Enterprise in Action: Group Business plan

Manchester Metropolitan University
Enterprise in Action
Assignment 1: Business Plan
Adam Thompson: 14017000
Alexander Qualter: 14016757
Ashley Graham: 12078026
Jack Legge: 14040012
James Oakes: 14002986
Rory Philbin: 14039932

Contents
Title Page
1.0 Executive Summary 2
2.0 Company Description 3
2.1 Introduction 3
2.2 Company History 3
2.3 Mission Statement 3
2.4 Strapline 4
2.5 The Product 4
2.6 Current Status 4
2.7 Ownership 4
3.0 Industry Analysis 5
3.1 Industry Definition 5
3.2 Industry Size and Growth 5
3.3 Industry Characteristics 7
3.4 Porter’s 5 Forces 8
3.5 Key Industry Ratios 9
4.0 Market Analysis 10
4.1 Market Segmentation and Target Market 10
4.2 Segment Characteristics 10
4.3 Segment Size 10
4.4 Behavioural Variables 10
4.5 Competitor Analysis 11
5.0 Marketing Plan 12

5.1 Positioning Strategy 12
5.2 SWOT Analysis 13
5.3 Points of Differentiation 14
5.4 Pricing Strategy 14
5.5 Sales Process 14
5.6 Promotional Mix 15
5.7 Distribution and Sales 16
5.8 Marketing Mix 17
6.0 Management Team and Company Structures 18
6.1 Management Team 18
6.2 Skill Profile and Gaps 24
6.3 Ownership and Compensation 24
6.4 Structure of Organisation 25
7.0 Operations 26
7.1 Production 26
7.2 Communication Channels 26
7.3 Resources 26
7.4 Shipping Costs 27
7.5 Suppliers Imported From China 27
7.6 Domestically Sourced Supplies 27
8.0 Product Development Plan 29
8.1 Development Status and Tasks 29
8.2 Challenge and Risks 29
8.3 Costs 30
8.4 Intellectual Property 30

9.0 Corporate Social Responsibility 31
10.0 Financial Projections 32
10.1 Sources and Uses of Funds Statement 32
10.2 Profitability Ratios 32
10.3 Financial Status Ratios 32
10.4 Balance Sheet 33
10.5 Cash Flow 34
10.6 Profit and Loss 35
10.7 Conclusion 36
11.0 Milestones and Exit Planning 37
11.1 Goals and Visions 37
11.2 Strategies 37
11.3 Milestones 38
11.4 Exit Planning 38
Appendix 39
Figure List
Figure 1: Market Size of the Toy and Games Industry 8
Figure 2: % of Store-Based Retailing of Toys and Games in the UK 9
Figure 3: Profitability in the Toys and Games Industry 9
Figure 4: Household Expenditure on Toys and Games in the UK 10
Figure 5: Market Shares in the Toys and Games Industry 11
Figure 6: Current Ratio for the Toys and Games Industry 12
Figure 7: Debt to Worth Ratio for the Toys and Games Industry 12
Figure 8: Positioning Strategy of Wobbly 15
Figure 9: Distribution Channels of Board Games in the UK 19
Figure 10: Ratio Analysis 35
References 59

1.0 - Executive Summary
A brand new experience in board games.
Wobbly is an innovative, revolutionary, twist on a classic product. We plan to use
motorised technology in the traditional board game market to create a unique
product which engenders fun and interaction between participants. In the growing
market of toys and games, we aim to make Wobbly a first choice for family fun in
households across the UK.
It is a common misconception that modern technology is responsible for anti-social
family behaviour and declining interaction. However, our research suggests that
surprisingly the board game market is growing and so we firmly believe in the
creation and launch of Wobbly. Modern families often feel pressurised to spend time
together. There is a contradiction in that whilst we are connected through ever
increasingly sophisticated technology, our lives can be perceived as being isolated.
Wobbly offers a solution to this problem; simply combining modern technology with
the traditional excitement of a board game which combines to create fun and
laughter for generations.
Wobbly tests the players’ nerve, and construction skills. The players have to build a
sturdy tower, on their own platform. A battery powered motor then vibrates the
board and if your tower is not built securely, it will tumble and your game is over.
The target market for Wobbly consists of 16.9 million UK families (ONS, 2015). It is
clear, through the execution of detailed industry and market analysis, that we have a
huge potential audience who can benefit from this unique product. We have chosen
to sell the product through online retailers, following reports of a majority of sales
through this channel. To support this, we have created our own website which our
product will be sold directly through.
Although our company is still in its initial stages of development, we have huge
ambition for our product, and the determination to take the industry by storm with our
concept.
2

2.0 - Company Description
2.1 - Introduction
Wobbly is an innovative, modern, and unique new company set to enter the toys and
games industry with a family board game. We would like to bring our product to
market by 2017.
The Team: Alexander Qualter (Founder)
Ashley Graham (Financial Director)
Adam Thompson (Design and IT Specialist)
James Oakes (Project Co-ordinator)
Jack Legge (Operations Manager)
Rory Philbin (Marketing Specialist)
Location: We are located in Manchester Metropolitan University
and hold team meetings in the library.
Market Demographic: We aim to begin selling our product to the UK board
game market, with our target market being families of 4,
with children over the age of 6.
Contact Information: Alexander Qualter
alexanderqualter@gmail.com
2.2 - Company History
Wobbly started as a man with a dream. Alexander Qualter was completing a class
activity during a university tutorial, when the idea of a wobbling board game came
into his head. Having considered the idea further, the name for the product was
born, quickly followed by its mechanics, rules and objectives. After pitching the
concept to a selection of housemates and course-mates at university, Alexander
received positive feedback, with friends confirming their belief and validity in the
business idea and product. From this encouraging start, he decided to pursue
Wobbly by planning to bring the product to market.
A team was formed, consisting of Enterprise in Action classmates who were selected
for their specific attributes and specialisms developed through previous experience
in industry and education.
2.3 - Mission Statement
To infuse the board game industry with a new generation of family fun, diverse to
anything ever played before.
3

2.4 - Strapline
Will You Wobble?
2.5 - The Product
Contents of the Game: Game board
4 coloured bags containing 20 bricks each
Packaging (Including instructions: printed on the box)
Wobbly will be competing in the toys and games industry, for a place amongst the
market leading, family favourite games such as Monopoly, Trivial Pursuit and Mouse
Trap. Wobbly sets itself apart from the “classics”. A central component exists in the
form of a small, battery powered motor which wobbles the board. This unusual
aspect helps establish its uniqueness. The game allows for every player to
participate at once, ensuring involvement and engagement throughout.
The product is to be produced and distributed from the HQ in Manchester to
customers (Both businesses and consumers). The pricing of Wobbly will be
competitive with market leading games, although will be higher than the average
board game due to the electronic component costs involved with production.
2.6 - Current Status
The Wobbly business is in the initial stages of growth, however there have been
significant developments made towards bringing the game to market.
 A prototype of the game has been made and has undertaken thorough
product testing.
 The financials of the business have been researched and calculated, with
financial documents being drawn up including cash-flow, profit and loss, and
profitability of the business.
 Market research has been conducted, showing demand for the product,
healthy market analysis, and desirability from customers.
2.7 - Ownership
Wobbly is a partnership company, shared equally between the six initial members of
the team. Each member is equally liable for the company.
4

3.0 - Industry Analysis
3.1 - Industry Definition
Wobbly is looking to enter the toys and games industry by 2017. The toys and
games industry produces entertaining and fun products for children, teens, adults
and families all to enjoy.
3.2 - Industry Size and Growth
Figure 1 (below) shows the historic size of the toys and games industry between
2009 and 2014. Although the figures declined between 2009 and 2012, more recent
figures show the industry’s size is growing and is currently valued at £6.6bn in 2016
as seen in Appendix 1. The industry is set to increased its size to £7.3bn by 2019.
Figure 1: Market Size of the Toys and Games Industry
Source: www.euromonitor.co.uk
The toys and games industry has shown a decrease in % distribution of sales
through retail stores. Figure 2 (on the following page) shows that between 2009 and
2014, the retail sales dropped by 14%, therefore increasing the sales through online
retailers to 36%. Although the in-store retailers still hold the majority share of sales
of toys and games, the signs of growth in distribution through online stores is very
appealing for our Wobbly business.
5

Figure 2: % of Store-Based Retailing of Toys and Games in the UK
It has been established that in recent years, the toys and games industry is inclining
in size. Despite common thoughts that board games were obsolete, the market is
proving otherwise, with UK companies recording profit margins between $2.1m and
$15.6m. In Figure 3 (below) we can see the total gross profit of the UK toys and
games industry each year, since 2009. Peaking in 2010 at $123.6m, the industry
has proven that the market is healthy, and there is potential for profits to be made.
This table of data also shows that costs generally increase with sales. Combining
the data from Figure 1 and 3, we can see a trend and positive correlation between
sales increasing and costs increasing and vice versa.
Figure 3: Profitability in the Toys and Games Industry
6

Expenditure on toys and games has increased proportionally to the ever-growing
population in the UK, and the GDP of the country. Despite this increasing figure, the
expenditure growth has decreased in recent years and looks set to level off as it
previously did in 2004. Therefore, a unique and differentiated product such as
Wobbly could help UK families to rediscover their love for board games and
contribute towards once again growing the household expenditure on toys and
games.
Figure 4: Household Expenditure On Toys and Games in the UK
3.3 - Industry Characteristics
Figure 5 (on the following page) shows the market share of the leading 18
businesses in the toys and games industry. We will be competing against Hasbro
and Lego for sales of board games, to families in the UK. Both companies combined
only hold 9% of the market share, highlighting the problem of market saturation in
the traditional board game market. Although this is a potential threat to our
company’s entrance to the market, we also see this as an opportunity to differentiate
ourselves from others in the industry, helping our game to stand out from the crowd.
7

Figure 5: Market Shares in the Toys and Games Industry
Source: www.euromonitor.com
3.4 - Porter’s 5 Forces
Threat of new entrants is
high with potentially low
start-up costs for business
in the industry
Bargaining power of
buyers is high due to large
amount of choice of
products
Toys and games industry is saturated
with thousands of different board
games for sale therefore the threat of
substitute products is high
Suppliers have a low bargaining
power as our game has a small
number of components with a
high number of potential
suppliers
8

3.5 - Key Industry Ratios
The current ratio tests the ability of a company to cover their short term liabilities with
their short term assets. As Figure 6 (below) shows, the current ratio of competing
companies in the toys and games industry, has increased between 2011 and 2015.
The industry average is 2.2.
Figure 6: Current Ratio for the Toys and Games Industry
Source: http://retailowner.com/Benchmarks/Recreation-Leisure-Activities-Stores/Hobby-Toy-and-
Games-Stores#2922155-current-ratio
The debt to worth ratio in Figure 7 (below) is decreasing year on year between 2011
and 2015. This ratio tells us that the companies in the toys and games industry now
have much less debt compared to their value as a business.
Figure 7: Debt to Worth Ratio for the Toys and Games Industry
Source: http://retailowner.com/Benchmarks/Recreation-Leisure-Activities-Stores/Hobby-Toy-and-
Games-Stores#2922154-debt-to-worth
9

4.0 - Market Analysis
4.1 - Market Segmentation and Target Market
The toys and games industry can be segmented by product type and target market for
the product. The Wobbly board game is segmented in this industry as a board game,
with a target market of families of 4 or more, in the UK.
4.2 - Segment Characteristics
Geography: United Kingdom
Demographics: Children aged 6 – 12, with parents of any age targeted
Families of 4 or more
Product Variables: Board Game
4.3 - Segment Size
There are 16.9m families in the UK. UK families are our target market, with a
reasonably open age range of targeted people.
4.4 - Behavioural Variables
Target marketing recognises the diversity of customers and by using behavioural
segmentation. This should help us to identify our target market behaviour towards
board game products
Benefits Sought: Families want to spend more time playing together
Usage: Wobbly will be a one off purchase and usage will vary. We
envisage peak playing times at weekends, public holidays and
family gatherings. The usage will also be seasonal with usage
being especially during winter around Christmas time.
Brand Loyalty: Brand loyalty will be established by offering a quality product with
excellent customer service.
User Status: Families and groups of two to four from ages 6 upwards
Readiness to Buy: Awareness of our product, knowledge of it benefits, we will have to
create initial interest and preference over competing products (we
believe ours is unique as it has a motor and wobbles). They will
need conviction that our product will be suitable for their needs prior
to them making a purchase commitment.
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Occasions:
Market Size:
Behaviour:
Christmas, birthdays and family events will be key occasion for us
to sell Wobbly.
The game industry was at its peak in the year 2009 and has gone
onto recline in the year 2013. However, 2014 saw the industry
recover and gain its market size equal to that of 2009.
(Euromonitor, 2016).
Jane Westgarth - Senior Market Analyst suggests that customers
may not go to toyshops anymore and instead they will be more
likely to buy online or from a supermarket (Mintel, 2016).
4.5 - Competitor Analysis
Competitor analysis will be an ongoing process for our product. Currently, Jenga and
Lego stand as large competing board games which include a board and blocks,
however neither product incorporate motors.
In order to assess our competitors, we have completed an assessment of the
operational performance of Wobbly compared to Lego and Jenga. The 5 key areas
assessed are the performance objectives of operation.
Company Product
Quality
Cost Dependability Speed of
Production
Flexibility Total
Wobbly 4 3 4 3 3 17
Lego 4 2 4 2 5 17
Jenga 3 4 4 4 1 16
5 = Excellent, 4 = Good, 3 = Average, 2 = Poor, 1 = Very Poor
Lego is a high quality product with many different types of product, in many markets. The
product quality is never compromised, meaning the brand scores high in dependability,
product quality and flexibility. With quality comes a much varied price, and so often Lego
have to charge high prices for their high quality product. Lego also has a reasonably low
speed of production, and overall scores 17/25.
Wobbly scored the same as Lego for product quality and dependability. Wobbly will offer
a high quality product, with great customer service which enables it to score highly on
dependability. Although Wobbly does not score as high as Lego on flexibility, the brand
scores higher on cost and speed of production. Wobbly also scored 17/25 overall.
Jenga has a very low cost with the product available to purchase from as little as £2.95.
The product also has an average product quality, with a good speed of production and
dependability. The product has low flexibility, and therefore only scores 16/25 overall.
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5.0 - Marketing Plan
Our target market are families of 4 or more. In this instance, we define "families" as:
parents who have children aged 6 years or more. We have chosen families as we
believe they will enjoy the game the most, and there is a large number of families in the
UK. Numerous polls suggest that 90% of families believe playing games together
increases positive interaction with each other and that it helps them to feel closer (The
Board Game Family, 2013).
We know board games are in an ever-increasing industry and we feel by targeting
families we will have the best opportunities to make profits, and survive as a small
business.
5.1 - Positioning Strategy
Figure 8: Positioning Strategy of Wobbly
Wobbly’s positioning in the market is based on price and quality compared to
competitors. With a high price and a reasonably high quality, wobbly is in the top third
on both axis. Lego scored highest on price and quality, and Jenga scored lowest on
price and quality. Wobbly is well away from most competitors in the industry which
means it is a product with a good differentiation and uniqueness in the market.
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5.2 - SWOT Analysis
Strengths
Growing Market Size: Board game sales have increased year on year by 10-20%
Vibrant Market:
Easy Start Up:
Weaknesses
Market Saturation:
Simplistic Game:
Opportunities
Unique Design:
for the past 20 years (Euromonitor, 2015).
Non digital games and puzzles sold approximately $2bn
worth of products in the USA in 2010 (US Department of
Commerce Industry, 2010).
Niesta reports 22% year on year growth in board game sales
in UK.
There are currently 1902 games businesses in the UK
(Euromonitor, 2015).
Amazon board games experienced a revenue increase of
20% in 2011.
Table Top convention (US) reported board game sales up by
15% more than video creations.
The game industry was at its peak in 2009 but went into
decline in 2012. The following year saw the industry recover
and gain in value (Euromonitor, 2016).
The cost of each game to produce is less than £15, with little
overheads and equipment needed to produce the product.
Simple production methods with small numbers of
employees are needed.
The market is saturated with many large companies already
with a strong presence.
The game is simple however there are only so many types of
towers that players can build when playing the game over
and over again.
The design of the game is completely new to the industry,
with no other games like Wobbly meaning we can take
advantage of moving first towards this type of game.
13

Threats:
Size of Competitors: Large companies competing in the market already have
large customer bases and huge marketing campaigns
implemented. These are a threat in overpowering Wobbly’s
campaign to promote the game as a start-up.
5.3 - Points of Differentiation
Current similar market products Wobbly
 No movement, static game
 Need to play against players of
similar skill level for game
satisfaction
 Manual dexterity
 Skills required
 Slowly placed activity
 One tower
 Board wobbles
 Exciting for all ages and sizes of
groups
 Creates uncertainty
 Teaches creativity and construction
 All players play at the same time
 Fast activity
5.4 - Pricing Strategy
We have chosen to adopt a competitive price strategy, targeting to compete with the
more expensive games. We have forecasted a 69% gross profit margin which is a very
realistic target when looking at our cost per unit (£14.75) and selling price (£24.95). The
cost per unit includes the materials and labour. We believe this price strategy is
competitive within our chosen market. However, from a negative perspective, some may
say the production cost per unit is extremely high compared to Wobblys competitors
who average a cost per unit of £4.50. Our cost plus price strategy allows us to ensure
profits on every unit sold.
5.5 - Sales Process
Product Knowledge: This step concerns the overall understanding of our board game
and what makes it unique to competitors in the market. Our board game infuses modern
technology in the form of a motor, with the traditional board game. Each platform is
connected to the motor and wobbles providing a level of uncertainty and excitement as
players anticipate their tower falling but hope their tower remains intact. Our product
has good quality materials in its production.
Prospecting: This section concerns searching for customers. We know our target
market is going to be aimed at families, but we need to know how to target them and
14

where to target them. From research conducted it was discovered that customers'
desires indicate that internet retailing is the fastest growing retail channel in the UK.
The Approach: This is where we decide about the approaches we are going to make to
people such as manufactures and how we are going to advertise our board game.
Emailing companies about our game will not be effective. Our best option will be to
pitch our board game to potential buyers as they will first hand get to understand
Wobbly. In addition, having a prototype will be a significant benefit as buyers will be
able to see how the game works and experience for themselves its unique points.
The Presentation: We will present our product to potential buyers; major retailers,
supermarkets and online websites. We will focus on the benefits to the customer as well
as the uniqueness of Wobbly compared to other competitors. Our presentation will be
PowerPoint based, with an advert and a prototype.
The Close: The close of the presentation is vital to ensure you seal orders from the
buyers. An extra inducement close involves offering something extra to get the buyer to
agree, such as a discount or a free product.
Follow Up: By building effective initial contacts, relationships are established through
contact with a buyer. This is essential to secure an agreement; conversations here are
best handled by the salesperson who started the relationship.
5.6 - Promotional Mix
Once our target market has been identified, we can focus on marketing Wobbly. This is
important for our business as we need to increase product awareness s customers,
stakeholders and the broader public have a positive perception about our board game.
We will do this in four steps: Advertising, Selling, Sales Promotion and Public Relations
Advertising: This is where we entice and persuade potential customers to
choose our board game over our competitors. Advertising will allow
people to see and understand our product's features and benefits.
We will advertise through the medium of video as our market
research suggested that this is the most popular way of advertising
to our target market. In addition to this, we will be promoting our
board game through social media outlets which is both cheap and
effective.
15

Selling: Presenting and demonstrating the features and benefits of our
product in order to convince the prospect that their want or needs
can be satisfied.
Sales promotion: Sales promotion relates to short term incentives or activities that
will encourage the purchase or sale of our board game. This will
happen through prototypes to buyers to show them the product. We
will also engage in business promotions, such as trade fairs and toy
fairs to promote our product.
Public relations: Is about building good relations with the stakeholders of our
business by obtaining favourable publicity and building/sustaining a
good corporate image. By building positive and effective
relationships we will grow a satisfied customer base and establish a
good reputation for Wobbly which in turn will lead to more sales.
5.7 - Distribution and Sales
Figure 9 (below) shows the distribution channels of board games in the UK.
Figure 9: Distribution Channels of Board Games in the UK
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Distribution in %
Distribution & Sales
toy fairs/ trade fairs online web small retail stores national stores amazon
16

5.8 - Marketing Mix
Product: Wobbly is a unique product and will be marketed focussing on its
differentiation compared to other board games in the market.
Our product is made from high quality materials which means it will be
reliable and should operate for a very long time without problems. The
game is also hand-made meaning the quality is increased.
Price: The price will be marketed at £24.95, which undercuts electronic board
games such as Monopoly and Lego, while also being an average price
compared to most board games in the industry.
The price was decided based on a mark up from the unit cost. This
ensures we make a profit from every unit sold.
Place: Wobbly will be marketed online, through social media, while also being
marketed on our own website and through the form of a TV advert. The
TV advert has been designed and filmed ourselves which reduces the
costs of the promotion.
Our production and distribution in Manchester is fairly cheap with limited
numbers of staff being paid, and also many different benefits of the
headquarters’ location in Manchester.
Promotion: Our promotion through the TV advert displays the game in action, with a
theme song of Brick by Brick by the Arctic Monkeys. This promotion
method will reach millions of families in the UK who watch TV. This is
very effective marketing as despite the cost, it will be effective in
generating sales in the long term.
17

6.0 - Management Team & Company Structure
6.1 - Management Team
See Appendix 13 - 18 for full CV's
Personal Profiles
Alexander Qualter – Founder
Education
Manchester Metropolitan University (September 2014 - Current)
Business Management First Class Grade
Cardinal Newman College (September 2012 – July 2014)
Business Studies B
Information Technology B
Physical Education C
Work Experience
Games Attendant at Blackpool Pleasure Beach (July 2015 – September 2015)
 Setting and working towards personal revenue goals
 Training new staff
Kitchen Porter at Spago Restaurant (June 2014 – September 2014)
 Developed time management and communication skills, in this fast-paced
environment
 Sustaining a clean kitchen whilst preparing food I learnt to complete tasks quickly
and efficiently and ensured the high standards of the kitchen were maintained
Voluntary Experience and Interests
 Volunteering as Lead Promoter and working within the finance team for the Mind,
Body, Spirit Fair in Lytham
 As Senior Prefect at High school, I took charge of other Prefects ensuring they
were doing their duties, whilst making sure younger students were behaving in
an appropriate manner
18

Ashley Graham – Financial Director
Education
Manchester Metropolitan University (September 2015 – Current)
Business Management 2.1
Ashton Sixth-Form College
Business Management B
Sociology B
Media C
Work Experience
Property Sales Consultant at Express Estates Agency (August 2015 – Current)
 Developed my professionalism, negotiation and communication skills
Sales Consultant – The Interactive Team (May 2015 – August 2015)
 This sales and marketing role required me to hit set targets on a daily basis
whilst building a firm work ethic and gaining a vital understanding of the
marketing industry
Mixologist – Revolution (August 2015 – May 2015)
 Team work
 Speed of service
 People skills
Team Leader – IKEA (August 2012 – August 2014)
 I ran a customer service team of six people
 This required me to become a leader
 Part of the Business School football club who regularly travel to play other
universities, I love being an important part a team focused sport
 Cycling from Manchester to Blackpool for Christies Charity in 2012 & 2013
 Part of Droylsden FC's youth team - Played a fundamental role in helping guide
the team to a league high finish of third.
19

Adam Thompson – Design and IT Specialist
Education
Business Management First Class Degree
Appleton College (September 2012 – July 2014)
Business Studies B
Information Technology B
Physics D
Work Experience
Apple Jacks Adventure Park
 Serving customers at a grill using a cash register, cashing up at the beginning
and end of the day, as well as operating park attractions for guests
 Required confidence and good communication with managers and the public
Thermo Fisher Scientific
 I demonstrated my knowledge and proficiency in the use of Microsoft Excel,
through designing the spreadsheets for the process, and then entering the
relevant data
 I liaised with product line managers in the UK, to check the accuracy of the data
entry before publication
 I am a committed member of a gym and enjoy keeping fit. I currently captain an
11-a-side football team at university in a competitive league, and also enjoy both
watching and playing rugby. I played rugby for 5 years for my local rugby union
side Winnington Park RFC, and in 2012, I won the Most Improved Player Award
while in the same season my team won the Cheshire Shield
 I was a part of the scouting network for 7 years and was awarded the Chief Scout
Gold Award in 2010. During my time with the scouts, I completed the Cheshire
Hike in 2009. I became a patrol leader for 2 years
20

James Oakes – Project Co-ordinator
Education
Denstone College (September 2012 – July 2014)
Art B
English Language B
Business Management C
Work Experience
Administrator at Online LPA Services (August 2012 – Current)
 This role has expanded my understanding of the need to deal efficiently and
accurately with client demands
 I now appreciate how important it is to be professional at all times and have an
excellent product knowledge in order to maximise sales potential as well as
reinforce corporate identity
 IT Skills: Microsoft Office: Word, Excel, PowerPoint, Outlook, Photoshop
 Well-developed written and verbal communication skills
 Co-operative and enthusiastic team member
 Ability to work under my own initiative when necessary
 Football
 Gym
21

Jack Legge – Operations Manager
Education
St Bernard’s Catholic Grammar School (September 2012 – July 2014)
4 A Levels A* - D
Work Experience
Bartender at Verve People (November 2014 – Current)
 Customer service skills and communication with customers and the rest of the
team
Burnham Working Men’s Club (July 2015 – September 2015)
 Inter-personal skills
 Team Work
 Represented my school in football, athletics and cricket.
 Won the Slough Schools Football League in 3 consecutive undefeated seasons
 Runners up in the 2010 Ron Davis Cup with school football team
 Captained Windsor Youth F C within 4 months of joining
 Represented Buckinghamshire in British Inter Counties Youth League in darts
 During my final year of Sixth Form I was a Prefect Team Leader, which involved
organising duties for fellow Prefects and ensuring that Prefects were fulfilling
their duties correctly
 Nominated for House Captain and delivering successful speech to my peers
22

Rory Philbin – Marketing Specialist
Education
Aquinas College (September 2012 – July 2014)
Work Experience
Sales at JD Sports (September 2013 – Current)
 Dealing with front line sales and operational processes including stock check and
delivery
Seasonal Worker at Argos (September 2012 – January 2013)
 Working in the warehouse required teamwork and communication skills
 Football
 Gym
23

6.2 - Skill Profiles and Gaps
Leadership
Marketing
Finances
Operations
IT
Design
Production
Alexander
Qualter
x
Ashley
Graham
x
Adam
Thompson
x
James
Oakes
x
Jack
Legge
x
Rory
Philbin
x
(Gap) x
We currently have a position available in the team for a production worker. It would be
preferable to hire somebody with previous experience so that the excellence of our
product is not compromised.
In order to recruit, we will use social media – Specifically LinkedIn.
6.3 - Ownership and Compensation
Name Position Base
Compensation
Percentage of
Ownership
Personal
Investment
Alexander
Qualter
Founder £0k 16.6% £5k
Ashley Graham Financial
Director
£0k 16.6% £5k
Adam
Thompson
Design and IT
Specialist
£0k 16.6% £5k
James Oakes Project Co-
ordinator
£0k 16.6% £5k
24

Jack Legge Operations
Manager
£0k 16.6% £5k
Rory Philbin Marketing
Specialist
£0k 16.6% £5k
Total £0k 100% £30k
6.4 - Structure of Organisation
Alexander
Qualter
(Founder)
Ashley Graham
(Financial
Director)
Adam Thompson
(Design and IT
Specialist)
Jack Legge
(Operations
Manager)
Production
Worker
Rory Philbin
(Marketing
Specialist)
Gap (CSR and
Company Ethics
Manager)
James Oakes
(Project Co-
ordinator)
25

7.0 - Operations
7.1 - Production
Process
7.2 - Communication Channels
We aim to have many forms of communication in order to sell and stay in close contact
with our customers. Any returned orders for faulty goods or any other issues regarding
the product shall be sent to our office. We are offering a telephone service for customer
support from the hours of 9-5 every day excluding Sunday. This will help grow our
customer satisfaction and create a solid, loyal and respected brand image. We are also
going to create social media pages in order to market our product for free. This is an
extremely effective way of marketing as an estimated 1.038 billion users log into
Facebook each day (Craig Smith, 2016). Therefore, Facebook could help Wobbly
grow as word of mouth is the forefront marketing technique in making small
businesses grow.
7.3 - Resources
The premises will consist of a manufacturing space located at Courtlets House,
Second Floor, 38 King Street West, Manchester, M3 2WZ (see Appendix 19).
The manufacturing premises will be leased at the cost of £330 per calendar month. In
addition, the only machinery that shall be required will be an Epson Stylus Pro 4880
printer, which will be used to print the design of the board game onto the cardboard.
26

An employee will be required to manufacture the product using a job production
process, where products will be produced by hand. It is estimated that 3 units can be
produced per hour. The employee will earn the national minimum wage of £5.30 per
hour (see Appendix 9), factoring labour costs at £1.77 per unit. The employee will
work 8 hours a day for 5 days a week totalling 40 hours a week. As a result, their
weekly wages will amount to £212. In addition, it will also be the employee’s role to
prepare products for shipping, which includes placing the product into mailing bags as
well as printing off and correctly placing postage labels.
7.4 - Shipping costs
Initially, we will purchase a portable label printer, Dymo LabelWriter 450 turbo, as well
as an initial 300 polythene mailing bags with bubble wrap lining for £39.71 (including
delivery). The mailing bags are going to be purchased from www.polybags.co.uk and
will have an individual cost of 0.13p per unit
Furthermore, we have the option of setting up a Royal Mail business account, which will
reduce domestic shipping costs of 1st class parcels by 30p down to £3, reducing
shipping costs by 11%. If a product is required to be posted to the EU, this will cost £6
per parcel (includes trackable updates and proof of delivery) , as displayed on the Royal
Mail price guide (http://www.royalmail.com/sites/default/files/Royal-Mail-Business-Price-
Guide-30-March-2015.pdf).
7.5 - Supplies Imported from China
The copper wire required to link the battery holder and the vibration motor will be
purchased online from Tenflyer via Amazon (see Appendix 1). The cost per roll of
wire is £4.64 (including delivery). Each unit is estimated to require 30cm of wiring.
Furthermore, one roll of wire can be used to manufacture 1016 units, meaning that this
supply has a unit cost of £0.0046 per unit.
The Battery holder cases (see Appendix 10) will be imported in orders of 200 units and
will cost a total of £136.13 (including delivery). This attributes a unit cost of £0.68 each.
The pouches which will be used to store the game pieces are costed out at £63.93 for a
batch off 500 (see Appendix 3). This results in a unit cost of £0.13.
7.6 - Domestically Sourced Supplies
The supplier’s website we have chosen to use for our motors is called ‘Precision Micro
Drivers’. Our motors will cost £3.54 per unit (see Appendix 4), however the cost may
decrease with economies of scale as our company grows. In addition we will be
purchasing twenty cardboard sheets from Amazon at a price of £14.00, with free
delivery. The large A2
27

white card for the printer that we will be purchasing will cost £39.95. This will contain
enough card to supply 66 units, averaging at £0.59 per unit. The building blocks we will
be using cost £4.80 and each unit will contain 80 blocks.
We have bought a printer for a total cost of £570 (see Appendix 12). The cost of Epson
ink in a 220ml cartridge: Online prices average at £61 per cartridge + VAT + Shipping.
Therefore, each print will cost approximately £1.08 (see Appendix 11).
28

8.0 - Product Development Plan
8.1 - Development Status and Tasks
Once the license to create the game has been sanctioned, our product will be ready for
production. We have designed, developed and tested a prototype, and planned the
production methods and packaging.
Conception (September 2015) – Alex Qualter came up with the concept of Wobbly
whilst taking part in a class activity at university. He developed his idea by envisaging
an image of the game and conveying his idea to housemates and classmates.
Prototype (March 2016) – This stage of development was researched effectively where
all materials sourced were based on quality and price. This process ensured the
product met market requirements. The prototype is fully automated with a working
motor, including batteries, and attractive packaging. The game currently stands as a
working prototype.
Testing (March 2016) – The testing phase of development is complete; tests were
designed to challenge durability, reliability and the prototype’s overall performance in
line with market requirements. The prototype passed all tests, and once the license is
granted, it will be ready for market.
Production (January 2017) – We envisage the initial stage of production to take place in
January, so that orders can be met.
8.2 - Challenge and Risks
 If the product license is delayed, the Company cannot begin to produce or trade.
As sufficient time has been granted for the allocation of the license, we anticipate
that this will not be problematical.
 The electrical components the product uses pose a potential risk to the
assembly-line workers. We therefore intend to train personnel in electrical safety
to minimise risk.
 We have factored in to our production cost, sufficient funding to accommodate
any unforeseen expenditure.
 Whilst it is impossible to anticipate the precise number of orders we will receive,
we have sufficient flexibility within the working team to produce enough units to
meet a moderate unexpected peak in sales.
29

8.3 - Costs
We had a budget of £100 for the creation of the prototype and testing. The costs were
as below:
Costs Price
Labour £85
Prototype Materials £10.91
Testing (Batteries) £2
Total £97.91
The labour was based on the UK minimum wage of a 20 year old, working 16 hours
over 2 days. The prototype materials were based on the unit cost of 1 board game, and
the test costs included the batteries used to power the game. The total spend was
£97.91.
8.4 - Intellectual Property
We do not currently have any patents on Wobbly, however we will be seeking to obtain
one during the first year of development and trade.
30

9.0 - Corporate Social Responsibility
Here at Wobbly, we understand the importance of sustainability and as a result we
actively set out to make the world a better place through our vision of sustainable
enterprise. This means that for us, we focus specifically on the three dimensions of the
triple bottom line and ensure we implement strategies to cover all three areas.
Firstly, in terms of economic sustainability, we keep our production local to the UK. This
helps the country’s economy to grow because we contribute to job creation. We also
minimise our imported materials and try to purchase wherever possible directly from EU
countries. Not only does this save on import costs, but it also helps drive the European
economy.
From an environmental perspective, we are very concerned with ensuring our products
do not harm the environment. Wobbly is made from materials and components which
can be easily recycled. Put simply, our cardboard, batteries, and packaging can all be
reused.
Moreover, the socially responsible brand image that we convey, enables Wobbly to
strengthen its relationships with stakeholders, most notably our customers. Indeed, as a
result of Wobbly’s active engagement in corporate social responsibility, we envisage a
positive impact on sales within the UK. Our socially responsible image promotes family
fun and time for bonding through our unique creation. Our game encourages creative
thinking in children, simple construction skills and friendly competition.
Our plan for the future, entails a reinvestment of profits into the local community through
the support of charities and youth programmes. Our vision of the future also includes
investigating ways to further improve our product’s sustainability. This might include
looking at new, more efficient ways of producing the game, as well as growing the
business through sustainable and responsible methods which can benefit the local and
wider community.
31

10.0 - Financial Projections
10.1 - Sources and Uses of Fund Statement
Previous projections in the business plan demonstrate we aim to invest £30,000. To
acquire this figure we have investigated possible sources to assist this fund. Each
member of the team has agreed to initially invest £5000 of personal savings.
This initial funding will go towards purchasing materials to make the units sold in the
first few months of trading. The remainder of the money will go towards renting
office premises, labour of the production team, and the marketing of the product.
10.2 - Profitability Ratios
These ratios assess a company’s ability to generate revenue and profits compared
to relative investment amounts such as capital.
The Return on Sales (ROS) measures the amount of profit made, compared to the
sales revenue of the company. The calculated ROS for Wobbly in 2017 is projected
to be 11.59%. This figure is relatively low, however climbs each year and is
estimated to be 32.79% in 2019. This is a very healthy projection for return on sales
This ratio indicates the gross profit as a percentage of the business’ sales. Gross
profit (%) is on a high growth period between 2017 and 2019. The percentage for
2017 is 18.46% and the average over the 3 years is 38.91%. It is expected to
increase to 59.61% by 2019.
10.3 - Financial Status Ratios
The current ratio of Wobbly for 2017 is 1.20. This ratio is well below the
recommended average of 1.85. This ratio tests the ability of a company to cover
their short term liabilities with their short term assets. However we sit on a large
inventory of stock and therefore should not worry too much about having a low ratio
for the time being. This ratio is set to decrease ever slightly, however the figure is
relatively stable.
The debt ratio is also very stable with an average across the 3 years of 0.85 and the
range between the numbers of 0.04.
Figure 10: Ratio Analysis
32

BALANCE SHEETS
Year 2019 2018 2017 2016
ASSETS
Current Assets
Cash 200,847 162,235 138,533 30,000
Stock 23,703 46,158 41,168 -
Debtors - - - -
Total Current Assets 224,550 208,393 179,700 30,000
Fixed Assets
Property - - - -
Machinery 570 570 570 -
Total Fixed Assets 570 570 570 -
TOTAL ASSETS 225,120 208,963 180,270 -
MEMBERS EQUITY & LIABILITIES
Members Equity (Shares & Reserves)
Share Capital 30,000 30,000 30,000 30,000
Shareholders Funds 30,000 30,000 30,000 30,000
CRS DUE > 12 MONTHS
Loan Capital - - - -
Total LT Liabilities - - - -
CURRENT LIABILITIES
Expenses 195,120 178,393 150,270 -
Overdraft - - - -
Total Current Liabs 195,120 178,393 150,270 -
TOTAL EQUITY & LIABILITIES 225,120 208,393 180,270 30,000
2019 2018 2017 2016
Current Ratio 1.15 1.17 1.20 N/A
Debt Ratio 0.87 0.85 0.83 N/A
Net Income 65,849.90£ 27,045.90£ 12,576.30£ £-
Total Capital 30,000.00£ 30,000.00£ 30,000.00£ 30,000.00£
Net Worth 30,000.00£ 30,000.00£ 30,000.00£ 30,000.00£
10.4 - Balance Sheet
33

MONTHLY CASHFLOW FORECAST - YEAR 1
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Opening Balance £- 28,987.40£ 28,544.80£ 28,102.20£ 27,659.60£ 27,217.00£ 26,774.40£ 26,331.80£ 25,889.20£ 26,694.10£ 27,499.00£ 39,531.40£
Receipts
Cash From Sales 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 7,485.00£ 7,485.00£ 18,712.50£ 24,950.00£
Cash From Debtors £- £- £- £- £- £- £- £- £- £- £- £-
Sale Of Assets £- £- £- £- £- £- £- £- £- £- £- £-
Capital 30,000.00£ £- £- £- £- £- £- £- £- £- £- £-
Total Receipts 36,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 7,485.00£ 7,485.00£ 18,712.50£ 24,950.00£
Payments
Suppliers 5,455.00£ 5,455.00£ 5,455.00£ 5,455.00£ 5,455.00£ 5,455.00£ 5,455.00£ 5,455.00£ 5,455.00£ 5,455.00£ 5,455.00£ 5,455.00£
Wages 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£
Drawings £- £- £- £- £- £- £- £- £- £- £- £-
Rent 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£
Phone Line/Internet 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£ 10.00£
Other 570.00£ £- £- £- £- £- £- £- £- £- £- £-
Total Payments 7,250.10£ 6,680.10£ 6,680.10£ 6,680.10£ 6,680.10£ 6,680.10£ 6,680.10£ 6,680.10£ 6,680.10£ 6,680.10£ 6,680.10£ 6,680.10£
Closing Bank Balance 28,987.40£ 28,544.80£ 28,102.20£ 27,659.60£ 27,217.00£ 26,774.40£ 26,331.80£ 25,889.20£ 26,694.10£ 27,499.00£ 39,531.40£ 57,801.30£
Opening Balance 57,801.30£ 63,696.30£ 65,433.20£ 67,170.10£ 68,907.00£ 70,643.90£ 72,380.80£ 74,117.70£ 75,854.60£ 79,697.50£ 83,540.40£ 93,701.30£
Receipts
Cash From Sales 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 11,227.50£ 11,227.50£ 22,455.00£ 27,445.00£
Cash from debtors £- £- £- £- £- £- £- £- £- £- £- £-
Sale Of Assets £- £- £- £- £- £- £- £- £- £- £- £-
Capital £- £- £- £- £- £- £- £- £- £- £- £-
Total Receipts 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 11,227.50£ 11,227.50£ 22,455.00£ 27,445.00£
Payments
Suppliers £- 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 4,909.50£ 4,909.50£ 9,819.00£ 12,001.00£
Wages £- 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£
Drawings 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£
Rent 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£
Other £- £- £- £- £- £- £- £- £- £- £- £-
Total Payments 1,590.00£ 5,748.10£ 5,748.10£ 5,748.10£ 5,748.10£ 5,748.10£ 5,748.10£ 5,748.10£ 7,384.60£ 7,384.60£ 12,294.10£ 14,476.10£
Opening Balance 106,670.20£ 117,555.20£ 124,282.10£ 131,009.00£ 137,735.90£ 144,462.80£ 151,189.70£ 157,916.60£ 164,643.50£ 175,971.40£ 187,299.30£ 203,697.70£
Receipts
Cash From Sales 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 18,712.50£ 18,712.50£ 28,692.50£ 34,930.00£
Cash From Debtors £- £- £- £- £- £- £- £- £- £- £- £-
Sale Of Assets £- £- £- £- £- £- £- £- £- £- £- £-
Capital £- £- £- £- £- £- £- £- £- £- £- £-
Total Receipts 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 18,712.50£ 18,712.50£ 28,692.50£ 34,930.00£
Payments
Suppliers £- 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 4,909.50£ 4,909.50£ 9,819.00£ 12,001.00£
Wages £- 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£ 885.10£
Drawings 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£ 1,250.00£
Rent 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£ 330.00£
Other £- £- £- £- £- £- £- £- £- £- £- £-
Total Payments 1,590.00£ 5,748.10£ 5,748.10£ 5,748.10£ 5,748.10£ 5,748.10£ 5,748.10£ 5,748.10£ 7,384.60£ 7,384.60£ 12,294.10£ 14,476.10£
10.5 - Cash Flow
34

P&L FORECAST - WOBBLY - YEAR1
SALES INCOME 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 6,237.50£ 7,485.00£ 7,485.00£ 18,712.50£ 24,950.00£
Cost of sales (variable cost)
Units Produced 500 500 500 500 500 500 500 500 500 500 500 500
Opening Stock (Per Unit) 500 250 500 750 1000 1250 1500 1750 2000 2200 2400 2150
Closing Stock (Per Unit) 250 500 750 1000 1250 1500 1750 2000 2200 2400 2150 1650
Units Sold 250 250 250 250 250 250 250 250 300 300 750 1000
Purchases 2,727.50£ 2,727.50£ 2,727.50£ 2,727.50£ 2,727.50£ 2,727.50£ 2,727.50£ 2,727.50£ 3,273.00£ 3,273.00£ 8,182.50£ 10,910.00£
Total Direct Costs 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£
GROSS PROFIT 1,137.50-£ 1,137.50-£ 1,137.50-£ 1,137.50-£ 1,137.50-£ 1,137.50-£ 1,137.50-£ 1,137.50-£ 110.00£ 110.00£ 11,337.50£ 17,575.00£
Overheads (operating cost)
Rent (All Included) 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£ 330.00-£
Phone Line/Internet 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£ 10.00-£
Employee Costs (500/3x5.30) 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£
Other Overheads -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ -£
Drawings -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ -£
Total Additional Costs 1,225.10-£ 1,225.10-£ 1,225.10-£ 1,225.10-£ 1,225.10-£ 1,225.10-£ 1,225.10-£ 1,225.10-£ 1,225.10-£ 1,225.10-£ 1,225.10-£ 1,225.10-£
NET PROFIT/LOSS 2,362.60-£ 2,362.60-£ 2,362.60-£ 2,362.60-£ 2,362.60-£ 2,362.60-£ 2,362.60-£ 2,362.60-£ 1,115.10-£ 1,115.10-£ 10,112.40£ 16,349.90£
Porfit Margin 2,362.60-£ 4,725.20-£ 7,087.80-£ 9,450.40-£ 11,813.00-£ 14,175.60-£ 16,538.20-£ 18,900.80-£ 20,015.90-£ 21,131.00-£ 11,018.60-£ 5,331.30£
SALES INCOME 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 7,485.00£ 11,227.50£ 11,227.50£ 22,455.00£ 27,445.00£
Units Produced 0 500 500 500 500 500 500 500 500 500 500 500
Units Sold 300 300 300 300 300 300 300 300 450 450 900 1100
Purchases 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 4,909.50£ 4,909.50£ 9,819.00£ 12,001.00£
Total Direct Costs -£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£
GROSS PROFIT 7,485.00£ 110.00£ 110.00£ 110.00£ 110.00£ 110.00£ 110.00£ 110.00£ 3,852.50£ 3,852.50£ 15,080.00£ 20,070.00£
Employee Costs (500/3x5.30) -£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£
Other Overheads -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ -£
Drawings 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£
NET PROFIT/LOSS 5,895.00£ 2,365.10-£ 2,365.10-£ 2,365.10-£ 2,365.10-£ 2,365.10-£ 2,365.10-£ 2,365.10-£ 1,377.40£ 1,377.40£ 12,604.90£ 17,594.90£
Porfit Margin 5,895.00£ 3,529.90£ 1,164.80£ 1,200.30-£ 3,565.40-£ 5,930.50-£ 8,295.60-£ 10,660.70-£ 9,283.30-£ 7,905.90-£ 4,699.00£ 22,293.90£
SALES INCOME 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 12,475.00£ 18,712.50£ 18,712.50£ 28,692.50£ 34,930.00£
Units Produced 0 650 650 650 650 650 650 650 650 650 650 650
Units Sold 500 500 500 500 500 500 500 500 750 750 1150 1400
Purchases 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 3,273.00£ 4,909.50£ 4,909.50£ 9,819.00£ 12,001.00£
Total Direct Costs -£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£ 7,375.00£
GROSS PROFIT 12,475.00£ 5,100.00£ 5,100.00£ 5,100.00£ 5,100.00£ 5,100.00£ 5,100.00£ 5,100.00£ 11,337.50£ 11,337.50£ 21,317.50£ 27,555.00£
Employee Costs (500/3x5.30) -£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£ 885.10-£
Other Overheads -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ -£
Drawings 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£ 1,250.00-£
NET PROFIT/LOSS 10,885.00£ 2,624.90£ 2,624.90£ 2,624.90£ 2,624.90£ 2,624.90£ 2,624.90£ 2,624.90£ 8,862.40£ 8,862.40£ 18,842.40£ 25,079.90£
Porfit Margin 10,885.00£ 13,509.90£ 16,134.80£ 18,759.70£ 21,384.60£ 24,009.50£ 26,634.40£ 29,259.30£ 38,121.70£ 46,984.10£ 65,826.50£ 90,906.40£
10.6 - Profit and Loss
35

10.7 - Conclusion
Wobbly seems to have a healthy start to the business world. The ratios show an
increasing trend of rising financial ratios. ROS suggests that the company is
efficient at generating a profit from the sales revenue, which means our overheads
have been well thought out. Using the Gross Profit %, you can see that our profits
are also increasing with the projected rise in sales. This means that due to
economies of scale, Wobbly is benefiting from lower costing.
The financial status ratios, seem to suggest that the business is lower than the
average current ratio. The low current ratio means that there is a great risk that the
business may not be able to pay off short term debts because it does not have
enough assets that it can quickly liquidate, however, with the business sitting on a
large amount of stock, our assets are reasonably liquid provided the business is still
making sales and hitting targets.
Overall, I would say that Wobbly is making a steady and healthy start however it is
hard to judge the financial stability of a company in its first year of trading, and that
there are still many risks faced by the company.
36

11.0 - Milestones and Exit Planning
11.1 - Goals and Visions
Our vision for the next decade is growing Wobbly to a market leader. This
would be gaining market share, which would ensure that ‘Wobbly would be a
1st choice for family fun’.
Goals:
 After 12 months our revenue must be greater than £100,000
 After 3 years we aim to control 0.5% of the toys and games industry
 After 5 years we aim to triple the number of employees
 After 10 years we aim to control 2.5% of the toys and game industry
11.2 - Strategies
Our main strategy is Expansion. We aim to do this through adding new lines
to our existing product catalogue. Some of our initial ideas include:
 Different coloured and shaped blocks
 Branded clothing merchandise
 Limited edition Wobbly board sets
 Wobbly on the go (Travel Edition)
 Wobbly application for iPhone and Android
Another expansion method would be increasing our target market by selling
Wobbly overseas. This would also mean that our production capacity would
have to increase, through employing more production workers in Manchester,
and investing more money in larger scale printers. Although this may cost a
lot of money, the potential revenue and profits earned from this move will be
economically worth the cost in the long term.
In aid of the main strategy, we will employ a promotion and support strategy,
through investing and intensifying our marketing, with the hope of increasing
our sales. Our ideas for this strategy include:
 Update TV advert
 Billboards and Bus stops
 In store ‘Wobbly’ experience
 Invest in R&D in order to develop trending modern products
 Update website with new interactive features
37

11.3 - Milestones
Event Specifics Date Completed
Initial Finance
Secured
Finance secured from personal
savings.
February 2016
Prototype
Completed and
Tested
Wobbly board game fully built and
passed all testing
March 2016
Production
Employee Hired
Hire and train employee to help
manufacture Wobbly
November 2016
Obtain Office
Lease
Move materials in and be ready for
production
December 2016
Obtain Product
License
Have Wobbly approved and fully
licensed
January 2017
First Product
Produced and
Shipped
Obtain materials and proceed with
production before fulfilling the first
order of Wobbly
January 2017
First Profits
Calculated
Calculate the finances for the first
month of trading
February 2017
Sell 1000 Units We aim to sell 1000 units by the end of
April
April 2017
11.4 – Exit Planning
Each of the initial team who invested and developed Wobbly have an equal
stake in the business. Therefore an agreement must be made between the
team, as a whole, as to the official exit plan for Wobbly. It is unclear for now
as to what exact strategy we will use to exit the business.
Some partners in the business may buy out the stakes in which other have in
Wobbly. The company could be sold to an external businessman or company
in return for a large sum. In this case, the sum would be equally shared
based on shares in the business.
38

Appendix
Appendix 1: Industry Size of Toys and Games Industry in the UK
Appendix 2: Wire for Wobbly Production
Source: http://www.amazon.co.uk/Tenflyer-Plated-Copper-Circuit-
Jumper/dp/B00RYS2Q4E/ref=sr_1_1?s=diy&ie=UTF8&qid=1455278350&sr=1-1&keywords=circuit+cable
39

Appendix 3: Coloured Bags for Wobbly Production
Source: http://www.dhgate.com/product/wholesale-random-colour-microfiber-two-
pull/372250198.html#s1-14-1b;searl|1033957736
Appendix 4: Motor for Wobbly Production
Source: https://catalog.precisionmicrodrives.com/order-parts/product/304-101-4mm-vibration-motor-
11mm-type
40

Appendix 5: Cardboard for Wobbly Production
Source: http://www.amazon.co.uk/dp/B00O2XN9EA?psc=1
Appendix 6: White Card for Wobbly Production
Source: http://www.bakerross.co.uk/large-a2-white-card-1?gclid=CNGZlq-Ii8sCFYu6GwodlioFiA
41

Appendix 7: Blocks for Wobbly Production
Source: http://www.ebay.co.uk/itm/Wooden-Towering-Blocks-Tumbling-Tower-Tumblin-Towers-Mini-
Jenga-Blocks-Wooden-/201349864872?hash=item2ee1631da8:g:4OIAAOSwv0tVVIg3
Appendix 8: Stamp for Wobbly Production
Source: https://www.stamps4u.co.uk/trodat-id-protection-
stamp?nfxsid=56cad8781c53c1456134264&gclid=CPiLu-yKi8sCFbEW0wodnR0Gyw
42

Appendix 9: National Minimum Wage
Source: https://www.gov.uk/minimum-wage-calculator-
employers/y/current_payment/not_an_apprentice/20/30/140.0/718.2/0.0/no
Appendix 10: Battery Holder for Wobbly Production
Source: http://www.rapidonline.com/electrical-power/trupower-bh-421-3p-2-x-aaa-pcb-battery-holder-18-
2925?&gclid=cjez1o_fi8scfrvmgwodq3aiha
43

Appendix 11: Ink Costs for Wobbly Production
Source: http://www.imaging-expert.co.uk/New/The-estimated-running-costs-of-printers.html
Appendix 12: Epson 4880 Printer
Source: http://www.athema.co.uk/epson-stylus-pro-4800-a2-colour-plotterprinter-c11c593001bc-
refurbished-p-1312.html?gclid=CI7BuZHAncsCFQfnwgodFewFVg
44

Appendix 13: Ashley Graham CV
46

Appendix 14: Alexander Qualter CV
48

Appendix 15: James Oakes CV
50

Appendix 16: Rory Philbin CV
52

Appendix 18: Adam Thompson CV
56

Appendix 19: Office Location in Manchester City Centre
57

Figure 20: Wobbly Logo
Figure 21: Wobbly Colour Logo
58

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