PERSIAN INTERIOR BUSINESS PLAN

Executive Summary

Persian Interiors is a proposed startup business that will provide comprehensive interior design services for offices and homes in Jeddah, Saudi Arabia. Persian interiors also seek to offer access to products that complement consulting services, which include decorator fabric, office, and home accessories. The venture aims to provide personalized solutions to the target market in a unique way, from conception to implementation. Market research indicates there has been a steady growing need for interior design consultancy products and services that Persian Interiors will provide to the market. A cost effective approach will be employed to achieve success in this clearly defined market. The Jeddah population is above 3.4 million comprising a significantly wealthy household that is conscious of the feel and appearance of their offices and homes (Haden, 2018)..

The strategy to promote Persian Interiors will be achieved by creating connections with key people in the community and also through referral bases once a strong network base of clients. Persian Interiors will focus on fostering solid relationships with potential customers by offering personal design solutions based on the customers’ budget, taste, use, as well as goals.  The value-based pricing, accessibility of products, additional selections, as well as superior customer experience will differentiate Persian Interiors from other players in the area. In the first year, total revenues is projected to exceed $46,000 with a loss. Profits will, however, increase in the second and third year, with revenues estimated to increase to approximately $90,000. (Haden, 2018).

Objectives

1. Generate an average of $ 3,000 of sales each month for the first business year, $5000 for the second year, and $6,500 for the third year.
2. Generate not less than forty- five percent of revenues from product sales and consultancy.
3. Build a commercial revenue customer base accounting for ten percent of total revenues.

Mission

Persian Interiors is an interior design venture for quality conscious and discerning clients that seek professionalism in their design choices for their offices, vacation homes, and primary residences. Customer segments experience provides attention through the design process as well as on the purchases of unique resources and products such as furniture, accessories, and fabric. The whole experience is packaged in a way to inspire, inform, and assist clients through the process of making their business or home environment to become a personalized and unique expression of themselves and their brand. The primary keys to success for Persian Interiors are based on providing the best quality interior design consultancy experience possible. Secondly, selling selected products to customers to meet their interior design requirements. Communicate to clients through personalized communication techniques and the website. Lastly, retain customer data to generate a stream of repeat customers and initiate more referrals.

Value Propositions

Persian Interiors provides superior interior design experience for offices and homes in the Jeddah area. The approach is unique through the selection of home accessories, antiques, and complementary products coupled with interior design consulting experience.

Channels

The traditional distribution channel will form the primary source of distribution. On a secondary basis, it will be achieved through the business website via phone call or email inquiries, or through the website itself.

Customer Relationships

Persian Interiors seeks to have an excellent relationship with customers so that they can generate repeat business as well as give new referrals. The nature of the market dictates the adoption of Co-creation method of the customer relationship. The venture offers personalized interior designed services, which involves customer’s inputs in every step of design and installation. It will, in turn, make customers have a more robust feel of ownership of that interior space and Persian brand.

Revenue Streams

The primary and secondary revenue streams for Persian Interiors include;

1. Generating Referrals: Creating a client network based on leveraging new contacts from former customers, professional contacts, and programs of the architecture firm.
2. Product Sales: Promotion of products available through Persian Interiors. Demonstration promotions and seminars will also come in handy. Cross-selling activities within office and home consulting will promote and achieve these higher dollar transactions.
3. Generate Revenue through the business website. Facilitating and communicating Persian Interiors services and products through the site will enhance clients’ awareness of the brand. Email inquiries and online payments will be initiated through the website.

Key Resources

Below the essential resources that Persian Interiors need to create value for our customers.

Website: A website helps ventures to portray their brand and reach more potential customers as well as partners. The company aims to have an E-commerce website which, apart from advertising the company brand, it also generates sales revenue for the company.

The phone of the office: A dial-up cable office phone is required to respond to clients’ inquires and concerns. The phone will also be used to contact potential leads to turn them to clients. Other service providers will also use the phone for communication with our company.

Transportation: Effective marketing calls for our team to be able to move from one point of the city to another. Customer products also need to be delivered correctly without damages, which call for a need to have a business vehicle to provide transport and logistics services.

Chat or email: Short messaging applications that out suppliers and clients use will also be used to communicate with them for their own convenience. Email is also a great tool to generate leads, and it will be incorporated to the venture website.

Storage Rooms: Sizable space is needed to store customer orders and displays for walk-in customers. The order of online buyers will, however, be chipped directly from suppliers to reduce the storage cost and increase the profit margin.

Fabric and Products: The raw materials will be sourced from selected suppliers based on the individual needs of each client.

Manufacturing company and people: Human capital is key in helping us transform our idea. Collaboration with manufacturing companies is key toward helping us discharge our duties and provide superior customer experience.

Key Activities

One of the key activities is the promotion. The promotion strategy focuses on generating referrals. Best sources of development include television advertisements, newspaper, email list, and the company website. Sponsoring Charities: Sponsoring is a two way street between business and charity. Clients are happy to share stories from a purpose-driven company to their social networks. Secondly, design and producing products and services. Persian Interiors focuses on offering interior design consulting. It also complements the service by providing specially purchased decorator fabric, furniture, artwork, and accessories for the clients’ space. Third, Interior design management. The approach to each project is personal to enhance the look and objectives of every project. Lastly, the business will act as also sale fabric and supply materials (Haden, 2018)

Key Partners

The first partner will be Suppliers. Our suppliers include ventures that provide furniture in special purchase arrangements, decorator fabrics, and drapery hardware and wholesalers. The second partner is the online marketing. The website blog and sponsored social media ads will form a basis for the online advertisement leads generation. The third partner is a marketing Company. Hire the services of a digital marketing company to help jump-start the venture into the future. The fourth partner is the sponsors. The initial capital is $26,000 and will be invested by the owner. Due to financial difficulties, sponsorship will help increase sales of the business and the Delivery companies. Logistics Company is vital in our business venture to help us with the last-mile delivery. Lastly, Web developers will also partner with us. To design, develop, and maintain the website.

Cost Structure

1. Managers. The business will be run by the owner initially to keep the costs low. With a salary of $1500 per month. It will project to $2300 in the second year and $3000 in the third year.
2. Experts. Payment will be done through contract labor.
3. Marketing
4. Employees or staff- No employees
5. Marketing and Promotions. Payment will be done through contract labor.
6. Logistics and transport. Payment will be done through contract labor and it will be added to the cost of goods.
7. Store maintenance. Payment will be done through contract labor.
8. website maintenance. Payment will be done through contract labor.

SWOT Analysis

The SWOT analysis below aims to capture both the strengths and the weaknesses related to the market analysis summary. It also describes key opportunities and threats facing Persian Interiors.

Strength

The tested ability to offer superior and personalized customer service.

Strong understanding with suppliers ,who provide flexibility and adjustment to special product requirements, of  the company.

Customer loyalty , which is established through a solid reputation by repeat, high-dollar purchase customers.

Good relationship with complementary vendors, architects, and local real-tors (Hunter, 2018)

Weaknesses

There are several weaknesses associated with the business. To begin with, the challenge of the seasonality of the venture. Any business venture is expected to have a low and peak season. Sometimes the business booms and sometimes there are few customers. It is usually a big challenge to businesses experiencing low seasons. The second challenge is that the business is not located at the market where there exist a number of design alternatives. Lastly, it is challenging to climb the learning curve associated with architectural design (Hunter, 2018).

Opportunities

There is a promising activity from new offices and home construction activity. A large segment of my target market is desperately looking for solutions that Persian Interiors will provide. The strategic alliance will offer a pool of referrals and joint marketing campaigns to extend my reach. The evolution of design trends can initiate a need for homes and office space update and therefore generate sales for my company (Hunter, 2018).

Threats

Prolonged price pressure due to competition and the weakening market caused by reduced contribution margins. Increase of products and services provided by other service providers, including discount stores such as Walmart, to the local market. The rapid change in the designs, which includes the fabric style and color, can present new challenges of keeping the pace between what is desired and what is expected to be a leading client base. Catalog players, including pottery Barn and calico corners with competitively priced fabric products including bedding, drapery, and slipcovers. This analysis shows a solid potential chance of success, but the threats and weaknesses have to be noted throughout the life of the business (Hunter, 2018)

Evaluation of the Course

As a learner, I realized insights from the course that are applicable to my future business activities. The most standing point to take home from the course is the business model canvas, how to use it in my startup idea, and why it is beneficial compared to a business plan. Unlike the traditional business plan strategy where the business owner has to write a long cumbersome to read business plan, business model canvas make things simple. The course taught me that, this new framework helps to put up the fundamental elements that you need as an entrepreneur in order to start making money by delivering value to your unique proposition. New ventures require focused approach on how they get their products and services to customers which a business model canvas provides.

Additionally, it provides business with a competitive edge to launch profitable ventures through product innovation as well as designing the business processes correctly. The course also highlighted that, BMC helps ventures to target customer needs. The major cause of startup failure is product-market fit as opposed to the product itself. Too much energy is focused at providing awesome product which later becomes a dying mantra. However, BMC helps you to envision forces beyond your product. Documenting every facet of your business gives you clarity even when you talk to your customers.

Furthermore, BMC also helps startups to reduce the risk of failure. Most startup founders have little experience in business. It is therefore necessary to have a model that provides you with execution steps required to take your product into the market. In conclusion, having a business model canvas puts you ahead of the curve compared to having a plain business plan. The nine steps of a business model canvas helps you to iron out and have a clear definition of your business. Putting focus in other facets of the business other than just product development gives you a competitive edge to start a profitable startup.

References

Helga, D.,( 2016). Architecture Firm Business Plan Sample – Executive Summary | Bplans. [Online] Bplans.com. Available at: <https://www.bplans.com/architecture_firm_business_plan/executive_summary_fc.php> [Accessed 30 March 2020].

Hunter, D. (2018). SWOT Analysis: – How To Develop A Strategy For Success. [online] Mindtools.com. Available at: <https://www.mindtools.com/pages/article/newTMC_05.htm> [Accessed 30 March 2020].

Haden, J.( 2018). How To Write The Perfect Business Plan: A Comprehensive Guide. [online] Inc.com. Available at: <https://www.inc.com/jeff-haden/how-to-write-perfect-business-plan-a-comprehensive-guide.html> [Accessed 30 March 2020].