Business Plan 2013

Shana Raghoebier,
Lesley de Bie,
Guylene van de Veer,
Matharoo, Manuela Bck,
Brent Heiner,
Anton Georgiev,
Hommen,
Ting Ko,
Aashna Lal,
Nancy Vosveld,
Can Guden,
Uneputty.

Romy
Youri
Romario

Executive summary
Enlightment was founded in 2012 and created by young entrepreneurs. Enlightment sells
a bag light; this baglight is a light you can place easily in your bag. With no stray light
escaping to bother anyone else, this will provide the owners of the bag to easily find their
belongings in their bag.
Especially at night when you cannot easily find your keys the baglight will help.
The market research has shown that mostly people from seventeen to forty would like to
purchase Enlightments product and the majority of them were female and also seventy
percent thought the baglight would be useful and have the problem that they cannot
find their belongings quickly.
Enlightment is the only company right now on the Dutch market who wants to sell the
baglight. Ofcourse there are other subsitutes to bright up your bag, for example the
mobile phone but that is not as convenient as the baglight. The company, nevertheless,
considers the mobile phone as a threat because of the fast growing electronic market.
However, with a unique market position strategy and differentiation strategy Enlightment
is able to succeed within its target market.
Enlightments marketing strategy is that the baglight is the only versatile, convenient,
innovative bag light in the market. Our market strategy will focus on being an easy and
simple gadget, which is simple to use. It will please the companys customers and make
their life more convenient.
Services will be provided with thirtheen employees of different cultural backgrounds who
are based in different departments. They all, however, have selling and marketing skills
which is invaluable when Enlightment starts selling its product.
The companys CEOs are Lesley de Bie together with Shana Raghoebier, they will ensure
that the company is a good running business.
The four managers, Guylene van de Veer as the Market and Sales, Anton Georgiev as the
Financial manager, Aashna Lal as the Human Resource and Can Guden as the Production
manager make sure that their departments are running successfully.
The capital required of Enlightment is 960. For Enlightment to make profit it is necessary
to sell 400 products because the profit per share will be 15,18. This is on top of the
inserted 20.
The company already has a number of potential customers who would like to buy the
baglight. Enlightment aims to promote its product through social contacts, flyers and
the companys website which provides potential customers with information about the
product.
Enlightment, furthermore, seeks advantage of social media and the possibility to send emails to a larger number of people at once in order to advertise its product. Moreover, is
a video commercial in planning.

Mission & Vision

Many women carry a bag all day long, even at night. Mostly bags are filled with a lot of
everyday commodities what results in the fact that it is almost impossible to find
anything.
Imagine a lady walking to her car at night in a scary neighborhood, she is trying to find
her keys as quick as possible, but the inside of her bag is too dark, she cant see
anything. Those moments are terrifying for every woman. These kinds of things happen
daily but Enlightment doesnt want to fight crime; no we want that the lady who wants to
get something out of her bag can do that with ease. However there never was a handy
and useful solution, until now.
Our mission is:
to save precious time and life of women
to make a difference for women, where they see there purse in a different light.
to make women feel special
Our vision is:
Safety for women: No more standing outside, while searching in your bag and avoid
cramped situations.
Awareness: Providing all women with information regarding our product.
Profit: Maximize profit per share for shareholders.
Efficiency: Work efficient and effective to increase customer satisfaction.

Contents

Executive summary..................................................................................................... 1
Mission & Vision.......................................................................................................... 2
1. Production............................................................................................................ 4
1.1 Technical features.............................................................................................. 4
1.2 Purchasing......................................................................................................... 4
1.3 Delivery.............................................................................................................. 4
1.4 Stock management............................................................................................ 4
1.5 Conclusion......................................................................................................... 5
2. Marketing & Sales............................................................................................... 6
2.1 Marketing objectives.......................................................................................... 6
2.2 Markets.............................................................................................................. 6
2.3 Competition....................................................................................................... 6
2.4 Distribution........................................................................................................ 7
2.5 Positioning......................................................................................................... 7
2.6 Added Value....................................................................................................... 7
2.7 Quantative goal................................................................................................. 7
2.8 Promotional budget............................................................................................ 7
2.9 SWOT analysis................................................................................................... 8
2.10 Conclusion....................................................................................................... 8
3. Financial Projections.......................................................................................... 9
3.1 Variable cost and fixed cost calculation.............................................................9
3.2 Departmental budgets....................................................................................... 9
3.3 Minimum selling price........................................................................................ 9
3.4 Possible scenario................................................................................................ 9
3.5 Break-even analysis......................................................................................... 10
3.6 Projected financial statements.........................................................................10
3.7 Projected profit per share scenarios ................................................................11
3.8 Conclusion....................................................................................................... 11
4. Human Resource............................................................................................... 12
4.1 Organizational structure.................................................................................. 12
4.2 Team and organization..................................................................................... 12
Conclusion................................................................................................................. 13
Appendices............................................................................................................... 14

1. Production
1.1
Technical
Eco-friendly silicone bag
features
light
The handbag
light is a very
Product height (3.5+18.5)*2*0.8cm
handy and
compact light that
Material
Rubber+Led
grants vision
in any bag that is
1PC/BOX
used to put it Packing
into. The light
panel LED
bag light is a
Logo on
Only if MOQ is >5000 pieces
completely
new way to use
packing
light for
searching through
Logo on
Only if MOQ is >5000 pieces
a bag when
there is no
product
sufficient
light or if it is too
dark. The bag-light can be attached to the bag as shown in picture A.1.1. With no
stray light escaping to bother anyone it is designed especially for finding things in a
bag.
1.2 Purchasing
Eco-friendly silicone bag
light

Price

USD$ 1.13 per piece / 0.87 per

piece

Minimum Quantity
Order
Delivery time

300 Pieces

Light Source
Certificate Standard
Power Generation
Color
Material
Power Source
Install Method
LED Life

3-5 days
LED
RoHS, SGS, Reach38, GZMR, LFGB,
FDA
Button
Any color available
Silicone
Button Cell
Clip used to attach the product to
the bag
50.000 h

1.3 Delivery
The suppliers offers us to ship the goods with TNT, UPS, FEDEX, DHL and so on. The
one thing that could be a risk were the products itself. The shipping terms were free
on board. Which means, from the moment the products arrived at the boat, the
products were our responsibility.
Fortunately, the products arrived safely , after having intense contact with the
supplier.
1.4 Stock management
The stock is stored at the residence of the production manager. In this way we will
save money on storage costs, and the production manager can keep track on the
products.
The products are partly divided within our company for personal selling, and we will
write two receipt per transaction. One for the customer and one for our company, so
that we can keep track on our sell.
We will keep track on the inventory by using a inventory manager from the internet.
1.5 Conclusion
By following this business plan and choosing the best supplier Enlightment will have
great opportunities. The biggest opportunity that Enlightment has is to introduce a
new product to the Dutch market, as it is not being sold in the Netherlands yet.
Enlightment has chosen the best supplier who can provide us with the best quality
and price, which is Yongfeng silicone rubber products. The production manager will
be keeping track of the stocks. They will also stay at the managers residence.
Enlightment has designed an receipt, for customers who buy our product. But also to
double check Enlightments stocks. Enlightment also equally divide all the tasks
within our department. So that every person knows what to do and when it needs to
be done.

2. Marketing & Sales

2.1 Marketing objectives
The objectives of the marketing plan are centered on 2 main criteria:
To create consumer awareness towards the baglight
Create 400 sales by mid April 2013
2.2 Markets
Our product is new and therefor the market suitable for us isnt clearly
outlined, what creates loads of opportunities, in this way Enlightment can
outline our wanted customer (women 17-40 years) and create a market
suitable for our customer.

How much would you pay for a bag light?

5% 3%
<5

10%
12%

5 - 10
40%

11 - 15
16 - 20

12%

21-25
>25
88%
30%

The best way for doing

that is by promoting our product in ways that link with our customers the most, for
example social media (women focused), flyers etc. and adapting our product to the
needs and wants of the customer.
In this Enlightment can build up our brand awareness, and also by working with a
charity (Dance4life), the brand value is increased. Therefor people want to spend
more on our product, and customers will have an extra reason to buy from us.
In the two surveys done by Enlightment it shows that 80% of the first survey and
30% of the consumers are willing to pay 5 10 for the product. This is why the
competitive price of 5,99 was chosen for the product.
2.3 Competition
Enlightment is introducing a new product. Therefor our competition isnt clearly
outlined, in the market Enlightment is in.

Enlightment sees a threat in mobile phones, as they have a flash, or the mini
flashlight that you can use as a keychain. However these are all secured with items
mostly to find in your handbag, and our product is secured to your handbag and
therefor you dont need to find your phone or keys first, you can just take an easy
look by pushing on the light.

2.4 Distribution
The fact that Enlightment is a student company and our product is temporarily being
sold holds us back in setting up a definitive selling point.
Therefor Enlightment choose to sell to personal contacts, market fairs, and sole
proprietorship retail stores. In this way Enlightment can still have a broad market, as
our company exist of 13 individuals spread over Holland and abroad.
2.5 Positioning
As Enlightment is a starting business, our position is not clearly defined yet.
However the position Enlightment desires is a low-cost position but due to high sales
profitable. I think a good comparison is for example the market of covers for phones
and tablets. They are cheap, but necessary and they come in all different shapes
and colors. Enlightment thinks that our product is best positioned in the same area
as those products.
2.6 Added value
Enlightment adds value to its product by working togheter with Dance4 life. It is
an organization that makes young people aware of the risk of HIV and Aids and the
prevention of it. They operate in several ways but mainly through dancing for
example they give dance classes in South Africa. The companys connection to
Dance for Life is that it will promote this organization and donate a percentage of
its turnover to them.
2.7 Quantitative goals
To make our business a profitable one, Enlightment has set up some goals, which
cover the cost and best scenario, a worthy profit.
To accomplish that, 2 units need to be sold; each unit exists of 200 pieces, what
brings us to the total of 400 pieces. The active selling period is from February till
May, in this period Enlightment is obligated to sell 400 pieces. This is a challenging
goal but very reachable, if the plan and time line is strictly followed.
2.8 Promotional budget
The promotional budget on which the company operates is going to be outlined in
the following part. Due to the fact that Enlightment is a student company
promotional cost need to be kept as low as possible. Through extensive research this
has been realized.
The cost of the flyers are 35 for 1250 and 69 for 10.000. The cost for online
advertising are kept at 27 as all the work related to it is done by company
members who are specialized in media. Together with the unexpected cost of 18
and the cost of the flyers if Enlightment choose 10.000 the promotional budget is
115.

2.9 SWOT analysis

Strengths:
1. Student company: We are a young company and understand the trends in this
ever changing market.
2. Innovative product: The baglight combines a small light source with the addition
of a cord which can be easily attached to the bag of choice.
3. Convenience: The product solves the problem of not finding the desired item
within the bag.
Weaknesses
1. No real distribution channel: There is no physical distribution point for the
product.
2. Inexperienced: Enlightment is new to this market, therefore there could be some
starting problems.
3. Limited extra features: In the end it is just a light
Opportunities
1. Limited direct competitor with the focus on bags: There are a limited amount of
direct competitors marketing their lights specific for in the use of bags within the
Dutch market. Enlightment can take advantage of that.
Threats
1. Several different substitute products: There are products that can be used as
substitutes i.e. mobile phones that everybody has.
2.10 Conclusion
Organizations at this time are extremely sensitive to demographic, political,
technological and economic developments. With the help of our and outside surveys
Enlightment has found the perfect consumer market. Analyzing the competitors has
proven that Enlightment stands strong in the market.
This has led the company to creating a strategy to create product awareness and to
eventually capture the value of the consumer. With the research done Enlightment
can conclude that the company is able to reach the target market and to reach the
companys sales targets.

Financial projections
During the research, a lot of information has been gathered. Our product the
Baglight is thoroughly examined by our financial team to search for the best
selling price and the most profitable scenario.
3.1 Variable cost and fixed cost calculation
The variable costs: The cost price per product is 1,09. We have already purchased
400 products.
That means those variable costs are equal to 433,95.
The fixed costs: The fixed costs include the budgets of the departments, the
salaries, bank account expenses and possible miscellanies. In 3.2 the departmental
budgets are furthermore explained.
3.2 Departmental budgets
Marketing department
department
Flyers
70
flyers 10
E-advertisement 27
meeting 20
Miscellaneous
18
20
Total
115
50

HR
Invitations and
Shareholders
Miscellaneous
Total

Financial department
department
Miscellaneous
25
Miscellaneous
20
Total
25
Total
20

Production

3.3 Minimum selling price

The financial department based there research on a total amount of 400 products
that will be sold. With this total amount of products the financial department
calculated the cost price per product excluding the VAT and the cost price per
product including VAT. As you can see the cost price per product is 3, 15 excluding
VAT and 3, 81 including VAT.
Cost price (excl. VAT) 3,15
(incl. VAT) 3,81

Valued added Tax = 21 %

Cost price

3.4 Possible scenario

Enlightment chose a selling price of 5,99 including VAT of 4,95 excluding VAT.
Below you can see table showing the costs, shares required, turnover, earnings
before income tax, net margins and earnings per share for different scenarios based
on the different order quantity of products.

We chose the scenario with purchase order of 400 pieces and we already have a
start-up capital of 960.
Produ
cts

Fixed
costs

Total
costs

200

600,00

816,98

250

600,00

871,22

300

600,00

925,46

350

600,00

979,71

400

600,00

450

600,00

1
033,95

1
088,19

Turnove
r
excludin
g VAT
990,00

Share
s
requir
ed
26

237,50

485,00

732,50

980,00

227,50

29

31

34

37

39

EBIT

173,03

366,28

559,54

752,79

946,05
1139,
31

Net
Profit

133,23

282,04

430,84

579,65

728,46

877,27

Net
margi
n

EPS

22,79
%
29,01
%
33,46
%
36,79
%
39,38
%

5,88
8,98

12,08

15,18

18,28

3,000.00
2,500.00
2,000.00

Fixed costs

1,500.00

Total costs

1,000.00

Turnover

500.00
100150200250300350400450

3.5 Break-even analysis

The break-even analysis shows that the company has to sell 156 products at a price
of 5.99. In this scenario you can see that the break-even point is achievable. That
means that our fixed costs have been covered. After this point it is possible to
change the price.
3.6 Projected financial statements
The projected financial statements will provide you with the information from the
first semester, the second semester and the whole year. In the first semester the
company is not going to sell, it is just purchasing the products. This is why the
company makes a loss in the first semester. In the second semester we assume that
the company will sell all of its products, based on this assumption the company will
gain 1980 in revenues.
Enlightment company

Net revenues (excl.

VAT)
Cost of revenues
Gross margin
Operating expenses
Production expense
Marketing expense
Financial expense
HR expense
Bank
Miscellaneous
Wages expense
Total operating
expenses
EBIT
Corp.Tax 23 %
Net income/loss

Consolidated Statement of Income

Semester 1
At the end of
Semester 2

1980

37.47
-

2.05
39,79

- 39,79

The Year

433.95
1546,05
20
77,53
25,
50
20
70
300.00
560,21
985,84
226,74
759,1

1980

433.95
1546,05

20.00
115.00
25.00
50.00
20.00
70
300.00
600

946,05
217,59
728,46

Enlightment company
Share holder's equity
Semester 1
Semester 2 at the end of
The year
sells
Beginig capital

920,21

Investment by

960.00
shares
960.00
Net income /loss

759,1

728,46
-39,79
End Capital

1679,31

1688,46
920,21
3.7 Projected profit per share scenarios
In this table you can see the profits per share (EPS) for different selling prices all
excluding VAT and quantity of ordered products. We chose the scenario with a price
of 4,95.
Profit per share scenario
1:
Selling price is 4

Product
EPS
s

250
2,17
300

4.40
350

6,74
400

9,08

Profit per share scenario

2:
Selling price is 4,95

Produc
ts
250
300
350
400

EPS
5,88
8,98
12,08
15,18

Profit per share scenario

3:
Selling price is 6

Produ
cts
250
300
350
400

EPS
10,09
14,03
17,97
21,91

3.8 Conclusion
Our breakeven comes at 156 sales. After that we can alter the price. We are
confident that will reach the break even. The contribution margin from every next
sold product will be an addition to our profit. Overall our startup capital was 960 or
in other words 48 sold shares. Each employee has sold 3 shares. We purchased 400
bag lights at a price of 1, 09 apiece in total 433, 95. We chose the selling price of
5, 99 including VAT or 4, 95 excluding VAT because at that price if sell all 400
products we will make net profit of 728, 46 and will cover all our costs.

4 Human Resource
4.1 Organizational structure

4.2 Team and organization

Our company consists of thirteen employees from different countries and cultural
backgrounds. Therefore the individual expectations of the employees may vary,
making this business both challenging and exciting. The main focus within the HR
department lays on communication, because good communication is the key to a
well-functioning organization. Communication also ensures that the work is
submitted in time, allowing for employees to both support and check each others
progress on the tasks. This also ensures that the work is done in an ethically
responsible way. In a company it is necessary to have a good arranged
communication and organization structure so that tasks can be done efficiently and
efficiently in addition all business goals can be met.
Another important goal is that thoughts can be shared without fear of punishment; it
is important for every employee to be heard. Effective communication can be
challenging. The company points out that there is no limit of understanding others
and what communication is about. Should any employee be afraid of voicing their
opinion, it is highly recommended to consult the Human Resource Department. The
Human Resource Department has to develop good listening and dialogue skills,
because they are an important part of this organization. The company defines good
communication in the art of actively listening, asking, understanding and reacting.
To ensure good internal communication the company will have regular meetings.
There will be three kinds of meetings: the CEO and managers meeting, the
managers and staff meetings and general company meetings. Giving information
and getting feedback will be the focus.

Conclusion
Like it was stated in the introduction, this product is revolutionary. It is new, it is
smart and it has a great sustainability. There are multiple suppliers to contact and
the company has a great market to introduce its product. Enlightment is going to
introduce a product to the Netherlands which they never heard of.
As a selling company Enlightment stands strong in the market. There are some
competitors but they will not be a big threat to the companys product or its market
position. With a good market strategy people can be made aware of the baglight. As
soon as the consumers are aware of the Baglight the selling will go smoothly,
especially because the product feeds the curiosity of its consumers. The research
that has been done by the Market Department shows that Enlightment is able to
reach out to our target market and with that reach our sales targets. The sales
target is hundred forty-three pieces, that is the break-even point when the retail
price is 5,99. Enlightment chose this retail price to cover its costs and to be able to
make profit.
As a startup capital about 960 are needed, if a purchase of four hundred products
is made. This indicates that thirty-seven shares were needed. This was not a
problem. The company has thirteen employees, when every employee sells three
shares the company will have thirty-nine shares, which is enough to cover all the
costs.
Of course Enlightments goal is not to cover up its costs and expenses; it wants to
make a profit. When the company is able to sell all the four hundred products it can
make a net profit of 728,46.
Englightments quest to find the best quality for its customers will never end.
Enlightment will never stop improving their product and we never stop to look for
more quality, because quality brightens up your world!

Do you think a bag light would be useful?

Age

90
80

<10

70
60

YES

50

NO

10 _ 16
17 - 21

40

31%

57%

26 - 30
31 - 40

30

41 -50

20

>50

10
0

22 - 25

12%

Maybe

Survey1

Survey2

Appendices
Appendix A: Product questionnaire by enlightment 2012
Survey Enlightment

What is your
gender?
What is your age?

Do you think a light

in your bag would be
useful?
Would you consider
purchasing this
product?
How often do you
visit clubs or bars? 1
for never, 5 for very

Partici
pants:
Options
:
Male

170

Female
<10
10-16
17-21
22-25
26-30
31-40
41-50
>50
Yes

72,0%
0,0%
5,0%
66,0%
16,0%
2,0%
4,0%
3,0%
4,0%
71,0%

No
Yes

29,0%
57,0%

No
1

43,0%
16,0%

Reaction
s:
28,0%

often

How much would you

spend on this
product?

2
3
4
5
<5

30,0%
33,0%
12,0%
19,0%
40,0%

5-10
11-15

29,0%

1%
13%

3%

3%

4% 19%

58%

Would you pay more

for a designer bag
light?

16-20
21-25
25>
Yes

15%
8%
5,0%
3,0%
21,0%

No

79,0%

Appendix B: Global: Look at the following statements and tick all that apply, by
gender % respondents ticking