Sample Paper on Ohemel Limited Company Business Plan

Company Name          : Ohemel Limited Company

Address                       : P.O BOX 4384, London, UK Tel: 9980-9990101

Type of Business        : Sole proprietorship

Year Started                : 12th August, 2014

Place Started               : London UK

Founders                     : 1. Allan Brook

P.O BOX 1234, London, UK

Tel: 1234556

  1.           Straight Liner

P.O BOX 4321, London, UK

Tel: 56789123

Mission Statement      : Committed to avail smart gears for smart women now and for years to                                   come across the globe to support their confidence, and open their                                                        individuality with less emotional and financial costs for our customers.

The company’s mission statement is good as it declares and identifies its target market. It understands their needs and requirements and therefore commits the company to meet them without engaging the customers into a lot of emotional and financial costs. The fact that it considers the financial costs and emotional impacts of prices on their customers makes it a good mission statement. Besides, its goodness emerges from its visionary implication from the fact that it is not only concerned about now but also years to come. Additionally, the mission statement is clear and precise apart from the fact that it is specific and gives proper direction for businesses. The current owner of the company is Allan Brook who is the Chief Executive Officer of the com

Executive Summary

There are both positive and negative sides when women get the same rights as men. Women do not have enough time for their family, and more so their image. Psychologists state that 90 per cent of women turn to their service with the problem of diffidence. As it later turns out, this problem is associated with an appearance. Ohemel business was created in order to support women’s confidence; it opens their individuality with less emotional and financial costs. Ohemel will be located at the CBD of London and despite the competition in the business; it will rely on the maximization of the potential competitors’ weaknesses and emerge victorious. It is commonly known that if the person is in a harmony and the dress is an addition to the internal content of personality, this person is successful and full of strength for asserting itself in modern society. Ohemel will give its customers an opportunity to take the right place at work, in family, and friends’ environment. Therefore, the Ohemel hope to avail rent service of dresses and accessories from modern fashion brands. In order to make the services most integral, stylists, make-up artists, and hairdressers will be involved in various fields. To make the business services and products more comfortable for the clients, showroom and online service will be available for higher detail familiarization. The future prospects of the company will be to expand and grow in terms of services and customer base to be able to serve a variety of clients not only in the UK bust also establish numerous branches in various countries. The initial cost of establishing the company is estimated at £ 250 000, and this will be recovered at the initial year of the start of the business.

 

  1. Business Descriptions

Company Name: Ohemel Limited Company

Business Type: Sole proprietorship

Aim of the business: Ohemel Limited Company will provide a service to help every woman feel confident while choosing the dress for any occasion from the widest range of dresses and accessorizes to hire. Ohemel provides a service of confidence, happiness, and comfort to its customers.

  1. The Business Idea

Ukrainian people have a proverb that goes, “A good dress is a card of invitation, a good mind is a letter of recommendation” or in other words the proverb says that “fine dress helps to impress”. This is exactly what Ohemel Limited Company is committed to offer by satisfying all their customers’ needs and requirements by creating their perfect image with minimal financial costs possible.

  1. Business Goals

The business seeks to develop strong customer relationships and loyalty through the provision of shopping environment where women will feel comfortable and inspired by a wide range of stunning clothes and accessories depending on their tastes and preferences. This will be coupled with providing high-quality personalized assistance by professional stylist, organizing special events to existing customers and prospects, offering a complimentary service of hairdresser and make-up artist, and teaching women how to find their own unique style and stress their personality. In a period of between 3 to 5 years, Ohemel Limited Company seeks to expand its chain over the UK, and will open service for men and children as well to be able to meet the needs and demands of customers through a range of their unique services and products not only in the UK, but also across the world. Ohemel Limited Company team believes that nowadays men are concerned about their image as much as women do (Cavusgil et al., 2012, p. 89). In addition, Ohemel Limited Company wants to achieve recognition and cooperation with well-known people and journals to be able to reach the global market.

  1. Provided Services:

The company shall be committed to provide the following services to its target market

  1. Rent or hire dress for any occasion.
  2. Rent or hire women accessories for different auspicious occasions.
  • Exchange, sale or rent second hand dresses through Ohemel.
  1. Private artist, make-up stylist, and hairdresser.
  2. Unique Selling Point

The Unique Selling Point of Ohemel Limited Company is a comfortable format of a business, which will satisfy even strict customers’ needs. An exquisite show-room in the beautiful setting of Central London accompanied by fast and reliable online store is at the customer’s service 7 days per week. Furthermore, the assistance of a qualified personal stylist, hairdresser, and make-up artist will make the experience more enjoyable. Additionally, the uniqueness of Ohemel Limited Company business will be evident in variety of dresses that will be available in various sizes for pregnant women who do not want to break out of the normal rhythm of life. Moreover, a special service of returning the dresses, which are in a perfect/good condition will also be a unique feature, and will make sure that customers do not find it hard or tiresome to come again for our services and products (Cavusgil et al., 2012, p. 67).

 

  1. Profiling Customers

At the beginning of the company’s services, the priority of the business shall be guided by the following customer profile, which will include the following vital particulars.

  1. Gender: female
  2. Age: 18+
  • Income level: £2000 +
  1. Marital status: single, married, future parent, engaged
  2. Location: London, UK
  3. Occupation: business manager, singer, artist, auction house worker, model, student
  • Hobbies: fashion, social life, modeling, personal style

Ohemel Limited Company targets customers who are constantly in search of something unique, which can stress their personality. Women are socially active and always looking for beautiful and classy dresses at every aspect of their life. They like wearing fancy dresses, casual gowns, black tie, cocktail, and party frocks depending on various occasions or tastes and preferences. It is estimated that approximately 1,042,170 women aged between the age of 20 and 50 resides in London. Furthermore, there are approximately 31,726 brides per year in London, and this provides a large target market for the business to flourish (Granger, 2012, p. 23).

  1. Competitive Market Analysis

Basically, there are a total number of five competitors throughout London who are committed to provide similar services that Ohemel will provide. These companies include One Night Stand Company whose key strengths come from the fact that the company has 30 years experience in the market, and this has really helped the company to command a significant number of customers. The showroom has a central location in Chelsea, where this has really proved to be the company’s source of its strengths when it comes to comparing with other companies. However, the company’s weaknesses come from the fact that there are no online services and web catalogue to be able to increase customer base. This means that customers have to be physically resent to access the services. Additionally, the company provides just evening and special occasions dresses only, and this limits them to a specific number of customers while ignoring the rest. Ohemel Limited Company will utilize this opportunity and be able to maximize on this weakness and increase its market share across London (Cavusgil et al., 2012, p. 100).

Another company is the Wish Want Wear Company whose main strengths come from its wide range of dresses for different occasions. Besides, it is the only company that provides trial service, whereby 3 dresses are delivered at one’s door to try and then book one for accession. Its weaknesses lie on the fact that there is no actual showroom where the dresses can be fit, so the orders are made blindly. Girls Meet Dress.com is another competitive company whose strength lies in the company’s ability to provide a wide range of dresses but it is a pure online service with small unprofessional showroom for customers in London. Another company is the Dress Like the Celebs Company Limited whose weakness comes from the fact that it has very poor range of dresses and unknown brands with doubtful quality. Besides, it does not have a showroom, which is very crucial in fashion business. On the other hand, My Celebrity Dress Company, which has a wide range of well-known brand dresses and the possibility to find the exact dress as that of a celebrity is high. However, it has no showroom, and its website is not very usable (Gwilt and Rissanen, 2012. p. 32).

According to the findings about the strengths and weaknesses of the competitors, Ohemel will try to improve on its services, and maximize on the competitor’s weaknesses. So far, only one competitor has a professional showroom in London (Cavusgil et al., 2012, p. 77). Ohemel’s main advantage over the competitor’s will be to establish an exquisite showroom in Central London available for personal service. After the critical view of the competitor’s websites, Ohemel will make its own site more usable, clear, and better-viewed to be able to attract a broad range of potential customers.

  1. SWOT Analysis

The strengths of Ohemel lie within its quality and unique selection of products, high and personalized customer services, qualified and reliable staff, owner’s commitment and sense of purpose, and central location of its showroom as well as availability of an amble parking area nearby the showroom to ensure the customers’ convenience and comfort. Its weaknesses emerge from the fact that the owner is a foreigner and does not understand all Londoners nuances. However, there are a range of identified opportunities that the company can utilize to realize its goals, and they include the ability to advance and become number one in target market of hiring dresses in London, and expand its businesses not only within UK but also in other countries. Besides, it has the ability to cause people to exchange, resell, and rent own dresses as well as expand clientele to include men and children. Potential threats to the company include inability to attract the right amount of target consumers, the threat of competitors and new entries, inability to understand the fashion trends, unsuccessful yet expensive advertising campaigns, incorrect choice of business location even if it is centered, and misunderstanding of sizes needed (Granger, 2012, p. 43).

  1. Managing Market Risks

It is imminent that market risks are inevitable. Therefore, Ohemel considers potential risks and proposes possible solutions to ensure its success. Firstly, it is important to develop a good face of the company in a bid to miminize the risk of possible damage to the company’s reputation. Reputation risks can be destructive to any business. In a bid to avoid these risks, Ohemel will try to make effort and respond to each comment and complaint. Another key risk at Ohemel business is lack of customers. Therefore, Ohemel will try to reach as many customers as possible through high quality personalized service, advertising, and quality of services provided (Engle, 2010,p. 29). Setting wrong prices for new retail business poses a great risk to the existence of the company. It is always difficult to establish prices to be charged for business goods and services. Ohemel prices will be mainly based on market prices that are well researched, and found effective and affordable to the intended customers.

  1. Financial Analysis

As said before, the Ohemel business will be based on market prices. As far as the rental services are concerned, the prices per item will be calculated based on absorption pricing strategy, which depends on the cost of purchase and year of manufacture.

  1. Rent price for the dress will be 15-30 per cent of the purchasing price.
  2. Rent price for accessories will be approximately 15 per cent of purchasing price.
  • Prices for customers to rent their own dresses through Ohemel service will be negotiated (depends on quality, condition, and brand), but in any case the percentage of 20 per cent will be charged by Ohemel.
  1. Prices for make-up and hair dress will be charged based on average market prices or will be provided to customers as rewards.
  2. Prices for dry-cleaning and insurance will be included in rent price.

The percentage of price charged will depend on the initial retail price. The higher the retail price per item, the more percentage will be charged. The prices of Ohemel will be almost the same as that of the company’s competitors. However a small difference will be present. The prices of Ohemel services will be slightly higher than the market prices, and this will be because of the higher quality services rendered. The total expected revenue is approximated at

£54 100 703 per month, and this translates to about £649 208 436 a year.

Cost of doing business:

Expenses Expected Monthly Cost Expected Yearly Cost
Rent £50000 £ 600 000
Salaries and Wages £300000 £3 600 000
Supplies: Technological, Equipment, Furniture, Others. £40000 £480 000
Advertising and Other Promotions £150000 £1 800 000
Utilities: Heat, Electricity, Etc. £5000 £60 000
Insurance £4500 £54 000
Others Expenses £100000 £1 200 000
TOTAL   £23 994 000

 

  1. Marketing Plan

The company shall endeavour to develop a professional website, which will provide a functional and attractive communication platform for the company and its customers. The company will also hire a professional administrator who will ensure proper maintenance of the company’s Blog, and update the company about fashion trends, fashion in general, and other social events that present opportunities for the company to utilize. Additionally, the Blog will help in the attraction of new customer as well as keep in touch and inform existing customers. Customer attraction and maintenance will also be ensured through offering of discounts and rewards to customers. Advertising efforts will also include listing Ohemel on all popular local directories and location based services and applications (Gwilt and Rissanen, 2012, p. 37). This will also involve making the company’s website easily accessible among mobile users by developing an application for Ohemel where customers can efficiently log in and access the company’s list of services at their own convenience. Additionally, the company will endeavor to be socially active on all Online Social Networks, including paid advertising via Twitter, Facebook, and Instagram among others (Kabani, 2012, p. 138). The company will also organize seasonal promotions around festive seasons, such as Christmas and Valentine’s Day. Advertising will be stressed in various places where there may be potential customers, such as schools and colleges reaching for wedding agencies, photo studios, and beauty salons among others. Cooperation with journals, TV channels, and famous designers will be encouraged as a way of reaching out for more customers to market the company’s services.

 

  1. Staff

For the first period Ohemel will require the following employees:

Full-time employees:

  1. Two professional stylists who will work in a showroom daily help customers and help in purchasing dresses and accessories for the business.
  2. A person who will work online with customers.
  • An accountant
  1. Manager
  2. Cleaner
  3. Courier for delivery service

Part-time employees:

  1. Make-up and hair artist on part-time job.
  2. Photographer for the online catalogue and business’s events.
  • Blogger
  1. Premises

The premises required at start-up will include the showroom to be located in Central London (approximately 60m2). There will be a showroom, two fitting rooms, water closet, and a storage facility. The design of showroom will be observed in brand style and colors, which will be used in creating cards, packaging, and website.

Showroom equipment:

  • Reception desk
  • Computer with a point of sale terminal
  • Printer
  • Music center
  • Racks
  • Slat walls
  • Mannequins
  • Hangers
  • Tagging supplies
  • Cheers
  • Curtains
  • Carpet
  • Accessories shelving
  • Coffee machine with tableware

Fitting room equipment

  • Ottomans
  • Mirrors
  • Curtains
  • Carpets
  1. Suppliers

Because the main service carried out by Ohemel is rental and not sales, the suppliers will vary depending on the recurring fashion trends. There will be no permanent suppliers, due to Ohemel’s range of accessories that are replenished constantly. Two professionals will always be in search of something unique and fashionable to satisfy different customers’ needs.

 

References

Cavusgil, T. S., Pervez, N. G., &Ayse A. A. (2012).  Doing Business in Emerging Markets. London: SAGE Publications.

Engle, J. (2010). How to Open & Operate a Financially Successful Fashion Design Business. New York: Atlantic Publishing Company.

Granger, M. M. (2012). Fashion: The Industry and Its Careers. Edinburgh: A&C Black, 2012.

Gwilt, Alison and Timo Rissanen. Shaping Sustainable Fashion: Changing the Way We Make and Use Clothes. London: Routledge.

Kabani, S. H.(2012).  The Zen of Social Media Marketing: An Easier Way to Build Credibility, Generate Buzz, and Increase Revenue. Dallas: BenBella Books.