Smart Door Business Plan

This project presents a detailed business plan for a Smart Door business venture called ASSA Abloy. It includes market analysis, risk assessment, value proposition, customer relationship management, key resources, cost structure, and revenue streams. The plan also includes a detailed breakdown of pre-launch marketing activities and a backup plan for potential challenges.

Entrepreneurial Development

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Overview of business plan .....................................................................................................3
RISK Analysis ....................................................................................................................10
Back Up plan .......................................................................................................................11
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Establishment of new business venture includes different activities such as planning,
arrangement of resources etc. The procedure of establishment starts with generation of new ideas
related to products or services. Creation of new business venture covers various aspects such as
team, opportunity and resources. It is very much important for an entrepreneur to make an
effective plan as this will assist them in successfully establishing new business. In addition to
this, an individual need to conduct the proper market research as this tacit will help them in
determining whether business will successful or not. An effective plan will aid entrepreneur in
identifying the issues as well as challenges which might running specific business.
The report will include the business proposal which will contain about the detailed
information such as resources, activities etc which are required for establishing Smart door
business. Study will define the business planning procedure which will give clear direction
related to future decisions that will help an organization in accomplishment of desired objectives.
MAIN BODY
Overview of business plan
I and my team members have worked as marketing executive for various organization got
an idea about the needs as demands of customers. In addition to this, We have conducted the
market analysis for ourselves and we have found that residential community which includes
homeowners, businesses, reenters etc. all required security products as well as smart locks.
Considering the requirement of customers in the market they have planned to establish new
business venture.
I and my team members have decided to offer people with the Smart door which consists
of special security system in it. The smart door will consist of special security system as well as
more advance technology which will provide firm an ease in attracting more number of
customers. The special feature of Smart door which will attract customer include unique face
recognition system used to open the door. System can be paired with application on the phone so
that more family members can open the door of house (Jenkins, 2018). I and my team members
considered to be as smart door business an opportunity as there is increase in number of criminal
activities in the country. Therefore, I and my team members perceives that there will high
demands for Smart door. In addition to this, other reason for establishing the smart business door
business is that there is high growth and profit in an industry. In addition to this, there are many

companies in sector which are offering similar products, but the door they are offering does not
have intelligent door lock with a face recognition system. The unique face recognition system
will be help an organization in attracting customer and in successful launch of business. It will
also help an enterprise in gaining competitive advantage in the market. The name we have
decided for our newly established business venture is ASSA Abloy. We have decided this name
for organization as it consist of initial surname of all team members. In addition to the products I
and my team members has planned to offer different services such as on site consultation, repairs
and installation. In addition to this, other products or services which will be offered by ASSA
Abloy will include surveillance system and electronic alarms. Business entity will provide
services related to the electronic access control system (Amankwah-Amoah and Lu, 2018). An
organization will also render services to banks, as bank have locking devices as well as related
hardware which requires maintenance at regular interval of time such as vault doors, safe
deposit boxes etc. Technical team in an organization repairs the door locks by dissembling as
well as examining its malfunction in parts. They also use different tools such as drills , grinders
etc for repairing the door lock. In addition to this, team in ASSA Abloy responds quickly to
emergency call from customers those who have been locked at their home or business
(Carayannis, Dagnino and Faraci, 2018). These are the extra services which is only provided by
ASSA Abloy in an industry. In addition to this, if key is lost or person who face is recognized is
absent at the home or business, then in such situation an organization provides new master key
system.
The licensing procedure which ASSA Abloy is required to undergo includes submitting
of all essential information related to the business, national background check, passing an
examination, and paying a fee to the licensing agency. According to law in UK, It will be
required by organization to keep as well as maintain business records.
The location we have chosen for establishing our company is Central London. Rationale
for choosing the specific location is to provide customers an ease in accessing the products as
well as services offered by firm. In addition to the location we have chosen for establishing our
location is near mall as most of the time during the weekends people prefer to visit malls for
shopping. It would become easier for our company to reach the target audience. The price
which will be charged by customer for smarty door will be 400 £ , this price has been set after
conducting the cost benefit analysis. The price for the services will be 50 £ . At the initial stage

of business launch, an organization will adopt low cost pricing strategy in order to attract
customers and positively influencing them to buy Smart Door .
I and my team members have planned to start the partnership firm. The reason for
choosing to establish partnership is that the risk can be shared. It would be easy for us to manage
business in systematic manner. In addition to this, I also believe that by establishing the
partnership company, needs of the capital for starting and running a business can be easily
fulfilled.
Vision , mission and objective of organization.
The business objective of ASSA Abloy is to earn high profit by successfully launching
Smart door business. Main intention of firm is to deliver good quality of products as well as
services at reasonable costs to customers. Other purpose of an enterprise is to foster growth
within two years. In addition to this, firm intends to increase its sales by thirty percent within six
months. Mission of ASSA Abloy is to support people in increasing the security of their property
as well as business by offering customers with the best quality of Smart door with High security
system with unique feature of face recognition. Vision of ASSA Abloy is to achieve leadership
position in an industry (Huggins,Waite and Munday, 2018.).
Key partners : The key partners will be suppliers, investors, bank, online retailers and landlords
of apartments. These are the stakeholders those who will support business and will help an
organization in accomplishment of desired objectives. Investors and suppliers and online retailers
will play crucial role in supporting an organization in fostering business growth. The business
plan will be presented to the investors in an appropriate format as it will help them in
determining the return they can get by making an investment in specific business. s ASSA Abloy
will enter into a legally valid contract with online retailers and other companies in order to avoid
uncertainties or conflicts (Smith, 2018). Firm will enter into a partnership with bank, as this will
help an organization in sourcing of funds which is required for meeting the business
requirements. In dedication to this, the other reason for forming partnership with bank is that
there are few banks which offers lockers services to customers, ASSA Abloy can get benefit
from such partnership as by offering bank with solutions related to security system an
organization will able to earn extra profit.
ASSA Abloy in order to achieve success will have concentration on developing the
strong relationship with owners of apartments, At initial stage of launch of new business venture,

business owner will have more focus on generating the awareness about the quality, use and
unique features of Smart door. Management in an enterprise will take high initiative for
providing the quick response to customer queries. There will be few employees in an
organization who will be responsible for handling as well as managing the customer queries.
Key activities : The key core business activities which will be performed by ASSA Abloy is
manufacturing of Smart doors (Dey and Steyaert, 2018). In addition to this, other support
activities which will be executed are marketing, selling, human resource management, supply as
well as logistics management. Products as well as services will be manufactured considering the
needs as well as demands of customer in the market. The focus during the time of manufacturing
procedure will be on the quality of products.
Pre-launch marketing will be executed in order to inform people about the launch of new
business as well as product. The main aim of marketing will be to generate brand awareness.
Other purpose of marketing would be to positively influenced people to buy specific product that
is Smart door.
Human resource management activities will include hiring as well as recruitment of
talented and skilled employees. This business activity will concentrate on managing people
within an enterprise. Logistic as well as supply chain is considered to be as important business
activity, as it will help company in making the timely delivery of goods and services.
Financial activity will be mainly concerned with the management of cash flow which is
very much important in order to maintain or improve financial performance of new establish
business venture (Malecki, 2018). The primary focus before launch of new business will be on
the manufacturing as well as marketing activity. As these are the two activities which will help
an enterprise in generation of revenue at the initial stage of launch of new business venture.
Value proposition :In context of ASSA Abloy, an organization will provide high value
proposition by offering premium. Smart door provided by an organization is easy to use as well
as fit. In addition to this, Smart door consist of unique feature that is intelligent door lock with
face recognition system. The product also comprises high security features. In addition to this,
organization will provide the 24/7 hours services to customers. There will be a team of workers
who will help customers in solving their problems. ASSA Abloy, will also provide repair as well
as installation services to clients. After sales services will be provided by firm on customer

demand. An enterprise will provide the online tracking of product delivery status to customers.
People will able to avail tracking services by just visiting the company website.
Customer relationship : Direct marketing is the strategy which will be adopted by ASSA
Abloy for developing the strong relationship with customers. In addition to this, customer centric
approach will be adopted by company for producing goods or services. An organization will
make use of social media platform for gathering the feedback from customers. Marketing
manager in ASSA Abloy, will develop the website for firm from where the people can easily
access the basic information about an enterprise (Outsios and Kittler, 2018.). Clients will be
referred to store for making the purchase of Smart door and customer can contact any time for
scheduling an on site consultancy related to security system. The website developed by market
manager in ASSA Abloy will act as an extended brochure for commercial as well as residential
customers.
Customer segments: The customers to whom ASSA Abloy, will target include both local
consumers and also businesses. Marketing manager in ASSA Abloy, will categorize market into
different segments, as this strategy will help an enterprise in fulfilling the needs as well as
expectation of customers.
The building management team in an enterprise will work for Landlords. This team will
be responsible for rendering management services for building ranging from single families to
big apartments. Role of building management team will be to develop as well as maintain good
relationship with vendors. The other target customer group will be homeowners, a these are the
customers those who seek high security solution for their homes. Apartments renters will help
an organization in increasing the revenue.
Key resources : Main resources which is required for staring new business venture is office
space or infrastructure. The other key resources which will be required for establishing the
Smart door business is capital. Funds required for establishing as well as running business will
be arranged through bank loan (Tesch, 2019). In addition to this, As it is a partnership
organization, each partner will bring with them some amount of money. Each partner will make
investment of 100000£ . An entrepreneur will seek some amount of funding from other financial
institutions. The other types of resources which is required for creating or establishing a Smart
door business includes machineries which will be needed for manufacturing the Smart doors. In
addition to this, Technology will be required for the purpose of managing various activities and

also for communication purpose. Human resources is considered to be as one of the important
resources which will be required for performing different business operations.
Cost structure :The main operating expenses which is associated with establishment of Smart
door business is associated with promotional or marketing activities which includes
advertisement, printing of brochures, organizing of events, website hosting etc. In addition to
this, start up expenditure will include insurance premium which will cover both general liability
for work done and also store. Security deposit for office taken on rent. The other miscellaneous
expenses before launching of business includes licensing fees, stationery, office furniture,
decorations etc.
ASSA Abloy, will make some amounts of financial investment on marketing activities
before launching of business. Pre launch marketing activities will include
Activity Cost/ expenses
Development of website £120.00
Printing of brochure £300.00
Flyers and advertisement £400.00
Other expenses that will be incurred by ASSA Abloy, at intial stage of launch of business
include
Activity Cost/ expenses
Inventory of Smart doors £1,000.00
Cash register system £200.00
cutting machines (3) £5000 each
Improvement of stores £10,000.00
Additional tools such as screw drivers,
hammers, drill machines etc
£500.00
Big machineries for manufacturing of Smart
door
£1,000.00

Door frames £1,200.00
Break even analysis: ASSA Abloy, is expected to reach break even analysis within 7 months of
first year.
Revenue streams: ASSA Abloy, will generate the revenue by selling the Smart doors with
unique security system. In addition to this, an organization is planning to generate revenue by
offering consultancy services related to the security system. ASSA Abloy, will generate revenue
by offering the repair as well as maintenance services to customers. In addition to this, business
entity can generate additional revenue charging extra fees for extra or special services such as
extra key or more advance features in Smart door (Harris, 2018). The Vat and other taxes will
add additional cost to firm. Budgeting is the technique which will be used by ASSA Abloy, for
controlling the expenditure. It is also considered as one of the best technique used for managing
the cash flows.
Channels: at the initial stage of business, ASSA Abloy, is planning to distribute goods or
services directly to customers. As direct distribution stretaergy will assist an enterprise in

developing the strong relationship with customers which is very much essential in context of
business growth. In addition to this, an organization is planning to form strategic partnership
with online retailers, as this strategy will help an organization in distributing goods and services
to wide number of customers. It will also help business entity in increasing sales and
profitability. An organization is planning to collaborate with other firm in same industry, as this
tactic will provide firm an ease in distributing goods or services to customers..
RISK Analysis
The major risk associated with establishment of Smart door business includes
advancement in Technology. Management in ASSA Abloy, will be required to make huge
capital investment on providing training to their engineers in order to help them in keeping
update themselves with the latest trends. The other biggest risk in business is financial risk,

which might occur due to increase in the taxes or price of raw material. Increase in tax or price
of raw materiel can have adverse effect on the profitability of firm. It is required by ASSA
Abloy to adopt flexible pricing policy, as this will aid firm in reducing the adverse effect of
changes on its profitability. In addition to this, an enterprise is required to keep capital reserve as
this tactic will help them in maintaining the financial performance at the time of economic crisis.
The major is which might have significant effect on business is political risk. As due to
unfavorable political condition in the nation , firm might have to face difficulty in delivering the
products or services to customers (Security Risks with Smart Homes and IOT, 2018.).
Collaboration strategy adopted by ASSA Abloy, will an enterprise in coping up with such type
of risk. In addition to this, increase in wareness about the cyber security risk and technological
failure can lead rto the decrease in demands for Smart doors offered by organization.
Back Up plan
At the initial stage of implementation of business plan, the partners has decided to
include regular locking or security system in their back up plan. In addition to this, they have
also decided to provide customers with 24/7 services which people can easily access using
telephone. Partners have also decided to add new security system which can only be opened
through application installed on the registered mobile numbers. They have one more idea which
is also related to the security system in the door. The unique feature which partners have decided
to include in their back up plan is that customer can open the door just by answering the few
questions (Brad, 2018). Business owners have planned to include such automation system which
enables customers to have access to remote control of house fans, lights, garage doors etc.
CONCLUSION
It has been concluded from the above report that an effective planning is very much
important before establishing an business. The other fact which has been found from the study is
that business plan provides the road map which can be beneficial as well as useful in context of
accomplishment of desired goals. It has been concluded from the assignment that business plan
helps in identifying the issues as well as challenges which might occur in establishing as well as
running specific business.

REFERENCES
Books and Journals:
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the Global South: The Case of Ghana, 1957-2010.
Jenkins, A., 2018. Entrepreneurial Learning for Sustainable Futures. In Entrepreneurial Learning
City Regions (pp. 59-74). Springer, Cham.
Usai, A., Scuotto, V., Murray, A., Fiano, F. and Dezi, L., 2018. Do entrepreneurial knowledge
and innovative attitude overcome “imperfections” in the innovation process? Insights from
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Hytti, U., Blackburn, R. and Tegtmeier, S. eds., 2018. The Dynamics of Entrepreneurial
Contexts. Edward Elgar Publishing.
Carayannis, E.G., Dagnino, G.B., Alvarez, S. and Faraci, R. eds., 2018. Entrepreneurial
ecosystems and the diffusion of startups. Edward Elgar Publishing.
Huggins, R., Waite, D. and Munday, M., 2018. New directions in regional innovation policy: a
network model for generating entrepreneurship and economic development. Regional
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Smith, H.L., 2018. Entrepreneurship policies and the development of regional innovation
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Dey, P. and Steyaert, C. eds., 2018. Social Entrepreneurship: An Affirmative Critique. Edward
Elgar Publishing.
Malecki, E.J., 2018. Entrepreneurship and entrepreneurial ecosystems. Geography
Compass, 12(3), p.e12359.
Outsios, G. and Kittler, M., 2018. The mindset of UK environmental entrepreneurs: A habitus
perspective. International Small Business Journal, 36(3), pp.285-306.
Tesch, J.F., 2019. Scenario Planning as a Causal Evaluation Tool for IoT Business Model
Innovation. In Business Model Innovation in the Era of the Internet of Things (pp. 209-
229). Springer, Cham.
Harris, T., 2018. Start-up: a practical guide to starting and running a new business. Springer.

Brad, S., 2018. TRIZ to Support Creation of Innovative Shared Value Business Initiatives.
In Advances and Impacts of the Theory of Inventive Problem Solving (pp. 101-112).
Springer, Cham.
ONLINE:
Security Risks with Smart Homes and IOT. 2018. [Online]. Available through
:<https://www.anchin.com/news/anchin-private-client-center-security-risks-with-smart-
homes-and-iot>.