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Tata Steel Consulting provides business planning services to a range of industrial sectors, including:
Iron and steel - all long and flat products Tube and pipe Foundry and forge products Rail products Iron ore mining Engineering steels Wire products Metal fabrication industries Steel distribution and service centres Ferro alloys
The business planning group operates independently or in tandem with other groups within Tata Steel Consulting and sometimes in collaboration with external organisations such as management consultants and investment banks. As a result it can always call upon an exceptional range of skills and experience to meet the diverse requirements of its clients.
Clients
The business planning group has assisted a broad range of clients, in public and private sectors, situated in a large number of countries.
Expertise
Assignments undertaken are diverse in terms of the problems and issues addressed. Tata Steel Consulting has provided strategic assistance to numerous manufacturing companies.
Methodologies
A wide range of expertise and methodologies is employed by the business planning consultancy group. The first stage of assignments often requires detailed analysis of market prospects for the client company. This can involve extensive interview programmes in the metals consuming sectors as well as economic and demand forecast
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the machine services industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
2.0 Company and Financing Summary 2.1 Registered Name and Corporate Structure
Sheet Metal Fabrication, Inc. The Company is registered as a corporation in the State of New York.
The primary source of revenue for the business will be the production, manufacturing, and fabrication of sheet metal and sheet metal components on behalf of manufacturers, contractors, and other businesses that have sheet metal component and sheet metal needs. The business will earn moderately high gross margins on both sales of sheet metal and components produced to specification on behalf of clients. The Company will have three machinists on staff to produce components at the onset of operations. Mr. Doe is currently sourcing an industrial location from which Sheet Metal Fabrication, Inc. can operate. 3.2 Ancillary Services From time to time, the Company may also become involve with the design and development of specialized components requested by the Companys clients. This ancillary revenue stream would be derived by outsourcing the work to a qualified engineer and then having the Sheet Metal Fabrication company produce the work requested by the client. The Company would be able to mark-up the outsourced engineering services. Management anticipates that 10% of the Companys aggregate revenues will come from this operating segment.
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.3 Pricing
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.3 Management Biographies In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section. 7.0 Financial Plan 7.1 Underlying Assumptions
Sheet Metal Fabrication, Inc. will have an annual revenue growth rate of 16% per year.
The Owner will acquire $300,000 of debt funds to develop the business. The loan will have a 10 year term with a 9% interest rate.
Location of the business Set-up The company is to be located in a very good site and it is where many customers can easily locate. The business will be situated in Cairo in Egypt. The site is located along a busy expressway where customers can be easily attracted. Also, people that invest in house building live in this part of the country and the business will make them to demand for metal gates and other related works which are constructed with metals. Due to high movement of pedestrians along the roadside, they will buy more of the goods.
Brief description of the business It is a market-moving business. The business is based on the construction of many designs of objects using metal made of steel. It will attract buyers from different parts of the country. Steel is the most widely used metal in the world and it shows how the society needs products made from iron or steel. The devices needed for this business includes high capacity electric generators, electric arc and gas welding machines, welding thongs, drilling machines, cutting and filing machines, electrodes, face-shield and others. The generators will be used for constant power supply whenever the Power Holding Company (the organization that takes charge of constant power supply) fails to supply power. The gas and the arc welding machines will be used in the welding the metals together. The welding thongs are to be used for holding of the electrodes. Electrodes to be used during the welding process are of gauge 10 and 12. Gauge 12 is for welding metals with less thickness and 10 is for Steel with higher thickness. Drilling machines are for making holes and threads in the steel metals. Hammers are for hitting and face-shield is used for face and eyes protection during welding. Every device has its individual functions. The start-up of the business requires about $10, 000. Some of this money to buy the instruments needed and others will be kept as backup money. The backup money means money for minor expenses. Michael-Smart Steel Company will manufacture many designs of products. It involves construction of metal tables, steel gates, gas cylinders, steel skeletons of furniture which are fixable, steel protectors, vehicle parts and so on. The products to be constructed depend on the choice of the costumers.
The business intends to employ about three workers add to the owner to make-up a total of four workers. They will assist the manager (owner) to bring out good output from the construction business. The workers will be men who are capable and can put their efforts to achieve the goals of the business.
The Business Strategies The Steel construction company is to embark on awareness creation. Adverts are to be created through the media. The companys products will be displayed on newspapers within the country. Convincing adverts will be shown on the television channels nationwide. The company will hire experts that will always advertise the creation of the company through the internet. Google will be paid to show adverts on the websites of those that applied for Google Adsense within the country. Google Adsense is the program run by Google where website owners apply for adverts to be placed on their websites whenever their sites are visited by web users. The web owners are paid whenever the website user click on any of the adverts or ads as some people call it. Fliers will be distributed by serious agents that will be appoint and sponsor financially. Showcasing of the already finished products at the front of the steel fabrication company will not be left out. The products will appear attractive and catchy. The people that pass across the business area will be attracted by the finished products and it will make them to make request or demand of the products. Effective visitation is another strategy. The company will carry-out visitations to many who deal on constructed metallic products. Businessmen who sell furniture products that involve metal frameworks will be visited. The business owner will discuss with sellers of his related products on the price they will pay for the company to manufacture the products for them instead of going far. This will make the company to build strong relationship with them and sell more of the constructed works. Also, the manager will pay some visits to other big business men and contractors that make us of fabricated metal works in the country. The company workers will be empowered through incentives. They will be given additional things that they need to make them put in their best for the growth of the construction company. These incentives will increase on weekly or monthly basis. Their salaries will be increased as the company grows. The quality of the product is not left behind. Michael-Smart Steel Company will make sure the quality of their products is splendid. Quality constructed works yield quality demand. Also, quality constructed metal works yield quality profits in return. In fact, very good attention will be paid to the quality of fabricated steel. Any goods or services that have no good quality drive customers away. The quality of the metals used for the construction will be sound. There will be no room for inferiority.
Iron and Steel Metals3158.56 Generator Back-up Cash Total 1263.42 1156.03 10000.00
Goals The principal goals of the steel construction company are summarized below: To improve profit to more than 75% of the start-up money per month, about $7070.56; To boost annual profit to $84846.7; To open about four more branches within two years; To create employment for the masses; To meet up with the fabricated metal works demand in the society.
Conclusion Business planning is an important tool in affairs of businesses. This is what makes some business owners to have upper hands than others. A failure to plan is plan to fail. What I am saying is that anyone who wants to engage in businesses needs to plan. In summary, the importance and example of business planning were discussed.