Bonmarche Business Plan for Market Expansion and Exit Strategies

This report presents Bonmarche's business plan, focusing on strategies for market expansion. The plan includes an executive summary, company description, product analysis, market analysis (SWOT and PESTLE), marketing and sales strategies, organizational structure, daily operations, financial planning (sources of finance, start-up expenses, assets, and findings), and exit strategies. The market analysis evaluates internal and external factors impacting the business. The financial plan outlines start-up costs and asset requirements. The exit strategy section explores options such as liquidation, legacy, selling in the open market, and acquisition and mergers. The conclusion suggests that selling in the open market or acquisition/merger are the most appropriate exit strategies, depending on the company's goals. The report provides a detailed overview of Bonmarche's approach to business growth and sustainability.

Planning For Growth

Table of Content
 INTRODUCTION
 Business plan
 Exit strategy for small business
 CONCLUSION
 REFERENCES

Business plan
Executive summary
 Due to Brexit Bonmarche company is facing threat in future expansion so it has planned
to enter into new markets to maintain its profitability. Company has made Business plan
that contain various strategies that are used in launching product in new market. Its has
also analysed internal and external factors of environment that impact on the functioning
of company. Sources of finance has been identified and the best among them has been
stated in business plan of company. By making business plan company is able to protect
itself from threats and gain opportunities to expand its market share, sustain and grow in
the market.

CONTINUE
 Company Description: Bonmarche company operates it business across various nation
and was founded in 1982 by Singh Chima. It is the largest clothing retailer operating its
business across nation having 380 stores and employee more than 4000 people.
 Product design and description: It is one of the largest budget fashion retailer in
United Kingdom that provides wide varieties of women'swear in different available
sizes. Bonmarche company deals in outerwear, nightwear, swimwear and accessories
all designed for larger women.
 Market Analysis: Company has conduct analysis of new market in order to protect
itself from various factor that affects its functioning and sustainability in new market.
Swot and pestle analysis has been done by Bonmarche to promote its growth and
sustainability in the market are as follows:

Swot Analysis:
 Strength: Company strength lies in its wide varieties of product for
women'swear for all size, especially plus size clothing so it can save
itself from threat of Brexit by launching product in new market.
 Weakness: Bonmarche is a small scale company so it has limited
physical, human and financial resources that hinder in expansion of
business in other countries. Therefore, it needs to arrange various
resource to expand its business outside UK.
 Opportunities: As the company is specialized in providing large
size clothing it has opportunities to expand its market share by
launching of product in new market.
 Threats: Due to Brexit, company sales have been adversely
decreased as economy of UK is suffering from recession and less
disposable income with consumers.

Pestle analysis
 Political: Company has to adapt to various policy and rules of other countries in which it is
planning to launch product.
 Economical: Company has to launch product as per economic condition such as income of
consumers and interest rate.
 Social: Product launch in new market should be as per society needs to satisfy their needs
effectively.
 Technological: Company has to update its technology in order to provide qualitative services to
its customers.
 Legal: All legal laws such as employment law, discriminative law should be abide by company
while operating its business.
 Environment: product lunch should be environment friendly and ensure safety of people living
in society.

CONTINUE
 Marketing and sales strategy: It includes various strategies of company to influence its
customer to make purchase and increase sales volume, profitability of the company.
Company has planned various marketing strategies as per target audience and its specific
product to enhance its sales. Company can effectively market its product by building
strong relationship with customers and by offering quality product and services to its
customers at affordable price. It can also market it product through internet as cost of
marketing involved in it is less and at the same time it generates awareness of the product
at large scale within minimum time. Personal selling is another method that can be used
by company to market its product and generate high sales volume.
 Organization and management: Bonmarche is a small scale organization so it has
informal organizational structure and no particular line of responsibilities and authority is
followed by company.

CONTINUE
 .
 Daily operation: Bonmarche company day to day operation is to ensure continuous
supply of raw materials, cash flow of company, purchase and sales of products and last
taking care of customers. Such functions are needs to be performed on daily basis in
order to grow and expand its business in new market.
 Sources of Finance: Bonmarche company can meet its capital needs by its personal
saving or by borrowing from friend and family, by taking loans from bank. Company
can also borrow fund from capitalist venture as they not only provide fund but also
provide useful guidance that help in success and growth of business.
 Financial plan and Projection: Company has to identify various source of finance and
choose best among them in order to launch product in new market

Financial projections and plan
Start-up expenses Amount (£)
Legal 2000
Promotional material 300
Contractors 500
Insurance 50
Computers 400
Others 100
Total 3350

CONTINUE
Start-up assets Amount (£)
Cash required 35000
Start-up inventory 17000
Other current assets 9000
Long term assets 55500
Total assets 116500
Total requirements 120000
Start-up findings Amount (£)
Liabilities 14000
Accounts payable 2000
Other current 7000
Long term liabilities 55000
Total liabilities 78000
Investors 0
Total start-up findings 95000

Exit or succession options for business
 It is important for business to plan exit strategies before to have
some control over small business in the future. There are various
ways in which company can close its operation or various exit
strategies such as:
 Liquidation: It is simplest and quickest way to shut down
operation of business by selling all its asset and paying its
liabilities. Company has to use all of its cash and asset in paying
debts to shareholders and creditors of the company.
 Advantages: It is one of the easiest and simplest method to close
down company operation and not to worry about it in the future.
 Drawback: Liquidation of company adversely impact on
relationship with customers, employees and all people involved
in day to day operation.

CONTINUE
 Legacy: In it the entrepreneurs wants to maintain legacy by passing business control to
its child or other member of family. It is attractive exit strategies as its groom
successors over time. It is the best way to run and preserve name of business for long
term by passing it to next generation.
 Advantages: Helps in preserve of name of business and provide control over it even
after exit.
 Drawback: Members of family does not possess skills that is required to manage
business.
 Sell business in open market: It is most useful and popular exit strategy of small
business owner to sell business in open market. By selling business in open market
owner get specific amount for its assets by selling it at certain price.