Detailed Business Plan: YourBay - Online Sales and Delivery Service

This document presents a business plan for YourBay, an online sales and delivery service targeting low-income earners in Kingston, New York. The venture aims to provide affordable access to daily necessities through a user-friendly website and low-cost delivery via motorbikes. The plan details the market opportunity, focusing on the need for convenient and cost-effective shopping options, and identifies key competitors such as Instacart, Fresh Direct, and Boxed. The management structure, comprising a promoter, manager, and supporting staff, is outlined, along with training strategies to ensure employees understand company objectives. Financial projections estimate a startup cost of $10,000, covering product purchases, motorbike acquisition, employee wages, website maintenance, and business permits. The plan anticipates significant growth through effective marketing and competitive pricing, with an investment potential of $1,000 per month yielding a $400 profit. A SWOT and PESTLE analysis further examines the strengths, weaknesses, opportunities, threats, and external factors influencing the business. The document concludes with an economic analysis of a unit sale, using milk as an example, to demonstrate potential profitability and return on investment.

Running head: BUSINESS PLAN 1
BUSINESS PLAN
Name of Student
Name of Institution

BUSINESS PLAN 2
PASSION
My passion for online services has raised my curiosity to examine and develop different ideas
which will meet my desire to serve the society. Online sales and delivery in New York, Kingston
is not well developed. It is for this reason that I settled on developing a website called YourBay
to serve the low-income earners who may not afford transportation once they order their daily
need products.
Venture idea
This idea was created considering people, profit, planet, and place.
People: Most people in Kingston are busy, and others are unable to access some products they
require due to high transportation fee because most of them are low-income earners.
Profit: The online service will be done for free, but the delivery at fee will earn a profit for
the company. Profit will also be made from the products in future after a good customer base
is created.
Planet: The rise of technological advancement has a revolution the planet. The Internet has
been a major development on the planet. Its positive contribution has led to its adoption in the
business sector.
Place: The firm will be serving the Kingston community. Since it’s a small locality, the
delivery of ordered products will be done using motorbikes. The services of the firm will be
accessible at any time required and orders made will be delivered to the customer’s resident.
Market opportunity
Since the targeted customers are low-income earners, it means that they will go for cheap
products. Therefore, offering a discount on the items will attract more customers. The other

BUSINESS PLAN 3
existing market gap is the high transportation cost every time they want to access a product.
Delivery of the ordered product at a low cost will save them money and time.
Products and services: The services to be offered include an access-free web page which will
be available to all people. Another service will be the delivery of the products ordered by a
customer for a small fee. The delivery fee will be lower compared to transportation fee incurred
if the customer opted to acquire the products from the shops physically. Products which will be
delivered includes all daily needed product that the customer needs. The service will be working
for 24 hours a day and seven days a week.
Customers: The firm targets all the people living in Kingston, New York area. The most target
customers are those that are unable to access quality products because of the high transportation
fee. It also targets the young people who want to utilize their mobile technology to shop online
using their phones and computers. The other market target is the low-income earners who will be
relieved from the high-cost expense of traveling to shop and also incur transportation costs. This
will save them both time and money.
Competitors
YourBay projects a lot of competition from other firms offering the same service. The main
competitors are shown in the table below.
Company name Products& services Price Niche

BUSINESS PLAN 4
a. Instacart Groceries and free delivery 2% discount on each
item bought. Save
2% on transport
Targets New York
and most cities in the
United States
b. Fresh direct Grocery delivery and a first
60 days free delivery. Beer,
dairy, vegetables, fruits and
wines & spirits.
25% discount on the
first order.
Offers services to all
of The United States
. Boxed Food products and other daily
needed products except for
groceries.
Not specified but
offers a discount on
each item purchased.
The united states
Management capability
YourBay management structure is comprised of the business promoter, the manager and
supporting staff. The promoter will appoint a manager who will oversee the recruitment and
training of the supporting staff.
Recruitment: The manager of the business will do recruitment of employees. The various
experts required include, web designers, cyclist, drivers, cashiers and other unskilled laborers.
Training: Training of employees will be done by the manager. The purpose of training is to
make the employees understand the main objectives of the company. It will also make them
understand their roles in ensuring that the goals of the firm are achieved.

BUSINESS PLAN 5
Financials
The Company is predicted to start at a low pace regarding profits, but it will get better. Predicted
amount needed to startup will sum up to approximately $10000. An amount of $5000 will be set
aside to cater for products buying, motorbikes to do the delivery at 2000$, employee to deliver
the products will be paid 500$ weekly. Creation and maintenance of the websites will cost 150$
monthly, payments to other staff will cost 350$ per week, business permits, license and
trademark registration will be 1000$ and finally rent for the store will be $4500 per month.
Venture growth: After the commencement of business, it is expected to grow at very high
speed. The firm will utilize the various marketing strategies to reach at least all the people in
Kingston. And through the pricing for market pricing strategy, there will be massive sales and
the business can expand to other regions. After three months of operation, the company is
expected to be stable.
Investment potential: Based on sales to be made in one month, an investment of $1000 per
month is expected to give a profit of 400$ per month.
Number economic of a unit of sale and return: Taking an example of milk which is a product
required for almost all households in Kingston.3 gallons of milk cheese raw milk costs $9 for the
retailer and is sold at $13.85. For most household will afford 9 gallons which adds up to $41.55
($13.85*3) and 9 gallons the retailer bought it at $27($9*3), meaning a profit of $14.55($41.55-
$27) per 9 gallons. Expected customers per day is approximated at 30 customers with each
buying a minimum of 9 gallons of milk. This means that per month the profit ($14.55per day*
30 customers per day *30days in month) will be $13095. Approximately annually the profit is
$157140 ($13095*12). This means that 1 gallon is generating a profit of $1.6. Additionally,
each customer is contributing a profit of $4.9 to the business from the purchase of the milk.

BUSINESS PLAN 6
Operations (S.W.O.T analysis)
Strengths: Some of the strengths of the YourBay include; a large number of people using the
internet in Kingston, the fair prices to be offered including low delivery costs, the existence of
qualified and skilled staff who will manage the business well.
Weakness: Since the company is new, it will take time to stabilize the market.
Opportunities: They include a large number of people who are hungry for discounts and fair
prices because of low incomes.
Threats: The Company will be operating under the threats from its competitors. Another threat
include possible hacking or system failure. Breakdown of motorcycles delivering the ordered
products is also a threat.
P.E.S.T.L.E ANALYSIS
Political: Since it’s an online service, politics don’t have much impact on the firm. But in cases
of unstable politics, the prices of products will be affected, and people are purchasing power will
also be reduced.
Economic: Economic factors that are likely to impact on the business include inflation, tax rates,
exchange rates, disposable income for consumers and economic growth. These factors impact on
the profitability of the firm and the way in which the firm does business.
Social: These factors affect how people live, how they behave and how they interact. It
comprises of the shared beliefs and attitudes of the population. In this case, we are referring to
the beliefs and attitude of the Kingston population.
Technological: YourBay thrives in a technological environment. Apart from the delivery
services, all other operations in the firm are technologically based. Any change in technology has
an impact on the organization.

BUSINESS PLAN 7
Legal: The promoter and the manager must ensure that the company has all the legal documents,
such as licenses, trademarks. The firm should also pay tax as required. A change in the
legislation affects the business operation.
Environment: Kingston is a town with all groups based. The firm must ensure that they
participate in conserving the environment by eliminating any form of pollution. The scarcity of
raw materials due to environmental change will have an impact on the business. The firm must
ensure that it adopts an ethical manner of doing business.