Business Plan:Customer Satisfaction is Our Heart

Business Plan:Customer Satisfaction is Our Heart

Executive Summary

Hynec Technologies is a start-up e-commerce company that has a diverse product portfolio of high-quality. The company produces products such as premium furniture felt pads (8 large pieces) heavy-duty self-stick on cut to size floor protection 11.3* 15.3cm rectangle piece. Furniture felt pads large 8 set self-stick on chair pads floor protection, ultimate roller set comprising of a paint roller, brush and tray, and home paint kit are the other products. Besides, we have a cable management kit that consists of cable sleeves, cable ties and adjustable cable holders. The best-selling product for the company has been adhesive fell pads range. The firm utilizes Amazon marketplaces in selling its products since Amazon is among the top-performing e-commerce retailer company that offers markets for many sellers globally. Besides, Amazon provides storage handling, fulfilment product handling, and customer service on behalf of Hynec Technologies. The strategy has helped the company grow its sales revenue since its inception.

Market

E-commerce activities have witnessed a tremendous increase, and the trends seem to continue, especially at this time that the coronavirus pandemic hits the world. The epidemic has forced the majority of consumers to embrace online purchasing. The e-commerce industry has seen a boost to its business due to the outbreak, notably Hynec Technologies. More people are likely to shop products online instead of the physical stores as the movement of people is restricted. Hynec Technologies plans to utilize the situation and expand its production to prevent a crisis of lack of supply and maximize the sales revenue. Hynec Technologies products have successfully penetrated markets allowing the company to expand its product line.   Achieving sustainable growth requires the company is focusing on expanding production of the products and grow the sales of the products.   E-commerce has transformed, and its sales revenue has grown to $2 trillion. It is predicted that e-commerce. Generally, it is projected that e-commerce will continue growing due to technology, COVID-19, and the millennial generation. The United Kingdom has the largest market for e-commerce, with sales income of more or less 200 billion in 2019. The e-commerce industry is projected to expand as many retail shifts to online, and more “brick and mortar” retailers concentrate on establishing their presence online. The majority of e-commerce is in the United Kingdom with 73%, while the European Union has 16%. The trend has enabled our company to grow its sales and projects more expansion.

Products and Services

Hynec Technologies manufactures products consumer purposes. The products include premium furniture felt pads (8 large pieces) heavy-duty self-stick on cut to size floor protection 11.3* 15.3cm rectangle piece. Other products are furniture felt pads large 8 set self-stick on chair pads floor protection, ultimate roller set comprising of a paint roller, brush and tray, and home paint kit. We also manufacture a cable management kit that consists of cable sleeves, cable ties and adjustable cable holders. The company has a sophisticated supply chain through its partnership with Amazon FBA. The company has been cost-effective for the years it has worked with Amazon FBA.

Keys to Success

Hynec Technologies has excellent ways of achieving its goals. The business has established strategic relationships with Amazon to offer storage, product handling, and customer service. The relationship has been successful as the company is expanding its operations. The superior quality and competitive pricing of its products have contributed to the success of the company. Hynec Technologies operates in the United Kingdom and European Union markets that have a steady growth in the retail e-commerce industry. Moreover, the company has cultivated a culture of passion and technology innovation, which makes them offer premium products compared to its competitors.

Description of the Company

Naglis Stankaitis started Hynec Technologies in 2016, and previously it was known as N&L. The company’s headquarters are located in London, United Kingdom. It is a sole proprietorship form of business. The first product to be manufactured was the adhesive felt pads in assorted sizes, shapes, sets, and high quality. The product performed well, with its sales increasing, leading to the expansion of the product line to include other products such as home safety, floor protection items and cable management items. Also, the company successfully launched a new product; Home Decorating Kit Range, that has penetrated the market and obtained sales and is promising in growth. Currently, the business carries its business in manufacturing and retail and has a great vision that drives it.

Hynec Technologies’ vision is based on maintaining its commitment to creating better products for its consumers through innovative technology and high quality. Besides, the company has a highly optimized supply chain provides value for its products. Each process of manufacture is given the attention it requires. Moreover, customer satisfaction is the heart of Hynec Technologies. The business manufactures its products in China as there are available raw materials, and it is cost-effective. The firm is seeking funding for the expansion of its business operations. The company requires $ 5,000,000 for cash flow and purchase of stock to continue its long-term objective of growing the brand.

Management Experience     

Hynec Technologies has management experience of 3 years. The management has a well-drawn- vision and an innovative team that drives the achievement of its objectives. Since the company started, it has never experienced losses or a decline in sales revenue. The experience the management possesses has helped the company in formulating strategic strategies to achieve its corporate objectives. Its founder, Naglis Stankaitis, leads the team. Besides, the business has a fulltime freelance employee situated in China, for performing sourcing and production functions of the company. There is also a freelance staff based in the United Kingdom for running the retail services of the business. The staffs are passionate and very innovative, which contributes to the superior quality of the products the company manufactures and offers to its consumers at affordable prices. Also, there is high efficiency as a result of our partnership with Amazon FBA fulfilment helping the company minimize the storage costs. The team has experience in ensuring consumer needs are satisfied and look for ways to improve the quality of its products and to expand our range of products sustainably.

Financial Data

The business seeks expansion funds of $ 5,000,000  cash flow, increase the production and invested in the high performing products to help heighten its growth. The funds will be invested in phases of $ 2.5 million yearly, to ensure there are funds for a contingency plan. Besides, expanding the market share in the United Kingdom and the European marketplaces, where the company operates. The business projects a cash flow of $ 4,000,000 annually

The operational costs are as follows;

Equipment and Technology     $ 2,000,000

Human capital                         $200,000

Raw Materials                         $ 400,000

Marketing                                $ 100,000

Production Costs                    $ 300,000

Research and Development    $ 400,000

Total                                       $ 3,400,000

The current business assets stand at $ 500,000, and the liabilities are $ 200,000. The current assets and ratios with steady sales growth imply that the business in a good position to secure a loan of $ 5,000,000. The business is already established and will have little or no issues at all in servicing the loan.

Marketing Plan

Hynec Technologies applies various strategies in marketing its products to consumers. The business has entered into a partnership with Amazon Inc., which offers a marketplace for the products. Amazon also performs storage and product handling on behalf of the company. The collaboration has been useful as there have been steady and increased sales. Amazon helps in marketing products through promotional sales and advertisement on their website. Another strategy that Hynec Technologies employ is the use of google ads, which pops up when someone is searching for something on the internet.

The business anticipates employing other marketing strategies such as advertising on social media platforms for appealing to the new consumers and creating different market segments that are still untapped by the company.
Hynec Technologies major products are packaged as a set; this becomes more cost-effective to the consumers and is the most preferred products in the online retail market that offers value for the price. Amazon prime offers free next day delivery for Amazon Prime members free of charge, which provides Hynec with a consistent and high flow of customers as well as paid placement / PPC and marketing opportunities on their large platform.

Production Plan

The business plans to expand its current production capacity to increase the stock items, have adequate cash flow and grow the sales of its products to achieve optimum income and establish its brand.  There will be extra costs, which will be incurred to accomplish the expansion of the production. The company will develop various production facilities and source products globally to ensure a ready supply of the products and reduce the overall production costs. The increase in production and supply to the market will help the business breakeven expenses incurred in the shipping of the products to the consumers. The company also works with third-party manufacturing companies and various suppliers for the supply of the products. We increase our sales and profit by producing more products that are different and growing its range.

Human Resource Management

The business will manage its human capital virtually. The three employees work from home, and all freelancers are paid on a per-project completion basis which reduces risks and overhead costs of running a physical office.  The business will ensure it adheres to the labour laws of different countries where the business operates, such as the United Kingdom, France and China. The company attracts talented and innovative people in its team to drive the business vision. The firm encourages diversity as it anticipates expanding its operations globally. At the top management is the director of the business, who is also the owner. The director is responsible for formulating the strategic objectives and strategies on how to achieve its goals.

There is also an accounting firm responsible for managing the financial resources of the business.  The firm also advises the director on various investment projects and the risks implication. Besides, the accounting firm prepares the financial reports of the company, which are crucial for decision-making. There are two full-time freelance staffs based in China and the United Kingdom who are hired on a needed basis to work on specific projects to optimize our costs and maximize profits. The staff based in China oversees the production, sourcing and shipment of the products to the United Kingdom and reports directly to the director. The other staff based in the United Kingdom handles marketing of the products in conjunction with Amazon FBA. Amazon handles all of the fulfilment, customer service and storage of the products. There are also factories and suppliers that supply the products to the company.

The organization Structure of Hynec Technologies

(Accountancy Firm)