E-Commerce Start-Up Business Plan


E-Commerce Start-Up Business Plan


Opportunity

Problem

E-commerce is growing rapidly, and so do the returns processing needs of manufacturers and merchants. The average rate of returns for Internet-based companies is 9%. In the next year, returned merchandise amounted to $1.5 billion. Each transaction involves financial processing. Many require physical shipping, as well as processing the goods upon receipt. This can be a major hassle.

Solution

NoHassleReturn.com seeks to position itself in a strategic partnership with online merchants, web hosting companies and portals as well as shipping companies and online payment agent such as credit cards issuers. The strategy will offer reduced or free shipping for all returned merchandise because of demand aggregation. This will increase the acceptance of the strategy by consumers and result in more revenue for all participants. The proposed program is therefore a win-win solution to all parties involved. Additionally, the website and software architecture will be wireless-friendly. This will allow consumers to use the service from their mobile phones.

Market

E-commerce continues to grow and the amount spent online on goods and services is increasing. Online revenues increased by more than 300% in the past holiday season (20 November to 19 December) according to Shop.org. This was far beyond expectations and well above what Shop.org and Boston Consulting Group had expected. According to a study that included 30 retailers, the number of orders increased by 270% in categories such as apparel, books, music, specialty foods, electronics, and home and garden. According to the study, online sales are growing at 145% per year and online retailers’ revenues were projected to exceed $36 billion for 2013. An earlier study conducted by Ernst & Young, before the holiday frenzy, already estimated that total revenues for online retail and consumer products for the calendar year just completed were around $25-30 billion. Currently, the average rate of returns for Internet-based companies is 9%. The value of returned merchandise will reach $1.5 billion in the next year. This is a great opportunity.

Competition`

The company expects to compete with three types: Direct

Others will follow us if we are successful. Our most worrisome competition would be combining delivery and/or courier services, like something of this type owned or partnered with UPS or FEDEX.


Internal

The first competitors to the new service are the online retailers themselves. They are considered internal competitors because NoHassleReturn.com must form partnerships with retailers to provide its services.

NoHassleReturn.com will give retailers at least one selling opportunity while they are on the Web; something that a carrier partnership cannot offer. NoHassleReturn.com serves as a demand-aggregator, and can arrange the necessary agreements to provide consumers with reduced or even free shipping for all returned merchandise.


Channel

In reverse order to the paragraph above, service providers like Mail Boxes Etc. and PostNet may try to forge strategic partnerships with numerous online retailers to simplify the return process.

Why Us?

Our mission, to improve customer service and retention of online merchants as well as increase their sales, is to help them achieve their goals. We aim to enhance the image of online merchants and encourage online shopping growth. We do our best to improve customer satisfaction and the communication process between retailers with customers.

Expectations

Forecast

NoHassleReturn.com has a solid financial foundation that is both conservative and very promising. Once they are up and running and sign up some merchants as customers, NoHassleReturn.com will quickly gain momentum and generate impressive sales.

Financial Highlights per Year

Financing is Required

We need $50,000 in order to begin. Two owners will provide this amount to us, which we can use to begin $25,000 per person.


Start-Up Real Estate Business Plan


Start-Up Real Estate Business Plan


Opportunity

Problem

The advances in modern medicine have allowed people to live longer. Once they raise children and retire from work they have a new stage of their life where they find themselves enjoying their spouse and free from other responsibilities. They have another chance at being carefree as a young adult. They have to find a location within their budget that will allow them to do that.

Solution

GVRE provides real estate services for the Golden Valley retirement community, located northwest of Tucson. GVRE offers full-service title, real estate and mortgage services.

Market

The industry of retirement has experienced steady growth over the last twenty years. The U.S. has a record 21% over-55 population, and this number is increasing at an average of 3% annually. In certain parts of the country like the American Southwest, which has a high concentration of retirement communities, the growth rate is about 8%. This number is expected to rise as the first baby boomer generation reaches retirement age over the next decade. The U.S. Census Bureau has estimated that the industry of retirement, which includes home, medical, specialty equipment and retirement entertainment, generates 4.8 billion dollars per year.

Competition

The realty industry is highly fragmented. There are many potential competitors. Bowditch Realty, RE/MAX are our most serious competitors. Bowditch Realty is a well-established company with a strong track record of providing quality service. It has been in business for ten years. It currently has twelve agents, and long-term contracts with many home building companies. This company is somewhat larger than GVRE in both market capitalization, and size.

RE/MAX has a reputation for being one of America’s most prominent real estate firms. It is home to hundreds of agents, and has deep pockets that can be used against any kind of competitor move.

Why Us?

GVRE believes new entrants are the greatest threat to the market right now, as they want to capitalize on this high growth sector. Smaller real estate firms with less than ten employees will be the most likely new entrants. The one advantage GVRE does have is the exclusive right to act as an agent for Golden Valley Retirement Community. However, due to the high number of competitors and the overall low profitability of each firm, competition is quite intense.

Because most clients live in the same area, there is a lot of potential customers in this industry. Furthermore, clients tend to “shop around” for the best package of services and cost.

Expectations

Forecast

The company expects to reach profitability in the first year and does not anticipate any serious cash flow problems. The average margin per month for each segment should be sufficient, according to our estimates. We anticipate that around one sale per monthly will result in a break even point.

Financial Highlights per Year

Finance is required

We will be getting $20,000:

Mrs Susan Egan $10,000

Mr. Daniel Egan $10,000