Business Plan for a New Warehouse Construction Store in the UK

This project presents a detailed business plan for a new warehouse construction store, outlining its business description, history, and structure. The plan includes a product and service description, market analysis, and operational strategies. It also covers the technology plan, management and organization, and the company's social responsibility and sustainability initiatives. The project details development milestones, exit strategies, and financial data, including sources of finance, personal survival budgets, cash flow statements, and balance sheets. Sales forecasts for different products are also provided. The plan focuses on the UK market, analyzing competitors and outlining the store's aim to become a leading construction store internationally. The assignment provides a comprehensive overview of the business, its operations, and its financial projections.

Warehouse Construction Store

EXECUTIVE SUMMARY
This document has given the information is relation to new warehouse construction store
which is going to be launched at international level considering all the responses from United
Kingdom (national market for the store). Technology plan, Financial data and other elements like
business description and history has helped taking right decisions in much effective and efficient
manner to gain ample number of benefits.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
BUSINESS DESCRIPTION AND HISTORY................................................................................4
BUSINESS STRUCTURE..............................................................................................................4
PRODUCT OR SERVICE DESCRIPTION....................................................................................4
MARKET ANALYSIS AND TRENDS..........................................................................................5
OPERATIONS.................................................................................................................................6
TECHNOLOGY PLAN...................................................................................................................6
MANAGEMENT AND ORGANIZATION....................................................................................6
SOCIAL RESPONSIBILITY AND SUSTAINABILITY..............................................................8
DEVELOPMENT, MILESTONES AND EXIT PLAN..................................................................8
FINANCIAL DATA........................................................................................................................8
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

BUSINESS DESCRIPTION AND HISTORY
The new warehouse construction store is said to be the part of multinational infrastructure
group in United Kingdom with capabilities in the construction services, infrastructure investment
and the support services. This will be conducting businesses across United Kingdom, United
States, Ireland, South East Asia and Canada in near future. Aim of this new warehouse is to
become a leading construction store within the international market. It develops finance and also
maintains the innovative infrastructure that underpins the daily life and also enables the
economic development (Konikov, Kulikova and Stifeeva, 2018).
Basically, a fund of £50,000 was established for the new warehouse construction store.
The two directors who are the owner of this business are said to be the trained mechanical and
electrical engineer who are planning to launch it in successful manner. Basically, the different
range of services will be offered by this type of business is directly linking to construction site
and so on.
BUSINESS STRUCTURE
The new warehouse construction store, is going to carry a crucial organizational structure
and that is functional and devolved structure, but within the group principles and policy
framework. Basically, this organization is going to hold different levels of management where
unit managing directors and their boards comes at the top level and managers do comes under
medium level and lastly at the lower level management employees and other staff specifically
works based on the task given to them by the top level management. Away with this,
organizational structure is supported by different organizations as well like environmental
steering groups, safety boards, qualified safety and environmental advisers, that may help them
in enhancing the overall expertise and decision-making process as well.
PRODUCT OR SERVICE DESCRIPTION
The new warehouse construction store gives range of the innovative switch gears and
also power distribution substation. The product of the new warehouse construction store consist
electrical switch gear, SCADA protection, system commissioning, HV and LV cabling and Fibre

cabling solutions. Construction and civil engineering –Raynesway, Off-site Solutions., Pipe
fabrication and installation, Residential property management and development, Specialist
structural repair and maintenance, Structural steelworks manufacturing, Switch gear
manufacturing, Biodiversity services and so on are said to be some of the crucial services offered
by the new warehouse construction store (Kusrini, Novendri and Helia, 2018).
MARKET ANALYSIS AND TRENDS
Competitor 1: Kier Group
Strengths
 It has low cost structure and also sells
its product at minimum cost.
 It has strong relationship with dealers.
Weaknesses
 Significant proportion of property
owns is rented than buy.
 Kier has the low level of the assets as
comparison to the current liabilities.
Opportunities
 It has an opportunity to enhance
number of the internet users in all over
world.
 It can upgrade technology that helps in
better collection of customers data.
Threats
 The technological development
through rivals.
 Increasing number of competitors.
Competitor 2: Interserve Plc
Strengths
 It has been generate the positive
returns on capital expenditure.
 Interserve plc has strong financial
position with the consecutive profit.
Weaknesses
 It is spending more than average
research and the development
expenditure within construction sector.
 There is lack of the financial planning
related to cash flows leading to the
circumstances (Kembro and Norrman,
2019).
Opportunities Threats

 It can increase number of the users on
social media worldwide.
 The reduction in government tax rate
is effective as fewer amounts would
expense out as tax.
 Large number of the players has been
entered in construction industry.
 Fluctuation interest rate does not give
stable economic and financial
environment.
OPERATIONS
The new warehouse construction store, is delivering ample number of services like it will
be pioneering new technologies along with transforming the constructive environment at United
Kingdom's construction market. Company has invested among different areas like sustainability
to build locally so that communities can directly get connected with infrastructures. Basically,
the services that are specifically being provided by the new warehouse construction store are
directly linking with infrastructures, multi-story buildings and so on. Highway services, asset
Management, structural strengthening, refurbishment, modular systems, civil engineering and so
on are also considered to be the part of operations within the new warehouse construction store
(Enes and Silva, 2020).
TECHNOLOGY PLAN
New warehouse construction store will be considering Machine-to-Machine Technology
and the reason that came in front was that this type of technology has evolved in much effective
and in efficient manner and helped stores to streamline and monitor different automotive aspects
in order to conduct all the warehouse related operations in much effective and in efficient
manner. The technological plan adopted by New warehouse construction store will be helping all
the operations management related activities to control different equipment within the warehouse
that is vital to the order fulfillment process.
MANAGEMENT AND ORGANIZATION
Management Summary:

Management team of this new warehouse construction store has already been performing
services in the past with different organizations in same industry. With the help of this, the store
will be working while focusing on previous experiences which has been experienced by them at
previous workplaces.
Organizational Structure:
Management Team:
The new warehouse construction store management team consists of the CEO, CFO, two
directors, who will be focusing on different areas and will also be delegating tasks depending on
the capabilities and experiences.

SOCIAL RESPONSIBILITY AND SUSTAINABILITY
The work of new warehouse construction store increases physical surroundings. This
provides education, safety, transport and other social services. The organization feels it is
responsible for expanding to the wider society under which business works the positive effect its
work has on the life of consumers. The sustainability plan of a company outlines how workers,
clients, society and shareholders can achieve long-term economic, social as well as
environmental performance. This is fully aligned to the last objectives of the business and seeks
to further integrate sustainability into all the activities through a strong environment. Strategy is
focused on three pillars of profitable (economic), environmental and healthy (social) societies.
Both workers have opportunity to give something back to local areas for up to two days a year.
This had brought the societies in which they work many social benefits. An extra £1500 will be
provided for charitable causes for United Kingdom and Ireland every year in order to deliver the
society and to save environment (Song and et. al., 2019).
DEVELOPMENT, MILESTONES AND EXIT PLAN
Development: Positive response from the society will help owners of the new warehouse
construction store to expand business in much effective and in efficient manner among different
countries.
Milestones:
 Avoidance of costly mistiming errors that may take place.
 Re-evaluating the overall venture considering different aspects like outbreak of Corona
Virus and so on.
 Re-planning will be done considering growing body of all the detailed information
available related to risks present in the market.
Exit Plan: All the assets will be acquired by any other business organization and losses
will be bared by all the partners considering the agreement.
FINANCIAL DATA
Sources of finance:

Long term sources:
These are the sources which have liability to payoff all the principal amount after a year.
Sources Amount (£)
Long term:
Loan from bank
Loan from financial institutions
Trade credit from constructor of warehouse
Owner’s equity:
Capital
Land
Other sources:
Income from subsidiary company (Annually)
Shares in other company
Total
600,000
200,000
150,000
250,000
1,000,000
300,000
150,000
2,650,000
Personal survival budget:
Personal income Description (as
required) Monthly net income (£)
Ann
ual
net
inco
me
(£)
Employment (net income) £10,000 £120
,000
Benefits payments £1,000 £12,
000
Income from other subsidiary company £25,000 £300
,000
Dividend £100 £1,2
00
Total income across all sources: £36,100
£
4
3
3
,
2
0
0
Personal expenses Description (as
required)
Monthly net expenses (£) Annu
al net
expe
nses

(£)
Rent or mortgage payments £3,500 £42,
000
Council tax £5,000 £60,
000
Utilities £4,000 £48,
000
Phone and internet £1,500 £18,
000
TV License £200 £2,4
00
Personal and property insurance £2,100 £25,
200
Grocery shopping £1,200 £14,
400
Transport costs £1,800 £21,
600
Car tax and insurance £1,200 £14,
400
Subscriptions £550 £6,6
00
Clothing £800 £9,6
00
Leisure and entertainment £1,000 £12,
000
Money put into savings £5,000 £60,
000
Total expenses across all areas: £27,850
£
3
3
4
,
2
0
0
YOUR MONTHLY
BALANCE YOUR ANNUAL BALANCE
£8,250 £99,000
Cash flow statement:
Monthly cash flow statement:
Operating activities £
Net Income before Extraordinariness £35,500
Depreciation, Depletion & Amortization
Depreciation and Depletion £15,000

Amortization of Intangible Assets £2,000
Deferred Taxes & Investment Tax Credit £1,500
Deferred Taxes £4,000
Investment Tax Credit
Other Funds £1,500
Funds from Operations £48,500
Extraordinariness
Changes in Working Capital £3,000
Receivables £1,200
Accounts Payable £2,000
Other Assets/Liabilities £4,700
Net Operating cash flow £37,600
Balance sheet:
Assets
Current assets
Cash £45,000
Bank £800,000
Accounts receivables £14,000
Bad debt £12,000
other receivables
Inventories £15,000
Total current assets (A) £862,000
Fixed assets
Property, plant and equipment £25,000
Warehouse £1,500,000
Land £1,000,000
Computer software and equipment £30,000
Goodwill £500,000
Total fixed assets (B) £3,055,000
Total Assets (A + B) £3,917,000
Liabilities & Shareholders' Equity
Current liabilities
Short term debts £90,000
Accounts payable £150,000
Accrued payroll £60,000
Total current liabilities (A) £300,000
Long term liability
Bank loan £600,000

Non financial institute debt £200,000
Total long term liabilities (B) £800,000
Equity shares £2,779,400
Retained earnings £37,600
Total equity ( C ) £2,817,000
Total liabilities (A+B+C) £3,917,000
Sales forecast
[Warehouse construction] Sales
Forecast
Year 1
Units Sold Jan-20 Feb-20 Mar-
20
Apr-
20
May
-20
Jun-
20
Jul-
20
Aug-
20
Sep-
20
Oct-
20
Nov-
20
Dec-
20
Total Units
Sold
Product/
Service A 500 525 550 575 550 525 525 550 575 600 650 650 6775
Product/
Service B 1500 1000 1000 1250 1250 1500 1500 1750 2000 2500 3000 3000 21250
Product/
Service C 150 200 250 300 350 400 400 350 350 300 300 300 3650
Unit Price Avg Unit
Price
Product/
Service A £19.99 £19.99 £19.9
9
£19.9
9
£19.
99
£19.
99
£19.
99
£19.
99
£19.
99
£19.
99
£19.
99
£19.
99 £19.99
Product/
Service B £14.99 £14.99 £14.9
9
£14.9
9
£14.
99
£14.
99
£14.
99
£14.
99
£14.
99
£14.
99
£14.
99
£14.
99 £14.99
Product/
Service C £49.99 £49.99 £49.9
9
£49.9
9
£49.
99
£49.
99
£49.
99
£49.
99
£49.
99
£49.
99
£49.
99
£49.
99 £49.99
Sales
Growth Rate
Avg Growth
Rate
Product/
Service A 0% 5% 5% 5% -4% -5% 0% 5% 5% 4% 8% 0% 2%
Product/
Service B 0% -33% 0% 25% 0% 20% 0% 17% 14% 25% 20% 0% 8%
Product/
Service C 0% 33% 25% 20% 17% 14% 0% -13% 0% -14% 0% 0% 8%
Revenue (Units Sold * Unit
Price)
Total
Reve
nue
Product/
Service A £9,995 £10,49
5
£10,9
95
£11,4
94
£10,
995
£10,
495
£10,
495
£10,
995
£11,
494
£11,
994
£12,
994
£12,
994 £135,432
Product/
Service B
£22,48
5
£14,99
0
£14,9
90
£18,7
38
£18,
738
£22,
485
£22,
485
£26,
233
£29,
980
£37,
475
£44,
970
£44,
970 £318,538
Product/
Service C £7,499 £9,998 £12,4
98
£14,9
97
£17,
497
£19,
996
£19,
996
£17,
497
£17,
497
£14,
997
£14,
997
£14,
997 £182,464
Total
Revenue
£39,97
9
£35,48
3
£38,4
82
£45,2
29
£47,
229
£52,
976
£52,
976
£54,
724
£58,
971
£64,
466
£72,
961
£72,
961 £636,433
Unit COGS Avg COGS
Product/
Service A £4.50 £4.50 £4.50 £4.50 £4.5
0
£4.5
0
£4.5
0
£4.5
0
£4.5
0
£4.0
0
£4.0
0
£4.0
0 £4.38
Product/
Service B £3.10 £3.10 £3.10 £3.10 £3.1
0
£3.1
0
£3.1
0
£3.1
0
£3.1
0
£3.1
0
£3.1
0
£3.1
0 £3.10
Product/
Service C £1.55 £1.55 £1.55 £1.55 £1.5
5
£1.5
5
£1.5
5
£1.5
5
£1.5
5
£1.5
5
£1.5
5
£1.5
5 £1.55

Margin Per
Unit
(Unit Price - Unit
COGS)
Avg
Marg
in
Product/
Service A £15.49 £15.49 £15.4
9
£15.4
9
£15.
49
£15.
49
£15.
49
£15.
49
£15.
49
£15.
99
£15.
99
£15.
99 £15.62
Product/
Service B £11.89 £11.89 £11.8
9
£11.8
9
£11.
89
£11.
89
£11.
89
£11.
89
£11.
89
£11.
89
£11.
89
£11.
89 £11.89
Product/
Service C £48.44 £48.44 £48.4
4
£48.4
4
£48.
44
£48.
44
£48.
44
£48.
44
£48.
44
£48.
44
£48.
44
£48.
44 £48.44
Gross Profit (Revenue - COGS or Margin Per Unit *
Units Sold)
T
o
t
a
l
G
r
o
s
s
P
r
o
f
i
t
Product/
Service A £7,745 £8,132 £8,52
0
£8,90
7
£8,5
20
£8,1
32
£8,1
32
£8,5
20
£8,9
07
£9,5
94
£10,
394
£10,
394 £105,895
Product/
Service B
£17,83
5
£11,89
0
£11,8
90
£14,8
63
£14,
863
£17,
835
£17,
835
£20,
808
£23,
780
£29,
725
£35,
670
£35,
670 £252,663
Product/
Service C £7,266 £9,688 £12,1
10
£14,5
32
£16,
954
£19,
376
£19,
376
£16,
954
£16,
954
£14,
532
£14,
532
£14,
532 £176,806
Total Gross
Profit
£32,84
6
£29,71
0
£32,5
20
£38,3
01
£40,
336
£45,
343
£45,
343
£46,
281
£49,
641
£53,
851
£60,
596
£60,
596 £535,363
CONCLUSION
With the help of above mentioned information, it is being concluded that overall plan of
launching a new warehouse construction store will grab good position within the market in a
short span considering an effective marketing plan and efficient decision making process which
has been followed by the organization in much effective and in efficient manner.

REFERENCES
Books and Journals
Konikov, A., Kulikova, E. and Stifeeva, O., 2018. Research of the possibilities of application of
the Data Warehouse in the construction area. In MATEC Web of Conferences (Vol. 251,
p. 03062). EDP Sciences.
Kusrini, E., Novendri, F. and Helia, V. N., 2018. Determining key performance indicators for
warehouse performance measurement–a case study in construction materials warehouse.
In MATEC Web of Conferences (Vol. 154, p. 01058). EDP Sciences.
Kembro, J. H. and Norrman, A., 2019. Warehouse configuration in omni-channel retailing: a
multiple case study. International Journal of Physical Distribution & Logistics
Management.
Enes, M. and Silva, Â., 2020. SERVICE QUALITY IMPROVEMENT ON WAREHOUSE-
STORE TRANSPORTATION IN A RETAIL FOOD COMPANY. International
Journal for Quality Research, 14(2).
Song, Y. and et. al., 2019, January. Design and Construction of the Data Warehouse Based on
Hadoop Ecosystem at HLS-II. In 12th Int. Workshop on Emerging Technologies and
Scientific Facilities Controls (PCaPAC'18), Hsinchu, Taiwan, 16-19 October 2018 (pp.
233-235). JACOW Publishing, Geneva, Switzerland.