125
9494.25
18988.5 18988.5 18988.5 18988.5
9494.25
18988.5
23735.625
28482.75
Contribution
Fixed Cost
Profit
Figure 1: Break-Even Analysis
(Source: As Created by Author)
Balance Sheet:
Balance Sheet
Assets FY-1 FY-2 FY-3
Current Assets
Cash $49,025 $58,475 $69,405

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Accounts receivable $75,000 $93,750 $1,21,875
Total current assets $1,24,025 $1,52,225 $1,91,280
Fixed (Long-Term) Assets
Computers 5,000 5,000 5,000
Vehicles $15,000 $15,000 $15,000
Furniture $12,000 $12,000 $12,000
Equipment $7,500 $7,500 $7,500
(Less accumulated depreciation) $6,700 $5,800 $5,080
Total fixed assets $32,800 $28,700 $29,420
Total Assets $1,56,825 $1,80,925 $2,20,700
Liabilities and Owner's Equity
Current Liabilities
Accrued Rent $1,500 $1,500 $1,500
Bank Charges Payable $675 $675 $675
Income taxes payable $10,065 $13,229 $18,818
Accrued salaries and wages $12,000 $14,400 $18,000
General Expenses $550 $660 $825
Current portion of long-term debt $25,000 $23,000 $21,000
Total current liabilities $49,790 $53,464 $60,818
Long-Term Liabilities
Long-term debt $25,000 $23,000 $21,000
Less: Loan Repayment $2,000 $2,000
Total long-term liabilities $25,000 $25,000 $23,000
Owner's Equity
Owner's investment $25,000 $27,500 $30,250
Net Profits $23,485 $30,867 $43,908
Reserve and Surplus $33,550 $44,095 $62,725
Total owner's equity $82,035 $1,02,462 $1,36,883
Total Liabilities and Owner's Equity $1,56,825 $1,80,925 $2,20,700
Risks:
Risk Identified
Market fluctuations:
Mobile phone repair market fluctuations might result in shift in demand of the end
customers that might pose the risk for the business. In spite of the fact that the company

16INNOVATION AND ENTREPRENEURSHIP
monitors the changes in the market conditions it becomes difficult to entirely avoid the
impact of the market fluctuations because of the changes in the demand for the end products.
Competitions:
The industry of the mobile phone service is considered to be extremely competitive
and the company is exposed to the fierce competition from the rival companies that are
around the areas such as product performance, pricing and quality (Drucker 2014). As a result
of this, the competitive environment surrounding the group might additionally intensify the
competition. In addition to this, fierce market competition is subjected to sharp downturn
pressure on the prices that might ultimately result in declining profitability.
Risk management methods:
To combat the risk Marble Cellular Service will be implementing business continuity
plan. The plan will provide the business step by step long term situations. The business will
be creating standard operating procedures for completing the services (Galindo and Méndez
2014). By implementing the continuity will help Marble Cellular Service in continuity of
operations. Mitigated risk would result in better cash flow and greater stability. Therefore,
greater amount of stability will represent the company to last in future with better cash flow
leading to a longevity of the business.
Milestones:
The milestone table that is stated below will be reflecting the working plan for the
formation of the new organization along with the legal negotiations, hiring of the personnel,
rental of the facility, creation of inventory, commencement of the marketing and beginning of
the physical operations. To execute the chores, the owners of the business will make sure
everything is in place to make sure smooth start of sales and success of the organization.

17INNOVATION AND ENTREPRENEURSHIP
Milestones
Commencement of Operations
Septembe
r
Octobe
r
Novembe
r
Decembe
r
Start of Marketing
Preparation of Website
Conclusion of Rentals
Hiring of Staff
Structuring Legal Matters
Preview of Business Plan by
Investors

18INNOVATION AND ENTREPRENEURSHIP
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