Business Venturing

Tutorial 5: Group 4 Page # 1

HeriotWattUniversity–DubaiCampusBusinessVenturing–C19BVBusinessPlan


BusinessPlanCoverSheet StudentName: HadiaJamilMuradStudentID: H00172447CompanyName: JackofAllTradesCourse: BusinessVenturing–C19BVTutorialGroup: Tutorial5–Group4

Weconfirmthat theworksubmitted isourownorthat it reflectsmycontributiontoagroupsubmission.Thesubmissionisexpressedinourown/thegroup’swords.Anyusesmadewithinthisworkofthewritingofotherauthorsorofanyexistingsourceisproperlyacknowledged,andalistofreferencesusedisincluded.TheUniversityEthicalCodeofPracticeandtheSchools’guidelinesonplagiarismascontainedwithintheSMLhandbookhavebeenunderstoodandfollowed. TeamSignatures: HadiaOwais H00172447 _________________________________

MohammadOwais H00168126 _________________________________

MeghaKamath H00169826 _________________________________

SankalpOberoi H00172861 _________________________________

NikhatSiddiqui H00171899 _________________________________

AjinkyaTanpure H00173694 _________________________________


Table of Contents

Executive Summary.........................................................................................................5

Company Overview..........................................................................................................6Mission Statement .............................................................................................................................. 6Vision Statement ................................................................................................................................ 6Objectives of JOAT ............................................................................................................................ 6Features of JOAT’s Service .............................................................................................................. 7Value Proposition of JOAT ............................................................................................................... 7Proprietary Rights JOAT ................................................................................................................... 8

Market & Industry Analysis............................................................................................9Trends ................................................................................................................................................. 9Target Markets ................................................................................................................................. 10Competitive Analysis ........................................................................................................................ 10Strategic Group Map Analysis ........................................................................................................ 12External Enivironment – PEST Analysis ....................................................................................... 12Opportunities for JOAT ................................................................................................................... 13SWOT Analysis ................................................................................................................................ 14

Customers & Value Proposition....................................................................................16

Marketing Strategy........................................................................................................17Target Market Strategy .................................................................................................................... 17Channel Strategy ............................................................................................................................. 17Positioning ....................................................................................................................................... 18Communication Strategy ................................................................................................................. 18Sales Strategy ................................................................................................................................... 18Advertising & Marketing ................................................................................................................. 19Pricing Strategy ............................................................................................................................... 21Price Breakdown Structure ............................................................................................................. 22

Operations Plan.............................................................................................................24Operations Strategy ......................................................................................................................... 24Service Process Layout .................................................................................................................... 25Floor Map Plan ............................................................................................................................... 26 .......................................................................................................................................................... 26Time Management of the Process ................................................................................................... 26Employee Resource Allocation ....................................................................................................... 27Scope of Operations ......................................................................................................................... 27Key Vendors & Suppliers ................................................................................................................ 28Exit Strategy ..................................................................................................................................... 29

Management Team & Company Structure...................................................................30Organizational Structure ................................................................................................................. 30Roles & Responsibility ..................................................................................................................... 32Recuirtement & Salary Costs .......................................................................................................... 33

Resources.......................................................................................................................34

Risk Management..........................................................................................................35Possible Risks & Risk Mitigation .................................................................................................... 35

Key Milestones...............................................................................................................37


Gantt Chart ...................................................................................................................................... 38

Financing.......................................................................................................................39Funding Sources .............................................................................................................................. 39Financial Plan ................................................................................................................................. 40 .......................................................................................................................................................... 42Startup Costs Breakdown ................................................................................................................ 42Income Statement for 3 Fiscal Years .............................................................................................. 43Income & Expenses Breakdown Structure for Year 1 ................................................................... 43Break – Even Analysis ..................................................................................................................... 45Balance Sheet for 3 Fiscal Years .................................................................................................... 46Cash Flow Statements for 3 Fiscal Years ....................................................................................... 47

Reference List................................................................................................................50

Appendix........................................................................................................................52Sample Quotation from Suppliers ................................................................................................... 52Brochure .......................................................................................................................................... 54


Executive Summary Jack of All Trades (JOAT) is a photo booth service aimed at school, university events along

with private events that allows customers to print their photo booth pictures on their desired

product. The products offered by JOAT are Instax pictures, T-shirts, magic mugs, key

chains and phone covers. Green screens and various different props are provided to give the

customers a good variety.

JOAT will be owned by a group of 6 entrepreneurs: Ajinkya Tanpure, Hadia Jamil, Megha

Kamath, Mohammad Owais, Nikhat Siddiqui and Sankalp Oberoi. Each of these individuals

possess necessary skills and have experience in different fields, which will be used to start

this venture. Apart from the 6 individuals, 6 more professional employees will be hired to

use their expertise in order to give the customers the best experience.

JOAT offers quick service to its customers according to their needs, using high-end

technology and expertise skills where different terminals will be used to offer the end

product to the customer. We aim at leading in the entertainment industry by delivering, a

unique experience to customers which they can remember for a lifetime. There are several

photo booth companies but JOAT prints out the photo booth picture not only in Instax

pictures but from a wide range of different products, between 2 to 15 minutes.

A warehouse in Al Quoz will be used for storage of the equipment, supplies and resources.

JOAT will also be available through social media. Traditional marketing along with social

media marketing methods will be used throughout to make the target markets more aware

about the services that are offered in order to create brand loyalty.

Total startup costs for the venture will be which AED 303,500 will be invested by the 6

individuals. In the future, a bank loan may be considered.


Company Overview

Mission Statement

Our organization strives to capture unique and unforgettable experiences at university

events and private parties with the best photo booth rental and printing services on your

choice of memorabilia.

Vision Statement

Our main focus would be to ensure that the vision of your desired event comes to life and

your memoirs to be recorded every step of the way. We aim to diversify our services to

different events and become the one stop rental company for all events in the UAE

offering quality and flexible services.

Objectives of JOAT

- Provide the best and highest quality of service for our customers to remember and cherish.

- Maintain a fun and exciting yet ethical and environment friendly atmosphere at events.

- Developing and enhancing the JOAT Brand Name along with new innovation strategies

and addressing new perspectives.

- Appreciate competition and encourage ourselves to strive for excellence and get even more

strong.

- Generating and increasing stakeholder value.

- Encouraging leadership and opportunities for young talent through great business

partnerships.


- Growing with JOAT as an industry leader, not only in the UAE, but the GCC – Middle

East and later worldwide.

Features of JOAT’s Service

JOAT service’s foundations lies within the element of creativity, fun and capturing those

special and memorable moments. We capture these precious moments via a photo booth

whether you are at a university event, corporate function or a private party.

Our Photo booth comprises of various props and backgrounds to choose from. This can be

printed on a high resolution photo paper, an Instax, a shirt, a magic mug or even on your

mobile phone cover. Using the latest technology and under expert supervision, these can be

printed at different printing terminals.

Specialized Props and backgrounds can be ordered upon requests however a green screen is

also available. To ensure the processes are fast and flawless, separate printing terminals will

be present based on the nature of the item being printed.

Value Proposition of JOAT

The JOAT Company focuses its value proposition upon wishing to be the leading

entertainment and events enterprise in the industry. JOAT focuses its corporate culture on

delivering a unique, yet magical experience for all whether it be a school student, university

graduate or a CEO of a leading multinational.

Our employees interact and strive hard to ensure with all sincerity and integrity, that a client’s

event is not only memorable for them, but for us too. For decades’ people having been hosting

events and parties, however we tend to forget as time progresses. That is where JOAT ‘s

Photo booth service comes in and helps to capture these precious and magical moments which

can be cherished years later and throughout the lifetime.


We tend to provide these services with extreme operational excellence and efficiency in a way

that maximizes profitability and generates and increase share and stakeholder value.

Proprietary Rights JOAT

Legal Name: Jack of All Trades LLC. (Limited Liability Company)

Ownership: Hadia Jamil – 49 % Shareholder

Local Sponsor: 51 % Shareholder

License Type: Entertainment and Leisure Activities

Financial Information: Personal Investment: AED 480, 000

Additional Angel Investors if required

Intellectual Rights: No copyrights or trademarks as such.

Technical Documentation: Memorandum of Associations, Articles of Association and

further Legal Documents available in Appendix.


Market & Industry Analysis

Dubai’s event management industry has been estimated to AED 165.15 million in the first

6 months of 2013 with growth being 25% in the entertainment sector (Emirates 247, 2013).

Due to the constant increase in tourism and events organized, the UAE market has a lot of

scope for growth. Events like GITEX, GETEX, Gulf Food etc. allow for a good growth

prospectus for JOAT. By participating in big events like these, it would allow for an

increased consumer base and moreover market our company on a larger scale

Trends Photo Booths have become one the trendiest additions to the corporate and private events

in this generation. It has become popular in events such as weddings, proms, birthday

parties etc. as we all know that photo booth is not just an ice breaker, it allows the guest

to enjoy to the fullest (Weisberg, 2011). Capturing candid photos lets everyone cherish

their moments. There are numerous trends which keeps on changing as per the demand

of the consumers in different events; InstaCam photo booth is one of them which creates

a photo which looks just like the Instagram post, it allows the customer to customize the

photo however they want and print it on the spot from the kiosk. Now the question is

“who does not like a good selfie?” our photo booth has a selfie mirror instead of cell

phones which has been replaced so it can capture a picture-perfect selfie. One of the

most happening act for most of the parties is a personalized phone cases which attracts

almost all the age group from youngsters to the oldies. People who appoint photo booth

for functions like anniversaries have a themed party such as Brides maid or classical

literature related to movies like Alice in Wonderland.


Target Markets

Competitive Analysis

Below are mentioned, JOAT’s main competitors and rivals

1. Studio 94 (iBoothME)

They provide an extremely professional service with high quality products and great

solutions to their customers. Located in JLT, they have multiple types of photo booths

with prices ranging from 3500-4000 AED for a minimum of 3 hours and 800 AED for

each following hour (Studio94, 2016). However, they do not provide unlimited prints

and free transport of their equipment. In terms of service and equipment they would

be our main competitors but when all the costs are added up, Studio 94 turns out to be

quite expensive for the average university student

2. Photo Booth UAE

They do not provide a large variety of photo booths like Studio 94 but have better

pricing options and provide unlimited prints, a CD with all the photos at the end of the

event and a customized special template design. In terms of costs they are quite

flexible with an option for 2 hour sessions and free operators for the equipment. Cost

JOAT’s Target Markets

Students

- University Students - College Students - School Students

Private Inidividuals

- Birthday Parties - Celebrations

JOAT’s targets customers and individuals aged between 16 – 25.


for 2 hours is 3000, 3 hours is 4000 and AED 750 for every additional hour

(Photobooth UAE, 2016). This is again quite expensive but much more economical as

a lot of their services are included in the cost.

3. The Party Box

They provide the highest degree of customisation with options like customised image

frame & interface design, props and instant image email. Additionally, they also

include unlimited prints, drop-off & pick-up of the equipment. But, only two types of

photo booths can be provided which cost 2000-2200 AED for 3 hours and 400 AED

for every additional hour (Party box, 2016) whereas, JOAT has several different

packages which are shown in the appendix.

4. Smile Corner Photo booth

A small company with photo booths based around iPhones. Not very professional but

extremely economical as they charge only 600AED. They do not use an actual photo

booth as the other companies and thus manage such a large difference in the cost.

Also they do not have a website and are Facebook based. The cost is AED 600 for

two hours with unlimited prints and they also provide props and lighting. In terms of

cost they would be our main competitors as their price is affordable to the average

university student.


Strategic Group Map Analysis

External Enivironment – PEST Analysis Political – Each country has their own set of rules and regulations that are to be followed

the by the people residing there. Rules, regulations, trade and labor laws affect the setting

up of any business. JOAT will be located in the industrial area of Dubai. As UAE is a

politically stable country, it is a major attraction for entrepreneurs. The legal regulations

are very well organized and defined so it makes it easy for establishment of our

company. UAE also protects intellectual property and as our business has not been

introduced in the UAE so far.

Economical – Economic factors are an impacting factor for any business. These can

differ from how the economy is performing or how the disposable income of the


consumers is. Apart from oil, tourism is a major contributor to the revenue. The

entertainment industry is one of the biggest and ongoing industries in UAE. ‘There are

no direct taxes on corporate profits and personal income thereby making Dubai a viable

place to invest in’ (Ferris-Lay, 2011).

Social – By analyzing the social factors, a business can understand the needs of their

customers and the needs of the market. As UAE has a lot of expats, JOAT can provide

various types of photo booth backgrounds to every customer requirement. Different

events like weddings, birthdays etc. can be made according to what is suitable for the

customer.

Technological – JOAT believes in keeping up with the latest technological changes that

surround us. By using the equipment for printing our products we can make the work

more efficient and effective. We will be using social media to advertise our company and

get the attention of a large audience.

Opportunities for JOAT

The most fundamental process of a company is the recognition of an opportunity. It is

the duty of the management team to recognize the possibilities in the marketplace by

initiating a unique idea or by improving the already existing firm (Shrestha, 2015). The

opportunities for JOAT have a chance to expand our company, due to the nature of

business as the service can be provided at any place. Market potential is high, as students

have to travel to the market place looking for such services, this is where we come in and

provide them with those services within the university premises or any area for that

matter. Our products and services are durable and low priced so it is affordable for every

targeted group of consumers. Our company’s aim is to provide better quality products

which lasts long by minimizing the cost and increasing the profit. There are a lot of

companies competing with us, we have the opportunity to enter the market place due to

the unique and high quality of product and services provided to the clients, thus it will

help us build positive word of mouth. We believe that it will help us increase our cash

flow after numerous events. Creating strategic relationships with schools, universities,


wedding and party planner, facility managers of banquet will help us sustain growth for

long term basis.

SWOT Analysis According to Harmon (2015), SWOT Analysis of a company is used to analyze the

external and internal issues identified by the managers and the team, which directly affects

the future performance of the company. Utilization of SWOT will help us improve the

growth of strategies in various areas to sustain the profit and learn about our competitors.

Strength:

Value Added Services, there are quiet a few photo booth companies which are rented

who provide services below par, this gives us an advantage of limited competitors. In the

marketplace, there’s an advantage to compete due to exceptional client services being

provided that adds up values to the clients’ event. Our targeted group of consumers

includes people of all ages, giving them a variety of products to customize and print

pictures on the spot. Our strengths also include the mobility of the photo booth, which

allows us to place it anywhere without any struggle on a temporary basis, and can be

moved by anyone. Our aim is to satisfy the needs and wants of the people by proving

them with the best quality of the products and services at low cost. Thus, it gives us a

high gross margin.

Opportunity:

The opportunities of our company is; there is a high market potential to provide services

to the students within their premises. We provide low cost products, which is durable and

affordable for our targeted customers. JOAT aims to provide long-lasting and better

quality products that will help us gain profitability by minimizing the cost. Due to the

unique and high quality of our products and the services, there is a chance to grow higher

than the already existing companies. This will help us increase our cash flow. Our

strategy is to create relation with schools, party planners etc. to sustain growth on a long-

term basis.


Weakness:

Our weakness can be that our competitors will find it easier to offer similar kind of

products to the consumers quickly. Entrenched competitors who already have a well

established company in the market place would have a strong relation with the clients. In

the entertainment field, photo booth does not have a well-known reputation. There is a

limited flexibility in pricing and high transportation cost included. A low obstacle to

entry includes a low capital to start, whereas it is easier for the new competitors as they

have networks to sell photo booth rental services to the ones that already exist.

Threats:

There is growth in this industry but it is more important to be in control. Avoiding the

purchase of the equipment that is not in demand so that there is no excess inventory.

Competition always rises in every industry; this tends to undercuts our prices. Perhaps if

we have a strong relation with the client, there wont is any need to worry about them

overlooking another firm for a lower price being provided to them. Since there’s a

change in the trend every now and then, it is important for us to analyze the environment

and be up to date about the changes being taken place and the needs and wants of the

clients. Regulation keeps on changing which has a chance to affect the business.


Customers & Value Proposition

JOAT is considered as one of the only company in the gulf to offer exciting packages,

which is appealing to the customers at reasonable prices. Initially, our management team

would go through a brainstorm session on a daily basis on how to satisfy the needs of the

customer. Our customer value proposition is simple as we avoid compromising on our

products quality, we have invested in one of the best machines, giving us good results

and the props which will be more suitable according to the theme and keeping a track on

what is in trend. It is important to educate the customers about the new product entering

the market place and is positioned to convey value to the party planners. JOAT being the

only company willing to provide any themed photo booth service professionally. Not

many people have heard about the photo booth but in this part of the world it has become

a “showstopper” at several events.

Additionally, services provided by us include various other things like:

1) Due to high market potential, we are always available at their premises.

2) Customer’s value is high; as great service will be provided to them.

3) On-the-spot production process.

4) Our professionals easily do picture customization according to the customers will.

5) Any themed setup is possible.

6) We do no compromise on the quality of the product.


Marketing Strategy

Target Market Strategy • JOAT makes use of a concentrated or niche marketing strategy where our target

market comprises of students between the ages 16-25.

• JOAT aims to concentrate and understand the needs of consumers in this age

range (school and university events and private parties hosted by students) as most

of our competitors aim their marketing strategies to mass market.

• We find that our consumers within this age group are often neglected or market

prices for photo booth services are too expensive for this segment, therefore,

JOAT uses a penetration pricing strategy to attract their target market.

Channel Strategy The channel strategy is how the product reaches its final consumer. There are various

channels of distribution which involve middlemen such as, wholesalers, retailers,

agents, etc. to engage with their consumers effectively. JOAT offers its consumers with

the final product directly, without the hassle of any intermediaries.

Producer Consumer


Positioning • Positioning is the process that a firm undertakes to market its brand distinctively

compared to its competitors.

• A positioning strategy would involve highlighting the differentiated features and

image of a brand through successful advertising.

• JOAT proposes to position its product and services as speedy inexpensive

specifically to a student consumer base.

Furthermore, JOAT allows its consumers to print their photo booth pictures on

their choice of memorabilia; instax pictures, mugs, phone covers

Communication Strategy • A communication strategy aims to assist an organization in communicating with its

consumers and accomplish organizational goals.

• In order to have an effective communication strategy, JOAT will constantly

examine the strengths and weaknesses of different channels it uses and improve the

quality of its messages to its target audience and attempt. Ex) Communication

through social media, PR and press plans.

• JOAT will further adapt to the changing needs of their targeted group and

implement the appropriate methods to communicate with them.

Sales Strategy Sales strategy is defined as an approach that is used by organizations to sell its

products and services to its target market (Beck, 1989).

• Personal selling is one way most firms adopt in order to generate high sales.


• Quick service will be provided to satisfy the customers demands, along with a

range of options for each event.

JOAT will provide its consumers with a 5% discount on the first hour of the event

if they have come through a referral that we have identified. This will form the

basis of one of the marketing regimes we will use to boost our sales.

Our main aim is to foster a fun and friendly atmosphere at each event. In order, to

do this JOAT will ensure to hire and train our staff on their service attitude and

professionalism. At the end of each event, JOAT will conduct a small survey to

attain feedback and improvise on their overall customer experience.

JOAT will also provide a 10% discount if reserved within one month of a

customers’ birthday.

Advertising & Marketing Media Advertising

JOAT’s advertising and promotional campaigns aims to attract the student population

in the UAE. In order to reach out to our target market effectively, JOAT will use more

of social media advertising, keeping in mind the interests and trends of our student

population. However, traditional media advertising would include on campus

advertising through; posters, flyers and university newspapers.

Social Media

Over the past decade research indicates that the growth of social media such as

Facebook, Twitter, YouTube, etc. has become a fundamental fragment in advertising

(Al-Deen and Hendricks, 2012). Over 90% of marketers have increased their publicity

through social media and this is what JOAT will abide by as well.


Through social media advertising, our organization will engage and connect with students

all over the UAE to raise our brand name and market our promotions. Our team of social

media experts will constantly design, monitor and further improve our brand profile

amongst the student population. Our use of social media and digital platforms will include,

Facebook, Instagram, Twitter and email marketing. Google advert fb daily advert service

At the end of each event, JOAT will email each consumer a digital copy of their pictures

taken in the photo booth. We will also make use of personalized hashtags catering to each

event for our consumers to find and have access to our portfolio and vice versa. This will

however, only be uploaded upon our customers’ approval. (Badreya, et.al., 2011, pp. 3-27)

The diagram below represents the the percentage of adults and their use of social media

over the last four years (Duggan, 2015).


Website

Through the use of a website firms can create market awareness about who they are and what

they offer (Catherine, 2015). JOAT will have an interactive website to improve our market

reach and provide a virtual catalogue on the goods and services we provide. The website will

also display sample images of previously catered events as well as different photo booth set

ups and our pricing strategies for each event.

Additionally, we will have a digital countdown for university events, birthdays, anniversaries

etc. on our website and social media tailored to the pictures and hashtags of our customer’s

preference.

Pricing Strategy JOAT will employ penetration pricing strategy where our company will offer low prices in

order to attract its target market away from its competitors. In our highly competitive

market, our competitors’ pricings range from 1000-1500 AED hourly for the rental of their

photo booth along with printing of instax pictures. JOAT distinctively provides its

customers with on the spot printing of photo booth instax pictures as well as printing on

other goods like t-shirts, mugs and phone cover stick-ons.


Our prices have been fixed after an extensive market investigation on our target market and

the charges they were ready to pay for each souvenir.

As mentioned previously mentioned, we would be focusing our products to 2 main target

markets, mentioned below.

Price Breakdown Structure Students

Photo booth Rental including Instax pictures AED 1000 per hour

T-shirts AED 40

Magic Mugs AED 20

Key chains AED 5

Phone Stickers AED 20

Students

- Cannot establish accurate demand levels

- Based on rental Hours - Printed Items can be

purchased on the spot Pricing Strategy

Private Inidividuals

- 3 Different Packages - Highly Customizable

Packages


Private Individuals

Private Individuals

Basic Gold Platinum

AED 1500 1-hour rental

Products worth AED 200 to choose from*





** (T-shirts, mugs, key chains, phone covers) which need to be informed about in advance


Operations Plan

Operations Strategy Since JOAT is an emerging market entrant, it is important to accept that competition

within the industry will be fierce and cut throat. Hence it is extremely crucial for the

managers and directors at JOAT to achieve the maximum levels of efficiency and and

productivity. First and foremost, it is crucial to keep inventory and storage costs to be at

their minimum. Keeping costs low will also affect the pricing strategy, which if kept low

will definitely be a competitive advantage (Jones and Robinson, 2012).

It is vital that our marketing operations are up to date with the latest trends that reflect

takes into account the online perspective of website as well as social media.

Flawless operation processes are required which includes the photography step, then

designing and editing on specialized software’s available and purchased by us, then lastly

printing stage. It is important to ensure that there are no halts in the machinery and

equipment available in use and constant monitoring and assistance is provided to all

members working. Pre-check are necessary 2 hours before the event commences. Also a

supervisor will be available at all times in case of any issue in order troubleshoot as well

as communicate with the client and ensure that the event or function is going as planned.

It is also important to ensure that layout of the Photo booth and the printing stations and

terminals are put out in the most effective manner and maximum space is utilized.


Service Process Layout

Printing Terminals 4 Different printing terminals based on the nature of the item being printed (Instax, T – Shirt, Magic Mugs and others)

The Photo Booth Where the pictures are taken along with the props and backgrounds.

Design & Edit Where the pictures are designed and edited and sent for printing.

Delivery Stand Where the Final product will be displayed and delivered to the customer.


Floor Map Plan

Illustrated above is the floor map plan, with the dimensions which helps to understand and

preview how much space will our photo booth use. And also shows the flow that the customer

will follow.

Time Management of the Process

In order to achieve high levels of productivity and efficiency it is extremely crucial to manage

time. Time management within a service process can be effectively accomplished by timing

different stages of the processes and establishing a fixed time it should be completed in. Experts

at JOAT have set time standards which will be monitored to ensure fast and flawless operations

throughout. Below mentioned are the time standards identified.


Description of Task Time Taken

Photography Minimum: 2 Mins, Maximum: 5 Mins

Design & Edit Minimum: 2 Mins, Maximum: 5 Mins

Printing

Instax Picture: 30 Secs to 1 Min

T Shirts: 5 Mins

Magic Mugs: 10 to 15 Mins

Key Chains: 2 Mins

Phone Covers: 2 Mins

Total Time Taken Minimum: 10 Mins, Maximum: 15 Mins

Employee Resource Allocation

Job Role Supervisor Photographer Designer and Editor Printing Delivery Stand

No of Workers 2 1 1 2 1

2 Supervisors would be required to evenly distribute the role of troubleshooting as well as

managing client and the crowd at the event. The main photographer’s role would be to take

pictures along with providing the props and setting up the backgrounds. The design and edit

expert would add the final touches to the pictures taken based on the type printing the customer

would prefer. 4 different printing modules are used as specialized printing is required along

with their specific equipment. And Lastly the delivery stand requires an individual to hand over

the product to the customer.

Scope of Operations There are various operational activities that will be required to be conducted before the start as

well as during the flow of the event.

Logistics and Supply Chain: It will be required for the driver to transport the equipment from

and to the warehouse and the event location. Also important to receive the stock (T Shirts,


Magic Mugs, Instax) from suppliers as well as other commodities such as wiring for the

equipment and ink for the printers.

Marketing Campaign: Along with the ongoing activities, our marketing department will be

constantly updating our website and social media to interact with the customers and create the

hype using techniques such as a countdown/timer for the event.

Ongoing Operational Activities: This includes the ongoing operations of the event including

the photography, design and editing, the printing and delivering the final product to the

customer. This scope also accounts for any unforeseen that may occur and requires immediate

and urgent attention.

Accounting and Finances: Account are required to be made maintained and all expenses will

be required to be recorded in the accounting management software available. Accounting

experts are required to be prepare the costing plan as well as budgeted expenses and forecasts

for the future.

Administration Activities: Important to administrate the organizations’ responsibilities and

roles i.e. Paying Salaries, Renewing Licenses and Leases and HR related issues within the

organization.

Key Vendors & Suppliers Below mentioned are few of the suppliers and vendors, attached with their respective quotation

in appendixes.

Emirates Apparel: Regarded as the largest B2B Supplier and distributor of plain shirts,

hoodies, tanks, polo’s and other products in the UAE as well at the GCC. Their reliability is

their biggest advantage and building a relationship will ensure flawless stock refurbishment and

economies of scale.

String’s International LLC: One of the only supplier of Magic Mug’s and Phone Cover

Stickers. String’s International competitive advantage lies within immediate delivery of the


products. That helps us to be prepared for any immediate demand requirements for the

customer.

Al Suwadi Computer Co. LLC: Established in 1985, Al Suwadi Computer Co. LLC is the

industry leader in computing, printing, ink and all paper related supplies. Al Suwadi will be the

supplier and distributor for all laptops, printers, the design and editing software’s and ink

cartridges for all printers as well.

Exit Strategy First Option: Acquisitions

The Concept of an Acquisitions, focuses upon selling the controlling interest of the business to

another individual or a business. Incase of any unforeseen circumstances, the first priority as an

exit strategy would be to offer the JOAT Brand to any another investor or entrepreneur.

Last Option: Liquidation

The last option that may be available upon disposal if someone is not interested in purchasing

the business. It will be required to sell of the inventory and the fixed assets of business.

Shareholders of JOAT may be personally be responsible to pay off any proceeds of debts and

creditors if required to.


Management Team & Company Structure

Organizational Structure

Driver Photographer Printers

Assistant to Printer

Managing Partners

Hadia Jamil – HR & Administration Head

Megha Kamath – Marketing

Head

Sankalp Oberoi – IT & Technical Head

Mohammad Owais – Supply

Chain Head

Ajinkya Tanpure – Finance Head

Nikhat Siddiqui – Resource &

Industry Expert

Supervisor

Designer & Editor


Managing Partners: The managing partners have come together with their skills and

expertise to work jointly to provide the best Photo Booth services in the UAE. All

Managing partners have taken over responsibility based on their qualifications and interest

and will be managing the different departments of an organization such as finance,

administration, marketing and logistics. (Narain, 1981)

The organizational structure of JOAT exercises a simple structure along with a

straightforward chain of command, to avoid miscommunications and achieve high levels

of efficiency.

Supervisor: The supervisor will be closely working in contact with the respective

managing partners and constantly updates will be made to both the supervisors as well as

the the client.

Under the Supervisor’s Span of Control, the Driver, Photographer, printers, the designer

and editor as well as their assistants will be responding and reporting to. They are

expected to provide urgent and immediate updates. Decision making has been delegated

but to a certain extent and the authority remains with with the supervisors as well as the

managing partners.

Each task and role has been well defined and each processes have been well trained and

explained and has been aided with the use of technology, hence minimizing the chance of

error and any flaws.

A Wage structure has been designed based on the scope of work and qualifications which

would justify the wages that would be paid.


Roles & Responsibility

Name of

Individual Post Held Roles & Responsibility

Hadia Jamil

Managing Partner

HR & Administration Head

Strategic and Corporate Decision Making. Legalities for the business as well as hiring, recruiting of staff needed.

Megha Kamath Managing Partner

Marketing Head

Strategic and Corporate Decision Making. Marketing operations, promotional activities and updating social media

Sankalp Oberoi Managing Partner

IT & Technical Head

Strategic and Corporate Decision Making. Equipment Maintenance, training and technicalities management

Mohammad Owais Managing Partner

Supply Chain Head

Strategic and Corporate Decision Making. Stock Refurbishment, Stock control, storage and costing of supplies and arranging deliveries.

Ajinkya Tanpure Managing Partner

Finance Head

Strategic and Corporate Decision Making. Book keeping and transaction recording of all revenue and expenses. Producing forecasts and budgeted plans.

Nikhat Siddiqui

Managing Partner

Resource & Industry Expert

Strategic and Corporate Decision Making. Resource Analysis and monitoring the market and the changing trends and preferences of customers.


Recuirtement & Salary Costs

A Wage structure has been designed based on the scope of work and qualifications which

would justify the wages that would be paid.

The Managing partners will be paid a Basic Salary of AED 3000, including benefits such

as Medical Insurance as well as Air Travel ticket every month.

Other employees of the organization will be paid on an hourly basis at the rate of AED 60/

per hour. The employees will also be provided with medical insurance and air travel ticket

as well.

Post Held Roles & Responsibility

Supervisor In charge of controlling and monitoring entire process. To ensure that the tasks being performed by all the employees.

Driver Transport all the necessary resources to the correct place of event.

Photographer Taking high quality pictures of the customers and send the correct picture to the next operation.

Printer To make sure there is enough ink to print out what is demanded by the customer

Assistant Printer To assist the main printer

Design & Editor To hold the necessary skills and provide a professional end result to the customers’ picture which will be printed on their selected product.


Resources

Initially starting a firm is an exciting proposition, but there are various other challenges

that you undergo throughout the process. Resources help us understand the equipment’s,

plants and the facilities needed for our firm (Weaver, 1998). JOAT’s plant is a photo

booth, buying the latest model will be a one-time investment. We offer products like:

unique and customized magic mugs, t-shirts, phone covers and key chains. In order to

print on these products, we require a multi-purpose machine, which has the feature to print

all in one. The equipment’s required in order for the printing process to carry forward is

the inkjet printer and the cartridge, laptop; to customize the image, coated mugs,

silicon/plastic phone covers. In order to avoid any sort of hindrance in the production,

there is a need to gather extra ink and paper supplies so the operation can run smoothly as

they have backup stock in hand. JOAT being the only company providing any thematic

background to the customers according to what they want, there is a need to collect the

props, backgrounds and curtains according those particular events. We offer all sorts of

props to make it more interesting and fun for the customers. Finding proper software like

the green screen and proper touch screen ensures the easygoing transition of images from

the camera to the printer, directly. Handful of trails has been implemented so it does not

take up time during the production. Stall or a kiosk is enough to place our plant and

machines due to its mobility; it does not take up space.


Risk Management

Risk management and strategic planning assists organizations in assessing the robustness of

current and alternate strategies within an inconsistent risk landscape (Andersen and

Schrøder, 2010, p.179). JOAT has undergone extensive market research to evaluate risks

affecting the business and has discovered the following risks and risk mitigation strategies.

Possible Risks & Risk Mitigation

1. IT Risk - The use of IT and contemporary technology is an integral part of JOAT.

This can be seen in areas ranging from the online booking of services to the high-tech

operations of equipment as well as the on the spot editing and printing services at the

event venue. JOAT has recognized IT failure as a potential risk as it constitutes as a

core aspect of our business affecting our daily business processes and overall

performance levels.

Risk mitigation: JOAT will have a predetermined crisis team the appropriate action

strategy in such a case. This will include an IT technician with the appropriate tools and

backup equipment (if necessary) at each event. JOAT has invested a considerable

amount in securing the most reliable and speedy IT foundations. In case of any

equipment or IT malfunctions we will foster an early warning system that will generate

alerts which our IT technicians can cater to. We will additionally be maintaining and

conducting regular checks on all our equipment to ensure the smooth functioning at each

event and for the safety of our clients.

2. Competition – JOAT’s main competitors in the UAE include photo booth rental and

printing companies, T-shirt printing companies and finally the recent retailing of

‘Instant Cameras’ that allow consumers to print their pictures with standard instax

film on the spot. Our organization faces competition from three different kinds of

established businesses.


Risk mitigation: JOAT can use the required marketing strategies to assure our clients

that they are paying for versatile, quality and speedy services with their final product

delivered to them at the venue itself. Our organization will further provide affordable

pricing on all our product offerings considering the needs of our target market.

3. Marketing Risk – According to our carefully examined financial plan, JOAT will be

operating on each of the partners’ investments for the first year as growth prospects

would be a sluggish 8% each month. There is a perceived risk of our marketing

strategies being incompetent to attract our desired audience as our main marketing

focus would be through the use of social media advertising.

Risk mitigation: Our organization will firstly hire a marketing professional to

successfully promote our brand in the marketplace. We will also ensure to monitor the

responses and attractiveness of each strategy we implement and alter it if progress is not

evident. This can be tested through various tools such as; profile views and likes on

Facebook and YouTube, number of clicks to and on our website, the number of hashtags,

retweets and reposts on Facebook, Twitter and Instagram. Finally, if all else fails we will

increase the use of traditional media to market our organization (Colon, 2012).


Key Milestones

Description of Milestone Duration

Deciding Business Idea 7 days

Market Research (Competitor & Industry Analysis) 7 days

Analysing Costs of Operations and Company Formation 3 Days

Inquiry about Equipment and Machinery required 2 Days

Requesting Quotations from Suppliers 1 Days

Pitching Business Proposal to Investors 4 Days

Receiving confirmation from Investor 1 Day

Finalizing Warehouse and pay deposits 3 Days

Establish the Business and pay all dues 5 Days

Receive all approvals and licenses for business operations 2 Days

Confirm all equipment and stock required 2 Days

Begin Staff hiring processes 7 days

Start with marketing campaign (Social Media) 25 days

Website Designing 7 days

Training of the Staff after recruitment process completed 2 Days

Receiving stock from suppliers and storing in warehouse 4 Days

Aggressively implement the marketing strategies 5 Days

Commence the operations of JOAT 1 Day


Gantt Chart


Financing

JOAT is a provider of products in various varieties such as t-shirts, mugs, phone covers &

key chains. This would require the company to hold inventory of these goods. Moreover,

all the sales by the company are on cash basis and not credit which would reduce the cash

flow deficit. This furthermore will allow in a steady growth for the company and by

keeping a good cash flow we can grow our finances. Given an insight of the startup capital

of the company.

Funding Sources

Internal Sources

• Personal Funding – By using family and friends the option of personal funding can

be satisfied for the company. Moreover, using our own savings we can finance the

business. Overall, a sum of AED 480,000 is raised for funding the business and will

be used as capital. The risk of using a personal source of funding is lower as the rate

of interest is low or zero and the loan does not have a specific expiry period.

• Previous year profits – Our business is based on cash sales. This allows us not to

have debtors which allows for good cash flow. On the other hand, we can pay our

suppliers within 90 days according to the terms and conditions established with

them. This allows for utilizing the cash inflow and outflow and gives us more

liquidity in the business. The money in 1 year 6 months will be used to breakeven

and and further on will be used for the expansion of the business. Our future

prospectus is to expand our target market to corporate and large events such as

GITEX, Standard Chartered Marathon etc. and operate on a large scale.

External Sources

• Bank Loan – One of the most used type of finances which are long term in nature

are bank loans. As JOAT is a new start-up, it is not eligible for a loan for the first 6


months. But we can apply for a Small to Medium Enterprise(SME) loan from

Mashreq Bank. The duration of the loan is 5 years and the rate of interest charged is

15% per annum. The loan will be taken on the 6th month as an additional

requirement.

Angel Investors – Angel Investors are one of the most sought after sources of

business financing. Angel Investors are ready to invest into high risk ventures and

through their contacts they can arrange low interest rate investments. Angel

Investors prefer to invest in local businesses than international business because of

their good exposure and knowledge about the local markets.

Financial Plan

Key Financial Assumptions

It is crucial for every business to have a set of financial assumptions which can make or

break the business and its revenue and further on disrupt the breakeven process. Below

are the details taken into consideration by our team which highlight the financial

assumptions made:

• Initial sales will be low as entering an industry such as the entertainment industry

requires time to build up a good image and reputation.

• We assume that there will be weekly sales variances. Thursday and Friday being the

weekend will bring in more sales as more events and private parties will be held

during that course. Apart from those, late evenings are predicted to have good sales.

• Seasonal sales will be a very important factor as the sales turnover will increase

during the months of vacations in summer and winter. As we are targeting university

and school students, during the course of their summer and winter vacation we

expect to have increased sales especially during the months May to September.


• Moreover, the assumption is made that the accounts receivable will be 0 days as

there in immediate payment by the client.

• Inventory turnover will be controlled in terms of sales and the agreement with our

supplier for the raw materials will be coordinated weekly on assessment of the sales

report.

Following factors have helped in generating with a statement :

• Sales: The sales every month are expected to increase with a steady growth of 6-8%

every month keeping a reasonable amount of operating hours in mind.

• Cost of goods sold: The main cost involving the goods come from the raw materials

and the expenses incurred on them. T-shirts, mugs, key chains and phone covers are

the main raw materials involved in the printing process with the inclusion of printing

ink, heat transfer paper etc.

• Employee Expenses: The expenses incurred under this category include employee

salaries, insurance and travel expenses.

• Marketing: Cost of marketing our company has been confirmed from our marketing

team with a complete cost analysis.

• Administration & General: These expenses include stationery, rent, software etc.

as expenses which are mentioned in the cost breakdown structure

• Legal and Sponsor Fees: The cost of startup with the inclusion of all the legal fees

is highlighted and our sponsor has agreed to a yearly fee of Dhs18,000 to be given.

The renewal of the trade license every year will be an estimated Dhs10,000.

• Delivery Van: The delivery van will be purchased in the start of the year. It will be

paid off in full cash and purchased from Al Rostamani Group.


Startup Costs Breakdown


Income Statement for 3 Fiscal Years

Income & Expenses Breakdown Structure for Year 1



Break – Even Analysis

JOAT’S Break even point is at AED 1,481,142.00


Balance Sheet for 3 Fiscal Years


Cash Flow Statements for 3 Fiscal Years




Reference List

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Appendix

Sample Quotation from Suppliers

Delivery# 15674 DeliveryDate

Invoice# 1231 TermsofPayment

SupplierRef JOAT1

Tell: 9714321000Email: [email protected]

Attentionto:P.OBox:Emirate:Address:Email:TermsofDelivery:

SerialNo. ProductCode DescriptionofGoods Quanity UnitPrice1 HP69651 HPSpectre3.2GG,i7,512GB 1 3,000.002 HP11223 HPDigitalPrinterX59 1 1,000.003 TS6978 XFabricPrinter 1 1,200.004 MC1982 LiquidDispensePrinter 1 800.005 PP1234 HPHiQualInk 6 500.006 SP12465 SMDStickPaperDouble 2 500.00 500.00

800.00

TotalAmount(AED) AED7,000.00

1,000.001,200.00

3,000.00

500.00

[email protected]

DescriptionofGoods

TotalAmount(AED)

60Days

BuyerInformationMs.HadiaJamil

65860Dubai,UAE

AlQouz,Warehouse#69

CommercialInvoice

Seller

Buyer

AlSuwadiCo.LLC

SheikhZayed,Dubai-UAE

G.R.No# 9Destination

1st-April-2016

Dubai



SupplierRef JOAT1

Tell: 9714321000Email: [email protected]


SerialNo. ProductCode DescriptionofGoods Quanity UnitPrice1 PS124 PlainWhiteShirt 10 10.00

PSB12 PlainBlackShirt 10 10.00

AlQouz,Warehouse#69

CommercialInvoice

Seller

Buyer

EmiratesApparel

Diera,Dubai-UAE


1st-April-2016

Dubai

60Days


65860Dubai,UAE

100.00100.00

[email protected]

DescriptionofGoods

TotalAmount(AED)

TotalAmount(AED) AED200.00




SupplierRef JOAT1Tell: 97146785901Email: [email protected]


SerialNo. ProductCode DescriptionofGoods Quanity UnitPrice1 MC123 MagicMug 10 7.00

AlQouz,Warehouse#69

CommercialInvoice

Seller

Buyer

StringsInternational

Diera,Dubai-UAE


1st-April-2016

Dubai

60Days


65860Dubai,UAE

70.00

[email protected]

DescriptionofGoods

TotalAmount(AED)

TotalAmount(AED) AED70.00


Brochure