|Type of paper:||Business plan|
|Categories:||Business plan Business strategy Customer service|
Entrepreneurs play a vital role in the economy and new market development. Put simply, an entrepreneur is a person who identifies a new business opportunity, organizes the factors of production necessary for setting up the business venture, and accepts the risks involved.
The name of my company will be Easy Airport Transfer (EAT) whose purpose shall be to build a successful business that prioritizes customers satisfaction above all. EAT shall be dedicated to offering quality airport transfer services to customers using the new mobile technology platform. The main reason that has prompted me to invest in this minicab operator business is that UBER has been out of business in St Alban since the TFL refused to renew their license. Additionally, there have not been any new entrants who would rival my business. This business plan shall show how an initial investment of about PS75,000 can yield a net profit of over PS13,000 in one year. With an initial capital of PS13,000, I will require additional funding, in the form of a business loan from a bank, of about PS60,000. I plan to organize my start-up business as a limited company which I project shall be in operation as soon as all the necessary factors of production are in place. The management team shall comprise of a team of two executives and shall be responsible for hiring experienced, honest, and dedicated drivers with a clean driving license who shall work for the company. The minicab operator business will be based in the St Alban area near London but shall afterward expand around airports all around England.
Description of the Business
EAT is a start-up entrepreneurial venture which shall be operating as a limited company. This business aims to provide quality and reliable airport transfer services to customers who will be traveling to and from the airport at St Albans and other airports in England. Even though EAT will be a start-up business, I am confident that the absence of UBER, which would have been my main competitor in the business at St Alban's, highly boosts my chances of establishing a strong foothold in the minicab business around this area.
Products and Services
In this business, I shall be providing quality airport transfer services for customers traveling to and from the airport. EAT will use its strategy, staff, and drivers to offer guaranteed pickups, clean and comfortable cabs, experienced drivers and safety to all our esteemed customers. Since competition is expected in almost every business, from new entrants, the quality and convenience of the services EAT will be offering shall make my business more desirable to the riders. Also, having operated at St Albans as a monopoly for some time, my brand of business shall be more recognizable than that of the new entrants. The use of wireless technology, just like in UBER, shall help the drivers to connect with the riders more reliably.
Evaluating the market is an important factor that any entrepreneur needs to consider to predict estimated sales and possible revenue income. It is even more challenging for startup businesses since there are no past performances to compare from, like in the case of existing businesses.
International citizens who will be arriving in the country shall be my main target market for this minicab operator business. All my customers have this characteristic in common: they need transport services after they arrive at the airport, which happens to be what my business will be offering. St Albans presents a good investment opportunity for any entrepreneur who may wish to invest in the minicab business targeting international citizens since UBER is not operational at the moment which means that this section of the country might have customers who are under-served by the existing competition. I addition, with more and more people arriving at the St Albans airport, it is reasonable to project that my market share as a new entrant will gradually rise as long as I prioritize satisfying the customers' wants and this happens to be my main goal as a minicab operator. Still, it is important to acknowledge that there may be fluctuations in sales forecast over time which may be a result of competition from existing rivals and new entrants. Other than St Albans, I see most parts of the country that have airports as potential areas for expanding my business.
My marketing strategy shall focus on providing the best customer experience at the most affordable prices. The majority of the riders dislike expensive or poor and unreliable transport services that some companies offer. EAT will mainly focus on England as a geographical market before venturing into the international markets. In England, my business shall start by introducing its minicab operator services at St Albans and then gradually to other parts of the country with airports.
I decided to settle on charging low prices as my pricing strategy. While several marketing strategies can lead to success, cost leadership is renowned in its effectiveness in attracting a large number of customers and returning high profits. This marketing strategy mainly targets the price-sensitive customers and the middle-class earners. I am confident that EAT's seamless integration of the cost leadership strategy in the minicab operator business shall form the backbone to its success. Other than cost leadership, I will promote my business by advertising the services I will be offering through media such as the internet and television advertising. Besides using cost leadership to elevate my business from the lower ranks of a startup and leverage it over the established competitors, I will also ensure I provide the most reliable customer services such as timely and guaranteed pickups to help build a reputation for my business.
Since getting feedback from customers is one of the most effective ways a business can use to help improve their services and, therefore, increase customer satisfaction, I shall ensure I provide a proactive live chat platform for my customers on the website of the business.
Deciding on where to locate your business can play an important role in attracting customers. For example, choosing a location with a huge customer influx will help your business serve more customers and, hence, make more profits. With this information in mind, I shall locate my minicab business in areas with the best access roads and good phone network connectivity for my wireless technology to work flawlessly.
Since almost all of my customers will not need to access the physical address of the business but rather the cabs, I would have no problem settling anywhere within St Albans. This is because I will already have a website that offers a platform for feedback for all my customers, even those who may need to file complaints against my drivers. Now, with the liberty to settle anywhere within St Albans, I would be able to lease a cost-effective apartment to serve as an office for the business.
For a minicab operator business, it's the strategic location of the cabs that I should prioritize most. Since all my customers shall be people who have just arrived at the airports and need a cab to get them to their destinations within the country, I shall have to locate my cabs not too far away from the airport and along paths that have less road traffic to increase reliability in service delivery to the riders. As one of the ways to help serve my customers better, I shall ensure that most of my cabs operate at any time of the day or night as long as there are customers who need the cab services. I shall also provide better compensation to my drivers for working late as a way to motivate them.
Management and Ownership
As the sole owner of this entrepreneurial venture which shall operate as a limited liability company, I decided on hiring two executives who shall be responsible for the day-to-day management of the business on my behalf. The two executives shall also be responsible for hiring the most qualified drivers.
Entrepreneurial Opportunities for Startup and Existing Business
The existence of several airports at St Albans and the recent withdrawal of Uber business at the city presents entrepreneurs with a good opportunity to invest in the minicab operator business. However, the same business opportunity might not do as well in those other cities in England where Uber, a well-established brand, might be operating. This would apply for international markets as well where Uber and other taxi businesses are already existent.
Factors affecting the growth of an idea, innovation, and creative solution
One of the factors that may impact the development of an idea, innovation or creative solution is the lack of focus or targeting to achieve short-term goals as an entrepreneur. A successful business venture needs proper vision and almost flawless execution for it to succeed. The other factor is the lack of adequate resources necessary for the successful implementation of the project. Every business needs adequate financial and human resources to help in implementing the Company's goals.
EAT shall be a cab business that will allow customers to connect to its contracted drivers through a mobile app. This section of the paper explores both internal factors which include strengths and weaknesses; and the external factors such as opportunities and threats to help realize EAT's set objectives (Biotech Connection, 2014).
Using EAT's mobile application, riders from the airport at St Alban can request services of a cab prompting the driver to go and pick them up and drive them to their destination. This mobile app technology also provides riders with information about the route they are taking hence keeping them up to date with the distance covered and what may be remaining. When customers reach their destination they pay with their credit cards making it unnecessary to carry money around. This is so much like the Uber business where a customer requests for the cab through a similar mobile app.
EAT shall charge its customers less than the local taxi drivers. It will, therefore, be logical for customers to choose EAT over local taxis. Since this shall be a startup business operating with new cars, its vehicles shall also be more comfortable to travel with compared to the existing older taxis which will give my business a competitive advantage.
EAT's drivers shall act like the company's ambassadors and one mistake by a driver can ruin EAT's good reputation. Drivers who could be connected with allegations such as raping of customers could inevitably sell EAT's name in the wrong way. Serious scandals may even scare away some customers who may opt to use other cab services and this would not be good for business.
The most significant opportunity that EAT has successfully exploited is the lack of satisfaction of customers from the old cab services. These traditional taxis charge more than what EAT shall be charging and there happens to be a lot of delays in service delivery to customers when they are requested for services.
The biggest threat that EAT will face in the market is competition from existing rival businesses such as traditional taxis and Uber as well as the threat of new entrants.
This considers the evaluation of the external factors that a business does not have control over. These factors include political, economic, social, technological, legal and environmental factors.
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