Engineering Economy Business Plan

               Engineering Economy Business Plan

                                      Name: Nithin Reddy Nallamadhi

                                                  WSUID-B449X392

                                              Industrial Engineering

                                                   BUSINESS PLAN

A Business will be successful when you have passion and creativeness for the work you are doing. In the present business market there are many companies which provide the appealing bikes. So it is highly competitive to outcome the other companies with innovative ideas which are profitable.

        The Business plan for the new company would be buying the used cycles for a low price and remodeling them with impressive look along with the attractive bike accessories. The majority customers are the students, so the main goal of the company is to sell the bikes for the affordable prices without compromising in quality. The students are the majority customers so they must be attracted by giving the student discounts.  This plan doesn’t need to invest much on buying the raw materials. So the company has to invest money on buying the used cycles from the customers, remodeling the bikes and advertising. The careful advertising is done in order to attract the customers and an online website is created in order to provide a platform for customers to sell their used bikes and buy the new bikes for a reasonable price. The remodeling is done without compromising in the quality as a new one in the market. Initially the business is started on the small scale as it requires more funding if we would establish multiple branches.

 In order to be successful business the company has to be success locally and then it could focus on the global participation. For any company the capital investment plays the major role for its establishment. If the investment is less the simple payback period would be less so that the company would be safe without running into losses. Some of the opportunities for attaining the investments are bank loans by mortgaging the personal assets or approaching the sponsoring companies for the innovative ideas. The funds were necessary for buying the old bikes, capital investment on equipment, labor cost, inventory cost and advertising cost. This can be written as

Funds necessary = capital investment on old bikes + capital investment on                          equipment + labor cost + inventory cost + advertising cost.

Every cost plays a key role in maintaining the company in the business without running into the losses. All the above costs should be maintained minimum in order to achieve the profits and get the payback. The project planning and developing is the key to be successful in the market otherwise it would lead to the market risk. The business fundamentals should be recognized and the business should be made adaptable to the changing scenarios to be sustainable I the current market.