Executive Summary
Objectives Mission Keys to Success Company Summary
Company Ownership Start-up Summary Company Locations and Facilities Services Technology Market Analysis Summary
Maret Segmentation Service !usiness "nalysis Strategy and Implementation Summary
Competitive #dge Sales Strategy Management Summary
Executive Summary
Statesville "rchitecture will be an architectural $irm speciali%ing in residential& commercial and industrial architecture in domestic and international marets based out o$ Capital City& Statesville' "n architect should be consulted when considering doing wor to a building' They will not only listen to any ideas but will also be able to suggest alternative options' (t is also part o$ the architect)s service to help with planning permission permission and building regulations& and to ensure that the plan which is decided upon is strictly $ollowed by the builders' Statesville "rchitecture will plan and design new buildings as well as the e*tension& conversion and conservation o$ e*isting properties' +e will guide the client through the process $rom the planning stages until completion& depending on the client)s needs and the scale o$ the project' The title o$ architect is protected by law' Statesville "rchitecture could act as part o$ a design team or we may wor alone' This is determined by the si%e o$ the project' Once appointed& Statesville "rchitecture will meet with the client to discuss ideas and details& such as the budget and liely duration o$ the project' "n initial site visit will be made and design proposals will be dra$ted and presented to the client' ,esearch must be carried out into the implications o$ planning legislation& building regulations an d health and sa$ety issues regarding land use and the planned development' Statesville "rchitecture will build up an understanding o$ the implications o$ each project& having consulted potential users and clients about the design o$ their environment' The $irm will provide architectural services using technologically superior processes& providing greater value $or clients and enhanced design and construction' The target client is segmented into $our categories home ho me owners& developers& government and contractors' Statesville "rchitecture)s competitive edge will be the nowledge o$ digital-based design resources' Superior customer service will also be a point o$ $irm di$$erentiation' First year sales are e*pected to reach .// by the end o$ the $irst year and increase to in e*cess o$ .// by the third year o$ operation' 0ear two will mar the $irst year o$ pro$itability with pro$its almost .// by the end o$ the third year' Objectives
The objectives $or the $irst three years o$ operation include1
To create a service-based company whose primary goal is to e*ceed customer)s e*pectations' To increase the number o$ clients served by at least 234 per year through superior per$ormance and word-o$-mouth re$errals' To develop a sustainable business that generates value $or their customers' To generate a pro$it& grow at a challenging and manageable rate& and to live up to the industry standard ethical codes' Sales o$ .// in 233/ and .// by 233/' Maret e*pansion o$ 234 per year'
Mission
Statesville "rchitecture) mission is to provide comprehensive architect services $or our customers' +e e*ist to attract and maintain customers' +hen we adhere to this ma*im& everything else will $all into place' Our services will e*ceed the e*pectations o$ our customers' Keys to Success
5rovide a service that is technologically superior to the competitions' 6tili%ing a diverse sta$$ o$ architects to provide a wide variety o$ product styles' " large array o$ global connections'
Company Summary
Statesville "rchitecture will provide a service o$ architectural design via digital media to the limits o$ technology' This approach will o$$er optimal e$$iciency to the $irm and superior value& design processes& and construction methods to the client' Company Ownersip
Statesville "rchitecture will be created as a corporation based in Capital city& Statesville' (ts principal investor and operator& 7ohn Smith& will own it' Start!up Summary
"rchitects in one person practices can wor $rom home in order to reduce initial costs' 5ro$essional standards must be upheld and a separate area and phone line should be made available $or client wor' ($ the practice operates $rom an o$$ice base& the premises should be easily accessible' " small o$$ice could be leased $or consultation and design preparation could be done $rom home' #ssential o$$ice e8uipment includes a phone9answerphone& $a* and mobile phone to eep in touch with clients' Computer "ided :esign ;C":< techni8ues may be re8uired to produce simulations o$ the $inished building' This will re8uire a Mac computer or 5C& a laser printer and C": so$tware' " computer is necessary $or business correspondence and $or eeping details o$ wor schedules' Most design e8uipment will have been accumulated during training' This should include a drawing board pacage with stand& board& and parallel motion& a chair to accompany this and a plan chest' "dditional costs will include membership o$ the local architects associations rates are normally around .233 depending on the length o$ time an architect has been 8uali$ied' Other costs will include 5ro$essional (ndemnity insurance& a $ire-proo$ cabinet ;$or storing drawings<& promotion& stationery& and legal advice' Statesville "rchitecture)s start-up costs total .=2&>33' The most signi$icant purchases needed are a blueprint machine& plotter& and dra$ting supplies' .?>&333 is needed in cash to sustain the business $or the $irst month to cover rent and wages until a pro$it is made' Start-up #*penses Legal Stationery etc' !rochures Consultants (nsurance
.?&333 .=&333 .?&333 .2&333 .>33
,ent #*pensed #8uipment
.?&333 .@&333
Total Start-up #*pense
.?A&>33
Start-up "ssets Beeded Cash !alance on Starting :ate
.?>&333
Total Short-term "ssets
.?>&333
Total ,e8uirements
.=2&>33
Funding 7ohn Smith Other
.?>&333 .?A&>33
Total (nvestment
.=2&>33
Company "ocations and #acilities
The interim o$$ice o$ Statesville "rchitecture will be located in Capital City& Statesville until dedicated o$$ice space is secured'
Services
Clients will see Statesville "rchitecture
as e*perts - providing nowledge& e*perience and problem-solving sills as leaders - setting standards in innovation and operational e$$iciency as partners - building collaboration to support
(n the end& our objective goes beyond producing beauti$ul designs' +e want to create success$ul projects - which means
#ngaging our clients and their sta$$s Managing projects sill$ully "nticipating client and user needs Supporting decision-maing with nowledge
+e will wor to eep Statesville "rchitecture at the leading edge o$ design& and our clients at the $ore$ront o$ their industries' +e are innovators& which is what we believe architects should be' Statesville "rchitecture has e*perienced principals and sta$$ dedicated to each o$ the maret sectors we serve' +hat they share is the ability to
,esolve comple* and sometimes con$licting issues 6tili%e tools to enhance decision-maing& and Solve problems not just design buildings' (n short& nowledge and e*perience bene$it our clients'
"t Statesville "rchitecture project is not about us it)s about you' Our value comes $rom the service we provide as we consolidate client goals& user needs& design aesthetics and economic sense' +e strie these balances by guiding clients through a uni8ue& collaborative process' Our sharpest $ocus is on
6nderstanding the design criteria $or each client)s business :esigning to reach the client)s needs and objectives (nvolving users& owners and employees strategically in the process
This is what we e*pect an architect to do' +hy choose an architect
There are various methods o$ choosing an architect' One obvious& but potentially risy way& is to select one $rom the 0ellow 5ages' "nother is to base the choice upon a personal recommendation' " third and recommended alternative is to contact Clients Services at the local (nstitute o$ "rchitects who act as a broer between clients and architects they will provide a list o$ practices suitable $or the potential project' (t is not advisable to rely on )$ee-bidding) to locate appropriate services' (t is important to choose the architect based on the 8uality o$ their service and product& not solely on the $ee' The client should as to see a port$olio o$ their wor and visit completed buildings' (t is a good idea to chec that they have wored on similar projects and have the appropriate design sills' "n architect should be appointed when carrying out any o$ the $ollowing activities1
"lteration to e*isting premises' #*tension to e*isting premises' Bew buildings' +ors to a listed building or in a conservation area' Change o$ use o$ a building or site' Site9building development proposals' 5lanning or en$orcement notice appeals ;these o$ten become necessary because an architect was not appointed in the $irst instance<'
The "rchitect)s ,ole "n architect)s services include the $ollowing1
:iscussing any re8uirements and helping the client prepare a brie$' :rawing up an action plan' "greeing on an action plan' Delping to identi$y appropriate sites& carrying out an evaluation and visiting the proposed site' 6ndertaing a $easibility study' (nvestigating any statutory regulations applicable' Eiving advice regarding other services the project re8uires' 5reparing a timetable' 5reparing details $or planning permission9building regulation applications' :eveloping designs' :etermining the cost o$ the e*ercise and deadline' 5reparing production details' "dvising on appropriate procurement methods' 5reparing tender documentation& obtaining tenders and advising on them' Begotiating with potential builders' :rawing up a building contract' (nspecting the site and the progress made' "dministering the contract'
Submitting $inancial reports' Eiving advice on maintenance regimes' 5roviding drawings o$ the building as built'
"ppointing an "rchitect ($ an architect is appointed& the $irst stage o$ their wor involves a discussion o$ the re8uirements& budget& timescales and $ees' "$ter this discussion and the preparation o$ a $ull brie$& the architect will draw up a plan o$ action which should be agreed' (n preparation $or this discussion& it is a good idea $or a manager to become $amiliar with ownership rights o$ the property& e'g' rights o$ way or boundary $ences' (t is important to stay aware o$ what is to be achieved' 5lanning a Construction 5roject The second stage o$ the procedure is $or the architect to visit the site in order to mae an evaluation o$ what might be done' ($ a site has not been identi$ied& the architect may be able to advise on appropriate locations and accommodation' " setch proposal may be prepared at this stage as an initial point o$ discussion and agreement with the client' " $easibility study can then be undertaen by the architect& giving possible alternative options o$ spatial arrangements and elevational treatment' ,estrictions may be imposed upon the design by statutory items such as building regulations& $ire and means o$ escape' :uring this design process the architect will advise whether other consultant disciplines will need to be appointed& such as a 8uantity surveyor& structural engineer& landscape architect& mechanical and electrical engineering consultant and a planning supervisor to deal with health and sa$ety' On smaller projects the architect may carry out their own survey o$ the land or building in 8uestion' The cost o$ this is usually based on an hourly rate and is not included in the percentage $ee 8uoted by the architect' 5reparing the "rchitect)s :esigns Once the plan o$ action has been agreed& the architect will organi%e meetings and surveys with all the other bodies involved in the project' (t is important to be aware that changes to the plans may be necessary as part o$ the planning process' The meetings and surveys will enable cost estimates and outline proposals to be prepared& leading to scheme designs developed in conjunction with all the other bodies employed on the project' :ecisions on 8uality o$ wormanship& materials& etc are made at this stage& to enable the 8uantity surveyor to monitor the costs' " planning application may be submitted& $or which a statutory $ee will be paid by the client to the local authority' "s planning approval cannot be guaranteed& it may be prudent to await consent be$ore instructing the architect to
prepare building regulations documentation' "gain& the client will be responsible $or statutory $ees& one at the time o$ $ormal application and $urther $ees $or site inspections' Once planning and building regulation approvals have been obtained& the architect will be in a position to prepare detailed design drawings in consultation with the other disciplines engaged on the project' The number o$ drawings will be dependent on the si%e and comple*ity o$ the project and may be used initially by the 8uantity surveyor to prepare a !ill o$ uantities& and by the contractors at tender stage and then on site during construction' "rchitects and !uilding Contractors The architect can now prepare production in$ormation and tender documents' This in$ormation is then sent to contractors tendering $or the wor' The architect will provide advice regarding the suitability o$ tenders submitted' Once a contractor is selected& the client can as the architect to draw up a building contract between the business and the contractor' Once the project is underway& the architect can visit the appropriate site at regular intervals to inspect the wor being carried out' The architect will convene site meetings& to which the client may be invited or will be given the minutes taen by the architect& and they will generally administer the terms o$ the building contract' The architect can administer the terms o$ the building contract relating to the completion o$ the wor& give advice on maintenance and arrange $or drawings o$ the building pinpointing drainage lines& services& etc to be provided' "t various stages during construction& the architect will issue (nterim certi$icates $or payment to the contractor' :uring the de$ects liability period ;or retention period<& usually si* or ?2 months a$ter practical completion o$ the project& an amount will be retained by the business until any de$ective wor is satis$actorily completed' "rchitects) Services (n addition to construction projects& many practicing architects can provide a range o$ additional services' These may include1 surveying and inspection& $urniture and interior design& cost estimating and $inancial advice and undertaing negotiations' Conditions o$ "ppointment o$ an "rchitect +hen appointing an architect& a Conditions o$ "ppointment document should be completed& checed and agreed upon' The points covered should include1 the architect)s authority and duty o$ care& use o$ consultants& site inspection& client)s instructions& copyright assignment& suspension and termination& settlement o$ deposits& and governing law' There are standard $orms $or this purpose'
"rchitects) Fees and #*penses The local (nstitute o$ "rchitects will have a scale o$ indicative percentage $ees based upon construction costs& building type and nature o$ the wor' Fees are usually charged by negotiation on an hourly basis $or small jobs& or as a percentage o$ the building wors $or larger contracts' "ny agreement should also include stage payments& suspension& resumption and termination& e*penses and disbursements& variations and local ta*'
Market Analysis Summary
"n architect will plan and design new buildings as well as the e*tension& conversion and conservation o$ e*isting properties' The architect will guide the client through the process $rom the planning stages until completion& depending on the client)s needs and the scale o$ the project' The title o$ architect is protected by law' The architect could be part o$ a design team or may wor alone' This is determined by the si%e o$ the project' Once appointed& the architect will meet with the client to discuss ideas and details& such as the budget and liely duration o$ the project' "n initial site visit will be made and design proposals will be dra$ted and presented to the client' ,esearch must be carried out into the implications o$ planning legislation& building regulations and health and sa$ety issues regarding land use and the planned development' " good architect will build up an understanding o$ the implications o$ each project& having consulted potential users and clients about the design o$ their environment' The architect will help the client to $ind other consultants such as 8uantity surveyors and engineers i$ re8uired' Cost and materials will be discussed and more speci$ic designs prepared in consultation with the 8uantity surveyor' The architect will apply $or planning permission and building regulations permission $or the client' +hen approval has been granted& the architect will obtain tenders or negotiate a price with contractors' ,egular site visits are necessary to monitor progress and site meetings should be attended' "rchitectural practices usually o$$er a complete service& including site inspection and contract administration' Fees can be charged in a number o$ ways - by the time wored& a percentage o$ the total construction cost or a lump sum basis' #*penses may be included in the $ee or charged separately' "rchitects may o$$er some advice be$ore a $irm contract is signed' Most local architect associations will have standard appointment documents $rom which clients can select the services they need' The industry is susceptible to economic changes and can be a$$ected by $luctuations in public spending and in the private housing maret' This could cause di$$iculties in maintaining a constant supply o$ wor' Short term contracts are becoming the norm& there$ore a range o$ related services should be o$$ered' These may include interior design& project management and planning supervision and the administration and management o$ building operations' (nterior design is becoming increasingly important in domestic& commercial and retail marets' There has been an increase in the number o$ new homes being built& as well as a rise in single person households' Clients are also becoming more concerned about environmental $actors regarding buildings' Statesville "rchitecture will provide its service to homeowners who are looing to remodel& as well as developers& contractors and government agencies in the domestic and international marets' "lthough we are going to cater to a relatively broad scope o$
customers& the company will decide what the target maret is based on sales and trends e*perienced in the initial months o$ operation' Market Segmentation
Customers may employ an architect $or design and construction o$ new properties& or $or conversion or e*tension wor' +or can be gained $rom private developers and housing associations $or retail& housing or industrial developments' !est Galue stipulates that local authority contracts must be put out to competitive tender which has opened up wor $or civic developments' #stablishments not under local authority budgetary control may re8uire architectural services' 6niversities may re8uire wor on halls o$ residence& libraries and con$erence $acilities' Dowever& these contracts will be subject to intense competition $rom established practices' The maret is diverse& with an increase in leisure developments such as sports and cinema comple*es and shopping malls' +or may also be obtained $or new o$$ice developments and re$urbishments' 5otential clients $or Statesville "rchitectureHs maret are broen down into $our categories1
Dome owners :evelopers Eovernment Contractors'
Domeowners are the largest group based on shear population and this will be emphasi%ed in all o$ the $irm)s mareting and promotional e$$orts' Targeting the remaining three groups will be dependant upon establishing meaning$ul relationships& and responding and 8uali$ying $or re8uest $or proposals' Service $usiness Analysis
Competition is $ierce& especially in cities with well-nown practices' "rchitects usually wor $or small and large private practices and may be sel$ employed or wor on a $reelance basis' "round 2I&333 practices and ?2J&333 architects are registered in the 6'S' Most are small businesses& with between one and $ive chartered members' "rchitects may also be employed by local authorities or may wor in related areas such as journalism& teaching or research' Some architects are nown $or certain types o$ projects such as public buildings or may speciali%e& e'g' in conversions or landscape architecture' For the small practice& a wide range o$ wor is essential' The architecture business across the country is primarily made up o$ small to mid-si%ed $irms speciali%ing in a particular type o$ architecture' !ut there are also a $ew large $irms that have almost dominated the design o$ large commercial and industrial $acilities' Statesville "rchitecture)s main competitors will be the larger $irms' The reason $or this is that the larger $irms have more capital to wor with& which enables them to eep up with technological changes much 8uicer than a small $irm'
Strategy and Implementation Summary
"rchitectural practices should advertise in the 0ellow 5ages and Thomson)s directories' Members o$ an institute are listed in its directory& which is also available on its website' The institutesH client advisory service will deal with en8uiries and helps clients to $ind a suitable architect' There are no promotional restrictions however& most associations will emphasi%e standards o$ pro$essional conduct' Contacts should be developed with potential sources o$ custom& such as local authorities& universities and businesses' " port$olio o$ previous projects& including any joint projects& is essential to show to prospective clients' " website would help to showcase the wor o$ the practice' The press could be in$ormed o$ completed projects& especially any prestigious or locally signi$icant contracts' Competitions and awards o$ten help to win e*posure& though they should not detract $rom client wor' (n the $irst year o$ business& Statesville "rchitecture will $ocus on the downtown area in Capital City& Statesville' "s the $irm grows& sales will e*pand through out Statesville and across the country& eventually spreading worldwide' Competitive Edge
Statesville "rchitecture will charge $ees in line with the local (nstitute o$ "rchitects $ee scale is a guide to architects and clients based on historic data' Fees can be negotiated& and $or larger contracts& it is important to $or the client to meet with the architect who will be dealing with the project& as dealings with them could last $or a couple o$ years' This can help in avoiding personality clashes or misunderstandings over re8uirements' This can be a more important issue than the $ee' :ecisions should not be made on the basis o$ $ee alone but on the overall value o$ service' Statesville "rchitecture can demonstrate an ability to do a job within a speci$ied budget' +e will provide details o$ our pro$essional indemnity insurance and we will ensure that the sum covered $or each and every claim is ade8uate' Statesville "rchitecture will be happy to discuss undertaing some or all o$ the services with a commensurate variation in $ees' Statesville "rchitecture is happy to discuss ideas with a client be $ore they are constrained by leases& loans& etc' +e may be able to identi$y suitable sites9premises $or the business to consider' This company will have a competitive edge over both the larger and smaller $irms because it will be composed o$ the new generation o$ architects that are $luent in the digital world' Many $irms today employ an older generation o$ architects that $ind the computer a mystery& and those that do use the computer only have the ability to design in 2-:'
Sales Strategy
Sales in this business is a direct result o$ e*ceptional client service' (t is based on the $irm)s image and the re$errals that result' The more clients this company pleases& the more re$errals are given' +e will wor to provide a positive e*perience in all cases so our clients will re$er and return to us $or $uture wor as well' Sales #orecast
Sales are broen down into three categories1 design& production& and construction' These three categories put together mae up one architecture project' The totals $or each project are based on a ?34 cut $rom the total construction costs o$ each job' "ctual sales could vary depending on the project si%e and budget'
Management Summary
This company will start with one "utoC":9Form- architect and the $ounder' (n "ugust o$ 233"& a clerical position will be added and the month $ollowing an additional C":9Form- consultant will be added' !y 233"& Other C":9Form- architects will be hired to compensate the increased worload'
Strategic %irection
S&O' Analysis
This is a summary o$ the business)s most important strengths& weanesses& opportunities and threats' Strengts o( te $usiness
#*cellent 8uality product )&ic means tat) "dds to reputation' Eood management sills' )&ic means tat) +ell run business Eood ability to e*tract in$ormation' )&ic means tat) Can control the business'-
&eaknesses o( te $usiness
Bew 5layer' )&ic means tat) Credibility problem may a$$ect initial sales Lac o$ systems )&ic means tat) The company needs to develop systemised operational sales techni8ues or sacri$ice pro$its
Opportunities in te Marketplace
"dd-on products such as // )&ic means tat) " potentially enormous maret $or N0O6, COM5"B0 B"M# to tap into' Erowing maret segments' )&ic means tat) N0O6, COM5"B0 B"M# should target these segments'
'reats in te Marketplace
(ncreasing supplier prices' )&ic means tat) ,esulting in reduced pro$itability' :eclining si%e o$ the // segment' )&ic means tat) Beed to $ocus on growing segments to spread the company)s port$olio
'e Actual *lan
$usiness Objectives
Corporate Objectives ;Eoals< Short Term Corporate To achieve a sales level o$ .***** To achieve pro$it level o$ **4 Long Term Corporate To achieve sales in 233! o$ .***** To achieve sales in 233C o$ .***** To achieve sales in 233: o$ .*****
Mareting Objectives ;Eoals< Nyour product P? Segment1 P2 Segment1 P= Segment1 Other1
To achieve sales to .****** To achieve sales to .****** To achieve sales to .****** To achieve sales to .******
Bew 5roducts To evaluate and launch new products or services which will turn over .****** in the $irst year'
Other Objectives ;Eoals< To not e*ceed a mareting budget o$ .****** To not e*ceed a payroll budget o$ .***** To not e*ceed a general overhead budget o$ .******
The major tas objectives $or each area o$ the organisation& together with responsibilities and timings are detailed in the ,oll-Out 5lan'
Marketing *lan
M",K#T(BE O!7#CT(G#S Sales Objective
To achieve sales by QQ4 to .QQQ
Sales Objectives by Maret Segment' P? Segment1 P2 Segment1 P= Segment1 Other
To achieve sales to .****** To achieve sales to .****** To achieve sales to .****** To achieve sales to .***
5,OMOT(OB"L ST,"T#E(#S 5rint "dvertising :evelop a corporate brochure' 7une 233" "dvertise in local publications 7an 233" "dvertise monthly in maga%ines that are speci$ically targeted to the // and // segments' 7an 233" "dvertise monthly in maga%ines that are aimed at the general industry' 7an 233"
Lead Eeneration 5rogram Conduct monthly on-going lead generation program' Send out monthly direct mail lea$lets with response coupons' uali$y leads and mae appointments by using telemareting sta$$' Oct 233"
Centres O$ (n$luence 5rogram
5ersonally contact at least ten potential partners each wee' 5roduce a monthly newsletter that shows e*amples o$ ;your products< and how customers have bene$ited $rom using them' Oct 233"
5, 5rogram 5, release to be initiated each month to various trade journals and maga%ines' 7ul 233"
Sales Force #mploy telemareting sta$$' Sep 233" #mploy sales specialist $or // segment' Mar 233" (mplement a new structural program $or the sales $orce& allocating sales reps to accounts and segments rather than area' 7an 233" Organise training program to be implemented' 7an 233" Lost Customers Contact monthly all past customers that have not re-ordered to as why not and see whether we can win bac their business' :ec 233" Follow up #n8uiries Contact all en8uirers monthly and determine i$ they have purchased $rom a competitor and& i$ so& why' :ec 233" #*isting Customers Follow up all new customers two wees a$ter they purchase to ensure they are satis$ied with the product' 7ul 233"
Send 8uarterly newsletter to e*isting customers to eep them in$ormed o$ our other products' 7an 233" Try and up-sell all en8uiries $or our standard range to our premium range' Feb 233" Sales 5romotion :evelop an ongoing sales promotion to target e*isting customers' "ug 233"
5,(C(BE ST,"T#E(#S 5rice Level Maintain price level in all segments at **4 higher than competitors to rein$orce the 8uality image' 7ul 233" :iscounts O$$er *4 discount $or payment with order' 7ul 233" Manu$acturer)s "gents 5ay a **4 commission on retail price o$ all con$irmed sales orders passed to us by our manu$acturer)s representatives' 7ul 233"
:(ST,(!6T(OB ST,"T#E(#S Channel :istribute direct to the client where possible' 6se manu$acturer)s agents in outer regions' "pr 233"
E#B#,"L M",K#T(BE ST,"T#E(#S Competitor 5ro$ile
Keep updated competitor pro$ile' 7un 233" Mareting in$ormation system :ocument on every en8uiry Dow did you hear about us 7ul 233" :ocument on every order Dow did you hear about us' 7ul 233" 5roduce monthly sales reports by product& by maret segment& by territory and by sales representative' Mar 233!
#inancial *lan
F(B"BC("L
Be*t 0ear)s Objectives
Bet 5ro$it Eross 5ro$it
To achieve $orecast net pro$it o$ .*****' To increase the average gross margin $or all products $rom **4 to **4' To not e*ceed the $ollowing e*pense budgets' . ******* . ******* . ******* . *******
!udget 5roduction budget Mareting !udget 5ayroll !udget Management Overheads
F(B"BC("L ST,"T#E(#S Cash Flow #liminate cash shortage in the traditional tight periods o$ :ecember to 7anuary 7un 233" Collection :ays ,educe the average collection days $rom ** days to ** days'
7un 233" 5ayment :ays Maintain payment o$ bills& on average& to ** days' 7un 233" #*penses :evelop and implement new policies on approval and signatories on e*penses' Mar 233C Leases 5ay o$$ the e*isting lease on capital e8uipment& thus reducing the monthly $inancial burden' 7un 233" Overdra$t ,educe the overdra$t $rom .****** to .******* 7un 233" +ages 5ay all wages on a monthly basis instead o$ weely' 7an 233" Bew #8uipment Organise $unding $or the .******* e*penditure on new e8uipment' 7an 233" 5aybac #nsure a paybac on new e8uipment through sales o$ one year' 7un 233! (nventory (mprove the number o$ stoc turns to ***** a year' 7un 233" ,ent Begotiate new terms on the premises and reduce e*isting payments by **4
"ug 233! !an Charges ,enegotiate with the ban and consolidate some outstanding loans with lower interest rates' "ug 233!
Organisational *lan
O,E"B(S"T(OB"L "B: M"B"E#M#BT Be*t 0ear)s Objectives !udget Sta$$
To not e*ceed the payroll budget o$ .******* To employ or re-deploy a total o$ ***** $ull-time and part-time sta$$ over the ne*t year'
D6M"B ,#SO6,C# ST,"T#E(#S Organisational :raw organisational chart' "ug 233" :evelop incentive scheme related to job re8uirements' "ug 233" 5olicies and procedures :evelop policies and procedures manual' 7uly 233" #mploy or re-deploy sta$$ #mploy two machine operators' Mar 233" #mploy one 8uality control sorter' May 233"
#mploy telemareters' Sep 233" #mploy one specialist // salesperson' Mar 233" #mploy one mareting assistant' Feb 233" #mploy one accounts receivable person' 7ul 233" Training Carry out training needs analysis' 7an 233" Morale (nstall suggestion bo*' 7an 233" Organise monthly meetings to $ollow up tass 7an 233"
