Opportunity Analysis Plan
Hi, I need help with writing a Analysis Plan for my final. Looking for 5 pages by this Friday March 11, 2016.
The business is a small plumbing and heating LLC company. Owned by one person, ran out of his home, supports the local community. Marketing done throught social media but lookings into other ventures.
I have attached what has been submitted in regards to the company already.
- This is a discussion of the logical progression for growing a business, which starts from the initial idea and grows into a viable business venture.
- The phasing approach should explain how the development phases minimize risk, aid learning/analysis at the earliest possible stages, and create a proper progression of the business venture.
- The goal of developing phases is to show how much risk is required for each phase compared to the expected outcome or return on the investment; phasing allows for learning during each step and creates a decision point prior to moving on to the next phase on whether to proceed, modify the business, or exit (with potentially a smaller overall loss).
- Potential planning and development stages/phases:
- Idea stage
- Concept stage
- Test marketing stage
- Product/service development stage
- Include anticipated resource requirements for each stage of development.
Plumbing & Heating LLC
The plumbing industry has a great business for an entrepreneur who desires to help the community and create a new company. A person can be in complete control, organize without having a great deal of capital. A plumber is a tradesperson who concentrate in installing and maintaining systems used for drinking water, sewage, drainage, etc. This type of business can be set up out of a home only need a commercial vehicle to travel to client’s homes or construction site. To begin this exciting business, you must either be a licensed plumber or hire a licensed plumber. A licensed plumber must have completed an apprenticeship or hands-on training and in the state of New Jersey also attend a vocational school for four years before having the privilege of taking the master plumber’s test. The subsequently large purchase is the equipment and tools needed to supply the commercial van. A great tip starts with basic supplies that are needed right away and used all the time. Then purchase the larger more expensive equipment as needed. The following task is to find a setting for your plumbing business, one that is growing. A decision on place determines how the business would like to be the appeal to the local market (Beesley, 2012). We live in a great time for free advertise thanks to social media but also having adds in the local newspaper is an excellent marketing tool as well.
Demand is currently exceeding the current supply for plumbers, twelve percent in the past five years in the state of New Jersey (Census). Experienced plumbers are retiring, government stringent the process to attain a plumbing license, and the shortage of young people entering the trade. This creates a significant opportunity for trained plumbers who wish to operate their businesses. In the state of New Jersey, sixty-five percent own their own home. In one county located in the middle of New Jersey, Middlesex County, the rent and housing market has increased by thirty percent over the last decade. Plus an additional fifteen hundred new homes in the past five years and the year 2014 the building permit approve was nineteen hundred. Every new home requires a plumber. Since the value of homes has grown so has the payroll by twenty-five percent over the past ten years, there are four hundred thousand plumbers (Census). The average plumber makes fifty thousand dollars in the state of New Jersey.
The plumbing and heating market is incredibly competitive. The barriers to entry and exit in this market are low for the reason for a large number of rival firms and high turnover rates (New Jersey Consumer Affairs). Shoppers have a significant amount of control since they have a large number of companies to choose from. In the state of New Jersey Gold Medal are the market leader with over seventy thousand customers and one hundred and twenty employees (Gold Medal Service Becomes BPI GoldStar Contractor, 2014). The second largest is AJ Perri which has over forty years of experience. However, both companies have a terrible reputation on Yelp for upselling, overpriced, and not fixing the job correctly. Knowing our competitors help us understand what our target market is looking for and what they do not what.
There various forms of market research; focus groups involves a situation where market research are conducted at focus group facility (Abrams, 104-108). An extremely beneficial market research for a plumbing firm is client’s feedback. An example would be a phone survey after the worker has completed the appointment; then the managers can listen to the feedback from the consumers about the product or service. The importance of carrying out market research enables a company to obtains information from the marketplace that it will utilize to solve particular problems and acquire crucial information from the competitors and decide on the needs and wants of non-paying consumers and customers. Marketers then analyze the data and develop various marketing strategies (Abrams, 104-108).
For a start-up plumber company their target market is their local community. Middlesex County has a mix of demographic areas, the southern part of the county has multiple retirement communities that require a different type of plumber. The older generation is looking for more than a quick fix, and they want a reliable professional plumber who is willing to take his time to ensure quality work. It is expected that after the task is completed, a retired customer enjoy spending time telling family stories before paying the invoice. This type of market requires extra time, but this market is also very loyal and tells all their friends and family. Expect business cards to be passed out after the appointment, prefer advertisement for this demographic. The upper part of the county is potentially of younger working families. This market prefers a quick plumber who will not try to upsell anything that they do not need. The younger generation will use referral service that will refer a professional and evaluate previous reviews. Also, they favor settling the account through an electric device or a credit card. Position the business in such a way as to solve the intended problem for each market.
Price is also a vital aspect when it to servicing the right in the market. Pricing directly affects creativity effort, sales volume, and cost value point. If the service is priced too high, then the company will not win any bids. If the price is too low, there will not be enough funds to cover the overhead and materials. If the value is not in line with the competition, the result is in insignificant sales and unproductive of the company (Condit, 2015). This usually requires re-evaluation to ensure the price is position appropriately. Typically, the positioning of the company should capture the buyers’ interest and the overall brand message. That is, for the business to succeed it must have the correct price in the perfect market at the precise time. Hence, if the decision on value was out of order, then, the product profitability can be jeopardized (Condit, 2015).
Stars and Stripes Plumbing and Heating is limited liability company located in Central New Jersey region. This family owned company provide high-quality craftsmanship in the plumbing and heating industry at a very competitive cost. This company is aiming to achieve a greater reputation for quality and on-time delivery than the current competitors in the New Jersey region. Much of our time will be spent consulting customers and suppliers, giving free quotes for potential customers in their homes and driving to jobs as well as actual hands-on plumbing and heating work in homes or businesses. One objective is to achieve a client mix of 40% commercial / 60% residential plumbing and heating contracts per year. Stars and Stripes Plumbing and Heating believes that it can improve on the value in this industry by establishing methods that will avoid many of the mistakes that other firms make.
The Best Business Structure for a Plumbing and Heating Company
The best business structure for a plumbing and heating company is a Limited Liability Company (LLC). Plumbing company may thus be regarded as an unincorporated form of business structure that is owned by only one person. But like in other business forms, you need to have the necessary licenses and permits from your local or state government so as to operate (Sullivan 2013, p. 57). In case you wish to operate this form of business under a different name from yours, then you have to choose for a fictitious name; a name that is not already registered by someone else.
Stars and Stripes has only one owner and makes decisions alone. Therefore, there are no delays due to disagreements with members due to certain decisions, such as the case in partnerships. However, a limited liability is only taxed twice, both the business and the owners are subjected to taxation (Sullivan 2013, p. 59). Additionally, one of the main complexities of forming a limited liability company is in raising adequate capital. In most cases, banks are reluctant to support the business especially when it is in its initial stages of its formation (Sullivan 2013, p. 60). Ultimately, the owner is still responsible for the success or failure of the business. Nevertheless, a limited liability is preferably the best due to its less personal risk which is comfort in a construction business where anything can go wrong.
Abrams, R. M. (2012). En-tre-pre-neur-ship: A real-world approach: Hands-on guide for today’s entrepreneur.
Beesley, C. (2012, January 4). How to Start a Small Construction or General Contracting Business | The U.S. Small Business Administration | SBA.gov. Retrieved February 21, 2016, from https://www.sba.gov/blogs/how-start-small-construction-or-general-contracting-business
Census. Retrieved February 18, 2016 http://factfinder.census.gov/faces/nav/jsf/pages/searchresults.xhtml?refresh=t#none
Condit, B. (2015). The four P’s of marketing your fleet. Fleet Owner, Retrieved from http://ezproxy.snhu.edu/login?url=http://search.proquest.com.ezproxy.snhu.edu/docview/1695968291?accountid=3783
Gold Medal Service Becomes BPI GoldStar Contractor. (2014, January 14). Retrieved February 21, 2016, from http://www.benzinga.com/pressreleases/14/07/p4698595/gold-medal-service-becomes-bpi-goldstar-contractor
New Jersey Consumer Affairs. Retrieved February 18, 2016 http://www.njconsumeraffairs.gov/plu
Sullivan, A. S. (2013). Economics: Principles in action. Upper Saddle River, New Jersey 07458:
Pearson Prentice Hall. p. 29- 63