Energy Electrical Trading – Business Plan Template

The Market

1.  Target market

The company Energy Electrical Trading specializes in providing the accessories online delivered at homes and businesses (Brinckmann J. & Kim S. M. ,2015). They are known to have a huge base of customers all around Melbourne. It is one of the largest companies to be providing services to over thousands of people. The company provides its buyers with a range of options to house from, which include ‘flexi saver’ which enables customers to be flexible and save money. It does not bind them with any exit charges (Yu W. & Wiklund J.,2015). There are plans for people who are not used to paying bills on time, and it is literally named ‘anytime saver’ which allows the customers to pay up when they are flexible. The ‘secure saver’ plan helps the customers to fix the rate of payment so that any kind of consumptions do not cause any surges in the bill. These are options which keep their customers interested in their services (Finch B.,2016).

2.  Marketing strategy:

Like any other similar company in the market this company has had to go past hurdles to get to the position where they are trusted by thousands. One of the agendas of the company is to provide with electrical tools including contactors, circuit breakers, push buttons, PLCs and VFD. They advocate the use of electrical equipment (McKeever M.,2016). The company has come up with a range of products which will allow the users to easily access these electrical accessories. For being the best-known electrical tools retailers in the market it is necessary to target the people by the application of useful tactics. Customers from other parts of Australia can sign up and buy services (Brinckmann J. & Kim S. M. ,2015). This option of other people from other localities being able to avail services is a major plus point for people. One of the most flexible billing options are provided by this company. The customers have the freedom of paying the company not just by cash but other online methods such as credit cards and debit cards. They have user friendly methods for the users to look at their bill summaries, use of product and guidance and usage, etc (Finch B.,2016).

1.  Vision statement:

The company like any other, has a dream of expanding and spreading the area over which the services are provided (McKeever M.,2016). The company has scored fair when it has come to customers’ choice votes because of the various services they provide and the options that they let the customers avail regarding flexible payments and user-friendly plans. Everyone knows that smart energy is one of the world’s fastest growing markets. In the past, energy efficiency meant installing bulbs which save energy, switching off monitors to save energy, unplugging electronics for safety (Brinckmann J. & Kim S. M. ,2015). But now, smart energy offers the chance for users a chance to save energy in smarter ways. Mostly made to suit exact customer needs, the future looks brighter and wiser in terms of energy consumption by using these accessories that save energy. New ranges of merchandize will be made available for commercial users as well as personal users so that people go home happy with the fact that they will not have to spend tonnes on electricity bills (Yu W. & Wiklund J.,2015). A brighter but a cost-effective future is what the company dreams to build for the customers. Any organisation should always take into consideration the working which is directly directed towards the customer. The vision of the organisation should be very much clear which would be very much beneficial in a way of moving towards the organisational goals and the success of the organisation (Finch B.,2016).

Answers

2.  Goals/objectives:

The main goal and objective relating to Energy Electrical Trading is to excel in the different field, which are related to the working in the domain of the electrical trading. It would be wrong to state that to ensure the welfare and satisfaction of the customers, a company will be excusing the cost margins that they keep. However, as a company, the main objective is to provide the customers a wide range of options where they can choose and still know that they would save both money and time (McKeever M.,2016). It is the goal of the company to make it to the homes and offices of the maximum number of citizens and make them happy with the kind of service they provide (Brinckmann J. & Kim S. M. ,2015). The customer service options must be very effective like all companies and a willingness to work and a polite nature really makes a difference and that is a crowd pulling quality. Good salesmen and good customer care executives are very essential assets of a company or store (Finch B.,2016).

The target is to outdo all the other similar companies that are there in the market in terms of efficacy and product quality.

There can be two types of goal which can be related to the organisation one can be a short-term goal and another can be a long-term goal. Most of the organisation in recent times want to indulge into a long-term goal due to the factor that it takes into consideration long time profit which would be very much beneficial from the point of view of the organisation as well as customer who are involved into the service from the organisation (McKeever M.,2016).

The business would require an initial investment of almost $200000. The main objective of the business would be to earn profit in initial years even if it is less than the required rate of return. The business capital would be financed by a mix of debt and equity. $100000 would be contributed by the owners of the business. Debt capital of $100000 would be raised at an interest rate of 6%p. a.

Products/services:

The company specializes in in providing electrical products to homes and businesses like Contactors, Circuit breakers, Timing relays, Motor circuit breakers, Motor starters, Pilot lights & Push buttons. Programming of PLC (Programmable logic controller) and VFD (Variable Frequency Drives). The company has gained recognition for the innovation they put into the products sold at their stores (Yu W. & Wiklund J.,2015). From promoting renewable energy to better methods to save power; from cost effective plans to easy payment methods, this company has got all of it covered for the customers. The company is very well known for selling the machinery and equipment used for the solar energy. Apart from that they also have introduced things like wireless energy tools, which allows to charge gadgets without the hassle of keeping it on a table with wires and complications (Brinckmann J. & Kim S. M. ,2015). Internet services and gadgets are provided where different devices can be connected without wires. The company manufactures automated blinds and window sheets for making buildings smarter (Finch B.,2016). The company has always targeted to make the things easy for the users at the same time being energy and cost friendly. With the development of time, the company is also equipping itself and its manufactured goods to match the level of smartness that the current lifestyles demand (McKeever M.,2016).

1. Details of management & ownership: The main aspect which should be taken into consideration is the alteration of the business standard by means of providing quality service to the customers.
2. Experience: Running of the business and the involvement is almost 5 years

The Future

1.  Required staff

Labour	Type	Description
High skilled	Major	Taking into consideration all the important job of the organisation
Medium skilled	Less than high	Taking into consideration less critical task
Low skilled	Less	Maintenance sector

2.  Recruitment options

The company needs to put special emphasis on the kind of staff that are recruited. This can be any domain of work they are engaged in- they need to be experienced. Proper experience in the field of work is essential. That the company reputation is never at stake, and the kind of productions and the quality of manufactured goods is never at risk. It is also important to look into specific skill sets when hiring non-technical staff, as they are the ones who keep the customers coming in. Code of conduct at work and ethics are very essential qualities which are required (Finch B.,2016). The company ensures that the candidates come in through recommendations, interviews, website entries and methods which are verified and authentic to make sure that they quality of staff is good (McKeever M.,2016).

3.  Training programs

Various training programs are hosted along with workshops from time to time so that the workers know how to keep up with the tools and how to operate these electrical accessories. The new technologies are discussed, meetings are held frequently and sometimes guest technicians who are very effective and skilled are also invited to train the factory workers (Yu W. & Wiklund J.,2015).

4.  Skill retention strategies

Proper training and weekly meeting would be very much essential for testing the skills of the labours.

Product/Service	Description	Price
Electronic accessories	The company provide with the electronic equipment including battery, motors, led.	Average price of $5 per component
Electrical instruments	Deliver electrical equipment at homes and businesses with in time including breakers, testers, generators , safety and prevention tools.	Average price of $20 per product

1.  Market position:

The company makes sure that the products are user-friendly and cost effective, the sole purpose is to squeeze in these two factors while delivering the best in the market (McKeever M.,2016).

2.  Unique selling position:

No hidden charges in services is a guarantee that the company provides. Apart from that the customers are allowed to choose their methods and plans for payments. This is a huge plus point compared to other companies in the market (Finch B.,2016).

3.  Anticipated demand:

Given the fact that the company is one of the top three service providers in the domain, the business in the near future does not see a drop. This is because the strategy of the company is to align the agendas to the dynamic needs of the time and technology. Since the products are cost effective, the sale does not have a chance to fall.

4.Pricing strategy

 The Company follows the rule where they want their products to be cost effective while providing the best service possible. This will not only make their place secure but also will make the customers happy (Finch B.,2016).

5.  Value to customer

 Customers focus on getting the work done at a pocket-friendly rate. But this does not mean that people will be naïve about the kind of product they invest in. The quality of the manufactured electrical and electronic accessories is of utmost importance and the sustainability is also an important factor for every customer now. They prefer something that will provide with the best experience but comes in a price which is affordable (McKeever M.,2016).

6.  Growth potential

 The Company has a huge potential for growth. This is because the company understands the market needs, studies it very well and arranges to manufacture things and cater to the current needs. They are ready to evolve with the needs of the customers which is the mark of wisdom (Yu W. & Wiklund J.,2015).

Business Details

1.  Research & development (R&D)/innovation activities

There is a RND team in the organisation (Research and development team)

2.  Intellectual property strategy

The sector can be maintained by means of providing loyal workers in the overall organisation

The yearly total insurance cost for the company would be $2400

Risk	Likelihood	Impact	Strategy
Political Risk	Highly	High	Taking into consideration the laws of the government.
Social risk	Medium	Medium	Taking into consideration the need of the people
Economical risk	High	High	Planning should be made better
External risk	High	High	Exploitation of the resources should be done properly

There are different types of law which an organisation has to abide they can majorly form the basis of the working of the organisation

1.  Production process

Low level production process

2.  Suppliers

Main supplier is local supplier to reduce the cost of transportation

3.  Plants and Equipment

Equipment	Purchase date	Purchase price	Running cost
Vehicles	01-07-2017	$15000	$1500
Computer equipment	01-07-2017	$3000	N.A.
Computer software	01-07-2017	$2500	N.A.
Phones	01-07-2017	$1500	$100
Fax machine	01-07-2017	$2000	N.A.

4.  Inventory

Inventory item	Unit price	Quantity in stock	Total cost
Electronic accessories	$4	1250	$5000
Electronic Equipments	$16	625	$10000

5.  Technology (Software)

ERP (Enterprise resource planning)

 The trading hours would be normally 8 hours a day.

7.  Communication channels

Telephone (landline/mobile), post box, shopfront, email, fax, internet blog or social media channel.

8.  Payment types accepted

 Cash and PayPal

9.  Credit policy

NO credit policy is applicable

10. Warranties & refunds

 warranty is about 80 days from dispatch of the product

11.Quality control daily check of the process and the quality of the product

12.Memberships & affiliations: NO

1.  Environmental/resource impacts

Taking into consideration different laws of the government

2.  Community impact & engagement

Community can be engaged to reduce the overall impact

3.  Risks/constraints

1. Social risk
2. Political risk
3. Economical risk

4.  Strategies

Environment audits are performed in a monthly manner

5.  Action plan

Sustainability milestone	Target	Target date
Less	High	Monthly
Less	Low	Yearly
Complex	High	Monthly
Budget	Less	Monthly

1.  Market research

Primary analysis

2.  Market targets

The quality of the product would be high and it would be on a yearly basis.

3.  Environmental/industry analysis

The employee which would be appointed would be long term employee

4.  Your customers

1. Customer demographics

The target audience of the customer would be every age group

1. Key customers

Key customers would be the local people who are involved into the daily need product.

1. Customer management

The customer management can be managed by taking into consideration the demand of the customer and providing the best service to them

Strengths	Weaknesses
Giving service to the customers in a latest fashion manner	Rental cost can be considered one of the weakness sectors

Opportunities	Threats
Satisfaction increase among the customers	Competition high in the market

The service sector in the organisation is trying to achieve higher standard but the most important part is that the price which is offered is very much less than others.

1.  Competitor details

Competitor	Established date	Size	Market share (%)	Value to customers	Strengths	Weaknesses
Ralf	2004	58	50%	Price	Best price	Does not take into consideration market demand
Guvo	2008	60	70%	Quality	Best quality	High price
Parker	2001	90	67%	Service	Best service	High price
Hills	2009	70	69%	Quality	Best service quality	High price
Abz	2014	90	90%	Quality	Best quality service and price	Time factor

1.  Sales & marketing objectives

Sales team usually take part the part which is related to reaching to the customer and seeling the product. The main objective of the marketing is to take into consideration different goals and objectives of the organisation and to deliver people the quality electrical product in time.

2.  Unique selling position

The main aspect which should be taken into consideration is getting the need of the customer. On the other hand, the price of the commodity should be very much less as compared to other products.

3.  Sales & distribution channels

Channel type	Products/services	Percentage of sales (%)	Advantages	Disadvantages
Internet	Daily product	80%	Reaching customers are easy	Price change not easy
Direct mail	Invoice	70%	Direct communication with customers	Alteration of the invoice is difficult
Whole sale	Any product	50%	Bulk sale	Defect identification is difficult
Shopfront	Daily product	90%	Easy to communicate	Getting the need of the customer easily.

1.  Vision statement

The vision statement should be delivery of the good service to the customers.

2.  Mission statement

Planning can be considered one of the most important steps in this context. If planning is appropriate it would directly help in achieving the goals.

3.  Goals/objectives

Short term goals mainly involve delivery of the service and the product to the customers and long-term goal mainly involve after sales service to the customers.

4.  Action plan

Please note: This table does not include sustainability milestones as they are listed in the sustainability section above.

Milestone	Date of expected completion	Person responsible
Planning of the goal.	Long term	Manager
Achievement of the goal	Long term	Manager and other members
Customer satisfaction	Short term	Organisation employee
Competitive advantage in the market	Short term	Manager

1.  Financial objectives

The company would consider operating the business in such a manner in the initial years that it is able to at least generate profit even if it is unable to fetch the required rate of return.

2.  Finance required

An amount of $200000 would be required to start the business. The business would be financed equally by debt and the capital. The debt capital would be repayable after 5 years. The debt capital would be raised at an interest rate of 6%. An amount of $100000 would be contributed by the owner in the form of share capital.

The financial tables on the subsequent pages are based on the assumptions listed below:

• We have assumed that the rate charged to the customers would be constant for the next three years.
• The business would witness a growth of 10% in the first year and 12% in the second year.
• The costs of the goods sold would increase proportionately.
• The income tax rate applicable to the company would be @30%.
• The prepaid expenses would be paid at the end of the year.
• The income tax expense would be paid at the end of the year.
• The establishment expense would be the one-time expense that will not be incurred in future years. It consists of training expense and solicitor’s expense.
• The insurance expense would be payable at the beginning of the year.
• No assets would be sold of the company in the first three years.
• The fixed assets would be depreciated on a straight-line basis over ten years. The depreciation would be charged on furniture, vehicle and equipment.

References

Yu, W., & Wiklund, J. (2015). NASCENT VENTURE TEAM DIVERSITY AND NASCENT VENTURE PERFORMANCE: AN INVESTIGATION OF BUSINESS PLAN AND OPPORTUNITY TYPE (SUMMARY). Frontiers of Entrepreneurship Research, 35(8), 11.

Finch, B. (2016). How to write a business plan. Kogan Page Publishers.

McKeever, M. (2016). How to write a business plan. Nolo.

Brinckmann, J., & Kim, S. M. (2015). Why we plan: the impact of nascent entrepreneurs’ cognitive characteristics and human capital on business planning. Strategic entrepreneurship journal, 9(2), 153-16