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Business Plan

Paper type: Essay
Pages: 20 (4983 words)
Categories: Bus, Business
Downloads: 14
Views: 11

Many and ifferent approaches has been used by companies to infect the consumer with the product advertised. Bangladesh has been proven to have one of the busiest streets, due to the increase in the number of automobiles traveling the streets, which lead to the more frequent unbearable traffic jams, and so, mobile advertising. Bangladesh at this point can be adopted ‘Mobile Billboard Business’ . Mobile Billboard Advertising Opportunity Because of our modern and fast-paced life, advertising is no longer limited to TV advertising.

And one of the advertising methods that have emerged recently, In ddition to Internet and DVRs, are mobile billboard advertising. It reaches the public on the streets and provides local and national businesses advertising opportunity that Isn’t dependent on any consumer activity. It’s Just simply there for them to see while they travel or are waiting for the traffic to move. Mobile billboards advertising is a growing industry and you can take the opportunity to learn from it yourself.

Some mld-slzed cltles In the U. S. are still getting Into It, and so most likely, you will be spared of a wide competition in this business.

And recent studies support the uperiority of mobile billboard advertising than traditional advertising methods Mission Statement Our mission is to provide affordable, superior, mobile billboard advertising Value Objectives Projected year for fiscal year 20_ ,wlthout external funding are expected to be . Annual growth is projected Goa I Vision Company overview page 20 of template Management The Main Institution will have a very simple yet effective administration, enabling a harmonized, well-coordinated and controlled atmosphere where the work is split among the employees to reach maximum effectiveness.

The office is sub-divided into different groups in order to accomplish the degree of professionalism at which Mobile Billboard Is. To reach up for the accepted standards dealt upon with Maln Office in Dhaka, because Mobile Billboard company should have to organize all procedures done by its’ employees to keep work running smoothly. Our company location from the other. The route where every driver is assigned has primary and secondary objectives. The main aim (primary) is to pass through certain checkpoints.

These check points are defined by the distribution of population throughout the country. Whereas, the secondary objective is to locate where coincidental gathering of population while traveling through its course. The driver may take this decision, “the driver at this point must enjoy the feeling of belongingness to the firm symbolizing Employee Empowerment. The routes are studied by a group of supervisors, they study road maps, new complexes and infrastructures that are to open soon, and any group activity that will be held, attended by a large number of individuals.

The office will also hold a secretary to coordinate appointments for future, potential, current, and past customers and linking them with management to nrich the public with as much product advertisements as possible. Also, a personal faculty that is responsible of truck maintenance and any mechanical failures that might occur. This faculty includes one driver; the driver is used for any mechanical failures taking place on the road Finally, decision makers; the company will embrace one accountant keeping account of all financial statements and estimating the year’s budget.

Then comes Operation Manager, according to Mr. GM , he foresees the company’s future, with better equipment, more professional staff, and the use of echnology. “We are : not only to satisfy our consumers satisfaction, and influencing the public, but also to insure a better run organization. On top of the hierarchy, the General Manager, he’s the person in charge of all the business’ day to day activities. He also has the last word in everything to be done to enhance the firm’s future activities.

Market analysis Based upon the percentages calculated from our survey results, of the 28,042 students in Boulder, CO, 24,139 of them ski and/or snowboard; of those who ski and/ or snowboard, 19,131 of them would utilize our service. Our projected customer base consists of 7% of the addressable market, which is 1,339 people. The University of Colorado records show that on average there is an approximate 5% increase in enrollment each year. Therefore, we are assuming that our potential and addressable market will also increase by 5%.

In addition, the skiing and snowboarding industry continues to grow and we assume that this growth will also increase our addressable market. Trends Affecting the Market As gas prices continue to soar, price-sensitive students want to avoid the high cost of driving to and from ski resorts. On average, a single trip will cost the driver over $28 in gas alone, which does not factor in maintenance and depreciation of the vehicle. Another important trend to consider is Eco-friendly opportunities; mass transit cuts per person emissions and benefits our environment.

In addition, the skiing and snowboarding industry is experiencing rapid growth as more and more people find interest in the sport. In the past four years the CU Ski and Snowboard Club has seen a steady growth rate of over 15% in membership. About do not have vehicles on campus. Also, Vail Resorts sales representatives have eported consistent growth in season pass sales for the last six years and skier visits have been continuing to all time highs. The snowboarding industry alone has caught the interest of generation Y and continues to set trends and grow in overall scope.

Competition Shred Sled’s major competitor is the University of Colorado Ski Bus. This bus is Jointly managed by the CU Outdoor Program and the CU Environmental Center. The Ski Bus operates Saturday and Sunday, beginning service the first week in December and ending service in mid-March. The Ski Bus is an ordinary charter bus that is equipped ith TVs and has a max capacity of 55 passengers. The cost to ride the Ski Bus is $10 round trip. You must be a CU student, faculty member, or guest of a student/faculty member to ride the Ski Bus.

The bus only transports students and faculty members to two different resort destinations: Breckenridge on Saturdays, Keystone on Sundays. The Ski Bus only picks-up passengers from campus. Its two pick-up locations include: William’s Village (where it picks-up passengers at 5:55 am) and the corner of Regent Dr. and Kittredge Loop (where it picks-up passengers at 6:10 am). The bus departs for the ski resort at 6:30 am. The bus begins boarding at the resort at 3:45 pm and leaves the resort by 4:00 pm. The Ski Bus operates at a 92% capacity rate, selling out over 60% of the time.

Other competitors include Colorado Mountain Express, Vail Coach, and limousine services. Colorado Mountain Express transports people from DIA to the Rocky Mountain ski resorts. This shuttle service caters to out- of-town travelers visiting and/or vacationing in the mountains. It runs to all the ski resorts in Colorado. It transports its customers in an 8-10 passenger Van, four-wheel drive Suburban, or Cadillac, depending on customers’ request. Vail Coach is very similar to Colorado Mountain Express.

It also caters to out-of-town travelers visiting and/or vacationing in the mountains by servicing a variety of airports in the state of Colorado. It transports its customers in an 8-10 passenger van or a four-wheel drive SUV, depending on the customer’s request. Limousine services could be considered an indirect competitor. They offer consumers luxury transportation services to and from a variety of destinations. The rates charged by these competitors vary on the number of people being transported and the distance being traveled. All of these ompanies leave at times specified by customers.

A major indirect competitor is Ski Carpool. Ski Carpool is a website where consumers can create a profile and network with other people interested in getting a ride/driving to the mountains. It is free to create a profile for Ski Carpool. Barriers to Entry Transportation services are considered a public utility in the state of Colorado. Every company interested in providing transportation services must fill out an application to operate as a common carrier of passengers by motor vehicle. This application must be turned in to the Colorado Public Utilities Commission.

The application is then reviewed and considered by the commission and is posted for 30 days. During the 30 days, any other bus carrier in the area has the right to contest the application and begin service in the area we apply to service in. If a company contests our application, we could take the matter to court and have a hearing where we express to the Judge why our company could provide this service better than the company Students in Boulder currently have extremely limited options when deciding how they will get to the mountains to ski or snowboard.

The first option is to drive, a long aul of well over two hours each way especially considering traffic. This is an option many students do not want to do to themselves or their vehicles. The second option is to carpool, a more popular choice with the increased price of gas hitting a student’s pocket more than ever. Still this option has its shortcomings. Many times drivers do not get reimbursed, and there is chance of being unable to find a carpool with extra space. Last of all is the CU Ski Bus, subsidized by the CU Environmental Center. This option may be cheap, but is extremely limited in both capacity and convenience.

Therefore, University of Colorado students and the even broader student population of Boulder need a convenient, comfortable ride to Summit County and other surrounding ski resorts. Business Strategy Demand/Revenue model Product Strategy Internet Strategy Marketing Plan & strategy Customer Research We conducted over 200 surveys to High School and CU students. Surveys were handed out in classes at CU as well as outside of local Boulder high schools. Using the percentages of our customer survey results, we concluded that out of our target age range of 28,042 people, 24,139 people either ski or snowboard.

Furthermore, we estimated that 19,131 of our target age range would be interested in using our shuttle service. Target Market Strategy Shred Sled’s target market includes three main categories. Consumers – Individuals: Our main target market includes high school and college students, ages 15-22 in the Boulder County area. Within this market we are looking to target the niche group of ski/snowboard enthusiasts. Breaking it down even further, we are aiming to attract a percentage of these enthusiasts who have trouble finding reliable transportation to the mountains.

Since Shred Sled’s buses will initially only service resorts offered on the Vail Resorts Colorado ski pass, our consumers will need to own this pass or be willing to purchase a lift ticket at one of the resorts. For those who currently attend CU, the CU Ski Bus is an alternative to our service. While the CU Ski Bus offers affordable transportation, many other factors of this service make it unappealing to students. These factors include: early pick-up times, only two destinations, lack of pick-up locations, inconvenient booking, etc.

Shred Sled will give these students an lternative to the CU Ski Bus, and offer features that cater to the needs of this market. Local high school students don’t even have the option of a bus, and must resort to carpooling in order to find a somewhat affordable ride. Shred Sled will offer a brand new alternative to this market. Groups: Shred Sled has the ability to cater to groups due to the large size of our busses. Another portion of our target market includes groups, birthday parties, etc. Shred Sled will target any group that is looking for an easy and affordable way to safely transport its members to the mountains.

Buyers – Since a majority of our market includes local high school students, Shred Sled will aim to target the parents of these students since they may be the ones who pay for the service. Shred Sled will target middle to upper class parents who are looking for a safe, reliable, and convenient transportation alternative for their children. Sponsors – Since Shred Sled plans to generate additional revenue by selling bus advertising. We are targeting large ski/snowboard manufacturers, ski resorts, and local retailers to pay for this service.

Channel Strategy At least initially, our only channel strategy will be E-commerce. Customers will be able to access our website and book their reservation for the bus. The booking process will be extremely simple, and customers will choose between trips depending on destination, date, and pick-up location. Customers will pay in full by credit card at the time of booking a reservation. Cancellations must be made more than a week before the time of reservation in order to qualify for a full refund. Positioning Shred Sled will be a shuttle service for the high school and college student.

The service operates around a relaxed time schedule, a casual, welcoming atmosphere, nd core skiing and snowboarding values. The bus will serve as a skier/ snowboarder’s link to the industry, something that people in this age range desperately seek out. Not only will our passengers enjoy comfort and convenience, but by riding in ski & snowboard company sponsored buses, they will feel closer to the industry than ever before. Shred Sled holds the image of a company not rooted in profits, but instead taking a grassroots approach to sharing our own passion for skiing/snowboarding with others.

Together we are pushing the ski/snowboard industry forward and providing a way to enjoy the community and friendship our port provides. Our name is not one of a bus company, but of a skiing company. We enable our customers to “shred” the mountain and that is our sole purpose. Buses will not compare to our “sleds”. Positioning Maps Product/Service Strategy In the first year of operation, Shred Sled will run three buses Friday thru Sunday, and service two mountain resorts: Keystone and Breckenridge. By the third year, Shred Sled will run seven different buses Friday thru Sunday, servicing Breckenridge, Keystone, and Vail.

Our schedule of pick-up/drop-off times will better meet the needs of our consumers. Our biggest competitor, the CU Ski Bus, currently picks-up passengers at 5:55 am and 6:15 am, and departs by 6:30 am. After conducting our surveys, we found that approximately 39% of our target market would prefer to depart between 8-9:OOam; therefore, Shred Sled will be departing at 8:30am. This is one way Shred Sled differentiates itself from competitors. Shred Sled shuttles will have some basic features that differentiate it from competitors.

Shred Sled shuttles will also be equipped with more entertainment features, (such as TVs and video game systems) than competitors. These features will increase the enjoyment of the eatures will increase the comfort and the nourishment of consumers. Pricing Strategy Ride to Summit County: $20 Ride to Vail: $25 Due to our high costs, variable and fixed, we are forced to do a cost + markup pricing strategy. Our target market is extremely price-sensitive, but our advantage comes in the fact that when our costs increase (i. e. as prices growing) the cost of an individual driving to the mountains increases even more (because of economies of scale). So our pricing will be focused on keeping a median between our costs and the price of driving individually. Partial Bus Advertisement: $3,000/yr Full Bus Advertisement: $5,000/yr When it comes to our sponsors, we plan on pricing our advertisements at a point that gives comparable value to the cost of magazine ads, something that almost all of these companies are familiar with. To do this, we compare our price with the potential number of people exposed to the ad (i. e. eople driving on 1-70, people passing it in the parking lot). We also must consider the feedback we have received from companies in the industry. This feedback encourages us to seek Joint advertisements on vehicles (i. e. a ski anufacturer and a shop that sells that company’s products). E-commerce Our website will play the key function of ticket sales. Due to the high costs of running a sales location and the relatively lower convenience, our website will be the only place to buy tickets. Shred Sled’s website will also feature all of our sponsor links, sponsor news, and general ski/snowboard news (i. . snow reports, terrain park reports, upcoming events). The site will be updated constantly to encourage repeat visits. Communication Strategy The majority of Shred Sled’s advertising will be conducted on the CU campus and Boulder high school campuses. For the CU campus, we plan to communicate to our target market by developing relationships with a variety of student groups and teams on campus, with the major ones being the Ski and Snowboard Club at CU, the CU Snowboard Team, the CU Freestyle Ski Team, the Outdoor Program, and the Herd.

We plan to gain exposure by distributing informational flyers and stickers to these clubs’ offices, attending and distributing flyers and stickers at their meetings and events, and having a link to our website on their website. Word of mouth will serve as another major source of advertising. For the Boulder high school campuses, we plan to communicate our business to the students, as well as the parents, by posting flyers on campus twice a month during the ski season and by advertising in monthly PTA newsletters for the months of October thru February.

E-commerce will be another one of our major communication strategies. Our website will provide potential customers with all the information they need to know about Shred Sled’s features, benefits, prices, and other general information. As previously stated, we plan on having a link to our website on CU clubs’ and teams’ websites, and vise-versa. In ddition, we plan on being mentioned in the Ski and Snowboard Club’s weekly e- mails. Another major strategy we plan on implementing is outdoor advertising on vehicles. All Shred Sled vehicles will have Shred Sled logos on them.

The cost of putting our logo on the vehicles will be included in the advertising cost charged to the companies sponsoring the vehicles. Sales Strategy Shred Sled will have a website on which customers can create profiles with an email some restrictions. If all seats are reserved, customers will be put on a waitlist. Cancellations must be sent by noon on the day before departure. If all seats are eserved and someone cancels, the first person on the waitlist will be notified. Shred Sled will only be accepting payments via credit card which will be collected through the website.

If consumers have problems, an e-mail address will be located on website for customer support. Risk The most immediate risk that the venture faces is the possibility of application denial by the Colorado Public Utilities Commission. To operate a commercial transportation company in Colorado, a venture must submit an application to become a “common carrier”. Considered as utilities in Colorado, new bus companies must be approved by a public board. During this process bus companies already in operation can contest the new ventures application and claim they already service the market.

To mitigate this risk we will keep our application very specific, this makes the market less attractive to currently operating bus companies and makes it more difficult to claim that they already service this market. Another risk that Shred Sled is faced with is the reliance on a single client for their summer operations. This will require management to actively seek other potential revenue streams for summer operations. Once several streams of revenue are established for the summer months, evenues will not be dependent on another business’ performance.

Operations What we do is take an ad from new and existing companies and place it in a display in your mobile advertising vehicle, and drive the truck on busy areas during traffic hours for 8 to 14 hours a day. You have to study traffic patterns of your city to effectively do this. we can charge for the services of your mobile billboard business per minimum number of hours, per week or month. The rates would depend on the route, the event and on the inclusion of specific services and feature such as GPS, driver, illumination, fuel, and the number of billboards.

Event could mean a product rollout, a grand opening, new business launches, or a marketing event to reach the mass or branding. OPERATIONS PLAN Shred Sled will be improving its customers’ ride to mountains by providing a convenient and cool alternative to driving. Shred Sled is turning the dreaded commute to the mountains into a fun filled, enjoyable experience. Since Shred Sled shuttles will be equipped with entertainment features and spacious seating, consumers will ride in style while being able to relax and enjoy the ride, rather than having to endure the hassles of driving themselves.

Operation Strategy In regard to operations, Shred Sled’s strategy is designed around providing value to customers by offering comfortable and convenient transportation to the mountains. Convenience is our main goal; therefore we strive to make every aspect of Shred Sled convenient for the customer. The procedure for delivering our service begins with the sign-up process, which is a simple two-step process on our user-friendly website. The customer will be able to reserve their ride online in a matter of seconds and in our customers is the pick-up locations and departure times.

Shred Sled will have two pick up locations: Williams Village (CU dorm off Campus) and campus Parking Lot 308 located across from Regent Administrative Center. These locations are ideal for our consumers for several reasons (see Appendix F Table 2). Shred Sled pick-up times will be at 8:00 am and 8:15 am. The shuttles will depart for the slopes at 8:30 am. Our survey data reveals that 39% of our target market prefers to leave for the mountains between 8:00 and 9:00 am; hence our departure times will add value for our customers.

Shred Sled will drop-off passengers right at the entrance of the resort, liminating the pain of finding a parking spot, paying for parking, and Jumping on a bus/walking to the entrance ofa resort. Shred Sled will begin pick-up at the entrance of the resort at 3:45 pm and will depart for Boulder at 4:00 pm, giving the riders the ability to enjoy a full day shredding the mountain. To view a Shred Sled Schedule, see Appendix F Table 1. Scope of Operations Initially, Shred Sled will lease buses and store them in a rented warehouse outside of Boulder (Louisville/Superior area).

Leasing will substantially cut down our start-up costs and decrease the overhead of the company. After the first year, we will begin urchasing some of the new buses. Buses will be wrapped in sponsor logos by Inkmonstr or another low-bidding graphic design firm, and the interior will be outfitted by a separate company as well. The buses will undergo regularly scheduled maintenance that will be outsourced to proper bus maintenance technicians. Buses will be operated and maintained otherwise by Shred Sled staff.

It will be extremely important that all staff members have a close tie to the skiing/snowboarding industry and understand the new directions and trends of the sports. The staff will be key to promoting our image as a “core” company. Sales will be conducted solely on our website which will be built and maintained in-house. To purchase tickets on the website, the user will be given a calendar of dates in which Shred Sled will operate. The user will pick a date to view where each shuttle is running and how full each of the shuttles are. The user can then pay for a ticket for one of the selected shuttles.

If maximum capacity has been reached for that particular shuttle, there will be a notification that the shuttle is sold out. Ongoing Operations Key Partners Shred Sled’s key strategic partners are high school and college clubs and student groups. More specifically, Shred Sled will focus on the Ski and Snowboard Club, Snowboard Team, Freestyle Ski Team, Alumni Association, Outdoor Program, and Backcountry Club at CU. These organizations fit exactly into Shred Sled’s target market, and by working closely with each, Shred Sled will be able to cater more directly to their needs and attain customer retention.

Specific arrangements with these groups include group transportation for trips, competitions, and events, as well as pricing incentives for members of these organizations. Shred Sled will also work to form strategic alliances with the ski areas that are serviced (Breckenridge, Keystone, Vail). Since all these resorts are owned by Vail Resorts Inc. , a single agreement will be made in order to obtain special permits for all areas. Benefits of this partnership will include but not be limited to preferred parking, incentive lift- alliance with the Boulder Outdoor Center.

Shred Sled will be paid a set per-trip-fee by Boulder Outdoor Center for all of its summer trips (Friday, Saturday, and Sunday only. ) Service Capacity Forecast Based on Shred Sled’s sales forecast, the company needs to operate its service at an average of 90% capacity per bus trip during the winter. Since each bus has the aximum potential of selling twenty-five seats at 100% capacity, an average of twenty-three seats must be filled per bus, per trip, in order to maintain our sales forecast. Necessary Property, Plant, and Equipment The company initially leases three, twenty-five passenger busses in order to meet the maximum inventory.

In year two, one of the new buses will be leased and the other purchased. In years three and four, each new bus (four total) will be purchased. These busses are stored in a rented warehouse outside of Boulder (Louisville/ Superior area) due to the inexpensive rent. Since maintenance will not occur in- ouse, the warehouse space will not serve as much more than a protective building to store the busses. Necessary Staff Initially, the staff for Shred Sled will consist of its four creators, Taylor, Chris, Courtney and Brad.

Three of the four will drive the vans, and the other will take care of business logistics, reservations, website maintenance, etc. As the company grows, new drivers will be added, allowing the owners to focus on new expansion and marketing strategies. New employees must have a clean driving record and obtain a commercial vehicle license. These drivers will be paid $10/hr during all time spent riving (approx. six hours per trip). Other services such as vehicle maintenance will be outsourced to local mechanics. Required Inventory Shred Sled’s inventory is basically the amount of available “seats” offered to customers.

Since the company runs three, twenty-five passenger busses, three times a week, the available inventory per week is 225. (25 avail seats x 3 busses = 75 seats; 75 seats x 3 times/week = 225 avail seats per week). This is the maximum inventory the company can offer. Shred Sled will offer a waitlist for any customers who are interested in making a reservation after a bus is full. Insurance The quoted cost of insurance is $7,000 per bus per year (quoted by TIB Insurance). This will purchase $1. 5 million of insurance coverage per bus which is the required amount by Colorado law.

Environmental sustainability Present situation Financial plan FINANCIAL PLAN Summary of Shred Sled Financial Projections (in dollars) Year 1 Year 2 Year 3 Year 4 Year 5 Summary Financials ($) Growth Returns Key Financial Model Assumptions To realize the revenues quoted in this model, Shred Sled buses must run at an average of 90% capacity in the winter months, 80% capacity in the summer. To do this, management must focus on promotion and market penetration. It will also be critical to search out possibilities of group sales and subsidization from campus organizations similar to the current CU Ski Bus.

Shred Sled must also operate an average of three trips per bus per week. These trips will be scheduled more frequently during peak season operations when demand will be high, and less during beginning/end of snow season to keep capacity high when demand is lower. In the summer months, six bus trips on average will be scheduled every week with the Boulder Outdoor Center. Each round-trip to and from the mountains, Shred Sled will sell an average of $30 worth of food and beverages. The products will be easily stored and will sell for an average margin of 75%-100%.

Bus sponsorships will break down to approximately 1/3 of advertisers purchasing full bus advertising, and 2/3 purchasing partial bus advertising. A full sponsorship will cost $5,000 a year and a partial sponsorship will run $3,000. The companies will pay for the cost of wrapping the bus in their logo and for additional equipment on the bus. Customer Acquisition Cost Shred Sled will be able to acquire customers for about $0. 3 each. This low cost is due to a concentrated promotional effort, for at least the first two years, which is highly visible but relatively inexpensive.

Promoting through student groups on the University of Colorado campus will give the company direct access to its market and will not require any high costs for advertising. After a customer is acquired, they will be worth $100 (5 rides) in annual revenues on average. Exit/payback strategy Summery Mobile Billboard advertising, growing at an unpredictable rate has the ability to advertise to more than 1. 500. 000 people a month, with this kind of adverting no one ncluding foreign franchisees and companies, can resist the temptation to view their products by such means. Expected) Every growing business hopes to get people’s attraction, now with the help of Mobile Billboard businesses dont have to worry about getting the public’s knowledge about the advertised product. Mobile Billboard has its special view to everyone on the road, the trucks themselves attract enough attention, people while driving or stuck in traffic read anything that comes their way and so they have a better percentage to read the truck ahead than reading a sign hat is a few kilometers away.

Cite this essay

Business Plan. (2020, Jun 01). Retrieved from https://studymoose.com/business-plan-31-new-essay

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