0000015529Proposal for Setting up Shuguang Printer Consumables Store

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0000015529Proposal for Setting up Shuguang Printer Consumables Store Powered By Docstoc
					Proposal for Setting up Shuguang Printer Consumables Store


                 Prepared For Chenglie Su

               Manager, Business Department

  Shuguang Printer consumables Limited Company, Gangding

      Xiangtian Technology Limited Company, Gangding

                    Prepared by Jun Yao

                        Founder of

             Shuguang Printer consumables Store




                 Tel: 020 - 36913335

                 Fax: 020 - 36913330

                 E-mail: yaojun29@126. com

                 Date: 27 Jun. 2011




                             1
                                         Contents
Process Report
1.    Analysis of Business------------------------------------------------------------------1
2.    Customer Profiles---------------------------------------------------------------------3
3.    Focus Groups--------------------------------------------------------------------------4
4.    SWOT Analysis-----------------------------------------------------------------------6
5.    Project Objective----------------------------------------------------------------------7
6.    Action Plan-----------------------------------------------------------------------------8
7.    Activity Chart--------------------------------------------------------------------------9
8.    Cost Breakdown----------------------------------------------------------------------10
9.    Risk Analysis and Management Plan----------------------------------------------12
10.   Project Framework-------------------------------------------------------------------14




                                                2
                                Process Report 1
Analysis of Business

Market Analysis
    Along with the development and popularity of office automation products such as
computers, printers and other electrical products, the development of relevant
consumables trading is shooting up. Consequently, the share of Printer consumables
trading is snowballing in recent years.
     At present, the Chinese-made products have a large share in the global market.
For example, Ribbon, inkjet cartridge, laser black powder-in-one cartridge has takes
90%, 20% and 11% share of the global market. As the heart of the Pearl River Delta,
Zhuhai is the super-sized production base of printer consumables. Many mainly
printer consumables production base has gradually transferred to China. According to
this situation, China will become the largest production base of printers and its
consumables. Also, keyboards, PC mice, PC cameras, earphones and sorts of that are
made mainly in Pearl River Delta. Gangding in Guangzhou, with a short distance to
PRD, has become a largest wholesale market of IT equipment and printer
consumables in China. Also Gangding has its various logistic routines to all parts of
the country. It’ becomes a feature that there’s varies of Printer consumables and high
efficiency logistic transportation in Gangding.

Business Analysis
     Shuguang Printer consumables Store aims at those who are consumers
including large and medium-sized enterprise, individual operator or user. It will be set
up in the newly-built housing estates in the busy downtowns of Gangding. In
Gangding, it will be situated in Ningguan Housing Estate, near the UT-Mart
Supermarket.
     Shuguang Printer consumables Store is to be registered in Guangzhou Industrial
and Commercial Management Bureau with a capital of RMB 600,000 Yuan, provided
by two shareholders.
    Shuguang Printer consumables Store is intended to 20 square meters in Gangding.

                                           3
Store will be decorated to make sure each one is spacious enough to have 8 shelves
for commodities.
     All things considered, we believe that running Shuguang Printer consumables
Store in Gangding has a good prospect.

Financial Situation
    Management Aim: monthly turnover is up to RMB 150,000, and net profit is
RMB 40,000.
    Consumables and equipment: turnover is up to RMB 100,000, and net profit is
RMB 20,000.
    Websites and its services: turnover is up to RMB 50,000, and net profit is RMB
20,000.
    We will do our best to offer our customers excellent training service all the time
to build up our brand and shape a fine image of the store. Hopefully, the number of
customers will be increasing by time.




                                         4
                                Process Report 2
Customers Profile

    Large and medium-sized enterprise: These enterprises have standard operation
process and a quality demand in high efficiency office automatic operation, so they
need greatly use a great deal of printer consumables.
    Individual operators.These enterprises are always with the 50 employees, they
have also demand in using some print consumables.
    Individual users.These consumer groups need consumables including mainly
keyboards, PC mice and earphones, they has a favorable demand to the products with
new-looking appearance or shape and individual feature.




                                           5
                                   Process Report 3
Focus Group
     In order to get a closer and clearer idea of the viewpoints of customers,6 groups
were invited to participate in this survey. They were:
     ·10 businessman
     ·10 students
     ·10 individual operators
     All the subjects were from Gangding in Guangzhou. Group them would be
desirable, for each of these categories of customers might have different viewpoint,
expectation and needs.
     A customer survey was carried out by means of semi-structured interviews.
     Therefore, a list of basic questions was prepared, but the discussion was free and
opened to some extent.
     Questions
     ·Do you usually use printer consumables?
     ·Which categories of printer consumables do you usually use?
     ·What was the quantity of each category of printer consumables you used per
month during the last 12 months?
     ·Which brands of printer consumables do usually use?
     ·How about the ratio of performance to price of these printer consumables?
     ·Which brands of these printer consumables are your most favorite of?
     ·What prices would you like to get these printer consumables?
     Respond to the questions were positive and constructive for the project. In the
following two lists of complaint and suggestions are summarized.
     Complaints
     ·The paper advance mechanism of printer failed occasionally.
     ·The prices of selenium drums are too high.
     ·The quality of domestic brand printer is worse than overseas brand ones.
     Suggestions


                                           6
     ·We should purchase those printers with little failure in its paper advance
mechanism.
     ·We should purchase more those overseas brands of printers with lower prices
until those domestic brands of printers has a better quality.




                                            7
                                Process Report 4
SWOT Analysis
Strengths
    Cooperator is a wholesaler with 5-year consumables wholesale experience in
Guangzhou. We can establish good business relationship with the Supplies.
    Store is in Tianhe District and nearby the store of cooperator, so we can get
convenient service from cooperator as soon as possible.
    We have good personal connections and can find professional service
workers here.
     We are familiar with in industrial cluster here and know what kinds of
commodities or services our consumers want to get.


Weakness
    We have no existing consumers since we are new entrepreneur.
Opportunity
    There is little electronic commerce in small enterprise, so we have excellent
opportunities here to provide services of electronic commerce for these
enterprises.
    There are only service of simply service for printer and its peripheral
equipments here and couldn’t meet expectations or demands of employer of small
enterprise.


Threats
    Network enterprise such as B2C and C2C websites, Taobao and 360buy.They
have advantages that are with more spacious marketing channels and a lower cost
or selling price.




                                        8
                                Process Report 5
Deciding the Project Objectives
     We plan to set up Shuguang Printer consumables Store within two months. The
business scope of Shuguang Printer consumables Store is to varies brands of printer
consumables and professional after-sale services. It will be opened in Tianhe District.
     We will need 600,000 Yuan in the project. There are two shareholders each of
whom will provide 300,000 Yuan. We will spend 120,000 Yuan in buying 3 to 5
computers and varies printers for each store. RMB 60,000 Yuan for advertisement.
RMB 120,000 Yuan as the first year’s rental. And we will need a certain amount of
capital as all kind of expense too.
     The project forecast of that the turnover can reach 1,800,000 Yuan and profit can
reach 480,000 Yuan per year. In the first year these two figures will rise by 30% and
18% separately and will hopefully increase step in the coming years.
     The mission of Shuguang Printer consumables Store is to build a bridge between
wholesaler and consumers and it will satisfy the consumers’ needs for good quality
commodities and services. Our efforts will achieve the prospective goal and get high
commence from consumers as well.




                                          9
                                 Process Report 6
Title:Action Plan
It will take about more than two months to set up Shuguang Printer consumables
Store.
By the end of Week one (1 Jul2011~7 Jul2011)
1. Identify the locations of the premises.
2. Negotiate the rentals and sign the contracts with the landlord.
By the end of Week two (8 Jul 2011~14 Jul 2011)
3. Ask a decoration company to design the layout style.
4. Register in Guangzhou Bureau of Administration Of Industry and Commerce.
By the end of Week three (15 Jul 2011~21 Jul 2011)
5. Sign contracts with the decoration company.
6. Register in Guangzhou Bureau of Administration of Taxation.
By the end of Week Four (22 Jul 2011~28 Jul 2011)
7. Purchase 3 to 5 computers, varies of printers and its consumables etc.
By the end of Week Five (29 Jul 2011~5 Aug, 2011)
8. Contact an advertisement agency to carry out the foregoing propaganda through
various means.
By the end of Week Six (6 Aug, 2011~12 Aug, 2011)
9. Inspect and accept the decoration and all the equipment.
By the end of Week Seven (13 Aug, 2011~19 Aug, 2011)
10. Employ respectively four employees.
By the end of Week Eight (20 Aug, 2011~26 Aug, 2011)
11. Get everything ready for opening business.
12. Invite the media to take part in the opening ceremony to be held next week.
13. Check the overall procedure and confirm the well-balanced flow of the capital.
By the end of Week Nine (27 Aug, 2011~5 Sep 2011)
14. Hold the opening ceremony.
15. Start the business.


                                             10
                                            Process Report 7

Activtiy Chart

      WEEK1                                  WEEK2                           WEEK3


   Identify           the             Resister              in           Resister             in
   locations, negotiate               Guangzhou Bureau                   Guangzhou Bureau
   the rental and sign                of     Administration              of Administration of
   the contracts                      for             Industry           Taxation
                                      Commence

   Negotiate the rentals              Ask a Decoration                   Sign contracts with
   and        sign    the             Company to design                  Decoration
   contracts with the                 the layouts                        Company and begin
   landlord.                                                             decorating




      WEEK4                                 WEEK5                            WEEK6

                            Contact    an     advertisement
                            agency    to    carry    out   the
                            foregoing propaganda through
                            various means.



                                                                         Inspect and accept
                                                                         the decoration and
     Decoration process continues
                                                                         all the equipment.




      WEEK7                                 WEEK8                            WEEK9


                                      Get           everything           Hold the opening
                                      ready for opening                  ceremony.
                                      business.




   Employ            four             Invite the media to take part in the opening
   employees                          ceremony to be held next week.
                                             Process Report 8



                                                           11
Cost Breakdown
Rental cost: Premises would cost RMB 120,000 Yuan to rent per year.
Decorating: The purchase of decorating materials and the labor costs would reach
86,500 Yuan.
                 Labor costs                                         12,000
                 Ceramic tile, cement & putty                        40,000
                 Glue & Tools                                        4,500
                 Water & electricity facilities                      9,000
                 Lighting                                             5,000
                 Timber                                              5,000
                 Paint                                                5,500
                 Glass commodities shelves                           5,500
Equipment: The cost of equipment including 3 to 5 computers in each store, varies of
printers and its consumables and appliances would be 142,000 Yuan.
                 Computers & printers & printer consumables           120,000
                 Desk & Chairs                                          2,000
                 Duplication machine & Fax                             5,000
                 Air conditioners                                      5,000
                 Lighting                                              5,000
                 Commodities shelves                                   5,000
Budget: The annual operating budget would be 165,000 Yuan
                 Advertisement                                       30,000
                 Wages                                               12,000
                 Utilities                                           36,000
                 Equipment Maintenance                                7,000
                 Equipment depreciation                              12,000
                 Tax                                                 18,000
                 Contingency Fund                                 50,000
TOTAL COST OF PROJECT
            Initial costs           Decorating                       86,500

                                           12
                            Equipment                               142,000
  SUB-TOTAL                                                         228,500
 -----------------------------------------------------------------------------
Annual recurrent costs         Rental                              120,000
                               Operating budget                    165,000
SUB-TOTAL                                                          285,000
 -----------------------------------------------------------------------------
TOTAL COST                                                          513,500




                                      13
                                Process Report 9

Risk Analysis and Management Plan
      Before putting the project into practice, we must consider how to deal with some
risk that may affect the successful achievement of the project. These risks can be
divided into two categories.
● People-related
     The management lacks experience in running a Printer consumables store.
     The shareholders might withdraw the shares from the Printer consumables store
halfway.
     The neighborhood might complain about the noises from decoration.
     The new employees may not be skillful and can’t cooperate harmoniously at the
beginning.
● Time-related
     We may not get all the necessary official certificates or permissions on schedule,
which will cause the opening ceremony to postpone.
     The computers and commodities may not be delivered in time.
     The decorating work may not be completed on time.
      Since it’s impossible to eradicate all these risks. Controlling and managing them
is rather necessary. Thus, we have draw up some measures as follows in case the risks
happen.
● The new employees recruited should have professional skills and can provide
high quality service.
● Organize more activities in the employees-training courses to improve their team
spirit.
●     Contact more good employees candidates as substitutes in case they aren’t
capable.
● Carry out market research among target customers to improve the popularity of
our products.


                                           14
● Supervise the decorating procedure and delivery frequently.
● Arrange the decorating work rationally; try not to disturb the neighbors out of
working hours.
● Set aside a certain percentage of the total budget as contingency allowance to
cope with unexpected problems.


     After the risk analysis, we believe that three more items should be added to the
total costs:
               ●   Market research                     3,000 Yuan per year
               ●   Public relations                  10,000 Yuan per year
               ●   Contingency allowance           2% of the annual profit




                                         15
                                         Process Report 10

Project Framework


                                         OBJECTIVELY
              NARRATIVE                               SOURCES OF ASSUMPTIONS
                                         VERIFIABLE
              SUMMARY                                INFORMATION  AND RISKS
                                          INDICAIORS
              To       offer             Customer opinions               Option survey 1 year        That the market and
              computer                                                   after            project    business analyses are
Goal or AIM
              Supplies                                                   implementation              objective                 and
                                                                                                     constructive
              1.      The     annual     Revenue and profit              Shuguang        financial   That          Guangzhou
              revenue and profit         figures.                        records                     Industrial                and
              will be 1,440,000                                          Shuguang records            Commercial
              Yuan and 360,000           Increasing number of                                        Management             Bureau
              Yuan in the first          customers                 and                               will     grant     us     the
              year.                      influence in the same                                       permission of running

 PRUPOSE      2. Profit will be          line.                                                       a Printer consumables

    or        raised     by      18%                                                                 store.

OBJECTIVES    within 2 years.                                                                        That everything will
              3. To build up                                                                         go as anticipated and
              Shuguang brand ,                                                                       planned.
              shape a fine image
              and           enhance
              competiveness in
              Tianhe          District
              within 2 years

              1.      Setting      up    1.       Existence of 2         Observation                 1.     That      the     new
              Printer                    sites.                          Shuguang records            employees                  is
              consumables store          2.       Regular advice         Minutes    of      focus    competent                 and
 OUTPUTS      premises.                  on         quality         of   group meetings              cooperated.
              2.    A functioning        commodities.                                                2. That the advices
              focus     group      of                                                                and suggestions are
              customs.                                                                               correct and practical.




                                                              16
             1.            Choose       1.               Rental     Project                1. That there are no
             prospective        sites   agreements signed.          implementation diary   interruptions             and
             and          negotiate     2.    Design given to                              delays          to        the
             rental               of    contractors.                                       decorating of store and
             premises.                  3. Relevant official                               delivers of the goods.
             2.    Design layout        documents obtained.                                2. That the contractor
             3.       Resister in       4.    Oder placed                                  uses      good        quality
             Guangzhou                  5.          Permission                             materials.
             Industrial           &     obtained.                                          3. That the preparation
             Commercial                 6.    Contact signed.                              work is proceeding as
             Management                 7.    Job offers made                              scheduled        and      the
             Bureau             and     and contracts signed.                              capital flow is well
             Guangzhou                  8.    Goods received                               balanced.
             Bureau               of    and ready for use.
             Administration of          9.          TV        and
             Taxation.                  newspaper reports.
             4.       Apply      for    10.      Appointments
             permission           of    accepted.
             running               a
ACTIVITIES   computer
             suppliers store.
             5.      Contact      an
             advertisement        to
             publicize the store.
             6.       Recruit the
             employees          and
             begin running.
             7. Get equipment
             and          furniture
             delivered          and
             installed.
             8. Invite media to
             attend        opening
             ceremony.
             9.           Holding
             opening ceremony.
             10.      Setting     up
             focus group and
             hold      consultants
             meeting.
             Human                      Employment contract         Payrolls               1.     That          qualified
             2 employees per                                                               employees                 are
 INPUTS      store                      Equipment in use            Invoices               recruited.
             Equipment                                                                     2.       That         ordered


                                                         17
3 to 5 computers          Business partnership   Bank account   equipment is suitable
Printers     and    its   agreement.                            for   purposes      and
consumables etc                                                 delivered
Financial                                                       and installed on time.
Total        513,500                                            3. That shareholders
Yuan       investment                                           wire their share of
from               two                                          investment once the
shareholders, each                                              project is approved.
providing 256,750
Yuan.




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