Business proposal Home alarm plus
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Home alarm plus Michael O. Faloyin Eng 352 10th March, 2005 Executive summary: Statement of proposal The purpose of this proposal is to secure a loan in order to expand my business in home security systems to accommodate an automobile security systems installation department. I have a thriving home alarm system called Home alarm plus Inc. I think it will be a profitable venture to branch into the field of automobile alarms because of the rising statistics in car theft in the united states, causing more automobile owners to invest more in automobile security, therefore opening a door to businesses that specialize in automobile security systems installation. Sales in alarm systems in general have risen in the past couple of years due to increase in break in and entry in homes and automobile. This rise in such activities has forced many businesses and individuals to invest more in security systems. Secondly, in the region which I represent which is North Jersey, there is a scarcity of such businesses, therefore opening up an opportunity to tap into the benefits of this field of business. Background Northern New Jersey has some of the richest neighborhoods with some of the most expensive cars for example cities like Paramus and Englewood cliffs and also has cities with the highest automobile theft rate, for example cities like Newark and Paterson therefore causing a high demand for car security systems. With such a scarcity of businesses offering such services it gives me an opportunity to gain from the abundance of customers. I aim to make the community as safe as I can and prevent vandals from unfairly accruing the possession of hard working individuals. I have been able to achieve this in my home security systems business with all my clients, but I fell more can be done by extending this to automobiles. The statistics have shown that automobile theft has risen 40% in the past 3 years. In the city of Newark for example, on an average, at least one car is stolen every ten minutes which 5 years ago was 1 in every hour. I hope to be able to reduce this statistics by introducing this department to my company. Statements of goals and returns The major benefit of this business idea is that it helps keep the community safe. This can be achieved because it helps reduce the crime rate and helps owners have a better sense of security about their possessions. It also helps because since the car theft rate is kept low, therefore customers have to pay less for there insurance rates, therefore leaving more money for other necessities. A device called the low jack could also helps in retrieving stolen cars with the help of a tracking device. It could also be helpful because it could help save the police the time that otherwise will have to deal with car theft cases more time to attend to other of equal or even greater importance. This business will also be beneficial because due to the scarcity of such services, it will produce an abundance of customers. Being one of the pioneers of this business has its benefits because it helps build a reputation before other companies enter the business. Qualifications I think I will be qualified for this business because I have experience running my own business which has been running for the past 5 years now and is more successful than I ever imagined. I also have been researching this field for the past year and a half, acquiring enough information to understand the requirements of the business and have also taken time to speak to other people in the business who have been kind enough to shear their experiences in the business. My present employees are technicians who have expertise in the field of home security system installation; therefore there expertise with a little more training will be an efficient and also an inexpensive way to utilize the already available resources in the running of the business. Business Model Location My business which is located at 77 circle drive Paramus New Jersey and we also recently opened branch at 333 Martin Luther king boulevard Newark New jersey. The branch at Newark is beneficial because the car theft rate in these towns is really high therefore creating a higher demand for home alarm systems and as well as car alarm systems. These locations are very beneficial because they are located around other cities with a lack of such businesses, therefore we can gain from customers from those towns. Startup We presently sell, install service and monitor home security systems. The new department will be responsible for selling, installing and servicing automobile security systems. The technicians will have to go through a short training in automobile security systems which will be handled by the manager of that department. The manager of that department will be responsible to seeing to the day to day running of the business. Labor force We currently have 20 employees, 13 of whom are technicians and 2 managers 1 accountant and 4 sales people. In my own opinion, the employees presently working in my company should be sufficient to running both the home security systems departments and the automobile security department. The only addition that will be required will be a manager who should be an expert in the field of auto security systems, therefore having the experience required to run the business. Day to day activities The manager’s deal with all the paper work that comes with the running of the business. This includes making sure all jobs assigned have been done, and finding out and solving conflicts in the interest of customers and employees. They are also responsible for allocating jobs to all technicians and scheduling customer home deliveries and home calls. They are also responsible for making sure the parts equipment and merchandise needed will be available. They are also responsible for ordering merchandise and equipments for all departments. The managers are responsible for researching new equipment and technology that could make the job more efficient. They are also responsible for researching new merchandise and suggesting new technology. They are also responsible for allocating work hours jobs to each technician. We also perform complimentary services of equipment to our customers every 6 months which the manager is responsible for checking the accounts of our customers and assigning this tasks to the technicians and also for keeping a record as this services are done. We also offer free updates on equipment every 5 years, and the managers are also responsible for assigning and keeping a record of the upgrades The accountant is responsible for dealing with the financial aspects of running the business. This includes paying the utility bills and paying for merchandise ordered by other managers. They are also responsible for advising the company on the financial status of the company. They are responsible for calculating the hours worked by employees and paying them. The sales people are responsible for attending to the customers. They are responsible for giving all information the customers needs to know about our business and services and also our merchandise They analyze the customer’s needs and budget, and advice on what we offer that will fulfill all there. They are also responsible for handling and accounting the money paid by the customer during there shift or time at work, The technicians are responsible for installing the equipment, trouble shooting in case of a problem. They are also responsible for explaining to the customers the uses for the equipment. They are also responsible for showing the customer the functions of the equipment. The technicians are also responsible for servicing the equipment and repairs in case of damage. All this work is finally over seen by me the president of the company. All the work done in the company is sent to me for evaluation and also to in form me of the progress of the company. I as the President over see the general running of the business. Market research In both our branches, we have noticed that there has been a high demand for security systems. A number of our customers have enquired about automobile security systems therefore giving us the idea to add this department to our already thriving business. We then introduced a survey inquiring from our customers if adding an automobile security system will better service their needs, and we were able to receive a positive answer from 68% of our customers in Paramus and 75% in Newark. This gave us a sense of the market available for this department in the towns which we service. We have done research in this field by reading papers published for the departments of motor vehicles on the automobile theft and also reading other papers on research in that field. We have spoken to other entrepreneurs in the field and have gathered that there is an abundance of customers and there are not enough businesses offering such services. Budget Home alarms plus is a thriving business venture and has been successful thus far acquiring approximately $10,000,000 in real estate and merchandise in five years. In order to expand our business to accommodate the needs of our customers, we need $450,000 for all the expenses that will be encored. I will be giving a summary of the money that will be needed for our vision to become a reality.
From the chart, we are able to see that there is a 40.33% yearly increase which will be average out to $1,200,000 yearly increase in income after all expenses, therefore giving us the assurance that it will be a business worth venturing into Timeline This time line represents the estimated time in months, beginning as soon as the loan request is granted. It will take a total of 7 months for the whole project to be completed. This project will commence as soon as the loan is granted. Here is a breakdown in form of a timeline on which the project will be done. The time line is broken down as follows;
Time in Months 1st 2nd 3rd 4th 5th 6th 7th Conclusion Security systems business is a very lucrative field of business and it is an essential field in the lives of all people. It is a filed which is just growing in northern New Jersey, therefore it will be wise to tap into all the benefits of this fields while there is still an abundance. I hope you are able to approve this loan ina timely fasion because it think it will be beneficial to go into the business as soon as possible. Thank you for your time. Download 81.55 Kb. Share with your friends:
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