A business plan for the start-up of a packaging technology supply company : Smiley Packaging / Stephen T. Tan

Year : 2006

Number of Pages : 35 leaves

Adviser : Dr. Elvira A. Zamora

Executive Summary

Business concept. We provide packaging equipment and materials. The mission of our business is to enhance the productivity of businesses through cost-effective packaging solutions. We intend to fulfill this mission by : offering products that generate the lowest total ownership costs, becoming a one-stop packaging supply source for generic packaging materials, targeting a specific market area (Laguna). The desire of the incorporators is to create a business model that would enable them to have greater involvement in evangelistic missions outreach, both directly (by becoming self-supporting missionaries), and indirectly (by financially supporting some full-time missionaries). With this in mind, the incorporators envision a company that would : be profitable enough so as to provide decent compensation for its employees, provide a "tentmaking" experience for employees, provide financial support for missionaries, establish a business model for "closed" countries. Current situation. The purpose of writing this business plan is to develop an overall business strategy and to establish better control and direction of the business. The company has been successfully registered with the Securities and Exchange Commission as "SMILEY Packaging Supply, Center, Inc." It has recently obtained its Business Permit to Operate from the city government of Sta. Rosa Laguna and its Certificate of Registration from the Bureau of Internal Revenue in Binan, Laguna. The following steps have already been completed as well : 1. Design of Corporate Identity (Corporate Logo, Business Cards, Letterhead, Envelope) 2. Printing of Sales Invoices, Official Receipts, and Delivery Receipts. 3. Printing of Product Brochure, 4. Opening of Bank Account, 5. Acquisition of Delivery Van. The next steps include the following : 1. Preparation of Company Profile.

1.3 Market Situation. The ongoing trend of corporations to downsize and outsource services such as post-production packaging of their finished products has led to a continuing demand for packaging equipments. While there are obvious differences including features, pricing, and other attributes from one firm's packaging materials and equipment to the next, the market has not become segmented. Each competitor is more or less competing for the same customer and each packaging material or equipment is overwhelmingly aimed at accomplishing the same function without significant competitive differentiation. While firms go to great length to promote their competitive differences, they still are basically competing within the same marketplace for the same customers. 1.4. Financial Needs. In order to effectively launch the business, we project a total need for in capital to get our business started and finance start-up negative cash flow that we anticipate will last for the first six months of operation. The sources of funds for the capital required have already been established. 1.5 Key Success Factors. The success of our business shall largely be a result of the following key success factors : our ability to source products that generate the lowest total ownership costs, our ability to prevent ourselves as credible distributors of good quality packaging materials and equipments, our ability to establish a customer base within our target market area (Laguna)