MOBILE SOLUTIONS

Business Plan
Prepared: Sunday, 11 July 2010

ABN: 52 552 581 006

ACN: 456 123 786
 Mobile Solutions Business Plan 2010

Contents
Of Business Plan for Mobile Solutions

The Business ........................................ 3

Marketing ............................................. 6
Finance................................................. 9
 Mobile Solutions Business Plan 2010

The Business

Business Name: Mobile Solutions

Prime Function: There’s no doubt about it, the Telecommunication industry is

huge in Australia – over half of the Australian population owns a mobile phone.
There are 100’s of different phones, confusing plans and service providers with
different promotions in the marketplace.

I was surprised to realise that currently no service is available to help consumers

to make the right decision about choosing the right phone and plan. That’s where
“Mobile Solutions” comes into the market.

Mobile Solutions is a non-bias, customized consulting service that provides

consumers with useful information and advice about choosing mobile phone,
plans and providers that are the most compatible with their lifestyle.

Although “Mobile Solutions” will always remain unbias, we’re still indirectly
advertising service providers and mobile. Negotiations have already been made
with service providers to pay a minor sum of $500 per week in exchange for
promoting their service. As for the phones, all the phone companies have agreed
to provide “Mobile Solutions” with a sample of every model available. This is so
the customers can interact with the phones before deciding if it’s right for them.

Location: Location is such an important aspect of a business, especially when

establishing a small business, seeing as 75% of small businesses fail within the
first 5 years of trading. After much consideration, I have decided to locate my
business, “Mobile Solutions” in Tamworth City Plaza. City Plaza is the ultimate
location for a number of reasons.

 City Plaza is a considerable complex, the third largest in Tamworth. It

has a broad variety of shops that attract a broad range of customers,
specifically those in my target market.
 Tamworth, which is a financially stable area. All the browsing
customers would fit the financial characteristics of my target market.
 Having my business in such a high customer flow and density as
Tamworth, is great for advertising and getting the service well known.

Buy/lease:

The store which ‘Mobile Solutions’ will be a leased from the City Plaza complex,
on a 3 month term, to allow for settling into the market.
 Mobile Solutions Business Plan 2010

Legal Structure:
Names of owners: Fletcher Davies – Proprietor – Managing Director
John Black – Proprietor – Board Member

Details of management & ownership:

“Mobile Solutions” is an incorporated partnership, consisting of; Fletcher Davies

and John Black on a 60% to 40% ratio.

Experience:

Fletcher Davies – has experience in technology and communications via a

personal use.

John Black - Retired HR Mgr of the T.I.O, (Telecommunication Industry

Ombudsman) Additionally, John has past experience in running a business.

Benefits:

The benefits of partnerships are;

 The ease of establishing the business.
 Access to finance is easier in comparison to sole-trader.
 Individual partners can share the task of running the business.
 Can be tax advantages in partnership.
 Adds required expertise to management.
 Adds capital.

Mission Statement:
Mobile Solutions is dedicated to the consultation with consumers to find the best
suited mobile phone and service provider possible for their specific
requirements.

Business Goals:
Short-term Goals;
 To achieve a sales turnover of $2 million in its first year of trading.
 To conduct an advertising campaign of $100, 000, to be successfully
introduced into the marketplace.

Long-term Goals;
 To achieve sales of $5 million by 2012.
 To open 10 “Mobile Solutions” within NSW by 2016, hence making it
a chain-store.
 Offer a high level of service.
 Mobile Solutions Business Plan 2010

Personal Goals:
Short-term Goals;
 Build a sustainable business.

Long-term Goals;
 To create a substantial business worth to sell at a later time.

Human Resources:

Trading Hours

Trading Day Open Hours

Monday 9.00am – 5.30pm
Tuesday 9.00am – 5.30pm
Wednesday 9.00am – 5.30pm
Thursday 9.00am – 5.30pm
Friday 9.00am – 5.30pm
Saturday 8.30am – 7.00pm
Sunday 11.00am – 3.30pm

Required staff

Job Title Quantity

Full time 4
Part-time service crew 3
Maintenance crew 2

2 consultants will be required as well as 1 permanent crew member constantly

updating and maintaining the database. If the two consultants are unoccupied,
then they too can temporarily help with the database as well, as a second priority
duty. Due to much higher density at Tamworth City Plaza on weekends, 3
consultants will be recruited for weekends, as well as the 1 permanent database
maintenance crew. 2 full-time general managers will also be hired to look after
administration and supervision. All up, 4 full-time and 3 part-time service crew
are required as well as 2 maintenance crew. Each of the staff members is
specialized in dealing with a specific target market. Eg, Business rep, Teenager
rep, Parent rep to offer a customized service.

Training programs

Once staff are hired, they must go through a 7 day external training course where
they’ll be trained in the following;
 Product knowledge
 Answer enquires promptly, competently and professionally
 Educating the customer
 Learn to quickly absorb new information
 Further develop their interpersonal skills
 Mobile Solutions Business Plan 2010

Marketing

Target Market:
After completing market research, I have identified my target markets. There are
a few different types of target markets in this industry as it is such a large one.
Consumers with the highest usage and largest queries include;

~ Business people.
Their main form of usage is phone calls.
 Their geographic characteristics are generally highly populated areas, such as
the city, or urban areas.
 Their demographics are both sexes, generally aged between 25 – 40, a
relatively high level of education and income and white-collar employees.
 Their psychographic characteristics include being in the middle to upper class
of society and financially very stable, busy people who rely on mobile phones
as a major source of communication.
 Business people generally want new, high model phones with technical
advances such as WAP and GPRS and use their mobile phones the most on
weekdays between the peak hours 9-5.

~ Teenagers and Young adults.

Teenagers and young adults are one of the largest users of mobile phones, with
their main form of usage being through SMS messaging. Although majority of
teenagers are with pre-paid forms of mobile phone service, market research
shows that teenagers are far more willing to join post-paid services, but are
confused with all the different offers. Our service would be excellent for them.
 Geographically, teenage users live everywhere and are relatively evenly
distributed.
 Their demographic characteristics are both sexes, aged between 15 and 25,
financially secure, either through own funds or parental funding, and
generally speaking, majority have commitments to high school, university or
a job.
 Their psychographic characteristics include being middle to upper class of
society, financially secure, predominately speaking, dependent on parents or
guardians and very social personalities and busy lifestyles.
 Teenagers and youth desire “fashionable”, new phones with special features
like digital cameras, and games and use their mobile phones extensively
throughout the week. Monday to Thursday, phones are used between 7 and
10, particularly around 9 PM. On Fridays, phones are used between 7PM and
1AM. Saturday, being the day of the highest usage, phones are mainly used
between midday and 1AM and Sundays between midday and 10.
 Mobile Solutions Business Plan 2010

~ Parents
Parents often provide their children with mobile phones, appreciating the sense of
security that they offer and convenience of being able to keep in contact with
their children. Although parents aren’t high users of mobile phones, they tend to
financially support their teenagers. Market research has shown that parents are
the largest proportion of customers that ring service providers and make
enquiries.
 Their geographic characteristics include domestic, suburban areas that are
moderately dense.
 Their demographic characteristics include both sexes, but market research has
shown it’s predominantly mothers that make more enquiries. Their age is
generally from the high 30’s to the high 50’s
 Psychographically, parents that make the most enquiries are of middle to
upper class of society, with a relaxed lifestyle and take a great interest in their
child’s life

Market Analysis:
Price
The price of a product is one of the most important factors in a customer’s
decision to buy a good or service. Seeing as no competition exists for this service,
the market skimming pricing tactic is being used – whereby when there is no
current competition for the business, relatively high prices are introduced that
can be lowered to meet competitors when needed. Introductory prices are as
follows;

 $30 for a half hour consultation. This can later be lowered to $20.
 $40 for an hour consultation. This can later be lowered to $30.
 $50 for over an hour consultation. This can later be lowered to $40.

The price strategy will also be combined with a discount strategy, whereby the
customers are rewarded a 10% discount when they complete a customer
feedback survey. This is essential for the development and maintenance of staff
and also satisfies the customer as they receive benefits.

Promotion
Promotion is designed to inform the marketplace about who you are, how good
your product is and where they can buy it. There are 4 key parts to a promotional
program;
 Personal selling – This is a major promotional tool used and the most
important promotional component for our business. It involves
interpersonal skills and where our outstanding customer service will be
of use. Personal selling is about adapting to your customer and
customizing your hospitality for every customer.
 Advertising – This is probably the most effective way of communicating
with the largest number of people in a variety of target markets. The
main form of advertising my company will be using is advertising
through local Sydney radio stations, newspapers and leaflets. Seeing
 Mobile Solutions Business Plan 2010

as at this stage of the establishment phase of the business life cycle,

there’s only one location being opened – in the north shore, broad
advertisements such as television, billboards and magazines would
prove expensive and meaningless.
 It’s important to commence advertising before the shop is established,
as this builds customer confidence before the service starts and also
builds anticipation for the customer.
 Sales Promotion – This is a wide ranging group of promotional
activities. I intend to get the business started with a customer
feedback promotion, whereby the customer receives a 10% discount
for filling out a customer feedback survey.
Place
Seeing as this is the establishment phase of the business, and only one store is
currently open, it makes this store an exclusive distributor – the supply of this
service is limited to a particular store or outlet.

Product
“Mobile Solutions” is the only seller of this service to offer the customer
everything that’s available on the market.
 Mobile Solutions Business Plan 2010

SWOT Analysis:

Strengths Weaknesses
 Due to the innovation of the business, there is  Due to the broad range of service, training crew could be
currently no competition. difficult. They would need a wide, sincere knowledge of
 To avoid future competitors stealing business, we will different plans and providers in the marketplace.
maintain an outstanding level of sincere customer  High labour costs.
service. Consulting is sold and purchased mainly on a
word-of-mouth basis, hence positive customer
experiences will result in high sales.
 Low running and maintenance cost of business, due to
it being a service, not a product.
 Increased capital and industry experience due to
ownership status.
Opportunities Threats
 There is a large niche in the marketplace for this  Since this is a new and innovative service, there is no
service existing consumer confidence.
 Positive market perceptions about this business.  Major competition already exists. Ie. Service provider sales
 This service is of great value, hence there will be a departments.
great demand for this service.
 Option to diversify service to a call-centre base/on-line
consultancy
 Expand into a chain of “Mobile Solutions”
 Mobile Solutions Business Plan 2010

Finance

Source of Finance & Capital:

Source: $AUS

Commonwealth Govt Grant 50,000

CBA Loan 100,000
Owners Capital 300,000

450,000

Commonwealth Bank of Australia (CBA) loan of $100,000 AUS, has been taken
out on a three year fixed corporate loan rate of 9.89% p.a., to be paid back on a
monthly cycle at a figure of $96.66.

The Australian Commonwealth Government, Telecommunication Choice Grant

(Telechoice), is a $50,000 AUS grant, to be used in an already existing Telechoice
business or to start up a new telecommunication consulting business, as in the
case of Mobile Solutions. This government grant has no repayment date as it is a
government grant.

Both Fletcher Davies and John Black come to the business with owner’s capital to
a ratio of 60:40, therefore, Fletcher Davies brings $180,000 AUS and John Black
brings $120,000 AUS.

All three of these sources of income lead to a total amount of $450,000 AUS.

Gearing:
The gearing for Mobile solutions is that for every $1AUS owed the business has
$3.50AUS in equity this is evident in the pie graph below.
 Mobile Solutions Business Plan 2010

Balance Sheet:
As of the 30 June 2010        
    $    $ 
       
CURRENT ASSETS         
Cash at Bank    100,000   
Accounts Receivable    0    
Stock    65,000    
Materials    90,000     
Total Current Assets      255,000  
       
NON CURRENT ASSETS       
Equipment    150,000   
Less depreciation     ‐ 5,000    
Total Non Current Assets      145,000  
Total Assets      400,000  
       
CURRENT LIABILITIES       
Accounts Payable    0    
Bank Overdraft    0     
Total Current Liabilities      0  
       
NON CURRENT LIABILITIES       
Long-Term Bank Loan   100,000     
Total Non Current Liabilities      100,000  
Total Liabilities     100,000  
       
OWNER'S EQUITY       
Capital       
Fletcher Davies Input    180,000    
John Black Input    120,000     
Total Owner's Equity      300,000  
       
Total Liabilities + Owner's Equity      400,000  
 Mobile Solutions Business Plan 2010

Sales Forecast:

Sales Forecast for the 12 months Jul 10 - Jun 11

Mobile Solutions - Tamworth

Fiscal Year Begins Jul-10

12-month Sales Forecast

Annual
Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Totals
Consultation 132 133 130 130 130 135 130 120 135 127 133 130 1565
Consultation @ price $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00
Mobile Sold 120 121 110 116 123 139 96 95 125 123 121 136 1425
Mobile Sold @ price $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00
Sales TOTAL ($AUS) 33,900.00 34,175.00 31,750.00 32,950.00 34,350.00 37,925.00 28,950.00 28,000.00 35,125.00 34,125.00 34,175.00 36,950.00 402,375

Summary:
Mobile Solutions’ first month of trading will see a large first month figure of 33,900 $AUS. This figure is found from 132 client consultations at a
standard price of 75 $AUS per consultation, and the sale of 120 mobiles at a median price of 200 $AUS. Compared to this first month the lowest
forecasted sales is 28,000 $AUS and highest intake is 37,000 $AUS. Therefore over the forecasted 12 months the business mobile solutions will intake
a total of 402,375 $AUS.
 Mobile Solutions Business Plan 2010

Profit Monthly

$40,000.00

$35,000.00

$30,000.00

$25,000.00
Profit ($AUS)

$20,000.00

$15,000.00

$10,000.00

$5,000.00

$0.00
Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11
Month
 Mobile Solutions Business Plan 2010

Fiscal
Year
Twelve-month cash flow Mobile Solutions - Tamworth Begins: Jul-10
All figures are in $AUS

Jul‐10  Aug‐10  Sep‐10  Oct‐10  Nov‐10  Dec‐10  Jan‐11  Feb‐11  Mar‐11  Apr‐11  May‐11  Jun‐11  Total 
Sales     400,000 34,175 31,750 32,950 34,350 37,925 28,950 28,000 35,125 34,125 34,175 36,950 402,375
Reattained Profits  0 -64,802 -57,548 -53,781 -47,052 -38,923 -28,981 -26,252 -24,473 -17,331 -9,427 -1,473 -370,043
Total Income     400,000  ‐30,627  ‐25,798  ‐20,831  ‐12,702  ‐998  ‐31  1,748  10,652  16,794  24,748  35,477  398,432 
     
Solicitor's Fees  1,000 - - - - - - - - - - - 1,000
Accountants Fees  1,000 - - - - - - - - - - - 1,000
Business Registration  133 - - - - - - - - - - - 133
Licences     1,150 - - - - - - - - - - - 1,150
Computers + 
Software  2,000 - - - - - - - - - - - 2,000
Signage     2,000 - - - - - - - - - - - 2,000
Radio Advertising  398 - - - - - - - - - - - 398
Rent     2,000 - - - - - - - - - - - 2,000
Electricity     1,000 - - - - - - - - - - - 1,000
Phone and Fax  400 - - - - - - - - - - - 400
Insurance     700 - - - - - - - - - - - 700
TV Advertising  2,250 2,250 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 20,000
Bank Loan     96.66 96.66 96.66 96.66 96.66 96.66 96.66 96.66 96.66 96.66 96.66 96.66 1,160
Wages     19,575 19,575 19,575 19,575 19,575 19,575 19,575 19,575 19,575 19,575 19,575 19,575 234,896
Staff Superannuation  - - 1,762 - - 1,762 - - 1,762 - - 1,762 7,046
Stock     65,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 120,000
      0
     
Total Expenses  98,702  26,921  27,983  26,221  26,221  27,983  26,221  26,221  27,983  26,221  26,221  27,983  394,883 
                                            
Overall Profit     301,298  ‐57,548  ‐53,781  ‐47,052  ‐38,923  ‐28,981  ‐26,252  ‐24,473  ‐17,331  ‐9,427  ‐1,473  7,494  3,549 
 Mobile Solutions Business Plan 2010

Breakeven Analysis:

Key:
---- BLUE = Income
---- GREEN = FC
----RED = VC