BUSINESS PLAN FRED FENG |SEAN RUTHERFORD. What we do? Cable Tag Equipment Tag Shrink Tags Business...
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Transcript of BUSINESS PLAN FRED FENG |SEAN RUTHERFORD. What we do? Cable Tag Equipment Tag Shrink Tags Business...
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BUSINESS PLANFRED FENG |SEAN
RUTHERFORD
INDUSTRY’S FIRST ENGRAVING CHOICE
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What we do?
Cable Tag Equipment Tag Shrink Tags
Business Overview Operations Marketing Finance Conclusion
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Our Products in Action
Business Overview Operations Marketing Finance Conclusion
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Why this Business?
Fast turn around times are expected
Main supplier is located in Edmonton
We want to become Saskatchewan’s main supplier of lamacoids
Business Overview Operations Marketing Finance Conclusion
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Location
Business Overview Operations Marketing Finance Conclusion
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Floor Plan
Business Overview Operations Marketing Finance Conclusion
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Operations Process
Bulk Materials• Engraving
stock Sheets
• Heat shrink Tubing
Process• Engrave/
Print• Mounting
holes• Add
Adhesive
Package for Customer• Needs to
be easy for customer to find tags
Business Overview Operations Marketing Finance Conclusion
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Target Market
Companies such as:
• Intracon Power• Chemco• Aecom Industrial• Laird Electric• Westcana Electric• Magna Electric• Lockerbie & Hole• Graham Industrial
Business Overview Operations Marketing Finance Conclusion
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Market Size
Total Market Size: $600,000
Business Overview Operations Marketing Finance Conclusion
Agrium Vault5%
Sask Power: Boundary Dam
ICCS5%
PCS Expansions27% CCRL Refinery
Upgrade7%
Mosaic Ex-pansions
12%
K+S Potash: Legacy Project
13%BHP Billiton: Jansen Mine27%
Cameco: Cigar Lake Mine Up-
grade4%
Areva Resources: Mine Upgrade
1%
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Pricing
We will match our lowest competitors prices
Equipment Tags & Cable Tags: $50 per sq.ft Shrink Tags: $0.30 per tag
Margin: 80%
Mark-up: 400%
Business Overview Operations Marketing Finance Conclusion
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Promotion Strategy
Business Overview Operations Marketing Finance Conclusion
~20 large customers
Establishing relationships will be critical
We will not proceed unless we obtain 45% of market share
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Positioning Map
Business Overview Operations Marketing Finance Conclusion
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Finance -profitability
2013 2014 2015 2016 2017 $-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
$19,678
$50,049
$87,612
$134,265
$178,103
Net Income
Net Income
Business Overview Operations Marketing Finance Conclusion
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Financing Plan
2013
Debt financing
$50,000 50%
Equity Financing
$50,000 50%
Total $100,000 100%
Business Overview Operations Marketing Finance Conclusion
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NPV & IRR
Net Present Value $330,988
IRR 108.8%
Equity Investment in 2013
$50,000
Average Owner Compensation
2013 2014 2015 2016 2017
$50,000
$51,250 $72,553 $100,703 $123,949
Business Overview Operations Marketing Finance Conclusion
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Feasibility Analysis and Contingency Plans
2013 2014 2015 2016 2017
45%50%
55%60%
65%
42%40% 38%
34% 32%
S&F Target Market Share Breakeven Market Share
Business Overview Operations Marketing Finance Conclusion
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Conclusion
If we obtain 45% of market share
Proceed
Business Overview Operations Marketing Finance Conclusion
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Questions?
INDUSTRY’S FIRST ENGRAVING CHOICE