Handy Busy Bags Company - Business Plan and Business Model Canvas

Contents 

Handy Busy Bags Company - Business Plan and Business Model Canvas 3 

Executive Summary 3 

Business Model Canvas 4 

Value Proposition 5 

Customer relation 5 

Key activity 6 

Business partners 7 

Channels to reach the customer 7 

Legal Entity And Ownership 7 

Revenue streams 8 

Cost structure 8 

Key resources 9 

The ask 9 

References 10 

Handy Busy Bags Company - Business Plan and Business Model Canvas 

Executive Summary 

Handy Busy Bags Company (HBBC) is a startup venture selling self-designed bags and clothes for female motorists. It will help ladies to look attractively stylish on their motorbikes and ff-bike. The Company intends to become a famous motorcycle clothing brand for fashion-loving ladies by starting with some simple collection of women bags and expand its production to cover all ladies' fashion clothing. HBBC will eventually bring the possibility for ladies to ride under protection without necessarily changing their clothing, regardless of their destination. 

HBBC founder and the CEO, Mrs. Xxxxx, works as a sales merchandise at Ducate designers in Ohio. She is an experienced entrepreneur who has been working as an art director for more than five years. She found that the motorcycle market is currently missing the ladies’ fashionable motorcycle clothing niche. Companies that are designing motorcycle clothing are focusing on the traditional Harley Americana and sports racing outlook. A few of them offer customer-tailored and professional style clothing. Having some little experience in the fashion design industry, Mr. Xxxx believes that launching the venture with some well-designed bags results in fewer risks and greater market entry chances and sustainability. 

The Company will be developing its brand with a clear goal in mind. It will create an inclusive user experience and use the readily available internet-based instruments for doing marketing. The Company will also work with well-known photographers to give marketing both an offline and online edge to impact the company presentation to potential clients and partners. The Company's product will act as the brand messenger by proudly showing off the motorcyclist ladies' feminity and sexiness. Later, the clothing and accessories will be cool and elegant. All that we ask is general support, both financial and promotional, for the upcoming Company to strive in the competitive market. 

Business Model Canvas 

Company Name: Handy Busy Bags Company Prepared by: Mrs. Xxxx 

Key partners  Chamber of Commerce and Downtown Merchants Association	Key activities  Designing and production of motorcycling ladies’ wear	Value proposition  stylish options of bags and clothing to the female motorists		Customer relation  Providing long term solutions to the female motorcycle riders concerning fashion	Customer segment  Women aged between 25 to 55
				Channels  Retailers
	Key Resources  Brand and patents
Cost structure  Variable costs – the cost of purchasing raw materials  Irrelevant costs – rent payables  Fixed costs – the cost of taxes and transportation of products			Revenue streams  Purchases from customers

Value Proposition 

The Company's product portfolio aims at availing stylish options of bags and clothing to the female motorists. The providers' market niche is signaled by the increasing number of educated women buying and riding motorcycles. As a result, there is a need to take care of such women to ride their bikes in high fashion. HBBC will use the first year of operation to start a line of bags. Within this first year, the Company will gather the required experience, contacts, and also customers. As a result, the HBBC will deliver highly valued products in the market to attract and retain targeted customers. 

It is essential to elaborate on the planned product portfolio since apparel design is its midterm goal. The HBBC's immediate attention will be focused on the product's color, style, and fits to flatter the curvy ladies. The niche specialty will fit ladies of size six to fourteen. However, clothing size will also range from zero to fourteen. Furthermore, like in the case of Nautica, which serves marine sport needs and develop a culture in which its clothing is worn in daily life (Ceccarelli & Riccardo, 2019), HBBC's general production will include motorcycle wares, including boots, bags, apparels, helmets, and inspired accessories such as scarves. HBBC's main goal is to create pieces and that individualistic ladies strive to have. Something that they would put on even when they are not on a motorcycle. Therefore, the cloth design will serve two needs concurrently. 

Customer Relation 

The most targeted customers will be female motorcycle riders between the ages of 25 and 55. These targeted customers are trendsetters and trailblazers. They put much value on uniqueness, quality, convenience, and service. As they reach their retirement age, price becomes a factor that helps them in the process of making decisions on what to buy. However, they generally like the philosophy of "buy now and pay latter." Therefore, they need to be given a better focus on brand design and service delivery. 

According to Motoress (2020), most enthusiastic motorcycle riders live in big cities and are financially independent. These people own and ride motorcycles and appreciate the motorcycle culture. Additionally, Mrs. Xxx also realized that many people who like riding on motorcycles do their shopping at mid-range department stores such as Dillard and Macy's. Marketing in motorcycle-specific retailers across the US is also crucial since they buy their motorcycle wears from specialist retailers. 

To reach the targeted customers, HBBC will use retailing chains from which the targeted customers usually buy. Another possible way to connect with the target group of customers is to team up with riding instructors, companies doing motorcycle tours, way-finder applications, bloggers, workshops organized for women interested in learning motorcycle repairs, or even starting women motorcycle club to ride and share. These strategies are possible ways that the Company can use to connect with the targeted group of customers. 

Key Activity

The Company will strive to organize riding competitions for the the various motorcycle riders across the country. The Company will use these competitions to sell its brand and create a better image with potential customers. Furthermore, the Company will also arrange motorcycle riding training in different locations within the country to sell its image quickly. 

Business partners 

The Company will often partner with local organizations like the Downtown Merchants Association and the Chamber of Commerce. HBBC has already developed connections in all the important places. The partnership will help the Company to piggyback on the local event publicity, so long as the events are within Ohio. Furthermore, the comp[any is dedicated to promoting local businesses within the community in which it will carry out its operations and sponsor events yearly. 

Channels to reach the customer . 

Social media will be the Company's big player to reach its targeted market. Several customers use social media in their daily life to seek the brands they might be interested in for several reasons. Additionally, social media is also a valuable opportunity for building the community. Therefore, the Company will use social media to reach its potential customers by focusing on relationships and not just making sales. The Company will interact with them enthusiastically while treating them well. 

Besides, the Company will also use email to get direct responses from potential customers regarding their views and complaints. Email marketing will be good since many potential customers will eagerly wait to hear from the Company. As a result, they will always be willing to open the newly sent messages from the Company so that they can learn more about the new products, sales, and how they can benefit from them. 

Legal Entity And Ownership 

HBBC intends to be a Limited Liability Corporation formally organized in Ohio. Mrs. Xxxx is the principal founder and owner of the Company. However, when there is any readily available appropriate partner, they will have a minor share. The Company will operate under the fashion and design industry and be classified under NAICS code 423235 fashion design services. All produced jackets and any wear meant to protect from abrasion and impact while someone is on a motorcycle ride will be tested, and CE certified. 

Revenue Streams 

According to the research that Ms. Xxxx did on the current market's revenue stream, most of our customers are ready to pay 20% less of what the current companies are charging for the general products the the Company will be producing. Furthermore, the customers are most willing to pay for some expensive merchandise in installments. For that reason, our Company will look forward to strategizing on the pricing technique that will help it reduce its prices generally by 20% to attract more customers. 

Our proposed venture will be earning revenue from customer's purchases. HBBC's income in the first year illustrates a profit margin of $ 30,000 with a net gain, deducting the levied taxes, of $ 2,500 d. Our Company has also managed to determine its break-even point, which will be equal to more than $ 4500 in total sales made in a month. Hopefully, we project our annual profits to reach 60,000 dollars by the end of the third year of our successful operation. 

Cost Structure 

HBBC will require a minimum of $ 100,0000 to launch for the first three years until the cash flow grows to become more than the incurred cost successfully. W e will acquire our company fundings in stages. The first stage will include the startup cost for prototyping and getting the first orders. These will consist of material cost for the prototypes, the cost for pattern making, shipping and taxes levied on the raw material, and other necessary expense in the due process. The second stage costs will include all the essential costs after the orders have been made. The second stage costs will be higher since the Company will be going entirely into the production process. 

Key Resources 

The Company will require a variety of resources to its value proposition. For instance, HBBC company will require physical assets such as equipment, inventory, buildings, distribution networks, and prototype design software to help it come out with the required brand. 

Besides, the Company will also need intellectual resources such as the brand, patent right of operation, intellectual property rights, and partnership. Furthermore, the list of Company potential customers will also be needed. 

The Company will further need human resources provided by its founder and potential partners who will be willing to participate in the production process and selling process. The Company will also employ more workers who will help in the production process. Financially, the Company will get its start-up capital from potential financiers and investors to help it start its operation. However, as the Company continues to be in the market, it will use profit plow back as another source of its financial resources. 

The Ask 

Our Company is currently seeking additional funding from the public through its shares that would be sold in the share market. We will use startup funds for manufacturing the lines, materials for the creation of the lines, prototyping, and operating expenses such as salaries and wages. Our initial investment will also be used to purchase pieces of equipment and inventory software, which will eventually benefit the Company. 

References 

Ceccarelli, & Riccardo. (2019).  Pleasure boating: perspective on Italian excellence and on the growth of the Chinese market with Italian-Chinese terminographic repertoire. Ca 'Foscari University of Venice. 

Goss, D. (2015).  Small Business and Society . Routledge, Taylor & Francis Group. 

Motoress. (2020).  Six Fun and Fabulous Motorcycles For Women - Motoress . Woman Motorcycle Enthusiast - Motoress. Retrieved 1 November 2020, from https://motoress.com/ride/rider/six-fun-fabulous-motorcycles-for-women/.