Business Plan Report: InfoTech Systems, Sydney, Australia

The business plan focuses on establishing InfoTech Systems, a single-source provider of business information and technology products in Sydney's business community. It outlines objectives, mission, customer segments (SOHO market), value propositions (technical support), customer relationships, and distribution channels. The plan uses the Business Model Canvas, detailing revenue models, cost structures, key activities, and key partners. It includes a financial outlook with strategies for market share expansion and profitability through financial statement analysis. The plan also emphasizes customer perspectives, brand image, and satisfaction surveys. Internal processes focus on innovation, quality control, and balanced scorecards. The report includes detailed financial analysis, customer relationship strategies, and internal process improvements to ensure the company's success. It also contains a balanced scorecard analysis and break-even assessment. The business aims to provide valuable IT solutions and establish a strong brand in the Sydney market.

Business Plan 1
Business Plan
By (Name)
Name of the Class
Professor/tutor
Name of the school (University)
The City and state
Date

Business Plan 2
Table of Contents
Executive summary...................................................................................................................................3
Business plan..........................................................................................................................................4
Introduction...........................................................................................................................................4
Objectives...............................................................................................................................................4
Mission...................................................................................................................................................4
Customer Segments...............................................................................................................................4
Value Proposition..................................................................................................................................4
Customer Relationship..........................................................................................................................4
Distribution Channels...........................................................................................................................5
Revenue Model......................................................................................................................................5
Key Activities.........................................................................................................................................5
Financial outlook...................................................................................................................................6
Customer perspectives..........................................................................................................................7
Internal process perspective.................................................................................................................9
Break even assessment........................................................................................................................10
Conclusion................................................................................................................................................12

Business Plan 3
Executive summary
The business plan focuses on establishing a single-source business information and technology
products provider. The business will be located in the business community of Sydney. The name
of the company is the InfoTech systems. Through an emphasis on core strengths, key customers
and their unaddressed needs, InfoTech systems will steadily increase sales in the first three years
of its operation and maintain gross margin on sales. A business plan is essential to this objective.
It will renew vision and steer focus towards crucial business operations

Business Plan 4
Business plan
Introduction
The business plan will lead the way in terms of business implementation. It reviews the vision as
well as the strategic focus of the business. It seeks to explain the value to be added to the targeted
market segments while reinforcing the company’s ties with the business community. The
business plan is also developed in a way which provides a step-by-step plan for the improvement
of the sales revenue, the profitability as well as the gross margin.
Objectives
To of a moderate gross margin during the period of operation
To attain healthy earnings in the first 12 months of service
Mission
To provide the business community in Sydney with a prestigious brand built upon the provision
of highly useful information technology solutions, dependable and reliable professional support.
Business plan using the Business Model Canvas.

Business Plan 5

Business Plan 6
Customer Segments
InfoTech will sell and maintain digital office information systems for businesses in Sydney with
its primary target being the business community on the neighboring islands. The business will
target the business community of Sydney and more specifically the SOHO market segment. The
focus will be to provide value-added as well as affordable business solutions tailored to the
unique needs of the SOHO business community.
Value Proposition
The company’s major competitors are IT vendors operating in the mainland. The company
offers several products that require technical knowledge for use. However, most suppliers in
Sydney do not provide technical support. InfoTech will achieve differentiation from other
competitors by offering additional intangible benefits such as reliability, confidence, and tech-
support.
Customer Relationship
The company will gain and retain customers through referrals generated from the superior level
of service offered with the products sold. To ensure that positive customer relationships are built
the company will seek to undertake the following

Business Plan 7
 Self-service for customers
 Availing automated services
 Offering dedicated individual assistances to customers
Distribution Channels
In essence, InfoTech is a direct sales enterprise. The products and services will be presented
directly to most clients and customers. The company will position itself as a value-added reseller
for less valuable items and open new locations accordingly.
Revenue Model
The company will charge appropriately for high quality and high-end services offered. The cost
structure will match the revenue structure. This will guarantee that the salaries paid to ensure
quality service are balanced by revenues charged.
The business will follow a recurring revenue stream model. This will include revenue earnings
on a consistent basis from the continuous payments made to the company for its services and
products rendered to the customer.
Cost Structures
The initial costs will be one million dollars. This will include 450,000 for the acquisition of the
two subsidiaries. The remaining funds will be used for startup inventory; 200,000, startup
capitalization; 225,000, insurance and legal fees, 125,000. Initial funding will be obtained
through loans organized through the Hawai'i community loan scheme and development center
for small businesses. The business is value driven and will have its focus on a premium value
proposition where a high degree of service personalization will be emphasized.
Key Partners
InfoTech will establish alliances with IT manufacturers, especially Canon USA. These will be
essential to its success. The company will maintain this relationship due to the potential benefits.
Key Activities

Business Plan 8
The company’s value proposition requires the recruitment of knowledgeable and experienced
staff to handle customer queries and maintain the information systems purchased. The key
activities to be undertaken by the project will include
 Controlling production as well as manufacturing
 They will also include website management, product distribution and management of
online services and orders.
 The other key activity is creating a branding strategy.
 There is also product promotion and marketing.
Key Resources
InfoTech will be established from the procurement of two existing businesses. InfoTech will be
privately owned, with majority ownership belonging to the InfoTech employee stock ownership
trust. New employees will be allowed a chance to invest in the employee stock ownership plan
following a satisfactory period of probation.
Balanced scorecard
The figure below illustrates the balanced scorecard on which company analysis is based.
Figure 1: Balanced scorecard

Business Plan 9
Financial outlook
To ensure economic viability, the company aims to improve revenue and expand profitability
(Kumar et al., 2016, p96-119). This will be achieved through expansion of market share through
the introduction of new products and acquisition of subsidiaries it is now widely accepted that
one of the leading contributors to enterprise profitability is market share. In most cases,
businesses that attain a large percentage of the markets in which they operate are considered
more profitable than their smaller sized competitors. The relationship between profitability and
market share is clearly shown in the results of a study undertaken by the marketing science
institute on the profitability of different market strategies. The study identified nearly 40 major
profit influences - the Market share was among the most significant (Carlton & Perloff, 2015).
There is hardly any doubt that returns on investment and market share have a healthy
relationship (Waldman & Jensen 2016). Businesses with a higher market share enjoy economies
of scale in the acquisition, marketing, and manufacturing, along with other cost components. An
enterprise that owns 30 percent of the market share is essentially twice as large as one with 15
percent of the same market, and it will achieve, to a significantly greater extent, greater
efficiency in methods of production within specific types of technology. The total unit costs of
product production and distribution typically decline by a relatively uniform percentage, with
each 100percent increase in a company's cumulative output (Dantzig, 2016).
Since, within a specific period, enterprises with significant market shares typically achieve
higher cumulative sales than smaller rivals, they also incur reduced costs and higher profits. The
success of this initiative will be evaluated through financial statement analysis, the process by
which an enterprise's financial data is analyzed for purposes of decision making and to gain an
understanding of the general health of the organization. Financial statements contain records of
economic data, which must be assessed through financial statement analysis to provide
meaningful insights to shareholders, investors, and managers. Financial statement analysis is an
analytical approach to plotting the past, current, and future performance of an organization
(Fridson & Alvarez, 2011).
Several methods will be used. These will include, horizontal analysis, which compares two or
more years of financial information in both percentage and dollar formats, and vertical analysis,
in which each group of accounts on the balance sheet is represented as a percentage of the

Business Plan 10
comprehensive report and ratio analysis which identifies statistical relationships in the datasets
presented (Dantzig, 2016). Financial statement analysis facilitates the identification of trends
through the comparison of ratios across several statement types and periods (Aubinet et al.,
2012). These statements enable the measurement of profitability, liquidity, cash flow, and
organization-wide efficiency (Finnerty, 2013) (Fridson & Alvarez, 2011).
Financial statements may be presented in one of three significant formats; the income statement,
balance sheet, and cash flow statements. The balance sheet is a record of the company's
shareholders' equity, liabilities, and assets at a specific period. Analysts use this information to
find patterns in debts and assets. The income statement starts with sales and concludes with net
income. It also shows details such as net profit, gross profit, and operating profit (Weil et al.,
2013).
Customer perspectives
A brand may be described as a different symbol, or name meant to identify services or goods that
are made by a particular seller or group of sellers and to set these goods or services apart from
those made by competitors in the same industry. A brand, therefore, informs the consumer of the
origin of the product and protects the producer and consumer from rivals that are producing
similar products (Brakus et al., 2009 p52-68). Brands constitute the basis upon which customers
can distinguish between and bond with a particular service or product. From the customer's
perspective, a brand may be described as a cumulative collection of all experiences and is
established at all points of relation and contact with the consumer. A successful brand is a unique
and identifiable product improved in such a way that the user or buyer appreciates relevant, and
distinctive value additions that match their needs
The implementation of a brand-driven marketing strategy will create several benefits that include
high levels of customer satisfaction, reduced sensitivity to prices, and increased consumer
loyalty, more referrals, and a higher volume of repeat sales. Customers value relationships with
brands that are known for high standards of quality. In this context, the company will focus on
points of brand identification and differentiation that are most likely to establish a sustainable
competitive advantage for the company and business enterprise. Brand image based on a
thorough understanding of an enterprise's customers, competitors, and marketing environment.
Brand resonance is established on an ideal model that will be achieved through commitment to

Business Plan 11
the company's marketing strategy and commitment to invest in programs that reflect the brand's
corporate values and commitment to customer satisfaction. By establishing a positive brand
image through superior product quality, the company will gain increased consumer loyalty, the
ability to charge premium fees, and the leverage to introduce new products and services.
Customer perspectives will be assessed through surveys. Research shows that satisfied customers
purchase products with higher frequency and develop attachments to specific brands
(Christodoulides & Chernatony, 2010). They then spread the word through the recommendation
of services and products to family and friends as an informal referral process. Customer
satisfaction surveys provide organizations with specific data on positive and negative consumer
perspectives, which are then used to enhance sales and marketing initiatives. These opinions are
of utmost importance, considering the proliferation of social media. A negative review posted on
a social network could be viewed by thousands of potential clients and result in a consumer
boycott of the company's products (Tuškej et al., 2013 p53-59). An angry consumer may stir
uncalled for criticism and biased reviews that could negatively affect the company's image.
Rectifying the damage or settling false accusations could be too costly. Customer satisfaction
surveys will create statistical data that can be evaluated through various data manipulation and
analysis methods. The first step towards the development of a useful study will be the
establishment of a procedure for the comparison of results. The employees tasked with the
responsibility of results analysis will have training in statistical analysis. If the survey results
point to an operational weakness, another survey can be used to evaluate the effectiveness of the
changes implemented. This information can be assessed and compared to previous feedback. The
use of studies shows customers that the company is willing to make adjustments to its services or
products. Customer satisfaction also identifies hidden trends that can be used in the estimation of
rates of customer satisfaction for rival products (Gal & Rucker, 2011).
Internal process perspective
To satisfy the clients, the company will ensure the highest standards in innovation and quality
control. This will be achieved, in part, through the implementation of the principles of innovation
management - a combination of change management and processes for the management of
innovation regulated by the ISO 50500 standard. Invocation management involves an n array of

Business Plan 12
tool s that allow management and production teams to collaborate with a mutual understanding
of objectives and processes (Leiponen & Helfat, 2010 p224-236).
Innovation management will allow the business to react to internal and external opportunities
and use creativity to implement new processes, ideas, or products. It is not limited to research
and development and involves the participation of employees at all levels within the
organization, contributing to a creative context to the organization’s product development and
marketing initiatives. Through the utilization of innovative management tools, the company's
management will facilitate and implement the allocation of creative abilities to ensure the
organization’s continued development. The tools used will include; idea management, and
portfolio management (Igartua et al. 2010 p41-52). This process may be considered an
evolutionary process within organization integration that involves the confluence of technology,
organization, and market through the iteration of a series of activities; search, identify,
implement, and capture. The innovation will be pushed and pulled through the development
process. In the advanced methods, the organization will improve upon newly introduce or
existing technologies and find practical applications for this technology. In the pulled processes,
the company will identify, through market research, areas where customer needs are not satisfied
and develop solutions for these needs.
Sustainability perspective
Skilled employees are an essential resource for the realization of the goals and objectives of any
enterprise. A productive workforce necessitates the recruitment of an appropriate mix of
qualified personnel proven passion and interest, which can be trained for the job (Linnenluecke
& Griffiths, 2010). New employees must receive intensive orientation before they are assigned
positions under experienced personnel. Existing employees need extensive retraining and up-
skilling in response to rapid industry changes and highly competitive business environment. The
origins of sustainability may be traced to the principles of sustainable development, defined, in
an organizational context, as development which satisfies present needs without compromising
the ability of future generations to meet their needs. Corporate sustainability is one core
objectives of any enterprise.