Business Proposal Essay

Question:

What is the main aim of a business proposal?

Answer:

The business proposal aims to set up a candle shops in different cities of New Zealand. Candle business can be profitable if the environmental factors that affect the business are taken into consideration. An in-depth research study can identify these factors and their effect on the business performance, the target market, expected sales revenue and profitability for the business. The research procedure and the analysis of the results have been outlines in the report.

Introduction

About me

I am _(your name)_ and I have worked in the marketing line and as a location and budget consultant for two private firms and have an intensive experience in New Zealand and New Zealand. I have had an experience of three years in this field and had attained the expertise from my team’s leader back then through which I got the inspiration of bringing the candle business to New Zealand.

Skills, Experience, and Qualifications

I have an advance level skill set in communication skills, management (primarily related to retail and marketing management) and have had an experience of five years studying, training and on the field jobs

I did my management from the (your college) and after that had a diploma from a private university for marketing practices. More than my studies, I have been inclined towards the knowledge I gained from on the field jobs and had helped in setting up more than 50 stores for the two firms, and most of the shops are blooming right now.

Strengths

  • Able to entrust the clients comfortably
  • Assess the marketplace diligently
  • Able to work with a team without being bossy

The idea

The business proposal is about setting up various candle shops in New Zealand at the main city centres of 3 4cities such as Wellington, Auckland, Hamilton and Napier. The idea is to establish the stores along with the in-house manufacturing facility near the commercial centre on Emerson Street of Napier. This area is highly populated with restaurants, eateries, caf?s and various retail outlets. City Centre of Napier is a suitable administrative centre to set up a new business, and it also has the potential to attract a large footfall as the competition in the locality is not much in this niche industry. If marketed properly, the candle shop can turn out to be one major crowd-puller. The proposal reflects upon the concept and focuses on the strategic objectives of the business and tools to achieve the same.

Commercial manufacturing of candles can be a niche profit making business. In a developed nation such as New Zealand, the energy sector is well-developed, and the primary focus is on fossil fuel (New Zealand Energy Regulator, 2015). Though the lower middle class or economically deprived sections still can be drawn towards purchasing candles as a low-cost source of energy. On the other hand, colourful and scented candles can be projected to the upper socio-economic segments as a decorative item to enhance the interior beauty of a home. Custom-shaped candles (shaped like special characters or animals), candles designed for the use in churches, candles with embedded jewellery, unity candles (for the purpose of the wedding) are the variants that the business can include in its portfolio of offerings in a developed market (Larkin, n.d.).

Research and data collection

The data which was recorded during the study is required to be processed. Then several data mining tools & techniques will be necessary for predicting the result of this survey and then draw out analysis.

The personal information is required to be kept confidential out of the complete information collected for protecting person’s privacy. This will include –

  • Age group
  • Name
  • Location
  • Gender
  • Latest qualification
  • Family income

Along with the age database, household income and latest requirement, which are essential for evaluating the socio-economic position of the person, the remaining data will be required for convenience and identity.

In the following sections, questions can be asked soliciting information on the willingness to purchase candles and the regular sources of energy that the respondent or his family or the business are dependent upon. This section will include –

  • Whether the region has electricity coverage
  • Whether there is frequent and lengthy power cut in the household or the business
  • What are the alternative sources of energy used (such as inverters, power generators or candles)
  • The annual maintenance cost of the alternate source of energy
  • Whether candles are more environment-friendly in comparison with other alternatives
  • Whether the features added (scent, colour, etc.) are compelling enough for the purchase decision to be favourable

As per the given parameters, some cross-tabulation (Virginia Tech, 1999) can be carried out –

Cross-tabulation of sample data (prepared as a mock analysis)

Willingness to purchase candles

Total

Income Group

Yes

No

Mid-Income Group

1000

1250

2250

Low-Income Group

1750

2000

3750

Total

2750

3250

6000

Correlation analysis of interval data (Boston University School of Public Health, 2013)and chi-square tests(StatTrek, 2016) for nominal and ordinal data can be computed between the attributes and variables to figure out whether there is any correlation between them or not.

Statistical measures of central tendency (Laerd Statistics, 2013) such as mean, median and mode of the age of people prepared to buy the candles can be computed. One can also estimate the total annual sales revenue through proper estimation techniques on the response given by the potential customers on a willingness to purchase candles "definitely yes, “probably yes, “indifferent, "probably no" and "definitely no." The sample statistic can be estimated for the entire population with suitable estimation techniques.

Competition and market

Organization

Differences

Our candle start-up

We will focus on every section of society with a different range of candles for various purposes; promotion will be bang on target through every social and paper media. Some retail stores after initial 3months

Golden Glow Candles

Offer both wholesale and retail pricing structures but they lack good promotion and pricing, and the retail stores are limited

Candle manufacturer.com

contract manufacturer, good and superior quality, provide custom designs, fragrance candles for vivid markets but do not focus on the middle and lower class New Zealand people and Australia

Price & product

We will keep our prices starting for the necessary birthday candles at $1.5, and it will range till $9 for a pack of two for the smokeless candles. The lotus scented and other scented candles will be available at $7. This is a price much lower than our competitors although we will soon upgrade our prices once we settle our business in a proper manner

Products

Most of our products are similar to our competitors, but we have introduced the products under different and transparent segments

The products will include

  • Basic candles
  • Scented candles
  • Personalized candles
  • Smokeless candles
  • Hanging candle showpieces
  • Long burning candles

Promotion

We will distribute pamphlets in the various bakery and cookie shops as these stores attract the typical customers.

Secondly, we will use the social media for promoting our new start-up in an emphatic manner and especially as per the festival seasons; we will introduce an exclusive line of our candles.

Now the following table is our proposed promotional budget

2016

September

October

November

Pamphlets

$800

$600

$600

Social Media

$600

$600

$500

Telecom Yellow Pages

-

$400

$400

Contacting bakery and similar stores for promotion

$200

$100

$100

Total

$1600

$1700

$1600

Sub total

$4,900


Goals and our basic plan

For reaching a deterministic conclusion, the research goals can be simplified into following objectives –

  1. Determine the external and internal factors that may affect the business
  2. Identify the target market for the firm and the market penetration level on a yearly basis
  3. Estimate the annual sales revenue through sampling and market testing of the product prototype
  4. Carry out a profitability analysis subject to various factors (sensitivity analysis) that affect the business

Our primary planning would be like this

Financial forecast

Conclusion

The alternative sources of energy are far more attractive and affordable as well since the disposable income of people in New Zealand is higher. Though there are favourable conditions that can result in higher sales of candles. The research data need to be analysed with complex analytical tools to figure out the potential trends and estimated profitability analysis for the business to grow in the first five years. This paper would be enough for proving our credibility for this business.

References

  1. New Zealandn Energy Regulator, 2015. State of the energy market 2015, l.: New Zealandn Energy Regulator.
  2. Boston University School of Public Health, 2013. Introduction to Correlation and Regression Analysis. [Online]
    Available at:
    [Accessed 13 May 2016].
  3. Fryrear, A., 2015. Survey Response Rates. [Online]
    Available at:
    [Accessed 13 May 2016].
  4. Laerd Statistics, 2013. Measures of Central Tendency. [Online]
    Available at:
    [Accessed 13 May 2016].
  5. Larkin, K., n.d. Candle Making Business Start-Up Guide. [Online]
    Available at:
    [Accessed 13 May 2016].
  6. Smith, S., 2013. Determining Sample Size: How to Ensure You Get the Correct Sample Size. [Online]
    Available at:
    [Accessed 5 May 2016].
  7. Society for Each Other, 2009. Candle Making Program. [Online]
    Available at:
    [Accessed 9 May 2016].
  8. StatTrek, 2016. Chi-Square Test for Independence. [Online]
    Available at:
    [Accessed 13 May 2016].
  9. StatTrek, 2016. CLuster Sampling. [Online]
    Available at:
    [Accessed 13 May 2016].
  10. Virginia Tech, 1999. Crosstabulations: Statistical Significance of the Relationship Between Two or More Catagorical Variables. [Online]
    Available at:
    [Accessed 13 May 2016].
  11. Weisstein, E., 2016. Hypothesis Testing. [Online]
    Available at:
    [Accessed 13 May 2016].
  12. Yale University, 2016. Confidence Intervals. [Online]
    Available at:
    [Accessed 13 May 2016].

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