the square-it business plan
TRANSCRIPT
Business plan Square-it
Bram kepser 2060209 Tutor: Jan Luijks
Daisy Bax 2059891
Kris van der velden 2063980
Bart van Drunen 2060956
Antoine Scala 2105995
2
3
Preface The process of writing the business plan went very well. We are glad to see that everybody worked
on it well, and were very eager to participate on this. It was a great learning process for everybody,
especially for the ones who never wrote a business plan before. Now they experienced what to
describe when a business plan has to be written. We would like to thank Robert Nahon and Jan Luijks
for their guidance during the process.
4
Management summary The square-it is a small key chain you can put on your keys, wallet, bag or any other thing. By an
application on your phone you will be able to prevent losing your possessions, or find them easily if
you still lost them. It has a Bluetooth connection and can be found by letting it make a sound, or by
your last gps location when you still had you Square-it.
The general goal for his business plan is to position our product the right way on the right market.
Beside this goal there are specific goals for the company itself. These goals are as follows:
By January 29th, before the liquidation of the company, 100% of the stock has to be sold. There has
to be a cost efficiency policy, to keep the costs as low as possible. Providing the best service possible
to the clients. Helping them with the installment and guidance of the app and product. Creating a
professional image for the company, even if it is a student company to really participate within the
industry.
The target group of Square-it is students from 19 till 25 years old living in North-Brabant, the
Netherlands. Statistics are showing that almost all of these people are in possession of a smartphone,
which is needed for the key finder. Research shows that there is no difference in interest by gender,
so the focus will be on male and female. The target group can be found online at social media, at
universities and at bars in the weekend. The persona John describes a person from our target group.
Square-it is positioned with a lower price and higher service than the competitors. Because the
company is a student company, the price can be lower than competitors. With this positioning it is
possible to say that Square-it is the strongest on most of the points. It is necessary to stay innovative
and hold this line.
The marketing mix is a combination of the four p’s: Product, price, place and promotion. The product
is the key finder itself with all the functions and the need of the customer what Square-it solves. As
described in the positioning, our price is lower than the competitors. The price is €12,50, what will be
paid by 60% of the people if we look at the results of the market research. The subject place will
describe where the key finder will be sold, this will be done by online and offline selling. The
promotion of Square-it will be done by several ways, the most important ones are Facebook, a
website and word of mouth advertising.
The activities of the company has been described by using the value chain to get a clear view at the
end if all the activities were profitable enough and if there need to be any changes. The subjects
infrastructure, human resource management, technological management, purchasing, incoming
logistics, operations, outgoing logistics, marketing & sales, service and the margin at the end.
For choosing the right strategy for the company the generics competition strategies has been used to
choose the right strategy. The best strategy for Square-it is the cost leadership. Which means that
Square-It focus on having the lowest costs for the customer.
The financial part shows all the financial factors and numbers which are relevant for the company.
The financial part exists of a data sheet, profit and loss account, cash flow, opening balance and the
closing balance. With all these numbers Square-it is able to see all the purchases, sales, costs and the
profit at the end.
5
Table of Content Preface ..................................................................................................................................................... 3
Management summary ........................................................................................................................... 4
Introduction ............................................................................................................................................. 6
Project Team ........................................................................................................................................... 7
Product .................................................................................................................................................... 8
Goals and Objectives ............................................................................................................................... 8
Target Group ........................................................................................................................................... 9
Market Positioning ................................................................................................................................ 11
Value proposition .................................................................................................................................. 12
Marketing mix ....................................................................................................................................... 13
Product .............................................................................................................................................. 13
Price ................................................................................................................................................... 13
Place .................................................................................................................................................. 14
Promotion .......................................................................................................................................... 14
Business system and organization......................................................................................................... 15
Brand Values ...................................................................................................................................... 15
Value Chain ............................................................................................................................................ 15
Strategies ............................................................................................................................................... 17
Company Factors ............................................................................................................................... 17
Value Discipline ................................................................................................................................. 17
Customer Relationship ...................................................................................................................... 18
Strategy conclusion ........................................................................................................................... 18
Finance .................................................................................................................................................. 19
Business model Canvas ......................................................................................................................... 20
Bibliography ........................................................................................................................................... 21
Appendence .......................................................................................................................................... 22
1.1 Finance data .......................................................................................................................... 22
1.2 Profit & loss account ............................................................................................................. 24
1.3 Cash flow ............................................................................................................................... 25
1.4 Opening Balance .................................................................................................................... 26
1.5 Closing Balance ...................................................................................................................... 26
6
Introduction Square-it is a young college start-up company that consists of five students from different studies.
Different studies bring different experience with them, this combination makes sure this company
will succeed. All five students are currently following the minor International Entrepreneurship, and
that is where this company started, in September 2015. The core product which is the foundation of
this company is a Bluetooth & GPS key finder. This key finder is not just a key finder, it works with
Bluetooth and GPS instead of a whistle so it works more effective. Besides that it has an app called
Small Lovely in which you can control and personalize your key finder.
This key finder is thin and compact and can be attached to a lot of different items, for example: your
keys, wallet, phone, bags, purses, but also your dog or kid for when you let your dog loose or go to a
crowded city with your children.
To make sure this great product will succeed in the Dutch market, we did a complete Market
Research that help us making important decisions and have a guideline. With our Market Research,
we already know how to sell, how earn more money by selling to a particular target group, what the
customers’ preferences are, and where we could avoid loss of money by keeping an eye on our costs
with the financial file we made. All this information will help us to build a good Business Plan that is
needed to run a company in the right way.
7
Project Team The Group 8: Square-It
In this table, we can see that everybody is operating on different sectors.
Bram is the CEO of Square-It. He is the person who is arranging the meetings with the
other employees of Square-it. He is keeping in touch with teachers to deliver them
our work, dividing all the tasks and advising us about advisory skills. He is the leader
of the team, like that there is more communication and it’s easier to work as a team.
Daisy is our marketing Manager. She is our contact person that is talking with Avans,
the contact person for Den Bosch and Christmas markets. She also arranges the
business cards and thinks of ways to make the customers aware of the product.
Kris is the purchase manager. He is the person that keeps in touch with the supplier
and places the orders. He also helps with the marketing.
Bart has a financial background, so he is able to build our financial file, containing:
profit & loss account, cash flow forecast and our balance. He made a complete
overview that makes easier to see how much we spend, where we could save more
money and earn more money. He also is in charge of administrating every purchase
and sale Square-it makes.
Antoine is the Sales Manager of the company, his goal is to find different channels,
identify customers’ needs and extend our market. He must find customers and
provide them with a product of quality as fast as possible, and make reductions if
there is a large amount of quantities ordered.
This are all the employees of Square-it. They are all enthusiastic and willing to help each
other. Communication, organization and respect are the three key factors Square-it is
building on.
Name Manager Address e-mail Phone
Bram Kepser General
Manager
Hunzestraat 14
5704GT Helmond
[email protected] 06-30292721
Daisy Bax Marketing
Manager
Burgemeester
Loeffplein 22
5211RZ Den Bosch
[email protected] 06-50549358
Kris van der
Velden
Purchase
Manager
Tempelierstraat 6,
4261DD Wijk en
Aalburg
[email protected] 06-51465305
Bart van
Drunen
Financial
Manager
Bloemendaalweg 18
5143 NB Waalwijk
[email protected] 06-28808839
Antoine Scala Sales
Manager
133Onderwijsboulevard
5223DE
‘s-Hertogenbosch
[email protected] 06-46682454
8
Product The product of Square-it is the key finder. A small and compact key ring with GPS and Bluetooth
connection, built in order to find possessions that have been lost. Think about the time and the
money that will be wasted when any kind of possession has been lost, for example: your phone
before a meeting. How much does it cost to buy new car-keys, where did you put your wallet while
you were in a commercial centre? There is no need to be worried anymore, Square-it has the
solution: Square-It!
The Key-finder can be attached to every kind of possession. You will be sure to keep your belongings
with you. In the application, downloaded on your phone, it is possible to search for the key finder
and see where is has been lost the last time in order to find it easily. It will also send a notification at
the moment when it is disconnecting with the phone. This key finder is also a phone finder: press the
button on the key finder three times and your phone will make a sound so you can also find your
phone. This is an extra addition to the key finder that a normal key finder does not have. Last but
definitely not least, it also has a selfie function on it. Put your phone down, or from a distance, push
the button on the key finder and your phone will make a picture. This is very convenient when you
want to make a group picture.
The last point is that the battery is replaceable, and the cycle life is about six months: very easy for
customers to solve the problem by themselves if there is, and they won’t have to pay more to get
other batteries.
The key finder is not well known in the Netherlands, this was proven by the surveys and interviews
which have been done, only few people answered that they have seen this product on internet. The
Square-it is a key finder with a Bluetooth connection and selfie remote function, and a lot more
advantages. These characteristics cannot be found on other type of key finders, what makes the
Square-it a unique, innovative and useful product.
Goals and Objectives Square-it just started less than 2 months ago, and already defined some goals and objectives for the
company:
1. By January 29th, before the liquidation of the company, 100% of the stock has to be sold.
2. There has to be a cost efficiency policy, to keep the costs as low as possible.
3. Providing the best service possible to the clients. Helping them with the installment and
guidance of the app and product.
4. Creating a professional image for the company, even if it is a student company really
participate within the industry.
The company is always looking for solutions when problems occur, and when the goal is reached,
there will be the attempt to reach another one.
9
Target Group By doing the market research, a target group has been chosen after analyzing the results of the
surveys and interviews. Out of these results came that the group or people in the age from 19-25
years old are most interested in our product. Beside this, they are also the group which mostly have a
smartphone. Which is needed for the key finder. These findings will be described in this chapter.
As described in the introduction,
there have been several studies to
launch the product by the best way
on the Dutch market. Interviews,
online surveys, and the activity on
our Facebook page revealed that
most of the people interested to buy
Key- Finder are aged from 19 to 25
years old. The biggest focus will be
on this group, but there are a lot of
potential customers outside of this
group. Because of this fact the focus
will not be too much on just one group. Then, “connected” people will be more able to buy it. The
researches show also that there are just few more women than men who like the product (56% and
44% for men), what can be seen as no difference. For this reason there will not be a focus on a
specific gender.
The target group “students from 19 till 25 years old” is very active on social media and internet in
general. The Netherlands counts around 1.2 million students.1 Not all of these fit in the core target
group because they are also below 19 years old and over 25 years old, but in general they are
between this ranges of age.
The target group can mostly be found online2 and at universities. Beside these places they can be
found at sport clubs in the weekends, for doing their sports and in pubs and bars in weekend
evenings.
To give a good view about our target group, a persona will be described. This will be a typical person
who could be in our target group.
My name is John, I am 22 years old and I am doing
a business study at Avans University
Hertogenbosch. I have started this study 2 years
ago what means that I have 2 years left now. Since
2 years I also live in‘s Hertogenbosch in a flat with
other students. Before this I lived with my parents
in Vlijmen. In the weekends I work in a clothing
store in the centre and I play football on Saturdays.
In the evenings I mostly hang out with friends or I
am playing games on my computer. Every day I
keep in touch with my friends by my smartphone
who live still in Vlijmen with their parents.
1 https://duo.nl/organisatie/pers/aantallen.asp
2 https://www.surfspace.nl/artikel/1292-digital-natives-onder-de-loep-ict-gebruik-en-wensen-van-studenten/
10
Moreover, 81% of people who have been polled
said that they are more willing to buy the key finder
on internet, through online channel. More and
more people are using e-business or are purchasing
on internet, asking on forums, so we need to keep
in touch with new technologies and new ways of
consuming. In this way we are sure to generate
curiosity, be present on several types of markets,
develop our marketing, and get more customers.
The Square-it key finder is one of the cheaper
models with more advantages, so this product stays
competitive and we Square-it will make the key finder more attractive for customers, also by going to
markets, calling companies like car-rentals, key repair shops, festival organizers. In this way there will
be a mouth-to-mouth advertisement.
11
Market Positioning This chapter shows how the company Square-it position it selves. The positioning shows who they
are, what they do, what is unique and where they stand in the market.
Square-it who?
Square-it is a student company that offers one specific product, the Square-it key finder. A
multifunctional Bluetooth/GPS key finder, with a phone finder, selfie function and application is
included. Focusing on the modern young population of 19 to 25 years olds with a smart phone, but
besides on the side Square-it also sells to the other age groups.
The company uses various distribution methods which will be further explained in the marketing mix,
with an eager positive setting. The company offers service and is willing to help the customer in any
way possible.
But what is so unique? This company’s focus is clear: Square-it key finder, target group 19-25 years
old, offering service where possible and all this for one single product. As less costs as possible, this
counts for the purchasing, distribution and the selling possibilities. This way Square-it can offer a
lower price, besides that the company wants to add more value, such as packaging, app installation
and answering all questions of the customer.
Short recap: Square-it is a student company with a single product, the Square-it key finder.
Everything is low cost, which means low selling price and for added value they offer service as high as
possible for the customer. Compared to other companies that sell key finders the positioning matrix
is as follow:
12
Value proposition The main question that has to be answered in this chapter is: "Why should the customer buy the square-it key finder?" This is a very easy question to answer, because the key finder is a product that everyone will use when they lose their belongings once in a while. Unlike other key finders, the square-it key finder has more options, like a phone finder and a selfie function, cost less, is easy to use and it will keep track of all your belongings. You can take your time to enjoy life and never have to worry about losing your items and searching for your belongings ever again. Not only the key finder has a value for the customer, but also the service square-it will provide with every key finder that is sold. Square-it is able to give the best service because of the compact company. The company can be contacted online, by phone and on offline places such as the market. You will get an answer right away because of the direct communication within the company square-it. Service has a high value within the company. The company helps the clients with the installation of the application and showing how to use the product. What could it all be used for and how could it be helpful for them. And Square-it wants the customers to rely on them, if they experience any issues then they should know that we are there to help them! The important values that the company shares to the world is: A cheap, multifunctional key finder device with a great service to help the customer with the application and the product.
“If you choose to not deal with an issue, then you give up your right of control over the issue
and it will select the path of least resistance.” ― Susan Del Gatto
13
Marketing mix The Marketing mix is a combination of instruments which an organization can use to decide what
marketing strategy they should use (Muilwijk, Marketingmix, n.d.). The four factors of the marketing
mix are: product, price, place and promotion. A marketing plan is made by deciding how these
factors can be used to reach your customers and create extra value.
Product The first point which has to be addressed, is what the customer wants from the product and what needs it has to satisfy (Mind-tools-editorial-team, n.d.). The key finder is a product that solves a certain problem for the customers. People don’t want to lose their keys and other belongings anymore, so they buy a key finder to help them find their belongings. The Square-it key finder helps the customer to find their belongings easily and fast, it also helps the customer to find their phone quickly. So the needs of the customers are met. As an extra the Square-it key finder has a remote selfie function. This option is not something a lot of customers will use but it is a feature which can catch the eye of potential customers. The second point is: how and where will the customer use the product (Mind-tools-editorial-team, n.d.)? Customers will mostly use the key finder at home to locate certain belongings with the radar which can be used by entering the app on their phone. But the key finder will also be used when people notice they don’t have their belongings near them and search them by using the GPS function, this can be done anywhere. The last point is: what does the product look like and what is preferred by the customers (Mind-tools-editorial-team, n.d.)? The Square-it key finder is a compact keychain in a square shape. It is available in the colours black, white and blue. The customers like the black and white ones the most but some customers are happy with the option to get a more colourful one. Most of the customers think the shape is perfect.
Price The first point which has to be addressed is what the value of the product is to the buyer. In a survey done by the members of Square-it 60% of the participants is willing to pay 12, 50 for the key finder (for the total results of the survey see the appendices). So the average value of the product to the customer is close to €12, 50, maybe even a little higher. The second point is the established price for other key finders in the area. All key finder which are available on the big trading websites like bol.com and kieskeurig.nl start at a price of €18, - . So if the Square-it key finder is priced at €12, 50 the price is lower than the prices of the competition and the price is close to the price the customers are willing to pay. The third point is about giving discounts. On the key finder market the profit margin isn’t really big so if discounts are given the profit margin will be almost non-existent. Because of that it was decided to only give a discount if a customer buys ten key finders at ones, the discount will be that the customer receives the 10th product for free.
14
Place At first people can look for the key finder at the following places:
- The market at ‘s-Hertogenbosch. Everyone who wants to go for some shopping on the
Wednesday or Saturday will walk by.
- The Christmas fair. Mostly adults will come to this fair to buy gifts for the holidays. Although it
is possible to reach children, because the adults can also buy the key finder for their children
or grandchildren.
- The website. Children at young age know how to use social media and internet, but they need
the approval of their parents if they want to buy something on the web. For adults and
teenagers/students it is very useful to have a website. They can see what the key finder is and
they can order it themselves if they are interested.
- The market at Avans ‘s-Hertogenbosch. This market will make sure the group off HBO-
students that study in ‘s-Hertogenbosch will be reached.
At second Square-it can get access to the right distribution channels, because of the contacts the
company has. There was already contact with the people who are necessary at Avans University and
the other contacts are contacted by phone.
At third the competitors have more expensive products and sell them most of the time online. It is
impossible to learn from them because they are selling the products differently and this is not a
student company who is going to work for four months, but a bigger and real company.
Promotion At first the company Square-it is going to promote the key finder by a lot of different ways:
Offline:
- Business cards;
- At Avans University television screens advertising;
- At Avans university posters and a movie;
- Word-to-Mouth advertising.
Online:
- Website;
- Facebook.
At second we can promote our product at best during the holiday season. People want to buy a
present for their friends or family and the key finder is the present that they can give! It is also very
important to go further with the promotion after the website and the video are done. If people are
interested and they want to find our product on internet, they will lose their interest when they don’t
find anything or they only find something that is not ready.
At third the other companies do not work with promotion, because they think their product will sell
itself. They only have a site where people can find them. A different key finder is promoting there
product on Groupon. Only this product is does not have the same functions as the key finder of
Square-it has (Mind-tools-editorial-team, n.d.).
15
Business system and organization In this chapter the inside of the business will be explained. What are the morals of this company?
What does it stand for? How does the value chain look like and what are the main strategies of the
company? This will all be clear after reading this chapter.
Brand Values What are the morals of this company and what does it stand for?
Vision: ‘’Square-it stands for a better future, with less lost possessions!’’
Mission: ‘’Giving our fellow humans the opportunity to keep track of their possessions.’’
Slogan: ‘’Lost it? Just Square-it!’’, ‘’Square-it, find a better future’’
This way the company shows that it is really all about helping people. This is our core business!
Value Chain The value chain, by M. Porter shows all the activities inside the company, with at the end a margin to
see if these activities have been profitable for the company and the total profit (Muilwijk,
Intemarketing, N.d.).
Infrastructure
The Infrastructure inside the company will be in two different ways. Communication between
employees will be done by WhatsApp, e-mail, phone and face to face by having meetings.
Documents will be handed out between employees by using dropbox, in this way everyone will
always be able to reach the documents related to all activities inside the company. There is no real
physical infrastructure by traffic.
Human Resource Management There are not a lot of human resource management activities inside the company. This is because of
the fact that it is a student company, which does not really have any selection of potential
employees, a training for employees or other different factors which could fit inside Human Resource
Management. All employees of the company are following classes related to international
entrepreneurship, which will train them in their skills on this market.
Technological management All of the products are developed by another company, Square-it can be seen as a reseller, which
means that they only buy available and already developed products to sell to the customer. Because
of the fact that Square-it is a reseller, they do not have any development, but they do need research.
Only at the start of the company a research has been done to get insight in the market for the key
finders, which could be seen as an ad-hoc research.
Procurement All products will be purchased in Shenzen Raycan Technology Co., Ltd, China. All purchased goods will
take a week to arrive in The Netherlands, with this relative short time it is possible to deliver b2b very
fast. Orders will be at least 100 pieces, what is the minimum order quantity.
Incoming logistics All key finders will be delivered by DHL air shipping from China to Wijk en Aalburg. The key finders
will be stocked here, and transferred by car to the markets or other employees of the company.
16
Operations There are not a lot of operational activities. Most ordered products are already packaged and ready
to sell, these will be sold in this package. The only change of the product will be made at the
Christmas fair. There will be a Christmas related packaging added to prepare the product as a gift,
ready to give straight away.
Outgoing logistics In general there are three ways of selling our product, online, offline on the markets and offline by
personal approximation. Products sold offline will be delivered directly at the market or personally by
the sales person, directly or just a few days later. Online sales can be done by Facebook or the
website, by this way the products will be delivered by letter mail directly to the seller.
Marketing and sales
A website and a Facebook page will be used as online marketing, the website will be for general
information about the product and can be used to order products by e-mail, to keep the costs low
there will not be a real web shop. Reaching business to business clients will be done by phone calls,
e-mails and visiting the potential companies. Business cards will be used here as marketing to leave
our contact information for the potential company.
Toilet screens and television screens inside Avans will be used as marketing to create a well-known
product for the students inside Avans, and outside by mouth to mouth advertising by these students.
Our flyer with a short but clear description about the key finder will be showed here.
This flyer will also be on the website of the Christmas fair in Den Bosch where Square-it will be
standing in November 2015. The Christmas market is used as a marketing tool to create awareness
around the key finder, business cards will be handed out to create more word of mouth advertising.
Service The service for the key finder is that all key finders will be replaced or repaired when they are broken
before the liquidation of the company. At the markets customers will have the service to download
the application for free, on a hotspot from Square-it for saving data for the customer. Installation of
the product can be done also directly if wished by the customer to serve them as good as possible.
Marge The total income minus the total costs will result in the total profit. Total profit / total income x 100 =
the marge. These calculations can be made at the liquidation fase to find out if all activities have
delivered enough money to be useful and profitable.
17
Strategies The vision and mission of the company need to be executed. The ways to do this is defined by the
strategy. There are several sides of the company that need a different strategy, there are: company
factors (Competition, product, market and the needs of the customer), value discipline and customer
relationship strategy.
Company Factors The company factors, are factors the company need to work with. These factors all have a different
model or strategy that shows what to do. There are three company factors:
- Competition
- Product
- Market
Competition strategy
For the competition the Porter model of generics competition strategies will be used to define which
strategy fits the best. In this case ‘Cost leadership’ of the generics competition strategies is the
strategy that is the most useful for the company. The focus is on having a low production and
distribution costs, in this case that means a low purchase price and distribution costs (Kotler, 2009).
This way the product will have a lower price and could we capture a large market share compared to
the competition. This way the company positions itself in a low price segment, which is an attractive
segment for the all-round customer and a good positioning compared to the competition.
Product & market strategy
The product and market strategy is based on the product-/market development matrix of Ansoff.
There are four possibilities in the Ansoff matrix that is based on existing or new products and existing
or new markets. The combination for this company is an existing product on an existing market, this
means market penetration (Kotler, 2009). The thought behind this strategy is that it is an existing
product that needs to get a larger market share by getting more people to use the product, or sell
more products per person.
The ‘Cost leadership’ strategy of the generics competition strategies of Porter in combination with
the market penetration of the product-/market development matrix of Ansoff will be the strategy
that the company Square-it will use to get a large market share in the market of the key finder in
North-Brabant.
Value Discipline The value discipline strategy is about how the company delivers the value that they offer. The value
discipline strategy is determined by the value strategy model of Treacy and Wiersema. It is important
to provide a unique value as a company and this can only be done by focusing on a certain area. Of
course some aspects may overlap but you have to focus on one area. In this case the ‘Operational
excellence’ is the most appropriate value strategy for Square-it because the focus is on low
production/purchasing costs, an effective purchasing process and just in time logistics (Muilwijk,
Intemarketing, N.d.). The company orders when they need it, so they work effective, this is possible
because there is only one product. The company keeps in mind to help the fellow human being by
providing key finders so they keep track of their possessions, but it is a short notice student company
that wants, besides helping the customer, also make a profit. That’s why the operational excellence is
the best strategy for this company.
18
Customer Relationship These days it is not only about having the best product, you have to bond with your customers. It is
not a fight about who has more functions or the lowest price, this is combined with who has the best
or can build up the best relationship with their customer. There are several customer relationship
categories that can help the company to build a solid relationship with the customer, for example:
Co-creation, building a community, self-service, automated serviced, personal assistance and
dedicated personal assistance (Osterwalder, 2010). In this short notice the company delivers
personal assistance by assisting downloading the app, explaining how to get the most out of the
product and how to use it.
Strategy conclusion The strategy for the company factors is based on the generics competition strategies of Porter and
the product-/market development matrix of Ansoff, which is a combination of ‘Cost leadership’ and
‘Market Penetration’. With low costs in purchasing and distribution and a low selling price, combined
with expanding the market share by selling more products to more people, or per person. The value
discipline strategy is based on the model of Treacy and Wiersema where the ‘Operational Excellence’
is the best strategy for the company. Low costs, low price, work effective. And last but definitely not
least the Customer Relationship strategy, based on the business model canvas of Alexander
Osterwalder. There are a lot of different ways to build a relationship, but the best and most effective
way for this company in the current situation is personal assistance.
19
Finance To get a clear financial overview for Square-it a data sheet, profit and loss account, cash flow
statement and an opening and closing balance has been put together. All these documents are
placed in the appendices.
Data sheet
In the data sheet all data that is required to make all de financial documents is listed. In this sheet
the expected sales and purchases in all the weeks are displayed. With this information and the
information about the purchasing price, tax percentages and other costs like marketing, travel,
wages and telephone costs all other documents can be put together.
Profit and loss account
The profit and loss account or P&L is a financial document that displays all earnings and costs in a
certain period. De profit and loss account for Square-it consist of nine P&L’s which are made for a 2
week period and a P&L with the totals off all periods combined.
The total income over the whole period is €2.231, 40, the variable costs over the whole period are
€732,16 and the fixed costs are €837,42. These numbers make a total net. Profit before taxes of
€661,82. Square-it has to pay 23% income tax. So the net. Profit after taxes is €509, 60.
Cash flow statement
The cash flow statement is a financial document which shows the flow off real money in and out of
the company. As can be seen in the appendices Square-it starts with 58 shares sold, which means
that at the beginning of the cash flow Square-it gets €1160,- to start their business. With this money
the first stock will be purchased and some costs that have to be paid in advance can be paid. After
the first two periods Square-it will be able to pay everything with the money they earn with their
sales. In the end of all periods Square-it will have €2.131,14 in cash according to the forecast. After
that some taxes still have to be paid. And in the end the profit that is made will be handed out to all
the shareholders
Opening balance
The opening balance is a financial document that shows the possessions and liabilities a company has
at the beginning of a period. In the case of Square-it there is only cash and there are shareholders,
which are both €1160,-.
Closing balance
The closing balance is a financial document that shows the possessions and liabilities a company has
on the end of a period. Square-it will have sold all their stock by that time so the inventory is empty.
The cash that is listed on the closing balance is the same as the cash in the last period of the cash
flow statement. The equity consist of shareholders capital and profit. The profit is the profit
according to the P&L of all periods combined. The other liabilities are taxes that will have to be paid
after the balance date.
20
Business model Canvas This model shows how the company creates, keeps and shows his value. This model shows every
aspect of this business model in one picture. The models exists out of nine bricks:
Customer Segments: This brick is based on target group of the company. The focus is on male &
female, main target group 19-25 years old, but >18 and 26-35 years old were also interested in the
product.
Value Proposition: The value of the company is based on the strategies of the company, providing
low prices combined with a high service.
Channels: The distribution of the company is through the website, telephone and email but also by
the market stands in Den Bosch, Avans University and the Christmas market.
Customer Relationship: The best customer relationship strategy for this company is personal
assistance. Help the customer with the installation of the app and show them how to use the
product, this is also part of the value that the company delivers.
Key Partners: The partners that help Square-it and make this business possible are: Avans University,
Jong Ondernemen, Kerstbeleving, Market of Den Bosch and the supplier Shenshen Raycan
Technology Co., Ltd.
Key Activities: The activities are purchasing and selling the products, making promotion and maintain
the website.
Key Resources: The resources are the knowledge and guidance by Jong Ondernemen, market stands,
web developer and the supplier.
Revenue Streams: The only way to have an income is by selling key finders.
Cost Structure: The cost structure is based on every cost that the company has: Jong Ondernemen,
Website, business cards, market stands, Christmas fare, additional costs and Salary, phone & travel
costs.
21
Bibliography Kotler, P. (2009). Principles of Marketing. Amsterdam: Pearson Education Benelux.
Mind-tools-editorial-team. (n.d.). The Marketing Mix and the 4Ps of Marketing. Retrieved oktober 23,
2015, from mindtools.com: https://www.mindtools.com/pages/article/newSTR_94.htm
Muilwijk, E. (N.d.). Intemarketing. Retrieved from http://www.intemarketing.nl:
http://www.intemarketing.nl/marketing/modellen/tw-waardestrategie%C3%ABn
Muilwijk, E. (N.d.). Intemarketing. Retrieved from Intemarketing.nl:
http://www.intemarketing.nl/marketing/modellen/waardeketen-porter
Muilwijk, E. (n.d.). Marketingmix. Retrieved oktober 23, 2015, from Intemarketing:
http://www.intemarketing.nl/marketing/marketingmix
Osterwalder, A. (2010). Business Model Generation. Hoboken, New Jersey: John Wiley & Sons.
22
Appendence The appendence contain the information about the finance plan.
1.1 Finance data
DataB2C (christmas fair) B2C(normal)
Selling price (excl. VAT) 12,40€ 10,33€
Purchase price product 3,52€
Import tax 4% Import tax is payed when the products arrive in The Netherland
Minimum purchase quantity 50
All sales are done in cash immediately after the sale.
All purchases are done by bank immediately after the purchase.
All stock that is left in the end is sold at purchase price.
When the company was founded no financial transactions were done yet.
Als purchases are done at the beginning of a week, the product will be received in the same week.
Quantity Price Week
Shares sold 58 20,00€ 41
The return on investment will be 10%
Payroll tax 42%
VAT 21%
Income tax 23%
Sales & purchases
Sales (number of
pieces) Sales (Turnover)
Purchase (number
of pieces ) Purchases
week 41 0 -€ 100 352,00€
week 42 10 123,97€ 0 -€
week 43 10 123,97€ 100 352,00€
week 44 10 103,31€ 0 -€
week 45 60 743,80€ 0 -€
week 46 55 568,18€ 0 -€
week 47 55 568,18€ 0 -€
week 48 0 -€ 0 -€
week 49 0 -€ 0 -€
week 50 0 -€ 0 -€
week 51 0 -€ 0 -€
week 52 0 -€ 0 -€
week 53 0 -€ 0 -€
week 1 0 -€ 0 -€
week 2 0 -€ 0 -€
week 3 0 -€ 0 -€
week 4 0 -€ 0 -€
Total 200 2.231,40€ 200 704,00€
Remaining costsJong ondernemen costs:
Jong ondernemen (excl. VAT) 200,00€
23
Marketing costs:
Website (excl. VAT) 6,61€ Payed in week 41
Business cards (excl. VAT) 14,86€ Payed in week 41
Market stand(excl. VAT) 23,00€ Payed in week 46
Christmasfare price (excl. VAT) 195,00€ Payed in week 42
Additional 125,00€ Payed in €25 per period untill week 50
Wages
Made hours p.p. per week 15
Salary per hour 0,20€
Employees 5
Travel (other travel method then by OV)(Payed at the end of every month)
Travel costs per km 0,19€
Total travelled KM per week 10
Telephone (Payed at the end of every month)
Phone costs p.m. 0,02€
Called minutes per week 35,00
24
1.2 Profit & loss account
Week 41 &
42W
eek 43 & 44
Week 45 &
46W
eek 47 & 48
Week 49 &
50W
eek 51 & 52
Week 53 &
1W
eek 2 & 3
Week 4
Total
Income
Turnover:123,97
€ 227,27
€ 1.311,98
€ 568,18
€ -
€ -
€ -
€ -
€ -
€ 2.231,40
€
Variable CostsCost of goods sold
35,20€
70,40€
404,80€
193,60€
-€
-€
-€
-€
-€
704,00€
Import tax
1,41€
2,82€
16,19€
7,74€
-€
-€
-€
-€
-€
28,16€
Total variable costs36,61
€ 73,22
€ 420,99
€ 201,34
€ -
€ -
€ -
€ -
€ -
€ 732,16
€
Fixed CostsW
ages30,00
€ 30,00
€ 30,00
€ 30,00
€ 30,00
€ 30,00
€ 30,00
€ 30,00
€ 15,00
€ 255,00
€
Jong ondernemen
200,00€
200,00€
Telephone1,40
€ 1,40
€ 1,40
€ 1,40
€ 1,40
€ 1,40
€ 1,40
€ 1,40
€ 0,70
€ 11,90
€
Travel3,80
€ 3,80
€ 3,80
€ 3,80
€ 3,80
€ 3,80
€ 3,80
€ 3,80
€ 1,90
€ 32,30
€
Marketing
236,22€
19,75€
42,75€
19,75€
19,75€
338,22€
Total Fixed Costs271,42
€ 54,95
€ 77,95
€ 54,95
€ 54,95
€ 35,20
€ 35,20
€ 35,20
€ 217,60
€ 837,42
€
Total Costs308,03
€ 128,17
€ 498,94
€ 256,29
€ 54,95
€ 35,20
€ 35,20
€ 35,20
€ 217,60
€ 1.569,58
€
Net prof (before Taxes)
€ -184,06€ 99,11
€ 813,04€ 311,89
€ -54,95€ -35,20
€ -35,20€ -35,20
€ -217,60€ 661,82
TaxesIncom
e tax€ 152,22
Total€ 152,22
Net. Profit (after Taxes)
€ -184,06€ 99,11
€ 813,04€ 311,89
€ -54,95€ -35,20
€ -35,20€ -35,20
€ -217,60€ 509,60
25
1.3 Cash flow
Week 41 &
42W
eek 43 & 44
Week 45 &
46W
eek 47 & 48
Week 49 &
50W
eek 51 & 52
Week 53 &
1W
eek 2 & 3
Week 4
After Liquidation
ReceiptsTurnover
123,97€
227,27€
1.311,98€
568,18€
-€
-€
-€
-€
-€
Share holders1.160,00
€
VAT26,03
€ 47,73
€ 275,52
€ 119,32
€ -
€ -
€ -
€ -
€
Total receipts1.310,00
€ 275,00
€ 1.587,50
€ 687,50
€ -
€ -
€ -
€ -
€ -
€
Payments
Purchases352,00
€ 352,00
€ -
€ -
€ -
€ -
€ -
€ -
€ -
€
VAT119,38
€ 73,92
€ 4,83
€ -
€ -
€ -
€ -
€ -
€ 202,22
€
Import tax
14,08€
14,08€
Payroll tax expenses107,10
€
Income tax
152,22€
Wages
17,40€
17,40€
17,40€
17,40€
17,40€
17,40€
17,40€
17,40€
8,70€
Jong ondernemen
242,00€
Telephone1,40
€ 1,40
€ 1,40
€ 1,40
€ 1,40
€ 1,40
€ 1,40
€ 1,40
€ 0,70
€
Travel3,80
€ 3,80
€ 3,80
€ 3,80
€ 3,80
€ 3,80
€ 3,80
€ 3,80
€ 1,90
€
Website
6,61€
Business cards14,86
€
Market stand
23,00€
Christmasfare price
195,00€
Overig
25,00€
25,00€
25,00€
25,00€
25,00€
Total payements
749,53€
487,60€
75,43€
47,60€
47,60€
22,60€
22,60€
22,60€
253,30€
461,54€
Receipts and payments
€ 560,47€ -212,60
€ 1.512,07€ 639,90
€ -47,60€ -22,60
€ -22,60€ -22,60
€ -253,30€ -461,54
Current account at the beginning of the period€ 560,47
€ 347,87€ 1.859,94
€ 2.499,84€ 2.452,24
€ 2.429,64€ 2.407,04
€ 2.384,44€ 2.131,14
Current account at the end of the period€ 560,47
€ 347,87€ 1.859,94
€ 2.499,84€ 2.452,24
€ 2.429,64€ 2.407,04
€ 2.384,44€ 2.131,14
€ 1.669,60
26
1.4 Opening Balance
1.5 Closing Balance
Debet Credit
Current assets Equity
Inventory -€ Share holders capital 1.160,00€
1.160,00€
Liquid assets
Cash 1.160,00€
1.160,00€ 1.160,00€
5-10-2015
Debet Credit
Current assets Equity
Inventory -€ Share holders Capital 1.160,00€
Profit 509,60€
Liquid assets 1.669,60€
Cash € 2.131,14
Short-term loans
VAT Payable 202,22€
Income tax Payable 152,22€
Payroll tax 107,10€
2.131,14€ 2.131,14€
29-1-2016