Nature of Business - Toys Play
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1.0 Nature of Business
Toys Play as an important role in the cognitive, physical, Social and Emotional upbringing of children.
However, most of the toys available in the market made of PVC (Polyvinyl chloride - a polymer of Vinyl
Chloride or other harmful materials, which could affect the health of kids. Thereby, our start-up company,
Natural Toy INC. decide to make toys with natural raw stuff, which will be environment friendly and help in
children's growth rather than plastic or other harmful material. Toys will be less toxic, utilize less energy and
will have minimum environment effects in comparison to ready made PVC toy, which not only safeguard the
future of children but are also environmentally feasible. (Rangaswamy, J., Kumar, T. and Bhalla, K., 2018).
Natural Toy INC. will be manufacturer as well as seller in the toy market. Company will provide toy sand toys
made of bio-based plastic and softwood toys which extract from Wrightia tinctoria (plant found in India).
(Scherer, C., Emberger-Klein, A. and Menrad, K., 2017). Toys of my company will be made with paste of dry
leaves and waste of plants, so parents could be less conscious as toy mad with natural product. Additionally,
toys form our company will be like Kitchen set, set of house cleaning (with step of house clearing), so children
can learn and play both. Product will be cost effective and keep in mind of customer satisfaction. Initially size
will be on small scale, so that we can provide maximum satisfied output to the customer with reasonable profit.
The vision is to be a pioneer in promoting and supporting the use of goods that value and care for the
environment and to raise public consciousness of the importance of health and protection for children and the
earth.
1.1 Business Offering
The overall vision an objective of my business is to improve the quality of toy and keep in mind the health of
children whereas still being ethical and advantageous to the environment and the local community. Range of my
toys include traditional toys of India (Rattle and Dug Dugi, Dolls, Tiger & Goat, puppets) and other kids toys
puzzles, climbing frame, slot cars, playhouses, pocket money toys, kitchen set, bord games, climbing frame and
will be added more as per customer requirement. We will also start after product services in which we can repair
the toy and will also collect throwable toy and recycle them. (Souvik Roy, Indiatimes, 2015) &
(Yell.com,2020). Safety and quality both are main concern for parent in relation of toys from the beginning of
upbring of kids and here, grasping, listening, seeing, feelings are the major activities in their initial months of
baby. Toys are effectively used, felt, put in the mouth or cuddle. Therefor, our company give importance to
safety and quality first. (Yell.com,2020).
1.2 Added value to our potential customers
A bio-based range of plastic sand-toys and softwood toys are market choice. A potential advantage of using
natural materials for such a product is that parents tend to be especially interested in environmentally friendly
goods, particularly if they are in touch with their children (Laroche et al., 2001). Natural Toys Inc. will meet the
requirement of customer, which will satisfy their demand. Moreover, A box that has a cut-out handle, graphic
display of product content, contrast colour blend, condensed product pictures, natural ornament shape, and the
location of information items is placed on the upper side or top of the side of a package are the packaging style
that is most favoured by customers.( Suzianti, A., Amanda, Y. and Arrafah, G., 2019). we will prepare all
packaging according to customer and all product will be available in the market with reasonable price.
1.3 The business is different from other existing ones
Customers enjoy how convenient it is to use service or buy goods of company. In the competitive world of kids
related product, our company will provide door step delivery of toys, we will also arrange free service for guide
children how to use high level toys (For example, gaming board of chess in which a person will visit home as
Toys Play as an important role in the cognitive, physical, Social and Emotional upbringing of children.
However, most of the toys available in the market made of PVC (Polyvinyl chloride - a polymer of Vinyl
Chloride or other harmful materials, which could affect the health of kids. Thereby, our start-up company,
Natural Toy INC. decide to make toys with natural raw stuff, which will be environment friendly and help in
children's growth rather than plastic or other harmful material. Toys will be less toxic, utilize less energy and
will have minimum environment effects in comparison to ready made PVC toy, which not only safeguard the
future of children but are also environmentally feasible. (Rangaswamy, J., Kumar, T. and Bhalla, K., 2018).
Natural Toy INC. will be manufacturer as well as seller in the toy market. Company will provide toy sand toys
made of bio-based plastic and softwood toys which extract from Wrightia tinctoria (plant found in India).
(Scherer, C., Emberger-Klein, A. and Menrad, K., 2017). Toys of my company will be made with paste of dry
leaves and waste of plants, so parents could be less conscious as toy mad with natural product. Additionally,
toys form our company will be like Kitchen set, set of house cleaning (with step of house clearing), so children
can learn and play both. Product will be cost effective and keep in mind of customer satisfaction. Initially size
will be on small scale, so that we can provide maximum satisfied output to the customer with reasonable profit.
The vision is to be a pioneer in promoting and supporting the use of goods that value and care for the
environment and to raise public consciousness of the importance of health and protection for children and the
earth.
1.1 Business Offering
The overall vision an objective of my business is to improve the quality of toy and keep in mind the health of
children whereas still being ethical and advantageous to the environment and the local community. Range of my
toys include traditional toys of India (Rattle and Dug Dugi, Dolls, Tiger & Goat, puppets) and other kids toys
puzzles, climbing frame, slot cars, playhouses, pocket money toys, kitchen set, bord games, climbing frame and
will be added more as per customer requirement. We will also start after product services in which we can repair
the toy and will also collect throwable toy and recycle them. (Souvik Roy, Indiatimes, 2015) &
(Yell.com,2020). Safety and quality both are main concern for parent in relation of toys from the beginning of
upbring of kids and here, grasping, listening, seeing, feelings are the major activities in their initial months of
baby. Toys are effectively used, felt, put in the mouth or cuddle. Therefor, our company give importance to
safety and quality first. (Yell.com,2020).
1.2 Added value to our potential customers
A bio-based range of plastic sand-toys and softwood toys are market choice. A potential advantage of using
natural materials for such a product is that parents tend to be especially interested in environmentally friendly
goods, particularly if they are in touch with their children (Laroche et al., 2001). Natural Toys Inc. will meet the
requirement of customer, which will satisfy their demand. Moreover, A box that has a cut-out handle, graphic
display of product content, contrast colour blend, condensed product pictures, natural ornament shape, and the
location of information items is placed on the upper side or top of the side of a package are the packaging style
that is most favoured by customers.( Suzianti, A., Amanda, Y. and Arrafah, G., 2019). we will prepare all
packaging according to customer and all product will be available in the market with reasonable price.
1.3 The business is different from other existing ones
Customers enjoy how convenient it is to use service or buy goods of company. In the competitive world of kids
related product, our company will provide door step delivery of toys, we will also arrange free service for guide
children how to use high level toys (For example, gaming board of chess in which a person will visit home as
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per parents permission and will play with kids and explain each step with practical) or (for a baby toy which are
recyclable, we will collect it and provide new one on half price). Our company will be updating it service time
to time as per customer feedback. As toys of our company focus on natural material (bio-based plastic and
softwood toys) and consider the environment protection, we will never compromise the quality of our product.
Toys available in the market not only for the purpose of play but also for learning. Toys will be made with deep
creativity with more emphasis on function of toys and related to natural world. Our company will always take
care the emotion and concern of parents which they have for their children and always make the relationship
with our customer. (Brian Morgan,2014)
2.0 MARKET ANALYSIS
Parents have shown a new perspective towards their children along with the passing of time, seeking to give
them everything they desired in terms of toys. Consequently, the toy market is actively investing, and the tough
competition contributes to the enhancement of the consistency of the products and enforces those market
expectations. The originality and topicality of the theme consists of shifting the tastes of toy buyers and
customers, which demands further consideration to be given to the impact expressed on this market by the
marketing climate.( SToiCA, C.G. and Denisa ivAN, C.,2014). In India, the toy industry is widely unorganized
and proportionately very limited in terms of population and per capita revenue. The small-scale design of the
handmade toy industry has contributed to stumpy product innovation and poor investment in new modern
machinery and technologies, resulting in small market sizes overall. It was found that the future of the toy
industry relies on relentless creativity. (Yadav, C.S., 2020). So, it will provide us a great opportunity to start our
business with low cost and will later expand on large scale.
The demand for natural toys can be split into two segments:
Person customers: this category is parents or grandparents who are buying a single child's product.
Wholesale buyers: this group is colleges, daycare centres, etc., business firms that purchase the goods for use
by their consumers.
Instead of using the conventional layered delivery scheme that requires wholesalers to distribute to suppliers, the
Natural Toy Inc. has opted to sell directly to the customer. Although this creates more effort in terms of revenue
generation for business, it offers higher margins. In addition, for the first two years, this phase will be more
expensive, but as partnerships are formed with individual consumers as well as wholesale buyers, the marketing
expense per transaction will decline significantly as the initial customers become acquainted with the excellent
product line of Natural Toy Inc. and begin to make purchases.
2.1 Market segmentation
The business has segmented the market into two different clients, individuals, and firms, as stated in the
previous section.
Individuals: This section consists of individuals purchasing a single thing for their child or someone they know.
The demographics of this section are >$50,000 in household income, have strong educational and
developmental goals for their children, and want to get started as soon as possible. They typically have at least
one undergraduate degree, and 41 percent in the graduate degree section.
recyclable, we will collect it and provide new one on half price). Our company will be updating it service time
to time as per customer feedback. As toys of our company focus on natural material (bio-based plastic and
softwood toys) and consider the environment protection, we will never compromise the quality of our product.
Toys available in the market not only for the purpose of play but also for learning. Toys will be made with deep
creativity with more emphasis on function of toys and related to natural world. Our company will always take
care the emotion and concern of parents which they have for their children and always make the relationship
with our customer. (Brian Morgan,2014)
2.0 MARKET ANALYSIS
Parents have shown a new perspective towards their children along with the passing of time, seeking to give
them everything they desired in terms of toys. Consequently, the toy market is actively investing, and the tough
competition contributes to the enhancement of the consistency of the products and enforces those market
expectations. The originality and topicality of the theme consists of shifting the tastes of toy buyers and
customers, which demands further consideration to be given to the impact expressed on this market by the
marketing climate.( SToiCA, C.G. and Denisa ivAN, C.,2014). In India, the toy industry is widely unorganized
and proportionately very limited in terms of population and per capita revenue. The small-scale design of the
handmade toy industry has contributed to stumpy product innovation and poor investment in new modern
machinery and technologies, resulting in small market sizes overall. It was found that the future of the toy
industry relies on relentless creativity. (Yadav, C.S., 2020). So, it will provide us a great opportunity to start our
business with low cost and will later expand on large scale.
The demand for natural toys can be split into two segments:
Person customers: this category is parents or grandparents who are buying a single child's product.
Wholesale buyers: this group is colleges, daycare centres, etc., business firms that purchase the goods for use
by their consumers.
Instead of using the conventional layered delivery scheme that requires wholesalers to distribute to suppliers, the
Natural Toy Inc. has opted to sell directly to the customer. Although this creates more effort in terms of revenue
generation for business, it offers higher margins. In addition, for the first two years, this phase will be more
expensive, but as partnerships are formed with individual consumers as well as wholesale buyers, the marketing
expense per transaction will decline significantly as the initial customers become acquainted with the excellent
product line of Natural Toy Inc. and begin to make purchases.
2.1 Market segmentation
The business has segmented the market into two different clients, individuals, and firms, as stated in the
previous section.
Individuals: This section consists of individuals purchasing a single thing for their child or someone they know.
The demographics of this section are >$50,000 in household income, have strong educational and
developmental goals for their children, and want to get started as soon as possible. They typically have at least
one undergraduate degree, and 41 percent in the graduate degree section.
Businesses: This organization buys toys for kids who are buyers of the firm. Typically, these organizations are
either focused on day care, or based on kindergarten, such as nursery school or pre-school. In total, the number
of kids they care about varies from seven to 25.
2.2 Target Market
Target market would be parents of children (3-16). Business would concentrate on individual customers and
wholesale clients:
Enhanced margins- While the volume of revenue will be smaller compared to the usage of bulk dealers, the
margins will be larger.
Closer customer touch - A better partnership can be established by marketing direct to customers. This is
beneficial because it creates a more detailed feedback stream that is instrumental in the creation of goods.
More accurate- Fewer layers of delivery presence.
2.3 Marketing and Distribution Channel
Accelerating technical development, increased consumer pressures, high level foreign competitiveness, and
changes in the dynamics of the workforce and economy influence delivery chains, causing firms to question
simple ideas on how they access their customers. The scale of transition involves a strategic aspect that views
channel options as choices from a continuously evolving variety of alternatives to consumer coverage and
competitive advantage, subject to cost, investment, and versatility constraints, of course. Tactical responses
would not be adequate, based on preserving power balances, conflict management, and mitigating processing
costs to pursue greater performance. (Anderson, E., Day, G.S. and Rangan, V.K.,1997)
Channel of Promotion
Natural Toys INC will do the following to Marketing of toys-
Offer pieces in High level faire (In India – There is Trade fare in Delhi each month of November,14)
Advertise in target markets, especially in advance of the holiday season. The cities with local festivals
such as Baster Dusshera, Madai, i.e. The focus areas will be fairs in these towns during Navratri and
provincial festivals.
Providing an email newsletter with industry news, product details, and a decent timetable for crafting.
Use of tailored advertising from Google and Facebook.
Use of Twitter, YouTube, Email, LinkedIn, Pint-rest, and Tumbler social media.
Providing contact details on the website of an organization.
Add stickers to toys that include the name of the manufacturer, contact numbers, and web address.
Use to door to door and explain my product, and in park show sample of my product.
Also, connect with schools and play schools, so that they can purchase my sample product.
Advertise in between children cartoon show.
either focused on day care, or based on kindergarten, such as nursery school or pre-school. In total, the number
of kids they care about varies from seven to 25.
2.2 Target Market
Target market would be parents of children (3-16). Business would concentrate on individual customers and
wholesale clients:
Enhanced margins- While the volume of revenue will be smaller compared to the usage of bulk dealers, the
margins will be larger.
Closer customer touch - A better partnership can be established by marketing direct to customers. This is
beneficial because it creates a more detailed feedback stream that is instrumental in the creation of goods.
More accurate- Fewer layers of delivery presence.
2.3 Marketing and Distribution Channel
Accelerating technical development, increased consumer pressures, high level foreign competitiveness, and
changes in the dynamics of the workforce and economy influence delivery chains, causing firms to question
simple ideas on how they access their customers. The scale of transition involves a strategic aspect that views
channel options as choices from a continuously evolving variety of alternatives to consumer coverage and
competitive advantage, subject to cost, investment, and versatility constraints, of course. Tactical responses
would not be adequate, based on preserving power balances, conflict management, and mitigating processing
costs to pursue greater performance. (Anderson, E., Day, G.S. and Rangan, V.K.,1997)
Channel of Promotion
Natural Toys INC will do the following to Marketing of toys-
Offer pieces in High level faire (In India – There is Trade fare in Delhi each month of November,14)
Advertise in target markets, especially in advance of the holiday season. The cities with local festivals
such as Baster Dusshera, Madai, i.e. The focus areas will be fairs in these towns during Navratri and
provincial festivals.
Providing an email newsletter with industry news, product details, and a decent timetable for crafting.
Use of tailored advertising from Google and Facebook.
Use of Twitter, YouTube, Email, LinkedIn, Pint-rest, and Tumbler social media.
Providing contact details on the website of an organization.
Add stickers to toys that include the name of the manufacturer, contact numbers, and web address.
Use to door to door and explain my product, and in park show sample of my product.
Also, connect with schools and play schools, so that they can purchase my sample product.
Advertise in between children cartoon show.
Distribution channel
Currently, the only one responsible for Natura Toys purchases is the maker. Natural Toys will look to hire an
employee to help with social media and internet content as sales grow. The company's target audience would be
parents of children aged 5-16. Via online ads and visiting art fairs, the organization would raise awareness of
our intended clients.
Our company decide to sell to toys to direct to the customer, with some retailer and as soon as business will
expand, we will also sell through wholesaler.
Competitors Analysis
The toy market is widely divided in the world. It can be calculated that the scale of the toy industry is around
Rs4.5 billion. There is no tax levied so that the output number will not be available. Mattel, Lego, Hasbro, and
Bandai are the four main companies that have worldwide operations. The biggest toy makers in the world are
Mattel Toys. Japan's Bandai is still popular. Since 1985, Mattel has been in India, selling toys under the Barbie
Door-to-DoorTradeExhibitionAdvertismentSociaMediaCulturalEvents
Currently, the only one responsible for Natura Toys purchases is the maker. Natural Toys will look to hire an
employee to help with social media and internet content as sales grow. The company's target audience would be
parents of children aged 5-16. Via online ads and visiting art fairs, the organization would raise awareness of
our intended clients.
Our company decide to sell to toys to direct to the customer, with some retailer and as soon as business will
expand, we will also sell through wholesaler.
Competitors Analysis
The toy market is widely divided in the world. It can be calculated that the scale of the toy industry is around
Rs4.5 billion. There is no tax levied so that the output number will not be available. Mattel, Lego, Hasbro, and
Bandai are the four main companies that have worldwide operations. The biggest toy makers in the world are
Mattel Toys. Japan's Bandai is still popular. Since 1985, Mattel has been in India, selling toys under the Barbie
Door-to-DoorTradeExhibitionAdvertismentSociaMediaCulturalEvents
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name, Hot wheels, and Star Bens, etc. The Mattel Corporation is a $6 billion company with a market share of
about 20% in India. India today has over 800 manufacturers, exporters, and suppliers of Indian toys and games.
Toys and games from India can be described as enjoyable or instructional toys. (Indian Mirror, 2020). So, these
are big competitor for Natural toys.
Pricing strategy
Natural Toys company will use Market- Penetration Pricing-New Product Pricing, in which we will setting low
price for our new toys to penetrate the market quickly and deeply. Therefore, many consumers and a large share
of the market, but at the cost of profitability, are won. The high volume of revenue leads to declining costs,
allowing businesses to slash their rates even further. Indian parents spend an average of Rs250-300 on a toy, and
this is growing with increasingly high-end toys fuelled by creativity. Here, our company will provide a toy
around Rs. 200 in initial stage.
3.0 SUPPLY CHAIN, OPERATIONS & LOGISTICS
One of the top goals of the new business approach of a company today is to present itself as both socially
conscious and environmentally friendly. Green supply chain management has emerged as a focal point of
environmental efforts as a core technique that can offer strategic benefits with major parallel improvements for
market profitability. The goal of creating a green supply chain is to follow systematic and cross-business
concepts of sustainability, from the point of product conception to the end-of-life stage. Green programs
contribute to real and intangible business gains in this sense. Sustainability studies from various businesses
indicate that greening their supply chains has helped to minimize operational costs, thereby enhancing
productivity and efficiency while improving market sustainability. A product's trajectory continues with the raw
material source in a traditional supply chain. The maker then turns the goods into completed or semi-finished
products, which are then shipped to dealers or wholesalers. Then goods are marketed to retailers based on
business demand, and eventually they end up with the final customers/consumers. (Achillas, Charisios, et al. )
about 20% in India. India today has over 800 manufacturers, exporters, and suppliers of Indian toys and games.
Toys and games from India can be described as enjoyable or instructional toys. (Indian Mirror, 2020). So, these
are big competitor for Natural toys.
Pricing strategy
Natural Toys company will use Market- Penetration Pricing-New Product Pricing, in which we will setting low
price for our new toys to penetrate the market quickly and deeply. Therefore, many consumers and a large share
of the market, but at the cost of profitability, are won. The high volume of revenue leads to declining costs,
allowing businesses to slash their rates even further. Indian parents spend an average of Rs250-300 on a toy, and
this is growing with increasingly high-end toys fuelled by creativity. Here, our company will provide a toy
around Rs. 200 in initial stage.
3.0 SUPPLY CHAIN, OPERATIONS & LOGISTICS
One of the top goals of the new business approach of a company today is to present itself as both socially
conscious and environmentally friendly. Green supply chain management has emerged as a focal point of
environmental efforts as a core technique that can offer strategic benefits with major parallel improvements for
market profitability. The goal of creating a green supply chain is to follow systematic and cross-business
concepts of sustainability, from the point of product conception to the end-of-life stage. Green programs
contribute to real and intangible business gains in this sense. Sustainability studies from various businesses
indicate that greening their supply chains has helped to minimize operational costs, thereby enhancing
productivity and efficiency while improving market sustainability. A product's trajectory continues with the raw
material source in a traditional supply chain. The maker then turns the goods into completed or semi-finished
products, which are then shipped to dealers or wholesalers. Then goods are marketed to retailers based on
business demand, and eventually they end up with the final customers/consumers. (Achillas, Charisios, et al. )
3.1 Logistic and Operations
Consumers today are more alert, interested and committed in learning about the items they buy. The ethical
procurement of raw materials, as well as manufacturing, fair trade and labour, the atmosphere, the ethical
treatment of animals and the disposal or recycling of goods are of significant concern. Consumers will also
frequently track and trace items back to the point of origin with the use of RFID, barcodes, and apps.
Furthermore, the supply chain stakeholders engaged in the manufacturing, handling, storage, shipping, and
logistics of the products will gain insight into them. (dateX,2020).
Natural Toys will always priorities the environment and safety of consumer, therefore we will use Green supply
chain management and protect our environment. Natural toys
1)First step is cutting tree (but also will growing more trees, will keep this in mind) and loading them into truck
and
2) transport at plant where crush these and make paste.
3) Then again transport it at factory
4)Manufacturing of product in factory-
5)Transport product at warehouse
7) Sell in good wholesale market (online also)
8) To the final customer"
9) Also collect the waste of toys and recycle it and use again.
Consumers today are more alert, interested and committed in learning about the items they buy. The ethical
procurement of raw materials, as well as manufacturing, fair trade and labour, the atmosphere, the ethical
treatment of animals and the disposal or recycling of goods are of significant concern. Consumers will also
frequently track and trace items back to the point of origin with the use of RFID, barcodes, and apps.
Furthermore, the supply chain stakeholders engaged in the manufacturing, handling, storage, shipping, and
logistics of the products will gain insight into them. (dateX,2020).
Natural Toys will always priorities the environment and safety of consumer, therefore we will use Green supply
chain management and protect our environment. Natural toys
1)First step is cutting tree (but also will growing more trees, will keep this in mind) and loading them into truck
and
2) transport at plant where crush these and make paste.
3) Then again transport it at factory
4)Manufacturing of product in factory-
5)Transport product at warehouse
7) Sell in good wholesale market (online also)
8) To the final customer"
9) Also collect the waste of toys and recycle it and use again.
Waste materials and returned commodities are converted into items in the Natural Toys supply chain that have
value and can be resold. We will need to step away from the point-to-point linear supply chain to add harmony,
resulting in final items such as waste in the garbage and landfills. Returns and recycling will be introduced,
boosting efficiency and environmental health by providing a connector to connect the origin and end of the
supply chain. Waste is used as possibilities, as fresh means of generating value. Countries around the world are
viewing by-products and pollution in new ways. In the processing process, by-products of manufacture may also
be reclaimed and re-used. This will sometimes help company establish new sales streams if good will be
rejected.
4.0 HUMAN RESOURCE PLANNING
Organizations have historically used human resource planning to ensure that the right employee is at the right
moment with the right position. Human resource preparation concentrated on the near term under past
circumstances of greater environmental clarity and prosperity and was primarily dictated by line management
considerations. The need for and the essence of human resource planning in leading organisations is evolving
with growing environmental uncertainty, demographic trends, technological improvements, and intensified
foreign competition. The relationship between line managers and planners is increasingly the outcome of
planning. In addition, companies recognize that they must implement long-term as well as short-term strategies
to effectively resolve human capital challenges. Since human resource planners are interested in more programs
to satisfy the company's interests and affect the company's course, they face new and expanded roles and
challenges. (Jackson, S.E. and Schuler, R.S., 1990).
4.1 Who is the business owner’s?
Natural will be small company owned and operated by G.K Saini as a Founder of the corporation. Sarbjeet
Singh (MBA) will be developer and designer of product and manages the company as president. G.K Saini and
Sarbjeet Singh both are partner in the company and focus of on provide quality product to their customer and
build brand image for natural toy as an Indian business. As both concern for the safety of children around us,
therefore we decide to do business in toy industry so that we can provide safe, enjoyable, and learning toys.
4.2 What is the entrepreneurial team’s background?
With a Post Graduate diploma in Business Management from IMT Ghaziabad, and graduate study in the B.
Com program at Delhi University, the founder of the corporation and author of this business strategy has an
educational experience in Business Management. In different product planning and program management
capacities, I have over 5 years of work experience. I then worked actively in advertisement, public relations,
trade show planning, and product procurement for 1 1/2 years.
Sarbjeet Singh is the developer of the company and have MBA in management from IIM University. He has
four-year experience in MNC company as Manager.
4.3 What staff does the business need?
One employee will be actively working 20 to 24 hours a week in customer care, managing all the order
processes. She has an extensive experience in service and as the volume builds, she will be available for
extended hours if needed.
In the regular service, another worker will be involved. He will manage inventory, distribution, and response to
inquiries received. He will be expecting to provide the operation about 10 to 15 hours a week while also
retaining outside jobs. At this point, there are no plans for him to join the operation on a full-time basis.
Our final permanent worker will be available whenever we need. He will work five to ten hours a week on
average, stepping in whenever required.
Certain part time workers are qualified and available on an as needed basis to assist with filling orders.
value and can be resold. We will need to step away from the point-to-point linear supply chain to add harmony,
resulting in final items such as waste in the garbage and landfills. Returns and recycling will be introduced,
boosting efficiency and environmental health by providing a connector to connect the origin and end of the
supply chain. Waste is used as possibilities, as fresh means of generating value. Countries around the world are
viewing by-products and pollution in new ways. In the processing process, by-products of manufacture may also
be reclaimed and re-used. This will sometimes help company establish new sales streams if good will be
rejected.
4.0 HUMAN RESOURCE PLANNING
Organizations have historically used human resource planning to ensure that the right employee is at the right
moment with the right position. Human resource preparation concentrated on the near term under past
circumstances of greater environmental clarity and prosperity and was primarily dictated by line management
considerations. The need for and the essence of human resource planning in leading organisations is evolving
with growing environmental uncertainty, demographic trends, technological improvements, and intensified
foreign competition. The relationship between line managers and planners is increasingly the outcome of
planning. In addition, companies recognize that they must implement long-term as well as short-term strategies
to effectively resolve human capital challenges. Since human resource planners are interested in more programs
to satisfy the company's interests and affect the company's course, they face new and expanded roles and
challenges. (Jackson, S.E. and Schuler, R.S., 1990).
4.1 Who is the business owner’s?
Natural will be small company owned and operated by G.K Saini as a Founder of the corporation. Sarbjeet
Singh (MBA) will be developer and designer of product and manages the company as president. G.K Saini and
Sarbjeet Singh both are partner in the company and focus of on provide quality product to their customer and
build brand image for natural toy as an Indian business. As both concern for the safety of children around us,
therefore we decide to do business in toy industry so that we can provide safe, enjoyable, and learning toys.
4.2 What is the entrepreneurial team’s background?
With a Post Graduate diploma in Business Management from IMT Ghaziabad, and graduate study in the B.
Com program at Delhi University, the founder of the corporation and author of this business strategy has an
educational experience in Business Management. In different product planning and program management
capacities, I have over 5 years of work experience. I then worked actively in advertisement, public relations,
trade show planning, and product procurement for 1 1/2 years.
Sarbjeet Singh is the developer of the company and have MBA in management from IIM University. He has
four-year experience in MNC company as Manager.
4.3 What staff does the business need?
One employee will be actively working 20 to 24 hours a week in customer care, managing all the order
processes. She has an extensive experience in service and as the volume builds, she will be available for
extended hours if needed.
In the regular service, another worker will be involved. He will manage inventory, distribution, and response to
inquiries received. He will be expecting to provide the operation about 10 to 15 hours a week while also
retaining outside jobs. At this point, there are no plans for him to join the operation on a full-time basis.
Our final permanent worker will be available whenever we need. He will work five to ten hours a week on
average, stepping in whenever required.
Certain part time workers are qualified and available on an as needed basis to assist with filling orders.
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There are other activities, such as graphic design, computer programming and updating, and accounting, which
are rented out. We will also establish a pool of staff that we will tapping into, which will be very effective for
mothers. Because of a need to spend more time with their children, there are many mothers available who wish
to work, but do not want to commit to a full-time job. They have strengths and abilities that are left untouched.
Whenever practicable, we will channel those skills of mother. This will give us a lot of versatility. Even
whenever volume will hit the extent of requiring more permanent staffing, services that we will use extensively
will be part-time and job sharing.
The next addition to personnel would be someone to focus on promotional efforts, both through direct action
and by supervising the representative network. We will try to look for someone with good sales skills and pay a
base wage plus a scheme of commissions. Adding time would rely on building sales volume to handle the added
cost over a three-month period as this individual gets up to speed. After the initial three-month period, the
additional profits they earn can cover their wages.
Moreover, we recruit manpower to make toys professionally and they must have knowledge of organic or
natural product. Our company ensure that the right person is in the right job at the right time. Our staff would
trustworthy and give their best to make product safe at each steps of production and till the delivery of product.
Also, we also take in to account that growth of employees as well as growth of company. Staff would be
adjusted and knowledgeable of every situation and responsible.
5.0 LEGAL & REGULATORY REQUIREMENTS
A persistent issue is dangerous chemicals in consumer goods. Since kids have little muscle fat and are quickly
evolving, harmful substances are of special interest in toys. Latest tests have demonstrated disturbing levels of
cadmium and lead in children's toys and plastic compounds, such as phthalates and bisphenol A, that are
accused of having adverse effects. (Becker, M., Edwards, S. and Massey, R.I., 2010). However, to protect the
safety for the customer government has made some Laws and regulations.
In legal terms, in the exercise of the powers granted under the Bureau of Indian Standards Act, 2016, the Central
Government of India released the 'The Toys (Quality Control) Order, 2020' (the 'Order'). As told by the Central
Government of India, the order enforces a mandatory fair condition on the regulations of toys and other items
that may be used by children for play or goods. In other terms, under this order, toy producers and importers are
expected to cooperate with the Bureau of Indian Standards (BIS) to comply with safety standards during the
production and importation of toys. (LATEST LAWS.COM, 2020). Natural Toys will be followed these laws
and maintain the regulation and to comply with all federal and state laws covering the manufacture of toys.
Natural Toys needs to apply for BIS license BIS licence under the certification scheme. For BIS certification,
toys have been classified into the following two categories. (Sidhartha Srivastava and Yasmeen Mohd.
Sabir,2020)
Sr. No. Type Applicable Primary
standard
1. Non-Electric Toys (these are ordinary toys such as rattles, dolls, puzzles, etc. which do
not have any function dependent on electricity)
IS 9873 (Part 1):2019
2. Electric Toys (these are toys which have at least one function dependent on electricity) IS 15644:200
6.0 RISKS & CHALLENGES
Critical risk factors: There would be ample risk for the start-up concept to complete a dozen business plans.
The risk analysis of our strategy is to illustrate that my plan will handle many forms of danger requires to
address all sorts of risk in the same political risk through fear.
Shift in regulatory government, any change in market rules and regulations that can cause some form of
problem for our organization.
are rented out. We will also establish a pool of staff that we will tapping into, which will be very effective for
mothers. Because of a need to spend more time with their children, there are many mothers available who wish
to work, but do not want to commit to a full-time job. They have strengths and abilities that are left untouched.
Whenever practicable, we will channel those skills of mother. This will give us a lot of versatility. Even
whenever volume will hit the extent of requiring more permanent staffing, services that we will use extensively
will be part-time and job sharing.
The next addition to personnel would be someone to focus on promotional efforts, both through direct action
and by supervising the representative network. We will try to look for someone with good sales skills and pay a
base wage plus a scheme of commissions. Adding time would rely on building sales volume to handle the added
cost over a three-month period as this individual gets up to speed. After the initial three-month period, the
additional profits they earn can cover their wages.
Moreover, we recruit manpower to make toys professionally and they must have knowledge of organic or
natural product. Our company ensure that the right person is in the right job at the right time. Our staff would
trustworthy and give their best to make product safe at each steps of production and till the delivery of product.
Also, we also take in to account that growth of employees as well as growth of company. Staff would be
adjusted and knowledgeable of every situation and responsible.
5.0 LEGAL & REGULATORY REQUIREMENTS
A persistent issue is dangerous chemicals in consumer goods. Since kids have little muscle fat and are quickly
evolving, harmful substances are of special interest in toys. Latest tests have demonstrated disturbing levels of
cadmium and lead in children's toys and plastic compounds, such as phthalates and bisphenol A, that are
accused of having adverse effects. (Becker, M., Edwards, S. and Massey, R.I., 2010). However, to protect the
safety for the customer government has made some Laws and regulations.
In legal terms, in the exercise of the powers granted under the Bureau of Indian Standards Act, 2016, the Central
Government of India released the 'The Toys (Quality Control) Order, 2020' (the 'Order'). As told by the Central
Government of India, the order enforces a mandatory fair condition on the regulations of toys and other items
that may be used by children for play or goods. In other terms, under this order, toy producers and importers are
expected to cooperate with the Bureau of Indian Standards (BIS) to comply with safety standards during the
production and importation of toys. (LATEST LAWS.COM, 2020). Natural Toys will be followed these laws
and maintain the regulation and to comply with all federal and state laws covering the manufacture of toys.
Natural Toys needs to apply for BIS license BIS licence under the certification scheme. For BIS certification,
toys have been classified into the following two categories. (Sidhartha Srivastava and Yasmeen Mohd.
Sabir,2020)
Sr. No. Type Applicable Primary
standard
1. Non-Electric Toys (these are ordinary toys such as rattles, dolls, puzzles, etc. which do
not have any function dependent on electricity)
IS 9873 (Part 1):2019
2. Electric Toys (these are toys which have at least one function dependent on electricity) IS 15644:200
6.0 RISKS & CHALLENGES
Critical risk factors: There would be ample risk for the start-up concept to complete a dozen business plans.
The risk analysis of our strategy is to illustrate that my plan will handle many forms of danger requires to
address all sorts of risk in the same political risk through fear.
Shift in regulatory government, any change in market rules and regulations that can cause some form of
problem for our organization.
Chance of adaptation of uniqueness: we will have our website; we will also have our product definition with
price on our website. We are going to have home delivery service, consumer can easily order toy from website,
it copies some of our rivals that can build us challenge.
Investment risk: we are going to invest 45 lakhs, which entails risk because we do not know whether we can
market the commodity at the right period.
The product risk is the risk that it is not feasible to produce the product. A high degree of product risk is often
present in toyshops. They never know for certain that they will sell the object they are trying to sell.
Business risk is the risk of evolving the market differently than expected. Markets often take too long to grow,
and cash runs out when consumers are waiting for a brand.
People risk: In industries that rely on having certain employees or certain types of employees, they are high.
Financial risk is the risk that a corporation will in some way run out of funds or mismanage its money.
Financial institutions could be at tremendous financial risk. Since they will be at risk from bad loan practices
combined with weak investment policies.
Competitive risk: is the risk that it will be able to beat a rival good or service. Several wed-based companies.
See a highly competitive risk when they will start with little cash and have no means of locking clients in.
7.0 FINANCE
Entrepreneurial Financing offers the necessary resources and know-how required to create a stable base that will
sustain it for many years to come, independent of the organization someone manage or expect to start. (Rogers,
S. and Makonnen, R., 2014)
In determining whether to invest, most prospective funders want to see a business strategy as a first move.
However much of the literature on how to write a business strategy does not stress that business plans are
looked at from various viewpoints from different types of funders. This report illustrates the distinct investing
requirements of bankers, venture capital fund managers and corporate angels using a real-time approach.
Bankers highlight the financial elements of the plan and put little focus on industry, entrepreneurs, or other
topics. Venture capital fund administrators and corporate angels, as equity partners, take a somewhat different
approach, stressing both industry and finance concerns. Company angels offer more priority to the founder and
'investor match' factors than venture capital fund managers. For founders, the implication is that they must tailor
their business strategy according to whether a bank, venture capital fund or business angel is finding financing.
(Mason, C. and Stark, M., 2004).
7.1 What are the company’s financial needs?
For financial needs we have some financial assumptions.
The General Hypothesis
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
price on our website. We are going to have home delivery service, consumer can easily order toy from website,
it copies some of our rivals that can build us challenge.
Investment risk: we are going to invest 45 lakhs, which entails risk because we do not know whether we can
market the commodity at the right period.
The product risk is the risk that it is not feasible to produce the product. A high degree of product risk is often
present in toyshops. They never know for certain that they will sell the object they are trying to sell.
Business risk is the risk of evolving the market differently than expected. Markets often take too long to grow,
and cash runs out when consumers are waiting for a brand.
People risk: In industries that rely on having certain employees or certain types of employees, they are high.
Financial risk is the risk that a corporation will in some way run out of funds or mismanage its money.
Financial institutions could be at tremendous financial risk. Since they will be at risk from bad loan practices
combined with weak investment policies.
Competitive risk: is the risk that it will be able to beat a rival good or service. Several wed-based companies.
See a highly competitive risk when they will start with little cash and have no means of locking clients in.
7.0 FINANCE
Entrepreneurial Financing offers the necessary resources and know-how required to create a stable base that will
sustain it for many years to come, independent of the organization someone manage or expect to start. (Rogers,
S. and Makonnen, R., 2014)
In determining whether to invest, most prospective funders want to see a business strategy as a first move.
However much of the literature on how to write a business strategy does not stress that business plans are
looked at from various viewpoints from different types of funders. This report illustrates the distinct investing
requirements of bankers, venture capital fund managers and corporate angels using a real-time approach.
Bankers highlight the financial elements of the plan and put little focus on industry, entrepreneurs, or other
topics. Venture capital fund administrators and corporate angels, as equity partners, take a somewhat different
approach, stressing both industry and finance concerns. Company angels offer more priority to the founder and
'investor match' factors than venture capital fund managers. For founders, the implication is that they must tailor
their business strategy according to whether a bank, venture capital fund or business angel is finding financing.
(Mason, C. and Stark, M., 2004).
7.1 What are the company’s financial needs?
For financial needs we have some financial assumptions.
The General Hypothesis
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0
7.2 Break-Even
The Break-even Analysis indicates that $30,290 will be needed in monthly revenue to reach the break-even
point.
Break-even Analysis
Monthly Revenue Break-even $18,596
Assumptions:
Average Percent Variable Cost 40%
Estimated Monthly Fixed Cost $11,158
Profit and Loss
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0
7.2 Break-Even
The Break-even Analysis indicates that $30,290 will be needed in monthly revenue to reach the break-even
point.
Break-even Analysis
Monthly Revenue Break-even $18,596
Assumptions:
Average Percent Variable Cost 40%
Estimated Monthly Fixed Cost $11,158
Profit and Loss
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The following table and charts will indicate Projected Profit and Loss.
Pro Forma Profit and Loss
Sales $124,505 $367,556 $475,601
Direct Cost of Sales $49,802 $147,022 $190,240
Other Costs of Goods $0 $0 $0
Total Cost of Sales $49,802 $147,022 $190,240
Gross Margin $74,703 $220,534 $285,361
Gross Margin % 60.00% 60.00% 60.00%
Expenses
Payroll $98,000 $128,000 $156,000
Sales and Marketing and Other Expenses $4,200 $4,200 $4,200
Depreciation $1,992 $1,992 $1,992
Rent $7,200 $7,200 $7,200
Utilities $3,600 $3,600 $3,600
Insurance $3,000 $3,000 $3,000
Payroll Taxes $14,700 $19,200 $23,400
Other $1,200 $1,200 $1,200
Total Operating Expenses $133,892 $168,392 $200,592
Profit Before Interest and Taxes ($59,189) $52,142 $84,769
EBITDA ($57,197) $54,134 $86,761
Sales $124,505 $367,556 $475,601
Direct Cost of Sales $49,802 $147,022 $190,240
Other Costs of Goods $0 $0 $0
Total Cost of Sales $49,802 $147,022 $190,240
Gross Margin $74,703 $220,534 $285,361
Gross Margin % 60.00% 60.00% 60.00%
Expenses
Payroll $98,000 $128,000 $156,000
Sales and Marketing and Other Expenses $4,200 $4,200 $4,200
Depreciation $1,992 $1,992 $1,992
Rent $7,200 $7,200 $7,200
Utilities $3,600 $3,600 $3,600
Insurance $3,000 $3,000 $3,000
Payroll Taxes $14,700 $19,200 $23,400
Other $1,200 $1,200 $1,200
Total Operating Expenses $133,892 $168,392 $200,592
Profit Before Interest and Taxes ($59,189) $52,142 $84,769
EBITDA ($57,197) $54,134 $86,761
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Projected Cash Flow
The following table and chart will indicate Projected Cash Flow
Pro Forma Cash Flow
Cash Received
Cash from Operations
Cash Sales $31,126 $91,889 $118,900
Cash from Receivables $66,011 $222,242 $332,951
Subtotal Cash from Operations $97,137 $314,131 $451,852
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
The following table and chart will indicate Projected Cash Flow
Pro Forma Cash Flow
Cash Received
Cash from Operations
Cash Sales $31,126 $91,889 $118,900
Cash from Receivables $66,011 $222,242 $332,951
Subtotal Cash from Operations $97,137 $314,131 $451,852
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $97,137 $314,131 $451,852
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $98,000 $128,000 $156,000
Bill Payments $74,351 $193,890 $253,569
Subtotal Spent on Operations $172,351 $321,890 $409,569
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $97,137 $314,131 $451,852
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $98,000 $128,000 $156,000
Bill Payments $74,351 $193,890 $253,569
Subtotal Spent on Operations $172,351 $321,890 $409,569
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $172,351 $321,890 $409,569
Net Cash Flow ($75,213) ($7,759) $42,283
Cash Balance $41,387 $33,628 $75,911
Projected Balance Sheet
The following table will indicate the Projected Balance Sheet.
Subtotal Cash Spent $172,351 $321,890 $409,569
Net Cash Flow ($75,213) ($7,759) $42,283
Cash Balance $41,387 $33,628 $75,911
Projected Balance Sheet
The following table will indicate the Projected Balance Sheet.
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Pro Forma Balance Sheet
Assets
Current Assets
Cash $41,387 $33,628 $75,911
Accounts Receivable $27,367 $80,792 $104,541
Other Current Assets $0 $0 $0
Total Current Assets $68,754 $114,420 $180,452
Long-term Assets
Long-term Assets $10,000 $10,000 $10,000
Accumulated Depreciation $1,992 $3,984 $5,976
Total Long-term Assets $8,008 $6,016 $4,024
Total Assets $76,762 $120,436 $184,476
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $9,351 $16,526 $21,228
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $9,351 $16,526 $21,228
Long-term Liabilities $0 $0 $0
Assets
Current Assets
Cash $41,387 $33,628 $75,911
Accounts Receivable $27,367 $80,792 $104,541
Other Current Assets $0 $0 $0
Total Current Assets $68,754 $114,420 $180,452
Long-term Assets
Long-term Assets $10,000 $10,000 $10,000
Accumulated Depreciation $1,992 $3,984 $5,976
Total Long-term Assets $8,008 $6,016 $4,024
Total Assets $76,762 $120,436 $184,476
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $9,351 $16,526 $21,228
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $9,351 $16,526 $21,228
Long-term Liabilities $0 $0 $0
Business Rations
The following chart offers Business Ratios for this company as well as the industry averages
.
Ratio Analysis
Sales Growth 0.00% 195.21% 29.40% 3.34%
Percent of Total Assets
Accounts Receivable 35.65% 67.08% 56.67% 16.20%
Other Current Assets 0.00% 0.00% 0.00% 23.64%
Total Current Assets 89.57% 95.00% 97.82% 79.15%
Long-term Assets 10.43% 5.00% 2.18% 20.85%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 12.18% 13.72% 11.51% 36.32%
Long-term Liabilities 0.00% 0.00% 0.00% 15.56%
Total Liabilities 12.18% 13.72% 11.51% 51.88%
Net Worth 87.82% 86.28% 88.49% 48.12%
The following chart offers Business Ratios for this company as well as the industry averages
.
Ratio Analysis
Sales Growth 0.00% 195.21% 29.40% 3.34%
Percent of Total Assets
Accounts Receivable 35.65% 67.08% 56.67% 16.20%
Other Current Assets 0.00% 0.00% 0.00% 23.64%
Total Current Assets 89.57% 95.00% 97.82% 79.15%
Long-term Assets 10.43% 5.00% 2.18% 20.85%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 12.18% 13.72% 11.51% 36.32%
Long-term Liabilities 0.00% 0.00% 0.00% 15.56%
Total Liabilities 12.18% 13.72% 11.51% 51.88%
Net Worth 87.82% 86.28% 88.49% 48.12%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 60.00% 60.00% 60.00% 34.87%
Selling, General & Administrative Expenses 107.54% 50.07% 47.52% 22.04%
Advertising Expenses 0.00% 0.00% 0.00% 1.89%
Profit Before Interest and Taxes -47.54% 14.19% 17.82% 1.46%
Main Ratios
Current 7.35 6.92 8.50 1.95
Quick 7.35 6.92 8.50 0.75
Total Debt to Total Assets 12.18% 13.72% 11.51% 59.08%
Pre-tax Return on Net Worth -87.80% 50.18% 51.93% 3.36%
Pre-tax Return on Assets -77.11% 43.29% 45.95% 8.20%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin -47.54% 9.93% 12.48% n.a
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 60.00% 60.00% 60.00% 34.87%
Selling, General & Administrative Expenses 107.54% 50.07% 47.52% 22.04%
Advertising Expenses 0.00% 0.00% 0.00% 1.89%
Profit Before Interest and Taxes -47.54% 14.19% 17.82% 1.46%
Main Ratios
Current 7.35 6.92 8.50 1.95
Quick 7.35 6.92 8.50 0.75
Total Debt to Total Assets 12.18% 13.72% 11.51% 59.08%
Pre-tax Return on Net Worth -87.80% 50.18% 51.93% 3.36%
Pre-tax Return on Assets -77.11% 43.29% 45.95% 8.20%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin -47.54% 9.93% 12.48% n.a
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Return on Equity -87.80% 35.13% 36.35% n.a
Activity Ratios
Accounts Receivable Turnover 3.41 3.41 3.41 n.a
Collection Days 56 72 95 n.a
Accounts Payable Turnover 8.95 12.17 12.17 n.a
Payment Days 27 23 27 n.a
Total Asset Turnover 1.62 3.05 2.58 n.a
Debt Ratios
Debt to Net Worth 0.14 0.16 0.13 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $59,403 $97,894 $159,224 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Activity Ratios
Accounts Receivable Turnover 3.41 3.41 3.41 n.a
Collection Days 56 72 95 n.a
Accounts Payable Turnover 8.95 12.17 12.17 n.a
Payment Days 27 23 27 n.a
Total Asset Turnover 1.62 3.05 2.58 n.a
Debt Ratios
Debt to Net Worth 0.14 0.16 0.13 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $59,403 $97,894 $159,224 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.62 0.33 0.39 n.a
Current Debt/Total Assets 12% 14% 12% n.a
Acid Test 4.43 2.03 3.58 n.a
Sales/Net Worth 1.85 3.54 2.91 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Sale Strategy
For each customer category, the sales plan would be customized. The advertising technique
for people is to build ample knowledge of Natural Toys so that consumers ask their dealers to
bring Natural Toys for them. It is Natural Toys’ mission to tackle the market segment where
firms not only purchase one or two of the goods, but that they all buy them discussing various
skills, all of which are essential. This is particularly important since companies are typically
return buyers, which means that if the consumer is pleased with the product, they are more
than likely to become a long-term customer and not search for new vendors.
Sale Forecast
No revenue can be shown in the first three months as the company can speed up production
and create sales networks. Because Natural Toy is a start-up company, the first year is
expected to have a sluggish revenue forecast. Development should be reasonably steep for
year two and year three. Development is expected to persist after year four, albeit at a more
manageable pace than during the second and third years.
Assets to Sales 0.62 0.33 0.39 n.a
Current Debt/Total Assets 12% 14% 12% n.a
Acid Test 4.43 2.03 3.58 n.a
Sales/Net Worth 1.85 3.54 2.91 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Sale Strategy
For each customer category, the sales plan would be customized. The advertising technique
for people is to build ample knowledge of Natural Toys so that consumers ask their dealers to
bring Natural Toys for them. It is Natural Toys’ mission to tackle the market segment where
firms not only purchase one or two of the goods, but that they all buy them discussing various
skills, all of which are essential. This is particularly important since companies are typically
return buyers, which means that if the consumer is pleased with the product, they are more
than likely to become a long-term customer and not search for new vendors.
Sale Forecast
No revenue can be shown in the first three months as the company can speed up production
and create sales networks. Because Natural Toy is a start-up company, the first year is
expected to have a sluggish revenue forecast. Development should be reasonably steep for
year two and year three. Development is expected to persist after year four, albeit at a more
manageable pace than during the second and third years.
Sales Forecast
Sales
Individuals $66,580 $196,554 $254,332
Businesses $57,925 $171,002 $221,269
Total Sales $124,505 $367,556 $475,601
Direct Cost of Sales Year 1 Year 2 Year 3
Individuals $26,632 $78,622 $101,733
Businesses $23,170 $68,401 $88,508
Subtotal Direct Cost of Sales $49,802 $147,022 $190,240
Sales
Individuals $66,580 $196,554 $254,332
Businesses $57,925 $171,002 $221,269
Total Sales $124,505 $367,556 $475,601
Direct Cost of Sales Year 1 Year 2 Year 3
Individuals $26,632 $78,622 $101,733
Businesses $23,170 $68,401 $88,508
Subtotal Direct Cost of Sales $49,802 $147,022 $190,240
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8.0 Milestone
Business plan completion
First prototype complete
First standard production run
Monthly sales over $10,000
Profitability.
Milestones
Milestone Start Date End Date Budget Manager Department
Business plan completion 11/1/2002 1/30/2003 $0 G.K & Sarbjeet Management
First prototype complete 11/1/2002 2/28/2003 $0 Sarbjeet Singh Engineering
First standard production run 1/1/2003 3/30/2003 $0 Sarbjeet Singh Engineering
Monthly sales over $10K 1/1/2003 6/30/2003 $0 Marketing
Business plan completion
First prototype complete
First standard production run
Monthly sales over $10,000
Profitability.
Milestones
Milestone Start Date End Date Budget Manager Department
Business plan completion 11/1/2002 1/30/2003 $0 G.K & Sarbjeet Management
First prototype complete 11/1/2002 2/28/2003 $0 Sarbjeet Singh Engineering
First standard production run 1/1/2003 3/30/2003 $0 Sarbjeet Singh Engineering
Monthly sales over $10K 1/1/2003 6/30/2003 $0 Marketing
Profitability 1/1/2003 11/30/2003 $0 G.K & Sarbjeet Management
Totals $0
Appendices
Totals $0
Appendices
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