Business Plan: Entrepreneurship & Innovation - UV Light Towel Dryer

This report presents a comprehensive business plan for "Design 4 U," focusing on a towel dryer equipped with UV lights for disinfection. The plan covers various aspects, starting with an executive summary highlighting the problem of towel hygiene and the proposed solution. It includes a detailed market analysis using PESTEL and Porter's 5+3 forces, defining the target market and competitive landscape. The report further outlines the company's management structure, financial projections, production planning, and operational strategies. Key elements include financial forecasts, sales strategies, and risk mitigation plans, culminating in a development strategy for future expansion and an exit strategy. The findings and recommendations emphasize the potential for innovation and market growth within the home appliance industry.

ENTREPRENEURSHIP AND INNOVATION
Towel Dryer with UV lights

Table of Contents
1.0 EXECUTIVE SUMMERY........................................................................................................9
1.1 PROBLEMS..........................................................................................................................9
1.2 SOLUTION...........................................................................................................................9
1.3 MARKET..............................................................................................................................9
1.4 COMPETITION....................................................................................................................9
2.0 OVERVIEW OF IDEA GENERATION.................................................................................10
2.1 PROBLEM WORTH SOLVING........................................................................................10
2.2 OUR SOLUTION................................................................................................................10
2.3 ROADMAP/FUTURE PLAN.............................................................................................10
2.4 PRODUCTS AND SERVICES...........................................................................................10
2.5 SIZE OF THE BUSINESS..................................................................................................11
2.6 BACKGROUND OF ENTREPRENEURS.........................................................................11
2.7 IDEA GENERATION PROCESS.......................................................................................12
2.8 INNOVATION AND CREATIVITY DELVOPMENT PROCESS...................................13
3.0 MARKET ANALYSIS SUMMERY......................................................................................14
3.1 BUSINESS ENVIRONMENT ANALYSIS.......................................................................14
3.1.1 PESTEL ANALYSIS...................................................................................................14
3.1.2 PORTER’S 5+3 FORCES ANALYSIS.......................................................................15
3.2 MARKET SEGMENTATION............................................................................................16

3.3 TARGET MARKET SEGMENT STRATEGY..................................................................16
3.3.1 MARKET NEEDS........................................................................................................16
3.3.2 MARKET TRENDS.....................................................................................................17
3.3.3 MARKET GROWTH...................................................................................................17
3.3.4 DIFFERENTIATION – PRODUCT DIFFERENTIATION/ COST LEADERSHIP. .17
3.3.5 POSITIONING – INCLUDING POSITIONING MAP OR STRATEGY CANVAS.18
3.3.6 TAGLINE - A SAFE AND HEALTHY FUTURE......................................................19
3.3.7. PROPRIETARY INTELLECTUAL PROPERTY AND IP STRATEGY..................19
3.4 COMPETITOR ANALYSIS...............................................................................................19
3.4.1 VALUE CHAIN ANALYSIS AND BCG MATRIX...................................................19
3.4.2 INDUSTRY ANALYSIS AND COMPETITOR’S ANALYSIS.................................21
3.4.3 WHAT ARE OUR COMPETITIVE ADVANTAGES?..............................................21
3.4.4 COMPETITORS AND ALTERNATIVES..................................................................21
3.5 WHAT ARE THE UNIQUE SELLING PREPOSITIONS (USPS)................................21
3.6 MARKETING MIX.........................................................................................................22
3.7 MARKETING PLAN..........................................................................................................22
3.7.1 MARKETING PLANS FOR YEAR............................................................................22
3.7.2 MARKETING BUDGET.............................................................................................24
3.8 SALES FORECAST........................................................................................................24
3.9 MARKETING STRATEGY AND CONTINGENCY PLANS......................................25

3.10 FUTURE MARKET DELVOPMENT PLANS............................................................25
4.0 COMPANY AND MANAGEMENT SUMMERY.................................................................26
4.1 COMPANY PROFILE........................................................................................................26
4.2 LEGAL FORMATION (OWNERSHIP)............................................................................26
4.3 VISION STATEMENT, MISSION STAMEN AND CORE VALUES.............................26
4.4 ORGANIZATIONAL STRUCTURE.................................................................................27
4.5 CAPITAL INVESTMENT..................................................................................................27
4.6 START-UP COST...............................................................................................................27
4.7 BUSINESS MANAGEMENT.............................................................................................28
4.7.1 KEY PERSONAL WITH RESPONSIBILITIES.........................................................28
4.7.2 HEALTH AND SAFETY POLICY.............................................................................28
4.7.3 WORKING POLICY....................................................................................................28
4.7.4 MANAGEMENT TEAM.............................................................................................28
4.8 COMPANY POLICY..........................................................................................................29
4.8.1 CODE OF ETHICS......................................................................................................29
4.8.2 INVESTOR RELATIONSHIPS POLICY...................................................................29
4.8.3 CORPORATE SOCIAL RESPONSIBILITY..............................................................30
4.8.4 DONATION AND CHARITY POLICY.....................................................................30
4.8.5 GOVERNMENT RULES AND REGULATION........................................................30
4.8.6 INTELLECTUAL PROPERTY RIGHTS....................................................................30

4.9 BUSINESS MODEL...........................................................................................................31
4.9.1 MAIN CORE BUSINESS MODEL.................................................................................31
4.9.2 CONSUMER RETENTION MODEL.........................................................................32
5.0 FINANCIAL PLAN SUMMERY...........................................................................................33
5.1 CASH REQUIRED.............................................................................................................33
5.1.1 START-UP COST AND CASH REQUIREMENTS...................................................33
5.1.2 WORKING CAPITAL COST......................................................................................34
5.2 SOURCE OF FINANCE.....................................................................................................34
5.3 COMPANY OVERHEAD COST.......................................................................................35
5.3.1 PRODUCTION COST.................................................................................................35
5.3.2 SALES AND DISTRIBUTION COST........................................................................35
5.4 PROJECT APPRAISAL......................................................................................................36
5.4.1. TECHNICAL AND TECHNOLOGICAL..................................................................36
5.4.2 FINANCIAL VIABILITY............................................................................................36
5.5 FINANCIAL PLANNING..................................................................................................37
5.5.1 SALES PLANNING.....................................................................................................37
5.7.2 COST PLANNING.......................................................................................................38
5.7.3 PROFITABILITY.........................................................................................................38
5.8 FINANCIAL PLANNING – FINANCING PERSPECTIVE.............................................38
5.8.1 INITIAL INVESTMENT.............................................................................................38

5.8.2 WORKING CAPITAL.................................................................................................38
5.8.3 PROJECTED PROFIT AND LOSS STATEMENT....................................................39
5.8.4 PROJECTED CASH FLOW........................................................................................41
5.8.5 PROJECTED BALANCE SHEET...............................................................................42
5.9 FUTURE – FINANCIAL PROSPECTIVE.........................................................................43
5.9.1. YEAR 2 & 3 EXPANSION.........................................................................................43
5.9.2 YEAR 4 EXPANSION.................................................................................................43
5.9.3 YEAR 5 EXPANSION.................................................................................................43
5.10 BUSINESS FINANCIAL RISK AND CONTINGENCY................................................44
5.10.1 FINANCIAL RISK AND MITIGATING CONTROLS............................................44
5.10.2 CONTINGENCY PLANNING..................................................................................44
5.11 MAJOR FINANCIAL ISSUES/CONSTRAINS...............................................................44
6.0 PRODUCTION PLANNING SUMMERY.............................................................................45
6.1 MANUFACTURING PROCESS........................................................................................45
6.2 PHYSICAL PLANT............................................................................................................45
6.3 MACHINERY AND EQUIPMENT...................................................................................46
6.4 NAMES OF THE SUPPLIERS OF RAW MATERIAL.....................................................46
6.5 TECHNOLOGY UTILIZATION........................................................................................46
6.6 INVENTORY MANAGEMENT........................................................................................46
6.7 SUSTAINABILITY PLANNING.......................................................................................46

7.0 OPERATIONAL PLANNING SUMMERY...........................................................................47
7.1 OVERVIEW OF OPERATION..........................................................................................47
7.1.2l LEGAL IDENTITY....................................................................................................47
7.1.3 INCORPORATION......................................................................................................47
7.1.4 REGISTRATION.........................................................................................................47
7.1.5. REQUIREMENTS FOR LIMITED COMPANY.......................................................48
7.1.6 EXTERNAL ADVISOR..............................................................................................48
7.2 WORK OF OPERATION...................................................................................................48
7.2.1 BUSINESS HOURS.....................................................................................................48
7.2.2 STAFF MEMBERS......................................................................................................48
7.2.3 WORK ORGANIZATIONAL CHART.......................................................................49
7.3 OPERATIVE PLANNING..................................................................................................51
7.3.1 WORKING HOURS FOR EMPLOYEES.......................................................................51
7.3.2 WORK REQUIREMENT............................................................................................51
7.3.3 RECRUITMENT AND TRAINING............................................................................52
7.3.4 MATERIAL AND TRAINING....................................................................................52
7.3.5 FLOW OF ORDERS FOR GOODS/SERVICES.........................................................52
7.3.6 HEALTH AND SAFETY REGULATION..................................................................53
7.4 LAYOUT INFORMATION................................................................................................54
7.4.1 LAYOUT PREMISES......................................................................................................54

8.0 DELVOPMENT PLANNING STRATEGY...........................................................................55
8.1 FUTURE DELVOPMENT..................................................................................................55
8.1.1 SERVICE DEVELOPMENT.......................................................................................55
8.1.2 PRODUCT DELVOPMENT........................................................................................55
8.1.3 PRODUCT DIVERSIFICATION................................................................................55
8.1.4 MARKET DELVOPMENT.........................................................................................55
8.2 BACK UP PLAN.................................................................................................................56
8.2.1 LONG-TERM PLAN...................................................................................................56
8.2.2 IMPORTANT ASSUMPTION....................................................................................56
8.2.3. RISK............................................................................................................................57
8.3 BUSINESS DELVOPMENT STRATEGY AND IMPLEMENTATION..........................57
8.3.1 MARKETING STRATEGY........................................................................................57
8.3.2 PRICE STRATEGY.....................................................................................................57
8.3.3 OPERATIONAL STRATEGY....................................................................................58
8.3.4 FINANCIAL STRATEGY...........................................................................................58
8.3.5 HRM STRATEGY.......................................................................................................58
8.3.6 PROJECT CASH FLOW.............................................................................................59
8.4 FUND MANAGEMENT.....................................................................................................59
8.4.1 PLAN FOR FUND DELVOPMENT...........................................................................59
8.4.3 ORGANIZE FUND DELVOPMENT ACTIVITIES...................................................60

8.4.3 STAFF FUND ACTIVITIES.......................................................................................60
8.4.4 MANAGING FUND DELVOPMENT WITHIN BUDGET.......................................60
8.5 EXIT STRATEGY..............................................................................................................60
9.0 FINDINGS...............................................................................................................................61
10.0 RECOMMENDATIONS.......................................................................................................62
11.0 CONCLUSION......................................................................................................................63
12.0 REFERENCES......................................................................................................................64

1.0 EXECUTIVE SUMMERY
1.1 PROBLEMS
Over the years, the concern towards health and safety has been rapidly increased among the
population across the globe. Towel is an important part of humans and it becomes troublesome to
maintain the cleanliness and hygiene of the towel as it contains bacteria even after clearing.
1.2 SOLUTION
“Design 4 U” has come up with towel dryer with the dry and clean concept which ensures that
the towel must dry and clean, free from bacteria and smell. This dryer utilises UV rays to
disinfect the tower and making it fluffy and soft (Churchill, et al. 2013).
1.3 MARKET
Everyone who is concerned about the health, hygiene and safety and use towel are target
audience of the company. It has widened range of consumers to attract thus it involves a large
market. All the electronic and retail stores would be best place to sell the product (Domenig and
Domenig, 2015).
1.4 COMPETITION
There are still few companies who produce this kind of dryer so there is less chance of shifting of
consumers to other companies. However, the industry and concept are rapidly growing so there
is a chance in future of new entrants in the market.
1.5. FINANCIAL HIGHLIGHTS
Fundamentals Details
Product

Unit selling target( 1 year) 2500 units
Cost per unit US$130
Total cost US$325000
Perceived selling price US$145
Profit per unit US$15
Table 1: financial highlights
Source: Author’s work (2018)

2.0 OVERVIEW OF IDEA GENERATION
2.1 PROBLEM WORTH SOLVING
The consumers would be more satisfied because the dry and clean towel dryer would provide
safe and secure environment to the consumers as it removes bacteria form towel.
2.2 OUR SOLUTION
Dry and clean towel dryer will solve the biggest problem of the recent times because pollution
and infection are readily increasing so this would reduce the health and safety concerns of the
customers.
2.3 ROADMAP/FUTURE PLAN
Timescale Description
1st year Enrich the unit production and sales target
2nd year Enrich the production unit and sales target
3rd year To expand business in new destination
4th year Global expansion
5th year To start new production unit in foreign market
Table 2: Roadmap/Future Plan
Source: Author’s work (2018)
2.4 PRODUCTS AND SERVICES
A tower dryer A towel dryer which will dry and clean wet