Detailed Business Plan: Nickholding Ltd, Doors & Windows, UK Market

This document presents a business plan for Nickholding Ltd, a company specializing in structural and finishing materials, aiming to enter the UK market. The plan includes an industry analysis highlighting the favorable trends in the UK construction sector, a customer analysis identifying target audiences such as retail buyers, construction companies, and designers, and a competition analysis acknowledging key competitors like Dealhut and Nicholls and Clarke. The marketing plan focuses on pricing strategies, product assortment, strategic placement of outlets, and promotional activities. The operations plan details the steps for setting up outlets in the UK, including registration, equipment purchase, and personnel selection. The management team is led by Nikolay Slavchev, and critical risks such as insufficient demand and competitor reactions are addressed with mitigation strategies. The financial plan outlines initial costs, monthly expenses, and projected sales, with appendices providing details on profit determination and a tentative balance sheet. Desklib offers a variety of resources including past papers and solved assignments to aid students in their studies.

Business Plan 1
Good construction finishing begins with Nickholding Ltd Doors and Windows
Student’s Name
Professor’s Name
Course Name
Date

Business Plan 2
Executive Summary
Nickholdings Ltd is a company that sells structural materials, finishing materials and products
for the development of the house planning. The company plans to enter into UK market. It is one
of the viable markets. The products will be produced in Bulgaria but will be sell in the UK.
However, successful business cannot do without a well-written business plan. This important
document will help to determine the main direction in the work and the strategy of action.
Nickholdings Ltd ought to have a comprehensive business plan for its operations. It is the goal of
the paper to propose a tentative business plan that would cover aspects such as the marketing
plan, operation plan, financial plan, brief industry analysis and brief review of customers

Business Plan 3
Table of Contents
Introduction......................................................................................................................................3
Industry, customer and competitor analysis....................................................................................3
Industry........................................................................................................................................3
Customer......................................................................................................................................3
Competition analysis....................................................................................................................3
Marketing plan.................................................................................................................................3
Price...............................................................................................................................................
Product.........................................................................................................................................4
Place.............................................................................................................................................4
Promotion.....................................................................................................................................4
Operations plan................................................................................................................................4
Management team............................................................................................................................4
Critical Risks...................................................................................................................................4
Financial plan...................................................................................................................................5

Business Plan 4
Introduction
Nickholding ltd founded by Nikolay Slavchev (Companies London 2018). The company
sells structural materials, finishing materials and products for the development of the house
(roofing, wood-panels, joinery, parquet flooring, tile-sanitary, tools and self-service) (Companies
London 2018). The company is planning to open new outlets in the new market in UK. The
company is going to order products to already existing companies in Bulgaria and sell it in UK
market.
Industry, customer and competitor analysis
Industry
According to Partington (2018), the construction industry in UK is improving
significantly. He the construction business is developing more and more actively every year.
Trends in this industry can be safely described as favorable. Partington (2018) also hinted that
there is likelihood that the trend will even improve in the coming months
Customer
Target audience of the building store are retail buyers, 60% of which are male population of
the city aged from 23 to 65 years. Another group of consumers are corporate clients in the face
of construction and installation teams, with whom contracts are concluded and work is underway
on the billing system. Other customers will include
 Construction companies
 Private individuals providing construction and repair services (foremen, construction
brigades);
 Designers;

Business Plan 5
 Architectural and design offices;
 Final consumers.
Competition analysis
When studying competitors, an entrepreneur needs to pay attention not only to building
materials stores, but also to nearby markets where such goods are sold, as well as large online
stores that work with his or her region. Nickholding ltd will have to compete not only with small
retail outlets, but also with building hypermarkets that can offer the consumer a wide range and
lower prices (PMR 2018). Some of the key competitors will include Dealhut, Nicholls and
Clarke, Siniat Ltd and Global Build.
Marketing plan
In order to form an effective sales system, it is necessary to develop a commercial
proposal for each of the target groups. For example, for construction companies and
superintendents, pricing policy should be differentiated - these are discounts for the volume and
regularity of purchases, the possibility of deferred payment, preferential terms of delivery, etc.
For end-users it is possible to offer consulting services - to select the optimal materials and
components, calculate the required quantity and etc. Marketing plan will also focus on 4
marketing Ps.
Price
It is necessary to establish the optimal price for goods, because inflated prices scare away
potential customers, and too low prices will not allow to recoup the business (Entrepreneur,
2015). The optimal option is to analyze the price policy of competitors and reduce prices by 2%;

Business Plan 6
Product
There would be a need for Nickholding ltd to provide a wide range of products that can
interest the consumer. First, it is important to properly form the assortment, taking into account
the preferences of the target audience (Entrepreneur, 2015).
Place
To address the issue of place gaps, Nickholding ltd will have to identify specific places in
UK where there are less construction shops and build the outlets in such places. This will ensure
convenient location for customers (Entrepreneur, 2015). Construction shops that are within
walking distance are, in certain cases, the most attractive option than the hypermarkets remote
from the city.
Promotion
The advertisement of the building store can be divided into two types - passive and active
(McKeever, 2017). Passive advertising includes signs, banners, pillars, etc. Active advertising
involves the distribution of leaflets, the distribution of business cards, articles in specialized
publications, advertising on radio and television. Another effective advertising tool is
cooperation with repair and construction firms and brigades. They will bring customers to the
store and purchase building materials, and the seller will give a percentage of the sales of the
attracted customers.
Operations plan
To set up outlets in UK, Nickholding ltd will need to find the right room and its
arrangement, register (Lawyers Bulgaria 2017, International Law Office 2018), purchase and

Business Plan 7
installation of commercial equipment, personnel selection, search and conclusion of contracts
and suppliers, advertising and supplying the ordered products to the customers.
Management team
Nikolay Slavchev will be the overall manager of the team. The main staff in the store are
sales consultants. It is from them that the success of trade largely depends. For a shop with an
area of 100 sq.m. there will be enough four sales consultants, three cashiers and one head.
Requirements for sales consultants: knowledge of construction products, the ability to
unobtrusively offer their help and to locate the client, organization, responsibility, courtesy.
Other team will compose of;
 Sellers - men (because you may need help with the customer in the overload of the
purchased goods);
 Driver with personal lorry;
 Accountant (outsourcing);
 Cleaner (outsourcing).
Offerings
Nickholding Ltd will offer discounts and after sale services as a way of attracting customers
Critical Risks
One of the major risks is insufficient level of demand. First, the demand for building
materials is clearly pronounced seasonality; Secondly, it is closely interrelated with the economic
situation in the country. In this connection, the risk of a low level of demand is one of the most
probable and can arise both because of low solvency of demand, and because of high costs of
circulation. Reduce the risk is possible with careful planning of the store and financial results, a

Business Plan 8
competent choice of the trading premises, holding various actions and discounts, encouraging
repeated purchases, flexible pricing (Shelton, 2017).
Another risk is reaction of competitors. Since the market for building materials is quite
saturated and the competition is high, the behavior of competitors can have a strong impact and
may hinder ability of Nickholding to maximize profits
Additionally, Nickholding ltd may experience problems with the staff. Since employees
determine the performance, it will be appropriate to factor in staff as possible risk
Financial plan
In order to start a business to open a store of building materials, you need to calculate the income
and costs, the payback period, the level of profitability.
Amount of initial costs:
1. Registration of legal entity - 500 USD
2. Purchase of commercial equipment - 10000 USD;
3. Manufacturing of a signboard - 1000-1500 USD;
4. Repair and arrangement of the sales area - 3000-4000 USD.
Total investments - 16 000 USD.
Monthly costs:
1. Rent - 200-350 USD
2. Wages - 500-600 USD
3. Taxes - 500 USD;
4. Advertising and promotion – 500 USD.

Business Plan 9
TOTAL: 17950 USD
When planning sales, it is necessary to consider some seasonality of the construction
business - the peak of sales falls on the spring and autumn months, and the fall in sales - in the
winter. The planned sales volume is calculated based on the average check amount of 100 USD
and the number of customers - 200 people per month. This give approximately 20,000 USD per
month. The profits would be calculated as shown in appendix 1.

Business Plan 10
References
Companies London (2018) Nickholding Ltd, Available from: (Accessed on 9/29/18).
Entrepreneur, M (2015) Write your business plan - get your plan in place and your business off
the, Entrepreneur Press.
Green, J (2016) Bulgaria’s construction industry to reach US$10.9 billion in 2020, World
Cement, Available from: (Accessed on 9/29/18).
International Law Office (2018) Bulgarian Construction Law Requirements. Available from:
(Accessed on 9/29/18)
Lawyers Bulgaria (2017) Open a Company in the Construction Field in Bulgaria. Lawyers
Bulgaria.com. Available from: (Accessed on 9/29/18)
McKeever, M P (2017) How to write a business plan, Berkeley, Calif: Nolo Press.
PMR (2018) Construction sector in Bulgaria 2017, Available from: (Accessed on 9/29/18).
Shelton, H (2017) Secrets to Writing A Successful Business Plan. A Pro Shares A Step-By-Step
Guide to Creating A, S.L.: Summit Valley Press.
Partington, R (2018) UK construction posts better than expected June figures, The Guardian.
Retrieved from: https://www.theguardian.com/business/2018/jul/03/uk-construction-posts-better-
than-expected-june-figures (Accessed on 9/29/18).

Business Plan 11
Appendices
Appendix 1: Determining profits

Business Plan 12
Appendix 2: Tentative balance sheet
Nickholding Ltd
Balance Sheet
As at end of Year One
Current Assets
Cash $5,100
Debtors $18,000
Stock $3,120
Total Current Assets $
26,220.00
Non-current Assets
Computer $5,500
Store Fit Out $8,100
Office Equipment $15,000
Total Non-current Assets $28,600
Total Assets $54,820
Current Liabilities
Credit Card $5,500
Creditors $4,120
Total Current Liabilities $9,620
Non-current Liabilities
Total Non-current Liabilities
Total Liabilities $9,620
Net Assets $45,200
Shareholders’ Equity
Owners’ Funds $40,000
Current Year Profit $5,200
Total Shareholders' Equity $45,200