Business Enterpreneuship (creating a business plan)

Euroflorida company

More and more frequently, the “grey gold” of north Europe (Scandinavia, Germany and the UK) are liquefying their assets and moving to south Europe. Their destinations are often Spain and south France. Indeed in Spain a large building industry has started up building “pensioner complexes“ to cater for the market, similarly in south France, house prices are rising significantly. Smaller markets in the English-speaking Med (Gibraltar and Malta) have seen very dramatic rises in real estate value. However Apulia (the “heel” of Italy) is a relatively undiscovered region; prices are very reasonable and indeed, for a decade, Apulia was the poorest region of the (old) EU. The infrastructure, however, is excellent, with an airport at Bari, a motorway all the way to Vienna and the European net, excellent train connections within Italy and by ferry to Greece. Climatically Apulia is the second most “blessed” region of the EU, after Portugal’s Algarve. Temperatures are, however, not extreme and the landscape is lush, fertile and green. It is an area of small industry, as well as being extremely rich in culture & history.

The challenge
The project is to complete a feasibility study and business plan where the prime focus is to sell property in Apulia to north Europeans. While the client-facing system is probably going to be Internet, the main challenge lies in the supply chain. In principle, the supply chain models could be, e.g.:

• The company buys, renovates and advertises the properties.
• The company enters into a joint venture with a large Apulia real estate agent
• The company manipulates a network of smaller real estate agents

As part of the “package”, essential services (plumber, electrician etc) should be included, so new immigrants – probably not speaking much Italian – are not left stranded. So the project may not be just to sell houses, but rather lifestyle. In stages this could include keeping the new buyers in touch with each other (history club, cooking club?). Later it could include contact with the local Chambers of Commerce (remember the new inhabitants are also rich sources of knowledge and skills) and thus the challenge also includes “bundling” the product – usefully integrating the new inhabitants into the local culture: This should be the USP of the project.

Note: For this project you should concentrate on existing real estate; business plans from undergraduates trying to be major property developers fail to be believable.

Create A Business Plan using the Background above
Business plan can be between 2 and 300(typical 30) pages long, with a large margin (2.5cm). So investors have space to take notes. The font size should not be less than 11 points (max.13, titles max.16) with 1.5 line spacing. Tables and graphics should be very simple, preferably in monochrome because full colour can appear garish, and accepted business plan will be photocopied, so you may as well get correct black/grey/white balance from the start. Pages should be numbered, and appendices clearly labelled. Typically the contents of a business plan will consist of the 16 classical elements:

Business plan
The business plan when finish must have the following
• How the innovation is manageable and how it will be managed.
• Finding new way to deliver customer satisfaction.
• How competitive advantage will be built upon.
• What the strategy is and why.
• How upon success, the inevitable rise of competitors will be countered and negated
1.the business plan normally start with a cover page, stamped ‘confidential’, and containing a title and a name and address of the author.one may also wish to include the mission statement on the title page, and according to the length, a table of content may be useful. In some countries(including the UK)it is usual to include the disclaimer at the bottom of the title page:

1.Mission statement
2.Executive summary
3.The business Idea
4.Background.
5.Ownership and Company structure
6.The Team: Leadership Board of directors. Accountants and lawyers(Names od board of directors (Bright Morgan Goodett,Govin sharnan,Fouhrul Islam, Yves ngassoue)
7. The product/service
8.The marketing plan
9. Sales and distribution
10. Competitors step1.(a. identify some companies in the same market and compare
(b. plot the competitors on graph using pairs of characters e.g.
price/quality.
(c. Regional coverage)
(d. Degree of vertical integration)
(e. Breath of product line)
(f. Need/use of distribution channel)
(g. Degree of service/after sales service)
step 2. Compare the list generated from step 1 to find significant
Differentiating characteristics .
step 3. Assign firms that fall into approximately the same strategy
space to the strategic group.
Step 4. Draw circles around each group identified, where the
circle
area is proportional to the size of the group market share. Rate
firms on the scale from 1 to 100
step 5. weigh the critical success factors by importance
step 6 . multiply rate by weighted rate.
Step 7. Sum the weighted values and evaluate by comparing them
with your own.
11. Customers
12. The Budgets
13. Investments needs
Relative market share
Market growth High Low
High Rising Star
Invest Problem Child
Opportunistic development
Low Cash Cow
Maintain Dog
Kill or divest

14. Any barriers
15. Profit and exit