Enterprise and Entrepreneurship: Business Plan for UV Towel Dryer

This report focuses on a business plan for UV towel dryer, covering proposed future business, target customers, competitors, skills analysis, plans for obtaining resources, and vision related to such business idea.

Enterprise and
Entrepreneurship

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Future Business Purpose.............................................................................................................3
Customers....................................................................................................................................3
Competitors.................................................................................................................................4
Skills analysis..............................................................................................................................4
2 year profit and loss account and proposed 2 years cash flow forecasts including break
.....................................................................................................................................................5
Even.............................................................................................................................................5
Sources of funds to grow a business...........................................................................................6
Plans for obtaining resources, both tangible and intangible between now and either 1-2 year
ahead. This should include a breakdown of your start-up costs................................................7
Type of management information system that is require in business.........................................7
Vision of Business Idea...............................................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Enterprise refer to identify various opportunities for organisation that assist to bring
competitive benefits in workplace in order to gaining profit. Whereas, entrepreneur is a person
who take initiate for staring a business(Carbonara, Tran and Santarelli, 2020). This report is
based on business plan that will focus UV towel dryer, it refers to device that can be use
providing hot air directly that maintain a freshness and temperature for easy drying. This report
will cover proposed future business, target customer and competitors of product, skill analysis,
plans for obtaining resources, and vision related to such business idea.
MAIN BODY
Future Business Purpose
 Product: The main purpose of business is to produce ultra violet towel dryer in the
market. It can bring through distinct feature that, this can maintain as freshness with an
enormous hours and also handle temperature easily that is helpful in easy drying.
 Innovation: It is an innovative product just because it provide convenience to users as
this can easily dry towel and this is helpful for person to protect themselves with bacteria.
It can generate hygiene that provide security and safety to potential clients.
 Intellectual property rights: This consist patent as a IPR, because this can come up with
innovation that is highly useful for its customers. So, patent is helpful for protecting such
innovation. Basically, this refers an exclusive rights that is only protect some innovation.
Like any product that can arise with new development then this can use patent as IPR.
Customers
 Target audience: It refers to that person who can generate profit in organisation.
Business can choose B2C as their targeted clients, because it is easy to access and helpful
in maintaining strong customer relationship(Coad and Storey, 2021). It focus on middle
to high class people which are comes under in age of 22-25.
 End user: It drive that person who are actually use item. So for this UV towel drying its
customer consider as its end user. Because at last they are those individual who can
consumed such product.
 Buyer of product: The actual purchaser of item is wholesaler, retailer, distributors and
sales person who can buy and sale such specific product in marketplace.

 USP: This is the towel dryer that helps to protect with infections.
 Customer need that meets with item: At the time of innovation company can focus on
various prospect that related to customer satisfaction (Dal Mas and et.al., 2021). As per
this respective item customer mainly focus on convenience, quality and price, because
these are the basic needs that can be satisfied or dissatisfied customers and also helpful in
increse their number of purchasing. Thus, this is a basic target market that helps to
identify customer demand and after that meet with their needs. This is helpful to enhance
business position in market as it comes up with new innovation that can attract more
audience.
Competitors
The major rivalries of such item are as Clotheslines, it is a kind of rope, cord that can be
stretched in indoors or outdoors. This can be used for dry apparel in warm as well as dry
atmosphere. It consist their market share growth with USD 33 million. And other one is LG, it is
the most renowned company who can deals in various electronic devices such as television,
microwave, refrigerator etc. It also deals in clothes dryer and consist market share with 11% .
The ultraviolet towel dryer is most exclusive product rather than other. It is because first and
foremost it derive convenience that highly want by customer in this current scenario. Customer
usually avoid to identify the place where they dry the clothes. They just attract on such item that
feel them comfort, durability and easiness to use. So, this respective item are come up with these
such innovation that is helpful for grabbing customer attention.
Skills analysis
A business plan based up on some certified skills which is extremely acquire for
achieving desired target that derive directly to future success (Le Dinh, Vu and Ayayi, 2018).
So the basic skills that must be needed are sales and marketing , managing financial resources
along with production because this is the key element that can enhance future success. But the
major skills that a entrepreneur is require at the time of innovation is as follows:
Motivation for doing something great: It is essential skills for individuals as it helps toallocate
efforts and create some ideas for implementation. This can bring new solution for future success
and customer satisfaction.

Creative ideas: It is very important because with this no idea can be generate or execute with full
effectiveness(Lin, 2019). It is unique path that assist to improve organisation quality and put
some distinct invention to implement action.
Selling vision: It comprise vital energy for entrepreneur to generate some clear and effective that
is highly necessary for adapting a road to success.
2 year profit and loss account and proposed 2 years cash flow forecasts including break
Even
Forecasted Profits and loss account for UV Towel Dryer for 2 years.
Profit and loss account
Particulars Year 1 Year 2
Sales 2500000 3500000
Less: cost of goods sold 400000 500000
Gross Profit 2100000 3000000
Less: Expenses
Administration expenses 500000 550000
Selling and distribution expenses 600000 600000
Fixed Expenses 750000 750000
Operating income 250000 1100000
Add: Indirect income 450000 200000
Net Profit 700000 1300000
Forecasted Cash flow statement for UV Towel Dryer for 2 years.
Cash flow statement
Particulars Year 1 Year 2
Cash received from sales 1500000 2000000

Less: payments
Payment to creditors 200000 250000
Rent 15000 15000
Purchases 150000 200000
Net cash after payments 1135000 1535000
Add: receipts
Received from debtors 230000 340000
Commission received 10000 18000
Net cash 1375000 1893000
Opening cash balance 1500000 2875000
Closing cash balance 2875000 4768000
Selling price per unit = $ 50
Variable cost per unit = Total variable cost / Number of units
Year 1
= 500000 + 600000 = 1100000
1100000 / 50000 = 22
Year 2
= 550000 + 600000 = 1150000
1150000 / 70000 = 16.42
Break Even point = Fixed Expenses / Sales - Variable cost
Year 1
= 750000 / 50 – 22 = 750000 / 28 = $ 26785
Year 2
= 750000 / 50 – 16.42 = 750000 / 33.58 = $ 22334
It is important for the firm to earn $ 26785 in year 1 and $ 22334 in year 2 to cover its
expenses.

Sources of funds to grow a business
There are various resources that is helpful for financing the organisation. Some of them are
discuss below:
 Bank: It refer to a financial intermediaries that acquire license to provide loans and
receive deposits in organisation. It consist various services such as currency exchange,
safe deposit box, managing wealth and so on. As bank can do several things but it also
focus on funding in terms of money. This capital is helpful to expand business,
acquisitions, and meet with those expense that is grow.
 Equity finance: It refers to a procedure that can be focus on raising capital by share a
sales. It comprise selling that stake organisation to return cash investment. It is important
for growing businesses as this allow company to reinvest flow of cash and carries no
obligation on repayment. This is helpful for expand operations:
Recommendation: it is suggested that firm should go on with equity finance if it has listed its
stock exchange(Lin, 2018). This will prevent it from making payment of interest that is a
compulsion in bank loan.
Plans for obtaining resources, both tangible and intangible between now and either 1-2
year
ahead. This should include a breakdown of your start-up costs.
Particulars Amount $
Equipment 50000000
Land 70000000
Raw material 300000
Staff hiring 700000
Legal formalities 100000
Total 230000000

Type of management information system that is require in business.
A management information is very much important for any business as this can
monitoring and handle all activities of an enterprise. This can be divided into categories which
are as follows:
 Process Control: This refer to a system that can be used to monitor physical and industrial
process. The interaction control framework accumulates information constantly and
afterwards makes a report on the presentation of the framework. It is one of the main kind
of Management data framework in any assembling organization.
 Management Reporting System: This framework is intended to deliver reports about the
activities and accounts of all degree of the board in an organization. The board report
framework helps the director of the organization to contrast the exhibition of the
organization and the previous year's presentation and with the normal presentation.
Thus, UV towel dryer have to adopt process control as it is important for every company to
monitor all the procedure as it affects whole organisational activities.
Vision of Business Idea
It refers to a key point that derive to strategic plan. It can be short, simple and specific
that is helpful for business from convert a dream to realistic(Poole, 2018). The main vision of
respective business is to become a most successful innovative firm in market. This can only done
through providing a developed products and services to users in market.
CONCLUSION
From the above report it is being analysis that an effective business plan is helpful for
generating business growth. Basically, this can generate strength for company by help of
funding, investors, monitoring goals as this can achieving the progress. It generally make for hit
revenue goals that can aids to bring competitive benefits through following marketing strategies.
This above report is totally focus on making a business plan that relate to some uniqueness and
innovation in product that derive high value to its end user.

REFERENCES
Books and Journals
Carbonara, E., Tran, H.T. and Santarelli, E., 2020. Determinants of novice, portfolio, and serial
entrepreneurship: an occupational choice approach. Small Business Economics. 55(1).
pp.123-151.
Coad, A. and Storey, D.J., 2021. Taking the entrepreneur out of entrepreneurship. International
Journal of Management Reviews.
Dal Mas, F. and et.al., 2021. Translating knowledge in new entrepreneurial ventures: the role of
business plan development. VINE Journal of Information and Knowledge Management
Systems.
Le Dinh, T., Vu, M.C. and Ayayi, A., 2018. Towards a living lab for promoting the digital
entrepreneurship process. International Journal of Entrepreneurship. 22(1). pp.1-17.
Lin, E., 2019. The Business of Bariatrics: Creating a Business Plan.
Lin, O.C.C., 2018. Business Model And Business Plan (pp. 25-32). World Scientific Publishing
Co. Pte. Ltd..
Poole, D.L., 2018. Entrepreneurs, entrepreneurship and SMEs in developing economies: How
subverting terminology sustains flawed policy. World Development Perspectives, 9,
pp.35-42.