ACCG308 - Pro-Comfort Venture: 3-Year Business Plan for B-Corp

This project report details a comprehensive three-year business plan for the Pro-Comfort venture, a newly conceived company aiming for B-Corporation status. The plan begins with a business pitch suitable for a crowdfunding platform, outlining the product, Pro-Comfort (a pillow, blanket, and headrest combination), and four tiers of backer rewards. It then analyzes the business opportunity, targeting the Australian market, highlighting customer needs, and social benefits. The report includes marketing strategies using the marketing mix model, operational strategies focusing on distribution and resource management, and financial plans with P&L analysis. The plan also addresses customer need and target market, the marketing strategy, operational strategy, and financial plans including financial planning for the budget which also includes the budget planning and identification of the net profit. The financial strategy includes the financial planning for the budget which also includes the budget planning and identification of the net profit. The business plan is a project for ACCG308 course.

Running head: CORPORATE ACCOUNTING AND BUSINESS ADVISORY
Corporate Accounting and Business Advisory
Name of the student:
Name of the University:
Author’s Note:

1
CORPORATE ACCOUNTING AND BUSINESS ADVISORY
Executive summary
The project report sheds light on the development of the business plan for a newly invented
company or a venture. This includes the identification of the fund resources through the
Crowed funding for the project. The report identifies the marketing strategy which enables
the company sell their product through promoting them in market, the operational strategy for
achieving the effectiveness into the operational and production activities and lastly the
financing strategy for evaluating the financial resources. The financial planning has helped
the company to identify the financial requirement, based on which the financial statements
have been forecasted and profitability judged.

2
CORPORATE ACCOUNTING AND BUSINESS ADVISORY
Table of Contents
Introduction................................................................................................................................3
Business plan pitch.....................................................................................................................3
Business opportunity..................................................................................................................5
Business opportunity tested........................................................................................................6
Marketing strategy.....................................................................................................................7
Operational strategy...................................................................................................................8
Financial plans...........................................................................................................................9
Conclusion................................................................................................................................11
References................................................................................................................................12

3
CORPORATE ACCOUNTING AND BUSINESS ADVISORY
Introduction
Adoption of a business plan refers to the formulation of the strategy that provides idea
on the budget cost and the fund required for the future project. The business plan includes the
development of the marketing strategy, resource management strategy, operational strategy
and finally the financial strategy. The financial strategy includes the financial planning for the
budget which also includes the budget planning and identification of the net profit. This helps
in evaluating the profitability of the product or service that are going to offer in the market.
Hence the report undertakes a business planning through identifying the fund resource,
marketing strategy and the operational strategy. The project explains business opportunity
where the business expansion planning has been done. The marketing strategy has been
formulated to promote the product, operational strategy has been formulated to achieve cost
efficiency and the financial planning has been developed to identify the finance required for
the project.
Business plan pitch
The business plan has been formulated based on the product planning in future. The
product has been identified through the explanation of the benefit associated with the product.
However the in the different segment a product description has been made into this report.
The business plan has been made before launching all in one comfort device which can be
used as pillow, blanket and headrest. The product has been named as Pro-Comfort as this
defines comfort to all segment of target audience.
Backer rewards:
The venture has decided to acquire fund through the crowd sourcing. The company
has decided to acquire required fund through 4 ways such as Reward crowd funding, debt
crowd funding, Equity crowd funding and donation crowd funding. All the crowding sources

4
CORPORATE ACCOUNTING AND BUSINESS ADVISORY
will be rewarded in different ways by the company (Belleflamme, Lamber & Schwienbacher,
2014).
Reward crowd funding: The rewards crowd funding is the funding source where the funding
has been collected from the people using a common platform and the investors get non-
financial benefit in return. However, for the new project funding the company has used a
online public platform named Kickstarter where the investors are given non-financial reward
in return of the investor’s donation for the fund. Gifts will be used as the non-financial
benefit for the investors acquired from the online plat form. Free sample of the product will
be given in exchange of funding (Frydrych, Bock & Kinder, 2014).
Debt crowd funding: Through this process the funding will be acquired in exchange of
monetary interest. The company will give interest on the borrowed money to their crowd
financers (Meyskens & Bird, 2015).
Equity crowd funding: The Company will acquire fund for their new project through offering
equity partnership to the crowd financers. An equity crowd funder will invest their money in
exchange of share or small stake in the business. The funding will be collected in exchange of
the business stake (Ibrahim, 2015).
Reward system: following three methods of crowd funding the company has generated a
scope for fund resources which enabled the company to give reward in exchange. Funding
through reward crowding will be rewarded through the gift items and offering free product
distribution or the discount on the product purchase. The Equity funder will be rewarded
through offering business stake and the debt funder will be rewarded through giving interest
on funding money (Freedman & Nutting, 2015).

5
CORPORATE ACCOUNTING AND BUSINESS ADVISORY
Business opportunity
Customer need and target market:
Identifying the customer’s need and the demand for the product into the market the
company develops an innovative product that would reduce the effort of the person. With
offering compact advantages within a single product the company has generated an
opportunity to achieve a large target market (Aghdaie & Alimardani, 2015).
At the initial stage the company has planned to launch this product into Perth,
Australia. The company identifies their target market into Australia where the company has
planned to open a store in a competitive market. Latter on the product has a plan for selling
through the online. However, for the target audience every segment of the people has been
targeted as customer
Social benefit:
Through the crowd funding the external investors will be benefited to earn. That
generates an opportunity for them to become a part into an innovative business process. With
that the company has a plan of following environmental management accounting system
(Jamil & Mohamed, 2015).
Further the company follows high technology in the production process which
reduces the carbon emission in the air. Along with that the company offers their stake holders
to enjoy comfort through buying this innovative product. The customer will be benefited to
use a technology with provide a compact comfort and reduces effort. However with the
participation in the funding process the investors will be benefited with the different reward
system and creates an opportunity for long term relationship.

6
CORPORATE ACCOUNTING AND BUSINESS ADVISORY
Relevant megatrends:
The Australia represents a population around 25.09 million till 2019. However the
Perth itself represents 2.39 million. Being the capital of the Western Australia the state gives
opportunity to sell this product into urban market. However the growth rate of 14.3 %
estimation has created opportunity for the company to identify more consumers into the
market (Worldpopulationreview.com, 2019). Further the retail industry represents a
forecasted growth rate at 1.3%. This in turn stimulates the fact of increasing consumption of
the retail product.
Similar successful campaign:
Another similar company which has collected their fund through the crowd funding is
“Pocket change “which offered similar kind of product. However the target market for the
product is in UK and the product has been sold at the premium segment through following
pricing method. The company represents a similar kind of product which has been priced
around $30 each. However the company did not capture the market due to the high price of
the product. The company named Pocket changer launched a similar kind of product namely
Tuck. The capital has been invested by the company 15000. This has been recognised as
initial funding goal as this amount has been coated for crowd funding through online
platform. However the company collects $68458 funding for the initial investment from the
1131 backers. Currently the company has been rated globally which has made their presence
strong into the market.
Business opportunity tested
Innovative product: As the product is unique and new into the market, the product has an
opportunity of capturing the market quickly.

7
CORPORATE ACCOUNTING AND BUSINESS ADVISORY
Low cost: with having a competitor intio the market the company sells their product at a
lower cost. This may enhance the opportunity of achieving more customers at a quick time
and achieving a competitive advantage (Namada, 2018).
Benefit: The Company has planned to launch a product which holds a benefit of being
compact in nature. With the association of the technology the product generates scope of
acquiring market quickly.
A quantitative data collection method has been followed while ensuring the demand
for the product into the market. However the survey has been done depending on the
identification of the increase in demand due to low cost of the product. With having the
competitive advantage through following low cost method the company generates a good
business prospective and customer’s attraction into the Australian market.
Marketing strategy
The marketing strategy includes the strategy formation to promote the product into the
market and gain awareness. The marketing strategy has been formulated through using
marketing mix model.
Product: The product is a compact comfort product which has been given as name as Pro-
Comfort. Being a compact solution the product offers many usability option, such as the
product can be used pillow or as blanket or headrest (Londhe, 2014).
Price: at the initial stage a discounted pricing strategy will be followed while after 1 year a
commutative pricing strategy will be followed in to the competitive market (Danziger, Hadar
& Morwitz, 2014).
Place: Urban or market are of Perth has been chosen for selling the product. However the
online selling option also identifies their virtual presence into the consumer’s market.

8
CORPORATE ACCOUNTING AND BUSINESS ADVISORY
Promotion: An indirect marketing strategy will be followed to promote the product. The
company has a plan to market their product through online and social media. However a
promotional strategy will be followed at the initial days where the benefit of using this
product will be represented (Key & Czaplewski, 2017).
Sales force: A 50 people of sales and promotion team will be formulated through hiring the
candidates. The sales team will ha a responsibility of enhancing the sells for the company. A
training and development strategy will be followed to enhance the skill of marketing selling
the product (Sinha, Khatkar, & Gupta, 2014).
Social media and free publicity:
For the promotional purpose the company adopts free social platform where the
awareness can be generated through posting pictures of the product and the benefit of the
product. The indirect marketing will be done through sending mails and massages for the
awareness (Constantinides, 2014).
Measurement and information:
The information collected from the public resources and via email marketing and
feedbacks this has been recognised that the product has a reasonable growth opportunity in
near future. The impact of the marketing tools has been analysed through viewing the sales at
the forecasted period. The primary data has been collected through surveying customers
about their choice and need of modification (ills, 2014).
Operational strategy
The operational strategy includes the team management, operational activity
management, distribution management and supply chain management (Rajasekar, 2014).

9
CORPORATE ACCOUNTING AND BUSINESS ADVISORY
For achieving the better distribution strategy as to achieve the cost efficiency the
company will start selling their product into the competitive market and alongside through
the online website and applications. To achieve the effective resource management and the
effective supply chain management the company has planned to use local resource s which
would help Teh Company to achieve cost efficiency into the business process (Monczka,
Handfield & Giunipero, 2015).
Operational structure:
The company has decided the hire 5 sales people at the initial stage to sell their
product. The company would develop a management team into the organization which would
help the company to segment the responsibility of work and bring effectiveness into the
organization. However with the formation of operational strategy there is high chance for
investors to realise risk of losing money into the organization. Further the operational risk
has been identified in the production process. And the company is a small and new company
therefore the company does not hold any experience into the market. This can make their
decision ineffective. Along with that the inefficient employees will also has an impact over
the production process. Hence the employees are needed to be trained through developing a
training and development program into the organization (Liao e al.).
Financial plans
P&L (income statement analysis):
From the income statement this has been recognised that the company generates a
positive amount of net profit amounting 3192 at the first year. The growth of the income has
been recognised from the next year onward as the sales or the revenue represents a value of
$29700 and $44550 at the respective next 2 forecasted period. This results in high net profit
of $13525 on the 2nd year and $23858 on the 3rd year. However, during the forecaster the

10
CORPORATE ACCOUNTING AND BUSINESS ADVISORY
variable cost are being assumed to be increased at the 1.5% rate on each year and the
depreciation has been calculated at 10% using straight line method.
Balance sheet:
The balance sheet represents a strong position of the company into the market at he
forecasted period. The forecasted balance sheet rep[resents a strong current assets into the
company’s account. This reflects the scope of meeting current liability and generates an
investment opportunity. During the forecasted period the fixed assets has shown an increase
in each forecasted period. This represents the possibility of achieving strong market value in
near future. The balance sheet represents a long term dept into the 1st forecasted as the
company holds a fund sourcing through issuing debt into the crowed.
Capital requirements and funding plan:
The project planning realises a fund requirement of $15000 at the initial stage. The
estimated variable cost reflects a value of $5855 while the fixed cost reflects a value at
$4435. Rest of the money will be kept as working capital. The project has been planned to be
funded through crowed funding using three crowed funding methods. However the company
has targeted to acquire main portion of funding via crowed sourcing campaign. This will be
done through launching offer into the Kickstarter platform where the crowed will act as an
investor for the company to bring the project into life. The investors will be offered to invest
money within a mentioned fund deadline.
Justification:
The project is proved to be a profitable project as the company realises profit in the
first year itself. The balance sheet also represents a possibility of achieving a strong position
for the company. With reference to the income valuation method the company proves to more
profitable into long run and the income statement represents a high net profit in the 3rd year.

11
CORPORATE ACCOUNTING AND BUSINESS ADVISORY
Conclusion
The project develops idea on the crowed sourcing were the money or the fund has
been collected from the crowed using different method. The report addresses towards the
formation of the business plan for a new company where the organizational structure has
been identified. The report develops a marketing strategy, resource planning and operational
strategy. The report also explains the financial planning as the main component of the project.
Depending on the forecasted financial information the profitability has been judged.