Facility Management

INTRODUCTION

Facilities management is the integration of processes within an organisation to maintain and develop the agreed services which support and improve the effectiveness of its primary activities. Facilities management encompasses multi-disciplinary activities within the built environment and the management of their impact upon people and the workplace.

Effective facilities management, combining resources and activities, is vital to the success of any organisation. At a corporate level, it contributes to the delivery of strategic and operational objectives. On a day-to day level, effective facilities management provides a safe and efficient working environment, which is essential to the performance of any business – whatever its size and scope.

Facilities management is of significance to organisations of all kinds and, as an emerging discipline, it has become the focus for the important issues of best value and customer satisfaction within the management of supporting services. Well-managed services enable an organisation to function at its most efficient and effective level, offering real added value improvements to the organisation’s core business. Facilities management is being elevated to a strategic level of importance and is therefore being given the task and opportunity to contribute to business success and to aid the delivery of competitive advantage. Indeed, in recent years, the range of services covered within the remit of facilities management has become more complex, as facilities management has moved into the core operational functions of client organisations. It is necessary for facilities management service providers and their customers to acknowledge the role of facilities management in the organisation’s strategic operations. This article presents the core concepts of facilities management with particular attention being given to the role of outsourcing.

Facility management (FM) is concerned with operating and maintaining commercial and industrial properties. This function may be performed by in-house corporate staff or by an outside firm specializing in facilities management. Facilities may include sports complexes, jails, hospitals, hotels, and retail establishments, but in business the term is used most often to describe office buildings and factories. Responsibilities include providing janitorial and maintenance services, security, engineering services, and managing telecommunications and information systems. The facility manager’s job is to create an environment that encourages productivity, is safe, is pleasing to clients and customers, meets building regulations, and is efficient.

Facility management has traditionally been associated with janitorial services, mailrooms, and security. Since the mid-20th century, though, facility management has evolved into a more comprehensive set of business functions, including an emphasis on deriving as much value from the facility as possible. Factors driving the complexity of the facility manager’s job are numerous. For example, facilities have become much larger and more complicated, often relying on computerized and electronic support systems that require expertise to operate and repair.

The end result of new technology, efficiency pressures, and government regulations has been an expansion of the facility management role. Facility managers today are often highly trained and educated and must wear several hats. Depending on the size of the complex, he or she will likely be responsible for directing a facility management and maintenance staff. In addition to overseeing the important duties related to standard janitorial, mailroom, and security activities, he may also be responsible for providing engineering and architectural services, hiring subcontractors, maintaining computer and telecommunications systems, and even buying, selling, or leasing real estate or office space.

For example, suppose that a company has decided to consolidate five branch offices into a central computerized facility. It may be the facility manager’s job to plan, coordinate, and manage the move. He may have to find the new space and negotiate a purchase. And he will likely have to determine which furniture and equipment can be moved to the new office, and when and how to do so with a minimal disruption of the operation. This may include negotiating prices for new furniture and equipment or balancing needs with a limited budget. The facility management department may also furnish engineering and architectural design services for the new space, and even provide input for the selection of new computer and information systems. Of import will be the design and implementation of various security measures and systems that reduce the risk of theft and ensure worker safety.

DEFINITION OF FACILITIES MANAGEMENT

Facilities management can be defined as an integrated approach to operating, maintaining, improving and adapting the buildings and infrastructure of an organisation in order to create an environment that strongly supports the primary objectives of that organisation’ (Adapted from Barrett and Baldry, 2003)

Facilities management can also be seen as the practice of coordinating the physical workplace with the people and work of the organisation. It integrates the principles of business administration, architecture and the behavioural and engineering sciences’ (The British Institute of Facilities Management – BIFM)

Facilities management can accordingly be summarised as creating the optimal environment for the organisation’s primary functions, taking an integrated view of the business infrastructure, and using this to deliver customer satisfaction and best value through support for and enhancement of the core business. Thus, facilities management can be described as something that will:

• Deliver effective and responsive services;
• Enable changes in the use of space in the future;
• Sweat the assets, i.e. make them highly cost effective;
• Create competitive advantage for the organisation’s core business; and
• Enhance the organisation’s culture and image.

Typical approach to facilities management

There are common themes and approaches to facilities management, regardless of the size and location of the real estate, although these may not necessarily result in common solutions. In some cases, real estate services are outsourced (for example, contracted out) and in others retained in house, for good reason in each case. Some organisations operate what might be described as a mixed economy, where certain services, even the same ones, are outsourced as well as retained in house. There is no general rule, rather a need to define the thinking, practice and procedures that will lead to best value for an organisation.

Outsourcing: The contracting out of the facilities management services required by an organisation to external service providers.

In-house provision: Supply of facilities management services within the client organisation – the in-house team may or may not be an independent body.

 Role of the facilities manager

The FM market is horizontally (cross-functionally) oriented. It currently represents about 5% of global GDP. Its relationship to the human resources, real estate and information technology functions of an enterprise has increased. The number one priority of a Facility manager (FM) is that of Life Safety.

Facility managers have to operate at two levels: strategic-tactical and operational. In the former case, clients, customers and end-users need to be informed about the potential impact of their decisions on the provision of space, services, cost and business risk. In the latter, it is the role of a facility manager to ensure corporate and regulatory compliance plus the proper operation of all aspects of a building to create an optimal, safe and cost effective environment for the occupants to function.

THE MAJOR AREAS IN FACILITIES MANAGEMENT

Within this fast growing professional discipline, facilities managers have extensive responsibilities for providing, maintaining and developing myriad services. These range from property strategy, space management and communications infrastructure to building maintenance, administration and contract management.

The following are major areas in facilities management in which facility manager is expected to perform his or her duty to his/her client:

1. Health and safety: The FM department in an organization is required to control and manage many safety related issues. Failure to do so may lead to injury, loss of business, prosecution and insurance claims; the confidence of customers and investors in the business may also be shaken by adverse publicity.
2. Fire safety: The threat from fire carries one of the highest risk to loss of life, and the potential to damage or shut down a business. The facilities management department will have in place maintenance, inspection and testing for all of the fire safety equipment and systems, keeping records and certificates of compliance.
3. Security: Security to any organization is necessary to protect the employees and the business and this often comes under the control of the facilities management department, in particular the maintenance of the hardware. Manned guarding may be under the control of a separate department.
4. Maintenance, testing and inspections: Maintenance, testing and inspection schedules are required to ensure that the facility is operating safely and efficiently, to maximize the life of equipment and reduce the risk of failure. There are also statutory obligations to be met. The work is planned, often using a computer-aided facility management system.
5. Cleaning: Cleaning operations are often undertaken out of business hours, but provision may be made during times of occupations for the cleaning of toilets, replenishing consumables (toilet rolls, soap, etc.) plus litter picking and reactive response. Cleaning is scheduled as a series of “periodic” tasks: daily, weekly, monthly, etc.
6. Operational: The facilities management department has responsibilities for the day-to-day running of the building, these tasks may be outsourced or carried out by directly employed staff. This is a policy issue, but due to the immediacy of the response required in many of the activities involved the facilities manager will often require daily reports or an escalation procedure.

Some issues require more than just periodic maintenance, for example those that can stop or hamper the productivity of the business or that have safety implications. Many of these are managed by the facilities management “help desk” that staff are able to be contacted either by telephone or email. The response to help desk calls are prioritized but may be as simple as too hot or too cold, lights not working, photocopier jammed, coffee spills, vending machine problems, etc.

Help desks may be used to book meeting rooms, car parking spaces and many other services, but this often depends on how the facilities department is organised. It may be split into two sections often referred to as “soft” and “hard” services. Soft would include reception, post room, cleaning, etc. and hard the mechanical, fire and electrical services.

1. Tendering: The facilities management team will seek to periodically re-tender their contracts, or at the very least bench mark them to ensure they are getting value for money. For this to happen it is necessary to have an up to date list of equipment or assets to send out with the tenders. This information is often retained on the same computer as the maintenance schedule and updating may be overlooked as equipment gets changed, replaced or new items are installed. The asset register is also an important tool for budgeting, used for life cycle costings and for capital expenditure forecasting. To conclude, tendering is therefore an important aspect of his duties.
2. Commercial property management: Building may be owned by the occupier or leased. Leased properties will be subject to periodic rent reviews. Commercial leases can also be subject to sub-tenancies, and may require options to be renewed.
3. Business continuity planning: All organizations should have a continuity plan so that in the event of a fire or major failure the business can recover quickly. In large organizations it may be that the staff move to another site that has been set up to model the existing operation. The facilities management department would be one of the key players should it be necessary to move the business to a recovery site.
4. Space allocation and changes: In many organizations, office layouts are subject to frequent changes. This process is referred to as churn rate, expressed as the percentage of the staff moved during a year. These moves are normally planned by the facilities management department using computer-aided design. In addition to meeting the needs of the business, compliance with statutory requirements related to office layouts include: the minimum amount of space to be provided per staff member; fire safety arrangements; lighting levels; signage; ventilation; temperature control and welfare arrangements such as toilets and drinking water. Consideration may also be given to vending, catering or a place where staff can make a drink and take a break from their desk.

CONCLUSION

If buildings and other facilities are not managed, they can begin to impact upon an organisation’s performance. Conversely, buildings and facilities have the potential to enhance performance by contributing towards the provision of the optimal work and business environment. There is no universal approach to managing facilities. Each organisation – even within the same sector – will have different needs. Understanding those needs is the key to effective facilities management measured in terms of providing best value. Furthermore, once established the facilities management strategy should be a cornerstone of an organisation’s accommodation strategy, not adjunct to it.

In choosing the most appropriate solution consideration must be given to direct and indirect costs of both in-house and outsourced service provision so that a complete financial picture is gained, with comparison made on a like-for-like basis to enable a decision to be taken on best value grounds. A long-term and integrated view of service provision is essential to effective facilities management.

REFERENCES

Atkin, B. and Brooks, A. (2015) Total Facility Management. Fourth edition, Oxford: Wiley-Blackwell.

Barrett, P.S. and Baldry, D. (2003) Facilities Management: Towards Best Practice. Second edition. Oxford: Blackwell Science.

Booty, F. (ed.) (2009) Facilities management handbook. Fourth edition, Oxford: Elsevier Butterworth-Heinemann.

Booty, Frank (2010). Facilities Management. Amsterdam: Elsevier. p. 295.

Brian Atkins; Adrian Brooks (2009). Total Facilities Management (3rd ed.). Chichester UK: Wiley Blackwell. p. 119 to 130.

Cook, Robbie. “Facilities Management & Design for the 21 st Century.” Site Selection, March 1999.

Cotts, David G. The Facility Management Handbook 2nd ed. New York: AMACOM, 1998.

David Cotts; Kathy Roper; Richard Payant (2010). The Facility Management Handbook – Organizing the Department. New York: AMACOM. p. Chapter 2.

Gorden, Robert (2008). Start and Run a Successful Cleaning Business. Oxford: How to Books. p. 74. ISBN 9781845282844.

 

Discuss the method of assessment like to be suitable for the following types of property: cinemars, offices, shops, storage premises, factory and warehouses, private schools and petrol station.

INTRODUCTION

Property assessment for taxation purposes and its administration is a complex and technical process that is vital to the financial health of local government. Property Assessment is the process of establishing a dollar value for property for property tax purposes. Property tax is an “ad valorem” tax based on the principle that the amount of tax paid should depend on the value of the property owned. Although income and sales taxes are the main sources of revenue for the provincial and federal governments, property tax remains the major source of local government revenue. Generated from within the community, property tax helps to finance such local government services as garbage collection, water and sewer, parks and leisure and fire protection.

Property assessments are based on the method that represents the property’s best use and highest value.  Values are determined with the assistance of a computer-assisted mass appraisal (CAMA) system.  PVA research, local market and property characteristic data are applied to CAMA.  CAMA utilizes the data to produce assessments at current fair market value.  Depreciation factors and other adjustments that influence value are also applied in CAMA when applicable.  CAMA is closely monitored by PVA for quality control.

METHODS OF ASSESSMENT SUITABLE FOR THE PROPERTY LIKE CINEMAS, OFFICES, SHOPS, STORAGE PREMISES, FACTORY AND WAREHOUSES, PRIVATE SCHOOLS AND PETROL STATION

The first step in assessing is to determine a property’s market value. To estimate market values, the assessor must be familiar with the local real estate market.

A property’s value can be estimated in three different ways:

• Market (Sales) Approach
• Cost Approach
• Income (or Capitalization) Approach

Market (Sales) Approach:  The market (sales) approach to value is based on recent valid (fair arm’s-length transactions) sales that represent current fair market value.  Property sales in Jefferson County are researched annually and valid sales are verified.  When a sale price is accepted by the PVA as a valid sale, it represents the property value for approximately 2 years.  All valid sales are compiled and applied into CAMA.  CAMA utilizes valid sales and property characteristics such as location (or area), lot size, and square footage of improvements (buildings, structures, paving, fencing, etc.), age and condition, etc. in order to value comparable properties at current fair market value.  Depreciation factors and other adjustments that influence value are also applied in CAMA when applicable.  The market (sales) method of value is best suitable for assessing the same type of properties that periodically transfer in the local market, and for assessing parcels of land without improvements.

Cost Approach:  The cost approach to value is based on the principle of substitution, for example, a rational, informed purchaser would pay no more for a property than the cost of building a replacement with similar function.  The cost approach seeks to determine the replacement cost new of an improvement (buildings, structures, paving, fencing, etc.), less depreciation, plus land value. CAMA contains cost tables from Marshall & Swift, an industry leader in building cost guides. Valuation by the cost approach method ensures assessments are applied fairly and equitably to all commercial properties.  The cost method of value is suitable for assessing all commercial properties although older properties are more subjective to adjustments such as age, depreciation and estimates of functional and economic obsolescence.

Income (or Capitalization) Approach:  The income (or capitalization) approach to value estimates the value of a property based on its income produced.  The investor who purchases an income producing property is essentially trading present dollars for an income stream of future dollars, plus the return of the initial investment.  The approach relies on the economic value of a property with regard to investment decisions and desires for income flow from operation of the property.  The process of converting a series of anticipated income into present value is capitalization.  Capitalization transforms net operating income produced by a property into the property value.  The income (or capitalization) method of value is best suitable for assessing income producing properties.

PVA field inspections are an important part of achieving equitable property assessments.  The inspection verifies property identification and ensures a correct listing of property characteristics.

PVA field inspectors are authorized by statute to inspect real property in Jefferson County (KRS 132.450 (1)).  The PVA is required by statute to inspect property at least once every 4 years (KRS 132.690 (1)).

A PVA field inspection is assigned when a property sells, a building or wrecking permit is issued, a property is damaged, or by request of the property owner.  Field inspections are made Monday through Friday between 8:00 a.m. and 4:00 p.m.  Field inspectors can be identified by their PVA identification badge and/or shirt or jacket with PVA logo.  The field inspector’s vehicle can be identified by a magnetic sign that displays PVA logo.  Upon arriving at an inspection site, the field inspector first announces his arrival to the property owner and/or occupant.  In the absence of the property owner, the PVA inspector has the legal right to complete an exterior inspection.  However, with the exception of buildings under construction or not yet occupied, an interior inspection of the nonpublic portions of commercial buildings shall not be conducted in the absence or without permission of the property owner (KRS 132.220 (3)).  Upon completion, confirmation of the inspection is left at the property.  The property owner’s assistance during an inspection results in a more accurate inspection and resulting property assessment.  Measurements of exterior dimensions of improvements are made, characteristics are identified and listed, conditions are determined and recorded, photos are taken and improvements are sketched.  Exterior measurements of property improvements are made based on standards by The American National Standards Institute (ANSI).  All information collected at the inspection is entered into the property record stored in the CAMA system.

Marketing Management Activities

Marketing Management Activities

INTRODUCTION

Marketing management is the organizational discipline which focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organization and on the management of a firm’s marketing resources and activities.

Globalization has led firms to market beyond the borders of their home countries, making international marketing highly significant and an integral part of a firm’s marketing strategy.

Marketing managers are often responsible for influencing the level, timing, and composition of customer demand accepted definition of the term. In part, this is because the role of a marketing manager can vary significantly based on a business’s size, corporate culture, and industry context. For example, in a large consumer products company, the marketing manager may act as the overall general manager of his or her assigned product.

To create an effective, cost-efficient marketing management strategy, firms must possess a detailed, objective understanding of their own business and the market in which they operate.

In analyzing these issues, the discipline of marketing management activities often overlaps with the related discipline of strategic planning.

Structure Marketing management employs various tools from economics and competitive strategy to analyze the industry context in which the firm operates. These include Porter’s five forces, analysis of strategic groups of competitors, value chain analysis and others. Depending on the industry, the regulatory context may also be important to examine in detail.

In competitor analysis, marketers build detailed profiles of each competitor in the market, focusing especially on their relative competitive strengths and weaknesses using SWOT analysis. Marketing managers will examine each competitor’s cost structure, sources of profits, resources and competencies, competitive positioning and product differentiation, degree of vertical integration, historical responses to industry developments, and other factors.

DEFINITION OF MARKETING MANAGEMENT ACTIVITIES

Marketing management activities can means management of all the activities related to marketing or in other words we can say, it refers to planning, organizing, directing and controlling the activities which result in exchange of goods and services.

Philip Kotler defined marketing management as “The art and science of choosing target markets and getting, keeping and growing customers through creating delivering and communicating superior customer values of management”.

Marketing management often finds it necessary to invest in research to collect the data required to perform accurate marketing analysis. As such, they often conduct market research (alternately marketing research) to obtain this information.

Some of the important activities involved in marketing management activities are as follows:

If we break up this definition we can say the marketing management involves the following activities:

1. Choosing a Target Market: The activities of marketing management begin by finalising the target market for example; target market for medicine manufacturer is hospital, doctors, chemist shops, etc.
2. Growing Customers in Target Market: After choosing a target market the next step in marketing process is to take steps to increase number of customers by analysing the needs, wants and demand of customers and giving due importance to the satisfaction of customers.
3. Creating Superior Value: The next step in marketing management process is to create some special value in the products to make your product better than competitor’s product. Special values can be added by offering various schemes for example, giving free insurance with car.

Most of the time marketing managers aim at increasing demand but sometimes they have to constrain or cut down demand due to shortage of supply by reducing expenses on promotion etc. The situation of reducing the demand was very common before 1990 (before liberalisation and privatisation). Now the main motive of marketing manager is to manage the demand effectively.

 

Pavement

Pavement

 INTRODUCTION

Pavement is a durable surfacing of a road, airstrip, or similar area. The primary function of a pavement is to transmit loads to the sub-base and underlying soil. Modern flexible pavements contain sand and gravel or crushed stone compacted with a binder of bituminous material, such as asphalt, tar, or asphaltic oil. Such a pavement has enough plasticity to absorb shock. Rigid pavements are made of concrete, composed of coarse and fine aggregate and portland cement, and usually reinforced with steel rod or mesh.

 

FLEXIBLE PAVEMENT

Flexible pavement can be defined as the one consisting of a mixture of asphaltic or bituminous material and aggregates placed on a bed of compacted granular material of appropriate quality in layers over the subgrade. Water bound macadam roads and stabilized soil roads with or without asphaltic toppings are examples of flexible pavements.

The design of flexible pavement is based on the principle that for a load of any magnitude, the intensity of a load diminishes as the load is transmitted downwards from the surface by virtue of spreading over an increasingly larger area, by carrying it deep enough into the ground through successive layers of granular material.

Fig: Flexible Pavement Cross-section

Thus for flexible pavement, there can be grading in the quality of materials used, the materials with high degree of strength is used at or near the surface. Thus the strength of subgrade primarily influences the thickness of the flexible pavement.

 Distribution of load to avoid permanent deformation in a flexible pavement

Base: higher strength material than subbase, often a cementing material is used. Cementing material can be portland cement or asphaltic cement, or other material.

Open-Graded: An open-graded HMA mixture is designed to be water permeable (dense-graded and SMA mixes usually are not permeable). Open-graded mixes use only crushed stone (or gravel) and a small percentage of manufactured sands. There are two types of open-graded mixes typically used in the U.S.: Open-graded friction course (OGFC).

Dense-Graded: A dense-graded mix is a well-graded HMA mixture intended for general use. When properly designed and constructed, a dense-graded mix is relatively impermeable. Dense-graded mixes are generally referred to by their nominal maximum aggregate size. They can further be classified as either fine-graded or coarse-graded.

Full-Depth Reclamation : Full – depth asphalt pavements are constructed by placing bituminous layers directly on the soil sub-grade. This is more suitable when there is high traffic and local materials are not available.

 

1. DIFFERENCES BETWEEN THE CONSTRUCTION OF FLEXIBLE AND RIGID PAVEMENT

The fundamental difference between a flexible, semi-rigid, and rigid pavement is the load distribution over the subgrade. The semi-rigid pavement has a higher composite modulus of elasticity than a flexible pavement and begins to resemble the rigid structure in terms of how the traffic loads are distributed over the subgrade. The elements contributing to the higher modulus may be:

1. Increased thickness in asphalt concrete
2. chemical stabilization of the base, subbase, and/or subgrade layers
3. Asphalt stabilization of the base course.

 

Below are the differences between the flexible pavement construction and rigid pavement construction.

Difference between Flexible Pavements and Rigid Pavements:

	Flexible Pavement	Rigid Pavement
1.	It consists of a series of layers with the highest quality materials at or near the surface of pavement.	It consists of one layer Portland cement concrete slab or relatively high flexural strength.
2.	It reflects the deformations of subgrade and subsequent layers on the surface.	It is able to bridge over localized failures and area of inadequate support.
3.	Its stability depends upon the aggregate interlock, particle friction and cohesion.	Its structural strength is provided by the pavement slab itself by its beam action.
4.	Pavement design is greatly influenced by the subgrade strength.	Flexural strength of concrete is a major factor for design.
5.	It functions by a way of load distribution through the component layers	It distributes load over a wide area of subgrade because of its rigidity and high modulus of elasticity.
6.	Temperature variations due to change in atmospheric conditions do not produce stresses in flexible pavements.	Temperature changes induce heavy stresses in rigid pavements.
7.	Flexible pavements have self healing properties due to heavier wheel loads are recoverable due to some extent.	Any excessive deformations occurring due to heavier wheel loads are not recoverable, i.e. settlements are permanent.

 

1. IDENTIFY THE FUNCTION OF THE FOLLOWING

– SUB-BASE: Sub-Base course is the layer (or layers) under the base layer. A sub-base is not always needed. A proper sub-base consists of various sizes of crushed stone aggregate, commonly known as crusher run. Depending on the sub soils on your site you may need 8-12 inches of various sizes of sub-base. With well drained sub soils, without movement, added sub-base materials may be sufficient, along with proper pitch & grade.

 

Function of Sub-base course of flexible pavement

It functions primarily as structural support but it can also help:

1. Minimize the intrusion of fines from the sub-grade into the pavement structure.
2. Improve drainage.
3. Minimize frost action damage.
4. Provide a working platform for construction.
5. The sub-base generally consists of lower quality materials than the base course but better than the sub-grade soils.

• SUB-GRADE: The “sub-grade” is the in situ material upon which the pavement structure is placed. Although there is a tendency to look at pavement performance in terms of pavement structure and mix design alone, the sub-grade can often be the overriding factor in pavement performance. It is essential that at no time soil sub-grade is overstressed It should be compacted to the desirable density, near the optimum moisture content
• BASE COURSE: The base course is the layer of material immediately beneath the surface of binder course and it provides additional load distribution and contributes to the sub-surface drainage It may be composed of crushed stone, crushed slag, and other untreated or stabilized materials.

• ROAD – BASE: Road-base is the most important structural layer in bituminous pavement. It is designed to take up the function of distributing the traffic loads so as not to exceed the bearing capacity of subgrade. In addition, it helps to provide sufficient resistance to fatigue under cyclic loads and to offer a higher stiffness for the pavement structure.
• However, the basecourse is normally provided to give a well-prepared and even surface for the laying on wearing course. Regarding the load distribution function, it also helps to spread traffic loads to roadbase but this is not the major function of basecourse.
• SUB-GRADE: The top soil or sub-grade is a layer of natural soil prepared to receive the stresses from the layers above.
• WEARING COURSE: The wearing course is the upper layer in roadway, airfield, and dockyard construction. The term ‘surface course’ is sometimes used, however this term is slightly different as it can be used to describe very thin surface layers such as chip seal. In rigid pavements the upper layer is a portland cement concrete In flexible pavements, the upper layer consists of asphalt concrete, that is a construction aggregate with a bituminous binder. The wearing course is typically placed on the base course, which is normally placed on the subbase, which rests on the subgrade.

 

REFERENCE

Holtz, R.D., Christopher, B.R., and Berg, R.R., 2008. Geosynthetic Design and Construction Guidelines, Participant Notebook, FHWA Publication No. FHWA HI -07- 092, Federal Highway Administration, Washington, D.C., 592 p.

Christopher, B.R. And Perkins, S.W., 2008. “Full Scale Testing of Geogrids to Evaluate Junction Strength Requirements for Reinforced Roadway Base Design,” Proceedings of the Fourth European   Conference, Edinburgh, United Kingdom, International Geosynthetics Society.

Cuelho, E.G. and Perkins, S.W., 2009. Field Investigation of Geosynthetics used for subgrade Stabilization, Summary Report 8193, Montana Department of Transportation, 4 p. (http://www.mdt.mt.gov/ research/projects/geotech/subgrade.shtml).

Lay, M. G. (2009). Handbook of Road Technology (4 ed.). Taylor & Francis. ISBN 0203892534.

Phatak, D. R.; Gite, H. K. Highway Engineering. Nirali Prakashan. ISBN 8185790922.

 

 

Business Plan for Boutique

Sample Business Plan for Boutique

Note: This is just a sample to give you clue on how to write your own business plan for a opening a Boutique.

INTRODUCTION

A business plan is a formal statement of business goals, reasons they are attainable, and plans for reaching them. It may also contain background information about the organization or team attempting to reach those goals.

Therefore this paper presents business plan for a start-up retail establishment.

NAME OF BUSINESS: ________Boutique

LOCATION: ______ (location of your choice

EXECUTIVE SUMMARY

Peace Boutique is a start-up retail establishment that will sell fashionable clothing to both men and women of this generation. Peace Boutique will be located in  Nasarawa town, Nasarawa state, which is a popular for in the state with numerous establishment such as the Federal Polytechnic Nasarawa, Nasarawa Local Government, Police stations, Courts, School of Health, several secondary schools etc with a very high population density which creates a booming market for cloths. While our initial goal is to open one boutique, expansion plans include potentially franchising our retail store and/or building a well-recognized brand name. In turn, we would hope to penetrate a sizable portion of the online retail market.

PRODUCTS & SERVICES

The fashion and retail industry tends to be overly youth focused. However, by closely following generational fashion trends as well as our own customers’ purchasing preferences, we will tailor our inventory to meet the specific needs of our clientele. We will solely focus on the our styles, colors and fits to flatter the demand of our esteem customers / meeting the needs of their figure will be our specialty.

MARKET ANALYSIS

The demand for clothes in line with the trending fashion is increasing on a daily basis creating a value for more investors to make use of the ever growing market to make a profit. The total sales reported in the U.S. retail industry in 2014 (including food service and automotive) exceeded $4 trillion with this global trends which is applicable to every locality makes the market a very viable one. Peace Boutique will initially seek customers locally, but will increase our reach as we build our brand and secure our image.

STRATEGY & IMPLEMENTATION

Peace Boutique recognizes the importance of marketing. And to that end, we plan to promote our retail business with an ambitious, targeted marketing campaign, which will include a grand opening event, local media coverage, print advertising and a direct-mail campaign. Our goal is to keep our marketing budget to no more than 5% of our gross annual sales, and we will partner with local organizations such as the Local Government Staff, Federal Polytechnic community, and Indigenous Association as often as possible.

MANAGEMENT

_________ (Insert your chosen name)  is sole-owners and will manage Peace Boutique with the help of Mathew and Jane. Mathew Makowu has worked several years in the retail industry, including four years as the manager of an antique furniture shop. She earned a BA degree in finance from Lagos state University.

Jane Ukachukwu experience lies in the fashion industry. She’s worked with designers, wholesalers and retailers for roughly 10 years. Jane Ukachukwu holds a BA in fashion merchandising from Caritas University.

FINANCIAL PLAN

Our company will earn revenue from our customers’ purchases of our products. Peace Boutique’s first-year income statement illustrates a profit margin of at least fifty-two percent, with a net income of N2,800,000 per annum – after taxes. Finally, we have determined our break-even point will equal no less than N1, 500,000 in total annual sales. Peace Boutique project her annual profits to reach N3,000,000 by year three.

Our company will generate revenue from the retail sale of clothing and other merchandise. First year sales are projected at N2,850,000, and we expect sales to surpass N3,250,000 by the end of year three. We will achieve month-to-month profitability within the first year.

SOURCES & USE OF FUNDS

Peace Boutique requires N2,400,000 to launch successfully. We’ve already raised N1,200,000 through personal investments and a small community grant.

Peace Boutique is currently seeking additional funding from outside angel investors and business loans. Start-up funds will be used for renovations, inventory and operating expenses such as rent, utilities and payroll. Further, our initial investment will also be used to purchase retail equipment and inventory software – all of which will produce future benefits for the company.

KEY ASSETS

Peace Boutique key assets is the sole-owners,  ________ who bring tremendous experience and expertise to this business.

Once Peace Boutique is launched, our primary asset will be our brand, which will convey style, quality and a great shopping experience. In the long term, it is this brand that will separate Peace Boutique from other retailers both locally and nationally.

PRODUCTS OR SERVICES

Description

Booming Boutique will sell a combination of widely recognized name brands as well as clothing lines from select fashion designers. We will closely follow generational fashion trends as well as our own customers’ purchasing preferences. Moreover, we will tailor our inventory to meet the needs of all ages both old and young, men or women. Solely focusing on the styles, colors that fits every human figure will be our specialty. While apparel, such as business clothing, casual wear, jeans and formal wear will be our main staple, we will also offer some accessories such as belts, scarves, and hats.

Profits will be earned via the sale of our merchandise. Our pricing structure will remain flexible, as we will implement suggested retail pricing on common brands as well as the standard practice of keystoning prices. Additionally, we will utilize a value-based pricing structure, which measures the value of our products to our customers such as easy access, quality, customer service and styles flattering to our target consumer. End of season sales, holiday and overstock sales, multi-buy savings and promotional coupons will be implemented at strategic intervals.

FEATURES & BENEFITS

One key feature that separates Peace Boutique from all other local boutiques and chain department stores in the area is our commitment to providing this generation stylish, quality clothing options. Because our primary concern will be ensuring our consumers are happy with the fit and style of their purchase, we will provide products tailored to all shapes and sizes of all sex. In addition, we will make every effort to have petite and plus size versions of our merchandise in stock. If they are not in stock, ordering them will be easy, cheap and efficient.

COMPETITION

Competition is a very important factor to consider in every business hence Peace is very much aware of this fact, though there are several shops / boutique offering related services but Peace boutique with its style and professionalism intends to overcome the challenges and compete favourable.

TARGET CUSTOMER

Peace Boutique is a business-to-consumer retail company. The entire population of people living in Nasarawa and its environs is our target customers.

SALES STRATEGY

Peace Boutique plans to generate sales via strategic marketing efforts. These concentrated efforts will be targeting new and returning customers as well as single-visit tourist consumers. We will also implement a referral program rewarding customers who refer new customers with discount. Following our grand opening, we will conduct a direct-mail campaign to targeted consumers that we have signed up through our in-store mailing program.

Peace Boutique will accept cash and payment via major credit and debit cards. Cash layaway plans will also be permitted. Returns and exchanges must take place within 30 days of purchase and receipts are mandatory.

Our sales staff will include both owners and 2-3 part-times sales associates. Combined, Jane and Mathews having numerous experience in the fashion and retail industries. Comprehensive training will be provided to each sales associate – to include selling merchandise as well as how to provide fashion advice to customers.

GOALS

The following is a list of business goals and milestones we wish to accomplish our first year of operations.

• Complete renovating, stocking, hiring and initial marketing.
• Host a successful grand-opening event.
• Penetrate and raise awareness in 60 percent our targeted consumer market.
• Achieve a profit margin of 50 percent.
• Build a solid customer base and mailing list.
• Generate repeat and referral sales.
• Become a profitable business with expansion potential.
• Establish a solid reputation as quality retail establishment.

Our first major milestones will be securing funds and setting up our business. This is our major focus right now. In five years, we hope to have established our retail business within the community and within our industry.

FINANCIAL PLAN

REQUIREMENTS

Booming Boutique will need N2,400,000 to get our business off the ground. We are currently seeking funding from outside investors and business loans.

At this time we have raised N1,200,000 in equity capital We are seeking investors for an additional N1,000,000 in equity investment and N200,000 in loans.

 INCOME STATEMENT PROJECTIONS

Based on our marketing plans, location, store size and product offerings, we expect to collect annual sales of N3,250,000 in year one, N3,750,000 in year two and N4,200,000 in year three.

Our average cost of goods sold will be 40%, which leaves us with a gross margin of 60%. Our minimum monthly fixed costs are N500,000 per month,. We will become profitable on a monthly basis before the end of our first year.

CASH FLOW PROJECTIONS

Our business will collect immediate payment from customers, so our cash flow statement will be substantially similar to our income statement. Our cash flow statement clearly demonstrates our ability to cover all bills.

ASSUMPTIONS

Our projections are based on the assumption that the economy, consumer spending habits and population growth in Nasarawa will continue for the foreseeable future.

We must also assume that our present and future suppliers will continue to sell inventory to us at prices that allow us to maintain our present margins. It is also important that we are able to hire reliable employees at reasonable wages.

Note: For further inquiring contact us through enemsly@gmail.com or call 08055730284.