SMART objectives (Profit, market share and customer satisfaction)
Our business idea is to start an ecofriendly business where five girls of UAE nationality will start a kiosk. We plan to start sell some eco-friendly items which include stationary, furniture, playground boxes and accessories. The business will also be providing services such as playground services.
The objective of the business is to provide ecofriendly goods and services that are best suitable for teenagers and young adults in the area. The business is object to make profit as follows: End of 1st month the business will break even. End of the 2nd month, the business will make profits amounting to 300$ while end of the 3rd month it will make 550$. We do not expect high profits during the first month as the business will not have been well established. We will still be trying to win customer. We will therefore sell our goods at a low price. 50% of the profits achieved at the end of the second month will be put back in the business to ensure growth.
We have an objective of growing our business by 50% of our original stock at the end of the second month. This is because of investing back profits and customer satisfaction, which will enable us to achieve our 80% market share objective. To ensure minimum cost and maximum profits, we will carry out a research on manufacturers who are going to sell us goods at the minimum possible prices and offer us after sales services such as transport. By the end of first month, the business is expected to have at least 40%. The end of the second month, the business is expected to have acquired a larger market share of 60% and 80% by the end of the 3rd month. Our high projection on market is acquisition is because our plan is to target the young population.
Success of any business is based on the customers who will come back every day. The product of our business will therefore be produced with the interest of customer in mind. The main idea is maintaining sustainability in making sure the customers get access to high quality products. This is ensured by a research department whose main job is to conduct research in endeavour of getting all customers need (Hougaard, 2004).
SMART objective for the ecofriendly business
Our business will be designed in a stylish way. We will make our business well known by advertising it in the nearby college. To ensure that our objectives are smart, we have laid out are a specific plan which is to provide ecofriendly goods and services that are best suitable for teenagers and young adults in the area and grow our business from a kiosk into a big goods and services shop. We ensure that our objectives are measurable by attaching an amount of what we want to achieve on each goal. For instance we plan to achieve $300 in profits at the end of the second month. Our objectives are achievable. We have ensured this by coming up with a good strategy to carry out our business. For example to increase our market share, we will put notices on the college’s notice board and by giving out fliers to ensure the students get to know about our business. We will do that three times a week for the first month. For the second month we will only do it twice. We hope to achieve 40% of our customers through this method of advertising. We will give our customer gifts for their friends so that they can tell them about us. We are going to get our customers’ loyalty by giving the free services and gifts. We are also going to employ young likable employees as they will be able to relate well with our young potential market. We are going to have celebrity wall papers on the walls and always play good current music, which is the favorite to young adults. We will strive to achieve 100% customer satisfaction. We will achieve this by documenting well laid down procedures on how to treat our customers.
We will always put our customers first and we will have a weekly evaluation on customer satisfaction achieved by each employee (Pinson, 2001). This will be effective as from the second month as we will have acquired a large number of customers by then. We will encourage our employees to be nice to our customers by rewarding our best employees each week. We expect sales of 700$ after one month, 900$ at the end of the second month and 140$ at the end of the third month (Kleiner & Rhonda 2003). To ensure our business is ecofriendly, we will make accessories from recycled items such as plastics. We will also use recycled items to make jewelry and greeting cards. We will also mobilize students for town cleaning days and other activities such as tree planting. We have also set out realistic goals. For example we our profits are realistic; we expect to break even at the end of the first month. Another realistic objective is our business growth which is only 50% at the end of the three months. To each objective we have attached a time frame, for instance after two months of operation we plan to have made $300 in profits. This will make it possible for us to measure and evaluate our objectives
Research to Support our Business Idea
To support our business and to ensure achievement of our objectives, we need to carry out several researches (Bangs, 2002). First, we will tour to our potential area and find out how many other similar businesses are there, what they stock and what they miss, what has the highest sales. We will prepare questionnaires, which we will give the owners of similar businesses. We will also compare different suppliers, their prices and other services such as the after sale services (Kleiner & Rhonda 2003).
This way we will establish the best and most convenient supplier. We will also carry out interviews to the potential customers to our business in order to find what they desire most, which product or service is usually not available yet they would need it (Bangs, 2002). We will also collect data from the school student so that we can be able to find out what their ideal services are. We will analyze the data from other businesses in order to find out what has the highest sales. We expect that there is a high demand of stationaries and accessories. We will also carry out a research on how to ensure our business is eco-friendly (Berry, 2004). We will collect ideas from our fellow students and friends. One of us is going to carry out an online research on ideas that are related to our business that are ecofriendly. We will carry a research on how ecofriendly other businesses in the location are. We will also visit a recycling company to learn how to make things out of recycled materials.
Evaluating the Idea
The idea of offering playground services if not utilized so we expect to obtain 100% market share however, we will be required to let customers know that we are providing the service. We expect the business to grow rapidly especially when it becomes well established. At the 30th of each month, we will be analyzing how much we have achieved each objective. We will be doing this by comparing our objectives to the actual performance. Any deviation will be critically analyzed and the right action taken to ensure we perform as planned. We will also be evaluating how well we are following our goal to ensure that our business is eco friendly. This will be accomplished by collecting data from other companies who are doing the same thing. Therefore, we can understand our progress by comparison, either negatively or positively.
Bangs, B., (2002). Business Planning Guide.London: Kaplan Publishing
Kleiner, K., & Rhonda, A., (2003).The Successful Business Plan: Secrets & Strategies. CA: Planning Shop.
Berry, T., (2004). Hurdle: The Book on Business Planning. NY: Palo Alto Software.
Pinson, L., (2001). Anatomy of a Business Plan: A Step-By-Step Guide to Building a Business and Securinicag Your Company’s Future. Chicago: Dearborn Trade Publishing.
Hougaard, S., (2004). The Business Idea: The Early Stages of Entrepreneurship. LA: Springer