Business Plan for Setik Vehicles: Manufacturing Superior Electric Bikes

This business plan outlines the manufacturing of superior electric bikes by Setik Vehicles. It includes market analysis, segmentation, operating plan, risk and contingency plan, sales and marketing strategies, finance and funding plans, and management team details.

Individual Business
Plan Report

Executive Summary
Irrespective of economic surroundings, revenues of electrical bikes have remained
expanding. Furthermore, users are gravitating toward economical and ecological friendly goods.
This company strategy addresses such prospects by proposing a company which will produce
superior electrical bikes. The firm and its goods would be described in depth in the strategy. It
would additionally look into possible micro and micro environmental issues that could affect the
company's success. It will also outline the company's operational program and corporate
framework.

Contents
Executive Summary.........................................................................................................................1
Contents...........................................................................................................................................2
Dragon Den small pitch...................................................................................................................3
My business idea..........................................................................................................................3
The WOW factor.........................................................................................................................3
Product.........................................................................................................................................3
Aim and objectives......................................................................................................................3
Promotion....................................................................................................................................3
Key to success..............................................................................................................................3
Profits...........................................................................................................................................3
Business Details...............................................................................................................................3
Location...........................................................................................................................................4
Market/Industry Analysis................................................................................................................5
Segmentation Analysis....................................................................................................................8
Market Opportunities.......................................................................................................................9
Operating Plan.................................................................................................................................9
Risk and Contingency Plan............................................................................................................11
Strategies for Sales and Marketing................................................................................................12
Finance and Funding Plans............................................................................................................13
Management Team........................................................................................................................14
REFERENCES..............................................................................................................................15

Dragon Den small pitch
My business idea
The business idea is of a company named Setik that manufactures electric bikes in the
market.
The WOW factor
The WOW factor of the idea is that it has many power backups in the bike so that it can
run smoothly over many kms (ABU-TAPANJEH and AL-SARAIRAH, 2021).
Product
Electrical bikes, electronic bike replacement components, and electronic bike cells would
be the corporation's main goods.
Aim and objectives
To be one of the leading bike seller in the market
Promotion
Advertisements on blogs and other networking platforms would be sponsored by the
business.
Key to success
To be consistent and produce good quality products.
Profits
It can start from 50000 and can go up many folds depending on the sales.
Business Details
Owing to increase concentrations of carbon pollution, a strong emphasis has been placed on
ecologically beneficial items in latest days. Companies who concentrate on generating goods
who cut greenhouse gas pollution are also being rewarded by authorities. Furthermore, customer
views regarding ecological materials have shifted (Ahmed, Qin and Aduamoah, 2018). Electrical
automobiles and electrical motorbikes are preferred by users because they emit less carbon
dioxide. Transportation and manufacturing processes cause the most greenhouse pollution.
Carbon dioxide pollution is raised when exhaustible power supplies are used in manufacturing
and automobile fuelling. In 2019, the transportation industry contributed for 28% of

British carbon dioxide pollution, followed by the power service industry at 23% and companies
at 18%. The emerging company would specialise in the manufacture of electrical bikes. Modern
electrical bikes with increased energy efficiency would be the offering. The emerging company
would concentrate on lowering greenhouse gas pollution in both the manufacturing method and
the final output. This would assist companies and people in lowering environmental pollution.
Setik Vehicles would be the name of the company, and it can specialise in the
manufacturing of electrical bikes. Electrical bikes using Lithium-ion reusable cells would be the
centre of the manufacturing method. The device could be offered underneath the Setik label,
which shall be known for its high workmanship and technical ingenuity. The company plans to
attract companies and personal users in the United Kingdom, the United States, and Continental.
There may be motorbike enterprises and marketing strategies such that the company could
appeal to a broad clientele. Setik bikes would come in a variety of versions to meet the
requirements of different types of clients. Producing, advertising, transporting, and retailing
electrical bikes would considerably cut pollution. In all of its activities, the company would be
using renewable power options.
Location
Setik Motors would be based in the United Kingdom. It could have its offices in England.
The company also have a manufacturing factory in Wolverhampton and a large storefront in
Britain wherein selling would be conducted (Asp and Andersson, 2021). Setik Vehicles can offer
electronic components, electrical bikes, and battery packs for electrical vehicles. Such works
may then be available for purchase on the firm's site. Users would be allowed to make purchases
through the corporation's website. The firm plans to grow to include a production facility in the
European Union. It would be allowed to market goods inside a big financial region as a result of
this. Deutschland would host the next production facility. This would be a crucial site for Setik
Vehicles to sell its goods inside the United Kingdom sans incurring additional costs due to cross-
border taxes.
Product Description- Setik Vehicles is a company that focuses on improving electrical
bikes. The item, an electrical bike, would be superior to what has been currently on the industry
in terms of fuelling time and incorporating a system which ensures that the power is consistent in
order to control the velocity of the motorbike at various power stages. It would have the ability to
refill itself while on the road. A constantly dynamic receiver would be connected across the

electrical engine and the lithium polymer cell to assist the charging to be constant since a
consistent velocity potential could be achieved despite the cell is ready to go out of power.
Furthermore, the batteries would be capable to propel the bike for 700 kilometres without
needing to be recharged. On the electrical bike, 2 cells would be installed. While 1 cell is
charged, the other would be utilized to propel the electrical bike. With a touch on the bike, the
cell which has run out of power is replaced with the fully charged one. This would assure that the
user is not frustrated when the battery goes low. A two-year protection would be included with
the batteries. For its electrical bikes, the firm would also offer extra cells as well as other
components. Several electrical motorbike manufacturers would be able to transfer their bike cell
manufacturing to Setik Vehicles (Baderan and Karim, 2022). In this scenario, the company
would be manufacturing superior electrical bike battery for other companies with constant
dynamic controllers. The firm would sell 2 parts, each with various capacity and costs.
Market/Industry Analysis
In the United Kingdom, the motorbike sector is fairly substantial. As per information
recorded by IBIS global 2019, the motorbike business produces at minimum £615 billion in
yearly revenues. With the arrival of electrical bikes, the sector has become even more
competitive. Electrical motorbike purchases are rising in the Britain, whereas conventional bike
purchases are declining, according to the statistics. Electrical bikes delivered 14.513 components
in London by the 3rd quarter of 2020.
PESTEL approach- It examines elements in the exterior corporate world. These
circumstances are outside the control of Setik Vehicles' administration.
 Technical Factors- The depletion of power in lithium-ion cells, which causes
abnormalities in bike velocity, is a crucial problem influencing the manufacture of
electrical bikes. When it comes to electronic motorcycles, several manufacturers overlook
this issue. Setik would assure that the battery on its bikes is consistent during the ride.
This would offer the business a comparative edge on several of its competitors in the
industry. Furthermore, advertising technology has increased as a result of internet
advertising that is both successful and cost-efficient. This is a chance to advertise and
raise client recognition for a low cost in order to make the company successful (Bernaz,
2016).

 Ecological Factors- The Pollution Management Authority of the United Kingdom has
imposed penalties in order to minimise carbon dioxide pollution. Electrical bikes are one
option for companies to minimise carbon dioxide pollution, particularly those that enable
for on-demand services like Uber. This is a chance for electrical bikes to grow in
popularity.
 Legal factors- The company would need distinct authorization in the United Kingdom
and the European Union. Furthermore, the UK also demands bikes to be registered in the
nation, which would slowly affect the corporation's selling activities. Furthermore, the
firm's internet purchasing website would be compelled to follow British information
security laws.
 Political factors- The operations and profitability of Setik Vehicles would be influenced
by governmental issues in the United Kingdom. To begin with, Brexit has an impact on
the operations revenue. The United Kingdom left the European Union and is no longer a
member of the common market. This means that if the business exports goods from the
UK to European nations; it would have to spend cross-border duties. The firm's expense
of conducting operation would rise as a result of such levies. Motorbike and battery costs
in European nations will rise as a result of this. Furthermore, the Britain's employment
practises have evolved as a result of Brexit. Setik Vehicles would establish a production
factory in Deutschland, an European state, to counteract a few of the disadvantages of
Brexit. Setik vehicles would be allowed to navigate in a common industry and sell goods
inside the European Union sans raising their operating expenses (Būmane, 2018).
 Economical Factors- The United Kingdom does have a large industry which could assist
the expansion of electrical bike companies. The nation has a huge GDP, which is rated
sixth in the globe. With such a big Economy, the British administration provides
subsidies to sustainable enterprises in terms of improving the nation's stability. To
demonstrate the firm's fiscal position, Setik Vehicles would qualify for governmental
subsidies. The COVID-19 epidemic, on the other hand, has produced an economical
depression in the United Kingdom. Several enterprises that might previously represented
our clients have reduced their activities as a result of the epidemic. Owing to the current
slump, collective consumption is weak. Bike purchases are declining. Bike shipments fell
by 45.3 percent in January 2021, as per the Bike Trade Group 2021, after delivering

1,781 components. Electrical bike shipments, on the other hand, managed to resist
COVID-19's impacts, increasing by 150 percent in March 2021 opposed to the similar
time the previous season. The United Kingdom has a significant degree of household
revenue and a reasonable job ratio.
 Societal Factors- The Motorbike Trade Group has already been recording a rise in
electrical motorbike shipments and a reduction in conventional bikes with combustible
units from 2017. This is a chance for Setik bikes to grow their business. Furthermore,
buyer habits are shifting toward using the web to get advertising material and make
purchases. This is a chance to offer lithium-ion cells and replacement components via an
internet retail website.
Competitive evaluation- Electrical bikes have a modest level of competitor. Harley-
Davidson, Zero, and Curtiss would be Setik's competitors. In the United Kingdom, Harley-
Davidson and Zero are the most famous motorcycle manufacturers. Yet, the industry is new, and
neither of the competitors has a significant industry presence (Duarte and Cruz-Machado, 2013).
Porter's Five Force Analysis- Inner variables which the administration of Setik vehicles
might impact would be examined using this approach. Clients, rivals, alternative items, and
providers are among such variables.
 Replacements' threats- In the electrical bike sector, this risk is quite significant. Cars,
jogging, combustible powered motorbikes, mass transportation, and cycling are all viable
alternatives. Because of this accessibility, buyers can easily switch to alternative items.
 The threat of prospective newcomers- It is a minor factor owing to the obstacles posed
by economic and technical needs. Most financiers are lacking the technical skills
necessary to begin an electrical bike production plant. Furthermore, most company faces
financial constraints. Another major hurdle is raising the company to the similar quality
as established products.
 Rivalry- In the United Kingdom, the electrical bike sector is fairly competitive. Due to
the limited number of firms in the nation, the company faced modest rivalry. When there
are several vendors on the marketplace, as per competitiveness is fierce. Yet, there are
just a handful electrical bike producers in the United Kingdom. Harley-Davidson, Zero,
and Curtiss are competitors in the area. Electrical bikes are also sold in London by
manufacturers from across the nation, like BMW (Ferreira, Jalali and Ferreira, 2018).

 Vendor Negotiating Power- Since the company's vendors have low vertical
incorporation; it would be a minor factor. Sellers have limited influence over how their
goods are distributed to industrial producers. There are numerous providers in the
business contrasted to a few companies, and firms could readily switch providers.
 Clients' Negotiating Power- The negotiating strength of buyers is a powerful factor.
This is owing to the threat of substitution for buyers, like sedans and bikes with
combustible engines. Buyers have access to high-quality data in the marketplace.
Consumers' negotiating capacity is enhanced when they have access to a large volume of
high-quality facts. In addition, customers have low changing expenses. Users have the
option of switching to competitors or alternatives at a cheap price.
Segmentation Analysis
 Segmentation- It is the split of a marketplace into distinct segments depending on similar
consumer attributes inside a department. Users of Setik vehicles would be classified into
two groups depending on how they purchase and if they are individuals or organizations.
There are physical and digital customers, depending on the method of purchase. Physical
shoppers would acquire the firm's items by attending one of the corporation's stores to
evaluate variants and make a transaction. The firm's items would be purchased by internet
shopping via the agency's website. People that purchase from the company would make
up the B2C industry sector. Companies which would purchase the products would make
up the B2B industry sector (Fowler, Gajewska-De Mattos and Chapman, 2018).
 Targeting- To reach each industry sector, a variety of strategies is employed. Younger
motorcyclists that are engaged on the web would be targeted by digital merchants. This
applies to both university graduates and casual motorcyclists. A large storefront with a
great sight of almost all the firm's items would be used to attract the physical consumer
group. The B2C business sector would be managed via a virtual user's profile that would
bring united clients who possess the firm's bike. B2B would attract companies which plan
to purchase multiple bikes for their activities. Setik bikes would address this demographic
with customisation options.
 Positioning- The Setik company would be marketed as one of the most
advanced electrical bike manufacturer in the industry which is also the most affordable.
To persuade more people, the company should manufacture low-cost versions.

Market Opportunities
According to the market research, there seem to be a number of prospects which should be
pursued. To begin with, the state and sector are working to reduce carbon pollution. By
supplying this item, they would be capable to reduce carbon footprints. Furthermore, customer
perceptions regarding electrical bikes have shifted (Herawati, Dewi and Dewi, 2020). The
Motorbike Trade Group has been recording a rise in electrical motorbikes and a reduction in
conventional bikes with combustible units from 2017. This is a chance for Setik to grow in the
United Kingdom and other nations. Finally, because many people use social media, there is a
chance to advertise and offer electronic bikes, Lithium-ion cells, and replacement components
over the web.
Operating Plan
Setik Vehicles would focus on designing and marketing electronic bikes, as well as related
materials and components, such as cells. The business would procure crude ingredients,
particularly metal, from vendors before assembling the bikes at a Birmingham-based production
facility. Nottingham will have a store, and Britain will have a major shop. Several components
would be transferred to Britain after the goods are completed. Consumers would engage with
marketing associates in shops, which can serve as points of sale. The company's plan is to deliver
650 items in the initial season and 1,000 pieces the following season. The company plans to
grow by constructing a new production facility in Deutschland. This would serve as a point of
entry into the European trading union. Setik Vehicles could confront several hazards which
would obstruct the company's objectives. Each concern would be appropriately managed thanks
to the operational strategy. Tools and machinery would be obtained from suppliers once the
Wolverhampton facility is completed (Kader, Mulyatini and Setianingsih, 2019). Factories and
shops would be equipped with atop photovoltaic cells which can be employed for illumination in
order to save money in the longer term and be lucrative. Power stations and photovoltaic arrays
can be utilized to produce energy for the firm's production facilities. Because finance could be an
issue, growth prospects might well be hampered. In the following season, the business would be
registered on the British Securities Market. This would allow the company to raise sufficient
funds from partners to expand. The company's operational planning is to lower expenses,
enhance efficiency, raise revenues each year, and decrease delivery period such that products
may be delivered quickly after they are produced.

Tactic Actions Aim Obligation
Revenues
should rise
every year
Establish 2 shops and promote
the company.
During the initial season,
offer at minimum 700
vehicles, and in the next
period, market at minimum
800 components.
Head of
advertising
Cut down on
turnaround
period
After manufacturing, send
completed goods to exhibition
areas as soon as possible. In the
event when a company places an
order, goods will be delivered as
soon as possible (King and
Schramme, 2019).
Ascertain that there is
enough area in the shop for
new goods to arrive.
Head of activities
Cost-cutting Collaborate with vendors to get
the best pricing on basic
materials.
Decrease component
expenses such that they do
not surpass $4,000 per
item.
Head of
Purchasing
Photovoltaic cells should be
installed on the roofs of all
buildings, and turbines should be
installed in production lines.
Significantly decrease
administrative expenditures
and function in a
responsible way such that
the company does not emit
1000 kg of carbon dioxide
each year.
Head of activities
Increase overall
performance
Set up 3 manufacturing processes
such that the company can
produce at minimum 3
components every day.
During the initial season,
produce 1,000 components
(Klettner, Clarke and
Boersma, 2014).
Head of activities

Risk and Contingency Plan
There seem to be a number of dangers which might negatively impact the emerging
company's operation. Absence of sufficient money for growth, declining margins, low selling,
input supplies shortages, low grade equipment, and lower grade basic components are only a few
of the hazards. The business would have vulnerability reduction procedures in place to guarantee
that such dangers do not cause the business to collapse. Different employees in the firm would be
in charge of developing mitigation solutions.
Risks Summary Contingency/Mitigation
Strategy
Obligation
Exorbitant
prices
Operational expenses
could be significant,
resulting in low corporate
efficiency (Li and Gu,
2020).
According to the operational
strategy, cost-cutting measures
would be used.
Head of
Administration.
Scarcity of
basic resources
Vendors might fail to
provide basic supplies on
schedule, resulting in
shortfalls.
To prevent shortfalls in the
event that one of the company's
providers fails, the company
would have more than 2
providers.
Head of Purchasing
Investment The funds available might
not be sufficient to fund
growth ambitions.
Register the company on the
London Stock Exchange. 70%
of earnings should be retained
in the initial 5 years.
Partners
Lower selling There could be a high rate
of fluctuation.
Advertising actions that are
effective (Mekonnen and
Larner, 2018)
Head of advertising
Strategies for Sales and Marketing
Setik Vehicles would promote the item in a variety of ways. The 4P's marketing mix could
be used to develop the firm's selling and advertising plan. This framework includes the product,
price, place, and promotion methods which would be employed to enhance revenues of

motorbikes and all other items offered by the company (NGUYEN and NGUYEN, 2020)(Oh and
Penman, 2021).
Marketing Mix-
 Product- Electrical bikes, electronic bike replacement components, and electronic bike
cells would be the corporation's main goods. Those items are of excellent grade. Bikes
would have the ability to power while on the road. There will both high-powered and
low-powered motorcycles available. Lithium-ion cells would have the ability to hold
energy for an extended period of duration. Setik can be the registered trademark for all
goods. All goods, especially cells and support equipment, would be labelled with the
trademark identity so that they can be easily identified in the industry.
 Price- Setik Vehicles would employ a variety of costing tactics in order to entice a large
number of clients to purchase their goods and improve revenues. To begin, the company's
global expansion approach would be based on affordability. This may include developing
new products at a relatively lower cost and progressively raising it. The company would
initially be priced cheaper than comparable options on the industry in order to capture the
industry. Once the sector has been penetrated, the firm would increase costs. For
persons and corporations purchasing more than 5 bikes or cells, the firm would employ a
package selling model (Schillo, Persaud and Jin, 2016). Clients who purchase more than
5 bikes or cells would benefit from this plan, since goods would be sold at a lesser cost.
This method can be utilised to companies who plan to purchase motorbikes for usage in
respective activities. This would entice companies to start making purchases with the
firm. It will assure that enterprises and governmental agencies, like the authorities, follow
the firm's demands.
 Place- This component of the marketing mix concentrates on the company's delivery plan
for ensuring selling expansion. Setik Vehicles' selling strategy would be split into 2 parts:
internet and physical. The company can offer its items in shops as part of its digital
marketing channels. The shops would be successfully positioned across roads in Leicester
and Manchester such that customers could readily reach them. The firm's internet website
would serve as the digital marketing route. Customers that buy goods on the website may
receive complimentary shipping.

 Promotion- This component concentrates on the company's media tactic for persuading
customers to purchase the goods. Setik would advertise their goods through a variety of
methods. To begin, the corporation would hire salesmen to enhance the brand by quality
of recommendation. Sales representatives would go to different organisations who could
be future buyers, like meal service firms, government agencies, and cab services, to
discuss the advantages of utilizing their bikes and how they would save money by
purchasing from the business. Setik Bikes would also be advertised on billboards and in
publications to persuade individuals to purchase the goods. The item would be promoted
through television and audio commercials. Individuals would be directed to shops to buy
goods as a result of such promotions. Online networking advertising would also be used
by the company (Van Rijmenam and Ryan, 2018). In the United Kingdom, for example,
online coverage is over 90%. This demonstrates that the web could influence a large
number of individuals. Advertisements on blogs and other networking platforms would
be sponsored by the business. After viewing the adverts, customers would be directed to
the firm's website. Online advertising targets a large number of individuals in a brief
period. Furthermore, it is inexpensive and therefore will assist the company in lowering
operational expenses and increasing profitability.
Finance and Funding Plans
The starting investment for the company would be £2,000,000. Proprietor payments and a
line of credit would be used to finance this investment. At start, the company would be run by 2
people. Each shareholder would put in £500,000 in exchange for a 50% share in the company.
Investors would approach to a lender for a £1,000,000 mortgage. Inside the following season, the
firm would go global, allowing more individuals to put their money in the organization and raise
cash. Rather than leasing, the company would be able to begin growing by purchasing its
permanent offices and facilities. For the initial 6 weeks, the funds generated in the firm would be
utilised to purchase professional supplies, manufacturing, machineries, natural resources, and
operating costs. Rental, advertising, and wages would account for the majority of the costs.
About 50% of the funds received would be used for asset purchases. Setik will also have greater
funds following registering the enterprises, allowing it to create its own premises rather than
relying on leased ones (Von Peinen, Böhmer and Lindemann, 2018).

Management Team
The administrative staff would have a broad range of experience. Manufacturing director, hr,
operational supervisor, purchasing leader, financial supervisor, and advertising leader would
make up the leadership group. The manufacturing director is an electromagnetic expert who is
also one of the firm founders. I will be the company's second-largest shareholder and Chairman.
I have a good educational experience in administration and leading in the corporate world.
Because all of the executives would account to the Chairman, I will have total control over the
company. Prior to the company expanding, I would also serve as the director of activities. A hrm
and a financial director would be hired, both of whom will have credentials in hrm and
accountancy, correspondingly. On part of the organisation, the hrm would hire and supervise
employees. Accounts and finances would be managed by identical division, which will be led by
the financial supervisor. The advertising directors have at minimum a first-degree in advertising
or administration consulting and 5 years of expertise in handling vehicle goods. To enable all
people of the executive group to contribute, I shall utilise a participatory leading approach.

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