OFFER ELECTICAL TESTING SERVICE

Kế hoạch kinh doanh cung cấp dịch vụ thử nghiệm điện

International SEPT Program, University of Leipzig Business Plan: OFFER ELECTICAL TESTING SERVICE Name of Student: Dang Ngoc Vung Email of Student: vung_dlhy@yahoo.com SEPT ID Number: Matriculation Number: 11212119 Module Number: 102 Entrepreneurship Management Supervisor: Dr Utz Dornberger Date of submission: 31.07.2012 Table of contents Executive Summary Company’s Overview 2.1 Mission 2.2 Vision _6 Services Description _6 3.1 Offered Services _6 3.2 Future Growth _8 Sector, Market and Customer Base Analysis _8 4.1 Sector 4.2 Target Market 10 4.3 Market Size 10 4.4 Competition Analysis 10 Marketing Strategy _11 5.1 Marketing Mix _11 5.2 Market Entry Strategy 13 5.3 Brand _14 Management and Organization _14 6.1 Location of the Company _15 6.2 Legal Status 16 6.3 Organizational Structure 16 6.4 Facilities and Operative Resources 18 Financial Planning 20 7.1 Monthly Salaries 20 7.2 Investment Requirements _20 7.3 Cash Flow Monthly Base _21 7.4 Cash Flow Yearly Base _23 7.5 Profit and Loss & Sales Forecast _25 7.6 Cash Flow Graph 27 7.7 Profit and Loss Graph _28 Appendix _29 Executive Summary Hung Yen is known as a local in the northern key economic sectors with a series of arteries run through like the National Highway 5A, Highway 39; abundant human resources In order to a manufacturing company works efficiently and growing, besides factors such as: people, raw materials for production, production grounds, the legal environment of local, infrastructure the problem that make sure continuous stable in power supply and power systems and production lines to operate reliably is a vital element of the manufacturing companies Because, if the electrical system is damaged or incident, the plant will stop all production activities cause major damage to businesses This is precisely the detected necessity by the founder of the Truong Giang Trade Service Technical Co, Ltd (TGTSTC), a new‐creation company which focuses to provide three main services, include: Supply the testing service of electrical systems; Troubleshooting electrical systems; Repair the electrical system after testing to all manufacturing companies in Hung Yen province and other nearly Hung Yen province Thanks to the years of experience gathered by the founder of the TGTSTC in the field of testing electrical systems related three main services that company will be offered aimed: - To comply strictly with procedures and regulations prescribed by the state - To reduce production costs to both national and foreign manufacturing companies; - To know clearly operational status of the electrical system so it is actively planning the company's production plan - To detecte and replace in time the electrical equipment that not standard in the power system and the production lines - To deal promptly with problems in power supply also contribute to reducing production costs caused by power outages - To improve the life of electrical equipment in particular and in general the production lines contribute to reduce investment for production One of the main reasons of success for the TGTSTC is the low competition in the field as well as the extraordinary attractiveness of Hung Yen city for manufacturing and services companies, considered as one of the most growing areas in Vietnam; all these factors create the most adequate conditions to attract new investors in the zone In addition, the TGTSTC will be composed of eight professional executives with a background on technical, economic, administrative and legal areas, as well as useful practical experience, remarkable factors that contribute to the success of the Company In terms of Finance, during the first three years of projected operations, the Cash Flow analysis shows always positive numbers, ending in Year with more than 2,9 billion Vietnam dong, with an investment of 2,4 billion Vietnam dong only in the first year for the whole project; the Profit & Loss analysis always positive numbers during the first three years of projected operations In summary, the birth of the Truong Giang Trade Service Technical Co, Ltd promises a successful professional future for the participating personnel, an elevated profit for the capitalist investors and professional and high quality services for the customers Company’s Overview The Truong Giang Trade service Technical Co, Ltd, will be created in Hung Yen city, Vietnam The Company will be entirely composed of private capital, primordially from three Shareholders who will work in the Company as well 2.1 Mission To provide our customers with three main services aimed to reduce their production costs: Supply the testing service of electrical systems; Troubleshooting electrical systems; Repair the electrical system after testing 2.2 Vision To be the best option for electrical system testing of consulting services support, start‐ups advisory and private‐partner Consultancy Company, offering its services under the highest quality standards to plants, factories, companies, production in Hung Yen Province and the northern provinces of Vietnam Services Description 3.1 Offered Services The consulting company plans to offer three main services, as a separately for plants, factories, companies: Supply the testing service of electrical systems; Troubleshooting electrical systems; Repair the electrical system after testing In addition, before contracting our services, the customer receives automatically the following services in free: Consultants use power-saving, efficiency in production Consultants use of electrical equipment, production line power saving Advisory cycle testing, production line maintenance, electrical equipment 3.1.1 Supply the testing service of electrical systems: Each factory or company have power supply systems and production lines of certain products Power to provide for all activities of production of the plant and company Entire production plan of a factory or company depends greatly on the situation of power supply operation of the plant as well as the operation of production lines of the machine For the situation of power systems and production lines of the factory or company, how the plant or company need to hire a consulting firm to the electrical testing to determine system and conclude power systems as well as production lines or plants of the power company is now like 3.1.2 Troubleshooting electrical systems: During production of the plant, the plant occasionally to stop work due to accident or incident power system production line At such plant or company to hire consulting firm to handle such incidents 3.1.3 Repair the electrical system after testing: After testing electrical systems and production lines for factories or companies will discover the elements of the electrical system not to operate standard Meanwhile the companies will hire consultants to carry out repair of non-standard equipment 3.1.4 Consultants use power-saving, efficiency in production: In Vietnam and other countries in the world, saving electricity in the production of the company are important issues therefore our firm advises clients that use the power and efficiency savings 3.1.5 Consultants use of electrical equipment, production line power saving: Today, many manufacturing lines using outdated energy-consuming, thereby reducing competition in the market as well as provide low efficiency in production Our company is responsible for advising clients select lines and electrical equipment consumes less power 3.1.6 Advisory cycle testing, production line maintenance, electrical equipment: The power supply system as well as the production lines of the plant, not done simultaneously test all electrical equipment that each line of electrical equipment in a test cycle is different So our company to advise customers of each test cycle power equipment, in order to reduce costs for the plant 3.2 Future Growth At the first stage of the company, only three services plus the additional services will be offered (Supply the testing service of electrical systems; Troubleshooting electrical systems; Repair the electrical system after testing); however, eventually new services could be developed and added, depending on the requirements of the customers and on the market opportunities, but that’s something to be developed once the company is fully operative and able to detect the market opportunities related to its core business As a result, the immediate growth of the company may be measured not in terms of the number of different services, but in the range of the offered services; this means that the Company want to increase its level of participation among different provinces in Vietnam During the first stage, the company will be only focused on Hung Yen province which is one of the most dynamic province in Vietnam in terms of attracting national and foreign direct investment In the second stage, the Company contemplates to expand its operations to the the northern provinces of Vietnam, but always considering the market demand Sector, Market and Customer Base Analysis 4.1 Sector The company will belong to the sub‐sector of Consulting Companies of the Services to the Industry Sector, because the main target‐market of their services are the manufacturing companies This classification was given by the Department of Planning and Investment of the provinces The following chart provides a general overview of the sector: Services to Industry Sector, Sub‐sector Consulting Companies General Overview Characteristic Situation Medium number of companies, mainly multinational and Size local firms well positioned from many different consultancy areas (i.e fiscal, real estate, accountability, legal, relocation, etc.) Low growing sector, due to the high level of Growth specialization of knowledge of the companies as well as to the recent financial crisis Medium to high level There are not high expenses on assets or infrastructure; the entry company must prove that is an expert on its field by providing excellent Entry Barriers services and deep knowledge on the area, aiming to generate a positive reputation which can lead it to a high position in the market; it is also difficult to find customers at the beginning phase due that there is no previous professional experience with other companies Low, due that the operation of the company doesn’t require too much investment in assets or infrastructure; Exit Barriers the main problem is to provide a bad service, because it causes a bad reputation through the mouth to mouth publicity, both for the personnel as well as for the company itself Trends Due to the actual Trends Due to the actual financial crisis, the demand for consulting companies may be affected and diminished Source: Own Compilation, 2012 4.2 Target Market The market target is divided into Primary Target Group and Secondary Target Group; the first one refers to foreign manufacturing companies interested to invest in Hung Yen, and the second group is those Vietnam manufacturing companies who want to receives the services during manufacturing in Vietnam 4.2.1 Primary Target Group In Hung Yen province there are 218 foreign manufacturing companies with the investment was USD 1.969 million 4.2.2 Secondary Target Group In Hung Yen province there are 757 domestic manufacturing companies with the investment was 50,000 billion VND 4.3 Market Size All foreign and national companies interested to invest in Vietnam have to contact the State Governments of the locations where they want to investment; as a result, this is the main source of information to determine the market size 4.4 Competition Analysis The company will be determined from to companies in direct competition (Northern testing electrical company, Hung Yen power company, Ha Noi power company) but only of the company will take market share provides great service, because: - Free consulting company for customers before signing a contract to provide services (Consultants use power-saving, efficiency in production; 10 etc Department Languages: English, Vietnam (mandatory), other desirable Age: 24 ‐ 30 Gender: Indistinct Education: In-depth knowledge of electrical specification, Experience: Electrical Technical, procedures, regulations, standards, Staff of Technical etc Languages: English, Vietnam (mandatory), other desirable Department Age: 24 ‐ 30 Gender: Indistinct Education: In-depth knowledge of electrical specification, Experience: Electrical Technical, procedures, regulations, standards, Staff Technical Department of etc Languages: English, Vietnam (mandatory), other desirable Age: 24 ‐ 30 Gender: Indistinct 6.3.3 Organizational chart 6.4 Facilities and Operative Resources The following Operative Resources will be required for the operation of the Company: Office space for eight to ten persons in well located area; Office Equipments (i.e Personal Computers, Fax, furniture, scanner, coffee machine, etc.); 18 Vehicle During the first phase of the Company, the personal vehicles of the Shareholders will be used, with future plan to buy vehicles to fulfill three services Testing equipments: (i.e Megommet, Terromet, MOM200, AC/DC 120/130kV, Relay test kits etc.); The detailed information on investment and equipments is located in the Financial Plan file; however, in this document is presented some of the main resources the Company will acquire for its operation: Office in Hung Yen city Main office equipment Specialized Vehicles: transport testing equipments Honda CRV: passengers Testing equipments 19 Financial Planning All financial analysis and reports are calculated in the file “Financial Plan” (i.e Investment Requirements, Fixed and Variable Costs, Sales, Profit and Loss analysis, Sales Forecast, Depreciations, Cash Flow and Salaries; however, the most important information is annexed to this document: 7.1 Monthly Salaries No Position Annual Increase Year of Incorporation Brutto Salary Benefits(20%) Net Salary l Shareholder 15,000,000 3,750,000 11,250,000 10% Month 1/Year Shareholder 15,000,000 3,750,000 11,250,000 10% Month 1/Year Chief of technical Department 12,000,000 3,000,000 9,000,000 10% Month 2/Year Staff of technical Department 8,000,000 2,000,000 6,000,000 10% Month 2/Year Staff of technical Department 8,000,000 2,000,000 6,000,000 10% Month 12/Year Staff of technical Department 8,000,000 2,000,000 6,000,000 10% Month 12/Year Chief of business Department Chief of finance & accounting Department Exchange Rate: $1=20,875.00 VND 12,000,000 3,000,000 9,000,000 10% Month 12/Year 12,000,000 3,000,000 9,000,000 10% Month 2/Year Personel will be increased according to the increase of the demand, as shown in the Sales Forecast and Profit and Loss Analysis 7.2 Investment Requirements Investment (VND) Monthly/Year1 Year Investment (VND) 300,000,000 2,400,000,000 1,800,000,000 3 100,000,000 TOTAL INVESTMENT 2,400,000,000 FOR PROJECT 20 ... of Vietnam Services Description 3.1 Offered Services The consulting company plans to offer three main services, as a separately for plants, factories, companies: Supply the testing service of... only three services plus the additional services will be offered (Supply the testing service of electrical systems; Troubleshooting electrical systems; Repair the electrical system after testing) ;... be the best option for electrical system testing of consulting services support, start‐ups advisory and private‐partner Consultancy Company, offering its services under the highest quality standards