Describe about the Fast Movers Limited Busines Plan for The Moving Business.
Fast Movers Limited (FML) is a moving company based in India. The company will be situated in the heart of Mumbai where it will target to serve a large portfolio of clients. The reason behind the moving business is the need to minimize the hustle that people have to endure when moving and the market potential of the firm (Asperg, 2007, p. 11). Moving is not easy, and it requires a lot of resources such human labor and transportation media such as trucks. At one time everyone has heard a friend or a close colleague complaining of the valuable belongings that were lost or destroyed during the moving process. This was the main idea that sparked the start of the business venture. What if people could pay a company and help them move? The moving business will be a good business, and Fast Movers Limited will capitalize on the opportunity given that there is an extensive market. The company aims at revolutionizing the lives of many people who love to move and leave in different towns. The company will partner with a security company to help guard the items of the clients and ensure transparency to the customers.
The market is large as many people all over the country move daily from one place to another and many organizations transfer their employees to other branches. The market has a small number of players currently who only cover the adjacent towns. People shift out of Dubai at every single month in the year due to various issues such as work transfers or want to reside in rural areas. The Fast Movers Limited hopes to serve these clients and help ease their transition into newer homes. The company plans to target every member of the community provided the person wants to move to other towns with their belongings and house holdings. The industry is growing, and many players are getting interested in joining the industry. India is expanding, and small towns and cities are being developed more to ease the congestion from bigger cities such as Mumbai (Bars, 2016, p. 84). Some people are expected to move away from Mumbai. The company will not only target people moving out of Mumbai but also people moving within Dubai. The market growth rate is high with many people preferring to pay for the services of movers to reduce stress.
Currently, a few companies are in the market such as Fast Track Relocation and Aryan International Packers and Movers. The companies have been serving the market and have a large clientele base due to the high number of people requiring the services of movers. The companies have no competition, and Fast Movers Limited would arouse competition in the area and thus bring the best out of the other companies in Mumbai. The customers in the market are mostly the residents of Mumbai and shoppers who live in the outskirts of Mumbai. Men and women who buy a lot of things such as furniture and household items in Mumbai or who live in the outskirts of Mumbai will require the services of movers. The movers are professionals who will handle the luggage with the utmost care and transport it to the client’s house and even help get the items inside the house if the customers prefer so. Currently, the two main players in the industry serve an average of fifty customers each within a day with three-quarters being people moving within Mumbai. Entry into the market with a good cost strategy will guarantee us at least twenty customers within a day.
The moving business just like any other business has a lot of external factors that influence the decisions of the companies in the industry. The next external factor to Fast Movers Limited will be the competitors. Competitors are very vital in any given industry, and FML will have to critically look at Fast Track Relation and Aryan International Packers and Movers. Other external influences consist of Government regulations and policies, the prevailing economic conditions such as inflation and technology among much more. The policies of the government concerning taxes, minimum wage rates and the price of fuel all influence the decisions made by FML (Eddy, 2014, p. 1). The low pricing of fuel and low taxes will help the business to achieve its set objectives and make profits thus sustaining the survival of the business. Inflation and harsh economic conditions will make the business charge less thus make a little money and threaten the stability of the industry. The industry has very little barriers to entry. The main barriers are the government regulations and the huge capital required. A new business venture will have to meet the government’s requirements, meet the set standard of quality, get an office and buy equipment such as moving tracks.
The business like most business uses technology to offer the best services to customers. The options for developing the technology needed largely relies on off the shelf. The technology needed by the company include a computer for handling the customers’ requirements and processing transactions, an internet connection and good trucks that can fit the trade. The company requires specialized and strong trucks with good safety fittings to hold and protect the items being transported. The computer will help the organization process the business transactions quickly and allow the company to talk to the customers and address any customer queries. The company has to have an appropriate system that enables the client and the company to track the vehicle to know if the items are safe. The option for producing the service is contractual. The client has to enter into a contract with the company to have their stuff delivered to them at their preferred destination. The contract is enforceable by law and thus any company that breaches the contract can be held accountable in a court of law.
The organization will have a lot of sales and distribution options. The company will have sales representatives at all the malls in the city to market the services of the company (Heckman, 2014, p. 93). The sales representatives will also be at the supermarkets and train stations and bus stations. The company will also produce T-shirts containing the relevant information and give it to the sales representatives. The sales persons will not necessarily need to be in contact with people to communicate the message regarding the company’s services. When a person contacts the company, a salesperson will be sent to look at the items in question and give the client an estimate of the cost. Sales representatives will be very vital to the company (Leach et al, 2011, p. 224). The business needs extensive resources for success. Managerial skills and leadership skills are crucial in ensuring the business meets its objectives. The business will need a person to coordinate and control the activities of the business in addition to making decisions concerning the business. The company will have to liaise with petrol stations to ensure that their vehicles can fuel from anywhere and the invoice sent to the company. Equipment regarding vehicles and wrappers are necessary to enhance service delivery.
There are many laws and regulations relating to the business. The business has to acquire some personal certifications such as practicing license, quality assurance, environment impact certification and business permits (Wassinger and David, 2011, p. 211). The business has to operate by the law of the city and meet all the set requirements. The company has to be liable for any loss of a client’s items and has to do anything to resolve the matter out of court. The industry, however, has few legal, ethical issues surrounding it. The organizations need to carry their activities professionally and adhere to transparency. The client should not undergo any loss on the company’s watch. In any case, a loss occurs, the company is liable to restore the client to where he or she is. There are no ethical issues that may hinder the business in the industry. Nevertheless, technological changes have little impact on the business. The business does not rely heavily on innovation and thus may achieve a lot without the need for an innovation upgrade. The business will need to match the emerging billing options to make payment easier and improve service delivery.
The business needs a lot of technical and managerial expertise since it is in its initial growth stages. The business will need a person who can make the right decisions that will propel the business to success. The business needs a leader with interpersonal skills, good communication skills, and quality social skills (Dickinson, Mawdsley and Hanlon-Smith, 2016, p. 22). The leader should be a risk taker and someone who the organization can count on in desperate times. The manager needs to have quality decision-making skills. The business relies on the decisions made by the decision maker to coordinate their activities and achieve a common objective. The business will be owned by an entrepreneur who will play key roles in the administration of the business. The entrepreneur will have to head all decisions made by the company. With adequate systems put in place, the owner will act as a leader and a watchman to oversee, direct and control all the activities of the company. The company will be headed by a chairperson, followed by a vice chairperson, then a general manager. Below the general manager, there are line managers that report directly to the general manager. The line managers head the human resource department, the sales department, the finance department and customer relations department. Since the business is in its initiation stages, the business will have a smaller organization structure.
The organization will require the use of dedicated employees to ensure the business offers quality services to its employees. The staff on the ground do not require technical expertise as compared to the individuals hired to work in offices. The staff directly involved in moving will have to undergo a thorough training (Meisner and Radford, 2015, p. 786) on how to wrap some items, acquire competent communication skills and how to handle fragile items. To find the right workforce, the company will advertise the open positions through all the media available. The company will have permanent employees and casual employees to be used when work increases. The permanent staff will be remunerated monthly with a basic monthly salary and allowances. The casual staff will be paid a daily wage rate. To motivate the employees, the business will offer both monetary and non-monetary incentives to the employees (Ivanisevic et al, 2016, p. 179). The business will put the necessary policies and processes to help the staff achieve work-life balance. The best performing employees will be awarded salary raises promotions and even training to boost their morale. The company will need to offer refresher courses on customer care training on an ongoing basis.
The company will have a five-year growth strategy pegged on yearly set targets and goals. The business will formulate the needed strategies to help the business achieve its objectives. It is thus very important for the business to manage and maintain high-quality standards. The staff and their supervisors will attend training regularly to help guide and improve the quality of services offered to a client. The aim is to turn Fast Movers Limited into a learning organization where the staff gets to undergo thorough training and improve their productivity. With growth and development of the organization, the organization structure will change to suit the company’s needs. The company may need to create more departments, formulate a governing board of directors and employ a Chief executive officer. The company will have to employ a lot of talented individuals to help steer the company forward. The company will even hire a public relations officer to protect the image of the organization from being tainted. As a learning organization, the management will promote career development and ensure that all employees progress career wise. The firm will promote the staff regularly for career progression, and there will be a lot of delegation and succession planning to ensure professional growth for the employees (Gothard and Austin, 2013, p. 273).
The business aims at serving at least 300 clients in a month. The average cost for moving is $500, and this would generate a lot of revenues for the company. As the company is just starting, it would not be able to get a steady flow of clients. In a month the projected sales are 300. The market research shows that the two main initial players in the industry serve close to a thousand clients worth $500,000. Most movers in Mumbai charge an average of $500. The total expected revenue for a month is $ 150,000 and $1,800,000 in a year. The business offers a lot of financial opportunities with the company having an opportunity to make good profits. Moving within Mumbai would cost around $500 for every 10km covered. The long distances are charged less per kilometer averagely at $300 per 10km. The variable cost for 10km in Mumbai is $ 50 with a fixed cost of $150. The gross margin per unit is $450 less fixed costs of $150 to get net margin profit of $300.
The company requires a huge investment to start up. The initial investment for the firm will be $1,800,000 with the plant and equipment taking $1,000,000. The company will need to get a lot of machinery that moving requires. The company will operate in rental premises with a monthly rent of $5000. Legal issues and research to take $50,000 and experts $20,000. The operating expenses for the month before break-even are estimated to be $55,000. The estimated payback period for the investments is two years. The business is a risk but unlike most businesses an investor can get payback in two years of full operation. In my research in Mumbai, it is not easy to get a better return like that one. Most businesses give a payback in 4 years. To start up the business a person has to take some financial risks such as mortgaging the house or getting loans from banks and friends (Jandaghi and Hosseini, 2015, p. 38).
It is not easy to get the full financing from a one give source. Most financing institutions may fund half the project. A person may seek for partnership with another businessperson with the required. The risk with such partnership the partner may get to own half the company and not get the company fails before paying them back. The banks may agree to finance the business but they will demand more in returns and may sue an individual in case of default in payment. The gross margin per unit is estimated at 60% with a net profit of approximately 40%. The business venture is very attractive with a payback of two years and a breakeven of fewer than two years.
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