Emmanuel Adewole
$20/hr
I help entrepreneurs and businesses raise funds.
- Reply rate:
- -
- Availability:
- Full-time (40 hrs/wk)
- Age:
- 29 years old
- Location:
- Lagos, Lagos, Nigeria
- Experience:
- 5 years
3/17/2020
QUALITYSURE
BUSINESS PLAN
[Document subtitle]
Chief Executive Officer
QUALITYSURE
Table of Contents
NON-DISCLOSURE AND CONFIDENTIALITY AGREEMENT ............................................ 3
EXECUTIVE SUMMARY ..................................................................................................................... 4
The Market ........................................................................................................................................... 4
Strategy ................................................................................................................................................. 5
Service Offering ................................................................................................................................. 6
Financial Consideration ................................................................................................................. 6
Positioning Statement ..................................................................................................................... 7
Vision Statement ............................................................................................................................... 7
Mission Statement ............................................................................................................................ 8
Core Philosophies ............................................................................................................................. 8
Objectives ............................................................................................................................................. 8
COMPANY SUMMARY ...................................................................................................................... 10
What is QualitySure? ..................................................................................................................... 10
Startup Summary ............................................................................................................................ 10
Future Funding Projections ........................................................................................................ 11
Company Location .......................................................................................................................... 11
PRODUCT AND SERVICES ............................................................................................................. 13
Product Categories ......................................................................................................................... 13
Product Niches ................................................................................................................................. 13
Product Sourcing............................................................................................................................. 13
Product Source ................................................................................................................................. 14
Local and International Sourcing Of Products ................................................................... 18
Potential partners ........................................................................................................................... 18
MARKET ANALYSIS .......................................................................................................................... 20
Target Market ................................................................................................................................... 20
Target Market Segment Strategy .............................................................................................. 21
Market Growth ................................................................................................................................. 22
Market Trends .................................................................................................................................. 22
Service Business Analysis ............................................................................................................ 23
Competition and Buying Patterns ............................................................................................ 23
Pricing Pattern ................................................................................................................................. 24
Competition ....................................................................................................................................... 24
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STRATEGY AND IMPLEMENTATION ........................................................................................ 26
Marketing Strategy and Positioning ........................................................................................ 27
Promotion Strategy ........................................................................................................................ 28
Pricing Strategy................................................................................................................................ 28
Sales Strategy .................................................................................................................................... 29
Sales Forecast ................................................................................................................................... 29
Advertising and Promotion......................................................................................................... 30
Social Media ...................................................................................................................................... 30
Year-Long Marketing..................................................................................................................... 31
SWOT Analysis ................................................................................................................................. 31
HUMAN RESOURCE .......................................................................................................................... 32
Simplified HRM Target ................................................................................................................. 32
Management Team ......................................................................................................................... 33
Staffing ................................................................................................................................................ 33
Confidentiality Agreement .......................................................................................................... 33
Personnel Plan ................................................................................................................................. 33
FINANCIAL PLAN ............................................................................................................................... 37
Important Assumptions ............................................................................................................... 37
Financial Outline ............................................................................................................................. 37
Start-up Costs ................................................................................................................................... 37
Projected Expenses......................................................................................................................... 38
Sales Forecast ................................................................................................................................... 41
Projected Cash Flow ....................................................................................................................... 41
Projected Profit and Loss ............................................................................................................. 43
Break-even Analysis ....................................................................................................................... 44
2
NON-DISCLOSURE AND
CONFIDENTIALITY AGREEMENT
The undersigned at this moment agrees that all financial and other information that is,
has, and will receive concerning QualitySure is confidential and will not be disclosed to
any other individual or entity without prior written consent.
The information shall remain the property of QualitySure and shall be returned to
QualitySure promptly at its request, together with all copies made thereof.
It is acknowledged by the reader that information to be furnished in this business plan is
in all respects confidential in nature. Other than information which is in the public
domain through other means and that any disclosure or use of same by the reader may
cause severe harm or damage to QualitySure.
Recipient acknowledges that no remedy of law may be adequate to compensate
QualitySure for a violation of this agreement. The recipient at this moment agrees that in
addition to any other legal or other rights that may be available in the event of a breach
hereunder, QualitySure may seek equitable relief to enforce this agreement in any court
of competent jurisdiction.
This document is a business plan, and it does not imply an offering of securities.
3
EXECUTIVE SUMMARY
QualitySure is the E-commerce store of the 21st-century future, fulfilling the needs that
will continue to exist in the future – the need for speed and quality. QualitySure is an ecommerce company designed to become a market leader in Web-based sales of specific
product categories. Products like: Home and kitchen; Unisex Fashion wear, Smart
Watches, Fingerprint padlocks, Health and beauty products, Baby, kids, and toys,
Reusable notebook, Foot bath, and much other high demand product in the industry.
QualitySure will be an automated, 24-hour convenience and e-commerce store that is
more like an organized dispensing machine to the customers rather than the traditional
e-commerce store.
There is currently a quality gap in the recent rising e-commerce business model, which
has left many consumers dissatisfied with the platforms. It is often said that the business
of the 21st century is all about speed. However, there is a growing population that
appreciates the combination of quality with speed. There is an increase in the number of
thrifty and high-taste consumers who appreciate quality in conjunction with speed.
QualitySure will thrive on the quality and speed business model, offering customers a
high-quality product at a standard price with the speed of light.
Currently, there are several e-commerce platforms in the country with no specialty, which
has in no way helped consumers in decision making and patronage. Consumers demand
easy patronage, specialization, and easy service categorization. Many consumers struggle
with where to go when looking for certain products online, finding themselves lost in the
process. This confusion has often lead to impulse buying, a trend disliked by many
consumers seeking a solution to help them stay on budget. We will be the long-awaited
solution these consumers have been waiting for by offering a specialized and wellcategorized e-commerce platform.
The Market
E-commerce is increasingly growing in popularity in the United States as an alternative
retailing option for consumers interested in convenience, comfort, and speed. And
recently, it has been growing at a rapid rate for offering a customized purchasing menu
for customers. There is a high reduction in consumers who visit retail stores in recent
4
times due to busy schedules, distance, and other personal life priorities. This has given an
excellent growth momentum to the e-commerce industry in the United States and the
world at large.
E-commerce continues to accelerate, and the amount of money spent on purchases made
through the Internet shows no sign of decline. The study of 30 retailers in such categories
as apparel, books and music, home and garden, specialty foods, and electronics showed a
270% growth in the number of orders. Revenue in the e-commerce market amounts to
US$419,879m in 2020. This revenue is expected to show an annual growth rate (CAGR-) of 9.3%, resulting in a market volume of US$599,186m by 2024. The ecommerce market’s largest segment is Fashion, with a market volume of US$123,736m in
2020. The average revenue per user currently amounts to $1,568.87, and user penetration
is presently 80.9% in 2020 and is expected to hit 83.5% by 2024.
Revenue in Million dollars-
2018
2019
2020
2021
2022
2023
2024
Retail e-commerce sales in the United States from 2017 to 2024 (in a million U.S. dollars)
Strategy
Our main thrust of strategy is to lever our e-commerce platform and friendly usability
into higher profits through sales volume, standard prices, and a more extensive customer
database. We have a deep comprehension of the underlying needs of the consumers, and
5
so, we offer them what they need in a satisfying platform. We will strive for a large user
base rather than being focused on profit. When we generate a large user base, it will
translate into maximum profit over time as we keep our operating costs low.
Service Offering
QualitySure offers the retail market a platform for quality products at a standard price.
We will streamline and strategically design the entire shopping process for customers.
Our platforms will be designed to track customer’s buying patterns to alleviate the stress
of shopping. We will incorporate a financial system that helps customers budget and plan
shopping with our platforms. We will serve our customers with a free mobile platform
that will help them conveniently shop without being lost and underserved with lowquality products as commonly experienced with big e-commerce and retail chain.
Financial Consideration
QualitySure financial projections are conservative yet very bright. We will begin operation
with our web platform, sign up customers, gain momentum to generate appreciable sales,
and consciously build a good customer base with a robust marketing scheme to help
launch our mobile platforms. Our mobile platforms will help give us a solid financial
footing, as it helps us in generating a vast customer base at a relatively low operating cost,
which is a pointer to positive business growth.
The mobile platforms will help us market better and directly in the United States and
beyond, helping us reach our customers faster and at a cheaper rate. Our total revenue for
year one is strategically and cautiously projected to be $110,000 and a net profit of
$62,510 after-tax, growing to $140,000 and net profit of $109,980 in the second year,
and finally climbing to $250,000 and net profit of $150,400 after tax in the third year.
Our operating costs for both our platforms, supply, and delivery chain have been carefully
kept on the low to allow for more profitability and company growth. We will source for
our quality products from wholesalers and manufacturers with the cheapest cost and
maximize free shipping opportunities. This sourcing strategy will help our net profit to
appreciate over time due to the low operating and stocking cost.
6
Chart Title-
Year 1
Year 2
Expenses
Year 3
Revenue
Net Profit
Positioning Statement
QualitySure strives to position itself as the number one quality-themed e-commerce
platform, where customers get the best durable and long-lasting products, and
stakeholders get the best rewarding return on investment. Due to a carefully estimated
demand aggregation and multiple platforms, our strategy will produce quality products
at standard prices with a well-designed platform that helps customers with financial
management. There are two kinds of companies, those that work to try to charge more
and those that work to charge less; we will be the second. This places the customer
database over profits at the surface level. However, a recent study shows that companies
with this differentiation strategy of a more extensive database generate higher revenue,
which turns to a higher net profit margin in the long run. We are carefully positioned to
be in the e-commerce game for a long time, servicing the entire globe for over a period of
50 years.
Vision Statement
To be the leading “quality-guaranteed” e-commerce platform across the globe.
7
Mission Statement
Our mission is defined in our dedication to providing quality, credible, cheap, and
satisfactory products, and services to the world, helping people fulfill their purchasing
dreams. At the same time, QualitySure becomes a global brand name. We endeavor to
achieve this by:
Providing a well-optimized and user-friendly platform
Providing quality, credible, and budget-friendly products to users.
Seeking the best premium product deals for our frequent users.
Being Customer-centric, ensuring that each customer’s needs are satisfied.
Core Philosophies
Speed: We understand that the business of the 21st century is speed-based, and
we shall function accordingly.
Quality: Our Company shall be known for quality, as this will reflect in every time
we interact with clients and customers.
Customer Satisfaction: We are in business solely for our customer’s
satisfaction, which shall be well propagated with our user-friendly platform, and
service gratitude pop-ups and messages.
Attentiveness: We are a learning company dedicated to improving based on
recommendations of customers, clients, and staff, to ensure maximum growth and
service satisfaction.
Innovation: We are in constant competition with our yesterday’s standard, to
continuously give our customers the best retailing experience.
Integrity: Our operation is based on integrity and professionalism. We operate
openly with stakeholders, clients, and customers.
Objectives
In line with our core philosophies, we aim for top excellence at product and service
quality, market authority, and sound financial status. Our business objectives are focused
8
on excellence in terms of market leadership, service quality, financial health, and stability.
These business objectives are highlighted below:
We aim to be the leading quality and speed guaranteed b2c e-commerce
platform/community in the U.S.
Attract, integrate, retain, and motivate the highest quality management,
personnel, and investors.
Development of high-quality web and mobile programming and engaging content
to attract and retain a global audience through our marketing campaign.
Provision of quality products at the best budget-friendly prices coupled with
exceptional customer services.
Cash flow self-sufficiency by the end of the first 18 months.
Achievement of relative Prime Cost Ratios lower than 65%
Availability of services all over the United States by the end of the third year.
9
COMPANY SUMMARY
What is QualitySure?
QualitySure is the E-commerce store of the 21st-century future, fulfilling the needs that
will continue to exist in the future – the need for speed and quality. QualitySure is an ecommerce company designed to become a market leader in Web-based sales of specific
product categories. Products like; home and kitchen; Unisex Fashion wears, Smart
Watches, Fingerprint padlocks, Health and beauty products, Baby, kids, and toys,
Reusable notebook, Foot bath, and much other high demand product in the country.
QualitySure will be an automated, 24-hour convenience and e-commerce store that is
more like an organized dispensing machine to the customers rather than the traditional
e-commerce store.
Startup Summary
QualitySure is currently in need of early-stage funding and strategic partnerships to
execute its company objectives. We plan to raise $100,000 in two rounds of funding,
starting at $60,000, then $40,000. The first $60,000 will be for initial startup
requirements and the additional $40,000 for cash flow purposes and business expansion.
Based on conservative financial projections, the company will break even and be
profitable from year 2. Our sourcing and pricing strategy will help generate substantial
net income and nearly eliminate the downside risks.
The table below outlines the startup expenses.
Startup Requirement
Cost (USD)
Legal fees
1000
Insurance
500
Web Platform
1,500
Mobile Platforms
2,000
Rent
1,300
Accounting and Accounting systems
200
10
Marketing
10,000
Market Entry
2,000
Office equipment, furniture, and supplies
5,000
Computer systems, printers & Internet
4,000
Storage and Warehousing
2,700
Product channel
3,000
Research and development
800
Cash required
10,000
Product Cost
16,000
Total Startup Cost
60,000
Future Funding Projections
The company anticipates starting fundraising from potential investors by the beginning
of the final quarter of the second year. The first round of funding will be used for business
building and development, and the second for business expansion. The first $60,000 will
be used to develop the core of the proprietary platform, website design, and development,
mobile platforms development, test-market the service, marketing, finance operations,
and set up a corporate office. Also, recruitment of the critical sales representatives and
staff will begin, and significant strategic alliances initiated through the first round of
funding.
The second round of financing is estimated at around $40,000 and should take place in
the second to third year. The funding will be used to fine-tune the company’s operational
processes, provide adequate staffing, and start a national and international marketing
campaign. This funding will be strategically managed through a sound accounting and
monetary management scheme to expand the reach of QualitySure.
Company Location
QualitySure will start as an online shop store and then grow to have physical stores and
delivery channels in the United States and all over Europe, North and South America, and
Australia. Our significant operations and platform development will be carried out at a
11
strategic location that drives awareness, sales, and market knowledge in Virginia and New
York. We will be headquartered in this location, which is perfect for our business due to
its high population index. We will set up operational bases outside this region to aid
business growth and smooth operations as we expand our reach to other countries and
continents.
Company Web Address
www.qualitysure.com
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PRODUCT AND SERVICES
QualitySure will market and sell private labels (manufactured by a company that places
the retailer’s name on the packaging), white-label, and manufacturer’s label products to
individual consumers via the internet. These products will include convenience products,
shopping products, and specialty products.
Product Categories
Some of the different types of products we will be marketing and selling include the
following:
Convenience products: These are frequently purchased products with little effort in
buying.
Shopping Products: These are products less frequently purchased in between
purchases on a daily or weekly basis. It requires little more effort and planning.
Specialty Products: These are products with strong brand preference and loyalty.
Customers buy these products irrespective of the price.
Product Niches
Hobby Niches
Lifestyle Niches
Problem Niches
Product Sourcing
Proper product sourcing is a critical element of QualitySure’s business success. The
quality, quantity, and prices of products sourced for retailing is key in determining the
overall performance of QualitySure in the market. As a conservative and learning
company, we will take the following into account when sourcing for our products:
Product Quality: We are a company that thrives on offering quality over quantity
just as our brand name implies. We will only work with manufacturers and
wholesalers known for quality products. We will implement a standard test for all
our sourced products.
13
The quantity that can be purchased at once: The amount of quality products
that can be bought at once matters to the success of the company. We don’t want
to incur recurring expenses on product stocking if we can buy in bulk.
Reliability of Source: We will only work with manufacturers and wholesalers
with years of experience in their industry. We will partner with companies with a
credible online and physical global reputation. We will only work with a company
that guarantees product returns.
Product Prices: As much as we place a strong emphasis on quality, we are also
concerned about the price. We don’t want to buy at exorbitant prices to ensure
profit from sales and easy marketing.
Delivery Timeframe: We will ensure we work with a company that guarantees
a short delivery timeframe. This strategy is to ensure that we never run out of stock,
to keep our customers from checking out competitors.
Availability of Local Manufacturers: We will seek out local manufacturers
and DIYs that can produce and deliver in large quantities. Working with them
reduces costs and improves inventory management.
Product Source
Highlighted below are some of the sources of our products across America, Europe, and
Asia. We plan to source for products from these three markets due to variability and the
dynamic nature of the international market. This strategy is designed to give us an
inventory and cost advantage.
Smart Watches: We will procure, market, and sell smart watches to our customers at a
competitive price. It will be sourced via the following manufacturers:
America:
Montrichard
Group
{montrichardwatch.com},
BrandMart
USA
{brandsmartusa.com}, FitBit {fitbit.com}, and Garmin {Garmin.com}.
14
Europe: Suunto {suunto.com}, Mondaine Swiss Watch {mondaine-usa.com}, New
Tech Store {newtechstore.eu}, and Orsto Great Britain {orsto.com}.
Asia: Wonlex {iwonlex.com}, XinXiang Henyang {micocoawatchs.com}, and Qihu
Company {hotformed.com}.
Reusable Notebooks: We will market and sell reusable notebooks to our customers at
a competitive price. It will be sourced via the manufacturers:
America:
KinBake
Notebooks
{kbnotebooks.com},
Wipebook
Group
{wipebook.com}, and Infinite Books {en.infinitebook.com}
Europe: Esquoia {sequoia.com}, and Elfinbooks {elfinbookofficial.com}
Asia: Hefei Colorfly Stationery Co. {colorflyprinting.com}, Shenzhen Linbova
Technology Co,
Fingerprint Padlock: We will market and sell fingerprint padlock to our customers at
a competitive price. It will be sourced via the manufacturers:
America:
Tapplock
Corp
{tapplock.com},
Master
Lock
Company
LLC
{masterlock.com},
Asia: Bai Fu Co {armstronglocks.com}, Shenzhen MVTEAM Technology Co, Ltd
{mvteamcctv.com}, Ilockey {ilockey.com}.
Europe: ZKTeco {zkteco.eu}.
15
Embossed Rolling Pin: We will market and sell embossed rolling pin to our customers
at a competitive price. It will be sourced via the manufacturers:
Europe:
Valek
{www.valekrollingpins.com},
Pastry
Made,
Poland
{pastrymade.com}.
America: Wells Wood Turning and Finishing {wellswoodturning.com}, Algis Craft
{algiscraft.com}
Asia: Taptak Shop {tartakshop.com}, Conghe store {conghestore.com}.
Vegetable Cutter: We will market and sell embossed rolling pin to our customers at a
competitive price. It will be sourced via the manufacturers:
America: Banggood {banggood.com},
Europe: Sormac {sormac.eu}, Kronen GmbH {kronen.eu}, Brunner Anliker
{brunner-anliker.com}.
Asia: Sri Lakshmi Industries {srilakshmiwetgrinders.com}, Global Kitchen
Equipment Company {kitchenequipment.in}, Emura {emura.co.jp}, JAS Enterprise
{jasenterprise.com}.
Spin Mop: We will market and sell embossed rolling pin to our customers at a
competitive price. It will be sourced via the manufacturers:
Europe: Bissell {Bissell.eu}, Rene Innovations {spinmop.ie}.
16
America:
Direct
Mop
Sales
Inc
{directmopsales.com},
Cleanup
Expert
{cleanup.expert}
Asia: Classic Industries {classicenterprise.in}, TengNju {tnhouseware.com}.
Floral Spring Jacket: We will market and sell embossed rolling pin to our customers
at a competitive price. It will be sourced via the manufacturers:
America:
Alanic
Clothing
{alanic.clothing},
Oasis
jackets
California
{oasisjackets.com}, only {only.com}, Zara {zara.com}.
Europe: Gerry werber {gerryweber.com}, Cinzia Rocca {cinziarocca.com}, Rich and
Royal {richandroyal.eu}.
Asia: Bossini Urban Athleisure {bossini.com}, Alibaba {alibaba.com}.
Women Leather Jacket: We will market and sell embossed rolling pin to our
customers at a competitive price. It will be sourced via the manufacturers:
America: The Leather Makers {theleathermakers.com}, Shoqz fashionz {shoqzfashionz.com}, Leather Jackets USA {leatherjacketsusa.com}.
Europe: Wilsons Leather {wilsonsleather.com}, D’Arienzo {darienzo.us.com}.
Asia: Asian Leather {asianleather.com}, Synplus {synplus.com}.
Foot Bath: We will market and sell embossed rolling pin to our customers at a
competitive price. It will be sourced via the manufacturers:
America: AMD {amajordiffernce.com}, Agri Expo {agriexpo.online}, Medical Expo
{medicalexpo.online}, ION Spa {theionspa.com}.
Europe: THYMOX technology {thymox.com}, Dorn Bracht {dornbracht.com}.
17
Asia: Aqua Chi Store {aquachifootbath.com}, Hukoer.
Travel makeup Brushes: We will market and sell embossed rolling pin to our
customers at a competitive price. It will be sourced via the manufacturers:
America:
Wholesale
Makeup,
FL
{wholesalemakeup.com},
Vonira
{www.luxurymakeupbrushes.com}, Vonira beauty Co. {vonirabeauty.com}, AOVEA
{aoveacosmetics.com}.
Europe: Jafon Makeup Factory {jafonbeauty.com}, My Color Cosmetics
{eifmanballet.ru}.
Asia:
Cosmido
{cosmidobeauty.com},
May
May
Cosmetics
Limited
{www.maymaycosmetics.en.alibaba.com},
Kingyin
Makeup
Brushes
{tmakeupbrushes.com}.
Local and International Sourcing Of Products
To minimize cost, “free-shipping” from more prominent online companies will be our
primary source of shipping. Items will be bought in bulks and shipped together; this will
also ensure custom duties are brought to a minimum. The average shipping period is in
30 days and might extend to a maximum of 60 days. As a new startup, since we cannot
accurately estimate the maximum number of days, orders for new products or restocking
must be done no later than two months before the projected sale of all products in stock.
Depending on the prevalent shipping arrangements made, QualitySure driver(s) might
have to regularly pick up products upon arrival at the local courier office as they might as
well be delivered directly to the company’s warehouse.
Potential partners
Listed below are firms that we are considering to partner with in terms of bulk importing:
LA showroom- lashowroom.com
Over Stock- Overstock.com
Liquidation- Liquidation.com
Pink Town- Pinktownusa.com
Avon Products- avon.com
Orange shine- Orangeshine.com
18
Ruby Imports- Rubyimports.net
All-Clad- all-clad.com
Lodge- lodgemfg.com
JS World- Jsworldtrading.com
Cartier- cartier.com
Bloom Wholesale- Bloomwholesale.com
Dollar Days- Dollardays.com
Kole Imports- Koleimports.com
19
MARKET ANALYSIS
E-commerce is increasingly growing in popularity in the United States as an alternative
retailing option for consumers interested in convenience, comfort and speed. And
recently, it has been growing at a rapid rate for offering a customized purchasing menu
for customers. There is a high reduction in consumers who visit retail stores in recent
times due to busy schedules, distance, and other personal life priorities. This has given an
excellent growth momentum to the e-commerce industry in the United States.
E-commerce continues to accelerate, and the amount of money spent on purchases made
through the Internet shows no sign of decline. The study of 30 retailers in such categories
as apparel, books and music, home and garden, specialty foods and electronics showed a
270% growth in the number of orders. Revenue in the e-commerce market amounts to
US$419,879m in 2020. This revenue is expected to show an annual growth rate (CAGR-) of 9.3%, resulting in a market volume of US$599,186m by 2024. The ecommerce market’s largest segment is Fashion, with a market volume of US$123,736m in
2020. The average revenue per user currently amounts to $1,568.87, and the user
penetration is presently 80.9% in 2020 and is expected to hit 83.5% by 2024.
Target Market
We target the following market at QualitySure:
Geographically
United States of America
North and South America
Europe
Australia
We will begin operation in the United States market, then expand after business growth
and sustainability into North America, as well as other continents.
Demographically
Our products will be used by the following set of people:
20
Babies
Teenagers
Adults (Men and Women)
Couples and Families
Students and High-end singles
Businesses and Organizations
Target market
Babies
Teenagers
Adults
Students & Singles
Business and Organizations
Target Market Segment Strategy
We strategize to get to our target market by implementing our marketing mix of
“planning globally and moving to sell locally,” a marketing mix that can help us focus on
every segment of our target market and grow thereby.
Babies: Our baby product segment has the potential of helping us keep our revenue
on a positive one. We will market our platform as the best place for buying quality
baby products. This marketing will be targeted at nursing mothers and pregnant
women. We will also leverage on hospitals and ante-natal caregivers database of
providing us quality market leads.
Teenagers: Our teenage segment will also be leveraged to boost our revenue.
Teenagers are one of the highest buyers of products online, buying smartwatches,
accessories, books, and many other high demand products. We will offer promotions
that connect with this age group to drive home their buying potential. This will be
better achieved with a sound social media marketing strategy.
21
Adults (Men and Women): This segment requires us to build an effective word-ofmouth marketing strategy. We will also make several joint marketing efforts with
other businesses, such as the production and distribution of promotional and
referral books.
Business and Organizations: The business market has the potential to provide
large-volume sales to the company. Many businesses need products and supplies
that we will be offering for their daily office operations. We will build a working
network with several firms to leverage their high purchasing power and frequent
purchase. We plan to do specific target marketing through flyers, business discounts,
billboards, and creating a record of fast delivery.
Students and high-end singles: We will leverage this market segment to
generate our highest sales. We will implement all marketing strategies to attract this
segment. We will implement digital marketing strategies, as well as build
relationships with institutions and bodies; this target market relates to daily.
Our platform will be designed to collect suggestions and feedback from customers,
thereby structuring our business operations to sit and satisfy each target market.
We will implement a “QualitySure Reward Program” (QRP), which allows registered
customers to buy at a specific discount after every ten purchases on our platform.
We will create a sense of personal care and friendliness for our registered customers
by giving them free packages or discounts on certain products based on their buying
patterns on their registered birth dates.
Market Growth
In 2019, retail e-commerce sales worldwide amounted to 3.53 trillion US dollars, and eretail revenues are projected to grow to 6.54 trillion US dollars in 2022. The top 3 online
stores' revenue amounted to almost 100 billion US dollars in 2017. Online shopping is
one of the most popular online activities worldwide. Still, the usage varies by region - in
2016, an estimated 19 percent of all retail sales in China occurred via the internet, but in
Japan, the share was only 6.7 percent. Desktop PCs are still the most popular device for
placing online shopping orders but mobile devices, especially smartphones, are catching
up.
Market Trends
Keeping up with the latest trends in e-commerce, including both backend efficiencies and
frontend conversion-optimizing experiences, is paramount to growing in the retail
landscape of 2020. Highlighted below are some of the significant trends for the year and
beyond:
AR enhances the reality of online shopping.
There will be a growing volume of voice search.
22
AI helps shops learn about shoppers.
On-site personalization uses those insights to create individualized experiences.
Big data plays a big part in creating personalized experiences.
Chabot improves the shopping experience.
Mobile shopping is still on the move.
More payment options.
Headless and API-driven e-commerce allow continued innovation.
Customers respond to video.
Subscriptions keep customers coming back.
Sustainability is becoming more critical.
Businesses should optimize digital strategy for conversion.
B2B is growing and changing
Service Business Analysis
The e-commerce industry in the country is highly fragmented and competitive. Many
companies in this industry have low capital costs and low margins, which creates a high
intensity of competition. There also exists a very high degree of competition among the
companies due to the perceived overcapacity and competition for customer’s attention in
this field. The larger companies often have cost advantages due to economies of scale that
allow them to out-compete smaller rivals.
The barriers to entry and exit are shallow in the industry. A large number of competitors
in these fields means that the pricing for the products and services are very competitive.
The only way to have an advantage in this industry is either a low-cost leadership principal
applied aggressively or to differentiate the entire customer experience through better and
more unique product options and to build up customer relations to a point where the
switching costs are raised.
Competition and Buying Patterns
Time is of the essence - Order and delivery timeline is critical. We will make use
of fast delivery service companies to keep our customers and promote our service
rating.
23
Easy usability is critical to sales success. Customers don’t want to hire a tutor for
them to be able to use the platform.
Price is susceptible, and we will strive as much as possible to keep relatively
budget-friendly prices in our platforms. In essence, many target customers mistrust
ridiculously low prices in an online store.
Quality of service matters. If the price isn't too high, and the service is excellent,
we'll have growth through repeat business.
Focus is an advantage; focusing on major moving target products which will help
us draw customers from the competition. We will carry out market research from
time to time to find out products that sell frequently.
Pricing Pattern
The pricing pattern is a pivotal decision for the retailing business in America and all over
the world. Customers highly consider price as a significant buying pattern. For the
retailing industry, low prices are highly acknowledged for buying universal products;
however, average rates are often considered for quality products. However, ridiculously
low prices are an off point in e-commerce for many in the country. When the prices are
too low in the E-commerce industry, mistrust tends to rise.
Competition
There are significant competitors in the E-commerce and online retailing Industry, with
some notable global players contributing to the market. The American e-commerce
industry is filled with some significant players who have gathered business over time;
however, it has many glitches in their mode of operation. Some of these brands are:
Amazon
Positive: Has diverse product catalogs and services, fabulous on-boarding, clean, and
well-formatted platform.
Negative: Little guarantee of quality, and too many catalogs causing platform confusion
and time-consumption.
Web Address: www.amazon.com
24
eBay
Positive: Has diverse product catalogs and services. Well known and well-optimized.
Negative: Too many confusing and time-wasting features. No quality guarantee.
Web Address: www.ebay.com
Walmart
Positives: Has excellent products at low prices with many other trending features for
customers.
Negative: No specialty and little focus on quality.
Web Address: www.walmart.com
We’ve done a great deal of study on our competitors and understand their operation
advantages and glitches. We will leverage on this glitch and provide better services to
attract customers. Apart from the competitive and growing industry, the local competitors
within a ten-mile radius seem to be less concentrated.
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STRATEGY AND IMPLEMENTATION
QualitySure's primary strategy involves leveraging our e-commerce platform and friendly
usability into higher profits through sales volume, standard prices, and more extensive
customer database. Our online store will provide the best shopping deals for long-lasting
quality products coupled with diverse sales program we will implement. We have a deep
comprehension of the underlying needs of the consumers, and so, we offer them what
they want in a well-optimized platform.
Our strategy will also be to build as robust of a website and mobile applications as
possible. The site will be robust by having an extensive product offering, ease of
navigation, ease of purchasing, and comfortable delivery tracking. Our platforms will be
changed frequently to encourage customers to visit often, and products will be
emphasized to try to pull the customer in. Specials will be offered and rotated periodically
to promote repeat business. We will use Web Trends and diverse Web traffic monitoring
software to gain insight regarding our online customers. This information will be
indispensable for the future modification of products and services to appeal to the
customer's needs.
Our platforms will provide job opportunities both for the entry-level applicant as well as
for the part-time worker searching for flexibility in job hours. We will pay our employees
a competitive salary and believe we can do so by meticulously keeping our operational
costs low. We will be proactive with our employees by scheduling regular performance
reviews and provide bonuses and other incentives to motivate our staff for the
development of the company.
We will also stay updated with the latest industry marketing trends. In addition to our
online platforms, we will also have a Facebook, Instagram, Twitter pages, and utilize other
social media to our business advantage. We will offer a repeat-purchase, loyalty, and
birthday club, which recent industry reports indicate increases earnings as much as 15%.
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Marketing Strategy and Positioning
QualitySure is focused on the emerging and redefined internet marketplace. Our primary
target market covers all age-range, which represents approximately 95% of the income of
the United States. These customers are looking for quality products that they don't
necessarily have to break the bank to get. We will provide these people with these cuttingedge and quality products, coupled with convenience and fast service.
Our long-range goal is not only to dominate the quality product market but to create an
iconic brand. Initially, we will:
Engage in Web-based marketing to generate awareness of the company and product
information. Because of the latest trend in Internet-based advertising, the prices for
advertising have consequently significantly dropped, making the expenditure more
cost-effective.
Engage in outdoor advertising providing general awareness to the public at large and
direct individuals to the company's platforms.
Competitive Edge
QualitySure competitive edge will be their easy-to-use web and mobile platforms, quality
products, and superior customer service. The web and mobile platforms will be one of our
primary competitive advantages because research shows that an easy-to-use platform
significantly increases sales and repeat business. The design of our platforms will
encourage repeated purchases because it is so easy and swift to make the purchase. It is
observed that too often, sales are lost due to complex web and mobile platforms that are
far from intuitive.
We will also provide quality products at a relatively low price to our customers. We will
emphasize our philosophy of selling quality products that last long and save repeated
costs. We will create an outline of the quality brief for every product we sell, offering a
guarantee to our customers on every product.
Another QualitySure’s competitive advantage is superior customer service. The mantra of
our customer service department will be to serve the customer in any way required. Any
customer with complaints or requests will be amazed at the amount of dedicated personal
27
attention they receive and how quickly their complaints and requests are handled and
significantly improved.
Promotion Strategy
Electronic and printed flyers and mailers will be used to promote our launch and sales
promotion to bring customers to our platform. We will run a two-week pre-launch
campaign to educate potential customers and generate brand awareness. We will make
use of significant news platforms and blogs to advertise and promote our services; social
media will be used to create anticipation and leads. This platform will be used to get the
technologically inclined ones who are our primary target market. We will incorporate a
well-optimized blog into our platform to educate and promote sales. This blog will be used
to boost SEO ranking, awareness, benefits of the company, and internet visibility.
Fortunately, once a potential customer comes on our platform, the chances of buying are
very high once the platform is user-friendly with great products. So, our promotional plan
is majorly focused on drawing people to our platforms and then seeking to provide them
with quality products and superior customer experience.
Pricing Strategy
At QualitySure, we highly value cost accounting since the profitability of each product
varies significantly. We will build an excellent positive relationship with our partners,
suppliers, and will continuously update our product catalog to take advantage of different
seasons and holidays. We will closely monitor our operating, shipping, and labor cost and
slim down excesses to charge less, which will help us generate an extensive customer
database.
We will control employee cost at the beginning by providing work-term flexibility,
leveraging on interns, hiring committed, and enthusiastic personnel who are willing to
grow with the company. Some of our operations, like accounting and platform
development, will be outsourced, which will help us cut down in-house operating costs.
This cut-down will help us in charging competitively.
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QualitySure pricing strategy will focus on making available high quality, personally
tailored customer services. Our services will be tailored and designed to fit each registered
customers' needs and buying patterns. This customized service will allow us to charge
averagely for our services and products in comparison to other platforms, as long as the
customers agree that the products being sold are better than that of competitors. We will
thereby generate a more extensive customer base that supports expansion goals, revenue,
and gross profit generation.
Sales Strategy
Customer service is of the utmost importance for an online business. Customer surveys
estimate that only 1 in 20 customers that have a problem on a platform will report or give
feedback about it. Our goal will be to provide an excellent user-friendly platform with
superior customer service. Training programs will include teaching materials to train our
employees about service timelines, customer perception, and how to handle customer
complaints.
Our most essential sales strategy will be to develop repeat business. We will make sure
everyone who comes in contact with our platform has to want to return. We will offer
some very established sales strategies such as discount cards, flash sales, flat-rate sales,
exclusive holiday sales, “after-ten purchase” discounts, and a dynamic product menu. We
will keep an ever-updated and accurate track of what types of products sell well and create
a program of customer feedbacks through motivated surveys. We will be able to tailor our
services and product offering to fit customers’ needs better and therefore encourage
repeat business to boost sales and revenue.
Sales Forecast
The following table and charts illustrate the sales forecast. After diligent planning and
research, we're sure this is a manageable forecast. We assume Sales increase at a rate of
not less than 35% in the first to the second year and 56% in the third year.
Sales Forecast
Year 1
Year 2
Year 3
29
Sales
(USD)
(USD)
(USD)
E-commerce products
45,000
128,000
215,000
Deliveries
3,500
7,000
25,000
Special Requests
1,500
5000
10000
Total Sales
50,000
140,000
250,000
Advertising and Promotion
Just as any new business, QualitySure also needs robust advertising to get customers to
our platform. Before we begin spending big on public media advertising, we plan to focus
majorly on our target audience first. We will test some advertising media in the first
months of operation, carrying out an evaluation monthly to determine which medium
suits us best. After 12 months, we will focus our advertising strength on where our primary
target market frequents, to cut down expenses and increase advert productivity.
Social Media
Social media offers to our company the option of building a robust online presence for
our business, which in turn would establish brand loyalty and attract customers. Social
media marketing campaign offers our business the opportunity to sell products and
services. We plan to utilize Facebook, Twitter, and Instagram. These platforms will piece
together online conversations and images and help build an online identity for our
business, which will, in turn, increase our search engine optimization ranking. This will
also be used to measure business growth and marketing success.
Facebook plan
Facebook allows for real-time updates and interactions while offering space for longer
posts and add-ons, such as event pages, groups, and applications. Facebook is an excellent
marketing platform where the company’s brand can shine through. We will set up and
brand our company’s profile, adding our website homepage link. Our call to action will
lead directly to our buying page to maximize leads. We will post content often, and share
relevant articles through our website blog section that can generate desires and leads. We
will run sponsored posts from time to time to generate followers, who can then become
customers
Twitter plan
Functioning like a micro-blog, Twitter is a huge news source with information being
shared as it becomes available. Twitter allows for interaction, video and photo sharing,
but limits posts to 140 characters, making it simple and most efficient when regularly
updated. We will brand our profile with quality company’s brand images, and update our
profile and bio from time to time with the consciousness of SEO ranking. We will establish
automated responses to our new followers that suggests our different product catalogs.
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We will run a promoted post from time to time to boost our followership, visibility, and
lead generation.
Instagram Plan
Functioning like a giant photo-blog, Instagram is an excellent platform for marketing
products with beautiful photos. We will create a beautiful and dynamic profile on the
platform with full consideration for SEO. We will post pictures of our available products
and educate followers and subscribers on why they should get them, how best to use them,
and why they should buy with us. This education will be kept short and detailed.
Year-Long Marketing
The e-commerce and retailing industry marketing strategy must be dynamic, changing
with the seasons from the busy holidays to the slow seasons in between. We will develop
yearlong marketing and sales plans to keep sales up to all year round.
SWOT Analysis
Strengths
User-friendly interface
Efficient and robust product sourcing
Excellent working relationship with delivery companies
Multiple revenues and customer base platform.
Weaknesses
Recruiting and retaining top-notch staffs in the early years of operation
Tight margins resulting in some little errors
Opportunities
Little barriers to entry allow for immediate business opportunities
Little Competition in the country
The ever-increasing demand for quality products at a top speed.
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HUMAN RESOURCE
People are the single most crucial element in our company’s operation. We value our
directors, managers, and staff as the most critical element in running a quality
operation; the manager and teams need to be all on the same page of processes. We have
found that friendly, strong managers make friendly, healthy crew people. From that
crew comes the next generation of managers and quality operation. The customers can
see it in the quality of products, how fast the service is, and how user-friendly our
platform is.
One of the significant factors in the e-commerce business is the mood of the customers.
If we get a potential customer to visit our platform for the first time and the customer
gets comfortable while getting the desired quality at the right time for the correct value,
there is a guarantee for repeat service and word-of-mouth marketing. That is one of the
most effective advertisements for an e-commerce business.
At QualitySure, some of our new operations and maintenance will be outsourced, except
major roles and activities which will be carried out by the management and recruited
employees. Our human resource process will be streamlined to make good use of
outsourcing companies and freelancers to minimize operation costs while we focus on
business growth. Our employment list will be kept low to allow for profitability.
Our Human resource practice will focus on the turnover rate of managerial employees,
turnover rate of non-managerial employees, labor productivity, and Return on assets.
Our recruitment process will ensure we are equipped with the best staff available who
are eager to learn and develop because we are a learning company that works to grow
more into what the customer wants from time to time. We will continuously project into
the future, to beat the market needs, and so we will be staffed with enthusiastic team
members. Our staff will be trained from time to time to ensure quality delivery of service
and business continuity.
Simplified HRM Target
Required number of employees
The budget on each employee role
What type of Employee Needed?
Specific job description and role of required Employee
When the Employee is needed
Where and how fast to find the Ideal Employee
How best to manage each Employee for business continuity.
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Management Team
Our Management Team will be led by the founder and CEO of the company. The
management team will be carefully selected for the success and growth of the company.
The team shall comprise ardent managers who have honed their managerial and sales
skills through various administrative studies and hands-on business experience. Our
CEO has gathered experience in the sales and e-commerce industry for more than 18
months, with an acute knowledge in business growth and marketing. The CEO has been
on managerial and business leadership for about two years, with a critical
understanding of marketing and sales development. We have developed a management
system skilled in staff and customer management, alongside building an excellent
reputation with QualitySure diverse business partners and networks. Our management
team will devote their time to QualitySure growth and development, driving company
goals, and mission with an all-time commitment.
Staffing
We will be starting small to conserve and minimize operating costs, making sure we hire
the quality staff needed for the job. We assume a total of five employees at startup with
the management team. We will recruit for the following department; technical, sales and
marketing, finance and operations, and sourcing and deliveries.
We have adopted an effective interview process designed to staff the company with
highly qualified people for each position. Each applicant will be rated and evaluated
according to a pre-defined set of standards developed for each job. Background checks
will be utilized shortly for designated positions as recruiting effort will be based on
competence.
Confidentiality Agreement
QualitySure will enforce that all our employees, contract, temporal or permanent sign a
confidentiality agreement. The confidentiality agreement with our employees and
partners is to protect our platform, operating systems, policies, and procedures. Having
a confidentiality agreement in place is essential to protect the company’s trade secrets,
and show our employees that we take our business seriously.
Personnel Plan
QualitySure will start with a staff of five. We will hire employees to fill the following
roles: Technical, sales and marketing, finance and operations, and sourcing and
deliveries. The personnel plan below is calculated on a yearly basis because a sizable
amount of our operations in the early years of the business will be outsourced and
carefully managed by the management. This is done so as to save cost and boost early
break-even.
33
Yearly Personnel Plan
Roles
Year 1 (USD)
Year 2 (USD)
Year 3 (USD)
Management
5,000
7,000
10,000
Technical
3,000
5,000
6,500
Sales and Marketing
4,000
5,000
7,000
Finance
1000
1,800
2,000
Operations
3,500
4,200
5,500
Sourcing and Delivery
5,000
7,000
10,000
Photographer
1,000
2,000
2,000
Other
2,500
5,000
7,000
TOTAL
25,000
37,000
50,000
Year 1 Monthly Personnel Plan
Roles/
Month
Manag
ement
Techni
cal
Month 1
300
Month 2
Operatio
ns
Sourcing
&
Delivery
Photo
graph
er
Other
400
Sales
Financ
&
e
Market
ing
200
70
Total
250
300
70
200
1,790
400
400
200
70
250
300
70
200
1890
Month 3
400
200
300
70
300
400
70
200
1940
Month 4
400
200
300
70
300
400
70
200
1940
Month 5
400
200
300
80
300
400
80
200
1960
Month 6
400
200
300
80
300
400
80
200
1960
Month 7
450
200
400
90
300
450
90
200
2180
Month 8
450
200
400
90
300
450
90
200
2,180
Month 9
450
250
400
90
300
450
90
200
2,230
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Month 10
450
250
400
90
300
450
90
200
2,230
Month 11
450
250
400
100
300
500
100
250
2,350
Month 12
450
250
400
100
300
500
100
250
2,350
Total
5,000
3,000
4,000
1,000
3,500
5,000
1,000
2,500
25,000
Operatio
ns
Sourcing
&
Delivery
Photo
graph
er
Other
Total
300
500
100
400
2,600
Year 2 Monthly Personnel Plan
Roles/
Month
Manag
ement
Techni
cal
Month 1
500
300
Sales
Financ
&
e
Market
ing
400
100
Month 2
500
300
400
100
300
500
100
400
2,600
Month 3
600
400
400
100
350
600
100
400
2,950
Month 4
600
400
400
100
350
600
100
400
2,950
Month 5
600
400
400
150
350
600
150
400
3,050
Month 6
600
400
400
150
350
600
150
400
3,050
Month 7
600
400
400
150
350
600
150
400
3,050
Month 8
600
400
400
150
350
600
150
400
3,050
Month 9
600
450
450
200
350
600
200
450
3,300
Month 10
600
450
450
200
350
600
200
450
3,300
Month 11
600
550
450
200
400
600
300
450
3,550
Month 12
600
550
450
200
400
600
300
450
3,550
Total
7,000
5,000
5,000
1,800
4,200
7,000
2,000
5,000
37,000
35
Year 3 Monthly Personnel Plan
Roles/M Manage Techni
ment
cal
onth
Month 1
700
500
Sales
&
Market
ing
500
Financ
e
Operatio
ns
Sourcing
&
Delivery
Photo
graph
er
Other
Total
100
400
700
150
500
3,550
Month 2
700
500
500
100
400
700
150
500
3,550
Month 3
800
500
500
100
400
800
150
500
3,750
Month 4
800
500
500
100
400
800
150
500
3,750
Month 5
800
500
600
150
450
800
150
600
4,050
Month 6
800
500
600
150
450
800
150
600
4,050
Month 7
900
550
600
150
500
900
150
600
4,350
Month 8
900
550
600
150
500
900
150
600
4,350
Month 9
900
550
600
200
500
900
200
600
4,450
Month 10
900
550
600
200
500
900
200
600
4,450
Month 11
900
650
700
300
500
900
200
700
4,850
Month 12
900
650
700
300
500
900
200
700
4,850
Total
10,000
6,500
7,000
2,000
5,500
10,000
2,000
7,000
50,000
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FINANCIAL PLAN
Important Assumptions
Having examined our products and services, the market, and our strategies, we have come
up with a workable financial plan and forecast for the company. The financial plan and
projections depend on critical assumptions which are highlighted below:
The financial plan depends on vital assumptions. The key underlying assumptions are:
Growth will be moderate, cash flow steady.
Costs will increase at a rate of 3% to 5% per year.
A Normal growth economy, without any significant recession.
No unforeseen changes in the popularity of our business model.
Access to funding to fulfill the company’s campaigns and yearly expansion plans.
Stable tax rate.
Financial Outline
The following sections outline our financial summary:
Start-up Cost
Projected Expenses
Sales Forecast
Cash Flow
Profit and Loss
Break-even analysis
Start-up Costs
QualitySure needs a sum of $60,000 to launch its platform and reach the target market
fully. Highlighted in the table below is a summarized breakdown of the company’s startup
cost.
Startup Requirement
Cost (USD)
Legal fees
1000
Insurance
500
Web Platform
1,500
Mobile Platforms
2,000
Rent
1,300
Accounting and Accounting systems
200
37
Marketing
10,000
Market Entry
2,000
Office equipment, furniture, and supplies
5,000
Computer systems, printers & Internet
4,000
Storage and Warehousing
2,700
Product channel
3,000
Research and development
800
Cash required
10,000
Product Cost
16,000
Total Startup Cost
60,000
Projected Expenses
We assume a slightly higher gross margin than industry standards for the American Ecommerce industry because we have multi-choice products and services to serve our
customers, which generates more than average income.
Because of our new entrance, we've adjusted the profitability into the normal range by
adding a relatively large amount of additional un-itemized expenses. This addition is to
give us a buffer for the other unforeseen expenses that we expect will come up. And just
if they don't, we'll be more profitable than expected.
Our expenses have been kept relatively low to allow for profitability. Most of the expenses
after in the early months of business operations are maintenance, marketing, business
operations, and wages. Highlighted in the table below is a summary of our yearly
expenses:
Year 1
Year 2
Year 3
Expenses
(USD)
(USD)
(USD)
Wages
25,000
37,000
50,000
Credit Card transaction fee
500
1,500
2,500
Marketing
5,000
10,000
20,000
1,500
1,500
80,000
100,000
130,000
174,000
Platform
development
maintenance
Product Sourcing
and 1,500
8,000
Total General Expenses 40,000
38
Year 1 Monthly Expenses
Expenses
Wages
Credit Card
Marketing
Platform
Product
Month 1
1790
30
415
100
0
Month 2
1890
35
415
100
0
Month 3
1940
35
415
100
0
Month 4
1940
40
415
100
0
Month 5
1960
40
415
100
1000
Month 6
1960
40
415
100
1000
Month 7
2180
45
415
100
1000
Month 8
2180
45
415
100
1000
Month 9
2230
45
420
100
1000
Month 10
2230
45
420
200
1000
Month 11
2350
50
420
200
1000
Month 12
2350
50
420
200
1000
Total
25,000
500
5,000
1,500
8,000
Year 2 Monthly Expenses
Expenses
Wages
Credit Card
Marketing
Platform
Product
Month 1
2600
100
800
100
6500
Month 2
2600
100
800
100
6500
Month 3
2950
100
800
100
6500
Month 4
2950
100
800
100
6500
Month 5
3050
100
800
100
6500
39
Month 6
3050
100
800
100
6500
Month 7
3050
100
800
100
6500
Month 8
3050
100
800
100
6500
Month 9
3300
100
800
100
7000
Month 10
3300
200
800
200
7000
Month 11
3550
200
1000
200
7000
Month 12
3550
200
1000
200
7000
Total
37,000
1500
10000
1500
80000
Year 3 Monthly Expenses
Expenses
Wages
Credit Card
Marketing
Platform
Product
Month 1
3,550
200
1500
200
8000
Month 2
3,550
200
1500
200
8000
Month 3
3,750
200
1500
200
8000
Month 4
3,750
200
1500
100
8000
Month 5
4,050
200
1500
100
8000
Month 6
4,050
200
1500
100
8000
Month 7
4,350
200
1500
100
8000
Month 8
4,350
200
1500
100
8000
Month 9
4,450
200
1500
100
8000
Month 10
4,450
200
1500
100
8000
Month 11
4,850
250
2500
100
10000
Month 12
4,850
250
2500
100
10000
40
Total
50,000
2500
20000
1500
100000
Sales Forecast
We assume Sales increase at a rate of not less than 35% in the first to the second year and
56% in the third year.
Sales Forecast
Year 1
Year 2
Year 3
Sales
(USD)
(USD)
(USD)
E-commerce products
45,000
128,000
215,000
Deliveries
3,500
7,000
25,000
Special Requests
1,500
5000
10000
Total Sales
50,000
140,000
250,000
Sales Forecast-
Year 1
Year 2
Year 3
Total sales
Projected Cash Flow
The statement of cash flow shows the incoming and outgoing cash of QualitySure.
41
Projected Cash Flow
Cash Received
Cash from Sales
Cash from Receivables
Subtotal Cash from Operations
First Round of Funding
Second round funding
Subtotal Cash Received
New long-term liabilities
Sales of other current asset
Sales of long-term asset
External Investment Received
Expenditures
Operating Expenses
Startup and expansion Costs
Loan payment (+Interest)
Purchase Long-term asset
Long-term liabilities principal
repayment
Additional Cash Spent
Sales Tax
Subtotal Expenditures
Net Cash Flow
Cash Balance
Year 1
(USD)
50,000
0
50,000
60,-,-
Year 2
(USD)
140,-,000
0
40,000
180,-
Year 3
(USD)
250,-,-,-
40,000
60,000
0
0
0
130,-
174,-
0
0
100,000
10,000
0
0
130,000
50,000
0
0
174,000
76,000
10,000
60,000
136,000
Projected Cash flow-
Year 1
Year 2
Net Cash flow
Year 3
Cash received
Cash Balance
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Projected Profit and Loss
The profit and loss demonstrate modest increases in revenues over the three expected
years with adjustments for inflation.
Pro Profit and Loss
Year 1
Year 2
Year 3
Income
Sales
Subtotal Cash received
Total Revenue
Product Cost
Gross Margin
Gross Margin%
Expenses
Operating Expenses
Net profit before tax
Tax incurred (estimated at 6%)
Net Profit after tax
(USD)
50,000
110,000
110,-,000
78%
(USD)
140,000
180,000
180,-,000
56%
(USD)
250,000
250,000
250,-,000
60%
40,000
70,-,800
130,000
50,-,000
174,000
76,-,440
Revenue
-
Year 1
Year 2
Year 3
Revenue
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Net Profit
-
Year 1
Year 2
Year 3
Net Profit
Break-even Analysis
The following table and chart show our break-even analysis. Our break-even point is
quite low, we are expecting to have lower than average fixed costs during the planning of
this business, due to relatively low operating cost, low fixed asset acquisition, low
percentage of payroll costs to overall fixed costs, lower rent, low infrastructure setup.
BREAK-EVEN ANALYSIS (Year 1)
Fixed Cost
76000
Contribution Margin
26,000
Contribution margin ratio
52%
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