Model Business Plan

 

 Synthesis of the business plan

 Synthesis of the business plan

In the context of an exponential growth in the field of civil and public constructions, especially the infrastructure that has led to an increase in the demand for specialized machinery and the increasingly demanding regulations in the field, the whole activity of the aforementioned trading company is subordinated to the commercial hose of hydraulic hoses high pressure of precision required by European standards in the field and crimping services. The principles that commercial company wants to guide are respect and trust, both towards our employees and our clients. The equipment and technologies that will be implemented represent a pioneer on the market of hydraulic systems services in Transylvania, as there are currently no such high-tech technologies in the area. We are talking about the multiCrimp system, an Austrian mark accredited by the Austrian Federal Ministry for Economic Affairs, the Accreditation, Surveillance and Certification Service. The business consists of a partnership with the mother company, which provides us with the equipment and a minimum stock of products, hoses and connectors multiCrimp. We also have a team of specialists from Austria.

Business description

 

The mission of the commercial company is to market high-precision high pressure hydraulic hoses and crimping services by continuously improving the technology to meet European standards while providing quality solutions to our customers over time real.

Using modern technologies

MultiCrimp technology. The patented multiCrimp Hydraulic System produces hydraulic tassels that handle the greatest load.

The special joining of the joints produces an absolutely secure connection with a pull-out and a longer lifespan.

Combined with the multiCrimp hydraulic hoses, we obtain hydraulic circuits, their performance far exceeds the market and the requirements of the rules in force.

The products are tested and certified – TUV.

The high quality of the components leads to a much longer lifespan of the multiCrimp high pressure hydraulic hoses – 12 months warranty.

Simple and safe handling also enables a non-specialist to manufacture high-pressure hydraulic hoses.

Other comparative advantages:

  • testing and certification – TUV
  • program 24 of 24
  • mobile workshop as needed

The equipment and technologies that will be implemented represent a pioneer on the market of hydraulic systems services in Transylvania, as there are currently no such high-tech technologies in the area.

Risk Analysis

In the design of the business, the following risk sources were identified:
I. Macroeconomic Factors
II. Market
III.Tehnologia
IV. Internal factors
I. Macroeconomic Factors – It is the influence that the general economic parameters, the business environment and the legislation can have on the business. From the economic projections for 2010 and 2011, although low economic growth is projected, inflation oscillations and tax regimes will not negatively impact the business for the following reasons:

  • It is estimated that investment in infrastructure will continue to be relatively similar to previous years;
  • the firm will have a guerilla strategy against competition in the idea of ​​attracting existing customers, respectively seizing the market already formed by providing a premium product or service. We mention that there are no similar products on the market at this qualitative level;
  • The company’s products are the first necessity in the efficient and constant use of a machine.

II. The market is a relatively low risk starting from the premise that the company will cover a niche not covered by the other suppliers – premium quality hydraulic products;
In the event that a competitor company appears on this niche, the company will have the advantage of the first entrant.

III. Technology may pose a risk to the extent that Austrian single supplier Styer Werner will not keep pace with product and technology innovation on the market. However, we believe that this risk is low due to the fact that Styer Werner pays special attention to innovation and has imposed itself on the market with products with a high degree of innovation and international certification.

IV. The risk of internal factors is mainly related to the staff and the managerial capacity of the company’s initiators. The low number of people scheduled for business management and development, ease of use of technology, and low learning curve, indicate a reduced staffing risk and a high capacity adaptation to crisis situations and its timely replacement in order not to affect customer service.

Market definition

Market definition

The geographical coverage of the service
The company will start its activity in the Aiud town, including Alba County, with the desire to expand in Transylvania after the first year of its activity. And starting with the third year, expanding its activity across the country. The way we perform our services allows staff to be moved to the various locations requested by customers, both in urban and rural areas.

Potential customers
Natural or legal persons whose appliances, machinery, equipment or installations are equipped with hydraulic systems. ex:

  • Romanian and foreign legal entities that develop infrastructure projects in Romania
  • passenger and / or freight forwarding companies
  • companies that use hydraulic system equipments
  • machinery and machines used in agriculture

Analysis of the current market stage – needs and trends
There is an acute need for hydraulic systems. In Alba County there are four companies that produce high pressure hydraulic hoses but none of them meet the standards of multiCrimp systems. These firms are non-standard, uncertified and offer no guarantees. Therefore, the trend of the market is exponential growth, while the need for services in this field is acute, given the developments in this field.

Forecasting market growth
Over the next five years, a doubling of the demand for products in the hydraulic system is foreseen due to the technological explosion, according to the latest statistical data provided by the Institute of Statistics. If until long ago the manuscript work was the solution of the man with modest incomes, he begins to realize that the time and the failure to perform the works on advanced technology, cost money, energy and time. The market is dynamic and even if the crisis still persists, investment in infrastructure is rising.

 

Romania has a rising economy and this is causing growth.

Define potential segments of the service market
The target segments are both individuals and legal entities.

  • the transport market
  • the construction market
  • the industrial market

Description of products and services
The investments targeted by this project are focused on the purchase of modern equipment and performant technologies, absolutely necessary for carrying out works according to the European standards.
In this way they will buy:
I EQUIPMENT:
Calibration tools – to reduce the external diameter of high pressure hydraulic hoses to the right measure.

  • Large and small presses – electro-hydraulic and buildings
  • Verification dangles – for simple control when pressed
  • Besides these we can also get:

– Cutting devices for diverting hydraulic pipes
– Supports for merchandise on rollers
– repair kits

II PRODUCTS:

  • Connections – close to any type of execution
  • Hoses – from multiCrimp are for a longer life

III SERVICES:

  • Criticizing service. All of these equipments are manufactured in Austria and provide access to Romanian clients through distribution networks implemented in major cities in Romania. There are no existing multiCrimp systems on the Transylvanian market.

Extending the range of products will be done with the following:

  • Quick couplings, taps, necklaces
  • Bearings, chains, gears
  • Gaskets, o-rings, belts
  • Protective equipment
  • Oils, lubricants

Marketing plan

Marketing plan

Strengths of the business, advantages over competitors
Equipments and technology are the engine of this plan:

  • the high quality of the components leads to a much longer lifespan of the high pressure hydraulic hoses multiCrimp – 12 months warranty
  • Simple and safe handling gives the possibility to a non-specialist to make high-pressure hydraulic hoses
  • testing and certification – TUV
  • program 24 of 24
  • mobile workshop as needed

Pricing policy

 

The company wants to practice prices that offer an optimal quality / price ratio. Our pricing strategy is a flexible one that allows discounts to loyal customers but without great fluctuations, taking into account the changes that may occur between supply and demand on the market. At the same time, consideration is given to the costs of rendering services under the best conditions so that its quality is not impaired.

Promote the service

Promote the service

Our products and services will be promoted mainly through the distribution of advertising materials (leaflets, brochures), electronic channels and, last but not least, the customer’s recommendations. The company will benefit from a website that will promote the company’s image and product market. The website will provide useful information to all those interested and will allow a direct transmission to our clients of our offers, offering the contact details for direct communication with our clients or potential clients.

Customer recommendations, satisfied with our services and prod ucts, will lead new customers to move to the workshop of the service provider. We have adopted this service distribution strategy because it ensures a slow but sustained growth in turnover and maintains high profitability.

Organization of the company and its management

Organization of the company and its management

The organizational chart of the company includes: the financial-accounting department, the production department and the sales department, each coordinated by a director, specializing in the field on which he operates.

Currently, the commercial company could work with 3 people. The company’s management is ensured by the general manager, who is also the company’s manager.
Financial-accounting deputy is entrusted to a specialized company. For the beginning, the sales department can start with one person. Another important department of the firm is deputy. production, subordinate to an engineer.