Flight School Business Plan

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Executive Summary Objectives Mission Keys to Success Company Summary Company Ownership Start-up Summary Company Locations and Facilities Services Service Description Competitive Comparison Future Services Market Analysis Summary Market Segmentation Target Market Segment Strategy Market Needs Market Trends Market Growth Service Business Analysis Competition and Buying Patterns Management Summary Organizational Structure

Executive Summary Statesville Flight School will offer private and commercial pilot training to aviation enthusiasts. Statesville Flight School will provide flight instruction as well as providing self-fly hire for licensed pilots. We will be located at Capital City Airport, Statesville and we have a modern fleet of aircraft available for business or pleasure 24 hours a day. All aircraft are well maintained and have modern avionics (including GPS receivers). Statesville Flight School will allow customers to sample the experience of piloting an aircraft with a trial flight. Trial Flights are very popular as gifts for children of all ages! Christmas, Birthday, Retirement, any occasion really, the vouchers come in Greetings Card form, complete with their own envelope and may be purchased over the telephone by credit or debit card, or in person from the Statesville Flight School office. Besides being an unusual and fun gift, a Trial Flight can often act as an introduction to a Private Pilot’s License, or at the very least, return visits to reexperience and enjoy the thrill of flying. We have aircraft to fit everyone's needs as well as affordable pricing. We offer a starter pack that is an ideal gift for anyone who is interested in learning to fly. The starter pack is made up of the following:      

5 hours dual instruction in a PA38 (Tomahawk) Pilots Personal Log Book PA38 Checklist PA38 Pilot Guide Book H.F.S. Polo-Shirt Student Pilot Personal Folder

Statesville Flight School offer aircraft that are safe, and attractive. All of our aircraft are professionally maintained by certified technicians and they all have top of the range avionics. Statesville Flight School use independent flight instructors with airline backgrounds. Statesville Flight School will also seek to build relationships with corporations and regional airlines offering both training and aircraft rental. Objectives Our three main objectives are that 1

We will manage the business from our own cash-flow ensuring we maintain tight budgeting and show a net profit

2 3

We will use aircraft that not only meet all legal requirements but will be beautifully maintained and presented. We will have a safe environment for our students. We will strictly adhere to all national and state aviation regulations.

Mission Statesville Flight School will offer private and commercial pilot training to aviation enthusiasts. Statesville Flight School will provide flight instruction as well as providing self-fly hire for licensed pilots. Keys to Success 1 2 3 4 5

We will have aircraft ready 24 hours a day ensuring maximum benefit to our students Guaranteed quotes to customers for lessons or aircraft rental. Effective and clear marketing to generate more exposure and word-of-mouth referrals. Pro-active aircraft maintenance that will dramatically reduce aircraft downtime. We will check our aircraft within the national and state guidelines.

Company Summary Statesville Flight School is being formed as a private company offering services to both student pilots and for companies and individuals looking to rent aircraft. Statesville Flight School will operate its aircraft out of Capital City Airport in Capital City, Statesville. The aircraft records, scheduling, and office will be located at our onsite airport location. Company Ownership Statesville Flight School has been created and legally organized as a Statesville Limited Liability Company based in Capital City, Statesville. Start-up Summary A small aircraft rental business is likely to specialize in one or two aircraft. Obtaining even a basic model can be extremely expensive. One of the most popular aircraft for PPL training is the Cessna 152, a two-seater, costing around $20,000 (plus VAT) second-hand. A second-hand four-seater Cessna 172 costs around $40,000. Other models include the Piper Warrior ($42,000) and Cherokee ($54,000); both prices are for second-hand models. Prices will vary depending on the aircraft’s age and condition; larger craft are considerably more expensive. New micro lights range from $15,000-$25,000, depending on model. Trade journals can be checked for sale and leasing prices. Aircraft maintenance, hangarage, and insurance for a hard working aircraft can be $12,000 per year. Landing and parking fees should be considered. Flying license fees will have to be paid. An office and extra rooms for ground lessons and perhaps residential courses will need to be furnished. The latter will boost initial costs considerably with additional furniture, fittings and decoration. Ongoing costs include catering, fuel, electricity and cleaning materials. Costs will include qualified staff, as the majority of schools have their own examiners so that flight and ground tests can be taken there. Restrictions imposed by the new JAR-FCL regulations prevents examiners from examining pilots with whom they have flown as instructors, which may mean having to hire freelance The start-up costs of Statesville Flight School are approximately $52,500 that includes hanger and aircraft down payments. The start-up costs of Statesville Flight School include   

Aircraft down payment. Hangar deposit with three months rent. GPS receivers

 

Office expenses. Legal costs.

Start-up Expenses Legal Fees Office Supplies / Expenses Aircraft Insurance Hanger Rental

$1,000 $1,000 $2,500 $1,000



Assets GPS Receivers Aircraft down payment Computer equipment

$1,000 $36,000 $3,000

Total Start-up Expenses


Cash Balance on Starting Date


Total Requirements


Funding Investment John Smith Loan

$30,000 $30,000

Total Investment


Company Locations and Facilities The aircraft will be hangared at Capital City Airport along with our offices.

Services Statesville Flight School will offer private and commercial pilot training to aviation enthusiasts. Statesville Flight School will provide flight instruction as well as providing self-fly hire for licensed pilots. Aircraft rental and flight instruction We will have access to the following aircraft through financial arrangements with their owners.     

 

   

Cessna 152 - The Cessna 152 is the most popular trainer in the world. Very durable and forgiving, these two seaters make great trainers. Cessna 172 - The Cessna 172 also provides an excellent training platform and is one of the most popular airplanes ever built. PA38 (Tomahawk) Piper Warrior - If you would like more space, the Piper Warrior may be a better fit during the training period and subsequent recreational flying. Archer - When you want a little more speed and carrying capacity for longer excursions, you may find the Archer serving your needs. This fixed gear aircraft is reliable and easy to fly. Superhawk - The Superhawk is faster and can carry more load than the standard 172. This makes it a good cross-country aircraft. Cessna 182 - The Cessna-182 is a comfortable and spacious 4-place plane. It is a good choice for trips for four people and some baggage. It is a relatively fast fixed gear aircraft as well and a good transition to complex aircraft. Cessna 182 - This 1999 Cessna-182 is well equipped and luxurious. Cessna 172RG - When you are ready to step up to retractable gear aircraft, the ...Cessna 172RG... Arrow II - ...and the Arrow II are excellent aircraft for that transition. Comanche - When you have accumulated enough hours and skill, you may find the Comanche the ideal plane for the really long trip to Mexico or Canada. Cessna 210 - The Cessna-210 is an excellent single-engine traveler. It is fast and can carry six people plus baggage. It is a high performance aircraft which requires some time in complex aircraft as preparation for this craft. The Cessna-210 is a good choice for long distance trips for the family. Citabria 7KCAB - The Citabria 7KCAB is a sport aircraft which requires additional special training. It is aerobatic and a favorite of seasoned pilots.

Private pilot:    

40 hours flight (aircraft) x $63+Tax = $ 2671.20 30 hours flight instruction x $25 = $ 750 20 hours ground instruction x $25 = $ 500 Materials = $ 350

Total = $ 4271.20

Time building (cross country): NOTE: 50 hours cross country PIC time are required before taking the instrument rating practical test. Out of these 50 hours, 5 hours have already been done for the private, and another 5 hours will be done during training for the instrument rating with an instructor. 

40 hours flight (aircraft) x $63+Tax = $ 2671.20

Instrument rating: NOTE: The instrument rating requires 40 hours of simulated or actual instrument flight hours. A minimum of 15 hours out of it must be in an airplane as dual instruction and the rest will be done as simulated with a safety pilot while building CC as PIC. We require a one (1) hour ground lesson for each flight lesson from the Gleim instrument syllabus.    

25 hours flight (aircraft) x $63+Tax = $ 1669.50 25 hours flight instruction x $25 = $ 625 25 hours ground instruction x $25 = $ 625 Materials = $ 60

Total = $ 2979.50

Total (Private + Instrument-Single) = $ 9921.90 Time building: Note: These hours are needed in order to get close to the minimum 250 hours required for the commercial license practical test. Simulator hours are offered at Broward Community College's Aviation Institute.  

71 hours flight (aircraft) x $63+Tax = $ 4741.38 50 hours simulator ($125 for 15 hours)

Total = $ 4741.38

Commercial (single & multi) + cfi:       

4 hours flight (aircraft-single complex) x $80+Tax = $ 339.20 10 hours flight (aircraft-single) x $63+Tax = $ 667.80 14 hours flight instruction x $25 = $ 350 10 hours flight (aircraft-multi) x $165+Tax = $ 1749 10 hours flight instruction (multi) x $30 = $ 300 10 hours ground instruction x $25 = $ 250 Materials = $ 100

Total = $ 3756.00

Complete program (Private + Instrument + Commercial Single & Multi + CFI) Total = $ 18419.78 Housing accommodations start at $209 per week or $49 per night in motels around the Capital City Airport area. We also have private housing accommodations ranging from $20 per night to $30 per night. We offer a starter pack that is an ideal gift for anyone who is interested in learning to fly. The starter pack is made up of the following:      

5 hours dual instruction in a PA38 (Tomahawk) Pilots Personal Log Book PA38 Checklist PA38 Pilot Guide Book H.F.S. Polo-Shirt Student Pilot Personal Folder

We also offer Special Training Post PPL Training - Advanced Handling Course Learn to fly with Statesville Flight School Price: $ 359 Have you ever wondered what your aircraft is capable of? By doing the advanced handling course you would find out in no time. The course is made up of four 1-hour lessons; this meaning that it could be done in just a couple of days! -

Lesson 1: Performance / Short Field Take-off & Landings Lesson 2: Grass Field operations Lesson 3: Spinning Lesson 4: Chandelles & Lazy Eight's

Post PPL Training - IMC Rating Price: $ 1.720 An Instrument Meteorological Conditions (IMC) Rating extends the privileges of a PPL (A) holder to allow flight as pilot-in-command (PIC

1 2 3 4

In a control zone on a special VFR clearance with visibility less than 10km but Out of sight of the surface not less than 3km When in IMC outside controlled airspace During take-off or landing with a flight visibility below cloud of not less than 1800m.

Safety Pilot Course Learn to land safety Price: $ 549 Are you a regular passenger in a light aircraft? Are you worried about the prospect of your pilot becoming incapacitated? Want to learn how to land safely, just in case the unthinkable happens? The safety pilot course comprises of six lessons. Additional Services As well as offering pilot training we opened the company to fill the need of executive corporate travel needs in the Statesville area. We will act as a management company to relieve aircraft owners of the details, maintenance and day-to-day operation of their respective flight departments, providing a "turn key" approach to aircraft management. What your customers will want to know Aircraft Rental Requirements Aircraft Rental… If you wish only to rent an aircraft from a school that is new to you, you will find they expect a certain level of professionalism from you as much as you will of them. The level of professionalism is a direct reflection of the school’s quality. One, some or all of the following points may apply:        

What will a renter typically expect of you? Current & relevant licenses / certificates or ratings. A current medical certificate. Proof of aircraft insurance. One on one ground school with an instructor to assess your knowledge. Systems ground school for the aircraft you wish to rent. A checkout flight in the aircraft you wish to rent. A minimum amount of hours in the aircraft you wish to rent before you can fly solo

What to consider of a school / aircraft rental?

             

Well maintained aircraft (i.e. do they perform 50 hr inspections as well as 100 hrs?)(50 hrs is mandatory in the UK but not in the US). Do they hold a Poor / Adequate / Average / Good safety record? Are there off-site maintenance charges (for unscheduled maintenance away from base?) Does the school carry aircraft insurance and personal liability insurance for you? Is there a professional scheduling procedure? Minimum "daily" rental? (Is there a set amount?) (Is daily 12 hrs or 24 hrs?) Awareness of the school’s policy to have all aircraft returned every night? Awareness of whether their prices are wet (i.e. include fuel & oil) or dry (without fuel &oil). This can make a substantial financial difference! Awareness of off-site fuel credits and the maximum price at which fuel will be refunded. Awareness of a school cancellation policy on a flight and how much advanced notice need be given. Awareness of your priority status for a scheduled flight. i.e. How easily could they bump you from a flight in favor of another student? School’s action should your aircraft be down for unscheduled maintenance. i.e. Will they provide you with another aircraft? While renting an aircraft, will the school allow you to maintain all your flying with the aircraft assigned, or will they change the aircraft at their discretion? Does the school impose restrictions on where you can fly to? i.e. out of state or out of country restrictions.

Technology Statesville Flight School will maintain an updated Challenger 601-3R. 1 2 3

The aircraft will have at least two 720-channel radios for legal and practical navigation and communication purposes. The aircraft will have the required equipment and certification necessary to conduct instrument training and actual instrument flight. The aircraft will be continuously upgraded with Statesville Airlines Aviation Technology.

Market Analysis Summary More and more growing companies are choosing air charter travel as the best, most cost-effective mode of business transportation. Once viewed as a "luxury," these companies have come to understand that charter flights actually save them money by maximizing the productivity of their most important assets-their key people. Consider the many advantages: 

Convenience - You fly in and out of smaller general aviation and local airports, which are closer to your destination. No traffic jams or crowded parking lots. No "baggage roulette." We have ample room for luggageeven large bulky items.

Less wasted time - No waiting at ticket counters, boarding gates, or baggage claims. No layovers in crowded airport hubs.

Better schedules - Because we fly on your schedule, we depart and arrive just in time for your appointments. No wasted hotel fees due to limited commercial flight availability.

Flexibility - Do you need to visit multiple sites in a single tour? Stop and pick up a client, then fly to another destination? With air charter travel, you set the itinerary.

En route work efficiency - Turn flight time into productive time. Free from the straightjacket of commercial air seating among strangers, you and your colleagues can review strategies, rehearse a sales presentation, or discuss confidential subjects in a relaxed and private manner.

 Reduced stress - Without the hurry and the hassles of a commercial flight, you and your associates arrive relaxed and ready to do business. As soon as your work is complete, you know your plane will be waiting. 

Every seat is first class - We provide the food and beverages you prefer and accommodate special requests with ease.

This growth has created an increased demand for pilots and there is currently a shortage of qualified pilots. Students An aircraft rental business primarily specializes in private and commercial pilot training. Other services offered may include aircraft sales or leasing, aircraft self-fly hire for licensed pilots, aircraft taxi and charter, aircraft engineering or pleasure flights. The services provided will depend on the renters’ size, which may vary from a two aircraft operation to a fleet of 20 or more. Aircraft renters are located on licensed airfields (flying training for a pilot's license or rating can be provided only from a licensed airfield). There may be several businesses on any particular airfield.

A wide variety of aircraft are used for leisure flying, including conventional light aircraft, micro lights, gyroplanes, foot-launched parachutes and gliders. Light aircraft, such as a conventional single-engine Cessna 152, will normally be used for basic flying training. A common way to start is via a trial lesson. These cost $40-$90, depending on the flight’s duration and the cost of flying in the locality. Following a trial session, many individuals choose to work towards a Private Pilot's License (PPL), which is appropriate for recreational use. Most schools charge around $3,000-$5,000 for a 45 hour licensing course. Anyone learning to fly (or undertaking training for further licenses or ratings) must now do so in accordance with the new system. Fees vary depending on what is included, e.g. ground exams’, flying exams, landing fees, use of flight simulators. Checking advertisements in ‘Pilot’ magazine will help to gauge standard fees and charges. Some schools offer intensive residential courses. Other courses offered (subject to the school’s size and facilities) include night flying, seaplane, Instrument Meteorological Conditions Rating (IMC), and Airline Transport Pilot’s License (ATPL). Microlight training may be offered (lessons cost around $70 per hour). Micro lights are subject to less legislation, so are a popular option. Microlight aircraft may be hired out to qualified pilots at about $40-$60 per flight hour. The number of aerodromes in the US is falling, due to problems with zoning, planning issues, (e.g. noise levels affecting local residents), and restriction on their use. More people are being tempted both to learn and to fly abroad, where the weather is better and lower duty levels on fuel make flying much cheaper. Market Segmentation Statesville Airlines, who are based at the airport, employs 9,000 people. Statesville Airlines are a respected employer and we are in the driving seat in regards to training their pilots. May Statesville Airlines pilots and mechanics have expressed an interest in renting our smaller planes to fly their families during the holidays. There has previously been a problem at Capital City Airport as the smaller aircraft have been poorly maintained. We will make maintenance a priority and operate an open door policy for our students where they can check our maintenance schedules. Whilst Statesville Flight School will focus on students attempting to obtain their private pilot certificate, we will also offer trial and fun flights at reasonable prices to generate local interest. We will offer a range of course including safety and IMC. In addition we will offer sightseeing flights, day tours and traffic watch. Target Market Segment Strategy

Our marketing will target potential students where we will emphasize our qualified instructors and our modern fleet of aircraft that are available 24 hours a day. Our aircraft are well maintained and have modern avionics (including GPS receivers). All potential customers will be sent our brochure where we will show the benefits of training with ourselves and our clear pricing structure. Market Needs Learning to fly is an expensive pastime, but the popular image of prospective pilots as young and wealthy is a misleading one. While, inevitably, some customers will fit this description, many more will not. Although a reasonable level of disposable income is necessary to fund an interest in flying, pilots come from a broad sector of society, although the majority of customers are likely to be male. Offering courses in helicopter flying, micro lights etc will further broaden the customer base. Customers will include those wishing to take a full flying course, those requiring more specialized training and qualified pilots wishing to hire a plane for leisure flying. With the possible exception of intensive residential flying courses, customers are usually from the immediate area. Market Trends Pilot licenses (in the United States, airman certificates) are issued by national aviation authorities, and establish that the holder has been trained by a qualified flight instructor and has met a specific set of knowledge and experience requirements. The licensed or certificated pilot can then exercise a specific set of privileges in the nation’s airspace. Despite attempts to harmonize the requirements between nations, the differences in certification practices and standards from place to place serve to limit full international validity of the national qualifications. In the U.S., airman certificates are issued by the Federal Aviation Administration (FAA) — and pilots are certificated, not licensed, although the word license (note the spelling) is still commonly used informally. Legally airman certificates can be revoked by administrative action; whereas Licensing requires intervention by the judiciary system. In Canada, licenses are issued by Transport Canada, and in the United Kingdom by the Civil Aviation Authority (CAA). At all times, an aircraft in flight must be under the authority of an appropriately qualified pilot, the pilot in command, who is responsible for the safe and legal completion of the flight. Pilots are qualified to fly at a specific privilege level and in one or more specific categories of aircraft. Examples of privilege levels found in most countries are: 

Student: the pilot can be trained by an instructor for his or her first full certificate and is permitted to fly alone (solo) under specified circumstances.

Private: the pilot can fly for his or her own pleasure and is not allowed to accept compensation for flying except in some specific circumstances.  Commercial: the pilot can fly for hire.  Airline Transport: the pilot can be the captain for a scheduled airline. The licenses are also further broken down into category, class, and in some cases, rating. A category is defined as "a broad classification of aircraft", broken down into Airplane, Rotorcraft, Glider, and Lighter-Than-Air. A class is defined as "a classification of aircraft within a category having similar operating characteristics", which include single engine, multi-engine, land, water, gyroplane, helicopter, airship, and free balloon. In addition, a type rating is required for aircraft over 12,500 pounds, or aircraft which are turbojet powered. Further endorsements are required for high performance (200 horsepower or greater), complex (retractable landing gear, flaps, and a controllable pitch propeller), or tail-wheel equipped aircraft, as well as high altitude operations. Most Private Pilot certificates are issued as "Private Pilot: Airplane Single Engine Land", which means the pilot may employ his piloting privileges in any single engine, land based airplane he is qualified in. A pilot is only qualified in the category and class of aircraft he takes his check-ride in. Therefore, a pilot who takes a Commercial Pilot check-ride in a multi-engine, land-based aircraft and passes may only exercise the privileges of a Commercial Pilot in multi-engine, land-based aircraft. That pilot may not exercise the privileges of a Commercial Pilot in single engine or sea-based aircraft without passing the appropriate parts of a check-ride in those particular categories of aircraft. The typical order in which a pilot obtains ratings is: Private Pilot (35-40 hours total time required) Instrument Rating Commercial Pilot (190-250 hours total time required) Airline Transport Pilot In the course of the Commercial Pilot training, most pilots will also receive their high performance and complex endorsements, as well as get a multi-engine rating before applying for the Airline Transport Pilot license. Others include  

Sport pilot certificate (United States only), used for Light-sport aircraft, a category that was designated in 2004. These aircraft are larger and faster than U.S. ultralights, and carry more fuel and often one passenger. The ultralight category of aircraft in the U.S. requires no specific training and no certification.

The pilot can separately add certain ratings such as the instrument rating. Market Growth Our research shows that currently training aircraft at Capital City Airport are averaging 38.5 hours of flying per month. There is a regular stream of students, and

there are an increasing number of potential customers looking to obtain a pilot's license. Service Business Analysis Brochures should be distributed in higher education establishments, libraries, tourist information centers, sports shops, leisure centers and in local airports, if permitted. Advertisements for flight tuition can be placed in local newspapers, Yellow Pages and the aviation press. Promotional literature should outline any special offers, e.g. student discount or half price first lesson. Flying schools offer gift packs and vouchers for flights for special occasions where the aircraft will cruise at around 2,000 feet and an instructor will identify local landmarks. This will usually be seasonal, from May to September. Trade association membership may prove useful, as individuals often contact the associations for recommendations of suitable local schools. The Microlight Aircraft Association and the Gliding Association publish directories of schools and clubs. ‘Pilot’ also publishes lists every spring. A website may be a useful promotional tool. As the majority of customers will be paying substantial amounts for lessons, the school should be clean, tidy and well furnished, with a comfortable lounge and briefing areas. There should be adequate provision of toilets and refreshments. The aircraft must be in good condition. It is not enough just to satisfy the rules; the aircraft must look well cared for. For example the upholstery must be clean and in good condition and the aircraft must be equipped with headsets for the instructor and trainee to communicate clearly. Competition and Buying Patterns It will be vital that we use word-of-mouth advertising as this is the most important way of gaining customers. All pilots talk to other pilots and we must ensure that we communicate with our customers to ensure we are aware of all of their issues and that they give good reports to other potential pilots. This is particularly important to those customers looking for “fun” flights. There are many potential customers who will take introductory flights and we need to ensure that they take full training courses.

Management Summary Statesville Flight School is being formed as a private company offering services to both student pilots and for companies and individuals looking to rent aircraft. Statesville Flight School will operate its aircraft out of Capital City Airport in Capital City, Statesville. The aircraft records, scheduling, and office will be located at our onsite airport location. Company Ownership Statesville Flight School has been created and legally organized as a Statesville Limited Liability Company based in Capital City, Statesville. Management Team John Smith will ensure that the company operates in accordance with the company mission statement.

Strategic Direction SWOT Analysis This is a summary of the business's most important strengths, weaknesses, opportunities and threats. Strengths of the Business Excellent quality product "Which means that" Adds to reputation. Good management skills. "Which means that" Well run business Good ability to extract information. "Which means that" Can control the business.Weaknesses of the Business New Player. "Which means that" Credibility problem may affect initial sales Lack of systems "Which means that" The company needs to develop systemised operational & sales techniques or sacrifice profits Opportunities in the Marketplace Add-on products such as ** "Which means that" A potentially enormous market for {YOUR COMPANY NAME} to tap into. Growing market segments. "Which means that" {YOUR COMPANY NAME} should target these segments. Threats in the Marketplace Increasing supplier prices. "Which means that" Resulting in reduced profitability. Declining size of the ** segment. "Which means that" Need to focus on growing segments to spread the company's portfolio

The Actual Plan Business Objectives Corporate Objectives (Goals) Short Term Corporate To achieve a sales level of $xxxxx To achieve profit level of xx% Long Term Corporate To achieve sales in 200B of $xxxxx To achieve sales in 200C of $xxxxx To achieve sales in 200D of $xxxxx Marketing Objectives (Goals) {your product} #1 Segment: #2 Segment: #3 Segment: Other:

To achieve sales to $xxxxxx To achieve sales to $xxxxxx To achieve sales to $xxxxxx To achieve sales to $xxxxxx

New Products To evaluate and launch new products or services which will turn over $xxxxxx in the first year. Other Objectives (Goals) To not exceed a marketing budget of $xxxxxx To not exceed a payroll budget of $xxxxx To not exceed a general overhead budget of $xxxxxx The major task objectives for each area of the organisation, together with responsibilities and timings are detailed in the Roll-Out Plan.

Marketing Plan


To achieve sales by XX% to $XXX

Sales Objectives by Market Segment. #1 Segment: #2 Segment: #3 Segment: Other

To achieve sales to $xxxxxx To achieve sales to $xxxxxx To achieve sales to $xxxxxx To achieve sales to $xxx

PROMOTIONAL STRATEGIES Print Advertising Develop a corporate brochure. June 200A Advertise in local publications Jan 200A Advertise monthly in magazines that are specifically targeted to the ** and ** segments. Jan 200A Advertise monthly in magazines that are aimed at the general industry. Jan 200A

Lead Generation Program Conduct monthly on-going lead generation program. Send out monthly direct mail leaflets with response coupons. Qualify leads and make appointments by using telemarketing staff. Oct 200A "Centres Of Influence" Program Personally contact at least ten potential partners each week. Produce a monthly newsletter that shows examples of (your products) and how customers have benefited from using them. Oct 200A PR Program

PR release to be initiated each month to various trade journals and magazines. Jul 200A Sales Force Employ telemarketing staff. Sep 200A Employ sales specialist for ** segment. Mar 200A Implement a new structural program for the sales force, allocating sales reps to accounts and segments rather than area. Jan 200A Organise training program to be implemented. Jan 200A Lost Customers Contact monthly all past customers that have not re-ordered to ask why not and see whether we can win back their business. Dec 200A Follow up Enquiries Contact all enquirers monthly and determine if they have purchased from a competitor and, if so, why. Dec 200A Existing Customers Follow up all new customers two weeks after they purchase to ensure they are satisfied with the product. Jul 200A Send quarterly newsletter to existing customers to keep them informed of our other products. Jan 200A Try and up-sell all enquiries for our standard range to our premium range. Feb 200A Sales Promotion Develop an ongoing sales promotion to target existing customers. Aug 200A

PRICING STRATEGIES Price Level Maintain price level in all segments at xx% higher than competitors to reinforce the quality image. Jul 200A Discounts Offer x% discount for payment with order. Jul 200A GENERAL MARKETING STRATEGIES Competitor Profile Keep updated competitor profile. Jun 200A Marketing information system Document on every enquiry "How did you hear about us?" Jul 200A Document on every order "How did you hear about us?". Jul 200A Produce monthly sales reports by product, by market segment, by territory and by sales representative. Mar 200B

Financial Plan FINANCIAL

Next Year's Objectives

Net Profit $xxxxx. Gross Profit

To achieve forecast net profit of


To not exceed the following expense budgets.

To increase the average gross margin for all products from xx% to xx%.

Marketing Budget Payroll Budget Management Overheads

$ xxxxxxx $ xxxxxxx $ xxxxxxx

FINANCIAL STRATEGIES Cash Flow Eliminate cash shortage in the traditional tight periods of December to January Jun 200A Collection Days Reduce the average collection days from xx days to xx days. Jun 200A Payment Days Maintain payment of bills, on average, to xx days. Jun 200A Expenses Develop and implement new policies on approval and signatories on expenses. Mar 200C Leases Pay off the existing lease on capital equipment, thus reducing the monthly financial burden. Jun 200A Overdraft Reduce the overdraft from $xxxxxx to $xxxxxxx Jun 200A Wages Pay all wages on a monthly basis instead of weekly. Jan 200A New Equipment Organise funding for the $xxxxxxx expenditure on new equipment.

Jan 200A Payback Ensure a payback on new equipment through sales of one year. Jun 200B Inventory Improve the number of stock turns to xxxxx a year. Jun 200A Rent Negotiate new terms on the premises and reduce existing payments by xx% Aug 200B Bank Charges Renegotiate with the bank and consolidate some outstanding loans with lower interest rates. Aug 200B

Organisational Plan ORGANISATIONAL AND MANAGEMENT Next Year's Objectives Budget $xxxxxxx Staff

To not exceed the payroll budget of To employ or re-deploy a total of xxxxx fulltime and part-time staff over the next year.

HUMAN RESOURCE STRATEGIES Organisational Draw organisational chart. Aug 200A Develop incentive scheme related to job requirements. Aug 200A Policies and procedures

Develop policies and procedures manual. July 200A Employ or re-deploy staff Employ telemarketers. Sep 200A Employ one specialist ** salesperson. Mar 200A Employ one marketing assistant. Feb 200A Employ one accounts receivable person. Jul 200A Training Carry out training needs analysis. Jan 200A Morale Install suggestion box. Jan 200A Organise monthly meetings to follow up tasks Jan 200A

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