E.B Cigerrete Business Plan

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Summary of Financial needs

In overall of financial needs to start and run a business, $120,000 of investment or loan is needed. I expect 1400 units of E.B., 1200 of liquid and 300 of power bank will be sold per month with 80% of growth for every month. As a result, in the first business year, it does not meet breakeven point until 57% of a year however, from that point E.B. will start to make a profit.

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Executive Summary

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Company information

This might be the most important competitive advantage as users can recognize their smoking habit through smart phone application easily. Therefore, they can control the amount of smoking by themselves while they using E.B. Furthermore, it illustrates smoking habit within graphs and numbers to aware users. Also, for smokers who worry about second-hand smoking, as E.B. is electric cigarette device, it does not contain high toxic materials which are critically harmful to human body. While many people figure smoking and secondary smoking is harmful, E.B. might be replacement of cigarette.

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Market opportunity

23.3% of male and 16.0% of female in Australia smokes the cigarette in 2011 to 2012(Australian Bureau of Statistics, 2015). Many of them try to quit smoking or want to quit smoking. Furthermore, not only for them but also, secondary target market can be smokers who worry about second-hand smoking. Therefore, expected market size in Australia will be around 8,700,000 people and growth rate is decreasing around 1.5 percent each year. However, as many people cannot quit smoking, there is still chance to run a business.

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Benefits to the Community

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Economic Development

As E.B. is high-end product production business, it creates several jobs. In fallowing sections;

- Manufacturing

- Workers

- Production line

- Packaging line

- Production control team

- Product quality management team

- Futilities manager

- Technical support team

- Office

- Marketing team

- Accouters

- Customer satisfaction team

- Information Technology

- Smart Phone application Developers

- Bluetooth module firmware Developers

- Sales

- On-line shop

- Web Designer

- Consumer counselor

- Off-line shop

- Shop assistants

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Community Development

While cigarette smoker are reduced as they turn into E.B. users, the smells of cigarette and toxic smoke are reduced on streets. Also, as E.B. does not have cigarette-butt, it also leads to maintain clean street. Furthermore, for a long term, health improvement of community makes the chance of improving productivity of businesses in community.

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Human development

In our business, we will offer our product to employees, therefore, for smokers they can use E.B. instead smoking cigarette to care their health and for non-smokers, they do not need to suffer from bad smell of cigarette. As a result, smokers can reduce the amount of smoking and wasting time to smoke cigarette, it also lead to increasing productivity.

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Company Analysis

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Form of Business Ownership

The ownership will be sole proprietorship due to the business will not be huge except the production line of factory. One of the primary strengths of this type of entity lies in the ease of forming a sole proprietorship. In a sole proprietorship, the owner has 100 percent control over the management and operations of the firm. This is the only type of business entity in which the owner does not need to answer to shareholders. Also, as our business is independent business, we have advantages and disadvantages which are;

- Advantages

- Financial control - With a smaller business such as an independent, finance can be managed easier due to smaller operations and less employees.

- Better customer relations - When operating a smaller business, customer relations become more valuable and sustain as the customer is the one who is primarily keeping the business alive, it is critical as an independent that the customer relations are of good volume.

- Decision making - Decision making can be made easier in smaller operations as there is less pressure as opposed to a larger company-based business. With closer employee relations as well as customer relations, independents can make easier and faster decisions to benefit all.

- Product change - An independent business can make changes in terms of products in order to benefit themselves as well as their customers. An example of this could be a better line of products to replace a not so well existing line. Franchise based businesses however don't always have this freedom as there are more people involved in the decision-making process.

- Disadvantages

- Financial risk – The financial sources required to sustain a business can be substantial. Proprietors tent to commit most of their savings or even falling into debt in order to begin. If things don’t go well, the proprietor may face substantial financial loss. Also, there is no guaranteed income to begin with. There might be times, especially in