Innovation and Entrepreneurship: Business Plan Report for Real Trial

This report details the business plan for 'The Real Trial,' a Singapore-based venture aimed at enhancing the online shopping experience. The executive summary includes a comprehensive business description, outlining the company's mission to provide a virtual product trial service, addressing the limitations of current online retail. The marketing plan focuses on website advertisements, brochures, and a trial version to highlight the product's unique selling proposition of offering real-life product experiences. The organizational and management plan emphasizes technology, leveraging IT systems to optimize operations and service delivery, while also adhering to ethical and social responsibility standards. The operational plan focuses on customer service, aiming to build a strong brand image. The financial plan includes a start-up cost of $295,200, with a break-even point projected at approximately one year and four months, and a net loss in the first year. The report also analyzes critical risks, including securing financial assistance, market positioning, technological hazards, regulatory compliance, and competition, along with proposed solutions. The conclusion reinforces the potential of 'The Real Trial' to transform online shopping, driven by technological advancement and customer convenience, and emphasizes the importance of a robust marketing strategy, customer engagement, and risk management.

Running head: Innovation and Entrepreneurship 1
Innovation and Entrepreneurship
Student’s Name
Institutional Affiliation

Innovation and Entrepreneurship 2
Innovation and Entrepreneurship
EXECUTIVE SUMMARY
1.1 BUSINESS DESCRIPTION
The product name shall be THE REAL TRIAL, and it is an individual initiative in the service
industry that will be situated in Singapore. The business location in Singapore is very
appropriate because the goal of the business it to offer easy access and promote the purchase
of online products in the entire country of Singapore and the rest of the world to the
satisfaction of the customers. The business idea is coming up in a prime time when online
shopping is on the pick when convenience and ease are significant in online purchasing
(Parment, 2013). However, online shoppers are experiencing problems like product trial
before purchase. The Real Trial is to offer the solutions to all the problems; it will enable the
customers to click on the product image, view it, resize it and see other attributes before
making an informed decision of purchase.
1.2 MARKETING PLAN
The enterprise aims at selling the product to online shoppers through its website which will
be accomplished through advertisements on the company website, by use of posters and
brochures. The customers will also be allowed to use the trial version of the product to have a
real life experience on its efficiency (Strauss, 2016). The objective of the business is to make
online shopping lively, easy and efficient. Hence, its unique selling proposition is to offer
clients the opportunity of free real-life trial experience
1.3 ORGANIZATIONAL AND MANAGEMENT PLAN

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This is a purely technology-based business, and therefore the dependency on the human
capital is almost inexistent. On the contrary, the company will concentrate on acquiring
additional IT systems to boost its operations and service delivery. Furthermore, most of the
modern businesses are advancing with technology by operationalizing their activities to cop
up with technology except for those that are not competitive in the market. Since the business
is technology based, it will benefit most from the numerous IT systems that exist in the
market because suppliers of IT products are easily found. Additionally, the acquisition of the
resources necessary for the business operation will be easy. The enterprise also a strategic
plan that is expected to adhere to the ethics and social responsibility strictly and is already
offering junior jobs to the fresh graduates without any discrimination on any basis (Fraedrich,
Ferrell, & Ferrell, 2013).
1.4 OPERATIONAL/PRODUCTION PLAN
The business is projected to attain high service delivery standards to the satisfaction of the
customer demands. Since the intangible attributes of the product are powerful reputation and
brand image, the business will endeavor to offer customer service upon request and in a
quality and satisfactory way. This will increase the sales of online shopping while at the same
time meet, attract and maintain customers.
1.5 FINANCIAL PLAN
The Real Trial business requires $295,200 as a start-up cost to advance the business prospect.
The amount will service the cost of machinery, personnel,-pre-operational costs, and permits.
The net profit/loss ratio is as follows:
Net profit or loss percentage = (loss/revenue) x 100
= (65,200/230,000) x 100

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=28.35%
This business is having a loss of 28.35% in the beginning of the first year and it will
start earning profit after 1 year 4 months as shown in the break-even point:
Break-even point = fixed cost/ (revenue – variable cost)
= 271,000/ (230,000 – 23,300)
= 1.31 or 1year 4 months approximately
Break even revenue = revenue x break-even point
= 230,000 x 1.31
=$301,548
Thus, the business starts earning profit the moment revenues hit above $301,548.

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2.1 CRITICAL RISKS AND ASSUMPTIONS
a) Industry Analysis and Trends
The business is expected to face difficulty in securing financial assistance from financial
institutions because The Real-Time idea is based on an already existing business innovation.
However, based on the uniqueness of the product, which the competitors do not have, it is
likely to convince the banks otherwise. For instance, the capability of Real Trial to enable the
customer to first view the image of the online product before deciding to buy or not in
addition to other promotional activities will easily woo the financial institutions towards the
desired financial support. For this reason, the product has been patented under the Singapore
Patent and Trademark Office (Patent, 2011). The other challenge for the business in
venturing into the industry is market positioning hence the decision to venture the niche
market of IT service. The Real Trial expects growth revenue of $3 million within the first
five years with the implementation of an appropriate marketing program and a thorough
industry analysis which has enabled the enterprise to understand its position in the market in
comparison with the companies of similar services (Player, 2014).
b) Strategic Position and Risk Assessment
To ascertain the completion and customer services, the business has undertaken its strategic
positioning by providing its product to the right market. The business will partner with
Paypal which commonly used by the majority (Jones, 2012), it will also make use of various
channels including website, email marketing, social media, company app, product awareness
and purchase in the Web page (Chen, Fay, & Wang, 2011). The Real Trial has conducted its
risk assessment and found out three critical threats to its operations and their respective
solutions.

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i. Technological Hazards: The business is most likely to face the danger of cyber insecurity
of its product, but plans are in place to hire cyber-crime experts.
ii. Regulation: The business is to deal with internet product, and thus government
regulations governing internet security are to be strictly adhered to.
iii. Competition: This is the greatest challenge of any organization (Hollensen, 2015). The
industry consists of companies that are well established, and it will take time and effort to
have their market share. But our strategic and marketing plan is expected strive and have the
market share.
CONCLUSION
The Real Trial business in the service industry of Singapore is a venture that will enable
online customers to easily buy products from the online platform with much easiness than
physically buying from the supermarkets or traditional stores. Its unique feature of enabling
the customer to closely view the product of purchase before making the purchase decision is
most likely to be adopted by online shoppers. The marketing plan of the product mostly relies
on technology just as the product itself is in the IT industry. Furthermore, the organization
intends to use its website, posters, brochures, social media, and the company app as channels
of promotion. The decision to allow customers to use it at first on trial basis is the most
convincing way that would attract the target customers who will try it and after having little
experience on its uniqueness will not hesitate to make a full purchase. The product features
go hand in hand with the objectives of the business which are to make online shopping more
enjoyable, convenient and easy. Regarding the organisational and management plan, the
business intends to focus more on acquiring sophisticated IT systems as opposed to human

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capital because most of the operations will be executed by machines. With the satisfaction of
the customer demands, the organization is expected to produce and maintain a powerful
brand image which will steer it towards attaining its first profit after one year of operation.
The risk assessment of the business will enable it to foresee and counter any significant
challenge in its business operations. The Real Trial business venture is an idea whose time is
come and with the technological advancement and the shift towards online shopping, I
believe it will advance as well.

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References
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Fraedrich, J., Ferrell, L., & Ferrell, O. C. (2013). Ethical decision making in business: A
managerial approach. South-Western/Cengage Learning
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
Jones, M. T. (2012). The PayPal Official Insider Guide to Mobile Profits: Make Money
Anytime, Anywhere. PayPal Press.
Parment, A. (2013). Generation Y vs. Baby Boomers: Shopping behavior, buyer involvement
and implications for retailing. Journal of retailing and consumer services, 20(2), 189-
199.
Patent, D. (2011). Trademark Office, Singapore Research Report.
PLAYER, G. T. H. T. (2014). Amazon. com, Inc. Strategic Management and Business
Policy: Globalization, Innovation and Sustainability.
Strauss, J. (2016). E-marketing. Routledge.