New Venture Business Plan: Apex Home Decor in Romanian Market

This report details a comprehensive business plan for Apex Home Decor, a new venture in Romania, focusing on recycling waste materials into artistic and innovative home decor products. The plan addresses key aspects such as recognizing market opportunities, developing a viable business model, and outlining financial, marketing, and organizational strategies. The business aims to capitalize on the growing trend of interior design and the demand for unique, handcrafted items. The plan includes a detailed analysis of the Romanian market, the company's purpose, target customers, and revenue models. It also covers marketing strategies, including market size analysis, customer lifetime value, and sales and distribution models. The report further explores financing options, operational management, and potential exit strategies, providing a complete roadmap for the venture's success.

New Venture Business
Plan

Table of Contents
INTRODUCTION ..........................................................................................................................3
Developing the Business Idea and Starting a New Venture............................................................3
Recognising the business opportunity.........................................................................................3
Overview of the business plan....................................................................................................5
The marketing plan.....................................................................................................................6
The financial plan........................................................................................................................7
The organisational plan...............................................................................................................7
Financing a New Venture................................................................................................................7
Sources of new capital................................................................................................................7
Management of working capital to finance the business............................................................8
Equity Markets............................................................................................................................8
Managing the New Venture.............................................................................................................8
Managing the early operations....................................................................................................8
Managing growth and expansion................................................................................................8
Coping with too much business - the dangers of over-trading....................................................8
Life in a recession.......................................................................................................................8
Exit routes and ending the venture..............................................................................................8
CONCLUSION ...............................................................................................................................9
REFERNCES:................................................................................................................................10
Books and Journals:..................................................................................................................10

INTRODUCTION
Business plan is plan which is made by an individual in order to start a new business or
for existing business to run it in smooth manner (Vaníčková and Szczepańska-Woszczyna,
2020). This is a document in written format which contains the objectives of a business, the
process of attaining those objectives and time period allotted to achieve those objectives. This
report contains a business plan for new venture business which will be known as Apex Home
Decor in Romania. It is of recycling waste papers and other materials to create artistic useful
items for home decor. It contains all the plans which are required in a business planning such as
financial planning, market planning, organisational planning and many more.
Developing the Business Idea and Starting a New Venture
Recognising the business opportunity
It is observed in the market that there are so many waste items which are collected in the
houses which they throw in the waste and creates pollution in the country. If that waste has been
collected by an organisation to recycle them in a beautiful material it will led to effective
utilisation of resources in an organisation (Tran, 2020). If company appoints a person to collect
that waste from door to door and offer them a price in response of that waste. It is good for the
community and for the company too. The artistic items with innovative ideas are in high demand
in people to decorate their homes.
Company Purpose
The purpose of the company is to collect and clean waste from the society and recycle
them in innovative products which can be used by people of the society. The company helps the
country to recycle waste and use the resources of the country in sustainable way.
Problem of customers
Romania is a country in which the business is going to be open in the market. It is
observed that the country has a problem of unequal distribution of income in which rich are very
rich and poor are very poor. The people in Romania like hand made products and whole country
is full of innovation practices. They need some beautiful products in order to decorate their
home. For the same purpose they need to go to artisan to artisan in order to select an innovative
product. There are less choices with the customer to select a product.

In order to solve this problem of customers in Romania, the owner wants to open a grand
store in Romania which employ the famous artisans of the country to provide better products to
the customers at one place. It will provide them better option to select the product according to
their houses with wide variety of choices.
Solution
The owner observed that the people is facing a problem of collecting that waste in the
houses and if they throw in the garbage it creates problem of pollution in the country. It became
the major problem or pain of customers in the society. It gave the opportunity to business to start
this kind of innovative business. It is observed in the society there are artisans who are
unemployed and need some work to earn their livelihood. The company can use their creativity
in order to start the business and sale their products to customers who have good living standards
and spend a lot on creative items. This will help the society in several ways and create a good
image of the company in eyes of the society which will gave more and more business to the
company. The product will provide a good value to them as well as society. In terms of money as
they were made up of waste material then it will cost low to the customers and an innovative
product with low cost is a value of money for the customers (Sadeh and Dvir, 2020).
The business physically sits in the department of Home Decor. The products can be of
some use or for decoration purpose. A beautiful home satisfy customers in several ways. The
business will be considered in interior industry and with the increase trend of interior designing
of homes and offices in the market, interior designers and builder can became loyal customers of
the business organisation. There are various organisations in the market who are working in this
industry in same type of products but they do not have that capacity of production.
Why Now
In the recent times there was not such trend of interior designing in the market. The
organisations and homes are just made by builders in general way. Traditional people like to
decorate their workplace and homes in traditional manner. But with increase in living standards
of the society, people are becoming more busy and does not have time to waste in decoration and
all. It led to increase in trend and demand of interior designer in the country. Interior designers
are appointed to design the home and office in such a way that they fulfil the purpose of building
that place. In order to design homes and offices they need to explore several places for home
decor products (Rice and Noyes, 2021). Collaboration with some famous interior designers of

the country will led to increase in business of the organisation. In the recent times the trend for
home décor items have been increasing very rapidly.
Overview of the business plan
Product
The products which are involved in this business will be different nature they can either
be of use of the consumer or for the decoration purpose only. There will be variety of product
which are being offered to the customers but it is decided by the company that the products will
be used for the purpose of decoration of home and offices. In order ton plan a good start of the
venture it is suggested for the business to have a collaboration with some of the interior designers
in the market (Reyes-Mercado and Verma, 2020).
Business Model
There are various models which are used in order to develop a business plan which are
elaborated below:
 Revenue model – Revenue model is a model which is used to identify various sources of
revenue in the organisation. It helps to identify the source to use for revenue, value it
offers, the ways to price that value and many more.
 Pricing – According to this model, a price of the product should be decided in accordance
with the value it provides to the consumers. In this case it is difficult to ascertain the price
according to value the product provide hence it will be decided on the basis of
satisfaction it will provide to the customers.
 Average account size and/or lifetime value: In the customer lifetime value model is a
model which helps a business to determine the lifetime value a company can generate
from its marketing activities.
 Sales & distribution model – This model helps an organisation to distribute or sale the
products to the customers it includes various techniques which are to be used by the
business in order to sale the product.
 Customer/pipeline list – The target customer of the business are high class people of the
society or the people who love to buy innovative products. It will help the organisation to
change the lead into customers with the help of their representatives (Jain and
Khandelwal, 2020).

The Razor model will be applied for revenue model:
The razor model is a pricing strategy where reliable products are sold in order (or price)
and combined cost advantage.
Points and advertising systems, also known as razor and blade action plans, are designed
to provide reliable and repeatable payments by putting shop owners on stage or using tools that
hang over time. It is often used with consumables such as razors and razors.
This idea is similar to "Premium". Computer and server elements (e.g. emails, games or
information) are separated for free on the assumption that you will later exchange money for
upgraded benefits or add-ons.
The greatest danger of sharp blades and a plan of action using blades is competition. In
this way, organizations can maintain (and maintain) consumable syndicates by preventing
bidders from selling items that match solid products. For example, PC printer manufacturers
have a hard time using third-party ink cartridges, while razor blade manufacturers are cheaper
and prevent sharp edge tips from matching the razor.
Brands, licenses, and contracts allow businesses to compete long enough to become
industry innovators. Körig is an exact image of an organization that has benefited from this
model by preventing competitors from selling related products. They held a patent on the K-Mug
Espresso Case until 2012, so they appreciated the significant benefits and low storage costs.
However, after the patent expired, applicants came to the market with a K-cup, removing the
benefits and a piece of Körig pie.
The marketing plan
Market Size
As the business venture is newly opened in the organisation, it is ascertained that the
organisation have the plan to cover whole country of Romania by marketing through online
sources and sell their products. In order to completely understand the size of the market, three
metrics can be used by a business. These metrics are explained below:
TAM(Total Addressable Market) - It refers to total market demand of the business for their
product and services. In order to establish the business Apex Home decor is planning to cover
full market of Romania through online trading. Although the online sources will cover whole
world to sale the products of company (Isabelle, 2020).

SAM (Serviceable Addressable Market) – Due to the geographical limitation, the serviceable
addressable market will be considered only Romania for the business of Apex Home Decor.
SOM (Serviceable Obtainable Market) – In order to cover the full market, it is essential for the
company to identify the competitors in the market and the area which is influenced from the
marketing activities of Apex Home Decor will be considered as Serviceable Obtainable Market.
In marketing strategy, customer lifetime model will be use
The reason for the customer's life expectancy is to assess the economic value of each
customer. Wear Peppers and Martha Rogers say, "Some customers are more likely than others."
The customer lifetime score depends on customer performance or CP (the ratio between the
revenue and expenses associated with the customer relationship over a predetermined period of
time). CP evaluates the past and CLV looks to the future. So, while CLV may be worth more
when choosing a design director, it's a lot more difficult to measure.
Customer lifetime value:
It is the present value of future revenue attributable to customers throughout their
relationship with the organization.
Present value is a limited number of future incomes. All future income increases by a
carefully selected number that does not exceed the pre-concentration income. The increasing
factor is how you limit your money in the long run. The time-sensitive value of money implicitly
conveys that everyone wants to get paid as soon as possible, but wants to pay off faster.
Depending on the rate of increase you choose (e.g. 10% per year) and before earning income, we
duplicate the factor each time For example, cash received over a long period of time should be
more limited than cash received after 5 years.
This is an upper limit on the amount a company will pay to build a customer relationship,
and it is an upper limit on the amount a company will pay in order not to lose the customer
relationship. If you view customer relationships as a solid resource, CLV will represent the value
of your financial resources.
The CLV-based division can be combined with the Handbag Equity (SOW) to recognize
"CLV is high but SOW is low" customers. However, you can increase your organization's profits
by promoting your assets to these customers.
Competition

As the business is of general nature, it has so many competitors in the market. In order to survive
in the market it is essential for the company to offer innovative and better product in the market
with some competitive advantage. It will help the organisation to sustain in the market. The
competitors, who can compete the business of Apex Home Decor in the market of Romania are:
 Simona Ungurean Homestyling
 GROSUARTSTUDIO
 Ioana Tomescu
 NOIA Interiors
 Studio AP
In order to take competitive advantage in the market, the company offers innovative
products to their customers. Innovation is the most important factor which attracts customers to
the organisation. As the company helps so many artisans by selling their innovative products in
the market, they can gain sympathy of the customer which will also work as competitive
advantage for the customers (Hrynyshyn, 2020).
The financial plan
Financials
* P&L
* Balance sheet
* Cash flow
* Cap table
* The deal
Income statement
2020
Turnover 3 189711
Less cost of sales:
Material Cost 42597
Production Cost 15231

Labour Cost 50758
108586
Gross profit 81125 GP % = 42.76%
Less Expenses:
Administrative expenses 13751
Other operating overheads 22374
Interest 1943
Total Overheads 4 38068
Profit/(loss) for the financial year 43057 NP %= 22.70%
Balance sheet
2020
Total
£153,647
Non Current assets
Intangible assets 5,793
Tangible assets 52,812
Investments 10,693
69,298
Current assets
Stocks 28,571
Trade debtors 26,367
Short term deposits 14,779
Cash at bank and in hand 14,632
84,349
Current liabilities
Bank loans and overdrafts 9,610
Trade creditors 19,493
Other Creditors 678
Income tax payable 3,585
Other creditors including
tax and social security 4,562
37,928
working capital 46,421
Total assets less current
liabilities 115,719
Non Current Liabilities
Bank loans and overdrafts 16,506

Other Liabilities 7,304
23,810
Provisions for liabilities 8,094
Net assets 83,815
Capital and reserves
Called up share capital 39,436
Reserves 1322
Retained earnings 43,057
Total equity 83,815
The organisational plan
In order to establish an organisation, it is essential to have a team of employees to address
several problems and manage operations of the organisation. The organisation will work with a
proper structure. In which founder of the business will be considered as on top position and will
be responsible to get the business registered according to law (Granz, Henn and Lutz, 2020).
After them the board of directors or advisors of the company who will be liable to take major
decisions of the organisation. After them the managers of various department with proper
qualification and then after the employees who will work hard to achieve objectives which are
assigned to them.
Financing a New Venture
Sources of new capital
There are several sources in the market to arrange new capital for the business. Some of the
sources to arrange new capital for a business are given below:
Personal investment: Personal investment is the investment made by the founder of the company
in order to start the business. It is the saving of the owner from which they decide to open an
organisation.
Venture capital: Venture Capital refers to the source of capital which is arranged from private
equity and other financing activities.
Bank loans – In order to start a business, bank provides loan for the purpose of same. It is the
most secured source to be considered to arrange capital for the business.

Management of working capital to finance the business
In order to manage the business in effective manner it is essential for business to mange the
capital of the organisation (Gish, 2020). Every business needs to manage its working capital in
order to run their day to day expenses. In order to manage working capital an organisation need
to maintain in written or in digital format about the day to day expenses of business. They can
use various ways to manage and save working capital like payment to vendors on time to save
interest, improvement of receivable process, management of inventory purchase and many more
to include in it.
Equity Markets
The company can also use equity market to finance the working of the organisation. They can
issue their shares in the general public and invite people to invest their savings and became
shareholders of the organisation.
Managing the New Venture
In order to properly manage the new business business Venture the company can take following
steps in the organisation.
Managing the early operations
The start up of the new venture can be managed by the organisation by following several
guidelines in the organisation. It is essential to manage a new venture that they have a written
business plan which clarifies the essential steps which should be taken by the organisation. It is
required to keep tracking the operations of the organisation to find the errors and omission at
very early stage. When the organisation is starting at large level it is advised to avoid
micromanaging instead to delegate work to the employees to manage the large operations of the
organisation (Evers and Andersson, 2021).
Managing growth and expansion
In order to manage the growth and expansion op an organisation, a company can use two ways
that is management of business operations in regular manner and introduction of innovation in
the product and services of the organisation on regular basis. In order to expand business in the
market it is essential for Apex home décor to manage the day to day operations of company in
effective as well as efficient manner. By providing effective as well as efficient product and
service to the customers help the organisation to have mouth to mouth publicity which results in

growth of the company. Not only this the company should also need to provide a proper pre as
well as post sale services to the customers top attract them towards their organisation. The
innovation in the organisation in regular interval also attract customers in the organisation and
became a key to success. It also provides competitive advantage to the company.
Coping with too much business - the dangers of over-trading
Trading going on in the organisation is good for the business but over-trading is also dangerous
for any business. Over-trading is a situation of a business in which the company is trading in
overly manner (Elia, Margherita and Passiante, 2020). It increase the pressure on production
department of the organisation. In order to complete the orders all the work will be completed in
a urgent manner which reduces the quality of product and services of the organisation. The low
quality of products offered by the company will give business to the organisation only for the
short period of time only. The company will not be able to have loyal customers for the
company. Not only this, over-trading also affect the working of the employees and can affect the
talent management in the organisation.
Life in a recession
Recession in any country affects almost all industry. In Romania, the country is also
facing a time of recession due the lock down because of pandemic. The recession increases the
operating cost of a business which affects prices of products and services. It rise the prices which
lowers the demand of the products. Recession also causes unemployment in the country which
decreases the disposable income of the consumers. In this situation the consumers start savings
by which it can lower the equity rate of the company in the market. This can effect the profits of
the company in adverse manner (Divakaran, 2021).
Exit routes and ending the venture
There are several routes an individual can use in order to exit from a business venture. In the
present scenario in order to end this business venture and exit from the business the company can
use various sources such as liquidation of the company, sale the company to another persons,
merger, initial public offering and acquisition of company by another person.