Business Plan
Specimen Business Plan
MARKET RESEARCHER
MARKET RESEARCHER
SPECIMEN BUSINESS PLAN
CONTENTS
INTRODUCTION
THE BUSINESS
MARKET INFORMATION
LOCATION
PEOPLE
CAPITAL EXPENDITURE
FINANCE
FINANCIAL APPENDICES
PROJECTED PROFIT & LOSS ACCOUNT
MONTHLY CASH FLOW PROJECTION
PROJECTED BALANCE SHEET
GENERAL APPENDICES
NOT INCLUDED GIVEN THEIR SPECIFIC NATURE
MARKET RESEARCHER
BUSINESS PLAN
1
INTRODUCTION
My name is Jennifer Adams and I reside at 1 Main Street, Anytown.
I have been employed for the past five years as a marketing assistant with a local company, and with
the experience that I have gained I believe that this is the right time to realise my ambition to set up
my own business as a Market Researcher. I will operate my business from home and will target the
SME market (small and medium sized enterprises). My key objective is to offer my clients a quality
service, and build a successful business that will give me financial security in the future.
2
I graduated with a BA in marketing six years ago and now need a new challenge.
INTRODUCTION
THE BUSINESS
My services will mainly include customer satisfaction surveys, personnel surveys, marketing
consultancy etc. Initially I will work in the business on my own, but if successful I will consider
employing a young assistant.
The business will be formed as a sole trader called Instant Research.
There are advantages and disadvantages in forming a business as a sole trader, partnership or private
limited company. Since the choice can be dependent on individual circumstances, you should contact
your business adviser to discuss the issue.
3
MARKET INFORMATION
3.1
Products and Services
I will charge for my services on an hourly rate and will offer the following range of services:-
3.2
Customer satisfaction surveys, personnel and staff surveys for SMEs
Marketing consultancy services for SMEs
Market
My target market will be SMEs in the Anytown locality. The Business Opportunities Profile
that is included in the General Appendices points out that SMEs are unable to afford the cost
of in-house market research or marketing teams and are looking for businesses like mine to
assist them with customer satisfaction surveys, and the like. The sector is a growth one as
more and more companies including small companies place an increasing sound market
intelligence. From my previous experience I am confident that I can gain work in my target
market.
3.3
Competition
My competition will come from the following main sources:
-
Other local freelance market researchers
Local marketing consultants
The large national market researchers such as MORI
PR and publicity companies, which often take on marketing assignments
I have thoroughly researched my local competition and believe that the high standards that I
will set in my work will allow me to compete with them. I will set my prices to be
competitive but so as to allow me sufficient profit margin to build a viable business. The
larger organisations are less of a threat to me, as they are seeking larger contracts, while I will
be focusing on the SME market.
3.4
Marketing Activities
I will advertise in the Anytown Post, which has a good circulation among the business
community in the area. My aim will be to establish a regular clientele and benefit from word
of mouth recommendations. I will also introduce the following promotional activities to
market my services:
-
3.5
Mail shots and press releases to SMEs outlining my services
Networking through Anytown Chamber of Commerce etc
A regularly updated portfolio featuring previous work
Prices and Margins
I have carried out extensive checks on the hourly rates being charged by my main competitors
and have based my prices on being in line with them, as my research has confirmed that
service delivery is held to be as important as price. The attached Financial Appendices show
that this pricing structure will allow me to make sufficient profit to build a viable business.
Contracts will be priced based on my hourly rate of £25. There are no direct costs associated
with the business.
3.6
Sales Plan
First year sales assume a steady growth in the customer base, which is anticipated to continue
during years two and three as illustrated. Growth is assumed at 10% per annum, which I
believe is attainable as my service becomes known to more customers.
YEAR 1
£
30,000
YEAR 2
£
33,000
YEAR 3
£
36,300
I estimate that I will work 40 hours per week and that 25% of my time will be given over to
travelling, preparing quotations and carrying out routine administration etc. My conservative
turnover forecasts for year 1 are therefore based on generating 30 chargeable hours per week
over 40 weeks each year. My turnover forecasts are shown in the Financial Appendices.
6
CAPITAL EXPENDITURE
The estimated capital expenditure required, is summarised in the following table. Full details are
contained in the General Appendices.
Car
£
7,000
Computer
1,000
8,000
I already own the car which is fully paid but require a new computer.
7
FINANCE
7.1
Viability
The forecast trading results for the first 3 years of trading are as follows with the details being
shown in the Financial Appendices attached:PROJECTED PROFIT AND LOSS ACCOUNT
YEAR 1
YEAR 2
YEAR 3
£
£
£
30,000
33,000
36,300
Sales
Less: Direct Costs
0
0
0
30,000
33,000
36,300
Gross Profit
Less: Overheads
8,020
8,480
8,980
Add: Grants
0
0
0
Net Profit/Loss
21,980
24,520
27,320
7.2
Direct Costs
There are no direct costs associated with the business.
7.3
Overheads
Insurance
A budget of £600 has been allowed for business insurance, spread over equal monthly
payments.
Use of House
A provision of £450 has been accrued at the year-end for the use of a room in my house as an
office.
Postage & Stationery
A budget of £170 has been allowed in the first year for postage and stationery costs.
Advertising & Publicity
A budget of £800 has been allowed in the first year for advertising as described in the
marketing section of this plan.
Telephones
An amount of £50 per month has been provided for telephones including landline and mobile.
Motor Expenses
Travel and car use will be essential and the following amounts have been provided in the first
year:-
Road Fund Licence
Insurance
Servicing
Fuel
£
165
495
400
1,440
2,500
Travel & Subsistence
An allowance of £300 has been made to cover travel and subsistence costs.
Professional Fees
I will maintain my own bookkeeping records but have accrued £400 for my accountant to
prepare my self-assessment returns at the end of the year.
Other Expenditure
An amount of £120 has been provided in the first year for sundry expenses.
Depreciation
The following depreciation rates have been charged in the forecasts on a straight-line basis.
Motor Car
Computer
25%
33%
On this basis depreciation charged in the accounts amounts to £2,080.
7.4
Cash Flow
A Monthly Cash Flow Forecast has been prepared for the first year of trading to calculate the
funding requirement for the business. The forecast is based on the following assumptions:Credit Allowed to Customers
One month’s credit will be allowed to customers and will be strictly enforced.
Payments to Suppliers
No credit is assumed from any suppliers and all expense items are assumed paid as they arise.
Drawings
My drawings will be dependent on my business trading in line with forecasts. In the first year
I am targeting £1,300 per month.
7.5
Funding
The Monthly Cash Flow Forecast indicates that allowing for a small contingency £11,000 will
be required to fund my business. I intend to fund the business from my personal resources
and will introduce £4,000 in cash prior to commencing to trade and my car which is valued at
£7,000.
“It is possible that this business may qualify for start-up funding from local or national sources. These
sources of funds are often at the discretion of the various funding bodies, and have not therefore been
included in this Specimen Business Plan. You should consult your business adviser about how to
apply for relevant funds”.
-----000------
PROJECTED PROFIT & LOSS ACCOUNT
MARKET RESEARCHER
YEAR 1
OVERHEADS
Use of House & Insurances
Postage & Stationery
Advertising, Publicity & Entertainment
Telephones
Travel & Motor Expenses
Professional Fees
Other Expenditure
Depreciation
£
£
33000
£
£
36300
100.00%
30000
100.00%
33000
100.00%
36300
1050
170
800
600
2800
400
120
2080
Total Overheads
TRADING PROFIT/(LOSS)
GRANTS
Grants - Others/ Other income
Grants - BSuA
Total Grants / Other Income
NET PROFIT/(LOSS) BEFORE DRAWINGS & TAX
Personal Drawings
YEAR 3
£
30000
SALES
GROSS PROFIT
YEAR 2
£
1100
200
850
650
3000
450
150
2080
8020
21980
0
0
1200
220
900
700
3200
500
180
2080
8480
24520
0
0
8980
27320
0
0
0
0
0
21980
24520
27320
15704
17000
20000
MONTHLY CASH FLOW PROJECTION
MARKET RESEARCHER
INCOME
Sales Income (Turnover)
Owners Investment
TOTAL INCOME
EXPENDITURE
Insurances
Postage & Stationery
Advertising, Publicity & Entertainment
Telephones
Motor Expenses
Travel & Subsistence
Capital Expenditure
Personal Drawings
Class 2 NIC
Other Expenditure
TOTAL EXPENDITURE
SURPLUS/DEFICIT
OPENING BANK BALANCE
SURPLUS/DEFICIT FOR MONTH
CLOSING BANK BALANCE
PreStrt
0
11000
11000
Mth 1
0
0
0
Mth 2
2000
0
2000
Mth 3
2000
0
2000
Mth 4
2600
0
2600
Mth 5
2600
0
2600
Mth 6
2600
0
2600
Mth 7
2600
0
2600
Mth 8
2600
0
2600
Mth 9
2600
0
2600
Mth 10
2600
0
2600
Mth 11
2600
0
2600
Mth 12
2600
0
2600
TOTAL
27400
11000
38400
0
0
0
0
0
0
8000
50
60
250
50
322
25
0
1300
8
10
2075
-2075
3000
-2075
925
50
10
50
50
162
25
0
1300
8
10
1665
335
925
335
1261
50
10
50
50
262
25
0
1300
10
10
1767
233
1261
233
1494
50
10
50
50
162
25
0
1300
8
10
1665
935
1494
935
2429
50
10
50
50
162
25
0
1300
8
10
1665
935
2429
935
3365
50
10
50
50
262
25
0
1300
10
10
1767
833
3365
833
4198
50
10
50
50
162
25
0
1300
8
10
1665
935
4198
935
5133
50
10
50
50
162
25
0
1300
8
10
1665
935
5133
935
6069
50
10
50
50
262
25
0
1300
10
10
1767
833
6069
833
6902
50
10
50
50
162
25
0
1300
8
10
1665
935
6902
935
7837
50
10
50
50
162
25
0
1300
8
10
1665
935
7837
935
8773
50
10
50
50
262
25
0
1300
10
10
1767
833
8773
833
9606
600
170
800
600
2500
300
8000
15600
104
120
28794
9606
0
9606
9606
0
8000
3000
3000
3000
PROJECTED BALANCE SHEET
MARKET RESEARCHER
FIXED ASSETS
Cost
Cumulative Depreciation
NET FIXED ASSETS
CURRENT ASSETS
Trade Debtors
Prepayments
Cash on Hand/In Bank
£
£
£
8000
-2080
5920
2600
0
9606
12206
CURRENT LIABILITIES
Trade Creditors
Accruals
Taxation
VAT
PAYE/NI
Bank Overdraft
0
850
4895
0
0
0
5745
NET CURRENT ASSETS/LIABILITIES
LOANS
PSYBT
Bank
Other
6461
0
0
0
0
TOTAL NET ASSETS
12381
CAPITAL ACCOUNT
Owners Investment
Profit for Period
£
11000
21980
15704
-4895
12381
Personal Drawings
Taxation