Assignment 4: Final Business Plan

 

Now it’s time to pull everything together and create your final business plan. Make sure to review all the feedback you received for Assignments 1, 2, and 3, and make the necessary corrections. Then copy and paste it all into one document, and add an executive summary and an exit strategy. The executive summary is a snapshot of your business plan as a whole and should touch on your company profile and goals. Additionally, the most successful exits in business require considerable planning. You will need to discuss two key factors to consider when planning your exit strategy.

Write a five (5) page paper in which you:

1. Write a one page executive summary that includes your company profile and goals.
2. Revise and insert the business models section you developed for Assignment 1.
3. Revise and insert the target market section you developed for Assignment 2.
4. Revise and insert the startup funds section you developed for Assignment 3.
5. Write a one page exit strategy where you discuss two key factors you would consider when planning an exit strategy. Provide explanation to support your reasoning.
6. Format your assignment according to the following formatting requirements:

   This course requires use of new Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.
   Typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
   Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page is not included in the required page length.

The specific course learning outcomes associated with this assignment are:

• Examine the process of innovating and developing ideas and business opportunities.
• Analyze different innovative business models to determine the best model for a specific venture.
• Analyze the management of a successful innovative company.
• Examine the process of developing a business plan and setting up the company.
• Analyze the market, customers, and competition of entrepreneurs.
• Analyze money sources for finding and managing funds.
• Determine the most effective communication process to present the business to investors.
• Analyze methods for exiting the venture.
• Use technology and information resources to research issues in entrepreneurship.
• Write clearly and concisely about entrepreneurship using proper writing mechanics.

Running head: BUSINESS PLAN 1

BUSINESS PLAN 5

18 Wheelers Business Plan

Yvonne Winn

Dr. Talil Abrhiem

October 25, 2020

Assignment 1: Business Models

The selection of an ideal business model is essential during business planning. The business model defines how the startup or developing company plans to create value, capture the market, and make profits. It helps in identifying products and services that the company plans to offer in the market. The business model also helps new companies adopt the appropriate go-to-market strategy, target market, and determining business expenses. Some of the business models that can be applied by 18 Wheelers Trucking Company include distributor, manufacturing, and transportation

The distributor business model involves the distribution of goods from one point to another. Generally, the distributor business model consists of producers, wholesalers, and retailers who assist in moving the product from production to consumption. A manufacturing business model describes the use of raw materials to produce products for sale (MU, 2020). On the other hand, the transportation model facilitates the movement of goods and services from the producer to the consumer.

The best business model for 18 Wheelers Trucking Company is a transportation service, particularly trucking. This model consists of some of the fastest-growing industries in the world that are ideal for investment. Transportation and logistics are one of the largest and competitive industries in the United States. As of 2018, the industry was approximated to be worth $1.6 trillion, the trucking subsector accounting for $700 billion alone (Select USA, 2020). The trucking industry has also realized volatile profitability and revenue growth over the last five years. The trucking industry’s robustness indicates that the freight transportation business model is the best approach for the 18 Wheelers Trucking Company.

Reference

MU. (2020). Traditional Types of Business Models. Retrieved from https://online.maryville.edu/business-degrees/traditional-types-business-models/#:~:text=Manufacturer,create%20a%20product%20to%20sell.&text=A%20manufacturing%20business%20can%20sell,business%2Dto%2Dconsumer%20model.

Running Head: BUSINESS PLAN

BUSINESS PLAN 2

18 Wheelers Business Plan

Yvonne Winn

Dr. Talil Abrhiem

November 8, 2020

Assignment 2: Target Market Segment

The target market describes a group of potential customers that the startup company wants to sell its products and services. Consumers in the target market usually have similar characteristics that appeal to the company’s business model. According to Thompson (2019), the target market can be segmented according to geographic, demographic, behavioral, and psychographic factors. Demographic segmentation involves targeting potential customers using age, gender, income, social class, education, and religion. Geographic segmentation entails dividing consumers according to the state, nation, and region where they live. Similarly, psychographic and behavioral segmentation is based on the consumer’s personality, lifestyles, occasions, and brand loyalty. In this case, I will use a geographic approach to segment the target market.

The primary target market for 18 Wheelers, according to geographic segmentation, will be Texas. The state offers the best business environment for the trucking business environment since it is positioned along major transportation routes. Secondly, Texas has regulations required for starting a company. According to Upconsel (2020), Texas is one of the few states requiring business owners to pay income tax. Moreover, Texas is an oil-producing state, meaning that the cost of fuel is low. These factors make Texas an ideal primary target market for the 18 Wheelers Company.

The company’s secondary market, in terms of geographic segmentation, will be the trucking market in the United States. The market consist of import and export companies that are more likely to purchase freight services. Similarly, the trucking business in the United States is experiencing upward growth and is the largest industry. According to Select USA (2020), the trucking industry generated $700 billion in 2018, making it the fastest-growing sector. Moreover, expanding the trucking business in different states enables the company to access more potential customers, hence realizing its growth objectives.

References

Select the USA. (2020). The Logistics and Transportation Industry in the United States. Retrieved from https://www.selectusa.gov/logistics-and-transportation-industry-united-states

Thompson, J. (2019). Target Market Segment Strategy. Chron, Retrieved from https://smallbusiness.chron.com/target-market-segment-strategy-63724.html#:~:text=Market%20segmentation%20is%20the%20act,similar%20characteristics%2C%20needs%20or%20behaviors.&text=This%20process%20is%20called%20segmentation,smaller%20segments%2C%20like%20an%20orange.

Upcounsel. (2020). Best State to Start a Trucking Company. Retrieved from https://www.upcounsel.com/best-state-to-start-a-trucking-company

Running Head: BUSINESS PLAN

BUSINESS PLAN 2

18 Wheelers Business Plan

Yvonne Winn

Dr. Talil Abrhiem

November 22, 2020

Assignment 3: Startup Funds

Every startup business requires adequate funds to operate effectively. Startup funds are the money the company needs to launch a new business. These funds help the company to move from idea development to actual business. For instance, 18 Wheelers Company needs startup funds to buy trucks and other equipment, pay incorporation fees, and business license. On the other hand, working capital refers to money in the company that is available for daily operations. It indicates the difference between the company’s current assets and current liabilities (CFI, 2017). The knowledge of working capital is crucial when starting a new business as it shows a competitive position and the ability of the company to pay its expenses. For instance, a positive working capital indicates that the company is capable of servicing its short-term expenses, including paying suppliers and employees.

The company can obtain startup funds through different methods. These include debit and equity financing. Equity financing is a source of funding where the company exchanges a portion of ownership with money (Hofstrand, 2013). This type of funding allows the investor to share in the company’s profits and losses. Examples of equity financing include angel investors, venture capital, and equity offerings. Debt financing involves borrowing funds from creditors with a promise to pay back with interest within a specified period. According to Hofstrand (2013), debt borrowing can be long-term, short-term, secured, or unsecured, depending on the company’s needs. Some of the sources of debt financing include bonds, government programs, commercial lenders, and banks.

As a startup company, 18 Wheelers should consider personal savings and debt financing as the most appropriate start fund sources. The savings from the founders of the company can be used to increase working capital. Similarly, borrowing from banks and other creditors will allow the company to meet the expansion strategy of moving from a small delivery truck to a big truck.

References

CFI. (2017). Working Capital Formula. Retrieved from https://corporatefinanceinstitute.com/resources/knowledge/modeling/working-capital-formula/

Hofstrand, D. (2013). Types and Sources of Financing for Start-up Businesses. Retrieved from https://www.extension.iastate.edu/agdm/wholefarm/html/c5-92.html

Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric.

Points: 220	Assignment 4: Final Business Plan
Criteria	Unacceptable Below 60% F	Meets Minimum Expectations 60-69% D	Fair 70-79% C	Proficient 80-89% B	Exemplary 90-100% A
1. Write a one page executive summary that includes your company profile and goals. Weight: 35%	Did not submit or incompletely wrote a one page executive summary that includes your company profile and goals.	Insufficiently wrote a one page executive summary that includes your company profile and goals.	Partially wrote a one page executive summary that includes your company profile and goals.	Satisfactorily wrote a one page executive summary that includes your company profile and goals.	Thoroughly wrote a one page executive summary that includes your company profile and goals.
2. Revise and insert the business models section you developed for Assignment 1. Weight: 5%	Did not submit or incompletely revised and inserted the business models section you developed for Assignment 1.	Insufficiently revised and inserted the business models section you developed for Assignment 1.	Partially revised and inserted the business models section you developed for Assignment 1.	Satisfactorily revised and inserted the business models section you developed for Assignment 1.	Thoroughly revised and inserted the business models section you developed for Assignment 1.
3. Revise and insert the target market section you developed for Assignment 2. Weight: 5%	Did not submit or incompletely revised and inserted the target market section you developed for Assignment 2.	Insufficiently revised and inserted the target market section you developed for Assignment 2.	Partially revised and inserted the target market section you developed for Assignment 2.	Satisfactorily revised and inserted the target market section you developed for Assignment 2.	Thoroughly revised and inserted the target market section you developed for Assignment 2.
4. Revise and insert the startup funds section you developed for Assignment 3. Weight: 5%	Did not submit or incompletely revised and inserted the startup funds section you developed for Assignment 3.	Insufficiently revised and inserted the startup funds section you developed for Assignment 3.	Partially revised and inserted the startup funds section you developed for Assignment 3.	Satisfactorily revised and inserted the startup funds section you developed for Assignment 3.	Thoroughly revised and inserted the startup funds section you developed for Assignment 3.
5. Write a one page exit strategy where you discuss two key factors you would consider when planning an exit strategy. Provide explanation to support your reasoning. Weight: 40%	Did not submit or incompletely wrote a one page exit strategy where you discussed two key factors you would consider when planning an exit strategy. Did not submit or incompletely provided explanation to support your reasoning.	Insufficiently wrote a one page exit strategy where you discussed two key factors you would consider when planning an exit strategy. Insufficiently provided explanation to support your reasoning.	Partially wrote a one page exit strategy where you discussed two key factors you would consider when planning an exit strategy. Partially provided explanation to support your reasoning.	Satisfactorily wrote a one page exit strategy where you discussed two key factors you would consider when planning an exit strategy. Satisfactorily provided explanation to support your reasoning.	Thoroughly wrote a one page exit strategy where you discussed two key factors you would consider when planning an exit strategy. Thoroughly provided explanation to support your reasoning.
6. Clarity, writing mechanics, and formatting requirements Weight: 10%	More than 8 errors present	7-8 errors present	5-6 errors present	3-4 errors present	0-2 errors present