Business Plan

1.The nature of your business

1. Business name: KindergARTen

2. Business activity: Creative art workshops for children with special needs.

3. Mission statement:

I propose to set up art clubs for children with learning difficulties and special needs. As the children can often be difficult and challenging in the classroom, I propose to organise an alternative method of learning through art based workshops where the children can be as creative and expressive as they want.

4. Business objectives
• What are your plans to achieve your sales target in the first 12 months? My plans for the first 12 months are to achieve at least twenty five bookings per week.
• What new products or services will you introduce in the following two years to grow your business? I propose to introduce and offer a variety of different activities, for example outdoor activities, community based projects for inside hospitals, community centres or council buildings.
• What is your long term / 5 year goal? My long term goal is to expand into other areas outside of Leeds for example Manchester and Sheffield. Create a strong brand that will be known in the North West.

5. The people in the business
• How many people are employed? Initially, just myself. However if I expand I will employ more staff.
• What are their roles? My role as a sole trader would mean I am in charge of all aspects of the business including taking charge of the bookings, running the workshops and controlling the finances.

6. What is the structure of your business?
• Describe the organisation- draw a diagram if appropriate. As a single entity I will be a sole trader and responsible for all aspects of the business until I expand.

7. What is the legal status of your business?
• Is it Limited Company or partnership, social enterprise, cooperative or are you a sole trader? A limited company is a privately owned business and the company’s finances are distinct from the owner’s finances and the shareholders are not liable for company debts.
• A Social enterprise is a company aimed to fulfil social objectives. Primarily it is not driven by profit and any profit made is reinvested into the business or the community.
• A sole trader has a single owner who is liable for any debts that the business may incur. It is the simplest, most basic way to start and run a business.
• Why have you chosen this status – what are the advantages? I have chosen to be a sole trader as it is the simplest way to run a business. I will not need to pay registration fees and I will be in charge of my own records and accounts. All profits made will be my own, which is a huge advantage; however a disadvantage is I would be personally liable for any debts I may acquire.
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2. Resources

1. Products or services
• Describe the range of goods/services you are selling
Say what percent of turnover each will provide. - As a sole trader with only one service on offer, 100% of my turnover will be from the creative workshops.

2. What resources do you require?
• What equipment do you need? I will require a venue to hold the workshops, specialised computers and software, printers and scanners and art materials e.g. Paint, paper, brushes etc.
• How much will these cost? For eight users, each with a portable computer including specialised software, and material costs, would work out at £5,000.

3. How much stock do you need any stock to start your business?

• How much will your sales stock cost? Due to the nature of my business, and the service I will be providing, my business will not require any stock.
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3. Prices

1. How have you worked out your prices? The pricing strategy I will use is a percentage mark-up strategy called Cost + Pricing

2. How do your prices compare with your competitors?
• Name 3 competitors and give evidence of their prices:-
• Art Rabbit
• Kidzone
• Burley Koosh Club

4. Customers

1. What evidence do you have that anyone will buy your product / service?
• Is it a popular product / service currently provided by lots of others? It is the exact opposite; there is a niche in the market as there are not many businesses offering the same service in and around Leeds.
• Is your idea completely new? It is not a new idea, there are other companies providing the same service, however it is a limited number.
• Is there increasing demand for your product / service? It is in demand as it is a place for people to integrate who share similar needs and disabilities.

2. Who are these people?
• Use segmentation to describe your typical consumer- My consumers are children with special needs, aged between three and six years old who will be attending the workshops. My consumers will also be the parents of these children who are able and willing to pay for this service. They will live in and around the Leeds area, interested in socialising and integrating their children and willing to try alternative teaching methods.

• If yours is B2B – describe the market sector- I will not be selling my service to other business, it is purely aimed at providing workshops for disabled children and their parents.

3. Where are they?
• It may help to include diagrams or maps- My consumers will be primarily based in and around Leeds. However as I do not have a permanent fixed venue, if I find there is a high demand for my service in another area, I will be willing to set up workshops in these areas.

4. How many are there of them?
• This must be described in numbers form. According to Children’s rights, there are approximately 770,000 disabled children and 1.6 million are described as having special educational needs in the UK.

5. Why would they buy from you rather than anyone else?
• Provide a SWOT analysis to show that you have analysed your strengths and weaknesses in comparison to your potential competitors-

Strengths
• Team of young skilled professionals
• Determination to make it a success
• Experience already in the area
• Because a new business, opportunity to create a brand identity, strong brand image
• Has industry contacts
• experienced in advertising, competitive advantage

Weaknesses:
• New company-no one knows about us
• limited funds
• No website
• No fixed premises
• No existing customer base/ or brand awareness

Opportunities:
• Not many competitors in the Leeds area
• Government grants
• Open in a high income area
• Government increasing consumer spending by: - reducing VAT
• reducing bank of England base rate for interest

Threats:
• Credit Crunch
• Economic downturn
• Lack of consumer spending

6. How much will the average customer spend with you? Sixteen pounds per two hour workshop, per person.
How often will they spend that amount with you? Weekly.
Will your sales fluctuate due to external forces? Due to School holidays the amount of workshops may increase. However if another company arises offering a similar service, my customer base may decrease due to competition.
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5. How will you promote your business?

1. How will you advertise your products / services?

• Create website explaining: - what we do
- Info where workshops will be held
- What they include
- Why they are good
- What offers we have
- Pricing
• Advertise in local newspaper
• Specialised magazines
• Health Centres
• Specialised Schools:
Broomfield Special School
Grafton School
Green meadow School
West Oaks School
Milestone School
• Discount – Book 4 Workshops and get the next one ½ price
- First Free workshop to establish a customer base
• Mailing list to keep customers informed

2. What other marketing methods would be effective for you?
Personal Selling- Is verbal communication with potential consumers of a service with the intention of making a sale. It can focus on establishing a relationship with the potential customer. Personal selling can enable me to answer any questions the customer may have and provide support to them. As it is a face to face activity, I will be able to talk directly to parents and children about my business, I can demonstrate and show work that has been produced in my workshops and introduce them to the first free workshop offer which will establish me with a customer base.
Direct Marketing (Targeted marketing) - Is a way of sending messages directly to its consumers. This involves commercial communication for example, direct mail, e-mail and telemarketing with the consumer. It enables specific and trackable responses from the customer. This would be valuable to my business as I can advertise directly to my consumers in specialised magazines, specialised schools and health centres. This is a way of targeting my specific market without interfering in people’s lives who would not be interested in what I have to offer.

Internet- Is a world wide electronic communication service that enables me to set up an electronic mailing system to keep my customers informed of any new workshops, or venue alterations that may have arisen. I can also set up a website which clearly states what my company has to offer, show examples of work that has been produced and a detailed description of how this alternative teaching method can be effective in the progress of a particular disability. It can also reach prospective consumers in other areas outside Leeds which may be interested in setting up workshops in their area.
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6. Total set up costs

1. Legal costs
What legal costs might you incur in setting up your business, on protecting your intellectual property, registering with Companies House (if appropriate) or using a solicitor to look at your contracts?
Being a sole trader I will need to register as self-employed however I will not need to pay any registration fees and I will be in charge of my records and accounts and I will get to keep all the profits. However I will be personally liable for any debts I may incur. I will need to have a CRB check to work with the children. I will be liable to pay business rates and national insurance on my profits.
2. Resources
How much Capital expenditure in the first year? I have calculated that my total capital expenditure will be: £10,320 (See charge rate worksheet)
How much will you spend on materials and goods for sale for the first 6 months (Direct Costs) I have worked out that I will spend £1,375 on materials including computers, software, ink cartridges and paper, as I am not selling anything, I will not need to spend anything on goods to sell.
How much will be spent on bills and overheads for the first 6 months (Indirect costs) I will spend £2,600 on rent in the first 6 months, I will not have any bills to pay or maintenance as this will be included in the rent.

3. Marketing
Cost of promoting your business for the first year- To produce a website, design my branding and design advertising flyers, will cost me £800.

4. How will you finance the business start up?
Name a suitable source for the kind of funding you need.
If it’s a grant – give evidence that you are eligible.
For the initial start up costs I will need £6,660 to tie me over for the first six months. I will get this money from my own personal savings and an interest free loan from my parents. I will also be applying for a business loan from the bank to cover me for the rest of the money. Any profit I will make in the first six months will be reinvested back into the business.

7. How will you monitor your progress?

1. Financial control
• What systems will you use to monitor finances?
I will create a balance sheet in excel to keep track of all outgoings and incomings and produce a monthly statement to monitor my finances.
• What methods will you use to monitor your position in the market?
I will monitor any up and coming competitors and keep on top of my charge rates so as not to be undercut by any competition. I will also maintain a high level of customer service and do frequent feedback reports from my customers to ensure this is being maintained.


Bibliography:

Brassington, F. & Pettit, S (2006) Principles of Marketing; Fourth edition, Harlow, Pearson education.

Hingston, P. (2001) Starting Your Business. London, Dorling Kindersley.

Reuvid, J. (5th Edition, 2006) Start Up and Run Your Own Business. London, Kogan Page.

http://213.210.8.133/pages/Services.asp?ID=14601

http://213.210.8.133/pages/Services.asp?ID=1885

http://www.artrabbit.com/all/events/event/11382/sally_mckay_children_s_art_workshop

http://www.bytestart.co.uk/content/19/19_1/forming-a-limited-liabili.shtml

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1077475650

http://tutor2u.net/business/marketing/promotion_personalselling.asp