A start-up business is one that is temporary and searches for scalable business models. They are the newly created businesses which have been in the industry for a remarkably short time. The most noteworthy aspect for the success of a business is a business plan. This is a series of arrangements on how business activities are going to be conducted. It is a formal statement with the objectives of a business, reasons why they are believed attainable and plan to reach these goals. The better the business plan, the better are the chances of success of the business. In a country like Turkey, there are many business organizations dealing with a wide range of products. Therefore, starting a new business in the country requires adequate preparation for challenges to come. This is where a business plan comes into the equation. Its presence acts as a guideline for the people involved in the business.
General Company Description
This business is to be in the retail sector. Its name shall be “Circles foot and wear”. The location of the company shall be in Turkey’s capital of industrialization and productivity, Istanbul. It shall mainly be concerned with customer satisfaction. It also aims at being the best retail seller of sports shoes in Turkey, in some years to come. Therefore, it will supply the best products available, as well as the latest trends. In order to achieve this goal, business will specialize on sports shoes only (Pakroo 2006). The business shall conduct its operations on a large scale. Therefore, it should not require the amount of stock required by a large scale business. This business will only have one branch and one manager. The labor force will not be as large as that of a big business. Just 3-5 laborers will be enough to carry out the activities required. All the factors in the business will be at a small scale, especially at the start.
Products and Services
In terms of products and services, the main aim of the business will be to provide excellent goods and services to customers. The provision of excellent goods and services makes sure that the customers always want to come back for more. It copes with the competition posed by the other pre-existing companies. This is because the products and services in the business are satisfying the clients’ needs. In order to achieve this, the business shall focus and emphasize on the products which have reached the required standards. These are products that are durable and attractive to the customers. The services shall also be of the highest standards. The customers shall be treated with the utmost respect, and their views listened. Therefore, there shall be training to the workers to make sure that they are conversant with this fact. This shall make sure that customers get satisfied with the manner in which they are treated. After-sales services shall also be emphasized in the business. For example, once the customer has bought the sports shoes, the shoes shall be well packed in boxes with the company’s name. When a customer buys more than three pairs of shoes, he/she shall receive a small appreciation gift. This shall build a strong relationship with the customers.
The business will mainly deal with sports shoes. There are other products that will be provided in the business. However, these are products that will be required as a result of the purchase of the sports shoes. These are products such as socks, soles, laces and others that may be seen necessary. These other products shall be sold at relatively lower prices. This will lure the customers into buying the products.
The marketing of a product is as valuable as starting the business. This is because marketing brings more customers to the firm. This means more sales, as well as profits. Therefore, the business shall follow a number of marketing strategies. First of all, advertising shall be done before, during and after the launch of the business. This shall be done through the media in Turkey. Marketing shall not be conducted so often, and the advertisement shall mainly be in the newspapers, in Turkey for everyone to see, due to the limited funds. In the advertisement, the business shall emphasize on the uniqueness and quality of its product. The aim of this is to differentiate the product from those of other businesses, whereby interest shall be created in the customers. They shall want to explore this new business. The promise of superior products is a key customer attraction. Therefore, it shall be emphasized on the advertisements.
The price of the sports shoes shall range from 100 to 150 dollars. However, offers shall constantly be advertised, for all customers to see. These shall be offers like discounts during occasions. For example, during Christmas holiday, the business can offer discounts on the purchase of every product. These holiday offers make a business popular and creates lasting customers. This is because the main attraction of customers is low prices at constant quality (McKeever 2010). However, these discounts shall not be all round the year. They shall only be offered on seasons, especially festive seasons. Excessive offering of discounts can lead to reduced profit margins or even losses that are not anticipated. The other vital step in marketing is research on the marketing structure in the country. Expert reports on the marketing structure can go a long way in improving and acquiring reliable market strategies.
The Operational Plan
The business shall have a unique way of operation. This will differentiate it from the other existing businesses. First of all, the method and mode of payment is necessary. The payments shall only be done on cash-on-delivery basis. Other forms of payments shall not be allowed. The uses of other methods, like electronic money transfer, have been misused in the past. They give some customers the chance to commit fraud. Therefore, such payments shall not be accepted. This shall make sure that no money is lost through tricky customers. Besides, the money transfers that can occur in the sale of shoes are considerably small. The other strategy in the mode of operation of the business is on the time of work. The business shall be open for 12 hours in a day at the beginning of the business. After some time, observation on the customer patterns shall be done to decide on the working hours. If the night orders happen to increase, the business shall consider a 24-hour system. This shall call for the employment of more workers who shall be working in shifts (Pinson 2000). This shall increase the competitiveness of the business. The reason behind this is that most of the firms in the industry do not operate for 24 hours. Therefore, such an operational plan shall be an added advantage for the business. However, if there are no customers at night, the business shall consider embarking on the 12 hour operation plan. This is because the night workers shall still require pay which may not be provided by business. At the start of the business, there shall only be one branch. However, when the business grows in the future, there shall be a consideration of opening up branches from all over the country. However, the management shall still be centralized. The main managing team shall be situated in Istanbul.
The orders shall be done in bulk in order to enjoy economies of scale. The main aim of the business is earning of profits. Therefore, the reduction of costs can serve the best interests of the business. When the shoes are ordered in large scale, the transport shall be provided by the supplying company. It shall also give the business bargaining power. Therefore, the goods shall be acquired at a relatively low price. This shall ensure the maximization of profits by the business. The management shall keep clear and complete records on all the orders made. All the invoices shall be well stored for the purpose of retrieval when needed. This shall ensure that the cost of the stock is kept in check for the purpose of profit calculation. The regularity of making the orders shall depend on the sales of the business.
In the orders, the business shall use the workers who have been in the market for quite some time. This is because the people of Turkey like dealing with familiar people. Therefore, the people from the region enjoy the advantage to cultivate a healthy relationship with the suppliers, as well as the customers. They can even negotiate for better prices, especially when buying in bulk. Therefore, there shall be a strong consideration when employing the workers. They should not only have experience in the job but also in the city of Istanbul. Before the suppliers are identified, extensive research shall be conducted. There shall be comparisons between the different suppliers of the shoes. The first priority shall be given to the quality of the shoes. Thereafter, the price of the supplying firms shall be considered. Therefore, the company shall choose the firm with the best quality products at the fairest price.
The orders shall be for the best and latest models of the shoes. This is because there are some models which are outdated. Therefore, the stocking of such products can cause the existence of a lot of dead stock apart from the supply side of the orders; there shall also be the demand side of the orders. The business shall employ a specialist to look for such orders in institutions which has sports taking place. This shall ensure that the orders are made in large scale. Such institutions would prefer a constant and consistent supplier. Therefore, this calls for the need to have enough stock in the business at all times. The stock shall also consist of a wide range of products to make sure that the tastes and preferences of the customers are reached and satisfied.
Research on Turkey Retail Market
The existence and identification of a market is ideal for the business. It is difficult for a new business to fit into the market if the owners have limited knowledge of what is awaiting them. It is also crucial to identify and analyze all the potential competitors in the market. This can help in coming up with strategies in dealing with the competition. Therefore, before the launch of the business, a group of researchers shall be employed. Their main work shall be the observation, analysis and presentation of the retail market in Turkey. After this, they shall come up with recommendations on what should be done to fit into the market. This can only be effective if the researchers employed are qualified, experienced and dedicated. Therefore, care shall be taken in identifying the people who shall conduct the research. The research shall not only constitute economic factors. The researchers shall also consider the culture of the people in Turkey, especially Istanbul.
The Turkey retail market in Istanbul is quite promising. With a population of about 13 million people, there are a large number of people who can provide the market for the products. The city also has many people who are actively involved in sports. Therefore, the demand for the sports shoes is expected to be high. This calls for a more reliable supplier who can provide the required goods whenever there is a shortage in the stock. Therefore, the management shall ensure that the supplier of the business is credible and reliable.
Management and Organization
The main area of interest in the plan of the business shall be in the management. This is because management is responsible for the control of all the other factors. Labor, marketing and all the other factors run smoothly if the management of a business is intact. Therefore, a lot of concentration shall be required in the determination of the managing team. In the management, the qualification of the manager shall be extremely emphasized. They shall have work experience of about five years. This shall make sure that the business is in the hands of people who have the ability to deal with emerging issues of all kinds. The managing team shall only consist of two such people. This is because it is just a retail business. Therefore, the employment of more managers might be considered as the business grows.
The management of the business shall be centralized. There shall be a manager at the business to whom all the workers are answerable. However, there shall be a lot of democracy and freedom for the workers. This shall make sure that there is a pleasant working environment. When the management is so uptight on the employees, they tend to be rebellious and uncooperative. On the other hand, granting freedom to the workers encourages innovation and invention. Therefore, the business shall actively involve the workers in the decision making process. They shall not have the final say. However, their views shall be taken into consideration during decision making. Communication between the workers and management shall also be deemed necessary. This is because it allows for quick flow of information. When objectives are set in most businesses, they live to remain in the mouths of the managers only. This is because there are no proper communication skills and relations between the workers and management. Although objectives and orders are produced by the management, they cannot achieve the implementation without the labor (Burk 2006). Therefore, there shall be proper means of communication and healthy relationships between these two parties. This relationship shall be enhanced by the organizing of trips for the managers as well as the other workers. This shall allow them more interaction.
The other crucial issue on the business is security. Istanbul is a large city that has numerous criminals who engage in organized crime. Therefore, the issue of security shall be given a priority. However, the firm shall not be able to employ security officers from large security firms. This is because of the limited funds at the beginning of the business. Therefore, the business shall employ a security officer whose services shall not be expensive. However, this officer shall need to have clear records and minimum qualifications. This is because they shall be entrusted with the business especially at night. Therefore, the company that the security officer shall come from shall be credible and reliable. On the issue of security, the business shall be insured against all sorts of risks, ranging from fire, theft and many others. The other vital fact is about the scheduling of business appointments. All the business appointments should be schedules one or two weeks in advance. This applies for meetings with suppliers, workers or government officials. It offers the people involved ample preparation time before the time of the appointment.
Startup Expenses and Capitalization
There shall be quite a number of expenses that shall require enormous funds at the start of the business. For example, the starting stock shall be necessary. A large number of the sports shoes shall be used to start the business. This shall be done in order to encourage and improve the business relations with the suppliers. The rent in such a large town shall be expected to be high. Therefore, other sources of capital shall have to be considered. Payment for legal requirements and employment of workers are some of the other expenses that shall require enough starting capital. Therefore, huge amounts of funds shall be required. The main source of capital shall be personal savings. However, the savings might not be enough. Therefore, the business shall request for a loan from the bank. This loan shall be received at suitable and friendly terms. This is because the excellence of the business is not guaranteed. Therefore, there might be difficulties in repayment if the terms are not friendly.
The other source of subsequent capital shall be the plough-back of profit. Whenever profits are made in the business, they shall be brought back in the business to buy stock as well as run some other expenses. This method of capital creation ensures that the business is growing. Otherwise, if the profit is always spent, the business does not develop. Instead, it remains at the same financial position for a considerably long time. Therefore, the management shall emphasize on the increase of stock using the profits that shall be realized (Bangs 2002).
From the essay of above, it is clear that the success of a business is not automatic or by luck. It requires a lot of technicalities. This is mainly in preparation to start up the new business. Before the business can start functioning, a lot of measures have to be taken. These measures are then narrowed down to a single business plan with the necessary activities for success. These help the business to catch up with the industry and keep up with the existing competition from bigger and older firms. Therefore, every person thinking of starting up a small business should consider the above named factors.