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Page 1: mskalexander.weebly.commskalexander.weebly.com/.../4082297/dormdroppers.docx  · Web viewTABLE OF CONTENTS. Executive Summary. 3-4. Business Overview. 5-8. Business Type5. Licenses/Registrations5

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TABLE OF CONTENTS

Executive Summary.........................................................................................................3-4

Business Overview.......................................................................................................5-8Business Type...............................................................................................................5Licenses/Registrations..................................................................................................5Products/Services..........................................................................................................5Trends and Barriers.......................................................................................................5Customer Profile........................................................................................................5-7Human Resources.........................................................................................................8Operations plan.............................................................................................................8Goals..........................................................................................................................8-9Organization Chart........................................................................................................9

Market Research.......................................................................................................9-14Primary/Secondary Data..........................................................................................9-11Target Market Analysis...............................................................................................11Competitive Analysis.............................................................................................11-12Expected Market Share...............................................................................................12SWOT Analysis.....................................................................................................12-14

Financial Plan..........................................................................................................15-18Start-up Costs..............................................................................................................15Sources of Required Funds/Forecasted Revenues......................................................16Monthly Cash Flow.....................................................................................................17Monthly Income Statement.........................................................................................18

Appendices:

Interview Questions.........................................................................................................A

Job Description...............................................................................................................20

Business Card..................................................................................................................B

Survey Questions.............................................................................................................C

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Executive Summary

Dorm Dropper’s mission is to acquire the satisfaction of every customer. We strive to put

you, the customer, above and beyond all else. We know that life can be busy and who has the

time to hassle with the pains of moving? Our goal is to make your lives just a little bit simpler.

We promise on every delivery to be on time and have it stress free for you, the customer. We

believe that we should be the ones that work hard so you don’t have to. Offering the lowest price

around is what our business is based upon and we promise that our rates will always be the

lowest. Dorm Dropper’s will make that big step in starting your college career just a little bit

easier for you. Dorm Dropper’s hopes to become a part of every college students journey for

years to come.

Dorm Dropper’s will start with three employees, each of these being the drivers. Dorm

Dropper’s target market is college students between the ages of 18 and 25 years of age. Dorm

Dropper’s services range from a two hour radius from our main facility located in Cortland, New

York. Dorm Dropper’s intends to swoop down and acquire the moving market by specifically

targeting college student’s state wide. By having a promotion event at college’s state wide we

can spread the word of Dorm Dropper’s and its services.

In New York State there are over 17 colleges within a two hour radius of our main

facility that we can target. The total number of students that make up the student body for all of

those colleges is over 126,950. But in order to spread our services further, for a customer outside

the two hour radius, Dorm Dropper’s will charge a $.75 per mile for every mile outside our

radius. Dorm Dropper’s expected sales are based on a percent of our local target market, in the

first year Dorm Dropper’s will acquire 10% of the market which equals to 12,695. With

promotions, our website, and word of mouth, we will be able to expand our target market base.

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Startup costs for Dorm Dropper’s will be around $221,000 but will easily be made back in a

short amount of time. Dorm Dropper’s will acquire the required funds by obtaining a loan

through a bank.

Dorm Dropper’s is a sole proprietor business. Dorm Dropper’s founder was inspired by

trying to ease the worries of stressful college student’s transition into college. As a future college

student in the near future, Dorm Dropper’s founder is well aware of the stress it can bring. As a

sole proprietor and with the help of Dorm Dropper’s workers we can successfully and positively

impact thousands of college students lives for years to come.

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Business Overview:

Business Type : Dorm Droppers is a sole proprietor business. Dorm Droppers location will be in

Cortland New York because of its strategic location between multiple colleges but will also offer

a website to its customers at Dorm Dropper's.

Licenses/Registrations: The licenses needed for Dorm Dropper’s to establish is a DBA (Doing

business as) license. Dorm Dropper’s truck drivers will require a class C, New York State

driver’s license, and a CDL. Dorm Droppers will also require product liability insurance to

ensure that Dorm Droppers is protected by any defective moving crates, general liability

insurance which will cover accidents and other legal claims, commercial property insurance

which will insure Dorm Droppers buildings, trucks, and destruction from fire and other natural

disasters are covered. Lastly Dorm Droppers will need workers compensation coverage to pay

Dorm Droppers workers if they are injured on the job and cannot work.

Products and Services : Dorm Dropper’s offers one service to their customers. That service is to

drop off, pick up, and either hold or keep your moving crate until ready for delivery to your next

college place or residence.

Trends and Barriers: Current advancements in technology, although beneficial, it creates a

barrier to Dorm Dropper’s. New technology provides our target market the opportunity to

receive college degrees on-line. The growth in on-line courses is a trend which may present a

barrier of fewer students living on college campus. To overcome this barrier community colleges

such as SUNY Broome and TC3 are now providing dorms on campus, this appears to be a

growing trend for community colleges.

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Customer Profile: A college student between the ages 18 to 25 whose family has an income of

over $30,000 a year. The location of the student should be less than two hours away and does not

have to move far away.

-Customers want someone they can trust

-Customers want to do hardly any work when moving

- Wants an inexpensive move cost

Average Annual Household Income: Percentage with a college degree

Oneonta:<$10,000 16.7%$10,000-$14,999 9%$15,000-$24,999 17.6%$25,000-$34,999 13.9%$35,000-$49,999 13.3%$50,000-$74,999 16.7%$75,000-$99,999 7.3%$100,000-$149,999 3.5%$150,000-$199,999 1.1%$200,000+ 0.9%

Cortland:<$10,000 15.4%$10,000-$14,999 10.1%$15,000-$24,999 15.4%$25,000-$34,999 14.2%$35,000-$49,999 16.7%$50,000-$74,999 15.9%$75,000-$99,999 7%$100,000-$149,999 4%$150,000-$199,999 .04%$200,000+ 1%

Ithaca: <$10,000 16.2%$10,000-$14,999 8.3%$15,000-$24,999 15.1%$25,000-$34,999 11.9%$35,000-$49,999 13.5%$50,000-$74,999 15.5%

Oneonta:

High school or higher:

84.9%

Social and economic indicators

based on 2000 Census sample data.

Bachelors or higher:

28.6%

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$75,000-$99,999 6.9%$100,000-$149,999 7.7%$150,000-$199,999 2.1%$200,000+ 2.8%

Syracuse:<$10,000 12.3%$10,000-$14,999 5.4%$15,000-$24,999 11.6%$25,000-$34,999 9.6%$35,000-$49,999 17.5%$50,000-$74,999 15.2%$75,000-$99,999 11.8%$100,000-$149,999 8.4%$150,000-$199,999 4%$200,000+ 4.2%

Oswego:<$10,000 13.6%$10,000-$14,999 8.8%$15,000-$24,999 15%$25,000-$34,999 12.6%$35,000-$49,999 15.2%$50,000-$74,999 18.5%$75,000-$99,999 8.3%$100,000-$149,999 6.5%$150,000-$199,999 0.8%$200,000+ 0.8%

Corning:<$10,000 8.5%$10,000-$14,999 7.3%$15,000-$24,999 17.3%$25,000-$34,999 13.3%$35,000-$49,999 15.9%$50,000-$74,999 18.1%$75,000-$99,999 9%$100,000-$149,999 6.2%$150,000-$199,999 2.2%$200,000+ 2.1%

Delhi: <$10,000 7.8%$10,000-$14,999 9%$15,000-$24,999 12.1%$25,000-$34,999 17.6%$35,000-$49,999 17.7%$50,000-$74,999 22.2%$75,000-$99,999 5.9%$100,000-$149,999 5.9%

Cortland:

High school or higher: 82.1%

Bachelors or higher: 20.2%

Ithaca:High school or higher:

92.8%

Social and economic indicators

based on 2000 Census sample data.

Bachelors or higher:

60.3%

Syracuse:High school or higher:

90%

Social and economic indicators

based on 2000 Census sample data.

Bachelors or higher:

46.7%

Oswego:High school or higher:

81.7%

Social and economic indicators

based on 2000 Census sample data.

Bachelors or higher:

20%

Corning:High school or higher:

86.1%

Social and economic indicators

based on 2000 Census sample data.

Bachelors or higher:

27.7%

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$150,000-$199,999 0.9%$200,000+ 1.1%

Binghamton:<$10,000 8.3%$10,000-$14,999 8.1%$15,000-$24,999 18%$25,000-$34,999 16.8%$35,000-$49,999 17.9%$50,000-$74,999 18.8%$75,000-$99,999 7.1%$100,000-$149,999 3.4%$150,000-$199,999 0.8%$200,000+ 0.6%

Delhi:High school or higher:

81.6%

Social and economic indicators

based on 2000 Census sample data.

Bachelors or higher:

25.7%

Binghamton:High school or higher:

81.8%

Social and economic indicators

based on 2000 Census sample data.

Bachelors or higher:

12.9%

Human Resource Plan: Work will be divided up by the proprietor managing orders, phone

calls, and other tasks in the office. The drivers will drive, pick up, and deliver the crates to each

location. Workers will be evaluated by customer evaluations and by the proprietor observing

work ethic and customer interaction. Dorm Dropper’s will have a strict, no warnings, and zero

tolerance sexual harassment policy.

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Operations Plan: Since the demand for moving college students items are in August and

January, Dorm Dropper’s will be a seasonal business operating from the months June to October

and January to March. Business hours will be from Monday to Friday 9:00am to 8:00pm,

Saturday 9am to 8:30pm, and Sunday 10:00am to 5:00pm. Customers will be charged a fee

upfront in our office or over the phone while ordering. Customers will be refunded half of the

original cost if anything is broken or damaged.

Goals:

Short Term Goals: Within one year, Dorm Droppers needs to pay off all of its startup costs.

-To have over 1000 orders within a year.

Medium Term Goals: Have over 5000 orders between year 1-3

-Be instilled in half of the local colleges we serve as their primary movers for college students

-Buy two more trucks and more crates.

Long Term Goals: To be able to expand and serve the entire state of New York efficiently.

-Own over thirty moving trucks

- Become known state wide as the best moving company for college students

-Be able to franchise Dorm Droppers to all U.S States

Marketing Research:

Primary Data: According to Dorm Droppers survey almost every senior in Newark Valley High

School is planning on attending college. Also about half of seniors have hired a moving company

before and are familiar with them. The surveys also showed that most seniors are staying within

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50 to 100 miles from where they went to high school. Most students are stressed about college

and think that hiring a moving company would help to relieve some stress.

Secondary Data: According to college websites, within two hours of Dorm Droppers main

facility there are currently around 126,500 students enrolled in college which will continue to

increase each year.

College Travel Times:

Cortland to Oneonta: 1:32:00

Cortland College: Same location

Tc3: Less than twenty minutes

Cornell: 27 minutes

Morrisville State: 59 minutes

Upstate Medical: 36 minutes

Environmental Science and Forestry: 25 minutes

Oswego: 1:19:00

Cayuga: 51 minutes

Finger Lakes: 1:46:00

Alfred: 2:15:00

Corning: 1:30:00

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Geneseo: 2:12:00

Onondaga: 44 minutes

Delhi: 1:52

Broome: 42 minutes

Binghamton: 51 minutes

Target Market Analysis:

Our target market includes college students who live on campus or plan on moving on campus.

Ages will very but the main college students will be between the ages of 18 to 25. Our services

will range from within a two hour radius from our main facility. Currently they mainly buy

services from U-Haul or Penske.

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Competitive Analysis:

FACTOR MY BUSINESS STRENGTH WEAKNESS UHAUL PENSKE

IMPORTANCE

TO CUSTOMER

Products Shipping Pods Efficient/quality Not as many

trucks Trucks/Pods/Trailers Moving Trucks

Price >$300 cheap Less room for profit $565 224 without

moving help very

Quality good Hand made Faulty/ weak equipment fair fair very

Selection Small, one size pod

One size is very large

Only one size Wide/broad Four truck

sizes neutral

Service Fast, friendly Friendly/caring

People we hire to move may not be passionate

Varies from each store owner

Varies from each store owner

very

Reliability Very reliable We guarantee to be on time none fair fair very

Stability Neutral We are just staring

We are just starting Very stable Very stable neutral

Expertise little Willing to learn Need experience Varies varies very

Company Reputation small Locally owned

Not as many customers know about us

Well known Well known Neutral

Location Cortland Can reach many colleges

Not a high population compared to other cities

Multiple state and multiple cities

Multiple state and multiple cities

Minimal

Appearance Professional Catchy/ eye

appealing none Trucks are used Used trucks Minimal

Sales Method

Website/Store Front

Can reach many people

Cannot reach people outside a two hour radius

Website/store fronts Website/ store fronts Minimal

Credit Policies None none none Credit cards Credit cards Minimal

AdvertisingBillboards, newspapers, etc.

Can reach the local communities attention

Cannot reach a mass audience

Web/TV/trucks Web/TV/trucks very

Image Professional Bright green colors

Not known yet Orange trucks Yellow trucks very

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Expected Market Share: Dorm Dropper’s goal is to acquire 10% of college students who are

attending college within a two hour radius of our main facility. The total number of students in

our territory is 126,950, 10% of this market would be the equivalent to 12,695. 10% of that

market would generate $3,808,500 in sales revenue.

SWOT Analysis:

Strengths:

- An aggressive and determined marketing campaign with clear goals and strategies.

- Competitive low prices

- A fun and creative name which appeals to our target market

- Ability to create a website in which customers can order from

- The ability of our services to reach many colleges within a two hour radius

- We are targeting a specific target market in which no one else is targeting with this

specific business

- Experience of a previous business owner

Weaknesses:

- Lack of reputation compared to other competitors

- Small financial base

- Trucks available are limited

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- Not as many locations as the competitors

Opportunities:

- No one has ever had a business specifically directed towards college students with the

service we offer

- Every semester more kids are enrolling in college

- College student’s parents are willing to go the extra mile to make moving in easier for

their children

- Seniors in high school are looking for ways to make the college experience a lot less

stressful

- Graduating college students are looking to move their belongings out after every semester

Threats:

- Other companies lowering their prices to compete with us

- Development of an easier way to move

- Existing competition

- New companies developing targeting the same target market

- Prices on creating our crates may increase

- Prices in gas/diesel for our trucks may rise

- Economy could become poor causing less people to go to college

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Financial Plan:

Estimating Start-Up Capital Dorm Droppers

May 20, 2014

Monthly Cash Needed % of Expenses to Start Total Source of Estimate

MONTHLY COSTSSalary of owner-manager $3,000 $6,000 2.7%All other salaries and wages 6,000 18,000 8.1%Rent 2,200 6,600 3.0%Advertising 200 600 0.3%Delivery expense 100 300 0.1%Supplies 100 300 0.1%Telephone 100 300 0.1% Phone companyOther utilities 200 600 0.3%Insurance 500 500 0.2%Taxes, including social security 300 1,200 0.5% AccountantInterest 250 750 0.3%Maintenance 100 300 0.1%Legal and other professional fees 100 300 0.1% AttorneyMiscellaneous 1,000 3,000 1.4% Subtotal $38,750 17.5%

ONE-TIME COSTSFixtures and Equipment $175,000 79.1%Decorating and remodeling 1,000 0.5%Installation charges 500 0.2%Starting inventory 2,500 1.1%Deposits with public utilities 1,000 0.5% Electric companyLegal and other professional fees 500 0.2%Licenses and permits 500 0.2%Advertising and promotion for opening 500 0.2%Cash 750 0.3%Other 200 0.1% Subtotal $182,450 82.5%

TOTAL ESTIMATED START-UP CAPITAL $221,200 100%

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Sources of Required Funds:

Personal Savings $2,000.00

Family Loan $20,000.00

Bank Loan $199,000.00

Forecasted Revenues:

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Forecasted RevenuesCrates 850Price $300.00Revenue $255,000.00

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Monthly Cash Flow:

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Cash Flow StatementDec. Jan. July. Aug.

Revenues $60,000.00 $105,000.00 $60,000.00 $110,000.00Cost of Boxes $500.00 $1,000.00 $300.00 $1,000.00Rent $1,800.00 $1,800.00 $1,800.00 $1,800.00Utilities $350.00 $350.00 $350.00 $350.00Salaries $4,500.00 $4,500.00 $4,500.00 $4,500.00Supplies $100.00 $45.00 $45.00 $100.00Insurance $100.00 $100.00 $100.00 $100.00Payroll Taxes $120.00 $120.00 $120.00 $120.00Other $75.00 $75.00 $75.00 $75.00Total Expenses $7,545.00 $7,990.00 $7,345.00 $7,990.00Cash Flow $52,455.00 $97,010.00 $52,255.00 $102,010.00

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Income Statement:

Interview Questions:

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Income StatementRevenues 335000Cost of Goods 5000Rent 21600Utilities 2400Salaries 18000Payroll Taxes 2500Advertising 3500Supplies 500Insurance 1200Other 500Total Expenses 55200Income 279800

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1.) What was your previous employment?

2.) If you could say one word that describes you best, what would it be?

3.) What things do you acquire that puts you above the rest?

4.) Are your work hours flexible?

5.) Have you driven truck for any other previous company?

6.) How are your social skills?

7.) Do you speak any other languages?

8.) Have you ever been convicted of a felony?

9.) Are you a hard-worker?

10.) Do you want a career or just a temporary position with my company?

11.) Did you get along with your previous co-workers?

College Travel Times:

Cortland to Oneonta: 1:32:00

Cortland College: Same location

Tc3: Less than twenty minutes

Cornell: 27 minutes

Morrisville State: 59 minutes

Upstate Medical: 36 minutes

Environmental Science and Forestry: 25 minutes

Oswego: 1:19:00

Cayuga: 51 minutes

Finger Lakes: 1:46:00

Alfred: 2:15:00

Corning: 1:30:00

Geneseo: 2:12:00

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Onondaga: 44 minutes

Delhi: 1:52

Broome: 42 minutes

Binghamton: 51 minutes

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Job Description:

Job Description: Moving Truck Drivers (Part Time)

Duties and Responsibilities: Be on time every day to the warehouse, drive trucks to wherever

needed, be kind, courteous, and cooperative with customers, be enthusiastic about your job, and

to deliver every load with the absolute most care. You will also have to manage the warehouse

by loading and unloading moving crates.

Qualifications: A high school diploma or GED is not required but preferred. Employee needs

good people skills due to interaction with customers. This position requires a valid New York

State driver’s license (Class B). Experience driving trucks is not required but preferred.

Salary: $10.00 per/hour

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Business Card:

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Survey Questions:

1.) Do you plan on going to college?

a.) Yes b.) no

2.) Have you ever hired a moving company before?

a.) Yes b.) no

b.

3.) How far away do you live from the college you plan on attending?

a.) Less than 50 miles b.) More than 50 miles c.) More than 100 miles d.) out of state

4.) Is thinking about college a stressful thing for you?

a.) Yes b.) no

5.) Do you think that if you had somebody to do the hassle of moving for you that it would take away some of that stress?

a.) Yes b.) no

6.) Do you plan on bringing a lot of items to your dorm?

a.) Yes b.) no

7.) Would you trust a moving company with you belongings?

a.) Yes b.) no

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