Business Proposal for Kimberley Seats

This business proposal outlines the investment required for starting a business of manufacturing and selling Kimberley seats, which are eco-friendly and affordable. It includes details about the revenue model, marketing strategy, and sustainability of the business. The proposal aims to secure funding for the capital required and showcases the expected sales and returns for the company and investors. The business model involves a bricks-and-clicks approach, with both online and offline sales channels. The target audience includes institutions, homeowners, and state authorities. The revenue sources include shipping fees, seat sales, and advertisements. The marketing strategy includes offering discounts and advertising the advantages of Kimberley seats over other options.

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RUNNING HEAD: BUSINESS PROPOSAL
Business Prospectus
Business Name
Founding Members

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BUSINESS PROPOSAL
EXCUTIVE SUMMARY
With the depleting natural resources different ways have to be implemented in order that
things may be manufacture or produced from materials that can be found without a lot of
challenges and at affordable prices. A lot of seats have been made from timber but timber’s
availability has been dwindling and also it is expensive to purchase.
Reason for proposal
This proposal is written in order to get funding ton the capital required for this business.
The investment required includes shipping fees of the raw materials from India which through
research has proven to be affordable than other places in the world. It is also to show who we
are, what we offer and what we intend to do as we go forth into the coming years. Furthermore,
we present our business model, and show the expected sales and returns for the company and the
investors involved. We will also explain our marketing strategies geared towards getting more
customers in order to bring surplus profit every given year.
Our vision
We intend to be the lading supplier of Kimberley seats in the region at affordable prices.
Our mission
We would like to offer seats that are customer made at good prices.
Investment required
 Price of Kimberley seat: 1.1m @$497 (42kg)
Cost :
 Price of machinery and other equipment $80,000
 Scrap plastic bottles from “recycle in me scrap market place” South India @$0.3/kg
 Cost of scrap per Kimberley seat: $0.3*42kg=$12.6

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BUSINESS PROPOSAL
 Wastage of scrap @ 5% =$0.63
 Direct expenses@ 10% of price= $49.7
 Cost of 1 Kimberley seat=62.93
 Operating profit on 1 seat before indirect expenses= $497-$62.93=$434.07
 Other expenses @ 20% of price = $99.4
 Final profit = $334.67
We are asking for $150000 investment with 20% profit sharing.
We will produce and sell 3,000 seats a year
Profit for the year before tax: 3,000* $334.67=$1,004,010
Profit sharing with investors before tax per year: 200,802.
Investors will get their money back in less than a year.
Business model
We chose a Bricks-and-clicks business model. This is to mean customers can come to the
warehouse and get the seats at their own time or they can order online. There will be production
of seats going on in the warehouse and another side will be set aside to showcase the already
done furniture.
We intend to market ourselves online since this is where a lot of people spend their time
either leisurely or doing their businesses online. Technology has made marketing online
affordable and only at the click of a mouse. We look forward to open a webpage that is going to
have all the information concerning us and all the types and prices of seats we offer.
Unit
sales
Ja
n
Fe
b
Mar
ch
Ap
ril
Ma
y
Ju
ne
Jul
y
Aug
ust
Septem
ber
Octo
ber
Novem
ber
Decem
ber
Each
at
$497
20
0
220 250 250 250 250 250 250 260 270 270 280
Total
mont
hly
$9
9,
40
0
$10
9,
340
$124
, 250
$12
4,
250
$12
4,
250
$12
4,
250
$12
4,
250
$124
, 250
$129,
220
$134,
190
$134,
190
$139,
160

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BUSINESS PROPOSAL
We plan to start making and selling 200 monthly seats as we grow the numbers until 280
seats at the end of the year which would up to 3000 seats a year. We plan to have offers that
would increase our sales within a sort time. We will have offers such as a customer getting a
discount of 10 percent on a purchase above 15 seats.
Profits
Ja
n
Feb Marc
h
Apri
l
May June July Augu
st
Septemb
er
Octob
er
Novemb
er
Decemb
er
66
,
93
4
73,
627.
4
83,
667.
5
83,
667.
5
83,
667.
5
83,
667.
5
83,
667.
5
83,
667.5
87,
014.2
90,
360.9
90,
360.9
93,
707.6
To get such outcomes we intend to use loyalty cards and membership cards. These will
go into rewarding customers who are retailers and buy more often.
We intend to employees’ staff who will mainly major on online advertising and
marketing. Customers who feel are satisfied can be encouraged to take photos of their own
merchandise and post them on their social medias and placing a link leading to our warehouse.
This too will generate more customers.
We are located along the highway which means that transportation is not going to be a
challenge. We will use huge tracks to transport the seats to the customer’s preferred location at a
fee.

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BUSINESS PROPOSAL
Business Name
Founding Members
Date Prepared

6
BUSINESS PROPOSAL
CONTENTS PAGE
Business background………………………………………………………….7
The problem……………………………………………………………………7
The solution…………………………………………………………………….7
Sustainability……………………………………………………………………8
Communication strategy and media plan……………………………………….8
Revenue model………………………………………………………………….10
Marketing strategy………………………………………………………………12
A plan for6, 12, 36 months………………………………………………………14
Tables……………………………………………………………………………16

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BUSINESS PROPOSAL
Business background
Harvest is a standard and registered company that deals in sales of furniture. Recently it
has looked to bring in a new product to their many products and Kimberley seats happens to be
one product they chose. Kimberley seats are ergonomical seats that support the back well and
therefore are a better choice if one has to continue having a healthy body. These kinds of seas are
made from recycled plastics and thus are very durable. They will not require any maintenance
since they come from plastics, its life span is longer than any other material. They are also stylish
and are blend in more beautifully in gardens and along the streets. We also intend to produce few
arm chairs that will only be sold on order. The two of us are co-owners and have experience in
the plastic industry and with the experience we have we believe we shall take this company to
greater heights.
The problem
There has been a shortage of durable affordable seats to be used out in university, college
and high school fields, in recreation facilities, resting seats along the streets and seats to be used
in gardens for a home or during a function like a wedding, celebration or funeral. These are
going to be the primary customers. The wooden seats easily get destroyed by water and therefore
are replaced every single time which tends to be costly.

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BUSINESS PROPOSAL
The solution
Kimberley seats are going to cater for all these loopholes. They are durable, are
affordable and will not require any maintaining fees. They will still be in good condition in
whatever season comes and passes by. They come in different designs and can be used in lots of
places too.
We will use both outbound and inbound sales in our sales model. We are going to depend
on marketing online, online advertisement and marketing our content. We will also use social
medias, face to face advertisement and networking.
Sustainability
A sustainable business is one that has been certified to be friendly to the environment
(Spiliakos, 2018). Kimberley seats are recycled plastics and therefore very eco-friendly. They do
not waste and do not cause any disturbance in the environment. Because of their durability, they
make a long-term financial value. This means a lot of money is saved instead of purchases being
done when a seat gets destroyed.
Communication strategy and media plan
Campaign type Project goals Target
audience
Online ads 5 daily Age 20-35
Public relations
Public
showroom
400 people at the
beginning
State authorities
Institution

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BUSINESS PROPOSAL
authorities
Home owners
Content
marketing
Sponsored
content
5 subscribers
daily
Sellers of tables
and cabinets
Institutions
Social media
Facebook 3 posts daily Institutions
Home owners
Twitter 5 tweets daily Institution
Home owners
Online
Website Post once a
week
Institutions
Home owners
State authorities
Advertising
Online Post daily Young investors
Print At the beginning
and monthly
thereafter
Institutions
Home owners
State institutions
Radio Four times daily Middle class
citizens
Television Twice daily Middle and

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BUSINESS PROPOSAL
upper class
citizens
Web
Per-click ads 20 daily Young business
citizens
Sales
campaigns
Newspapers Twice a week Mature business
people
Showrooms Once a month All groups
The revenue model
Revenue is an amount of money that can be generated from different forms, it can
come as rent, commission, bids, markup, arbitrage etc. (Pahwa, 2017). It comes from businesses
too and can be partially made or made as one whole payment. A revenue model on the other
hand, gives strategies to a business on how to acquire revenues. It includes the value of the
service and product, he techniques on how to generate revenue, the sources of revenue and the
consumers that have been targeted with the product.
Our revenues would come from: shipping fees, selling the seats, advertisements on social
media platforms and on the website. Revenues from the advertisements will come from people
who have related equipment like ours like tables who think there would be a good complement if
theirs would e our website. Furthermore, it will come from those who find that their target

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BUSINESS PROPOSAL
market also visits our social medias and can promote their products for example a school of
furniture may advertise itself.
Table 1
Source Revenue Total
Shipping fees of seats above
10 for a distance of 2km
away from the warehouse
$10 for every one kilometer Depends on the distance
Adverts on Facebook and
website
$30 dollars for every platform
every day
$1800 per month for both
platforms
Selling of the seats Each seat at $497 Depends on the numbers sold
Revenue sources
We plan to start making and selling 200 monthly seats as we grow the numbers until 280
seats at the end of the year which would up to 3000 seats a year. We plan to have offers that
would increase our sales within a short time. We will have offers such as when buys more than
10 seats he gets a percentage discount.
We will also major on profits. Let’s take a look at profits generated in three first months.
Table 2
Selling price Production cost Profit
One seat $497 $162.33 $334. 67
670 seats (first three months $332, 990 $108, 761.1 $224, 229

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BUSINESS PROPOSAL
seats)
Profit overview for three months
We will also make our customers our other performance indicators. After every service
we will ask them questions of how they were served, how they found the prices, what they
thought about the products and where do they think we can improve.
Marketing strategy
A lot of seats used along streets, within institution fields, within gardens and for hire for
weddings and funerals normally range from $200 to $1, 000. The ones which are low priced
normally get destroyed very fast, they do not last for long. Then the high-priced ones become
hard to purchase for so many people. Thus, these Kimberley seats are going to be for those who
do not have much to offer but want good products, it is also for those who can spend a little bit
more money since it cuts in their niches too.
One of the tactics we will use to get to our customers is advertising on budget. For
example, on our advertising posters placed online and also manually, we will have a price a bit
higher than what we are selling, we would then cross that and have another one that we are now
currently using, we would then show the customers that our rises are the best prices. On the same
advert we would show the advantages of our chairs over the other chairs. Such advantages would
include their durability and their designs. The other tactic would be advertisements made online
on discounts, such discounts would include the first ten customers having a discount, and the
customers who buy more than ten seats will also have a great discount. These tactics will draw
the first customers through the discounts, and customers who will keep coming back through the

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BUSINESS PROPOSAL
posters and buying more seats at once. These tactics will work because the prices will be low and
they will see the advantages of the Kimberley seats.
We will expect a 6000 sell in the second year, 9300 in third year, 12,400 in the fourth
year and 15,500 in the fifth year. This would translate to 6, 10, 13, and 16% increase
respectively.
We will market ourselves through fliers because there are people who still are going to be
reached through such manual advertisements, we will also market online. Online marketing is
the kind of marketing that is really picking up right now. Without marketing online then a large
number of people are not going to be reached because of how advanced technology is right now.
We will also have oral communications, these would be done through staff, us and the customers
who would be pleased with our services. We will also market through broadcasting. On the
television and radio. Moreover, we will have showroom days that will be advertised for everyone
for free, these would boost sales especially with big organizations and state government who
would wish to have the seats along public places.
Table 3
Year 3 Year 4 Year 5
Profit $281, 121 $374, 828 $468, 535$
Loss $0 $0 $0
Growth projections 10% 13% 16%
Profit, loss and growth projections
The three competitors are: REPLAS Recycled plastic products and DRAFFIN street,
METAL art furniture- they do all kinds of furniture using recycled plastics, they give the old

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BUSINESS PROPOSAL
tables a comfortable touch, are expensive, they custom design good products and they target high
end people (Replas recycled plastic, n.d.).
The team behind Harvest Kimberley seats is majorly made of half members from the
same family and the rest are close friends. They are mostly people that have worked in the
plastics industries for the past thirty years. They hold degrees in biochemistry and some are
chemical engineers. Some have worked with REPLAS company the longest standing company
that has established itself as a recycling plastic into furniture. This team is capable of taking this
company from a starting up company into a household name. They have the necessary skills;
they are experienced and have gone to school to learn more about plastics. It is not a team that
can fail.
A plan for six months, 12 months and 3 years
Table 4
6 months 1500 745, 500
12 months 3000 1, 491, 000
3 years 9300 4, 622, 100
Business plan
We are asking for $150, 000, we have been pitching our business to friends and the
county authorities but we have not been able to get the full amount required. We have also tried
to ask for loans but we have decided to raise the money in other ways before getting loans. We
are looking for investors who can invest their money with us at least with a stake of 20%. We

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BUSINESS PROPOSAL
would also appreciate an investor who also has a knowledge in plastics and is networked so that
he may help build us the more.
Eighty thousand of the total amounts is going to be used to purchase equipment and get
the supplies we require. Another $162.33 will be used to purchase seats 200 seats for the first
month which amounts to $ 32, 466. Thirty thousand would be used to ship in the raw products
from India.
Graph 1
0.5 1 1.5 2 2.5 3 3.5 4 4.5
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
amount
Funding revenue
In case we will not be able to raise this amount of money then we will not be able to fully
start up this business and therefore we really need to have this as a done deal.
List of tables
Table 1 ……………….9

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BUSINESS PROPOSAL
Table 2………………11
Table 3……………….11
Table 4……………….12
References

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BUSINESS PROPOSAL
Spiliakos, A. (2018). What Does "Sustainability" Mean in Business?. Retrieved from
https://online.hbs.edu/blog/post/what-is-sustainability-in-business
Pahwa, A. (2017). What Is A Revenue Model? 10 Types Of Revenue Models. Retrieved from
https://www.feedough.com/revenue-model/
Replas recycled plastic. Kimberley Seat - Replas Recycled Plastic Furniture Product. Retrieved
from https://www.replas.com.au/products/furniture/kimberley-seat/