business plan

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Business PlanFor EcoBox

Name :EcoBox Pte LtdCity : 3 Bukit Timah Ave 5 Singapore 123456Telephone : 65144705Fax : 68633048E-Mail : [email protected]

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Table of Contents

I. Table of Contents.....................................................................2

II. Executive Summary.................................................................3

III. General Company Description.............................................4

IV. Management and Organization............................................6

V. Products and Services.............................................................8

VI. Marketing Plan........................................................................12

VII.Strategy and Implementation..............................................13

VIII. Financing...............................................................................14

IX. Startup Expenses and Capitalization.................................14

X. Financial Plan..........................................................................15

XI. Expected Forecast.................................................................16

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II. Executive Summary

EcoBox Pte Ltd is a start-up company, located in Singapore, which is totally new business in Singapore as there is no other provider of EcoBoxes currently operating in the country. However , we believe that there is potential for such a business in Singapore, since a lot of groups of individuals moves to houses on almost at a daily basis and there a difficulties that these households face in finding boxes to pack during the move.

The company will be established in October 2011, by the two founders of the company ( Mr. Lourdes Ted Sherman and Ms. Santhi Subas). EcoBox Pte Ltd have developed its strategic goals in line with its vision and mission as well as considering its core values. The company will be employing qualified employees for its operation and utilize quality equipment, high grade EcoBoxes and moving techniques that best meet the client’s interest.

The management team will initially consisting of two members and we will be employing four staffs out the daily operation of the company. As the business prospers, we will be hiring additional employees to accommodate increasing demand of our clients. In order to understand our internal strengths, weaknesses, opportunities and the threats for the company we have developed a SWOT analysis which indicates our main strength is that we will tap on the opportunities of being the first supplier of EcoBoxes.

The services which will be provided by EcoBox Pte Ltd include delivering eco-friendly, reusable plastic boxes and other moving supplies. After packing and move (we can refer reliable movers) we pickup everything from your new home when the client has finished unpacking.

We have segmented our market and targeted the residential and commercial property in Singapore as our main target market. The recent trends in the market competition that the company will face in the market have also been addressed in this business plan. Finally, we also discussed the strategies and implementation of these strategies along with the financial plan in this business plan.

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Year 2011/12 Year 2012/13 Year 2013/14$0

$10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000

Chart Title

Profit

Profit Forecast

III. General Company Description

Moving is rated as one of life's most stressful events. EcoBox was created to fill a need for a convenient, cost effective and environmentally friendly alternative to using cardboard boxes for moving. Cardboard boxes are not an ideal solution for moving your home or business. They add unneeded hassle and expense to your move. Our purpose is to make your move as easy and affordable as possible while minimizing the impact on the environment. We provide eco-friendly reusable moving boxes and other moving supplies in Singapore

Cardboard and paper waste makes up an estimated 18% to 26% of landfill material. When you combine this with the negative impact of logging to produce the cardboard in the first place, the environmental impact of cardboard is significant. Doing something good for the environment doesn't have to cost more or make things more difficult. EcoBox makes moving Easier on You, Easier on the Earth and Easier on your wallet.

Mission Statement

Our Mission is to minimize the stress of moving on our customers and the Earth. Our products

are more convenient and more environmentally friendly than traditional alternatives. Not only do

we provide our customers with environmentally friendly moving supplies, we also make a

conscious effort to minimize our carbon footprint

Company Goals and Objectives:

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Long term objectives

To sustain as the market leader providing EcoBox services in Singapore

Providing and sustaining high quality EcoBox services

Achieving and maintaining 100% safety records in delivering the service

Employing trained and motivated personnel

Short term objective

Achieving a brand awareness level of 10% of all consumer or businesses in Singapore within 6 months of the business

Establishing a customer base by attaining at least 100 customers within the first year

Increasing sales by 20% per year

Utilizing quality equipment to provide services

Establishing good relationships with key suppliers and moving companies which the EcoBox have contracts with.

Receiving at least 80% positive customer feedback regarding the service yearly

Recruiting only skilled and qualified personnel and conducting training programs annually

Business Philosophy

At EcoBox we believe that we can be a successful business AND do what is right for the environment. We believe that the best way to minimize human impact on the environment is to create sustainable solutions that are cost effective and convenient too

Vision

Providing our customers with environmentally friendly moving supplies, in a conscious effort to minimize our carbon footprint for future generations.

Core Values

Quality

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At EcoBoxes Pte Ltd, will be hiring experiencing and highly trained drivers and assistance who have capability to provide excellent services with the use of modern high technology equipment.

Safe and Secure Service

Our top priority will be providing safe and secure EcoBoxes and other moving suppliers to our clients

Teamwork

Building effective teams of different expertise human capital within the company is vital for providing timely and reliable EcoBox services.

Reliability

Timely and consistent delivery, loading and unloading EcoBox services are critical for achieving the trust of our clients.

VI. Management Team

The management team in EcoBox es is based on respect for each of our fellow employees, respect for every customer and individual responsibility. We will only hire those who demonstrate the qualities necessary for our dynamic working environment.

The founder Lourdes Sherman has experience in the management field and holds a Masters degree in Business administration. He is an oriented person who is committed to his work. He has been employed as a general manager in the marketing industry for 5 years and further has worked another 5 years in the management field. The key responsibilities of Mr. Sherman will include over looking and managing the company’s operation, developing and implementing strategies to boost profits , making key decisions of the business and handling the managements and control of the company’s financials. He will also be responsible to undertake recruiting and hiring and managing the moving teams and will be interacting with clients and employees.

Ms Santhi Subas is a Management Accountant with a degree in Accounting and finance. She has 7 years’ experience in working as Accounts Manager in a private company. Ms. Santhiwill be handling sales and accounts activities of EcoBox Pte Ltd. The main responsibilities that will carrying out are managing sales transactions, cost containments and coordinate the budget and full preparation on the management accounts. She will also be responsible with dealing general, customer enquiries via telephone and email and responsible for the day –to-day running of the office daily administration paperwork and warehouse storage management.

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Organisation Chart

S.W.O.T. Analysis

This is a summary of the businesses strengths, weaknesses, opportunities or threats of EcoBox Pte Ltd.

Strengths Weaknesses

Excellent quality product (Adds to reputation)

Good management skills (Better operation of business)

Good ability to extract information ( Can control market)

100% market share

First company introducing EcoBox Services

New player(Credibility problem may affect initial sales)

Lack of systems ( Company needs to develop systemized operational & sales techniques or sacrifice profits)

Lack of experience drivers and delivery man

Opportunities Threats

TBA

Lorry Driver

TBA

Lorry Assistant

TBA

Lorry Assistant

TBA

Lorry Driver

Mr. Lourdes Ted Sherman

Owner/Manager

Ms. Santhi Subas

Accounts Manager

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Add on products (A potentially enormous market for varies types of EcoBoxes)

Growing market segments

Having contracts with Mover Companies to lobby Ecobox products

Expansion into Malaysia and Indonesia

Entering into Storage Units.

Increasing supplier prices (Resulting in reduced profitability)

Declining size of segment ( Need to focus on growing segments to spread the company’s portfolio)

New entrants may enter market.

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Providing Eco-Friendly Plastic Moving Boxes and Moving Supplies

Moving is a stressful and busy time. We offer a simple moving supply service that makes your

move easier. Our three step process takes the stress out of moving. We deliver eco-friendly,

reusable plastic boxes and other moving supplies. The customer pack and move (we can refer

reliable movers) and we pickup everything from your new home when they are finished.

Convenient, Affordable, and Green!

1. We Drop Off Your EcoBox Moving Boxes

No need to drive to pick up expensive cardboard moving boxes. EcoBoxes are dropped off where

you want them by our friendly diesel trucks.

2. You Pack Your Stuff in EcoBox Moving Boxes and Move to Your New Pad

Our eco-friendly plastic moving boxes make packing quicker and easier.

o No more building and taping cardboard moving boxes. EcoBoxes are roomy and

don’t collapse.

o EcoBoxes are much easier to handle than cardboard. They stack perfectly, protect

your valuables, and are waterproof and have ergonomic handles.

o FrogBox also offers dollies to make your move even easier.

V. Products and Services

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3. We Pick Up Your EcoBox Moving Boxes

Once you are moved in and unpacked, one of our EcoBox trucks picks up the plastic moving

boxes at your new place. This means you can spend your time enjoying your new house, not

breaking down cardboard boxes and figuring out what to do with them.

Our 'Bundles' are the most cost-effective way of renting EcoBoxes. They combine our products

into standard house sizes (one to four bedrooms) which allows you to estimate the number of

EcoBox moving boxes that will provide for our clients need.

EcoBox pricing depends on how many boxes you need and how long you'd like them for. Our

Bundles offer the best value. Find the bundle that best fits your needs, and then supplement with

extra products if required. All orders have a flat-rate delivery charge that includes delivery and

pickup —starting from $30—which is dependent on your location within our service area. This

is not included in the prices listed below. If you need more than 70 boxes please call us for

volume discounts.

Pricing and Product Information

1 Bedroom Bundle

What you get 1 Week 2 Weeks 3 Weeks Additional Weeks

o 25 EcoBox Moving Boxes $79 $109 $129 $20

2 Bedroom Bundle



3 Bedroom Bundle

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4 Bedroom Bundle



Order Products on their own or supplement your Bundle.

EcoBox Moving Boxes Price/Unit

1 Week: $3.50

2 Weeks: $5

3 Weeks: $6

Additional Weeks: $1

EcoBox Moving Dolly Price/Unit

Perfect for moving EcoBox es

1 Week: $5

2 Weeks: $8

3 Weeks: $10


EcoBox Wardrobes Price/Unit

1 Week: $6

2 Weeks: $8

3 Weeks: $10


Recycled Packing Paper Price/Unit

Industrial strength eco-friendly moving boxes

Dimension: 24” X 20” X 12”

Volume: 70 litres (2.4 Cubic Feet)

FROGBOXES come with easy to use labels

A great way to move clothes. Sturdy

design and velcro enclosures make

these plastic wardrobe boxes better

than cardboard.

Dimension: 21”X24”X48”

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10 lbs/175 sheets: $16

Commercial Moves

EcoBox offers customized services for your office moves. With EcoBox, corporate moves are

easy, less costly and better for the environment!

Lost employee productivity is the biggest cost when moving your place of business. Let EcoBox

help you to move and we’ll minimize the impact moving has on your bottom line. We’ll drop off

and pick up boxes when it is convenient for you and we’ll even deliver them to individual offices

or cubicles.

Employees don’t like packing up their offices and moving to a new location so why not make it

as easy as possible for them. EcoBox Moving Boxes are sturdier than cardboard boxes and

provide a lot more protection for your employees' important items. When EcoBox moving boxes

are empty they nest inside each other taking up much less space in your offices.

Protect your valuables with environmentally friendly, recycled paper

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VI. Marketing Plan

Market Analysis

On average, Singaporeans move every 5 years or else. We are targeting those who Eco-friendly and those who do not wish the hassle of going around their neighborhoods collecting cardboard boxes for their move. The Company has focus on the geographic segmentation of Singapore city and residential neighbour hoods in Singapore, EcoBox expecting to rent 70% of its available units to residential movers and the remaining 30% to the commercial sector of the market. A total of 1000 units of EcoBox will be bought and offered for rent .

Target Market

The target market of EcoBox is the residential and commercial occupiers in Singapore. We have targeted this segment because Singapore is crowded city and a large population is leased property. HDB flat owners in Singapore frequently upgrade and downgrade their flats and make profit out of them. There is also a large population of Foreign talents ( Job seekers from overseas) to constantly rent. These are the groups that mainly spare a thought for the environment and thus will engage the services of EcoBox.

Since the demand for local EcoBox services substantially exceeds the local supply, EcoBox will simultaneously market its services to the two major customer segments--residential customers and small business customers. The company will also pursue large business segment as its service scope it can provide to such customers at the services currently offered

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Market Trends

Currently Singapore is experiencing increasing numbers of SME”s. However, land is scarce resource especially to a country like Singapore. Consequently, the transaction that involves renting and leasing of office space have increased significantly. If the contract cannot be renewed then another location is sought. The packing boxes thereby required is where the opportunity lies. EcoBox can grasp vast amount of proceeds via this prospect. These trends indicate that that the moving industry is upbeat.

Changes in the climate will have much impact on EcoBox Pte Ltd business. The growing desire to protect the environment is having an impact on many industries such as travel, transportation and general waste. The general move towards moves environmentally friendly products and processes will have a affecting demand patterns and thus creates a great business opportunities for EcoBoxes Pte Ltd.

Industry

As the economy turns around for the better, plus the current high raising property climate in Singapore stated in increase in the next 5 years. Numerous property owners will be buying and selling their properties for profits. Thus EcoBox will be poised to take advantage of the potential situation.

Competition

We have identified we have several competitors but no direct competitors. These include removal services that provide low quality cardboard boxes. However there no competitors that provides high quality and durable grade #2 plastic EcoBoxes. Thus this creates a huge opportunity for EcoBox to establish its market and be successful in providing such a unique service.

VII. Strategy and Implementation

Value Proposition

Our value proposition is based on providing customers with customized, more convenient and

more environmentally friendly than traditional alternatives at fair price. Each delivery of

EcoBoxes will be planned and customized (if needed) to individual needs of our clients and our

primary focus will be creating value for the money they spend.

Marketing Strategy

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The target market strategy of the company is concentrated targeting strategy. Through this we

have selected a niche market (residential and commercial market in Singapore) to target the

company’s marketing effort. Since we will be focusing on only two major segments it will allow

us to concentrate on understanding the needs, motives satisfaction of the selected segment and

develop and maintain the highly specialized mix. We have also identified the movers industry.

Collaborating with several mover companies will also beneficial for EcoBox Pte Ltd. Having

contracts with several mover contractors they will boost sales as they lobby EcoBox services

and the vice – versa also can be done. In the future we will however, change the marketing

strategy as we explore into new possibilities of entering other markets.

Pricing Strategy

The pricing strategy that the company will be using to se the flexible bundle pricing strategy,

whereby different customers’ different prices for the services provided. However, we also

provide customized services and product at the requirement of the clients. We will be

determining the prices based on the quality and value of products provided. Our first priority is

to maintain the quality at fair price and we prefer to provide services by understanding our

customer needs.

Promotion and Advertising Strategy

EcoBox Pte Ltd will be utilizing a pull strategy since the company intends to convey the

marketing messages directly to target to end-user and mover contractors. The aim is to generate

increased levels of awareness, encourage involvement and provoke environmentally friendly

alternatives within the targeted market. The company will be able to stimulate sales by consumer

through such motivations.

During the introduction stage of the life –cycle of the product, advertising will be used to explain

the product and benefit associated by the environmentally friendly products. The emphasis will

be on providing enough information to allow potential customers to see how EcoBox

environmentally friendly alternatives and services might relate to them and how they save the

Earth progressively. It will encourage customers to stimulate enough interest to encourage them

further investigation and use the company’s services for the betterment of the Earth we live in.

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In order to advertise the company to a wider circle and to all masses, the company will utilize

brochures and flyers that will be distributed to letter boxes. We will be also harnessing the power

of the media by advertising on the local television network and radio. We will be also advertising

on network portals such as face book, twitter and friendster. This will be done within the first 30

days of the start of the company.

VII. Financing

To finance the company and the start up cost, EcoBox Pte Ltd will be applying a loan under the Micro Loan Programme (MLP) with Spring Singapore. EcoBox Pte Ltd will be applying a

quantum loan of $100,000. The tenure for the loan will 4 years at a interest rate of 5.5% per annum. This amount will be used to purchase equipment, materials and items for the start up of

the company.

Below are the financial reports for the start-up cost, annual expected cash flow forecast, profit and loss accounts for three financial years and balance sheets

IX. Start up Cost and Capitalization

Below is the financial breakdown for the cost of the start-up of EcoBox Pte Ltd.

START-UP COSTS Cost ($)Registrations

Business name $60

Domain names $20

Secretarial & Solicitor fees $5,000

Stock & Raw materials $10,000

Plant & equipment

Vehicles (Including Insurance) $50,000

Computer Equipment $3,000

Telephones, Fax machine & Grid Walkie- talkies $1,000

Office Equipment - Furniture & Fittings $5,000

Office Overheads

Marketing & Advertising $2,500

Salary & CPF $12,500

Utilities & Deposit $400

Telephone & Internet connection $150

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Office cum Store Rental & Deposit $3,000

Fuel Cost $400

Printing, Stationary & office supplies $250

Working Kits $100

Total start-up costs $93,380

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EXPECTED CASHFLOW [2011-2012] Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

OPENING BALANCE $0 $3,178 $5,356 $8,074 $12,612 $18,150 $19,188 $22,626 $28,464 $33,802 $38,640 $43,478

Cash incoming

Sales $22,000 $21,000 $22,000 $23,000 $24,000 $20,000 $22,000 $24,000 $24,000 $23,000 $23,000 $25,000

Total incoming $22,000 $21,000 $22,000 $23,000 $24,000 $20,000 $22,000 $24,000 $24,000 $23,000 $23,000 $25,000

Cash outgoing

Purchases (Stock etc) $0

Accountant fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $4,000

Secretarial & Lawyer fees $0 $0 $500 $0 $0 $500 $0 $0 $500 $0 $0

Advertising & marketing $1,000 $1,000 $1,000 $800 $800 $800 $500 $500 $500 $500 $500

Bank fees & Charges $100 $100 $60 $60 $60 $60 $60 $60 $60 $60 $60

Loan Principle & Interest $2,542 $2,542 $2,542 $2,542 $2,542 $2,542 $2,542 $2,542 $2,542 $2,542 $2,542 $2,542Utilities (electricity, gas,

water) $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200

Telephone $80 $80 $80 $60 $60 $60 $60 $60 $60 $60 $60

Office cum Store Rental $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500

Vehicle expenses $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Repairs & maintenance $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200

Stationery & printing $200 $200 $200 $100 $100 $100 $100 $100 $100 $100 $100Membership & affiliation

fees $0 $0 $0 $0 $0 $0 $400 $0 $0 $0 $0

Salary (including CPF) $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $19,500

Total outgoing $18,822 $18,822 $19,282 $18,462 $18,462 $18,962 $18,562 $18,162 $18,662 $18,162 $18,162 $29,662

Monthly cash balance $3,178 $2,178 $2,718 $4,538 $5,538 $1,038 $3,438 $5,838 $5,338 $4,838 $4,838 $4,662

CLOSING BALANCE $3,178 $5,356 $8,074 $12,612 $18,150 $19,188 $22,626 $28,464 $33,802 $38,640 $43,478 $38,816

Expected Cash Flow Forecast

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Profit and loss Accounts for 3 financial years

PROFIT & LOSS FORECAST 2011/12 2012/13 2013/14

Sales $273,000 $327,600 $393,120

Less Cost of goods sold $10,000 $16,900 $20,400

Gross profit/net sales $263,000 $310,700 $372,720

Expenses

Accountant fees $4,000 $6,000 $7,000

Secretarial & Lawyer fees $2,000 $2,000 $2,500

Advertising & marketing $8,400 $10,000 $8,000

Bank fees & Charges $800 $1,000 $1,200

Loan Interest $5,500 $5,500 $5,500

Utilities (electricity, gas, water) $2,400 $2,880 $3,450

Telephone $780 $800 $800

Office cum Store Rental $18,000 $18,000 $24,000

Vehicle expenses $6,000 $8,000 $10,000

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Repairs & maintenance $2,400 $3,000 $3,600

Stationery & printing $1,500 $1,500 $2,000

Membership & affiliation fees $400 $800 $800

Salary (including CPF) $157,000 $174,800 $234,400

Depreciation $500 $500 $500

Total expenses $209,680 $234,780 $303,750

NET PROFIT $53,320 $75,920 $68,970

Less Income Tax $9,064 $12,906 $11,725

NET PROFIT AFTER TAX $44,256 $63,014 $57,245

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Profit Forecast

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Year 2011/12 Year 2012/13 Year 2013/14$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

Profit

Profit

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Balance Sheet

BALANCE SHEET FORECAST 2009/10 2010/11 2011/12Current assets

Cash $38,816 $47,460 $56,774

Accounts Receivable $53,648 $69,742 $80,665

Inventory $10,000 $16,900 $20,400

Rental & Utilities Deposit $1,700 $1,700 $2,200

Fixed assets

Furniture & Fittings $5,000 $5,500 $6,000

Vehicles $50,000 $50,000 $75,000

Computer equipment $3,000 $4,000 $4,000

Less Accumulated Depreciation -$500 -$1,000 -$1,500

Total assets $161,664 $194,302 $243,539

Current/short-term liabilities

Accounts Payable $52,600 $62,140 $74,544

Income tax $9,064 $12,906 $11,725

Long-term liabilities

Loans $100,000 $75,000 $50,000

Total liabilities $161,664 $150,046 $136,269

Retained earnings $0 $44,256 $107,270

Total Liabilitis & Equity $161,664 $194,302 $243,539

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