HELP WITH BUSINESS PLAN

[momon121]

 

[Mr D]

2010 financial year? $15?
Good luck with TUPE, get professional advice before making changes.

 

[momon121]

Table of Contents



1. Executive Summary



2. Company Description

3. Products and Services



4. Marketing Plan



5. Budget and Financial Analysis



6. Key People



















































Copyrights 2018 all rights reserved.


Hillal Namajee



Vodafone

Business Plan














1. Executive Summary



I have the relevant knowledge, skill set and experience of working in the mobile telephone industry at management level in order to make a success of this


franchise. I have the required funds to provide for a positive cash flow so that I can meet all financial obligations to my creditors in a timely fashion. I understand my obligations in respect of Protection of Employment Regulations 2006 (TUPE). At the current level of store revenue, the budgeted staff costs for 2017/18 are unsustainable in the short to medium term and therefore I would be looking to reduce staff costs by around 27% without affecting the level of current customer service support. If Vodafone can redeploy the Store Manager and the Assistant Manager within its own network of stores, it would help to reduce staff costs immediately making the store financially viable. Otherwise, notwithstanding TUPE I would be seeking to replace the store Manager with myself and the Assistant Manager with the current Technical Advisor who will also, in my absence, exercise store management responsibilities. It is in my interest to achieve the very challenging business targets as set out by Vodafone over the next 3 years. If initially these business targets were not achieved at the rate envisaged, I require Vodafone’s assurance that it will be mindful of local market conditions in judging my performance and not move to cancel the agreement at the 18 months option or for that matter in 3 years’ time. I hope that Vodafone appreciates I will require its understand and support in the early years to make a success of this franchise.










































Copyrights 2018 all rights reserved.

 

[momon121]

2. Company Description



A limited company will be registered with the Companies House in England and Wales which will have 100 shares with a nominal value £1 per share and all the shares owned by myself. The purpose of this company will be to run this Vodafone franchise.


2.1 Mission Statement


To make a success of the Vodafone franchise by:


- building a first-class reputation locally for before and after sales service support and earn customer loyalty;



- significantly increasing new and repeat business;



- Increasing local presence by participating and/or supporting local events, in particular the local charities.




2.2 Business Objectives


The following are the main business objectives to:


- Achieve the short and medium-term sales targets;



- Build a highly motivated Sales Team by an inclusive and supportive style of management and through a reward scheme for meeting sales targets;



- Create an attractive store environment for customers to entice them to make a sale;



- Build good relationships with customers and suppliers;


-Meet our financial obligations to our creditors in a timely fashion.























Copyrights 2018 all rights reserved.


Hillal Namajee



Vodafone

Business Plan














3. Products and Services


Handsets


Our wide range of handsets covers all our customer segments and price points and is available in a variety of designs.


• 66 new models released in the 2010 financial year.


• 23 exclusive handsets launched.


Smartphones


• A handset offering advanced capabilities including access to email and the internet.


• 24% of handset sales in Europe.


• All leading brands represented including iPhone in 14 countries.


• Launched two tailor-made Vodafone 360 handsets: Samsung H1 and Samsung M1.


Vodafone branded handsets


• Enabling millions of people in emerging markets to share the benefits of mobile technology.


• Prices start from less than US$15.


• 16 new models released under our own brand.


• Low cost combined with high-end features, such as touch screen and mobile internet capability.


Voice & messaging services


We provide value focused pricing through unlimited bundles of voice and text services.


• Voice services incorporate revenue for national, international and roaming calls.


• SMS services include text messages as well as multiple media, such as pictures, music, sound, video and text.


The core functionality and use of handsets continues to be voice and text messaging services. Many different tariffs and propositions are available, targeted at different customer segments, and include a range of unlimited usage offers which have been particularly appealing to customers.


With sophisticated handsets becoming readily available, customers are increasingly using their mobile phones to complement their lives in new and innovative ways. Data usage continues to grow rapidly fuelled by large numbers of intuitive internet enabled devices (‘smartphones’), many with touch screens such as the iPhone and BlackBerry® Storm™, and transparent pricing available through our “internet on your mobile” unlimited browsing tariff. Instant messaging is available with Yahoo! and MSN and we offer integrated services from leading internet brand partners including YouTube, eBay, Google™ and Google Maps™.

 

[momon121]

Our partnership agreements with leading companies, such as RIM, Samsung and Google, have enabled us to be first to market with cutting- edge devices such as the BlackBerry Storm, Samsung H1 and Samsung M1 (our two tailor-made handsets that support our Vodafone 360 proposition) and Google Nexus One.


Available in 31 markets including partner markets, Vodafone branded devices are designed to meet a range of customer needs and preferences – from low cost phones offering simple voice and text, through fashion and design influenced, to competitively priced mobile internet devices with cutting-edge smartphone functionality including touch screen and mobile internet capability. During the 2010 financial year Vodafone launched its most affordable handset to date, the Vodafone 150, which retails for less than US$15 unsubsidised, giving millions of people in emerging markets the opportunity to share in the benefits of mobile technology for the first time.


A sample list of some of our products is as followed:


• iPhone X & 8/8+ Registration


• Pay-as-you-go

• Pay-as-you-go Top-10 Bolt-on


• Pay monthly plans


• Pay monthly out of bundle rates

• Pay monthly roaming plan


• Pay monthly mobile bolt-ons


• Pay monthly roaming bolt-ons

• Mobile Broadband


• 4G Home Broadband

• International calls


• Fixed wireless phone


• Premium numbers


As well as consumer base products Vodafone offer a number of business related products.





























Copyrights 2018 all rights reserved.


Hillal Namajee



Vodafone

Business Plan














4. Marketing Plan


4.1 Customer Demographics


Two thirds of people now own a smartphone, using it for nearly two hours every day to browse the internet, access social media, bank and shop online.


Ofcom’s 2015 Communications Market Report, published on 6 August, finds that a third (33%) of internet users see their smartphone as the most important device for going online, compared to 30% who are still sticking with their laptop.


The rise in smartphone surfing marks a clear shift since 2014, when just 22% turned to their phone first, and 40% preferred their laptop.


Smartphones have become the core of our daily lives and are now in the pockets of two thirds (66%) of UK adults, up from 39% in 2012. The vast majority (90%) of 16-24 year olds own one; but 55-64 year olds are also joining the smartphone revolution, with ownership in this age group more than doubling since 2012, from 19% to 50%.


The surge is being driven by the increasing take-up of 4G mobile broadband, providing faster online access. During 2014, 4G subscriptions have leapt from 2.7 million to 23.6 million by the end of 2014.


We now spend almost twice as long online with our smartphones than on laptops and personal computers. On average, mobile users spent nearly two hours online each day using a smartphone in March 2015.


Smartphone users with 4G are shopping online more than those without 4G (55% of 4G users do this compared with 35% of non-4G users); banking more online (55% versus 33%); watching more TV and video clips online (57% versus 40%); making more face-to-face and voice calls over the internet (28% versus 20%); sending more photos and videos via text (49% versus 36%); and instant messaging more with services such as WhatsApp (63% versus 50%). At least one 4G mobile broadband service is now available to 89.5% of UK premises, with four in ten people (42%) able to choose from all four 4G providers - EE, O2, Three and Vodafone. The mobile operators continue to expand their 4G networks, and Ofcom rules mean that 98% of premises will have an indoor 4G signal from at least one operator by 2017.


Today, indoor 2G mobile voice coverage reaches 98% of people’s homes and offices. But that still leaves 2%, or half a million premises, without a signal. Smartphones now take more photos than any other device, including digital cameras, with 60% of adults saying they use it most to take a snap, rising to almost nine in ten (89%) of 16-24 year olds. Just over one in five adults (22%) mostly use their digital camera.


People in the UK took an estimated 1.2 billion ‘selfies’ in the past year. Nearly a third (31%) of UK adults admit to taking a selfie, with one in ten (11%) doing so at least once a week.

 

[momon121]

Ofcom research3 shows that internet users aged 16 and above said they spend nearly 10 hours (9 hours and 54 minutes) online each week in 2005. It had climbed to over 20 hours and 30 minutes in 2014.


2014 saw the biggest increase in time spent online in a decade, with internet users spending over three and a half hours longer online each week than they did in 2013 (20 hours and 30 minutes in 2014, compared to 16 hours and 54 minutes in 2013).


Most 16-24 year olds are watching on-demand and catch up programmes on computers and smartphones rather than on a TV connected to a set-top box. Nearly six in ten young people (57%) regularly watch on demand and catch-up TV on their laptop or PC. Almost half (45%) watch on a smartphone, and four in ten (40%) switch on a set-top box.


On smartphones, short-form video clips are even more popular than watching a film or TV programme: 42% of people say they watch short videos from services including YouTube, Instagram Video and Vine on their phone, compared to 21% watching a film or TV programme.


Summary of key market developments:


• Over the past five years, average monthly household spending on communication services has decreased in real terms, from £122.07 in 2009 to £117.71 in 2014 - representing a monthly decrease of £4.36, or £52.32 per year.

• General satisfaction levels with communications remains high: 86% of adults are satisfied with their broadband, both fixed and mobile.


• 91% of adults are satisfied with their mobile service, and 89% with their fixed-line phone.


• Total telecoms revenues fell by 2% to £37.4bn in 2014, largely as the result of falling wholesale service revenues.


• Fixed internet revenue growth accelerated as a result of increased fibre take-up. Retail residential and SME fixed internet revenues totalled £4.9bn in 2014, up from £4.2bn in 2013.


• Almost four in five households now have fixed broadband and around one in three of those are superfast lines delivering broadband speeds of 30Mbit/s or above.

• By May 2015, 83% of UK premises were able to receive superfast broadband.

• There are now 23.6m 4G subscriptions in the UK, 28% of mobile subscriptions, compared to just 3% (2.7m) in Q4 2013.


• SMS use fell for the second consecutive year, from 129 billion messages in 2013 to 110 billion messages in 2014, largely due to increasing smartphone take-up and use of internet-based communications.


• Newer online methods of communications are gaining significant levels of reach among online adults. Social media (62%), instant messaging (57%) and VoIP calls/video (34%) are used by many people for communicating with friends and family. Picture messaging services are used by a third of online adults for communicating with friends and family (34%) and a quarter use Twitter (24%).


Please find a table below setting out our customer demographics





Copyrights 2018 all rights reserved.


Hillal Namajee





Vodafone

Business Plan













Customer Demographics

Details





over



Age


18 and


Gender

Women & Men


Location




Income Level

Enough for Credit/ One of Payments


Social Class

N/A


Education

N/A


Other

Men and women seeking new mobile






products and services & Accessories.

 

[momon121]

4.2 SWOT Analysis




My strengths are;


1. I have an honours degree in Management and Marketing which has given me the appropriate knowledge and skill set required for running a business and for exercising financial control;



2. I have a first-hand experience of running mobile telephone store of a competitor provider. This has given me a good understanding of how our competitors go about increasing their market share which will help me to compete with other local mobile telephone stores, particularly on local marketing strategies and customer service.



3. I also have GNVQ qualification in Advanced Engineering and NVQ qualification in Distribution and supply of vehicle parts which has given me transfer skills in understanding the supply chain of mobile telephone products and the importance of technical support to customers, extremely important in successfully running my Vodafone franchise.



4. At the moment I am single and can devote my entire energy to making a success of the franchise.




My weaknesses are:


1. I have not run a franchise before now but this is mitigated by the fact that I have practical experience of managing business activities, particularly running a mobile telephone store as a Manager.



2. I will have to seek knowledge of my responsibilities under TUPE so that I can reduce staff costs without breaching any of my legal obligations to my staff.


Opportunities:


1. Preston is a major centre for British defence industry with BAE being the major employer. Due to Preston being a transport hub, it is the home of several home and overseas haulage companies. University of Central and the local authority are the other major employers. There is a large student population in and around Preston. The demographics favour the use of mobile telephones and broadband, providing opportunity for increasing Vodafone market share locally.
















Copyrights 2018 all rights reserved.


Hillal Namajee



Vodafone

Business Plan



Threats:










1. There are two competing nearby stores, Carphone Warehouse and EE, for mobile phones and related services. Vodafone has on the lower prices than EE. However, the high-level customer service we intend to provide ought to mitigate against any threats from these stores. Having these stores in the same shopping centre can also be an advantage since customers seeking mobile phone deals will come knowing that they can shop around for mobile phones, giving us the opportunity to take advantage Vodafone’s lower prices and our first-class customer service to increase our market share locally.



4.3 Marketing Process


We will be guided by the national and local Vodafone marketing strategies and play our part in marketing at the local level. In addition to attractive window display and inviting store environment, we will also show our presence at local events and support local charities which ought to keep Vodafone brand advertised on an ongoing basis throughout the year.


Our first plan to attract customers would be to display eye catching displays on the shop front windows with our latest deals on branded posters. This could be a combination of Vodafone's national promotions and our own in store incentives. We could also have a chalk board stand on display outside the shop with daily deals displayed. Examples of deals to be displayed on the chalk board could be "Sign up today on a Sim only deal for only £x a month". The idea of this would be to attract attention of customers looking for a good deal on a popular phone such as the iPhone.


Secondly, the idea of supporting a local charity would not only emphasis Vodafone's CSR efforts and show Vodafone as a supportive and caring company but it is also a way of raising money for those in need. This could be in the form of a selling badges for children in need, doing a bake sale for a local charity or sponsoring a local run. This will raise awareness of our brand as well as helping the local community. It can only be seen in a good light.


An inviting store environment is also key. Friendly and helpful staff with good mannerism and great training will help to retain customers as well encourage new customers to join our great network. If staff are welcoming, customers will be more likely to ask questions about products and enviably sign up with us.

 

[momon121]

5.Budget and Financial Analysis


The cash flow set out below is a 12-month budget. The budgeted revenue is worked out using the £290017 set out in the Vodafone Pack and divided by 12 to show monthly revenue. As I will be paid in one-month arrears the first month I will not receive any revenue. The budgeted cost is worked out in the same way using the total cost given in the Vodafone Pack.


The two columns below once again show the budgeted Revenue from the Vodafone pack and in terms of the planned costs they are using the proposed costs that I have set out and once again dividing it by 12 to show monthly costs.

Please find below a comparison table of current costs (as set out in the Vodafone pack) to the proposed cost savings that I expect to enforce. Please also bare in mind that the salary figure of £61,500 takes into account the £27,000 salary of the store manager which will no longer be needed as I will take up that position and I have estimated the Assistant Manager having a salary of around £20,000.





Copyrights 2018 all rights reserved.


Hillal Namajee



Vodafone

Business Plan

In the supplied current budget for 2017/18 wages are reduced by £47000 by deleting two of the three full-time posts (Store Manager replaced by me (£27000) and Assistant Manager (estimated wages of £20000) by the Technical Advisor who will exercise management responsibilities in my absence. This will reduce the wage bill by around 43%. The corresponding savings in tax and NI will be £8477 and in pensions contribution as £2294. So the total staff costs savings will be £57,771, a saving of around 47%.


The reduction in the planned variable costs as opposed to budgeted is £13054, a saving of around 44%.


The saving in the budgeted annual operating costs will be £70,824, an overall saving of around 29%.


The planned cost savings will put the store on a sustainable financial footing.


After the above planned savings, the budgeted required cash flow requirement of £108509 falls to £77365 (worked on the basis of % of total budgeted total costs).


However, actual budgeted cash flow requirement be £69054 and will have positive cash flow in the 7th month. After cost savings the cash flow requirement falls to £19815.


Financial Analysis


My own Capital of £60,000 will cover the cash flow requirement of £19815 after the savings have been made, leaving a contingency fund of £40185. So, if Vodafone can deploy the current Store Manager and the Assistant Manager, then I have more than sufficient funds of my own to cover costs.


However, if the current Store Manager and the Assistant Manager were transferred to me under TUPE, then it would take me some months to achieve the required savings to put the store on sound financial basis. This will then involve me in taking a loan from my family of around £10,000. Two other options are a bank loan or Vodafone to make a loan to me of £10,000 in month 4 against the first month’s revenue paid in arrears at the current base rate plus around 2% which I would be able to repay with interest in the 12th month.

 

[momon121]

Key People

Details

Name



Title

Store Manager

Role

Franchisee

Expected Salary



Experience

I have vast experience in running my own business through




running my own property business. As well as experience in




self-employment I have gain vast experience in the mobile




telecommunication industry by working for Orange as a store




manager.





Key People

Details

Name

XXX

Title



Role

Technical Assistant

Expected Salary

£


Experience

The technical assistant will be already being working in store,




and has a number of years if experience. They will have the




technical knowledge and, in my absence, exercise the duty of




manager.









In addition to Hillal Namajee and the technical assistant the store will be run by a staff force of X employees, with X being full time and X part time staff. All employees will be employed through the franchise via Vodafone. Employees salary will be dependent on position held and roles required, however everyone will be on at least the legal minimum wage. Holidays, annual leave and sick pay will also be covered in employee contracts. On any given day the store will require at least X employees on site.


















Copyrights 2018 all rights reserved.


Hillal Namajee



Vodafone

Business Plan















I believe I have the experience, knowledge, drive and the financial backing to strive and make a success of this store. I will commit wholly and dedicate time and perseverance to make sure I make the best out of this opportunity.

 

[Chris Ashdown]

Not many positives in the Executive Summary, wont make budget, Need Vodafone to re-employ two senior people, Already unsure of break clauses

Also no paragraphs

To long to read much further, but sure Clinton will answer you better

 

[Mr D]

Does a franchise not employ all its own staff?

 

[momon121]

Morning Guys.

We went for the presentation and we presented our business plan and yesterday we recieved a call saying we were unsuccessful based on one area of reducing cost. The network provider are seeking partner agents who are willingly to pump more money into hiring more staff as oppose to reducing staff to what I proposed.

They clearly stated that they wanted their partner agents to invest more money than themselves, on that note I conceded with the fact at their refusal of my application is somehow a God Send for me! What are your thoughts ?

Year on year the franchisor has reduced it’s operating cost and it didn’t make
Sense to me for us to pump more money into this store?

 

[Chris Ashdown]

Afraid you were just looking at your own plans like Vodafone taking two staff you did not want and they were looking to reduce their costs but have you expand their business for them

Only you know all the figures to be able to judge what was the best way forward, maybe they are looking for a group to take over a whole area of more than one shop

Good luck for the future

 

[Noah]

They clearly stated that they wanted their partner agents to invest more money than themselves

This is a common "business model", based on the assumption that there's always another mug who will be happy to spend their money on your business - I think our American cousins call it "fleecing the rubes" or some such. Compliments on not allowing yourself to be fleeced.

 

[Mark T Jones]

If you're not comfortable investing (or able to invest) then you've dodged a bullet

 

[momon121]

It’s not the question of investing for me it just didn’t make sense investing further if the company has made £48k in profits after wages and cost. I provided all the evidence of my finances. For a partner agents to invest more than the franchisor didn’t sit well with me.