Business plan Essay Example | Topics and Well Written Essays - 2500 words

Business plan - Essay Example Business Description The products to be sold are washable slippers—they are mainly used in the bath tubs and within the house. They are not designed for outdoor purposes. Their texture is soft, and the material they are made from is flexible and water-proof; that is, the washable slippers neither contaminate nor pollute the bathwater. This business plan details the procedures necessary for selling a brand of washable slippers for middle-aged male users. Though other categories of consumers can use the slippers; however, the initial research on this product was carried out with middle-aged male consumers in mind. Below are the data and chart that reveal how profitable the business is going to be when the target consumers/market is given ample consideration. 2 Table 1: Preferences for the Washable Slippers Comfortable (%) Uncomfortable (%) No comment (%) Middle-aged Male Users 75 20 5 Middle-aged Female Users 62 30 8 Teenagers 45 45 10 The data above was obtained by asking 20 mi ddle-aged men, women and teenagers to fill in their preferences in questionnaires concerning another pair of washable slippers. Their responses are tabulated above to demonstrate the likeness middle-aged men have for washable slippers. ... The form of organization chosen for this business is partnership. The major reasons for making this choice are that: (i) the size of the business is small; (ii) the capital to run the 4 business is limited; (iii) the partners can equally share the liability and profits accruable from the business; (iv) and being a medium-sized business, the partners would be able to concentrate more on rapid business development (Lazonic, 1993). Industry and Market Analysis The footwear industry in the United States is a large business: according to the US Census 2003, the value of men’s slippers that were manufactured alone in that fiscal year went up to about $3.6 million, while the total amount of slippers was $20 million (US Census 2003). However, the industry offers great opportunity for medium-sized enterprises to operate without undue competition from big players in the industry. And this is the main reason this business would be partnership, and the partners would be able to compete ev enly in the production of middle-aged men’s slippers without losing edges (Lazonic, 1993). Competitive Analysis Washable slippers are relatively new in the footwear industry. This kind of product will be so competitive in the market against the following primary and secondary competition. Primarily, rivals in the footwear industry normally compete on (i) price; (ii) look or appearance; (iii) durability. The washable slippers to be produced and marketed can 5 overcome these primary competitive indices by (i) offering considerable or moderate prices for the slippers; (ii) designing washable slippers that would have light weight and float easily in the bathwater; (iii) using good material to produce the slippers. Similarly there are some secondary