This paper develops a business plan a proposed new and start-up entrepreneurship. The name of the proposed business is “Peace & Fashion “. First, this paper describes the product the business plan to offer. Then, detailed information about the investment is provided. Following this, the percentage of return of investments and timeline for the repayment of the loan are outlined. Next, the target and potential customers are defined. Then, the methods of promoting the product are discussed. Then, the competitors of the proposed business are discussed. Next, the financial statements of investment are outlined. Finally, the operations, sales and marketing issues of the business are discussed following a research and investigation into the opportunities and viability, credibility and quality of the business plan is outlined.
2.0 Description of the proposed product
2.1 Overview of companies
Peace Essential is a small new and entrepreneurship business. It is now operating only in Shadwell, East London, UK. Its average sale is about £2000 in a day. It has three full-time staff and 3 part-time staff. It serves hundreds of customers every week. The key products it sells are Islamic Books (mainly Holy Quran and Holy Hadid), Islamic clothing for Muslims (mainly for women). Now it is planning to increase its product range by introducing a creative and innovative product item. The proposed product new and innovative product name is a digital pen.
2.2 Vision and mission
As Morris et al., (2014) note, vision is the point that the business wants to reach. On the other hand, the mission is the process of how to reach the target point and gain their desire success in the business. The vision of Peace & Essential is to be the leading retailer of Islamic books, clothing, and related accessories. The mission is to satisfy customers by offering quality goods at fair prices with excellent customer services.
2.3 Aims and objectives
The aims of Peace & Essential to maximize revenue and profits by existing business operations and increasing market share. The objectives of Peace & Essentials are a) to improve revenue and profit; b) to improve customer base and local market share; c) to increase customer satisfaction, customer retention, and loyalty; d) to increase product ranges and market.
2.4 Proposed product details
The proposed product name for Peace & Essential is “Digital Pen”. This pen is a creative and innovative pen. This pen will work as charisma and help the people who want to read Holy Quran but do not know how to read. The people will just touch this pen on the words of the Holy Quran and the pen will pronounce the words and say the meaning of words. Thus, the people can easily understand the Holy Quran. In addition, this pen will have a high fiscal camera and video recording that will increase the security of people. The pen will also have high memories and storage capacity. Therefore, people can use this pen as a pen drive.
2.0 Information about the investment
Peace & Essential is planning to invest £50,000.00 for the proposed business. Among this £50,000.00, the owner of Peace & Essential is planning to invest £10,000.00 from their own pockets, £15,000.00 from working capital, and for other £25,000.00, the owner is planning to take a loan from Banks. This means Peace & Essential is planning to use both internal and external sources. As internal sources, it will use working capital and invest from its own pockets, and as external sources, it will use bank loans. The internal sources have less implication than the external sources. In the case of external sources (bank loans), There are several legal, regulatory and financial issues. The owner of Peace & Essential must do a contract or agreement with the bank. Then, all the terms and condition of the loan given have to be maintained. As a financial issue, the Peace & Essential needs to do repayment on time to clear the balance.
3.0 Percentage of return of investment
Businesses use performance measurement for evaluating the efficiency of an investment. ROI is used to measure the percentage of return of an investment comparing to the investment costs. For calculating ROI, the return (investment + profits) is divided by investment cost, and the result is disclosed as ratio or percentage (Investopedea, 2016). The formula of ROI is provided as follows……………………………………………….