Introduction
This Proposal on Business Plan is is about to create a new business venture in Ceramic Tiles Industry. The name of the company is Daniel Platt Limited which is going to develop its market in UK and it is in the background of Ceramic Tiles.
- Owners Experience/ Background
The background of this business proposal is about to create a new business venture in Ceramic Tiles Industry. Therefore, Daniel Platt Limited is going to develop its market in UK and it is in the background of Ceramic Tiles. The experience in doing this business that ceramic products are becoming more competitive. So, to maximize the opportunity value, it is important to have competitive offerings with new products, new design with best quality in floor tiles, wall tiles r roof tiles product. Therefore, it must had the need of financing to capture the opportunity. So, the business proposal will be very helpful to get the finance from different sources.
Ceramic Tiles business is mainly the part of the clay brick and these are for the use as residential purpose and commercial purpose in the downstream building and construction markets. In UK, Ceramic Tiles Industry is a growing business and it has grown at 0.95 percent annual growth with £6.3 billion annually in last five years. Moreover, it is also stated that in the statics report that ownership concentration has increased within the industry due to acquisition activity in UK to expand their operations (Farooq, Smith, Smith and Midha, 2005). So, the overall experience or background information portrays that Ceramic Tiles business is a profitable industry and entrepreneurs are motivated entrepreneur to establish this by getting financial support from banks or other financial institutions business. So, I can start this business on a small scale basis where I may use this business proposal for getting short term or mid-term financing.
Read More: Steps to Launch Your Business
- Explain what the New Venture is in the form of products or services
As a new venture, Daniel Platt Limited will focus on manufacturing the ceramic tiles by targeting the residential people and commercial people mainly. So, this will provided as follows:
Product offerings by Daniel Platt Limited:
It will serve a wide range of clients so it must have the huge collection options for our clients like (Saeed, Qadir and Shaan, 2007);
- Ceramic Tile
- Glass Tile
- Porcelain Tile
- Cement Tile
- Mosaic Tile
- Marble Tile
- Granite Tile
- Travertine Tile
- Limestone Tile
- Metal Tile
- Quarry Tile
- Resin Tile
Product Patterns
- Traditional Pattern
It is the symbol of ultimate expression for artisan tradition. So, the intention of Daniel Platt Limited is to create unmistakable style product to represent tradition of craftsmanship. Therefore, there have the experience emotions to attract the customer by producing the traditional pattern tiles (Gregory and Sohal, 2002).
- Brushed Pattern
This pattern of tiles are made of 42 colours. It is like the symbol of attention where.it will found about the company theme to represent the business theme with the combination of different colours. In this pattern, there have the customized option for customers by which they order for customized colour and Daniel Platt Limited is committed to deliver the customized product color from wide variety of this color segment. For Brushed Pattern, sizes of the tiles would be like 20×20 or 20×10 (Gregory and Sohal, 2002).
- Contemporary Pattern
These pattern tiles offered by Daniel Platt Limited are the modern tiles pattern tiles which is mostly used for interior decoration as of as floor tiles or wall tiles. The best used place of this pattern in kitchen and bathroom that will present a beautiful design to suit in reality (Gregory and Sohal, 2002).
- Market Research
Marketplace
The market place of tiles industry is mainly to focus on residential and commercial area. The trends of Ceramic Tiles Industry have huge demand from different industries while it is develop construction building for its interior and external decoration in response to taking the market place of industrial production and fulfilling the need of construction activity (Sheehan, 2018).
Though there have tremendous changes in this tiles industry over the last 20 years. Some entrepreneurs started this business as small business but rather it becomes a global brand worldwide to capture the global market place also. So, the market place is very vast if the planning and execution could be used properly. So, the trends of tiles manufacturing is growing worldwide as the sales increasing due to the demand of exporting tiles to aboard also.
Target Market
Our target market for Daniel Platt Limited is well defined already that we are going to capture the market of service construction companies to cover the UK industrial sites and then to cover the residential areas where there have under construction residence progress is ongoing each year. As per our market research, the following things determine about our target market (Sheehan, 2018).
Daniel Platt Limited will sell their products to;
- Construction companies
- Building materials suppliers and retailers
- Property development companies
- Home remodeling companies
- Households
Market segmentation
Ceramic Tiles Industry have so many variants to produce tiles in different segmentation. By considering product variants it can be segmented as follows.
Wall Tiles: The manufactured piece of wall tiles are of ceramic, metal, stone, or even glass, for the purpose of using in building roofs, walls, kitchen, showers. Even, it could be used in furniture like uses it in table tops. Tiles are also used for decoration purpose in different event or functions for floor coverings. Wall tiles are within the range of simple square tiles to complex mosaics (Sheehan, 2018).
Floor tiles: These tiles are mostly made of ceramic as glazed and unglazed. Glazed wall tiles are for internal decoration and unglazed tiles are used for covering the roof or roofing. Moreover, floor tiles are made of also in glass, concrete, cork, and composite materials. Marble tiles and granite tiles are also available in floor tiles (Sheehan, 2018).
Industrial tile: These tiles are also made of similar to wail tiles and floor tiles, but it is mostly segmented for industrial use or for commercial use where the greater portion of revenue is exist. This is because of here need to deliver customized tiles at large scale according to the prescribed design by the designers or engineers, that’s why the name of industrial tiles need to segment as single pattern by maintaining high quality of tiles (Sheehan, 2018).
Vitrified tiles: Vitrified tiles is an alternative of granite and marble flooring and it is known as ceramic tile also to be segmented with very low porosity. For outdoor usage, this type of tiles are best option due to water and frost resistance. Vitrified tiles are of four variants like soluble salt, Full Body, Double charge, and glazed (Sheehan, 2018).
Targeting & Positioning: The target group has already been mentioned that Builders, Architect, Property Company and it will be highly competitive for ceramic tiles segment in UK.
Niche market
The market of Luxury tile is niche and almost covering the 5% of the total UK tiles market. With demand above EUR 15 per square feet for the customers of TREND SETTERS. The above graph shows that it has the opportunity of capturing 5% market for niche market.
Cost & Quality sensitive market
People tend to buy ceramic tiles within the range of EUR 4- 6 per square feet under this option for the customer of FOLLOWERS. The above graph shows that it has the opportunity of capturing 30% market for Cost & Quality sensitive market.
Cost sensitive market:
People tend to buy ceramic tiles within the range of EUR 1.5-4 per square feet under this option those are used by domestic players only. The above graph shows that it has the opportunity of capturing 65% market for Cost sensitive market.
Marketing strategies
The following flow will be used for developing and achieving the marketing goals and objectives.
Sources of Income
Daniel Platt Limited to maximize profits have the following sources of income by selling the following tiles to achieve the business goals and objectives of profit maximization:
- Ceramic Tile
- Glass Tile
- Porcelain Tile
- Cement Tile
- Mosaic Tile
- Marble Tile
- Granite Tile
- Quarry Tile
- Resin Tile
- Limestone Tile
- Metal Tile
- Travertine Tile
Sales Forecast
Daniel Platt Limited, it will be easy to attract more customer because of its good business network and it will support a to increase sales revenue for the business. Daniel Platt Limited are well positioned for capturing the market availability in London City to meet our sales target or profit margin from first six months of operation. Later on, we will expand the business on the basis of client base beyond London city.
We have set our sales target as below by evaluating the sales projection for Daniel Platt Limited on the basis of location based sales, residential sales and commercial sales of tiles:
First Fiscal Year (FY1): £252,300
Second Fiscal Year (FY2): £378,450
Third Fiscal Year (FY3): £567,675
Marketing Strategy and Sales Strategy
By doing proper market survey and feasibility studies, we prefer to choose stakeholders in and around London City. Therefore, we would be able to attract a good number of customers (Bhattarai, Kwong and Tasavori, 2019).
In summary, Daniel Platt Limited will apply the following sales and marketing strategy to capture customers over;
- Introduce about us by sending introductory letters along with our brochure by highlighting all the unique features and design of tiles to construction companies , local suppliers, hardware stores and retailers in and around London City
- Brochure must represent different sizes of tiles available to us and different types and patterns of tiles available to us.
- Attaching offer to local suppliers like special price offerings for them to switch them towards our company.
- Apply the strategy like Word of mouth marketing
- Engage in direct marketing and sales
- To develop business network be the member of local chambers of commerce for marketing our products.
Publicity and Advertising Strategy
Though Daniel Platt Limited is well located, still we need to plan for publicity and advertising strategy for the business (Engel, Warshaw and Kinnear, 2000):
Daniel Platt Limited has a long term publicity and advertising plan is response to product distribution, product campaign or product promotion in various locations of UK around key cities to build brand value by following the below strategy:
- Advertise in newspapers, TV stations and FM Radio
- Use social media platform like Facebook, YouTube for product promotion with all unique tiles design
- Develop a website for Daniel Platt Limited where buyers will get all updated information regarding its current product, upcoming product, product features and product pricing.
- Use logo all official cars and trucks to attract customer
- Encourage the use of word of mouth publicity
Competitors
Top three Market players in this industry are
- Topps Tiles Plc
- Tiles Shop Holdings Plc
- Floor & Décor LLC
Unique Selling Point
“Decoration is beauty, tiles is the best tools for decoration.”
This USP illustrate that interior and exterior decoration is now very common for increasing beautification residential as well as commercial areas. So, tiles of Daniel Platt Limited will be very handy for the beauty of decoration.
- Operational Requirements
Requirement of human resources to operate the business.
As a matter of fact, Daniel Platt Limited will hire qualified and competent people under the following positions (Chadha, 2018):
- Chief Executive Officer (Owner)
- Human Resources and Admin Manager
- Accountants
- Factory Manager
- Tiles Production Machine Operator
- Sales and Marketing Manager
- Customer Services Officer
Requirement of Communication system for internal and external communication purpose:
- Internet Connections
- Desktop and Laptop
- Phone Connectivity
- Meeting room
- Notice board (physical or electronic)
Requirement for Infrastructural Facilities:
- Power 205 H.P of power
- Raw material availability:
- Sufficient water @ 10KL
- Transport should be connected with road and Rail transport
- Man power
- NOC from pollution control board as per statutory norms
Legal Requirements
- The legal requirement for Daniel Platt Limited is to have the license of doing business like Trade License.
- To import material need import license
- Need clearance certificate from environment authority for getting environment certificate
- Other legal documents prescribed by UK local government (Chadha, 2018)
Cost and pricing strategy
Pricing is important factor to attract the customer also by keeping the quality better:
Daniel Platt Limited will apply the following pricing strategy:
Competitive Pricing – It will help to set a competitive with other competitor by increasing or decreasing product price in different aspects.
Geographic Pricing – As we are planning to capture in and around London City, we will set this pricing for getting the support of local suppliers and other tiles distributors.
Discount Pricing – It will be a best option by offering discount to our client as we are new in the market. It will be able to attract a good number of customer (Hsu, 2011).
Payment Options
The payment policy adopted by Daniel Platt Limited to prefer different payment options as follows:
- Payment via bank transfer
- Payment via online bank transfer
- Payment via credit cards
- Payment via cash
- Payment via bank cheque
- Payment via bank draft
- Payment via mobile money transfer
Financial Forecasting
Sales and Sales Revenue Forecast
| Sales Forecast (Unit) | ||||||||||
| Product | Year 1 | Year 2 | Year 3 | |||||||
| Ceramic Tile | 20000 | 30000 | 45000 | |||||||
| Glass Tile | 7000 | 10500 | 15750 | |||||||
| Porcelain Tile | 2000 | 3000 | 4500 | |||||||
| Cement Tile | 15000 | 22500 | 33750 | |||||||
| Mosaic Tile | 10000 | 15000 | 22500 | |||||||
| Marble Tile | 9000 | 13500 | 20250 | |||||||
| Granite Tile | 11000 | 16500 | 24750 | |||||||
| Travertine Tile | 8000 | 12000 | 18000 | |||||||
| Limestone Tile | 6000 | 9000 | 13500 | |||||||
| Metal Tile | 5000 | 7500 | 11250 | |||||||
| Quarry Tile | 4000 | 6000 | 9000 | |||||||
| Resin Tile | 3000 | 4500 | 6750 | |||||||
| Total Sales Unit | 100000 | 150000 | 225000 | |||||||
| Sales Revenue Forecast | ||||||||||
| Product | Year 1 | Year 2 | Year 3 | |||||||
| Price | Unit | Selling Price | Unit | Selling Price | Unit | Selling Price | ||||
| Ceramic Tile | £ 3.50 | 20000 | £ 70,000.00 | 30000 | £ 105,000.00 | 45000 | £ 157,500.00 | |||
| Glass Tile | £ 1.50 | 7000 | £ 10,500.00 | 10500 | £ 15,750.00 | 15750 | £ 23,625.00 | |||
| Porcelain Tile | £ 2.50 | 2000 | £ 5,000.00 | 3000 | £ 7,500.00 | 4500 | £ 11,250.00 | |||
| Cement Tile | £ 1.50 | 15000 | £ 22,500.00 | 22500 | £ 33,750.00 | 33750 | £ 50,625.00 | |||
| Mosaic Tile | £ 3.00 | 10000 | £ 30,000.00 | 15000 | £ 45,000.00 | 22500 | £ 67,500.00 | |||
| Marble Tile | £ 3.00 | 9000 | £ 27,000.00 | 13500 | £ 40,500.00 | 20250 | £ 60,750.00 | |||
| Granite Tile | £ 2.50 | 11000 | £ 27,500.00 | 16500 | £ 41,250.00 | 24750 | £ 61,875.00 | |||
| Travertine Tile | £ 2.50 | 8000 | £ 20,000.00 | 12000 | £ 30,000.00 | 18000 | £ 45,000.00 | |||
| Limestone Tile | £ 1.80 | 6000 | £ 10,800.00 | 9000 | £ 16,200.00 | 13500 | £ 24,300.00 | |||
| Metal Tile | £ 2.20 | 5000 | £ 11,000.00 | 7500 | £ 16,500.00 | 11250 | £ 24,750.00 | |||
| Quarry Tile | £ 3.00 | 4000 | £ 12,000.00 | 6000 | £ 18,000.00 | 9000 | £ 27,000.00 | |||
| Resin Tile | £ 2.00 | 3000 | £ 6,000.00 | 4500 | £ 9,000.00 | 6750 | £ 13,500.00 | |||
| Total Sales Revenue | £ 252,300.00 | £ 378,450.00 | £ 567,675.00 | |||||||
Note: It is not assumed about the affected by seasonal trends
Ø Calculate overall business running costs
| Business Running Costs | |||
| Particulars | Year 1 | Year 2 | year 3 |
| Raw materials | £ 6,000.00 | £ 6,600.00 | £ 7,500.00 |
| Salary and wages | £ 12,000.00 | £ 13,200.00 | £ 15,000.00 |
| Utilities and Fuels | £ 2,500.00 | £ 2,750.00 | £ 3,125.00 |
| Consumables | £ 1,000.00 | £ 1,100.00 | £ 1,250.00 |
| Other expenses | £ 1,500.00 | £ 1,650.00 | £ 1,875.00 |
| Depreciation Expense | £ 500.00 | £ 550.00 | £ 625.00 |
| Interest Expense | £ 3,000.00 | £ 3,300.00 | £ 3,750.00 |
| Total | £ 26,500.00 | £ 29,150.00 | £ 33,125.00 |
Assumption: Cost increase by 10% in second year, and then 25% in third year.
Ø Cash flow forecast
| Cash flow forecast | |||
| Year 1 | Year 2 | Year 3 | |
| Cash Inflow | £ 252,300.00 | £ 378,450.00 | £ 567,675.00 |
| Cash Outflow | £ 26,500.00 | £ 29,150.00 | £ 33,125.00 |
| Cash Balance | £ 225,800.00 | £ 349,300.00 | £ 534,550.00 |
Ø How much are you asking from investors?
I am asking from Investor for getting the finance of Amount £100,000 for fulfilling my working capital requirement
- Contingency Plan
- Loan from HSBC Bank for working capital requirement and it will be on short term basis
- Storage of raw materials for 3 years and it will be on midterm basis
- Keep the earnings without further investment for 6 years and it will be on long term basis
- Expand business after six years
- Increase production upto 25% each year
- Increase customer relationship as well as distributors relationship (Khan and Jain, 2007)
References – Proposal on Business Plan
Bhattarai, C., Kwong, C. and Tasavori, M., 2019. Proposal on Business Plan: Market orientation, market disruptiveness capability and social enterprise performance: An empirical study from the United Kingdom. Journal of Business Research, 96, pp.47-60.
Chadha, J., 2018. Proposal on Business Plan: Production And Operation Management. 2nd ed. Wiley.
Engel, J., Warshaw, M. and Kinnear, T., 2000. Proposal on Business Plan: Promotional Strategy. Cincinnati, Ohio: Pinnafelx Educational Resources.
Farooq, A., Smith, M., Smith, L. and Midha, S., 2005. Proposal on Business Plan: Dynamic photometric stereo for on line quality control of ceramic tiles. Computers in Industry, 56(8-9), pp.918-934.
Gregory, C. and Sohal, A., 2002. Proposal on Business Plan: Global product development in the ceramic tiles industry. International Journal of Technology Management, 24(1), p.17.
Hsu, S., 2011. Proposal on Business Plan: Cost Information and Pricing: Empirical Evidence*. Contemporary Accounting Research, 28(2), pp.554-579.
Khan, M. and Jain, P., 2007. Proposal on Business Plan: Financial Management. New Delhi: Tata McGraw-Hill.
Saeed, S., Qadir, S. and Shaan, R., 2007. Thermal Insulating Concrete Tiles. Journal of Zankoy Sulaimani – Part A, 10(1), pp.53-58.
Sheehan, B., 2018. Proposal on Business Plan: Marketing Management. Lausanne: AVA Publishing SA.
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