Business Plan for First Shoes: Online Trainer Shoe Delivery Company

This business plan report covers all aspects of the proposed online trainer shoe delivery company, including projected financial statements, market analysis, and funding sources. The report includes a breakdown of start-up costs, projected profit and loss statements, and a breakeven analysis. The company targets both business-to-business and business-to-consumer customers, with a range of trainer shoes available through their online store. Competitors include major athletic footwear brands, but the company aims to differentiate itself through lower prices and a focus on quality. The report also includes a vision statement for the company and a discussion of the management information systems required to effectively control the business.

BM564 Enterprise and Entrepreneurship
BM564 Enterprise and Entrepreneurship
Business Plan
Executive summary
The business Plan refers to the proposed plan which has been prepared for the
business that has to be started in the near future. In business plan all the details
relating to the business has been involved such as projected financial statement
including balance sheet, income statement, breakeven point analysis and so on. In this
report the business plan is about the First shoes that is an online company engages in
the shoe delivery business. The product that has been offered by the company through
its online mode is the trainer shoes.
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Table of contents
Executive summary................................................................................................................ 2
Table of contents…………………………………………………………………………………………………………………………….3
Introduction............................................................................................................................ 4
Your Proposed Future Business.............................................................................................4
Customers.............................................................................................................................. 5
Competitors............................................................................................................................ 6
Skills analysis......................................................................................................................... 6
Projected 2- year profit and loss account and proposed 2 years cash flow forecasts including
break-even............................................................................................................................. 7
Finding, evaluating and selecting suitable sources of funding to grow the business
opportunity............................................................................................................................. 7
Your plans for obtaining your resources, both tangible and intangible between now and
either 1-2 years ahead........................................................................................................... 8
The type of organisation and the management information systems required to effectively
control the business...............................................................................................................9
Vision for your Business Idea.................................................................................................9
Conclusion............................................................................................................................. 9
References........................................................................................................................... 10
Appendices.......................................................................................................................... 10
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Introduction
The purpose of the report is to ensure that the business that has to be started in the near future
could be beneficial in all the aspect or not. The budget figures are being analyzed that are
being part of the income statement and the Balance sheet of the First shoes. Not only
expected profits being calculated in the report but also breakeven point analysis has been
carried out so that actual units of the shoes that could be sold by the first shoes from their
online store in order to generate profit could be checked accordingly (GALLO, 2018).
Your Proposed Future Business
The product and services that are being offered in the segment is the trainer shoes through
online medium as there is no physical store of the company to sell their shoes. Since this in an
online business and on the basis of research that has been conducted shoes that this market
has been increasing with the rapid pace and it could be reach by more than $500 billion by
2027 considering the present development that has been taken in the shoes industry. With the
rapid increase it is expected that the buyers would continuously show their interest in the
footwear products. Since the business is based on the internet therefor large amount of
audience could get attracted and on the other hand local store has been very limited scope in
order to go for reaching the target audience and higher customer base. The advantage of such
business model is that if the business runs or gains success then the big supplier gets attracted
and provide the contract to the company such as Sainsbury, Tesco or Asda and so on (Haag,
2018).
Customers
The product is being sold to business to business model and business to consumer model too.
Since the first shoes supplies their products and services through online means their fore there
are higher chances that they could attract both the range of customer whether the company or
the end user customer since they are dealing in training shoes therefore they are able to target
both the business model in the short duration of time. The different types of trainers they
offered through their online store could be Canvas Trainers, Fashion Kicks, Runners, Sports
Heritage Trainers, Platforms, Skate Shoes and so on. The USP of this kind of shoes is that
they have the readily market available at all the time and footwear industry has the consistent
growth in the near future. The customer that are being targeted by the business model are
those who are engaged in the sports activity or practice professionally, at the school or
college level that requires the products throughout the year.
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Competitors
The competitors that are being faced by the first shoes in their business could be the Athletic
footwear or Nike who majorly deals in the footwear industry and are the market leaders in the
segment as well. Their market share is around 27% in the footwear industry and they are
regularly penetrating the market with their business model and marketing strategies. The
target customer for the first shoes company could be anyone aged between 10 to 40 years of
age who can’t afford the branded products. Since the product being offered by the First Shoes
at lower price which is their USP as well to maintain and target their new customers. The
industry analysis has been carried out using different marketing models that are being laid
down as under:
Pestle Analysis:
PESTLE analysis is a strategy for determining the effect of external influences on a location,
business, or organization. It enables an individual or organization to understand the "big
picture" of the environment in which they are positioned (Jelčová, 2020).
Political Factor:
This factor supports the business due to increase in foreign trade policy which makes the
entrepreneur to carry out the business in a defined way.
Economic Factor:
Since there is rapid expansion in the developing market therefore there are higher chances for
the First shoes to expand their business at the larger scale.
Social Factor:
This factor relates to the acceptance of goods and services in the market and therefore it is
significantly important to consider the safety of their consumers on priority basis.
Technological Factor:
Since this factor plays the vital role in the success and failure of the footwear industry
because the technology has been changing with the rapid pace and it is important to for the
first shoes to make the product in such a way that it support their business (Jerez, 2021) .
Environmental Factor:
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The product they are making must be in favor of environment and should be ecofriendly so
that less damage to be done to environment as well. It is important for the firms that their
sustainability strategies should be more sophisticated.
Legal Factor:
It orders to carry out business in the healthy scale it is significantly important for First
business to consider all the legal factor regarding the online sales so that business is
conducted after complaining with all the laws and regulation of the US.
Projected 2-year profit and loss account and proposed 2 years’ cash flow forecasts
including break-even
Cash Flow Forecast for the 2 Year ended:
2018 2019
CASH INFLOWS £ £
Investments 20,000
Loans 2,500 10000
Revenue 200000 180,000
Total inflows 222,500 190,000
CASH OUTFLOWS
Marketing 1000 1000
Material 5,500 6,500
Wages 500 500
Other costs 1200 1200
Equipment 2000 2000
Office supplies 1000 1000
Supply Vehicle 10000 10000
Rent 1000 1000
Furniture 1000 1000
Cash in hand 5000 5000
Total outflows 28,200 29,200
NET CASH FLOW 194,300 160,800
Projected Profit and loss statement for the 2 year ended:
2018 2019
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Sales (Revenue) £200,00 £180,00
Less Cost of Sales
Raw Materials 8,000 7,200
Freight 500 250
Total Cost of Sales 8,500 7,450
GROSS PROFIT 11,500 10,550
Less Expenses (Operating
expenses)
Wages 4,000 3,700
Electricity 50 50
Insurance 90 90
Rent 1,500 1,400
Depreciation 1,200 1,100
Office supplies 300 200
Total Operating Expenses 6,870 6,540
Breakeven
NET PROFIT £46,30 £40,10
Finding, evaluating and selecting suitable sources of funding to grow the business
opportunity
In order to start the business, the funds will be arranging from the family members as well.
Since no institution or the company will sanction them loan with filling their proper returns.
Since it is the online business therefore it could be started from the home itself. Initially the
fund is being required to create the stock of trainer shoes and online platform to sell the
product. The initial investment in the business is $20000 and this amount has been obtained
from the family members and repaid once the business stars generating the profits (Košut,
2018).
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Your plans for obtaining your resources, both tangible and intangible between now
and either 1-2 year ahead
The start-up cost that has been engaged in the business is $20000 which are being used to run
the First shoes business at the beginning. The breakdown of such cost is mentioned below:
Star-up resources needed (these
will include operating resources) Costs
Equipment 2000
Office supplies 1000
Stock of Shoes 10000
Rent 1000
Furniture 1000
Cash in hand 5000
Total Cost 20000
The type of organisation and the management information systems required to
effectively control the business
It is important for the business to more focus on the information technology professional as
they are offered their product and services through the use of online portal. Therefore, it is
significantly important for the First shoes to maintain the secrecy and privacy of their portal
as well in an effective and efficient manner.
Vision for your Business Idea
The vision and mission for the First shoes has been mention below:
 To become the most trustworthy and well known online shoe store.
 Increase the revenue once the customer is being satisfied with the product they are
offering to them.
 To expand and work with the big organisations so that they can market many items.
 To convince the client that they are purely work on the quality of the products they
are offerings and not on increasing their sales figures.
 To convince the client that they don’t need to spend much on the branded product as
they could get the good product on the reasonable price as well (Lovchikova and
Lovchikova, 2020).
Conclusion
On the basis of the above report the conclusion that could be drawn that is very important for
an individual to carry out the market survey and research in order to start any business. In this
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report the business plan has been developed covering various aspect such as marketing
strategies that are used in order to check the position of the company and the market. In this
report complete feasibility study regarding the existing market share the First shoes would
generate, their sales volume at the beginning, what should be their strategy initially to cover
up all their operational cost and so on. Not only this the projected statement for the 2-year
period has been prepared in the business plan report so that their expected profitability could
be analysed and decision could be taken accordingly that whether the business is feasible to
start with or not.
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References
GALLO, M.C., 2018. Il Business Plan Process per la fertilizzazione dell'Entrepreneurial
Mindset. Aspetti Teorici e Analisi Empiriche.
Haag, J., 2018. Online Vermarktungsmodelle für Superfoods-Businessplan und Case Study
am Beispiel des Start Ups KARMA foods.
Jelčová, D., 2020. Podnikatelský záměr rozvoje společnosti Pro-staff, sro: Business Plan of
Development Entrepreneuship Pro-staff, Ltd (Doctoral dissertation, Brno University
of Technology).
Jerez, J.T., 2021. Innovative business plan: dez melhores opiniões online review
platform (Doctoral dissertation).
Košut, M., 2018. Podnikatelský plán pro rozvoj malé společnosti: Business Plan for
Development of a Small Company (Doctoral dissertation, Brno University of
Technology).
Lovchikova, S.A. and Lovchikova, E.I., 2020. BUISINESS PLAN AS A TOOL FOR
ACHIEVING BUSINESS DEVELOPMENT GOALS. In Наука без границ и
языковых барьеров (pp. 99-104).
Maharani, R., 2018. BUSINESS PLAN MIKHADA (Doctoral dissertation, Universitas
Tarumanagara).
Natthaphon Kitti Senachai, 2020. Business plan Urine human papillomavirus (HPV) infection
test kit = BUSINESS PLAN FOR URINE HPV DETECTION KIT.
Pacheco Quesada, C.Y. and Toyofuku Hoshi, A., 2021. Revisión del business plan:" Land use
plan and the generation of non-aeronautical Revenues-Jorge Chávez International
Airport".
Sochor, O., 2019. Podnikatelský záměr na rekonstrukci a rozšíření fitcentra Trinity o sekci
pouze pro ženy: Business Plan for Reconstructing Fitcenter Trinity and Build the
Section Reserved for Women (Doctoral dissertation, Brno University of
Technology).
Zerbato, M., 2018. Pianificazione e sostenibilità: dal business plan al bilancio integrato.
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Appendices
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