Braidcom Business PlanExecutive summaryBraidcom entry into the market is expected to take a gradual approach from the current better stage. Braidcom is currently undertaking its business operation in shops. The operation is targeting online platform in order for the company to boost its sales. Upon the launch of the online platform, the company is expected to reach a good number of customers from its local base in the US. The opportunity that exists in human hair business is still viable for potential investors who wish to venture into business based on existing business gap in product diversification. For instance, some opportunities exist in increasing the availability of quality braids to customers. Therefore, the entry of Braidcom into the industry is both likely to provide customers with quality brands at affordable prices and easily accessible. Moreover, with the existence of good customer support, quality and sufficient Braidcom products that appeal to customers are more likely to reach the market.From Braidcom’s projected financial plan, the key indicators of a sound economic performance such asset values from $500,000 in the first year to $1.3 by the end of the fifth year. In addition, the net income for the same duration is expected to rise from $120,000 to $290,315. The current financial state of the business is also solvent which indicates that the business will have a stable operation in the human hair braids market.Braidcom will have to find a convenient way to penetrate the market and sustain its operation considering the easy entry of new firms into the market plus the presence of existing rivals who first conquered the market in addition to their well-established strategies such as Mayvenn. Based on these factors, it is, therefore, essential for Baridcom to focus on existing product niche in the aspect of customer satisfaction, variety, and prices charged.1. The company1.1. Business descriptionBraidcom establishment idea came from two individuals with background knowledge in Entrepreneurship for Global Challenges in Emerging Markets from their university coursework. Furthermore, one has undertaken another course in the art of hairstyles, hence a boost for the business idea. These individuals identified a need to come up with an idea focusing on customers’ needs that have not been satisfied with the existing firms in the market. Therefore, they considered filling the gap with the view of marking profit at the same time. Braidcom seeks to retain its existing retail shop while setting up an online platform where it can reach the majority of customers in order to boost its sales, in this case, the online store.The idea for setting up an online platform for Braidcom was reached based on a small study that was undertaken by the two stakeholders. Statistical data was taken on different customers who raised complaints concerning their unsatisfied needs such as poor quality braids. Furthermore, the idea was greatly influenced by the existing high demand for human hair braids in the market. One of the individuals has been charged with the mandate of managing the online business platform to oversee online customer demands while the other individual is responsible for maintaining the existing retail shop in addition to monitoring market figures and entry behaviors.Based on the reports by the two individuals, the business is poised to invest in the human hair braids sector by not only providing the current braids in high demand but also setting up a customer-friendly online platform with the aim of attracting more customers. Therefore, to achieve its target, Braidcom will focus on bringing on board experienced entrepreneurs who will be giving advice to stakeholders on ways that if adopted will increase the sales while keeping at heart the customers’ needs for satisfaction. Some of the team members will operate the social media platform in order to ascertain the business presence. All these inputs are geared towards enabling Braidcom idea to be tested, improved and finally launched into the market before the end of this year, 2018.1.2.Mission, vision, and objectives1.2.1 MissionUpon its launch, Braidcom aims to serve its customers with integrity by being loyal to them as well as the company. Braidcom seeks to provide high degree customer service consistent with a relentless attitude while maintaining affordable prices to all the customers. Then, by the end of 2020, the company seeks to be at the top rank in terms of customer satisfaction, being on the record as the most selling online braid store in the US local market.1.2.2 VisionBraidcom vision is not only to maintain its retail services but also to create a better everyday life for its customers who wish to experience the beauty provided by the firm. In addition, Braidcom seeks to set up an online platform which will unite all customers giving them desired customer feedbacks as far as the online store is concerned.1.2.3 ObjectivesSince January 2018, the company has been finalized and will operate under the name Braidcom. Currently, the establishment is yet to kick off. Furthermore, the company aims to include Google ads in the online platform in order to ascertain the number of visitors to the online store. The activity will help the company have a track record of its potential customers and possibly request for feedback on the products the company offers.By September 2018, the online store will be launched and further improvements will be made based on the customers’ feedbacks. Moreover, until mid-2019, the company aims to have more than 40,000 visits to the online store with over 70 percent of the number being potential customers.In a bid to meet these stated objectives, the firm will fill its webpage with relevant information, for instance, the images of desired braids will be made available alongside their prices (after discount). In order to boost customer satisfaction needs, once the transactions have been done online, the customers will be directed to pick their goods at specific places near their areas of residence minus transit costs. It is the hope of Braidcom that significant revenues will be generated provided the goods meet the needs of customers and customers’ experience in the human hair braid industry.2. Product/serviceBraidcom will trade on the line of providing human hair pieces, custom wigs and braids to its customers. The products will come in different colors and brand names.3. Marketing analysis summary3.1 Industrial analysisThe human hair braids business is not a new trend in the business as compared to other business sectors such as information technology. Compared to other business ventures that they operate within the same line, the initial financial investment in this sector is relatively lower since it rarely requires sophisticated office structures as most of the operations are done online. Thus, the minimum requirements make it cheaper for new entrants into the industry. In addition, the large revenues gained in the business operation attracts more investors who wish to invest in the industry. Nevertheless, the technicalities experienced in operating an online store can be so hectic, therefore, a lot of care should be taken in order to ensure that customers get their requested goods within the stipulated duration. The industry is borderless and includes industries from across the globe as such Braidcom will have to provide quality goods that appeal to its customers to combat rivals.3.2 Market trendsThe demand for human hair has kept on increasing day by day. A good number of people especially females are in demand for braids which are meant for hair extension. The growing demand has led to booming sales in the market, necessitating the need for many firms to have a market share with the view of making a profit.3.3 Trends and challengesEven though the braids for hair extension were meant for females, the current trend has made males to develop the same habit. Thus, to combat this, the industry has been forced to go milestone in ensuring the availability of custom wig for males in order to satisfy the need for
both genders in the society. However hard the custom wig for males will be difficult to find or rather expensive, Braidcom will ensure their availability in their stores in order to bring a gender balance in the products offered.3.4 Target market descriptionBraidcom will target both genders. However, quite a good percentage of the products that will be availed in the stores will be meant for females since they form the largest target audience in the market. Males will also get the opportunity to get a taste of our products.3.5 Business canvasThe customer segmentation will focus on the type of hair extension required by gender. For instance, custom wigs will be meant for males while hair pieces and braids will be for females. Conversely, almost 70 percent of the goods in the store will be targeting females based on market demand. Braidcom will ensure value for money on the products offered following the online store customer feedback.In order to achieve the required market share, Braidcom will venture in vigorous social media marketing by growing their fame through different platforms such as Instagram and Facebook in addition to the use of Google ads. Such enthusiastic campaigns are meant to attract the attention of a wide majority, hence, boosting company sales. Sales increases company growth, conversely, leading to increased company market share. The partners in this operation will be the major players who fund adverts to ensure uninterrupted business operation. Only limited office structures will be used for this business in order to cut on the operational costs. The cost and revenue ratio will be reviewed annually in order to ensure that the firm remains profitable throughout the operation duration.4. Competitive analysisBased on Porter’s five forces, the threat of the new entrants will be moderate because of the operational cost required in running this kind of business. Rivalry among the existing firms with the quest to gain a significant market share is likely to be a moderate threat since Braidcom will battle this in the social media platform. However, the threat of substitute products is likely to nearly negligible since very few products can be used for hair extension other than braids. The direct competitor that Braidcom will aspire to outdo in the market is Mayvenn which offer products in the same line.5. Strategy and implantation strategy5.1 Competitive edge and BCG mixEven though the human hair braids business is not new to the market, Braidcom will have to find a way to outcompete the products offered by Meyvenn in the market. The company in this aspect will have to channel some of the revenue income in supporting its adverts.6. Marketing planThe marketing plan of the Braidcom products will be based on price and product. The product will bear the product name based on the brand while the price will be based on the type of braid. The braids will majorly come in three distinct division for females and wigs for men. The divisions are; Braidcom executive hair, Braidcom medium hair, and Braidcom regular hair.The prices are charged slightly below the market prices in order to make it appealing to customers who are price sensitive, hence, attracting more customers.7. Demographic analysisThe products are meant to target both genders based on diversity. In terms of age specification, any age group is applicable since no specific age limit for hair extension. But the majority of the target market is females between the ages of 15-30 years.8. SWOT analysisHuman hair braids businesses are involved in a competitive industry with diverse target markets. With such diversity in an ever-changing industry, Braidcom must have an aggressive and strategic approach in order to maintain a competitive edge. The SWOT analysis is a tool for building the market strategies. SWOT stands for strength, weakness, opportunities, and threats. It helps business to identify where it requires improvements and adjustments.With over three-year experience in the market based on retail stores operations, Braidcom has some insight into the market. However, the limited market experience on the side of online store operation makes it quite challenging for Braidcom as it seeks to launch it for the first time. Still, the business is poised to be profitable.9. Financial projectionsStart-up capital AnalysisProjected Income statementProjected Balance SheetProjected CashflowValuationThe Present value using Gordon’s modelStart-UP Budget for year 1Expenses Assets loans Contributed Capital 0 Amount in DollarsExpenses Assets loans Contributed Capital 25000 1746000 250000 1233300AMOUNT IN DOLLARS
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