Business Plan for Loan Approval Assignment Example | Topics and Well Written Essays - 3500 words

Business Plan for Loan Approval - Assignment Example Falcon is likely to achieve 150 % of what its competitors are doing because of favourable location and other completive advantages. An initial market research finds that the firm would be able to achieve the 200% sales in the next 2 years from the date of commencement of business. At present there are three firms doing similar kind of business in the locality. But, all of them import from some other countries and pay high price for the goods imported. So the first and foremost key element of proposed firm's success is that MP3 players can be marketed at high margin where competitor have no market and at low price where they have market. Both strategies will result in high sales and income. Another key area to be focused upon to bring more sales is the introduction of innovative strategies. When the retailers are given special selling offers and discounts and long credit period to trustworthy customers, more sales can be brought in more turnovers and high profit. Similarly, human resources-the sales people- must be inspired and encouraged to market the product and make the product popular among the retailers. Last, but not least, management of finance must be given equal importance as any other resources. To start with the business takes partnership form of business with two partners of equal share. Accordingly, a partnership deed is created and the firm is registered as per the Partnership Act. It must be given in the partnership deed that both partners should take part in the business and have equal share in the profit earned and loss incurred by the firm. Once the firm achieves major share in the market, the firm is indented to be converted into a privately owned company with few more shares to be distributed among the relatives of the partners. After a few years of successful operation, the company will expand its operations to other markets with diversified products of similar nature. Then, the company will convert itself into a public owned company with limited liability to enjoy all the benefits of a Public Limited Company. 2.2 Start-up Plan The start-up plan begins with athree month start-up period (September to December, 2008). During this period the firm will give emphasis primarily on setting up an office premises and developing an efficient and effective marketing plan and resources including sales personnel. The start-up expenses include expenses associated with opening an office, legal expenses, initial marketing expenses and those associated with hiring people.A part of the initial expenses can be met with the legacy amount inherited from one of the partners' uncle. The rest of the expenses is intended to be met out of the loan sanctioned by a bank. The expansion expenses in future are financed from sales revenue. Initially, the firm is leasing a property in our local high street for which an amount of 200,000 pounds has to be given to purchase the leasehold of the property for ten years in addition to a monthly rent of 15,000 pounds. The following office equipments are necessary at