Final report - New Innovation

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232010-15 Course MARK1174: Business Proj 2 (Value Chains) Course School/Level S/UG

Coursework Business Project - Project Report Assessment Weight 55.00%

Tutor A Romanova, CN Tite Submission Deadline 29/04/2016 MARK1174 - Business Project (2)

Coursework is receipted on the understanding that it is the student's own work and that it has not,

in whole or part, been presented elsewhere for assessment. Where material has been used from other sources it has been properly acknowledged in accordance with the University's Regulations

regarding Cheating and Plagiarism.

000819487 Piratheep Balachandran

000829496 Dominic Dyer

000816538 Callum West

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New Innovation

Department: Faculty of Engineering, University of Greenwich

Title of Project: Business Plan Development

Client: Wood Interior Solutions

Senior Management

Name: Piratheep Balachandran Name: Callum West

Banner ID: 000819487 Banner ID: 000816538

Course: Business Administration with Course: Business Administration with

Accounting & Finance Marketing

Role: Chief Executive Officer Role: Chief Communications Officer

Name: Dominic Dyer

Banner ID: 000829496

Course: Business Administration with

Marketing

Role: Chief Financial Officer

Junior Employees

Name: Lorne Saunders Name: Henry Thompson


Course: Business Administration Course: Business Administration

Role: Market Research Analyst Role: Market Strategist

Name: Ryan Fosbeary Name: Jemma Patrick


Course: Business Administration Course: Business Administration

Role: Financial Assistant Role: Financial Assistant

April 2016, 7876 words

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Content page:

1. List of Tables 4 2. List of Figures 5 3. Introduction 6 1. Background of the company 6 2. Team Roles 7 3. Current Project 9 Methodology 10 1. Qualitative Research 11 2. Quantitative data 11 3. Porters 5 Forces 12 4. SWOT Analysis 12 5. Competitor Analysis 12 6. PESTLE Analysis 12 7. Marketing Strategies 12 4. Results 13 1. Marketing Analysis 13 2. SWOT Analysis 13 3. Porters 5 Forces 14

4. Competitor Analysis 16

5. Marketing Mix 18

6. PESTLE Analysis 20 5. Financial Analysis 22 1. Year 1 22 2. Year 2 23 3. Year 3 24 6. Conclusion 26 7. Recommendations 29 8. Sub- Recommendations 31 9. Financial Report 33

1. Travel Expenses 35 10. References 39 11. Appendix 40

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List of Tables

Table 1 Page 22

Table 2 Page 23

Table 3 Page 24 Table 4 Page 34

Table 5 Page 36

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List of Figures

Figure 1 Page 35

Figure 2 Page 35

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Introduction

Background of the company

New Innovation is a consulting firm in Medway that serves businesses, governments and non-

governmental organizations (NGO’s) in a variety of areas including finance and strategy. We help our

clients make long-term improvements to their performance and realize their key goals.

Our Vision is to be recognised as the leader in quality and value and as a critical component of

corporate strategy to keep and clients and employees pleased. Our vision is that New Innovation will

be recognized as the professional service organization that accomplished the balance between

outstanding client service, a focus on family and the financial success of the firm. This will be

accomplished by creating a culture of pride and passion that will enable us to continue attracting

and retaining the best and brightest professionals, who will be rewarded, recognized and respected

for their contributions to a firm that is founded on shared core values.

Our Mission is to serve our clients by providing the highest quality professional services that address

their business issues. We attract, recruit, and retain the most knowledgeable and passionate

professionals, and we provide a collaborative culture that enables them to thrive professionally and

personally. We deliver superior financial results to the investment community while contributing to

the communities in which we live and work.

Our Objectives as a company are as followed below: Integrate stakeholders – all stakeholder benefit from the integration of the business and are

engaged in decision making

Improve processes – through the processes of overlooking research stages and also scrutiny during production and development and implementation

Increase cost efficiency – by providing the best cost effective way to accommodate the client’s needs and wants best

Globalisation – integrating internationally and appealing to the rest of the world with unique innovative ways

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Team Roles

Piratheep Balachandran Chief Executive Officer (CEO)

Business Admin with Accounting and Finance

Callum West Chief Communications Officer

(CCO) Business Admin with Marketing

Dominic Dyer Chief Financial Officer (CFO)

Business Admin with Marketing

Chief Executive Officer (CEO)

The CEO’S role is to satisfy the needs of employees, customers,

investors, communities, and the law. Typically, the CEO has

responsibilities as a director, decision maker, leader, manager and

executor. As a leader of the company, the CEO advises the board of

senior members, motivates employees, and drives change within the

organization. As a manager, the CEO presides over the organization's

day-to-day operations. The CEO’s job is setting strategy and vision,

building corporate culture, leading the senior team, and allocating

resources’ capital.

Chief Communications Officer (CCO)

The CCO of a company is the corporate officer primarily responsible for

managing the public communications of the business, both internally

and externally. This executive is typically responsible for

communications to a wide range of stakeholders, including but not

limited to employees, shareholders, media, bloggers, and influential

members of the business community, the press, the community and

the public. Typically, the CCO may partner with others in the

organisation to communicate with investors, analysts, customers and

company Board members.

Chief Financial Officer (CFO)

The Chief Financial Officer is primarily responsible for managing the

financial matters of the company. The CFO is also responsible for

financial planning and record-keeping, as well as financial reporting to

higher management. The CFO's duties include financial planning and

monitoring cash flow. He/she analyses the company's financial

strengths and weaknesses and suggests plans for improvement. The

CFO is similar to a treasurer or controller in that he or she is

responsible for overseeing the accounting and finance departments

and for ensuring that the company's financial reports are accurate and

completed on time.

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Lorne Sanders Market Research Analyst Business Administration

Henry Thompson Market Strategist

Business Administration

Market Research Analyst

The Market Research Analyst researches and gathers data to help a

company market its products or services. They gather data on consumer

demographics, preferences, needs, and buying habits. They collect data

and information using a variety of methods, such as interviews,

questionnaires, focus groups, market analysis surveys, public opinion

polls, and literature reviews. Other roles is to help determine a

company’s position in the marketplace by researching their competitors

and analysing their prices, sales, and marketing methods. Using this

information, they may determine potential markets, product demand,

and pricing. Their knowledge of the targeted consumer enables them to

develop advertising brochures and commercials, sales plans, and product

promotions.

Market Strategist

The Marketing Strategist manages the resources and openings in the

marketplace to leverage those opportunities to an organization’s best

advantage. These professionals must consistently communicate with

professionals and managers in other departments to keep marketing

strategy and knowledge dissemination about products, services, and

goals consistent across the organization. Marketing strategists may also

help identify market demands for new products and services by

compiling consumer feedback and conducting market research. Other

common tasks for marketing strategists include performing high level

market research and analysis, determining marketing resource

allocations, and reporting findings to upper and executive management.

Jemma Patrick Ryan Fosbeary

Financial Assistant Financial Assistant

Business Administration Business Administration

Financial Assistants

The Financial Assistants role is to assist the CFO in the activities that the CFO is in charge

of and to ensure that everything is accurate and completed at the set time. 8 | P a g e

Current Project

Client: Wood Interior Solutions

Title: Business Plan Development

The client’s needs and expectations was the need of a business plan. The company, Wood Interior

Solutions, current problem was that they want to enter the UK market however they have a limited

knowledge of the market itself and so they needed a plan and guideline as to how they were to

enter the market and establish a place and reputation there.

The aim of the project was to develop a business plan for the company with a vision of 3 to 5 years

incorporating all of the critical milestones and analysis of the resources, competition and tactics.

The objectives of the project were to:

Evaluate the potential opportunities and pitfalls this business can face in the first 3 to 5

years of existence;

Develop a competent Business Plan for first 3-5 years of the business.

Wood Interior Solutions is a small enterprise business which has been operating in European Market

and Eastern Market for many years now, however decided to franchise and offer services in the UK.

The business model in the UK bespoke furniture market is different to that of EU and the East and

the company requires consultancy services so that the concept of the UK business as well as

appropriate business model can be tailored to the needs of this company.

Upon the request of the client, Wood Interior Solutions, New Innovation had created a business plan

using marketing analysis and financial analysis projecting the company’s success outlining the

opportunities and threats that they will face in the 3 to 5 years of business activities.

In this report, we shall provide and explain the justifications that we have come up for Wood

Interior Solutions such as the company itself and what they currently do, what they might face when

they move into the UK market, how they might address these issues and what the company’s

position be in the UK market by using marketing and financial analysis.

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Methodology

In this report, New Innovation was instructed to create a competent Business Development plan for

Wood Interior Solutions. The aim of the business development plan was to forecast a vision of the

upcoming three to five years incorporating all of the critical milestones also a detailed analysis of all

of the resources and an in-depth analysis of the competition and the tactics which they used which

Wood interior Solutions could potentially implement.

‘Methodology is the systematic, theoretical analysis of the methods applied to a field of study. It

comprises the theoretical analysis of the body of methods and principles associated with a branch of

knowledge. Typically, it encompasses concepts such as paradigm, theoretical model, phases and

quantitative or qualitative techniques.’ (Irny 2005).

Throughout the project New Innovation carried out in depth detailed data collection through the

methods of Primary and Secondary research, in order to give the client Wood Interior Solutions

a detailed Business Development Plan of the upcoming three to five years. The Primary research

methods allowed New Innovation to explore the notion of Wood Interior solutions entering the

United Kingdom marketplace and allowed us to analysis information and acquire data first-hand,

rather than being gathering data already collated by another source.

In contrast to this Secondary research allowed New Innovation to use information and data already

published by another source and thus further help support our findings. Our Secondary research

included the use of pricing and figures from Competitors already in the United Kingdom and

Government reports were made public through libraries and the Internet. Throughout the entirety

of our research process, New Innovation studied and analysed a multitude of websites and articles in

order to achieve the highest Business Development Plan possible.

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Qualitative Research

Qualitative research is the gathering of data/information in a non-numerical form, thus an example

of this would be the interviews or a questionnaire with open-ended answers. Taking this into

consideration New Innovation hosted an interview with the client (Appendix 1), Wood Interior

solutions in which we fielded a large range of questions in order the gather data and information

which would aid us in our Business Development Plan. The interview questions were mainly aimed

around Wood Interior Solutions past history and what they were aiming to achieve through

entering the United Kingdom marketplace, and through this we were able to record practical and

realistic objective for Wood Interior Solutions.

Quantitative data

Quantitative research is more of a logical and data led approach which provides a measurement

from a statistical and numerical viewpoint (B&L 2015). Therefore through using this type of method

for collecting data and information, New Innovation were able to identify a number of factors in

Wood Interior Solutions entering the United Kingdom marketplace. These included risk and

limitations potentially facing the client, Wood Interior Solutions. The way in which we used this

method was through using government surveys and websites which publish data on tax rates and

exchange rates, we also used competitor sites and university sites to gain a better understanding of

the topic and thus in our Business Development plan this is shown.

New Innovation ensured with the business development plan that it included an evaluation of the

potential opportunities and pitfalls, Wood Interior Solutions could face in the first three to five

years of existence in the United Kingdom marketplace.

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The processes and functions which we implemented in a Business plan included the following:-

Porters 5 Forces– New Innovation used Porter’s five forces as a framework so that it could show an

analysis of the level of competition within the industry which Wood Interior Solutions was entering.

SWOT Analysis – New Innovation included a SWOT (Strengths, Weaknesses, Opportunities, Threats)

Analysis in the Business Development Plan for Wood Interior Solutions in order to show the four

elements of (Strengths, Weaknesses, Opportunities, Threats), through this the client Wood Interior Solutions is able to see what it’s doing right, what it needs to improve upon, what future

venture’s may occur and what it needs to be wary of.

Competitor Analysis– New Innovation included a competitor analysis in order to show the client,

Wood Interior Solutions. A detailed analysis and evaluation of their competitors strategies and thus

through this an explanation of their competitors strengths and weaknesses relative to Wood

Interior Solutions own products and services.

Marketing Mix–New Innovation included a marketing mix within the report in order to show the

client the set of actions, or tactics which it uses for its brand and the product and services which it

offers.

PESTLE Analysis –New Innovation included a PESTLE (Political, Economic, Social, Technological,

Environmental) analysis in order to show the client Wood Interior Solutions an analysis of the macro

environmental factors which have an influence on them. Through this it helps identify threats and

weaknesses which aided with the SWOT analysis.

Marketing Strategies–New Innovation also included a detailed explanation of a variation

of marketing strategies which Wood Interior Solutions should implement this included

Word Of Mouth

Networking

Online Marketing

Competitor Analysis

The Business Development Plan forecasting the upcoming three to five years for Wood interior

Solutions also included a detailed in-depth broadcast of the Cash-Flow statement and Analysis, Profit

& Loss, Balance sheet and Breakeven analysis.

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Results

From our findings and research through various methods we had formulated and wrote up several

marketing analysis and financial analysis showing the business, their current position, what they face

and how they can approach and confront the problem.

Marketing Analysis

SWOT Analysis

Strengths

Strong USP

WIS' unique selling point of high-quality wood home interior and furniture is a strong element of

their marketing mix. The high levels of quality in their products and services will mean an

opportunity for premium pricing and an increased likelihood of positive word-of-mouth

advertising.

Range of products and services

WIS' portfolio of products and services, including wood interior, doors, kitchens and bespoke

furniture, is large enough for them to have a presence in many different markets. While these

markets are different, they are similar enough in a way that marketing strategies won't be too

drastically different between them. This will save time and costs in marketing these different

products and services.

Weaknesses

No current market share-

As WIS currently has no market share and very little presence in the UK at all, it will be difficult to

generate sales in these markets with already well-established businesses. This fact will need to be

taken into account when considering all areas of the marketing mix.

Limited resources for promotion

Currently, WIS uses solely word-of-mouth promotion to raise awareness of their products and

services. While this can prove to be effective for how cheap it is, it may prove difficult to raise

awareness without a costlier promotion strategy.

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Opportunities

Commercial interior market-

One market that WIS is looking to enter is offering interior design for commercial businesses such as

restaurants, pubs, hotels etc. Within the area of central London, there doesn't seem to be many

other businesses in this market. While some interior design firms offer services for offices, no other

business offers services similar to WIS. This could give WIS a USP that will allow them to thrive in

this market.

Demographics in London-

Primarily targeting potential customers in London, there are many areas in London with a

demographic of WIS’ targeted customers. There are many areas in London where wealthy people

have bought what may be their last house and will be interested in the style of interior design

that WIS offers.

Threats

Changes in customer tastes-

While there are some potential customers within London who may be interested in WIS’ products

and services, the trend in interior design in central London is more modern style interior design of

flats and apartments. While this may be a gap in the market for what WIS offers, it’s more likely that

central London isn’t the best place to aim for home interior design.

Threat from competitors

The nature of the interior design market means that most customers want it to be fashionable,

meaning they are more likely to read up on the already established interior design firms and

designers in London. As WIS has yet to have any presence in the UK, it may prove difficult to

generate sales.

Porters 5 Forces

Supplier Power: Due to Wood Interior Solutions only having currently one supplier this means that

this supplier has high power over the company as they can manipulate prices to their own

advantage and cause Wood Interior solutions to potentially pay more than other suppliers.

Buyer Power: Wood Interior Solutions are new to the UK therefore they have not obtained a

customer base yet. Therefore due to having near to no buyers yet, new buyers can drive prices down

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with ease as Wood Interior Solutions are dependent on their first customers in order to succeed.

However, as this business sells bespoke objects customers may not be price sensitive as it is a high

end product, this decreases their buying power.

Competitive Rivalry: There is a wide variety of competition within the bespoke wood industry and all

the competitors are very capable. Competitors such as: Afdesignslondon, Bespokelondoninterior,

Lapthorn furniture etc. all provide equally attractive products and services, therefore Wood Interior Solutions have little power as buyers and suppliers will go somewhere else if they don’t get a good deal

from Wood Interior Solutions as they have many other companies to choose from. However, Wood

Interior Solutions provide a variety of services such as: furniture, Interior design, doors, bedrooms

kitchens etc. This is unique as the majority of the competitors provide only one or two of these services.

This can be used as a USP as it provides a huge strength for Wood Interior Solutions.

Threat of Substitution: Anyone with enough experience and the correct equipment can make

bespoke furniture. However, the problem lies within how they make the product. There are two

ways to make these products and that is to handcraft it and create a bespoke piece, or manufacture

it so it is just a standard product with no finesse. Manufacturing the product is much easier to do,

whilst providing a much more effective and faster way to move the products. This substitute is also

viable therefore Wood Interior Solutions power would be weakened by this.

Threat of New Entry: The risk of this happening is rather average as in order for people to enter this

market they would have to fit the criteria of time, money and compete with your key technology. No

matter how competitors plan to manage their time, in order to produce high quality bespoke

products a lot of time is needed as Wood Interior Solutions can only deal with 2 orders at a given

time. However, if competitors found a way to overcome this time, whilst still providing high quality

then they would be a serious threat. Also costing involved when buying resources i.e wood for

creating bespoke products comes at quite a high price as the resource is a natural material. Due to

this the price hardly changes when buying from a supplier. The chances of a competitor being able

to come into this market and buy supplies at a low price and manage their time so it costs little is

very low, therefore they cannot compete effectively. This market requires experience and known

contacts in order to optimise performance.

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Competitor Analysis

Wood Interior Solutions – Wood Interior Solutions aim is to provide bespoke high quality wood

furniture solutions, free-standing or integrated, kitchen units and full interior designs throughout the

United Kingdom, with their initial target audience being the south east of London.

Through Wood Interior Solutions planning to specifically target the South East of London it will be

up against quite a few competitors which also specify in creating bespoke high quality wood

furniture solutions, free-standing or integrated, kitchen units and full interior designs such as:

AFdesignslondon

SebastianCox

BespokeLondonInterior

AFdesignslondon – AFdesignslondon can be thought as Wood Interior Solutions biggest threat in

the South East of London, due to the fact that they also specialise in creating bespoke high quality

wood furniture solutions, free-standing or integrated, kitchen units and full interior designs (Andrea

Felice Furniture, 2016). Andrea Felice Designs London has also been featured in the press quite

frequently and thus has gathered a huge respectful reputation throughout the industry and is

trusted. Decorex, the Financial Times, the London Evening Standard and Vogue Living Australia,

therefore this shows that they have an effective advertising strategy alongside have a string

foundation with the media.

Sebastian Cox – Sebastian Cox is also a significantly big threat to Wood Interior Solutions they are

based in Woolwich in London so are in the South East region of London, they specialise in

handcrafted British furniture. Sebastian Cox has done quite a few collaborations which singles they

are a renowned company, examples of this are there collaboration with deVOL for a kitchen in which

they sought to return British hardwoods especially English Beech into the British kitchen. Other

collaborations which Sebastian Cox have had include The Glenlivet, Benchmark, The Wish List and

The Invisible store of Happiness these collaborations range from a specialised drinks trolley to

elegant furniture to designs which would feature in festivals. Sebastian Cox himself the founder of

Sebastian Cox has featured in the press a few times, Homes & Gardens, The Sunday Times, Elle

Decoration are examples. Sebastian Cox has also won some quite big awards further enhancing their

reputation, The Wood Awards, Homes & Gardens Designer Award 2015 and Elle Decoration British

Design Awards 2014 are some of the awards which they’ve won (Sebastian Cox, 2016).

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BespokeLondonInterior – Bespoke London Interior is based in London and specialises in providing a

complete and full service from the furniture design and planning to the installation into the

customer home, fitted bedrooms, built-in wardrobes, living rooms & hall cabinets, libraries & home

office furniture and bathroom cabinets & bespoke joinery are examples of service which Bespoke

London Interior are able to do. Compared to AFdesignslondon and Sebastian Cox Bespoke London Interior aren’t as big of a rival however they specialise and work in creating bespoke furniture which is

the area which Wood Interior Solutions is looking to dominate. Unlike the other two Bespoke London interior hasn’t received any awards or featured in the press and thus they have a different

market strategy and can’t rely on their reputation to gain customers and thus it shows that they must

have a strong marketing strategy. As the Headquarters of Wood Interior Solutions is based in

Rochester, Medway. Local competitors need to be considered. The local competitors include know

companies such as B&Q, Argos, Wilkinson’s and The Range. All of these companies have a significantly

strong customer bases and are well respected in the industry. These companies however don’t

specialise in high end bespoke furniture and thus don’t pose an immediate threat to Wood Interior Solutions as Wood Interior Solutions will be providing furniture of a much higher

quality and standard. In the immediate area of Medway the major competitors for Wood Interior

Solutions include Home plus Furniture and Lapthorn Furniture (Bespoke London Interior, 2016).

Home Plus Furniture – Home Plus Furniture is based in Ashford, Kent. Even though they don’t deal

with bespoke ‘high end’ furniture they offer a large variety of wood furniture with the list of wood

they provide include Oak, Pine, Acacia, a range of Cromer grey, Mist Oak and the classic Canterbury

Oak range which also consists of a variety of wood. In this sense Home Plus Furniture is a huge

competitor as they offer a large amount of the same wood brand as Wood Interior Solutions at a

lower price and thus potential customers may feel more inclined to purchase furniture off Home

Plus Furniture then Wood Interior Solutions (Home Plus Furniture, 2016). Therefore in order to

prevent this scenario Wood interior Solutions will need to prove that they provide and gather a

reputation for providing a better quality service, in which the customers will feel they’re

benefitting by paying more.

Lapthorn Furniture - Lapthorn Furniture is based in the Historic Dockyard, Chatham. Lapthorn

furniture is run by its founder Andrew Lapthorn who is a bespoke furniture designer and maker who

creates unique designs predominately with wood. Lapthorn Furniture is a major local competitor for

Wood Interior Solutions at they are currently providing bespoke furniture to variety of the local

clientele such as , The University of Kent, The University of Canterbury Christ Church, RSPB and

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Medway council, thus Lapthorn Furniture is a threat to Wood Interior Solutions as they already have

a trusted strong relationship built up. Wood Interior Solutions however provide a wider selection of

services in comparison to Lapthorn furniture who specialise in bespoke furniture whereas Wood

Interior Solutions specialise in bespoke high quality wood furniture solutions, free-standing or

integrated, kitchen units and full interior designs. An additional advantage which Wood Interior

Solutions has over Lapthorn Furniture is that they’re able to provide a level of customisation and

personalisation to each customer easily and efficiently as for example the customer sends a picture

of their furniture that they have a fancying too and the criteria that fits them best. Wood Interior

Solutions then will propose designs and quotations based upon this; this can be classified as a

Unique Selling Point for Wood Interior Solutions (Lapthorn Furniture, 2016).

The chief competitor in the industry for Wood Interior Solutions is AFdesignslondon they’re the most

renowned out of all the competitors through being featured in very reputable press. Bespoke

London Interior and Sebastian Cox are also significant competitors in a sense but Wood Interior

Solutions have a larger amount of services compared to both of them they need to wary that these

companies don’t gain a market advantage on them through the fact they are able to focus on less

services and thus be able to offer a better product. Home Plus Furniture is a competitor in the sense

they offer a variety of wood which Wood Interior Solutions also offer however through the ac that

Wood Interior Solutions offer a bespoke product is the Unique Selling Point which will give them the

advantage over Home Plus Furniture, Wood Interior Solutions need to have an effective market

strategy which ensures that potential customers feel fulfilled in paying their prices and thus don’t go

to other companies such Home Plus Furniture, Argos, B&Q and He Range who all have a large

customer base and also have multitude of stores throughout the United Kingdom. Lastly Lapthorn

Furniture are a local chief competitor as they provide products and service to many local clientele

and thus Wood Interior Solutions need to ensure that they are able to replace Lapthorn Furniture as

the main man in Medway through effective marketing and excellent service.

Marketing Mix

Price – An effective pricing strategy needs to implemented as Wood Interior Solutions are offering

bespoke high quality wood furniture solutions, free-standing or integrated, kitchen units and full

inferior designs which are a lot of services with a finished product which is of the highest thus the price

needs to shows this however deals need to be added in the first 6 months or so such as 10%-20% if a

client gets work done within the open time period of Wood Interior Solutions being set up

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or a discount if they recommend Wood Interior Solutions to another person who then gets

work done.

Product – Wood Interior Solutions aim is to provide bespoke high quality wood furniture solutions,

free-standing or integrated, kitchen units and full interior designs throughout the United Kingdom.

Promotion – The most effective and successful way for Wood Interior Solutions to enter this

new market is through productive advertising and promotion.

Newspaper Advertisement – Wood Interior Solutions should look to place adverts in the

Medway Messenger, London Times and Kent Messenger/Online.

Television Advertisement – A clever advert on TV is an effective way to gain customers

through the endorsement of a famous celebrity this could be a way for Wood Interior

Solutions to gain and be seen by customers.

Newsletters & Postcards – Emails, Newsletters and Postcards to customers who registered

on a signup sheet on a high street or in store.

Incorporating Social media could be a cheap easy way of promotion which Wood Interior

Solutions could consider.

Place – The United Kingdom, target audience is South East London.

People – Wood Interior Solutions need to ensure that they have the right people in charge to lead

them whilst they enter the United Kingdom market. They are a new entrant into the market and

there are established companies with reputable reputations and large customer bases which are

going to make it as hard as possible for them to gain a percentage of the market share.

Process – The service which Wood Interior Solutions needs to be exceptional as the service is a part

of what the customer is paying for and very often they’ll be present thus the third party contractors’

which Wood Interior Solutions are going to hire to complete installations need to be able to be

trusted and understand that they’re are effectively going to be the face of Wood Interior Solutions. Physical Environment – If Wood Interior Solutions set up a shop where customers could come in and

interact with employees of the company and get a sense of which they are it would be of a benefit

to them as a face to face dialogue between customers will be able to be built. Also through having a

physical shop for example and having a modern shop which is clean and tidy will also help build up

an image of Wood Interior Solutions which will only be positive

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PESTLE Analysis

Political Economical Social Environmental Technological Legislative Sweden is the The UK has a large Wood Interior Solutions Around 5,000 If the latest Wood Interior largest producer impact on the will have to consider species of animals technology is used solutions will of Timber in the global timber social trends within the and 30,000 species effectively Wood have to abide by EU, and because trade—it is the UK, as the current trend of plants are interior solutions can the Consumer Sweden and the world's fifth largest seems to be a modern protected by CITES take the lead within rights act if they United Kingdom importer of crude slick look. However at varying degrees. the market. wish to sell their

are members of wood products, and Wood trends consist of a (Australian products.

the EU, there is the third largest clean, more rustic Government

no import duty. importer of paper aesthetic. 2015) (Europa,2015) products. Timber is

duty free and has a

VAT rate of 20%.

(Reducing

Greenhouse Gas

Emissions from

Deforestation

2009)

Is the UK The pricing of local By considering the All imports and Upgrading the We will have to politically stable? rivals will affect our wealth distribution in exports of the manufacturing ensure materials May not be as sales price, as it will the UK, we can locate species covered by process could allow are sourced from Election has just be important to what area has the most the Convention is for a higher quality of a responsible passed, therefore offer a competitive appropriate target regulated by the product to be supplier. changes can occur rate. audience. According to corresponding produced. Also the Documentation within the next 5 an article in the guardian Authorities. rate at which stating that the years until the the wealthiest products shall be forest can be next election. households by region shipped out could harvested for

were located in South increase. wood may be East England and required to verify London. (Heather this. Stewart, 2015)

An upcoming Pricing for interior Changes in trends for In the 2015, the 6 The website may

referendum to design services interior design firms in month period deter potential

determine changes from job to central London. Increase to September had customers, as many

whether the UK job. This makes it in more modern designs an average price for people will be looking

will remain in the difficult to compare offered, very little softwood saw log for a quick price

EU could have pricing strategies 'traditional' style sales at £38.63. comparison.

drastic effects on with competitors. wooden interior. However the

the import fees of decrease from

timber from £49.55 in the 6

abroad. We may months to March

have to look at 2015 and £44.06 in

non-EU exporters, the 6 months to

such as Norway. September 2014

shows how soft

wood prices have

been falling rapidly.

(Forestry

commission. 2015)

Saw log prices Woodland Interior Services and products Woodland Interior

have fallen faster Solutions intends to offered by WIS more Solutions intends to

in Europe than in operate likely to appeal to older operate

the rest of the predominantly in demographic, home- predominantly in

world for the past London. The London. The

20 | P a g e

18 months, with competition is owners who are in the competition is clearly

the ESPI Price clearly strong in last house they'll live in. strong in this market,

Index reaching a this market, as just as just from using the

five year low in from using the key key words “Kitchens,

the 3Q/15, words “Kitchens, London” we can see

reports the Wood London” we can four paid for adverts

Resource see four paid for on Google.

Quarterly. adverts on Google.

(WRILLC,2015)

Bytestart. (2015), WIS. (2016), BfC. (2014),

21 | P a g e

Financial Analysis

From our findings and research through various methods we had formulated and wrote up financial

analysis showing the business, their current position, what they face and how they can approach and

confront the problem.

Year 1

£

Sales £ 292,170.00

Total Cost of Sales -£ 193,550.00

Gross Profit £ 98,620.00

Expenses £ 160,110.00

Net loss -£ 61,490.00

This is a short statement showing the estimated financial position of the company in the first year (full

cash flow budget and Income Statement is shown in Appendix 7 and 10). As shown in the cash flow

budget (see Appendix 4) the opening balance will likely be from personal capital that the company

founders and other senior management will bring forth in order to finance the company, however it is

assumed that £20,000 out of the £100,000 will be funds borrowed from payables e.g. banks, debenture

holders etc. Within the first two months it is likely that the company will not make the necessary sales

needed in order to increase cash flow since they are company that is entering a new market. The

expenditure is higher that the income since they need to ensure that the company name is recognized,

for example the Marketing expenses is £1000 in the first month because the business will want to

promote their company through various means and they would want to put on exhibitions in order to

show case their products to consumers. The supplier price at the first month will be a huge amount since

they inventory is being kept early in the cases that customers will purchase later in the year, which then

decreases supplier costs as shown in the budget since the inventory is already in place. However, in the

third month it is expected that sales will increase due to the marketing and show case of products, and

in the fourth month there is a likely chance that there might be a huge sale for decoration of £9000

which is a wine cellar decoration. It is assumed that the company will get some requests for decoration,

shown on the budget within the year but

22 | P a g e

not as many as this is the first year and sales are not likely to sky rocket. Supplier prices will increase

as consumers will likely purchase beds, dining table and wardrobes in the first year, and kitchen and

bathroom purchase will happen but not as often. Although the kitchen and bathroom income will

support the cash flow of the company. Within April 2015 to December 2015, salaries will stay the

same however later during the end of the first financial year the salaries will increase due to

profitability and expansion of the company. At the end of the second financial year the budget

shows the company making a near £3,100 cash inflow, though it is the first year and is projected that

cash inflow will increase in the second year of trading activities. At the end of the financial year it is

estimated that the company may make a £61,000 loss.

Year 2

£

Sales £ 627,270.00



Expenses £ 190,120.00

Net Profit £ 31,300.00

This is a short statement showing the estimated financial position of the company in the second

year (full cash flow budget and Income Statement is shown in Appendix 8 and 11). As shown in the

cash flow budget (see Appendix 5) the opening balance will be from last year’s cash inflow of £3015

and additional personal capital that the company founders and other senior management will bring

forth in order to finance the company, however it is assumed that £5,000 out of the £28,015 will be

funds borrowed from payables e.g. banks, debenture holders etc. Since it is the second financial

year of business there is fair amount of sales during the year, and also since it is expected that the

company’s profile will increase within the year there will be more decoration sales. It is expected

that decoration sales will happen at least 1-3 months after trading activities, but sales of bathroom

and kitchen renovations to start quite early. From the budget the supplier price at the first month

will be a huge amount since they inventory is being kept early in the cases that customers will

purchase later in the year, which then decreases supplier costs as shown in the budget since the

inventory is already in place. In the third year however the supplier price might be quite low since

23 | P a g e

near the end of the financial year there may be some inventory left that can be sold in the next

trading year. Expenses are high since the company will need to pay of its payables, pay rent and hire

sub-contract labour for the major sales i.e. kitchen, bathroom and general renovation, and so it is

assumed that more staff will be needed so wages will increase due to additional recruitment

however this may happen between August 2017 to March 2018. It is anticipated that there will be

high sales in the bed, wardrobe, cabinet and chair departments since they are made from high

quality wood such as pine, oak, birch and cherry. The chairs are vintage so this would attract niche

customers so it is predicted in the budget that there will be favourable for retaining extra income.

The expenditure is expected to be higher than income since factors such as importation of products,

delivery costs, repairs and maintaining the products and the sub – contract labour (people hired to

install and work on the kitchen, bathroom and general renovation areas) must be taken into

consideration. Marketing expenses are not as high as the first financial year, however the company

must still make their company profile stand out so expenses for marketing are still present just as

accounting. At the end of the second financial year the budget shows the company making a near

£60,000 cash inflow, because of factors such as seasonal demands, potential niche customer

retainment and attraction of competition. At the end of the financial year it is estimated that the

company may make a £31,000 profit.

Year 3

£

Sales £ 863,150.00



Expenses £ 232,760.00

Net Profit £ 37,840.00

This is a short statement showing the estimated financial position of the company in the third year (full

cash flow budget and Income Statement is shown in Appendix 9 and 12). As shown in the cash flow

budget (see Appendix 6) the opening balance will be from last year’s cash inflow of £96,300 and

24 | P a g e

additional personal capital that the company founders and other senior management will bring forth

in order to finance the company, although since the company has a decent cash balance and capital

funds it is assumed there will be no loan needed to finance the business. It is projected that in the

third financial year of business sales will increase drastically during the year, since the company is

familiar with the market now and able to implement strategies to boost sale performance. It is

expected that decoration sales will happen at least 1-2 months after trading activities, but sales of

bathroom and kitchen renovations to start quite early. Expenses are high since the company will

need to pay of its payables, pay rent and hire sub-contract labour for the major sales i.e. kitchen,

bathroom and general renovation, and so it is assumed that more staff will be needed so wages will

increase due to additional recruitment however this may happen at the end of the year. Supplier

prices is projected to increase as well storage expenses due to expected expansion of company. It is

predicted that there will be high sales in the bed, wardrobe, cabinet and chair departments since

they are made from high quality wood such as pine, oak, birch and cherry. The expenditure is

expected to be higher than income since factors such as importation of products, delivery costs,

repairs and maintaining the products and the sub – contract labour (people hired to install and work

on the kitchen, bathroom and general renovation areas) must be taken into consideration. Income

will be mainly from the decoration area of the business, so this will increase income however this

will also raise the supplier price quite high as shown in the budget. So the cash flow per month will

be expected to be quite low since the company will need to pay for the materials which is located in

Northern and Eastern Europe. Marketing expenses are not as high as the first financial year,

however the company must still make their company profile stand out so expenses for marketing

are still present just as accounting. Reasons why marketing expenses hasn’t increased drastically was

due to research based on the limited competition around the area that the company will operate

from. Sub-contract labour will be at its highest comparing from the last two years since there is

projected income coming from kitchen, bathroom and renovation sales, in which the company hires

independent contractors. At the end of the third financial year the budget shows the company

making a £134,000 cash inflow, due to anticipation that suppliers will increase prices of goods,

expansion of company and increased costs in sub-contract labour. At the end of the financial year it

is estimated that the company may make a £37,000 profit.

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Conclusion

After carrying out the necessary research and putting together their findings, New Innovation were

able to conclude with some factors that would need to be taken into consideration when creating a

marketing strategy for Wood Interior Solutions. It was identified that Wood Interior Solutions

biggest assets are their high-quality materials used in their products and services, as well as their

wide range of products and services when compared to other similar firms. These assets will allow

Wood Interior Solutions to stand out from the already established competitors. It was also identifies

that a potential market that Wood Interior Solutions may excel in was the commercial interior

market, offering interior design services for commercial businesses such as restaurants, pubs and

banks. There are currently very little competitors offering the same quality and style of interior

design for commercial buildings currently, meaning Wood Interior Solutions’ high-quality will stand

out even more in this market. Another opportunity identified was a potential demographic in London of which Wood Interior Solutions’ style and price may appeal to. Many areas in London, and

area of interest for the client, have expensive, period housing in which older, wealthy people will

own and may want to spend money on decorating. While the market for commercial interior design

may seem to be more reliable for Wood Interior Solutions, it is promising that there will still be

somewhat of a market for home interior design.

New Innovation also identified that Wood Interior Solutions’ greatest weaknesses were that they

currently do not have any market share in the UK. While increasing their market share was a desired

objective expressed by the client, it is still very difficult to generate sales and market share from

scratch. Combined with another weakness of having limited resources for promoting the business,

careful consideration will need to be taken when constructing a marketing strategy that raises

awareness and generates sales at the lowest cost possible. It was also identified that Wood Interior

Solutions would have to look out for the already well-established competitors already in the market

for interior design, kitchen fitting and furniture. There are already many businesses and brands in

the UK, and particularly in London, that have market awareness and market share. Without any

current presence in the UK market, Wood Interior Solutions will find it difficult to persuade potential

customers to purchase from them rather than their competitors. Another factor that will need to be

considered is changes is customer tastes, as many interior design firms have adopted more modern,

minimalistic designs. Wood Interior Solutions’ more traditional style of wooden interior and

furniture may not be as popular in the current market and sales may suffer as a result. Because of

this, it may be more effective if Wood Interior Solutions focusses their efforts on the commercial

interior market rather than home interior.

26 | P a g e

From these findings, New Innovation was also able to conclude that Wood Interior Solutions’ current

supplier situation means that their supplier has some power over the business. As Wood Interior

Solutions currently sources their wood materials from a single European supplier, that supplier will

be able to raise their prices without any alternative supplier to turn to. To avoid possible rising costs

from this supplier, as well as the cost of transporting materials from outside the UK, another supplier

may need to be found. It was also identified that although Wood Interior Solutions has no current

market share in the UK, the high-end nature of their products and services mean there shouldn’t be

any problems caused by buyer power.

Of the competing businesses that were identified by New Innovation as part of their research, AF

Designs London has been classified as the largest threat within the London market. This firm too

specialises in bespoke wooden furniture, kitchen units and interior design. As this firm is very similar

and is well established in the market, competing against this business could prove difficult. Another

significant competitor that’ll need to be taken into account is Sebastian Cox, another firm in London

that too offers custom furniture. 5his firm is also well-established within the market, winning

numerous awards and receiving press coverage and therefore awareness. Bespoke London Interior,

another London firm that offers similar services as Wood Interior Solutions, is not as well known in

the market but may still prove to be a significant competitor. There are many other firms based in

another area of interest for Wood Interior Solutions, Kent, such as Home Plus Furniture and

Lapthorn Furniture. While many of these firms do not offer the same high-end, bespoke products

and services as Wood Interior Solutions, this is possibly due to differences in economic

demographics of the area. This could prove to be a gap in the market that Wood Interior Solutions

can take advantage of, or could prove to be a market not suited for their high-end products.

From New Innovation’s financial estimates and predictions, Wood Interior Solutions first year will

not be profitable. It is predicted that because of their limitations at this point, Wood Interior

Solutions will not be able to generate enough sales to cover their initial costs. At this point, Wood

Interior Solutions will also have to spend more on marketing and promotion of the business to

raise awareness Because of this, Wood Interior Solutions is estimated to have a net loss at around

£61,490. However, one objective set by Wood Interior Solutions was that the first year was not

about making profit, but increasing market share. This will be done in a variety of ways detailed in

the market strategy section of the business plan. In the second year, it is predicted that Wood

Interior Solutions will achieve increased market share to some extent. Because of this, sales will

increase and Wood Interior Solutions will break even and make a net profit of around £31,300. While Wood Interior Solutions won’t have to spend as much on marketing and promotion, some

costs may increase, such as labour, supply, rent and payables from the previous year. In the third

27 | P a g e

year, it is predicted that Wood Interior Solutions’ sales will continue to increase as they gain

more awareness and market share. Total cost will also increase slightly as costs of supply and

labour increases. However, Wood Interior Solutions will still finish their third year with a net

profit of around £37,840.

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Recommendations

• Find a local supplier since costs of bringing materials abroad is expensive and time

consuming – safer option regarding upcoming referendum

Finding a local is cheaper and a more efficient way of bringing products and services to customers,

and since Wood Interior Solutions is entering a new market this would be the preferred option that

they should take. There is the upcoming referendum is being held on Thursday, 23 June to decide

whether Britain should leave or remain in the European Union. The EU is a single market in which no

tariffs are imposed on imports and exports between member states Court, C. (2016).

If the referendum does pass, Britain risks losing some of that negotiating power by leaving the EU,

but it would be free to establish its own trade agreements. Wood Interior Solutions would lose out

with international trade as they would be paying even more if they were to continue to trade

outside the UK.

• Company can extend range of products and services that is suited to target audience,

which may help generate more revenue i.e. re-upholstery, wood preservative, wood re-

polishing

Currently the business offers a range of products and services including decoration and bespoke

furniture, however if they introduce more products and services they will potentially attract more

customers thus expanding their target audience.

• Focus marketing on commercial businesses rather than homeowners

From gathered research throughout the project we had found out that even though homeowners

were preferred as a target audience, the company would benefit from focusing their marketing

strategies on selling to commercial businesses. It is estimated that the profits will rise more if the

business was to introduce more pattern ranges in their decoration department as said on their

website.

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Analyse Project Quality by creating a Quality Plan to ensure that it meets all criteria and to

identify project risks

Making and carrying out a set quality plan for the project, will set the specified guidelines as to the

purpose of the project and what the end result should be. An established and sound connected plan

sets the group the goals that is needed to be achieved and the objectives which can be attained as

effectively and efficiently as possible. Thus, thorough goals and objectives enable us to find out what

we are doing and the problems that might occur during the process of carrying out the project. The

quality plan also produces a system of regular review of our project performance and will help us

make any improvements where necessary, including how to prevent us from repeating things and

making the same mistakes. Moreover, using a quality plan can help us review our project as a whole

by measuring it with the goals we have set ourselves to achieve. By using a quality plan for our

project we can be able to evaluate the goals and objectives set as the quality plan needs to match

what we set ourselves otherwise we won’t be able to achieve said goals and objectives.

Conduct further extensive research by using different research methods

Conducting further research by using different research methods will increase our chances of

obtaining more information about the prices of specific wood, costs of manufacturing furniture

products and information about different suppliers. Different research methods are constructive as

to finding more means as to how we are to gather information regarding Wood Interior Solution’s

business plan since the information provided from research can help us go even more in-depth as to

provide Wood Interior Solutions with a more construct analysis, though using more research

methods does have a downside as it could be time consuming therefore reducing the time we have

left to complete other tasks for the project. An example to conduct further research is by emailing

or telephoning companies, suppliers that are in trade of specific wood and to gather much

information from them in order to create marketing analysis showing what Wood Interior Solutions

would need to do in order to achieve this goal, however this may be an issue since companies may

not be privy to share information about their company to others and so limited information would

have been gathered if it were the scenario.

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Sub – Recommendations

Marketing Strategies

Expeditions:

The existing company operating in Europe uses expeditions as its strongest form of marketing,

travelling across Europe to present their products in a showroom format, attempting to

demonstrate the quality of their products and start to build relationships with potential customers.

Wood Interior Solutions intends to replicate this strategy, as the long term costs are comparatively

small (with other approaches) and the opportunity to effectively market the company is strong. At

this early stage, the company will focus its methods predominantly in the south of the UK, so as to

keep operating costs low and appeal to more local customers. As we become more successful, and

the company has established a strong brand name in the local area, we can look to operate in less

saturated markets, further away from Kent. Small close-knit populations such as villages are the

ideal targets for this strategy, as these are the types of communities where people know one

another, and can therefore provide strong word of mouth marketing. Furthermore, the buildings in

these sorts of areas are likely to be cottages and well-aged homes, with which wooden, older looking

furniture may be more suitable. One of the unique selling points of WIS is its focus on tailor made

products, unique to each customer’s desires. Expeditions are therefore only effective as far as

portraying former work to the market, which makes it imperative that any examples displayed are of

an extremely high standard.

Word Of Mouth:

This technique is the most effective for the twin company in Europe, as when done properly it can

provide a steady, continuously growing flow of customers at a very minimal cost. We believe that

such a strategy will be effective in the UK given that its success has been proven on a multi-lingual

platform, and will thrive even further in a technologically advanced, single language environment. In

order to be proficient with this method, it’s vital that the company focuses funds on excellent

customer service and quality, so as to create a positive brand image, which can only be commended

when talked about. Whilst the company’s short term objective is to gain market share, we must

ensure that appropriate quality assurance methods have been rigorously applied in production, to

guarantee the products reach and even surpass customer expectations. Although such techniques

will be costly initially, the long term benefits of having a strong brand image will no doubt prove

incredibly beneficial. A form of set referral system which would encourage past customers to

recommend the company to the surrounding area, may be necessary to make this method most

effective.

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Networking:

Networking offers the opportunity to gain business from indirect competitors that offer a similar

type of service as ourselves, but focus on different styles and the primary use of different materials.

This mutually beneficial method is reliant on pre-agreed terms with other companies, to encourage

customers to look at an alternative portfolio if we/they cannot provide what is desired. Like word of

mouth this technique is normally without charge, and will help provide us with customers we may

not have yet appealed to.

Online Marketing:

At present, the company already boasts an impressive website, allowing potential customers to

observe and gain an example of the type of products on offer. This is currently the complete scope

of the firm’s online capabilities, as it lacks the ability to compete with its rivals in this sense. Other

furniture companies offer much sleeker and efficient sites, whilst also being well established on

forums, review sites and various search engines. Being truly proficient with this method requires

funding that Wood Interior Solutions may not have whilst investing in other marketing techniques.

It is therefore reasonable to focus the company’s efforts and finance in alternative methods of

marketing, so as to avoid directly (and probably ineffectively) contending with larger companies that

have more competitive power.

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Financial Report

The Table below shows an accurate reading of New Innovation finances throughout the project, New

Innovation was allocated with a budget of £11,800.00 and were instructed to show an accurate

reading of their expenses throughout the project this is all shown in the table below.

The table shows how each of the seniors and juniors were allocated a fixed salary for the project:-

(New Innovation is composed of three seniors and four juniors)

bp403 CEO – Salary / y = £1000, Salary / h = £25.00

dd2327e CFO – Salary / y = £800, Salary / h = £20.00

cw5826k CCO – Salary / y = £800, Salary / h = £20.00

ls3507p Market Research Analyst – Salary / y = £800, Salary / h = £15.00 th521 Market Strategist – Salary / y = £800, Salary / h = £15.00

rf4314t Financial Assistant – Salary / y = £800, Salary / h = £15.00 pj625 Financial Assistant - Salary / y = £800, Salary / h = £15.00

In total the senior and junior salary came to a total of £1,745.00 with £845.00 coming from the

salaries of the seniors and £900.00 from the salaries of the juniors. From the course outline it stated

that each member of the company was contracted to work 40 hours per week, however due to

circumstance such as staff members not living in a close proximity of each other the hours of 40

hours per week wasn’t achieved, this is all shown in the table through the number of hours worked

(see Appendix for actual weekly minutes spent on the project).

bp403 CEO – 13 Hours

dd2327e CFO – 13 Hours cw5826k CCO – 13 Hours

ls3507p Market Research Analyst – 16 Hours th521 Market Strategist – 14 Hours

rf4314t Financial Assistant – 15 Hours pj625 Financial Assistant – 15 Hours

In the table, New Innovation have illustrated a weekly budget which shows the weekly and final total

expenditures, total of hours worked, the salaries earnt by each staff member throughout the

project, client fees, consultant fees and other fees such as travel.

From the presentation day in which we, New Innovation were selected to carry out the project of

a Business Development Plan forecasting the upcoming three to five years for Wood Interior

Solutions, we agreed with the client a tender fee of £ 8800.00 this accompanied with our existing

budget of £3080.00, New Innovation had a budget of £11,800.00 for the project

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Table 4

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Throughout the project of a Business Development Plan forecasting the upcoming three to five

years for our client Wood Interior Solutions, we were charged a fee of £10.00 every time we made

contact with the client, Wood Interior Solutions. Also an additional fee of £12.00 every time we

made contact with our consultant this information is all shown in the table and thus throughout the

entirety of the project New Innovation paid the expense of £10.00 for client fees and £18.00 for

consultant fees.

The following images show to important factors in New Innovation’s Business Development Plan

for the client, Wood Interior solutions. Thus the image to the right shows the total amount of hours

each staff member of New Innovation spent on the Business Development Plan for New Innovation.

Whereas the other image shows the hours spent in total combined by each staff member on the

project, a Business Development Plan for Wood Interior Solutions forecasting them entering the

United Kingdom marketplace in the upcoming three to five years.

Hours Spent on Total Hours

Project each week

15 13 100% 15 13

50%

14 14

16

0% 1 2 3 4 5 6 7 8 9 10

Staff bp403 dd2327 cw5826k bp403 dd2327 cw5826k ls3507p

ls3507p th521 rf4314t pj625 th521 rf4314t pj625

Figure 1 Figure 2

Travel Expenses

In this element of New Innovation financial report is the amount spent by staff on travel expenses

for meetings within the company itself and for meetings with the consultant and the client Wood

Interior Solutions.

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Travel spendings Costs Total justification

Week Descrpition

W1 Piratheep, Callum, Dominic, Ryan, Lorne, Henry, Jemma

Took National Rail to 30 St Mary Axe (The Gherkin) to meet client and supervisor. Ticket price was £15 £105.00

per person

Arrived at Station and took 2 Taxis to 30 St Mary Axe (The Gherkin) to meet client and supervisor. Prices £30.00

for both taxis were £30 in total

£135.00

W2 Piratheep, Callum, Dominic, Ryan, Lorne, Henry, Jemma


per person



£135.00

W3 Piratheep, Callum, Dominic


per person

Arrived at Station and took taxi to 30 St Mary Axe (The Gherkin) to meet client and supervisor. Prices for £15.00

both taxis were £15 in total

Ryan, Lorne, Henry, Jemma

Took Student Coach to Greenwich Campus. Prices of ticket was £6 per person £24.00

Arrived at Greenwich Campus and took taxi to 30 St Mary Axe (The Gherkin) to meet client and £15.00

supervisor. Prices for taxi was £15 in total

All members of group had met outside the Gherkin £99.00

W4 Piratheep, Dominic, Ryan


per person



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Lorne, Henry, Callum





W5 Piratheep, Callum, Dominic, Lorne, Henry, Jemma


per person



£120.00

W6 Piratheep, Callum, Dominic, Jemma, Ryan, Lorne, Henry


Arrived at Greenwich Campus and took two taxi to 30 St Mary Axe (The Gherkin) to meet client and £30.00


£72.00





£72.00

W8 Piratheep, Ryan, Lorne


per person



Dominic, Jemma, Callum, Henry


37 | P a g e








£72.00 W10 Piratheep, Callum, Dominic, Ryan,

Lorne, Henry, Jemma

Took National Rail to 30 St Mary Axe (The Gherkin) to meet client and £105.00

supervisor. Ticket price was £15 per person

Arrived at Station and took 2 Taxis to 30 St Mary Axe (The Gherkin) to meet £30.00

client and supervisor. Prices for both taxis were £30 in total

£135.00

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Table 5

References

Andrea Felice Furniture. (2016). Home. Available:

http://afdesignslondon.blogspot.co.uk/p/intro.html. Last accessed 19/03/2016. Atelier, R. (2014). Varieties of Wood . Available:

http://www.finefurnituremaker.com/beautiful-wood/. Last accessed 09/04/2016.

Australian Government. (2015). internationally endangered plants and animals

(CITES). Available: https://www.environment.gov.au/biodiversity/wildlife-trade/cites.

Last accessed N/A

Bespoke London Interior . (2016). Home. Available:

http://londonbespokeinteriors.com/. Last accessed 19/04/2016.

BfC. (2014). About the Furniture Industry . Available:

http://www.britishfurnitureconfederation.org.uk/about_furniture_industry.php.

Last accessed 09/04/2016. Bytestart. (2015). Business Taxation – What are the main taxes?.Available:

http://www.bytestart.co.uk/main-business-taxes.html. Last accessed 09/04/2016.

FORESTRY COMMISION. (2016). Timber price Indices. Available:

http://www.forestry.gov.uk/forestry/infd-7m2djr. Last accessed 11/04/2016.

Heather Stewart. (2015). Almost half of Britain's private wealth owned by top 10% of

household. Available: http://www.theguardian.com/money/2015/dec/18/britain-private-

wealth-owned-by-top-10-of-households. Last accessed N/A.

Home Plus Furniture . (2016). Home. Available: http://www.homeplusfurniture.com/.

Last accessed 19/03/2016.

Lapthorn Furniture . (2016). Home. Available: http://www.lapthornfurniture.co.uk/.

Last accessed 19/03/2016.

N/a. (2015). Forestry statistics in detail. Available:

http://ec.europa.eu/eurostat/statistics-explained/index.php/Forestry_statistics_in_detail.

Last accessed N/A.

Sebastian Cox. (2016). Home. Available: http://www.sebastiancox.co.uk/. Last

accessed 05/04/2016.

UpgradeSpace. (2016). Appliance, Fixture, and Furniture Cost.Available:

https://upgradespace.com/resourcecenter/appliancefixturefurniturecost. Last


WIS. (2016). Home. Available: http://www.woodinterior.co.uk/. Last


Your Bibliography: Reducing Greenhouse Gas Emissions from Deforestation. London:

Stationery Office, 2009. Print./infd-7m2djr. Last accessed N/A

WRILLC. (2015). Sawlog prices have fallen faster in Europe than in other regions the

past 18 months, the ESPI Price Index reached a five year low in the 3Q/15. Available:

http://news.cision.com/wood-resources-international-llc/r/sawlog-prices-have-fallen-

faster-in-europe-than-in-other-regions-the-past-18-months--the-espi-price-,c9880376.

Last accessed N/A.

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REDUCING GREENHOUSE GAS EMISSIONS FROM DEFORESTATION

In-text: (Reducing Greenhouse Gas Emissions from Deforestation 2009)

Appendix Appendix 1: Notes taken from first meeting with client Business was started in 2015

Process of setting up start up Key sections – mUK market is new area for business Start up Who are your target audience? Audience is flexible one segment individual housefolks and other segments SME small businesses Limitations geographically No limit whole of Great Britain, productions

Outsourced suppliers (looking at a cheaper supplier) Marketing plan have an idea of where we should be acting who we’re targeting market analysis,

marketing plan, swot analysis, financial plan, no balance sheet just profit statement cash flow

statement profit and loss statement 3 years is enough focus on two first years, one direction –

exterior doors, kitchen, any type of integrated furniture, Potential to see failures Kitchens – 8 weeks tp produce a kitchen can handle 3 kitchens, 20k – delivery cost – optimal margins – competitors price startgey – 2k kitchen delivery cost – potential time to set up a deal sign contract

5 weeks- 4 weeks to produce delivery 1k- exterior interior doors 4 doors at a time delivery cost being

500 on average, think about capacity how many customers can be handled. Sources from money European business and personal money Aim to parctcipate in different expeditions and display products, word of mouth is important Networking and expeditions Rent venues for client meetings

Display shop, suggestions In the uk just setting up, How does the installation work – bult in Europe the company would hire an assembling company if not have staff come over and put it together Trading standards First two years is gaining a market share, not for profit Get a specific customer – hosuhold folks, sme, who would buy our products Stuff which the company produces may potentially increase in price Quality focus on quality, bespoke should fit everything what the client wants Clients are not price sensitive Decrease delivery time Move production closer to the clients Ratio’s in the business plan Industry bench marks – pricing, focus on attracting customers Social media – facebook, twitter, Instagram, Linkedin Not to general

40 | P a g e

Dear Piratheep,

Please see my notes below in red.

Kind regards

Yury

Dear Yury

Appendix 2: Further notes from client later in the project

Please see the list of questions from New Innovation students (Business Plan Project).

The outcome is business plan for the period of up to 3 years, with the focus on:

SWOT analysis

market analysis - probably requires cooperation with other groups to leverage their

findings

marketing plan - probably requires cooperation with other groups to leverage their

findings

financial plan - P&L, BS, cash flow.

Who are your current suppliers and where are they located? The main supplier is a wood

material supplier - location doesn't matter as long as quality and price combination is optimal.

Traditionally we buy from Northern and Eastern Europe. Depending on customer needs we

also work with other suppliers, for example, providers of bathroom goods and kitchen appliances or various small workshops to get certain design features. If you

are after the delivery costs - refer to the delivery cost I provided per each of the 3 product

segments highlighted during the meeting.

How much do you pay your suppliers? Very general question as you have to specify what

kind of product, amount etc. In order not to over complicate, please refer to the average

production cost per product type/segment I have provided during the meeting (average

kitchen, door and free-standing/integrated furniture) . You could assume that production

cost is 70% material cost plus 30% labor. What is the type of wood that you use for your products? any type customer wants, most

popular is pine, oak, birch, cherry.

41 | P a g e

What is your current quotation fee for the following services that you provide? not sure what

exactly is meant by services below, is it service of making a design or production of

furniture, if production, what type of furniture and corresponding amount/volume? During

the meeting I recommended to think of the following 3 segments (rather than going into

much details): interior/exterior doors, kitchen, average element of free-standing or integrated

furniture. We also mentioned that "As seen on TV" product is something where the group is

free to use some imagination and come up with their own vision. The quotation fee should be

a sum of total cost and on top margin, where total cost at least includes production, delivery,

legal and insurance cost and margin is a % of a total cost. The group should think of what is

the most reasonable margin %, so that the business is profitable and at the same time

competitive on the market.

Reception rooms

High-street shops

Banks and HQ offices

Wine cellars Pubs & restaurants

Clubs and chill out areas

Beauty and spa salons

Snooker and game rooms

Staircases and hallways What is the monthly salary rate for all employees within the organisation? The labor cost

is already incorporated in the production cost as per the above note. WIS doesn't hold any

permanent workers, everything is on a contractual basis.

Kind regards

Caroline

42 | P a g e

Appendix 3

Company 10

New Innovation Team meetings and minutes

Week 1

Date: 23/02/2016 Time and Place: 13:30 at Drill Hall Library Duration: 13:35 to 17:35

Present: Piratheep, Callum, Jemma, Lorne, Ryan, Henry Absent: Dominic

What Happened?

- Piratheep, Dominic, Callum and Jemma had scheduled and attended the first meeting between the client and supervisor. In this meeting we had discussed about what the client expects us to include in the business plan. All answers we had questioned the client had been written in a separate word document, which would then take back to the rest of the team for further discussion and allocation of roles.

- Piratheep, Callum and Jemma had shared to the rest of the team as to what the client wants

- Most members were present in the library for allocation of tasks and preparing and planning basic research and financial findings for the business plan.

Week 2 Date: 01/03/2016 Time and Place: 14:00 at Drill Hall Library

Duration: 11:00 to 15:30

Present: Piratheep, Callum, Dominic, Jemma, Lorne, Ryan, Absent: Henry

What Happened?

- Each member of the group began work on their allocated tasks.

- Callum, Dominic, Henry and Lorne started to carry out market research for different products/services offered by Wood Interior Solutions.

- Piratheep, Jemma and Ryan began to put together the weekly budget and other financial documents

- Each member of the group identified information missing in preparation for a meeting with their supervisor the next week.

Week 3

Date: 11/03/2016 Time and Place: 14:00 at Pembroke Duration: 11:00 to 16.00

Present: Piratheep, Callum, Dominic, Jemma, Lorne, Ryan, Absent: Henry

43 | P a g e

What Happened?

- We had a meeting with our mentor, Piratheep, Callum, Dominic, Lorne and Ryan were present we discussed the current situation of the Business Development Plan and how we’re going to proceed with it.

- Any problems which we may have we put forward and they were discussed.

- Through the discussion an email was put together which will be sent to Wood Interior Solutions with further questions about the project.

Week 4

Date: 17/03/2016 Time and Place: 12:00 at Drill Hall Library Duration: 12:00 to 17.00

Present: Piratheep, Callum, Dominic, Henry, Lorne, Absent: Jemma Ryan,

What Happened?

- As a group we reviewed the reply that Wood Interior Solutions had supplied to us concerning a few issues about the project.

- Collectively, from this we had all the information necessary to begin our business plan.

- We then assigned everyone roles for the business plan in which they would undertake during the Easter holiday.

Week 5


Present: Piratheep, Callum, Dominic, Henry, Lorne, Absent: Ryan Jemma

What Happened?

- Talked about the last areas that needed to be finished; balance sheet, collating work into the main report. To be finished by next meeting

- Having an extra meeting this week to collate all sections - Talked about beginning to script the group presentation later this week for the presentation next week.

- Together worked on some of the sections that needed finishing to give a consistent layout to the

business plan.

44 | P a g e

Week 6 Date: 05/04/16 Time and Place: 12.00 at Drill Hall

Library Duration: 12:00 to 17:00

Present: Piratheep, Callum, Dominic, Henry, Absent: Jemma Lorne, Ryan

What Happened?

For extra information regarding the business plan an email was sent out to WIS. The reply email contained answers to the questions of the materials they buy the suppliers they use and the cost of labour.

From this reply the meeting was spent on incorporating this into the business plan to fill in sections that were lacking and finding further information online that could be used as recommendations at the end of the presentations.

45 | P a g e

Week 7


Present: Piratheep, Callum, Dominic, Henry, Lorne, Absent: Jemma, Ryan

What Happened?

- Finalised the Presentation

- Spoke with Caroline on the Phone, added to the presentation.

- Completed the script and rehearsed our lines.

- Performed our presentation

Week 8


Present: Piratheep, Callum, Dominic, Henry, Lorne, Absent: Jemma, Ryan

What Happened?

- Went over what was good about the presentation and had made early preparations for what we need to include in the report

- Piratheep, Ryan, Jemma had finalised all financial data needed for the report and the

business plan

- Callum, Henry, Lorne, Dominic had finalised all marketing data needed for the report and the business

46 | P a g e

Week 9


Present: Piratheep, Callum, Dominic, Henry, Absent: Lorne, Jemma, Ryan

What Happened?

- After staging our presentation and receiving a grade for the work, we conducted a brief review of the performance.

- We began discussing how to finalise the report, and delegating the necessary tasks among

the group.

- We started to evaluate the report so far and identify any areas that needed updating/modifying.

- Finished all preparations for report and business plan

Week 10


Present: Piratheep, Callum, Dominic, Henry, Absent: Lorne, Jemma, Ryan

What Happened?

- Finished all preparations for report and business plan

47 | P a g e

Cashflow Forecast 2016-2017 Wood Interior Solutions

01-Apr 01-May 01-Jun 01-Jul 01-Aug 01-Sep 01-Oct 01-Nov 01-Dec 01-Jan 01-Feb 01-Mar

Funds Capital £80,000.00 Bank loan £20,000.00

Opening Balalnce £100,000.00 £13,028.33 £6,416.67 -£5,180.00 -£7,991.67 -£4,873.33 -£12,855.00 -£22,016.67 -£478.33 £4,305.00 £7,778.33 -£4,193.33

Income Kitchens

Small (£5400 per kitchen) £5,400.00 £10,800.00 £5,400.00 £5,400.00 £5,400.00

Medium (£8500 per kitchen) £8,500.00 £8,500.00

Large (£12000 per kitchen) £12,000.00 £12,000.00

Doors

Internal (£45 per door) £180.00 £180.00 £90.00 £45.00 £180.00 £90.00 £180.00 £180.00 £45.00 £135.00 £225.00

External (£130 per door) £130.00 £130.00 £130.00 £260.00 £130.00 £260.00 £260.00 £390.00 £390.00 £390.00 £520.00

Beds

Single (£175 per bed) £175.00 £175.00 £175.00 £350.00 £525.00 £175.00 £175.00 £350.00 £175.00 £525.00 £700.00

Double (£250 per bed) £250.00 £250.00 £250.00 £500.00 £500.00 £250.00 £500.00 £500.00 £500.00

King Size (£400 per bed) £400.00 £800.00 £400.00 £800.00 £400.00 £800.00 £400.00 £400.00

Bedstead Assembley (£30 per bed) £30.00 £60.00 £60.00 £60.00 £60.00 £60.00 £90.00 £90.00 £90.00 £90.00 £60.00 £90.00

Dining Tables with Chairs

4 seat (£470 per set) £470.00 £470.00 £940.00 £940.00

6 seat (£750 per set) £750.00 £750.00 £1,500.00 £1,500.00 £750.00 £750.00

8 seat (£920 per set) £920.00 £1,840.00 £1,840.00

Bathrooms

Small (£3500 per room) £3,500.00

Medium (£9600 per room) £9,600.00 £9,600.00

Large (£15000 per room) £15,000.00

Wardrobes

2 door with 2 drawers (£250 per wardrobe) £250.00 £250.00 £500.00 £250.00 £250.00 £500.00 £750.00


4 door with 4 drawers (£650 per wardrobe) £650.00 £1,300.00

Chests of drawers

3 drawers (£150 per set) £150.00 £150.00 £300.00 £150.00 £150.00 £150.00 £150.00 £150.00

4 drawers (£220 per set) £220.00 £220.00 £440.00

5 drawers (£300 per set) £300.00 £300.00 £300.00 £600.00

6 drawers (£350 per set) £700.00 £350.00 £700.00

Decoration

Pubs & Restaurants (Price quotation) £45,000.00

High Street Shops (Price quotation)

Wine cellars (Price quotation) £9,000.00 £9,000.00

Banks and HQ offices (Price quotation)

Snooker/Game Area (Price quotation) £3,000.00 £4,500.00

Clubs (Price quotation) £20,000.00

Houses/Apartments

Small (£160 per room) £480.00 £320.00 £160.00 £800.00 £320.00 £160.00

Medium (£240 per room) £240.00 £480.00 £720.00 £480.00 £720.00

Large (£350 per room) £350.00 £1,400.00 £700.00 £350.00

Staircase and Hallways (Price quotation) £2,000.00 £2,500.00 £3,500.00 £2,000.00

Nursery Cots

Medium (£130 per cot) £260.00 £260.00 £130.00 £260.00 £130.00 £260.00 £130.00

Large (£200 per cot) £200.00 £400.00 £200.00 £400.00 £200.00 £200.00

Cabinets

300mm Wall Cabinet (£130 per Cabinet) £130.00 £130.00 £130.00 £130.00 £130.00 £260.00 £260.00 £390.00 £520.00 £390.00 £520.00


600mm Wall Cabinet (£180 per Cabinet) £180.00 £360.00 £180.00 £180.00 £360.00 £360.00 £360.00 £540.00 £540.00 £540.00 £720.00 £900.00

Storage Trunks (£55 to £70 per trunk) £120.00 £160.00 £180.00 £200.00 £180.00 £160.00 £200.00 £220.00 £240.00 £225.00 £230.00

Chairs (£60 to £300 per chair) £60.00 £240.00 £240.00 £480.00 £480.00 £480.00 £720.00 £720.00 £960.00 £720.00 £960.00 £1,020.00

Display Stands (£200 to £500 per cabinet) £500.00 £200.00 £500.00 £800.00 £750.00 £1,100.00 £450.00 £600.00

Total Income

£1,275.00 £11,535.00 £3,900.00 £24,485.00 £52,915.00 £27,015.00 £7,285.00 £44,085.00 £28,030.00 £31,170.00 £9,775.00 £50,705.00

Expenditure Purchase of Capital Assets (NCA) £35,000.00

Suppliers (Purchases) £40,000.00 £2,000.00 £1,400.00 £11,000.00 £35,000.00 £17,000.00 £1,700.00 £4,000.00 £6,000.00 £7,000.00 £5,000.00 £20,000.00

Salaries and Wages £5,000.00 £5,000.00 £5,000.00 £5,000.00 £5,000.00 £5,000.00 £5,000.00 £5,000.00 £7,000.00 £7,000.00 £7,000.00 £7,000.00

Exhibition/Rented Halls £200.00 £0.00 £0.00 £200.00 £0.00 £0.00 £200.00 £0.00 £0.00 £200.00 £0.00 £200.00

Bank loan Repayments (inc Interest) £1,666.67 £1,666.67 £1,666.67 £1,666.67 £1,666.67 £1,666.67 £1,666.67 £1,666.67 £1,666.67 £1,666.67 £1,666.67 £1,666.67

Storage Expenses £1,000.00 £1,000.00 £900.00 £900.00 £900.00 £800.00 £800.00 £800.00 £800.00 £500.00 £500.00 £500.00

Rent (one month arreas) £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00

Repairs and Mantainence £100.00 £300.00 £300.00 £300.00 £1,000.00 £300.00 £300.00 £300.00 £1,000.00 £500.00 £500.00 £1,500.00

Marketing (5k Annually) £1,000.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00

Accounting £500.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00

Utilities Expense £180.00 £180.00 £180.00 £180.00 £180.00 £180.00 £180.00 £180.00 £180.00 £180.00 £180.00 £180.00

Sub-contract labour (one month accrued) £3,000.00 £1,000.00 £3,000.00 £1,000.00 £5,000.00 £1,500.00 £5,500.00 £1,500.00 £5,500.00 £1,750.00 £7,000.00

Travel Expenses £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £1,000.00

Other Costs £100.00 £100.00 £150.00 £150.00 £150.00 £150.00 £200.00 £200.00 £200.00 £250.00 £250.00 £250.00

Total Expenditure

£88,246.67 £18,146.67 £15,496.67 £27,296.67 £49,796.67 £34,996.67 £16,446.67 £22,546.67 £23,246.67 £27,696.67 £21,746.67 £43,496.67

Net Cash Flow

-£86,971.67 -£6,611.67 -£11,596.67 -£2,811.67 £3,118.33 -£7,981.67 -£9,161.67 £21,538.33 £4,783.33 £3,473.33 -£11,971.67 £7,208.33

Closing Balance

£13,028.33 £6,416.67 -£5,180.00 -£7,991.67 -£4,873.33 -£12,855.00 -£22,016.67 -£478.33 £4,305.00 £7,778.33 -£4,193.33 £3,015.00




Cash Inflow/Outflow from last yr. £3,015.00

Opening Balalnce £28,015.00 £14,408.33 £19,196.67 £25,665.00 £38,208.33 £33,621.67 £33,920.00 £33,418.33 £36,641.67 £42,080.00 £50,828.33 £52,211.67

Income Kitchens

Small (£5400 per kitchen) £10,800.00 £5,400.00 £5,400.00


Large (£12000 per kitchen) £12,000.00 £24,000.00 £12,000.00

Doors

Internal (£45 per door) £270.00 £135.00 £90.00 £45.00 £360.00 £315.00 £360.00 £450.00 £225.00 £225.00 £315.00 £135.00

External (£130 per door) £1,300.00 £780.00 £780.00 £780.00 £520.00 £910.00 £1,040.00 £1,950.00 £130.00 £260.00 £390.00 £1,040.00

Beds

Single (£175 per bed) £350.00 £350.00 £525.00 £875.00 £700.00 £1,050.00 £175.00 £1,050.00 £1,050.00 £700.00 £525.00 £875.00

Double (£250 per bed) £250.00 £750.00 £750.00 £1,250.00 £500.00 £250.00 £750.00 £1,000.00 £750.00 £500.00 £250.00 £1,000.00

King Size (£400 per bed) £400.00 £1,200.00 £800.00 £400.00 £2,000.00 £400.00 £800.00 £1,200.00 £800.00 £400.00 £1,600.00 £800.00



4 seat (£470 per set) £940.00 £470.00 £1,410.00 £470.00 £470.00 £1,880.00 £1,410.00

6 seat (£750 per set) £2,250.00 £1,500.00 £750.00 £750.00 £2,250.00 £2,250.00

8 seat (£920 per set) £920.00 £2,760.00 £1,840.00 £2,760.00 £920.00 £1,840.00 £1,840.00 £1,840.00 £920.00

Bathrooms

Small (£3500 per room) £3,500.00 £7,000.00

Medium (£9600 per room) £28,800.00 £9,600.00

Large (£15000 per room) £30,000.00 £15,000.00

Wardrobes

2 door with 2 drawers (£250 per wardrobe) £500.00 £750.00 £1,000.00 £1,500.00 £1,250.00 £750.00 £1,000.00 £500.00 £750.00 £1,000.00 £1,000.00 £250.00

3 door with 4 drawers (£400 per wardrobe) £800.00 £1,200.00 £400.00 £2,000.00 £1,200.00 £1,200.00 £1,600.00 £800.00 £2,000.00 £800.00 £2,000.00 £1,600.00

4 door with 4 drawers (£650 per wardrobe) £1,950.00 £1,300.00 £1,300.00 £3,250.00 £1,950.00 £1,950.00 £1,300.00 £2,600.00 £1,300.00 £2,600.00 £1,950.00 £3,250.00

Chests of drawers

3 drawers (£150 per set) £900.00 £600.00 £450.00 £300.00 £300.00 £750.00 £1,350.00 £600.00 £900.00 £750.00 £300.00 £600.00

4 drawers (£220 per set) £1,100.00 £440.00 £1,540.00 £880.00 £660.00 £1,100.00 £1,760.00 £880.00 £660.00 £660.00 £1,320.00 £1,100.00

5 drawers (£300 per set) £600.00 £1,200.00 £1,500.00 £2,400.00 £1,800.00 £1,200.00 £2,100.00 £600.00 £900.00 £1,500.00 £600.00 £300.00

6 drawers (£350 per set) £1,400.00 £1,050.00 £1,050.00 £700.00 £1,750.00 £1,400.00 £2,450.00 £1,050.00 £1,050.00 £2,100.00 £1,400.00 £700.00

Decoration


High Street Shops (Price quotation) £50,000.00





Houses/Apartments

Small (£160 per room) £320.00 £320.00 £640.00 £480.00 £320.00 £800.00 £480.00 £640.00 £480.00

Medium (£240 per room) £960.00 £1,440.00 £480.00 £480.00 £1,440.00 £1,200.00 £1,440.00 £1,440.00

Large (£350 per room) £350.00 £1,280.00 £960.00 £1,280.00


Nursery Cots

Medium (£130 per cot) £650.00 £520.00 £780.00 £390.00 £260.00 £650.00 £520.00 £260.00 £650.00

Large (£200 per cot) £600.00 £600.00 £600.00 £600.00 £600.00 £200.00 £600.00 £600.00 £600.00

Cabinets

300mm Wall Cabinet (£130 per Cabinet) £650.00 £390.00 £520.00 £520.00 £260.00 £390.00 £520.00 £780.00 £650.00 £260.00 £520.00 £1,040.00

400mm Wall Cabinet (£150 per Cabinet) £600.00 £450.00 £750.00 £300.00 £450.00 £750.00 £1,050.00 £900.00 £900.00 £300.00 £750.00 £300.00

600mm Wall Cabinet (£180 per Cabinet) £540.00 £540.00 £720.00 £900.00 £360.00 £720.00 £360.00 £900.00 £900.00 £1,080.00 £720.00 £540.00

Storage Trunks (£55 to £70 per trunk) £250.00 £100.00 £270.00 £320.00 £400.00 £360.00 £240.00 £200.00 £170.00 £230.00 £190.00 £300.00

Chairs (£60 to £300 per chair) £200.00 £500.00 £250.00 £700.00 £650.00 £400.00 £800.00 £1,500.00 £1,200.00 £950.00 £500.00 £500.00

Display Stands (£200 to £500 per cabinet) £850.00 £1,100.00 £600.00 £1,250.00 £1,600.00 £900.00 £700.00 £1,050.00 £1,050.00 £970.00 £200.00 £550.00

Total Income

£36,160.00 £23,755.00 £39,935.00 £80,310.00 £19,830.00 £23,015.00 £126,335.00 £52,260.00 £81,825.00 £57,735.00 £37,270.00 £48,840.00

Expenditure Suppliers (Purchases) £30,000.00 £4,000.00 £17,000.00 £50,000.00 £7,000.00 £6,000.00 £100,000.00 £30,000.00 £55,000.00 £30,000.00 £15,000.00 £20,000.00



Bank loan £416.67 £416.67 £416.67 £416.67 £416.67 £416.67 £416.67 £416.67 £416.67 £416.67 £416.67 £416.67


Rent £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00


Marketing (5k Annually) £500.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00

Accounting (10 months prepaid from Mar) £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00


Sub-contract labour £5,000.00 £500.00 £1,750.00 £3,000.00 £700.00 £600.00 £9,500.00 £2,500.00 £4,500.00 £2,500.00 £1,500.00 £2,000.00

Travel Expenses £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £100.00

Other Costs £900.00 £500.00 £650.00 £900.00 £150.00 £150.00 £1,500.00 £700.00 £350.00 £550.00 £450.00 £600.00

Total Expenditure

£49,766.67 £18,966.67 £33,466.67 £67,766.67 £24,416.67 £22,716.67 £126,836.67 £49,036.67 £76,386.67 £48,986.67 £35,886.67 £41,736.67

Net Cash Flow

-£13,606.67 £4,788.33 £6,468.33 £12,543.33 -£4,586.67 £298.33 -£501.67 £3,223.33 £5,438.33 £8,748.33 £1,383.33 £7,103.33

Closing Balance

£14,408.33 £19,196.67 £25,665.00 £38,208.33 £33,621.67 £33,920.00 £33,418.33 £36,641.67 £42,080.00 £50,828.33 £52,211.67 £59,315.00



Funds Capital £40,000.00 Bank loan -



Income Kitchens

Small (£5400 per kitchen) £16,200.00 £10,800.00



Doors


External (£130 per door) £780.00 £780.00 £780.00 £1,040.00 £1,300.00 £1,950.00 £1,170.00 £1,560.00 £910.00 £650.00 £1,040.00 £520.00

Beds

Single (£175 per bed) £525.00 £350.00 £700.00 £875.00 £1,225.00 £1,225.00 £1,050.00 £700.00 £875.00 £525.00 £525.00 £1,050.00

Double (£250 per bed) £1,000.00 £750.00 £1,250.00 £1,250.00 £750.00 £500.00 £1,000.00 £1,750.00 £500.00 £500.00 £1,000.00 £1,250.00

King Size (£400 per bed) £800.00 £1,200.00 £1,200.00 £2,000.00 £1,600.00 £1,200.00 £2,000.00 £1,200.00 £800.00 £1,200.00 £800.00 £1,200.00



4 seat (£470 per set) £1,410.00 £1,410.00 £1,410.00 £470.00 £1,880.00 £940.00 £940.00

6 seat (£750 per set) £2,250.00 £1,500.00 £3,000.00 £1,500.00 £1,500.00 £1,500.00 £2,250.00 £2,250.00

8 seat (£920 per set) £3,680.00 £2,760.00 £1,840.00 £1,840.00 £2,760.00 £1,840.00 £920.00 £1,840.00 £1,840.00 £2,760.00

Bathrooms

Small (£3500 per room) £3,500.00 £7,000.00 £3,500.00

Medium (£9600 per room) £19,200.00 £9,600.00 £9,600.00

Large (£15000 per room) £30,000.00 £45,000.00 £15,000.00

Wardrobes




Chests of drawers

3 drawers (£150 per set) £900.00 £600.00 £450.00 £300.00 £300.00 £750.00 £1,350.00 £600.00 £900.00 £750.00 £300.00 £600.00

4 drawers (£220 per set) £1,100.00 £440.00 £1,540.00 £880.00 £660.00 £1,100.00 £1,760.00 £880.00 £660.00 £660.00 £1,320.00 £1,100.00

5 drawers (£300 per set) £600.00 £1,200.00 £1,500.00 £2,400.00 £1,800.00 £1,200.00 £2,100.00 £600.00 £900.00 £1,500.00 £600.00 £300.00

6 drawers (£350 per set) £1,400.00 £1,050.00 £1,050.00 £700.00 £1,750.00 £1,400.00 £2,450.00 £1,050.00 £1,050.00 £2,100.00 £1,400.00 £700.00

Decoration

Pubs & Restaurants (Price quotation) £45,000.00 £45,000.00 £60,000.00

High Street Shops (Price quotation) £40,000.00 £40,000.00




Clubs (Price quotation) £10,000.00 £25,000.00

Houses/Apartments

Small (£160 per room) £640.00 £480.00 £800.00 £160.00 £480.00 £480.00 £320.00 £800.00 £480.00 £640.00 £480.00

Medium (£240 per room) £1,200.00 £480.00 £960.00 £1,200.00 £720.00 £1,440.00 £1,200.00 £1,440.00 £720.00

Large (£350 per room) £700.00 £1,400.00 £1,280.00 £960.00 £1,280.00 £1,280.00 £1,280.00 £1,280.00 £1,280.00 £1,280.00


Nursery Cots

Medium (£130 per cot) £910.00 £390.00 £520.00 £780.00 £1,170.00 £910.00 £780.00 £390.00 £520.00 £650.00

Large (£200 per cot) £600.00 £1,200.00 £800.00 £800.00 £200.00 £1,000.00 £400.00 £600.00 £800.00

Cabinets

300mm Wall Cabinet (£130 per Cabinet) £910.00 £520.00 £780.00 £520.00 £390.00 £650.00 £520.00 £910.00 £1,040.00 £520.00 £780.00 £390.00

400mm Wall Cabinet (£150 per Cabinet) £900.00 £450.00 £450.00 £750.00 £450.00 £1,050.00 £750.00 £600.00 £300.00 £600.00 £750.00 £600.00

600mm Wall Cabinet (£180 per Cabinet) £900.00 £360.00 £540.00 £900.00 £1,260.00 £900.00 £720.00 £1,080.00 £900.00 £1,080.00 £720.00 £360.00


Chairs (£60 to £300 per chair) £500.00 £730.00 £840.00 £970.00 £1,200.00 £550.00 £660.00 £970.00 £400.00 £950.00 £500.00 £330.00

Display Stands (£200 to £500 per cabinet) £700.00 £950.00 £1,270.00 £1,500.00 £1,390.00 £1,110.00 £920.00 £1,050.00 £970.00 £200.00 £200.00 £550.00

Total Income

£52,845.00 £57,905.00 £52,980.00 £92,270.00 £126,320.00 £89,455.00 £39,470.00 £87,730.00 £105,245.00 £42,555.00 £75,270.00 £41,105.00




Bank loan - - - - - - - - - - - -


Rent £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00

Repairs and Mantainence £1,100.00 £1,100.00 £300.00 £1,100.00 £2,000.00 £300.00 £1,000.00 £1,000.00 £1,000.00 £500.00 £500.00 £1,500.00

Marketing (1 month arreas) £400.00 £250.00 £250.00 £250.00 £250.00 £250.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00

Accounting £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00


Sub-contract labour (1 month accrued) £3,000.00 £2,500.00 £1,750.00 £3,000.00 £3,000.00 £5,500.00 £1,500.00 £7,500.00 £10,500.00 £2,500.00 £3,000.00 £2,000.00

Travel Expenses £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £100.00

Other Costs £900.00 £500.00 £650.00 £900.00 £150.00 £150.00 £1,500.00 £700.00 £350.00 £550.00 £450.00 £600.00

Total Expenditure

£55,420.00 £63,570.00 £56,870.00 £87,300.00 £106,450.00 £79,150.00 £42,450.00 £81,450.00 £90,100.00 £43,700.00 £69,900.00 £48,650.00

Net Cash Flow

-£2,575.00 -£5,665.00 -£3,890.00 £4,970.00 £19,870.00 £10,305.00 -£2,980.00 £6,280.00 £15,145.00 -£1,145.00 £5,370.00 -£7,545.00

Closing Balance

£93,725.00 £88,060.00 £84,170.00 £89,140.00 £109,010.00 £119,315.00 £116,335.00 £122,615.00 £137,760.00 £136,615.00 £141,985.00 £134,440.00

PROFIT AND LOSS

INCOME

Q1

Q1 as % of Q2

Q2 as % of Q3

Q3 as % of Q4

Q4 as % of Year

Year as % of

Sales

Sales Sales

Sales

Sales

Sales Revenue

Sales 16,710.00 100.0% 104,410.00 624.8% 79,400.00 475.2% 91,650.00 548.5% 292,170.00 100.0%

Total Sales Revenue 16,710.00 100.0% 104,410.00 624.8% 79,400.00 475.2% 91,650.00 548.5% 292,170.00 100.0%

Cost of Sales

Suppliers 43,400.00 259.7% 63,000.00 377.0% 11,700.00 70.0% 32,000.00 191.5% 150,100.00 51.4%

Travel 1,400.00 8.4% 2,100.00 12.6% 2,100.00 12.6% 2,100.00 12.6% 7,700.00

Contractor Cost 4,000.00 23.9% 9,000.00 53.9% 8,500.00 50.9% 14,250.00 85.3% 35,750.00

Total Cost of Sales 48,800.00 292.04% 74,100.00 443.45% 22,300.00 133.45% 48,350.00 289.35% 193,550.00 66.2%

Gross Profit - 32,090.00 -192.0% 30,310.00 181.4% 57,100.00 341.7% 43,300.00 259.1% 98,620.00 33.8%

TOTAL INCOME - 32,090.00 -192.0% 30,310.00 181.4% 57,100.00 341.7% 43,300.00 259.1% 98,620.00 33.8%

EXPENSES

Operating Expenses

Marketing and Advertising

Advertising 900.00 5.4% 600.00 3.6% 600.00 3.6% 600.00 3.6% 2,700.00 0.9%

Direct marketing 900.00 5.4% 600.00 3.6% 600.00 3.6% 600.00 3.6% 2,700.00 0.9%

Total Marketing and Advertising Expenses 1,800.00 10.8% 1,200.00 7.2% 1,200.00 7.2% 1,200.00 7.2% 5,400.00 1.8%

-

Administrative -

Wages and salaries 15,000.00 89.8% 15,000.00 89.8% 17,000.00 101.7% 21,000.00 125.7% 68,000.00 23.3%

Outside services (Accounting) 1,100.00 6.6% 900.00 5.4% 900.00 5.4% 900.00 5.4% 3,800.00 1.3%

Storage Expenses 2,900.00 17.4% 2,600.00 15.6% 2,400.00 14.4% 1,500.00 9.0% 9,400.00 3.2%

Rent 10,500.00 62.8% 10,500.00 62.8% 10,500.00 62.8% 10,500.00 62.8% 42,000.00 14.4%

Utilities 540.00 3.2% 540.00 3.2% 540.00 3.2% 540.00 3.2% 2,160.00 0.7%

Insurance - - - - - -

Repairs and maintenance 700.00 4.2% 1,600.00 9.6% 1,600.00 9.6% 2,500.00 15.0% 6,400.00 2.2%

Bank Loan 5,000.00 29.9% 5,000.00 29.9% 5,000.00 29.9% 5,000.00 29.9% 20,000.00 6.8%

Other expenses 550.00 3.3% 650.00 3.9% 800.00 4.8% 950.00 5.7% 2,950.00 1.0%

Total General and Adminstrative Expenses 36,290.00 217.2% 36,790.00 220.2% 38,740.00 231.8% 42,890.00 256.7% 154,710.00 53.0%

Total Operating Expenses 38,090.00 227.95% 37,990.00 227.35% 39,940.00 239.02% 44,090.00 263.85% 160,110.00 54.80%

TOTAL EXPENSES 38,090.00 2.28 37,990.00 2.27 39,940.00 2.39 44,090.00 2.64 160,110.00 0.55

TAXES

Income taxes - - - - -

Payroll taxes - - - - -

Real estate taxes - - - - -

Other taxes (specify) - - - - -

TOTAL TAXES - - - - - - - - - -

NET INCOME - 70,180.00 - 7,680.00 17,160.00 - 790.00 - 61,490.00

SHARE DISTRIBUTIONS / DIVIDENDS

Owner Dividends - - - - -

Shareholder Dividends - - - - -

TOTAL SHARE DISTRIBUTIONS / DIVIDENDS - - - - - - - - - -

NET PROFIT - 70,180.00 -420.0% - 7,680.00 -46.0% 17,160.00 102.7% - 790.00 -4.7% - 61,490.00 -21.0%

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PROFIT AND LOSS

INCOME

Q1

Q1 as % of Q2

Q2 as % of Q3

Q3 as % of Q4

Q4 as % of Year

Year as % of

Sales Sales Sales Sales Sales

Sales Revenue

Sales 99,850.00 100.0% 123,155.00 123.3% 260,420.00 260.8% 143,845.00 144.1% 627,270.00 100.0%


Cost of Sales

Suppliers 51,000.00 51.1% 63,000.00 63.1% 185,000.00 185.3% 65,000.00 65.1% 364,000.00 58.0%

Travel 2,100.00 2.1% 2,100.00 2.1% 2,100.00 2.1% 1,500.00 1.5% 7,800.00

Contractor Cost 7,250.00 7.3% 4,300.00 4.3% 16,500.00 16.5% 6,000.00 6.0% 34,050.00


Gross Profit 39,500.00 39.6% 53,755.00 53.8% 56,820.00 56.9% 71,345.00 71.5% 221,420.00 35.3%

TOTAL INCOME 39,500.00 39.6% 53,755.00 53.8% 56,820.00 56.9% 71,345.00 71.5% 221,420.00 35.3%

EXPENSES

Operating Expenses


Advertising 500.00 0.5% 500.00 0.5% 500.00 0.5% 500.00 0.5% 2,000.00 0.3%



-

Administrative -


Outside services (Accounting) 900.00 0.9% 900.00 0.9% 900.00 0.9% 900.00 0.9% 3,600.00 0.6%


Rent 10,500.00 10.5% 10,500.00 10.5% 10,500.00 10.5% 10,500.00 10.5% 42,000.00 6.7%

Utilities 1,050.00 1.1% 1,050.00 1.1% 1,260.00 1.3% 1,260.00 1.3% 4,620.00 0.7%



Bank Loan 1,250.00 1.3% 1,250.00 1.3% 1,250.00 1.3% 1,250.00 1.3% 5,000.00 0.8%

Other expenses 2,250.00 2.3% 1,400.00 1.4% 2,550.00 2.6% 2,000.00 2.0% 8,200.00 1.3%



TOTAL EXPENSES 41,850.00 0.42 45,500.00 0.46 48,660.00 0.49 54,110.00 0.54 190,120.00 0.30

TAXES





TOTAL TAXES - - - - - - - - - -

NET INCOME - 2,350.00 8,255.00 8,160.00 17,235.00 31,300.00





NET PROFIT - 2,350.00 -2.4% 8,255.00 8.3% 8,160.00 8.2% 17,235.00 17.3% 31,300.00 5.0%

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PROFIT AND LOSS

INCOME

Q1

Q1 as % of Q2

Q2 as % of Q3

Q3 as % of Q4

Q4 as % of Year

Year as % of

Sales Sales Sales

Sales Sales

Sales Revenue

Sales 163,730.00 100.0% 308,045.00 188.1% 232,445.00 142.0% 158,930.00 97.1% 863,150.00 100.0%


Cost of Sales

Suppliers 109,000.00 66.6% 202,000.00 123.4% 134,000.00 81.8% 94,000.00 57.4% 539,000.00 62.4%

Travel 2,100.00 1.3% 2,100.00 1.3% 2,100.00 1.3% 1,500.00 0.9% 7,800.00

Contractor Cost 7,250.00 4.4% 11,500.00 7.0% 19,500.00 11.9% 7,500.00 4.6% 45,750.00


Gross Profit 45,380.00 27.7% 92,445.00 56.5% 76,845.00 46.9% 55,930.00 34.2% 270,600.00 31.4%

TOTAL INCOME 45,380.00 27.7% 92,445.00 56.5% 76,845.00 46.9% 55,930.00 34.2% 270,600.00 31.4%

EXPENSES

Operating Expenses


Advertising 300.00 0.2% 250.00 0.2% 300.00 0.2% 300.00 0.2% 1,150.00 0.1%


Total Marketing and Advertising Expenses 900.00 0.5% 750.00 0.5% 900.00 0.5% 1,200.00 0.7% 3,750.00 0.4%

-

Administrative -


Outside services (Accounting) 1,200.00 0.7% 1,200.00 0.7% 1,200.00 0.7% 1,200.00 0.7% 4,800.00 0.6%


Rent 10,500.00 6.4% 10,500.00 6.4% 10,500.00 6.4% 10,500.00 6.4% 42,000.00 4.9%

Utilities 1,260.00 0.8% 1,650.00 1.0% 1,650.00 1.0% 1,650.00 1.0% 6,210.00 0.7%


Repairs and maintenance 2,500.00 1.5% 3,400.00 2.1% 3,000.00 1.8% 2,500.00 1.5% 11,400.00 1.3%

Bank Loan - - - - - - - - - -

Other expenses 2,250.00 1.4% 1,400.00 0.9% 2,750.00 1.7% 1,800.00 1.1% 8,200.00 1.0%



TOTAL EXPENSES 57,510.00 0.35 57,500.00 0.35 58,400.00 0.36 59,350.00 0.36 232,760.00 0.27

TAXES





TOTAL TAXES - - - - - - - - - -

NET INCOME - 12,130.00 34,945.00 18,445.00 - 3,420.00 37,840.00





NET PROFIT - 12,130.00 -7.4% 34,945.00 21.3% 18,445.00 11.3% - 3,420.00 -2.1% 37,840.00 4.4%

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Wood interior Solutions Balance Sheet

As ended 31 Dec 2017

Assets

Fixed Assets:

Vehicles 0

Less: Accumulated Depreciation 0 0

Furniture and Fixtures 0 Less: Accumulated Depreciation 0 0

Equipment 0 Less: Accumulated Depreciation 0 0

Buildings 35,000 Less: Accumulated Depreciation 0 35,000

Land 0 Total Fixed Assets 35,000

Other Assets: Goodwill 0

Total Other Assets 0

Current Assets: Cash £ 3,015.00

Accounts Receivable £ 7,745.00

Less: Reserve for Bad Debts 0 7,745

Merchandise Inventory 20,000

Prepaid Expenses 38500

Notes Receivable

Total Current Assets £ 69,260.00

Total Assets £ 104,260.00

Liabilities and Capital

Current Liabilities: Accounts Payable £ 20,000.00

Sales Taxes Payable 0

Payroll Taxes Payable

Accrued Wages Payable 35,750

Unearned Revenues 10,000

Short-Term Notes Payable 0

Short-Term Bank Loan Payable 20,000

Total Current Liabilities £ 85,750.00

Long-Term Liabilities: Long-Term Notes Payable 0

Mortgage Payable 0

Total Long-Term Liabilities 0

Total Liabilities 85,750

Capital: Owner's Equity 80,000

Net Profit -61,490

Total Capital 18,510

Total Liabilities and Capital $104,260

Page 1

Wood interior Solutions

Balance Sheet As ended 31 Dec 2018

Assets

Fixed Assets:

Vehicles 0








Current Assets: Cash £ 59,315

Accounts Receivable £ -

Less: Reserve for Bad Debts 0 0 Merchandise Inventory 0

Prepaid Expenses 0

Notes Receivable 0 Total Current Assets £ 59,315.00


ties and Capital



Payroll Taxes Payable 0

Accrued Wages Payable 0

Unearned Revenues 0

Short-Term Notes Payable 10,000

Short-Term Bank Loan Payable 5,000 Total Current Liabilities £ 35,000.00


Mortgage Payable 0




Net Profit 31,300


Total Liabilities and Capital £ 94,315.00



Assets

Fixed Assets:

Vehicles 0











Merchandise Inventory 0

Prepaid Expenses 0

Notes Receivable 0




Current Liabilities:

Accounts Payable £ -




Unearned Revenues 0


Short-Term Bank Loan Payable 0



Mortgage Payable 0




Net Profit 37,840



WOOD INTERIOR

SOLUTIONS

DESIGN &

MANUFACTURING

18 Spire Way, Rochester, Kent, ME3

8FS, UK

Telephone:

(+44) 0 7575 46 2424

E-mail:

[email protected]

Overview

Elevator Pitch

Wood Interior Solutions is an innovative and upcoming addition to the UK furniture market,

offering customers a wide range of quality wooden designs, often tailored to suit their own

individual needs. Although based in Kent, the company conducts business across the far reaches of

the country, appealing to a large consumer base with its innovative products, competitive prices

and effective marketing methods. Having successfully operated a near identical company in central

Europe, the directors bring with them a wealth of experience and knowledge that can no doubt be

applied and utilised in the UK market.

Vision Statement

‘We focus on quality of our craft, needs and aspirations of each customer and we are able to maintain our customer-focused attitude by taking one or two projects at a time.’

Mission Statement

‘WE TAKE PRIDE IN OUR WORK AND FOCUS ON QUALITY DELIVERING CUSTOMERS FULL SATISFACTION!'

Objectives

To participate in at least 3 expeditions within the first year of opening in the UK

To decrease overall delivery time by 15 minutes by the end of three years after opening

within the UK Have at least 6 different social media accounts open by the end of the first year after

opening within the UK To gain up to 2% market share within the first 2 years of opening within the UK Gain a turnover of 10% within the third year after opening within the UK

Products and Services

Wood Interior Solutions will offer the following products and services:

Interior design – Wood Interior Solutions will provide design services and the fittings themselves to homes and other buildings. The materials used for this service will mostly be

high-quality wood, but allows for other material if requested by the client.

Kitchen fittings – Wood Interior Solutions will offer kitchen designing and fitting in a variety

of different styles, as well as tailored to the client’s requirements. Doors – Wood Interior Solutions will offer services to design and fit both interior and

exterior doors for any purpose. ‘As Seen On TV’ bespoke furniture - Wood Interior Solutions will offer a service allowing customers to request custom-made furniture made exactly to their requirements.

Market Analysis

Swot Analysis

Strengths

Strong USP

WIS' unique selling point of high-quality wood home interior and furniture is a strong element of their marketing mix. The high levels of quality in their products and services will mean an opportunity for premium pricing and an increased likelihood of positive word-of-mouth advertising.

Range of products and services

WIS' portfolio of products and services, including wood interior, doors, kitchens and bespoke furniture, is large enough for them to have a presence in many different markets. While these markets are different, they are similar enough in a way that marketing strategies won't be too drastically different between them. This will save time and costs in marketing these different products and services.

Weaknesses

No current market share-

As WIS currently has no market share and very little presence in the UK at all, it will be difficult to generate sales in these markets with already well-established businesses. This fact will need to be taken into account when considering all areas of the marketing mix.

Limited resources for promotion

Currently, WIS uses solely word-of-mouth promotion to raise awareness of their products and services. While this can prove to be effective for how cheap it is, it may prove difficult to raise awareness without a more costly promotion strategy.

Opportunities

Commercial interior market-

One market that WIS is looking to enter is offering interior design for commercial businesses such as restaurants, pubs, hotels etc. Within the area of central London, there doesn't seem to be many other businesses in this market. While some interior design firms offer services for offices, no other business offers services similar to WIS. This could give WIS a USP that will allow them to thrive in this market.

Demographics in London-

Primarily targeting potential customers in London, there are many areas in London with a demographic of WIS’ targeted customers. There are many areas in London where wealthy people have bought what may be their last house and will be interested in the style of interior design that WIS offers.

Threats

Changes in customer tastes-

While there are some potential customers within London who may be interested in WIS’ products and services, the trend in interior design in central London is more modern style interior design of flats and apartments. While this may be a gap in the market for what WIS offers, it’s more likely that central London isn’t the best place to aim for home interior design.

Threat from competitors

The nature of the interior design market means that most customers want it to be fashionable, meaning they are more likely to read up on the already established interior design firms and designers in London. As WIS has yet to have any presence in the UK, it may prove difficult to generate sales.

Porters 5 Forces

Supplier Power: Due to Wood Interior Solutions only having currently one supplier this means that this supplier has high power over the company as they can manipulate prices to their own advantage and cause Wood Interior solutions to potentially pay more than other suppliers.

Buyer Power: Wood Interior Solutions are new to the UK therefore they have not obtained a customer base yet. Therefore due to having near to no buyers yet, new buyers can drive prices down with ease as Wood Interior Solutions are dependent on their first customers in order to succeed. However as this business sells bespoke objects customers may not be price sensitive as it is a high end product, this decreases their buying power.

Competitive Rivalry: There is a wide variety of competition within the bespoke wood industry and all the competitors are very capable. Competitors such as: AF Designs London, Bespoke London Interior, Lapthorn Furniture etc. all provide equally attractive products and services, therefore Wood Interior Solutions have little power as buyers and suppliers will go somewhere else if they don’t get a good deal from Wood Interior Solutions as they have many other companies to choose from. However Wood Interior Solutions provide a variety of services such as: furniture, Interior design, doors, bedrooms kitchens etc. This is unique as the majority of the competitors provide only one or two of these services. This can be used as a USP as it provides a huge strength for Wood Interior Solutions.

Threat of Substitution: Anyone with enough experience and the correct equipment can make bespoke furniture. However the problem lies within how they make the product. There are two ways to make these products and that is to handcraft it and create a bespoke piece, or manufacture it so it is just a standard product with no finesse. Manufacturing the product is much easier to do, whilst providing a much more effective and faster way to move the products. This substitute is also viable therefore Wood Interior Solutions power would be weakened by this.

Threat of New Entry: The risk of this happening is rather average as in order for people to enter this market they would have to fit the criteria of time, money and compete with your key technology. No matter how competitors plan to manage their time, in order to produce high quality bespoke products a lot of time is needed as Wood Interior Solutions can only deal with 2 orders at a given time. However if competitors found a way to overcome this time, whilst still providing high quality then they would be a serious threat. Also costing involved when buying resources, such as wood for

creating bespoke products comes at quite a high price as the resource is a natural material. Due to this the price hardly changes when buying from a supplier. The chances of a competitor being able to come into this market and buy supplies at a low price and manage their time so it costs little is very low, therefore they cannot compete effectively. This market requires experience and known contacts in order to optimise performance.

Competitor Analysis

Wood Interior Solutions – Wood Interior Solutions aim is to provide bespoke high quality wood furniture solutions, free-standing or integrated, kitchen units and full interior designs throughout the United Kingdom, with their initial target audience being the south east of London. Through Wood Interior Solutions planning to specifically target the South East of London it will be up against quite a few competitors which also specify in creating bespoke high quality wood furniture solutions, free-standing or integrated, kitchen units and full interior designs such as:

AF designs London Sebastian Cox

Bespoke London Interior

AF Designs London – AF Designs London can be thought as Wood Interior Solutions biggest threat in the South East of London, due to the fact that they also specialise in creating bespoke high quality wood furniture solutions, free-standing or integrated, kitchen units and full interior designs. Andrea Felice Designs London has also been featured in the press quite frequently and thus has gathered a huge respectful reputation throughout the industry and is trusted. Decorex, the Financial Times, the London Evening Standard and Vogue Living Australia, therefore this shows that they have an effective advertising strategy alongside have a string foundation with the media.

Sebastian Cox – Sebastian Cox is also a significantly big threat to Wood Interior Solutions they are based in Woolwich in London so are in the South East region of London, they specialise in handcrafted British furniture. Sebastian Cox has done quite a few collaborations which singles they are a renowned company, examples of this are there collaboration with deVOL for a kitchen in which they sought to return British hardwoods especially English Beech into the British kitchen. Other collaborations which Sebastian Cox have had include The Glenlivet, Benchmark, The Wish List and The Invisible store of Happiness these collaborations range from a specialised drinks trolley to elegant furniture to designs which would feature in festivals. Sebastian Cox himself the founder of Sebastian Cox has featured in the press a few times, Homes & Gardens, The Sunday Times, Elle Decoration are examples. Sebastian Cox has also won some quite big awards further enhancing their reputation, The Wood Awards, Homes & Gardens Designer Award 2015 and Elle Decoration British Design Awards 2014 are some of the awards which they’ve won.

Bespoke London Interior – Bespoke London Interior is based in London and specialises in providing a complete and full service from the furniture design and planning to the installation into the customer home, fitted bedrooms, built-in wardrobes, living rooms & hall cabinets, libraries & home office furniture and bathroom cabinets & bespoke joinery are examples of service which Bespoke London Interior are able to do. Compared to AF Designs London and Sebastian Cox Bespoke London Interior aren’t as big of a rival however they specialise and work in creating bespoke furniture which is the area which Wood Interior Solutions is looking to dominate. Unlike the other two Bespoke London interior hasn’t received any awards or featured in the press and thus they have a different market strategy and can’t rely on their reputation to gain customers and thus it shows that they must have a strong marketing strategy.

As the Headquarters of Wood Interior Solutions is based in Rochester, Medway. Local competitors need to be considered. The local competitors include know companies such as B&Q, Argos, Wilkinson’s and The Range. All of these companies have a significantly strong customer bases and are well respected in the industry. These companies however don’t specialise in high end bespoke furniture and thus don’t pose an immediate threat to Wood Interior Solutions as Wood Interior Solutions will be providing furniture of a much higher quality and standard. In the immediate area of Medway the major competitors for Wood Interior Solutions include Home plus Furniture and Lapthorn Furniture.

Home Plus Furniture – Home Plus Furniture is based in Ashford, Kent. Even though they don’t deal with bespoke ‘high end’ furniture they offer a large variety of wood furniture with the list of wood they provide include Oak, Pine, Acacia, a range of Cromer grey, Mist Oak and the classic Canterbury Oak range which also consists of a variety of wood. In this sense Home Plus Furniture is a huge competitor as they offer a large amount of the same wood brand as Wood Interior Solutions at a lower price and thus potential customers may feel more inclined to purchase furniture off Home Plus Furniture then Wood Interior Solutions. Therefore in order to prevent this scenario Wood interior Solutions will need to prove that they provide and gather a reputation for providing a better quality service, in which the customers will feel they’re benefitting by paying more.

Lapthorn Furniture - Lapthorn Furniture is based in the Historic Dockyard, Chatham. Lapthorn furniture is run by its founder Andrew Lapthorn who is a bespoke furniture designer and maker who creates unique designs predominately with wood. Lapthorn Furniture is a major local competitor for Wood Interior Solutions at they are currently providing bespoke furniture to variety of the local clientele such as , The University of Kent, The University of Canterbury Christ Church, RSPB and Medway council, thus Lapthorn Furniture is a threat to Wood Interior Solutions as they already have a trusted strong relationship built up. Wood Interior Solutions however provide a wider selection of services in comparison to Lapthorn furniture who specialise in bespoke furniture whereas Wood Interior Solutions specialise in bespoke high quality wood furniture solutions, free-standing or integrated, kitchen units and full interior designs. An additional advantage which Wood Interior Solutions has over Lapthorn Furniture is that they’re able to provide a level of customisation and personalisation to each customer easily and efficiently as for example the customer sends a picture of their furniture that they have a fancying too and the criteria that fits them best. Wood Interior Solutions then will propose designs and quotations based upon this; this can be classified as a Unique Selling Point for Wood Interior Solutions. The chief competitor in the industry for Wood Interior Solutions is AF Designs London they’re the most renowned out of all the competitors through being featured in very reputable press. Bespoke London Interior and Sebastian Cox are also significant competitors in a sense but Wood Interior Solutions have a larger amount of services compared to both of them they need to wary that these companies don’t gain a market advantage on them through the fact they are able to focus on less services and thus be able to offer a better product. Home Plus Furniture is a competitor in the sense they offer a variety of wood which Wood Interior Solutions also offer however through the ac that Wood Interior Solutions offer a bespoke product is the Unique Selling Point which will give them the advantage over Home Plus Furniture, Wood Interior Solutions need to have an effective market strategy which ensures that potential customers feel fulfilled in paying their prices and thus don’t go to other companies such Home Plus Furniture, Argos, B&Q and He Range who all have a large customer base and also have multitude of stores throughout the United Kingdom. Lastly Lapthorn Furniture are a local chief competitor as they provide products and service to many local clientele and thus Wood Interior Solutions need to ensure that they are able to replace Lapthorn Furniture as the main man in Medway through effective marketing and excellent service.

Marketing Mix

Price – An effective pricing strategy needs to implemented as Wood Interior Solutions are offering

bespoke high quality wood furniture solutions, free-standing or integrated, kitchen units and full

inferior designs which are a lot of services with a finished product which is of the highest thus the

price needs to shows this however deals need to be added in the first 6 months or so such as 10%-

20% if a client gets work done within the open time period of Wood Interior Solutions being set

up or a discount if they recommend Wood Interior Solutions to another person who then gets

work done.

Product – Wood Interior Solutions aim is to provide bespoke high quality wood furniture solutions, free-standing or integrated, kitchen units and full interior designs throughout the United Kingdom.

Promotion – The most effective and successful way for Wood Interior Solutions to enter this new market is through productive advertising and promotion, such as:

Newspaper Advertisement – Wood Interior Solutions should look to place adverts in the

Medway Messenger, London Times and Kent Messenger/Online. Television Advertisement – A clever advert on TV is an effective way to gain customers through the endorsement of a famous celebrity this could be a way for Wood Interior

Solutions to gain and be seen by customers.

Newsletters & Postcards – Emails, Newsletters and Postcards to customers who registered

on a signup sheet on a high street or in store. Social Media - Incorporating Social media could be a cheap, easy way of promotion which Wood Interior Solutions could consider.

Place – The United Kingdom, target audience is South East London.

People – Wood Interior Solutions need to ensure that they have the right people in charge to lead them whilst they enter the United Kingdom market. They are a new entrant into the market and there are established companies with reputable reputations and large customer bases which are going to make it as hard as possible for them to gain a percentage of the market share.

Process – The service which Wood Interior Solutions needs to be exceptional as the service is a part of what the customer is paying for and very often they’ll be present thus the third party contractors’ which Wood Interior Solutions are going to hire to complete installations need to be able to be trusted and understand that they’re are effectively going to be the face of Wood Interior Solutions.

Physical Environment – If Wood Interior Solutions set up a shop where customers could come in and interact with employees of the company and get a sense of which they are it would be of a benefit

to them as a face to face dialogue between customers will be able to be built. Also through having a

physical shop for example and having a modern shop which is clean and tidy will also help build up

an image of Wood Interior Solutions which will only be positive

PESTEL Analysis

Political Economical Social Environmental Technological Legislative Sweden is the The UK has a large Wood Interior Solutions Around 5,000 If the latest Wood Interior largest producer impact on the will have to consider species of animals technology is used solutions will of Timber in the global timber social trends within the and 30,000 species effectively Wood have to abide by EU, and because trade—it is the UK, as the current trend of plants are interior solutions can the Consumer Sweden and the world's fifth largest seems to be a modern protected by CITES take the lead within rights act if they United Kingdom importer of crude slick look. However at varying degrees. the market. wish to sell their are members of wood products, and Wood trends consist of a products. the EU, there is the third largest clean, more rustic

no import duty. importer of paper aesthetic.

products. Timber is

duty free and has a

VAT rate of 20%.

Is the UK The pricing of local By considering the All imports and Upgrading the We will have to politically stable? rivals will affect our wealth distribution in exports of the manufacturing ensure materials May not be as sales price, as it will the UK, we can locate species covered by process could allow are sourced from Election has just be important to what area has the most the Convention is for a higher quality of a responsible passed, therefore offer a competitive appropriate target regulated by the product to be supplier. changes can occur rate. audience. According to corresponding produced. Also the Documentation within the next 5 an article in the guardian Authorities. rate at which stating that the years until the the wealthiest products shall be forest can be next election. households by region shipped out could harvested for

were located in South increase. wood may be East England and required to verify

London. this.

An upcoming Pricing for interior Changes in trends for In the 2015, the 6 The website may

referendum to design services interior design firms in month period deter potential

determine changes from job to central London. Increase to September had customers, as many

whether the UK job. This makes it in more modern designs an average price for people will be looking

will remain in the difficult to compare offered, very little softwood saw log for a quick price

EU could have pricing strategies 'traditional' style sales at £38.63. comparison.

drastic effects on with competitors. wooden interior. However the

the import fees of decrease from

timber from £49.55 in the 6

abroad. We may months to March

have to look at 2015 and £44.06 in

non-EU exporters, the 6 months to

such as Norway. September 2014

shows how soft

wood prices have

been falling rapidly.

Saw log prices Woodland Interior Services and products Woodland Interior

have fallen faster Solutions intends to offered by WIS more Solutions intends to

in Europe than in operate likely to appeal to older operate

the rest of the predominantly in demographic, home- predominantly in

world for the past London. The owners who are in the London. The

18 months, with competition is last house they'll live in. competition is clearly

the ESPI Price clearly strong in strong in this market,

Index reaching a this market, as just as just from using the

five year low in from using the key key words “Kitchens,

the 3Q/15, words “Kitchens, London” we can see

reports the Wood London” we can four paid for adverts

Resource see four paid for on Google.

Quarterly. adverts on Google.

Marketing Strategy

Expeditions:

The existing company operating in Europe uses expeditions as its strongest form of marketing,

travelling across Europe to present their products in a showroom format, attempting to

demonstrate the quality of their products and start to build relationships with potential customers.

Wood Interior Solutions intends to replicate this strategy, as the long term costs are comparatively

small (with other approaches) and the opportunity to effectively market the company is strong. At

this early stage, the company will focus its methods predominantly in the south of the UK, so as to

keep operating costs low and appeal to more local customers. As we become more successful, and

the company has established a strong brand name in the local area, we can look to operate in less

saturated markets, further away from Kent. Small close-knit populations such as villages are the

ideal targets for this strategy, as these are the types of communities where people know one

another, and can therefore provide strong word of mouth marketing. Furthermore, the buildings in

these sorts of areas are likely to be cottages and well-aged homes, with which wooden, older looking

furniture may be more suitable. One of the unique selling points of WIS is its focus on tailor made

products, unique to each customer’s desires. Expeditions are therefore only effective as far as

portraying former work to the market, which makes it imperative that any examples displayed are of

an extremely high standard.

Word Of Mouth:

This technique is the most effective for the twin company in Europe, as when done properly it can

provide a steady, continuously growing flow of customers at a very minimal cost. We believe that

such a strategy will be effective in the UK given that its success has been proven on a multi-lingual

platform, and will thrive even further in a technologically advanced, single language environment. In

order to be proficient with this method, it’s vital that the company focuses funds on excellent

customer service and quality, so as to create a positive brand image, which can only be commended

when talked about. Whilst the company’s short term objective is to gain market share, we must

ensure that appropriate quality assurance methods have been rigorously applied in production, to

guarantee the products reach and even surpass customer expectations. Although such techniques

will be costly initially, the long term benefits of having a strong brand image will no doubt prove

incredibly beneficial. A form of set referral system which would encourage past customers to

recommend the company to the surrounding area, may be necessary to make this method most

effective.

Networking:

Networking offers the opportunity to gain business from indirect competitors that offer a similar

type of service as ourselves, but focus on different styles and the primary use of different materials.

This mutually beneficial method is reliant on pre-agreed terms with other companies, to encourage

customers to look at an alternative portfolio if we/they cannot provide what is desired. Like word of

mouth this technique is normally without charge, and will help provide us with customers we may

not have yet appealed to.

Online Marketing:

At present, the company already boasts an impressive website, allowing potential customers to

observe and gain an example of the type of products on offer. This is currently the complete scope

of the firm’s online capabilities, as it lacks the ability to compete with its rivals in this sense. Other

furniture companies offer much sleeker and efficient sites, whilst also being well established on

forums, review sites and various search engines. Being truly proficient with this method requires

funding that Wood Interior Solutions may not have whilst investing in other marketing techniques.

It is therefore reasonable to focus the company’s efforts and finance in alternative methods of

marketing, so as to avoid directly (and probably ineffectively) contending with larger companies that

have more competitive power.

Finance Analysis

From these figures below we formulated a break-even analysis. This shows how many units it will take to break-even each month.

As you can see within the first year WIS is not expected to sell too much but since they have such a vast range of goods it could take only a few purchases such as a full furnished kitchen or bedroom in order to break-even.

The graph stats that it takes on average 244 units to break even within each month in the first year, this equated to £24395 monthly to break-even.

As demonstrated the total sales and profit gradient grows a lot more as the business expands. This is due to such a high level of profit we would make if we sold a

Due to this being the first year we expect the total variable cost and total fixed costs to raise, this is due to wage increases and the more items WIS buys from their suppliers.

Break-Even Analysis

Total Fixed Costs £16943

Variable Cost per Unit (On Average) £30.49

Sales Price per Unit (On Average) £99.81

Units to be sold in order to break-even: 244

Break-even Point £24,395

Wood Interior Solutions Break-even Analysis

£250,000

£200,000

£150,000

£100,000

£50,000

£0 0 400 800 1200 1600 2000

-£50,000

Total TFC Total TVC Total TC Total Sales Total Profit




Opening Balalnce £100,000.00 £13,028.33 £6,416.67 -£5,180.00 -£7,991.67 -£4,873.33 -£12,855.00 -£22,016.67 -£478.33 £4,305.00 £7,778.33 -£4,193.33

Income Kitchens

Small (£5400 per kitchen) £5,400.00 £10,800.00 £5,400.00 £5,400.00 £5,400.00



Doors

Internal (£45 per door) £180.00 £180.00 £90.00 £45.00 £180.00 £90.00 £180.00 £180.00 £45.00 £135.00 £225.00

External (£130 per door) £130.00 £130.00 £130.00 £260.00 £130.00 £260.00 £260.00 £390.00 £390.00 £390.00 £520.00

Beds

Single (£175 per bed) £175.00 £175.00 £175.00 £350.00 £525.00 £175.00 £175.00 £350.00 £175.00 £525.00 £700.00

Double (£250 per bed) £250.00 £250.00 £250.00 £500.00 £500.00 £250.00 £500.00 £500.00 £500.00

King Size (£400 per bed) £400.00 £800.00 £400.00 £800.00 £400.00 £800.00 £400.00 £400.00



4 seat (£470 per set) £470.00 £470.00 £940.00 £940.00

6 seat (£750 per set) £750.00 £750.00 £1,500.00 £1,500.00 £750.00 £750.00

8 seat (£920 per set) £920.00 £1,840.00 £1,840.00

Bathrooms

Small (£3500 per room) £3,500.00

Medium (£9600 per room) £9,600.00 £9,600.00

Large (£15000 per room) £15,000.00

Wardrobes



4 door with 4 drawers (£650 per wardrobe) £650.00 £1,300.00

Chests of drawers

3 drawers (£150 per set) £150.00 £150.00 £300.00 £150.00 £150.00 £150.00 £150.00 £150.00

4 drawers (£220 per set) £220.00 £220.00 £440.00

5 drawers (£300 per set) £300.00 £300.00 £300.00 £600.00

6 drawers (£350 per set) £700.00 £350.00 £700.00

Decoration


High Street Shops (Price quotation)





Houses/Apartments

Small (£160 per room) £480.00 £320.00 £160.00 £800.00 £320.00 £160.00

Medium (£240 per room) £240.00 £480.00 £720.00 £480.00 £720.00

Large (£350 per room) £350.00 £1,400.00 £700.00 £350.00


Nursery Cots

Medium (£130 per cot) £260.00 £260.00 £130.00 £260.00 £130.00 £260.00 £130.00

Large (£200 per cot) £200.00 £400.00 £200.00 £400.00 £200.00 £200.00

Cabinets



600mm Wall Cabinet (£180 per Cabinet) £180.00 £360.00 £180.00 £180.00 £360.00 £360.00 £360.00 £540.00 £540.00 £540.00 £720.00 £900.00

Storage Trunks (£55 to £70 per trunk) £120.00 £160.00 £180.00 £200.00 £180.00 £160.00 £200.00 £220.00 £240.00 £225.00 £230.00

Chairs (£60 to £300 per chair) £60.00 £240.00 £240.00 £480.00 £480.00 £480.00 £720.00 £720.00 £960.00 £720.00 £960.00 £1,020.00

Display Stands (£200 to £500 per cabinet) £500.00 £200.00 £500.00 £800.00 £750.00 £1,100.00 £450.00 £600.00

Total Income

£1,275.00 £11,535.00 £3,900.00 £24,485.00 £52,915.00 £27,015.00 £7,285.00 £44,085.00 £28,030.00 £31,170.00 £9,775.00 £50,705.00

Expenditure Purchase of Capital Assets (NCA) £35,000.00

Suppliers (Purchases) £40,000.00 £2,000.00 £1,400.00 £11,000.00 £35,000.00 £17,000.00 £1,700.00 £4,000.00 £6,000.00 £7,000.00 £5,000.00 £20,000.00



Bank loan Repayments (inc Interest) £1,666.67 £1,666.67 £1,666.67 £1,666.67 £1,666.67 £1,666.67 £1,666.67 £1,666.67 £1,666.67 £1,666.67 £1,666.67 £1,666.67


Rent (one month arreas) £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00


Marketing (5k Annually) £1,000.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00

Accounting £500.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00


Sub-contract labour (one month accrued) £3,000.00 £1,000.00 £3,000.00 £1,000.00 £5,000.00 £1,500.00 £5,500.00 £1,500.00 £5,500.00 £1,750.00 £7,000.00

Travel Expenses £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £1,000.00

Other Costs £100.00 £100.00 £150.00 £150.00 £150.00 £150.00 £200.00 £200.00 £200.00 £250.00 £250.00 £250.00

Total Expenditure

£88,246.67 £18,146.67 £15,496.67 £27,296.67 £49,796.67 £34,996.67 £16,446.67 £22,546.67 £23,246.67 £27,696.67 £21,746.67 £43,496.67

Net Cash Flow

-£86,971.67 -£6,611.67 -£11,596.67 -£2,811.67 £3,118.33 -£7,981.67 -£9,161.67 £21,538.33 £4,783.33 £3,473.33 -£11,971.67 £7,208.33

Closing Balance

£13,028.33 £6,416.67 -£5,180.00 -£7,991.67 -£4,873.33 -£12,855.00 -£22,016.67 -£478.33 £4,305.00 £7,778.33 -£4,193.33 £3,015.00






Income Kitchens

Small (£5400 per kitchen) £10,800.00 £5,400.00 £5,400.00


Large (£12000 per kitchen) £12,000.00 £24,000.00 £12,000.00

Doors


External (£130 per door) £1,300.00 £780.00 £780.00 £780.00 £520.00 £910.00 £1,040.00 £1,950.00 £130.00 £260.00 £390.00 £1,040.00

Beds

Single (£175 per bed) £350.00 £350.00 £525.00 £875.00 £700.00 £1,050.00 £175.00 £1,050.00 £1,050.00 £700.00 £525.00 £875.00

Double (£250 per bed) £250.00 £750.00 £750.00 £1,250.00 £500.00 £250.00 £750.00 £1,000.00 £750.00 £500.00 £250.00 £1,000.00

King Size (£400 per bed) £400.00 £1,200.00 £800.00 £400.00 £2,000.00 £400.00 £800.00 £1,200.00 £800.00 £400.00 £1,600.00 £800.00



4 seat (£470 per set) £940.00 £470.00 £1,410.00 £470.00 £470.00 £1,880.00 £1,410.00

6 seat (£750 per set) £2,250.00 £1,500.00 £750.00 £750.00 £2,250.00 £2,250.00

8 seat (£920 per set) £920.00 £2,760.00 £1,840.00 £2,760.00 £920.00 £1,840.00 £1,840.00 £1,840.00 £920.00

Bathrooms

Small (£3500 per room) £3,500.00 £7,000.00

Medium (£9600 per room) £28,800.00 £9,600.00

Large (£15000 per room) £30,000.00 £15,000.00

Wardrobes




Chests of drawers

3 drawers (£150 per set) £900.00 £600.00 £450.00 £300.00 £300.00 £750.00 £1,350.00 £600.00 £900.00 £750.00 £300.00 £600.00

4 drawers (£220 per set) £1,100.00 £440.00 £1,540.00 £880.00 £660.00 £1,100.00 £1,760.00 £880.00 £660.00 £660.00 £1,320.00 £1,100.00

5 drawers (£300 per set) £600.00 £1,200.00 £1,500.00 £2,400.00 £1,800.00 £1,200.00 £2,100.00 £600.00 £900.00 £1,500.00 £600.00 £300.00

6 drawers (£350 per set) £1,400.00 £1,050.00 £1,050.00 £700.00 £1,750.00 £1,400.00 £2,450.00 £1,050.00 £1,050.00 £2,100.00 £1,400.00 £700.00

Decoration


High Street Shops (Price quotation) £50,000.00





Houses/Apartments

Small (£160 per room) £320.00 £320.00 £640.00 £480.00 £320.00 £800.00 £480.00 £640.00 £480.00

Medium (£240 per room) £960.00 £1,440.00 £480.00 £480.00 £1,440.00 £1,200.00 £1,440.00 £1,440.00

Large (£350 per room) £350.00 £1,280.00 £960.00 £1,280.00


Nursery Cots

Medium (£130 per cot) £650.00 £520.00 £780.00 £390.00 £260.00 £650.00 £520.00 £260.00 £650.00

Large (£200 per cot) £600.00 £600.00 £600.00 £600.00 £600.00 £200.00 £600.00 £600.00 £600.00

Cabinets

300mm Wall Cabinet (£130 per Cabinet) £650.00 £390.00 £520.00 £520.00 £260.00 £390.00 £520.00 £780.00 £650.00 £260.00 £520.00 £1,040.00

400mm Wall Cabinet (£150 per Cabinet) £600.00 £450.00 £750.00 £300.00 £450.00 £750.00 £1,050.00 £900.00 £900.00 £300.00 £750.00 £300.00

600mm Wall Cabinet (£180 per Cabinet) £540.00 £540.00 £720.00 £900.00 £360.00 £720.00 £360.00 £900.00 £900.00 £1,080.00 £720.00 £540.00


Chairs (£60 to £300 per chair) £200.00 £500.00 £250.00 £700.00 £650.00 £400.00 £800.00 £1,500.00 £1,200.00 £950.00 £500.00 £500.00

Display Stands (£200 to £500 per cabinet) £850.00 £1,100.00 £600.00 £1,250.00 £1,600.00 £900.00 £700.00 £1,050.00 £1,050.00 £970.00 £200.00 £550.00

Total Income

£36,160.00 £23,755.00 £39,935.00 £80,310.00 £19,830.00 £23,015.00 £126,335.00 £52,260.00 £81,825.00 £57,735.00 £37,270.00 £48,840.00




Bank loan £416.67 £416.67 £416.67 £416.67 £416.67 £416.67 £416.67 £416.67 £416.67 £416.67 £416.67 £416.67


Rent £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00


Marketing (5k Annually) £500.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00

Accounting (10 months prepaid from Mar) £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00


Sub-contract labour £5,000.00 £500.00 £1,750.00 £3,000.00 £700.00 £600.00 £9,500.00 £2,500.00 £4,500.00 £2,500.00 £1,500.00 £2,000.00

Travel Expenses £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £100.00

Other Costs £900.00 £500.00 £650.00 £900.00 £150.00 £150.00 £1,500.00 £700.00 £350.00 £550.00 £450.00 £600.00

Total Expenditure

£49,766.67 £18,966.67 £33,466.67 £67,766.67 £24,416.67 £22,716.67 £126,836.67 £49,036.67 £76,386.67 £48,986.67 £35,886.67 £41,736.67

Net Cash Flow

-£13,606.67 £4,788.33 £6,468.33 £12,543.33 -£4,586.67 £298.33 -£501.67 £3,223.33 £5,438.33 £8,748.33 £1,383.33 £7,103.33

Closing Balance

£14,408.33 £19,196.67 £25,665.00 £38,208.33 £33,621.67 £33,920.00 £33,418.33 £36,641.67 £42,080.00 £50,828.33 £52,211.67 £59,315.00



Funds Capital £40,000.00 Bank loan -



Income Kitchens

Small (£5400 per kitchen) £16,200.00 £10,800.00



Doors


External (£130 per door) £780.00 £780.00 £780.00 £1,040.00 £1,300.00 £1,950.00 £1,170.00 £1,560.00 £910.00 £650.00 £1,040.00 £520.00

Beds

Single (£175 per bed) £525.00 £350.00 £700.00 £875.00 £1,225.00 £1,225.00 £1,050.00 £700.00 £875.00 £525.00 £525.00 £1,050.00

Double (£250 per bed) £1,000.00 £750.00 £1,250.00 £1,250.00 £750.00 £500.00 £1,000.00 £1,750.00 £500.00 £500.00 £1,000.00 £1,250.00

King Size (£400 per bed) £800.00 £1,200.00 £1,200.00 £2,000.00 £1,600.00 £1,200.00 £2,000.00 £1,200.00 £800.00 £1,200.00 £800.00 £1,200.00



4 seat (£470 per set) £1,410.00 £1,410.00 £1,410.00 £470.00 £1,880.00 £940.00 £940.00

6 seat (£750 per set) £2,250.00 £1,500.00 £3,000.00 £1,500.00 £1,500.00 £1,500.00 £2,250.00 £2,250.00

8 seat (£920 per set) £3,680.00 £2,760.00 £1,840.00 £1,840.00 £2,760.00 £1,840.00 £920.00 £1,840.00 £1,840.00 £2,760.00

Bathrooms

Small (£3500 per room) £3,500.00 £7,000.00 £3,500.00

Medium (£9600 per room) £19,200.00 £9,600.00 £9,600.00

Large (£15000 per room) £30,000.00 £45,000.00 £15,000.00

Wardrobes




Chests of drawers

3 drawers (£150 per set) £900.00 £600.00 £450.00 £300.00 £300.00 £750.00 £1,350.00 £600.00 £900.00 £750.00 £300.00 £600.00

4 drawers (£220 per set) £1,100.00 £440.00 £1,540.00 £880.00 £660.00 £1,100.00 £1,760.00 £880.00 £660.00 £660.00 £1,320.00 £1,100.00

5 drawers (£300 per set) £600.00 £1,200.00 £1,500.00 £2,400.00 £1,800.00 £1,200.00 £2,100.00 £600.00 £900.00 £1,500.00 £600.00 £300.00

6 drawers (£350 per set) £1,400.00 £1,050.00 £1,050.00 £700.00 £1,750.00 £1,400.00 £2,450.00 £1,050.00 £1,050.00 £2,100.00 £1,400.00 £700.00

Decoration

Pubs & Restaurants (Price quotation) £45,000.00 £45,000.00 £60,000.00

High Street Shops (Price quotation) £40,000.00 £40,000.00




Clubs (Price quotation) £10,000.00 £25,000.00

Houses/Apartments

Small (£160 per room) £640.00 £480.00 £800.00 £160.00 £480.00 £480.00 £320.00 £800.00 £480.00 £640.00 £480.00

Medium (£240 per room) £1,200.00 £480.00 £960.00 £1,200.00 £720.00 £1,440.00 £1,200.00 £1,440.00 £720.00

Large (£350 per room) £700.00 £1,400.00 £1,280.00 £960.00 £1,280.00 £1,280.00 £1,280.00 £1,280.00 £1,280.00 £1,280.00


Nursery Cots

Medium (£130 per cot) £910.00 £390.00 £520.00 £780.00 £1,170.00 £910.00 £780.00 £390.00 £520.00 £650.00

Large (£200 per cot) £600.00 £1,200.00 £800.00 £800.00 £200.00 £1,000.00 £400.00 £600.00 £800.00

Cabinets

300mm Wall Cabinet (£130 per Cabinet) £910.00 £520.00 £780.00 £520.00 £390.00 £650.00 £520.00 £910.00 £1,040.00 £520.00 £780.00 £390.00

400mm Wall Cabinet (£150 per Cabinet) £900.00 £450.00 £450.00 £750.00 £450.00 £1,050.00 £750.00 £600.00 £300.00 £600.00 £750.00 £600.00

600mm Wall Cabinet (£180 per Cabinet) £900.00 £360.00 £540.00 £900.00 £1,260.00 £900.00 £720.00 £1,080.00 £900.00 £1,080.00 £720.00 £360.00


Chairs (£60 to £300 per chair) £500.00 £730.00 £840.00 £970.00 £1,200.00 £550.00 £660.00 £970.00 £400.00 £950.00 £500.00 £330.00

Display Stands (£200 to £500 per cabinet) £700.00 £950.00 £1,270.00 £1,500.00 £1,390.00 £1,110.00 £920.00 £1,050.00 £970.00 £200.00 £200.00 £550.00

Total Income

£52,845.00 £57,905.00 £52,980.00 £92,270.00 £126,320.00 £89,455.00 £39,470.00 £87,730.00 £105,245.00 £42,555.00 £75,270.00 £41,105.00




Bank loan - - - - - - - - - - - -


Rent £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00 £3,500.00

Repairs and Mantainence £1,100.00 £1,100.00 £300.00 £1,100.00 £2,000.00 £300.00 £1,000.00 £1,000.00 £1,000.00 £500.00 £500.00 £1,500.00

Marketing (1 month arreas) £400.00 £250.00 £250.00 £250.00 £250.00 £250.00 £300.00 £300.00 £300.00 £300.00 £300.00 £300.00

Accounting £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00 £400.00


Sub-contract labour (1 month accrued) £3,000.00 £2,500.00 £1,750.00 £3,000.00 £3,000.00 £5,500.00 £1,500.00 £7,500.00 £10,500.00 £2,500.00 £3,000.00 £2,000.00

Travel Expenses £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £700.00 £100.00

Other Costs £900.00 £500.00 £650.00 £900.00 £150.00 £150.00 £1,500.00 £700.00 £350.00 £550.00 £450.00 £600.00

Total Expenditure

£55,420.00 £63,570.00 £56,870.00 £87,300.00 £106,450.00 £79,150.00 £42,450.00 £81,450.00 £90,100.00 £43,700.00 £69,900.00 £48,650.00

Net Cash Flow

-£2,575.00 -£5,665.00 -£3,890.00 £4,970.00 £19,870.00 £10,305.00 -£2,980.00 £6,280.00 £15,145.00 -£1,145.00 £5,370.00 -£7,545.00

Closing Balance

£93,725.00 £88,060.00 £84,170.00 £89,140.00 £109,010.00 £119,315.00 £116,335.00 £122,615.00 £137,760.00 £136,615.00 £141,985.00 £134,440.00

PROFIT AND LOSS

INCOME

Q1

Q1 as % of Q2

Q2 as % of Q3

Q3 as % of Q4

Q4 as % of Year

Year as % of

Sales

Sales Sales

Sales

Sales

Sales Revenue

Sales 16,710.00 100.0% 104,410.00 624.8% 79,400.00 475.2% 91,650.00 548.5% 292,170.00 100.0%


Cost of Sales

Suppliers 43,400.00 259.7% 63,000.00 377.0% 11,700.00 70.0% 32,000.00 191.5% 150,100.00 51.4%

Travel 1,400.00 8.4% 2,100.00 12.6% 2,100.00 12.6% 2,100.00 12.6% 7,700.00

Contractor Cost 4,000.00 23.9% 9,000.00 53.9% 8,500.00 50.9% 14,250.00 85.3% 35,750.00


Gross Profit - 32,090.00 -192.0% 30,310.00 181.4% 57,100.00 341.7% 43,300.00 259.1% 98,620.00 33.8%

TOTAL INCOME - 32,090.00 -192.0% 30,310.00 181.4% 57,100.00 341.7% 43,300.00 259.1% 98,620.00 33.8%

EXPENSES

Operating Expenses


Advertising 900.00 5.4% 600.00 3.6% 600.00 3.6% 600.00 3.6% 2,700.00 0.9%



-

Administrative -


Outside services (Accounting) 1,100.00 6.6% 900.00 5.4% 900.00 5.4% 900.00 5.4% 3,800.00 1.3%


Rent 10,500.00 62.8% 10,500.00 62.8% 10,500.00 62.8% 10,500.00 62.8% 42,000.00 14.4%

Utilities 540.00 3.2% 540.00 3.2% 540.00 3.2% 540.00 3.2% 2,160.00 0.7%



Bank Loan 5,000.00 29.9% 5,000.00 29.9% 5,000.00 29.9% 5,000.00 29.9% 20,000.00 6.8%

Other expenses 550.00 3.3% 650.00 3.9% 800.00 4.8% 950.00 5.7% 2,950.00 1.0%



TOTAL EXPENSES 38,090.00 2.28 37,990.00 2.27 39,940.00 2.39 44,090.00 2.64 160,110.00 0.55

TAXES





TOTAL TAXES - - - - - - - - - -

NET INCOME - 70,180.00 - 7,680.00 17,160.00 - 790.00 - 61,490.00





NET PROFIT - 70,180.00 -420.0% - 7,680.00 -46.0% 17,160.00 102.7% - 790.00 -4.7% - 61,490.00 -21.0%

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PROFIT AND LOSS

INCOME

Q1

Q1 as % of Q2

Q2 as % of Q3

Q3 as % of Q4

Q4 as % of Year

Year as % of

Sales Sales Sales Sales Sales

Sales Revenue

Sales 99,850.00 100.0% 123,155.00 123.3% 260,420.00 260.8% 143,845.00 144.1% 627,270.00 100.0%


Cost of Sales

Suppliers 51,000.00 51.1% 63,000.00 63.1% 185,000.00 185.3% 65,000.00 65.1% 364,000.00 58.0%

Travel 2,100.00 2.1% 2,100.00 2.1% 2,100.00 2.1% 1,500.00 1.5% 7,800.00

Contractor Cost 7,250.00 7.3% 4,300.00 4.3% 16,500.00 16.5% 6,000.00 6.0% 34,050.00


Gross Profit 39,500.00 39.6% 53,755.00 53.8% 56,820.00 56.9% 71,345.00 71.5% 221,420.00 35.3%

TOTAL INCOME 39,500.00 39.6% 53,755.00 53.8% 56,820.00 56.9% 71,345.00 71.5% 221,420.00 35.3%

EXPENSES

Operating Expenses


Advertising 500.00 0.5% 500.00 0.5% 500.00 0.5% 500.00 0.5% 2,000.00 0.3%



-

Administrative -


Outside services (Accounting) 900.00 0.9% 900.00 0.9% 900.00 0.9% 900.00 0.9% 3,600.00 0.6%


Rent 10,500.00 10.5% 10,500.00 10.5% 10,500.00 10.5% 10,500.00 10.5% 42,000.00 6.7%

Utilities 1,050.00 1.1% 1,050.00 1.1% 1,260.00 1.3% 1,260.00 1.3% 4,620.00 0.7%



Bank Loan 1,250.00 1.3% 1,250.00 1.3% 1,250.00 1.3% 1,250.00 1.3% 5,000.00 0.8%

Other expenses 2,250.00 2.3% 1,400.00 1.4% 2,550.00 2.6% 2,000.00 2.0% 8,200.00 1.3%



TOTAL EXPENSES 41,850.00 0.42 45,500.00 0.46 48,660.00 0.49 54,110.00 0.54 190,120.00 0.30

TAXES





TOTAL TAXES - - - - - - - - - -

NET INCOME - 2,350.00 8,255.00 8,160.00 17,235.00 31,300.00





NET PROFIT - 2,350.00 -2.4% 8,255.00 8.3% 8,160.00 8.2% 17,235.00 17.3% 31,300.00 5.0%

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PROFIT AND LOSS

INCOME

Q1

Q1 as % of Q2

Q2 as % of Q3

Q3 as % of Q4

Q4 as % of Year

Year as % of

Sales Sales Sales

Sales Sales

Sales Revenue

Sales 163,730.00 100.0% 308,045.00 188.1% 232,445.00 142.0% 158,930.00 97.1% 863,150.00 100.0%


Cost of Sales

Suppliers 109,000.00 66.6% 202,000.00 123.4% 134,000.00 81.8% 94,000.00 57.4% 539,000.00 62.4%

Travel 2,100.00 1.3% 2,100.00 1.3% 2,100.00 1.3% 1,500.00 0.9% 7,800.00

Contractor Cost 7,250.00 4.4% 11,500.00 7.0% 19,500.00 11.9% 7,500.00 4.6% 45,750.00


Gross Profit 45,380.00 27.7% 92,445.00 56.5% 76,845.00 46.9% 55,930.00 34.2% 270,600.00 31.4%

TOTAL INCOME 45,380.00 27.7% 92,445.00 56.5% 76,845.00 46.9% 55,930.00 34.2% 270,600.00 31.4%

EXPENSES

Operating Expenses


Advertising 300.00 0.2% 250.00 0.2% 300.00 0.2% 300.00 0.2% 1,150.00 0.1%


Total Marketing and Advertising Expenses 900.00 0.5% 750.00 0.5% 900.00 0.5% 1,200.00 0.7% 3,750.00 0.4%

-

Administrative -


Outside services (Accounting) 1,200.00 0.7% 1,200.00 0.7% 1,200.00 0.7% 1,200.00 0.7% 4,800.00 0.6%


Rent 10,500.00 6.4% 10,500.00 6.4% 10,500.00 6.4% 10,500.00 6.4% 42,000.00 4.9%

Utilities 1,260.00 0.8% 1,650.00 1.0% 1,650.00 1.0% 1,650.00 1.0% 6,210.00 0.7%


Repairs and maintenance 2,500.00 1.5% 3,400.00 2.1% 3,000.00 1.8% 2,500.00 1.5% 11,400.00 1.3%

Bank Loan - - - - - - - - - -

Other expenses 2,250.00 1.4% 1,400.00 0.9% 2,750.00 1.7% 1,800.00 1.1% 8,200.00 1.0%



TOTAL EXPENSES 57,510.00 0.35 57,500.00 0.35 58,400.00 0.36 59,350.00 0.36 232,760.00 0.27

TAXES





TOTAL TAXES - - - - - - - - - -

NET INCOME - 12,130.00 34,945.00 18,445.00 - 3,420.00 37,840.00





NET PROFIT - 12,130.00 -7.4% 34,945.00 21.3% 18,445.00 11.3% - 3,420.00 -2.1% 37,840.00 4.4%

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As ended 31 Dec 2017

Assets

Fixed Assets:

Vehicles 0








Current Assets: Cash £ 3,015.00



Merchandise Inventory 20,000

Prepaid Expenses 38500

Notes Receivable






Payroll Taxes Payable


Unearned Revenues 10,000


Short-Term Bank Loan Payable 20,000



Mortgage Payable 0




Net Profit -61,490


Total Liabilities and Capital $104,260


As ended 31 Dec 2018 As ended 31 Dec 2018

Assets

Fixed Assets:

Vehicles 0









Accounts Receivable £ -

Less: Reserve for Bad Debts 0 0 Merchandise Inventory 0

Prepaid Expenses 0

Notes Receivable 0 Total Current Assets £ 59,315.00


ties and Capital




Accrued Wages Payable 0

Unearned Revenues 0

Short-Term Notes Payable 10,000

Short-Term Bank Loan Payable 5,000 Total Current Liabilities £ 35,000.00


Mortgage Payable 0




Net Profit 31,300





Assets

Fixed Assets:

Vehicles 0











Merchandise Inventory 0

Prepaid Expenses 0

Notes Receivable 0




Current Liabilities:

Accounts Payable £ -




Unearned Revenues 0


Short-Term Bank Loan Payable 0



Mortgage Payable 0




Net Profit 37,840

