Business Plan for D & V Delight - MOD005249 Project, Semester 2

This business plan for D & V Delight outlines various aspects essential for launching and managing a new business. It begins with a business overview, describing the core product/service and business aims, followed by the required seed capital. The plan then details the management structure, i...Read More

Business Plan

Contents
Contents...........................................................................................................................................2
TASK5.............................................................................................................................................1
1 Premises:...................................................................................................................................1
5.2 Equipment& Set up Costs......................................................................................................1
5.3 Transport needs:.....................................................................................................................1
5.4 Legal requirements:...............................................................................................................2
5.5 Insurance requirements’.........................................................................................................2
Fixed monthly Costs as per cash flow:........................................................................................2
TASK6.............................................................................................................................................3
Costs and pricing strategy............................................................................................................3
TASK7.............................................................................................................................................3
Cash Flow forecasts.....................................................................................................................3
7.1: Three year projections..........................................................................................................6
Notes to cash flow and projections:.............................................................................................6
CONCLUSION................................................................................................................................7

TASK5
1 Premises:
It is really essential for manager of business when they start new business to take decision
regarding choosing right premises of manufacturing products and services. Which will be
nearby to the market and situated at those place where transportation cost incurred low and
organization will be able to easily provides their products to customers (Gabler,
Panagopoulos,Vlachos and Rapp, 2017).
5.2 Equipment& Set up Costs
Product Amount Cost.
Massage table 2 £500
Oil 10 400
Towels 15 600
Car 200 2000
Soap 20 500
Work centre 6515 Printer 1 £211
Software 34 700
Web 50 450
Marketing 100 500
Organza gift bags 100 £6.29
Utica bode scrub gloves(pack of
4 pairs)
100 £75.27
Total 5942
5.3 Transport needs:
It is really important for every new business whatever they are small business organization or
large business entities. Every organization need transport for fulfil their need, to raw material, to
provides goods and service to their customers, distribution of products in market. Thus it is

compulsory to calculate and estimate cost of transportation. Manager also need to select the
mode of transportation through which cost of transportation not get high.
5.4 Legal requirements:
For establishment of new business legal requirement also considered. All legal requirement is
need to essentially fulfil as it play essential role in opening on business firm . It will help in
providing help in operating business function also fulfilment of legal requirement need help in
enjoying tax benefits by business organization. It is really essential for individual to fulfil all the
criteria of legal requirement and formulate their business strategies in a way through which they
can able to obey all the ethical rules and regulation regarding the business (Watson, McGowan
and Smith,2015).
5.5 Insurance requirements’
Need to focus on insurance plans and polices to reduce the chances of loss and uncertainly it is
required for individuals to invest in insurance schemes in order to mitigate future loss.
Other required Certifications: Every business organization which is going to be started in future
require to have some certificate to show as compulsory document to fulfil legal requirement.
They have memorandum of association., article of associating, registration certificate, certificate
of insurance, certificate of legal policies, bank statement . All these statement are shown as proof
document that organization does not conduct or run any illegal business activites. Theses
document also useful for identification of members of the organization, n case of breach of
contract and legal Law, theses document help government to caught up the culprit.
Fixed monthly Costs as per cash flow:
Items Costs
Fixed Costs:
Salaries 1 1500
Rent. 2000
Rates 150
Staff Wages. 3000
Utilities/Gas/Elec 800
Phones. 500

Freight & Postage 250
Stationary. 120
Promotion & Ad. 600
Website. 300
Accountant 600
Legal 400
Transport 550
Vehicles 800
Insurance 550
Maintenance
Computers. 400
Misc. 300
Loan repayment. 400
Interest on loan. 500
Total 13920
TASK6
Costs and pricing strategy
Particular Cost per unit Total amount
Cost of Beauty product £10 10
Sale value £30 30
Profit margin (£) 20 20
Profit margin Ratio
(Profit / Price x 100 = Profit
margin)
66.66%
Mark up (%)
(Profit / Cost x 100 = Mark
Up)
200%

TASK7
Cash Flow forecasts

.
January February March April May June July August Sept Oct
Sales 1: 20000 40000 60000 95000 120000 150000 155000 165000 170000 185000
Loan 1000 1500 750 450 880 700 950 1300 1500 1800
Investment. 1500 2000 2200 2500 2800 3000 3500 2000 1200 1800
Total Sales: 22500 43500 62950 97950 123680 153700 159450 168300 172700 188600
SET UP COSTS
TOTAL
Direct Costs:
Materials. 2500 1200 500 850 950 550 675 400 1200 1500
1

Stock. 2000 2100 2150 2200 2350 1450 1500 1600 1800 2500
Additional Staffing 500 500 400 500 300 500 700 500 800 500
TOTAL Direct Costs: 5000 3800 3050 3550 3600 2500 2875 2500 3800 4500
Fixed Costs:
Salaries 1 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500
Rent. 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Rates 150 150 150 150 150 150 150 150 150 150
Staff Wages. 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000
Utilities/Gas/Elec 800 800 800 800 800 800 800 800 800 800
Phones. 500 500 500 500 500 500 500 500 500 500
Freight & Postage 250 250 250 250 250 250 250 250 250 250
Stationary. 120 120 120 120 120 120 120 120 120 120
Promotion & Ad. 600 600 600 600 600 600 600 600 600 600
Website. 300 300 300 300 300 300 300 300 300 300
Accountant 600 600 600 600 600 600 600 600 600 600
Legal 400 400 400 400 400 400 400 400 400 400
Transport 550 550 550 550 550 550 550 550 550 550
Vehicles 800 800 800 800 800 800 800 800 800 800
Insurance 550 550 550 550 550 550 550 550 550 550
Maintenance 200 200 200 200 200 200 200 200 200
Computers. 400 400 400 400 400 400 400 400 400 400
Misc. 300 300 300 300 300 300 300 300 300 300
Loan repayment. 400 400 400 400 400 400 400 400 400 400
Interest on loan. 500 500 500 500 500 500 500 500 500 500
TOTAL: 13920 13920 13920 13920 13920 13920 13920 13920 13920 13920
Sub Total: Fix +
Direct Costs.
18920 17720 16970 17470 17520 16420 16795 16420 17720 18420
2

Net Profit: Sales – Sub
total
3580 25780 45980 80480 106160 137280 142655 151880 154980 170180
7.1: Three year projections
Particular 2020 2021 2022
Product 1200 2500 40000
Cost of
product
1200000 1600000 2500000
Selling cost
of product
1592030 15654862 4500000
Gross profit 3009030 146302166 200000
Operating
cost
259843 123535 500000
Net profit 1380015 1264634 1500000
Notes to cash flow and projections:
Cash flow is a framework which is formulated to shoe the outflow and inflow cash related
activities. It will help in future projection (Johnson and Garvin 2017). IT has been identified
from this calculation that business will be able to generate profit in upcoming year although their
rate of earning is not so high. Their cost charge on legal, equipment and transportation will be
high but all cot will be recover by profit earn from business organization activities.
Organizations revenue has been increase through the various forms of business activities(Vitale,
2014).
CONCLUSION
3

From the above analysis it has been concluded that for starting a new business in market
place personal need to formulate business plan in which they describe all the plans policies
procedure of start up collection of funds, raw material, procedure of providing perceives ,
fulfilment of legal formalities . Without making a business plan organization unable to survive in
competitive market. Business plan show the criteria on limits of an organization to incurred
expenses it will provides guideline to individual to run their business in an effective manner.
Thus it is essential for every introverted to formulate plan which consider, forecasting budget,
cash flow analysis, cost, legal requirement of certificate, market research selling and distrbution,
policies uses for promotion and selling of products analysis of competitive environment through
which organization willed able to maintain strong position and run their organization effectively.
REFRENCES
From books and journal
Gabler, C.B., Panagopoulos, N., Vlachos, P.A. and Rapp, A., 2017. Developing an
environmentally sustainable business plan: An international B2B case study. Corporate
Social Responsibility and Environmental Management, 24(4), pp.261-272.
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Watson, K., McGowan, P. and Smith, P., 2015. Leveraging effectual means through business
plan competition participation. Industry and Higher Education, 29(6), pp.481-492.
Johnson, J.E. and Garvin, W.S., 2017. Advanced practice nurses: Developing a business plan for
an independent ambulatory clinical practice. Nursing Economics, 35(3), p.126.
Vitale, A., 2014. Initiating a Reiki or CAM Program in a Healthcare Organization-Developing a
Business Plan. Holistic nursing practice, 28(6), pp.376-380.
Hopp, C. and Greene, F.J., 2018. In pursuit of time: Business plan sequencing, duration and
intraentrainment effects on new venture viability. Journal of Management
Studies, 55(2), pp.320-351.
Feenstra, D., 2014. The Standout Business Plan: Make Irresistible-and Get the Funds You Need
for Your Startup or Growing Business. Journal of Applied Management and
Entrepreneurship, 19(4), p.116.
Vitale, A., 2014. Initiating a Reiki or CAM Program in a Healthcare Organization-Developing a
Business Plan. Holistic nursing practice, 28(6), pp.376-380.
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