Virtual Assistant Business Plan

1.0 Executive summary The Virtual Assistance business has been on the rise hence he needs to explore the opportunities available. The business is largely driven by the internet and falls in the digital economy. With the Covid19 already declared a global pandemic, the conditions set presents the opportunity to use technology to drive the economy while solving the available challenges. While there exist a number of firms that have ventured into Virtual assistance, the market continues to grow. CareNet is an innovative product that targets individuals who need specific tasks to be done yet they are confined to their homes. In the short term, the business intends to provide solutions that could be done online it the best prices while a specific margin can be achieved. The business plan, therefore, analyses the opportunities available with both short and long term goals. After conducting the feasibility studies on the virtual business market, industry, and services, the business plan reports on the findings with projections availed. 2.0 Company Summary CareNet is a virtual assistant business that operates exclusively using the internet. The platform to be developed will be a one-stop shop for individuals that require services including filing tax, data entry, marketing, graphic design, and other services as demanded by the client. The services have been chosen based on the competence of the founder. The firm will be legally registered as a sole proprietorship with the founding owner being the sole employee. While some tasks will be outsourced when deemed necessary, the bulk of the tasks will be done by the founder. With considerable knowledge in finance and accounting, CareNet will serve the specific needs of clients looking for specific services in the finance and accounting industry. The business targets specific clients by exploring through the networks developed over time. While it may be restricted to specific jurisdiction, for now, the growth phase will determine how far it will operate in the future. 3.0 Feasibility analysis The feasibility analysis covers the industry and services that are offered by CareNet. The analysis is important as it helps to understand the elements that drive the industry hence relevant strategies can be deployed. 3.1 Industry analysis Virtual assistance business is generally a self-employment business but falls within the digital economy. Some of the prominent firms in the industry include Amazon’s Alexa, Cortana by Microsoft, and Siri by Apple. The growth of the industry is pegged on intelligent systems that can be automated hence better customer experience. The global adaptation of the internet of things (IoT) has helped fuel the growth further. The industry is important as it serves a wide range of markets including governments, private institutions, firms, and individuals. The services can be categorized into customer support, third-party services as well as conversational commerce (Frémond 4). The industry is highly dynamic hence the need to constantly innovate ways to capture new markets while retaining the clients already available. Today, some virtual assistance business is fully automated but mostly serve specific customer needs such as media playback, control home appliances, and other specialized content. The industry has integrated well with other services provides hence the rise. Social media has proved as a powerful marketing tool in driving most industries, virtual assistance business also largely depends on it. The operations are optimized by intelligent systems that quickly learn the needs of the market. While the industry continues to rise, issues including controversies based on ethical considerations and policies are hampering its full exploitation. Privacy issues have also risen as data collected may be deemed not secure. Regardless of the challenges, the industry is promising hence rewarding to the newcomers. 3.2 Services analysis CareNet intends to offer a number of services including data entry, accounting, marketing, research, and other services. The virtual assistance service industry has been in constant rise thanks to the advanced technology. However, some markets have not been covered hence the need to develop new innovative products. Virtual assistance is a necessary item in every household as individuals struggle to keep time and engage in things that are more demanding. CareNet hence takes the opportunity presented by the uptake in devices such as smartphones, computers, tablets, and other mobile devices. Richter (2) forecast the development of the virtual business by over 30% between 2020 and 2027. Such is attributed to the continually advancing technology including the deployment of high-speed internet accompanied by relevant devices. As the business advances, automated services will be developed to enhance the speed hence timely service delivery. 4.0 Market analysis Market analysis is an important component of the plan as it reveals the target market a hence the necessary strategies to be deployed. With localized solutions being offered, CareNet is set to take over most tasks while creating the need to use the virtual business more. The analysis, therefore, identifies the need to segment the market, the strategies to be put in place, and the competition. 4.1 Market segmentation As research by (Denno 87) indicates, most markets for virtual assistants are individuals, private and government institutions hence the main target by CareNet. For a start, the firm will focus on the potential clients within the developed network of the founder including school, social places, and social media. The market is therefore segmented into the three customer segments namely individuals, government institutions, and private firms. The choice of the three is informed by the ease at which the networks can be activated to yield clients hence sales. For individuals, the firm will provide exclusive services tailored to meet the needs. The services include bookkeeping, data entry, mailing, and research. For private firms, CareNet will solve the marketing, research, and other tasks as required. Such services will also be extended to government facilities hence research, data entry, and marketing will prominently feature. Companies targeted include the small to mid-sized firms that require specialized services outsourced. While CareNet may be needed on specific occasions, the diversified operations guarantee sales throughout the year. With quality services, referrals are expected. 4.2 Target market strategy The market was segmented based on the needs and opportunities available. Furthermore, the founder is considerably experienced in delivering quality services at the best price. Since the demand for virtual assistance has been driven by a busy lifestyle, the strategy is to use all possible means to reach out to potential clients. Such include face to face meetings, social media marketing, and other online and offline platforms. To fuel the growth, the firm will, from time to time, engage the services of more experienced marketing firms to increase the client base (Verkuil 56). Companies often have virtual assistance but the challenge is often based on the needs as efficiency is key. 4.3 Competition and Consumption patterns Virtual business is considered global as it mostly operates using the internet. As such, competitions huge as several firms find the opportunity to fill the gaps. With CareNet, the combination of experience, internet, and quality services, the competition will be managed. The basis of the competition is also pegged on availability, efficiency, and legal requirements within the jurisdiction of operation. Furthermore, most large firms operating virtual assistance businesses are confined to providing solutions that target a wider market. The opportunity is, therefore, improvising custom made and localized content (Jackson 55). Such is the strategy used by CareNet to capture the immediate local market. Over time, the consumption patterns have continued to increase people become more occupied with other demanding tasks. Moreover, the need to have professionals help in completing tasks is growing. Furthermore, as the economies grow, the consumption rates tend to grow hence the opportunity for virtual firms. As the business grows, more activities will be incorporated hence growth in the sales. 5.0 Execution The chapter deals with how the strategies put in place will be executed hence revenues stream. By analyzing the competitive edge provided by CareNet, the firm is able to set the right foot as it starts operations. Furthermore, the marketing and sales strategies are analyzed and implemented to ensure efficiency hence revenues stream. To measure the progress, specific milestone and key metric indicators are analyzed and deployed. The firm’s targets to be clearly visible to its potential clients through specific marketing strategies. 5.1 Competitive edge CareNet is a one-stop shop for individuals, companies, and government institutions that need to outsource services such as bookkeeping, research, and marketing. CareNet has therefore positioned itself as a new innovative firm that provides affordable services without compromising the quality of the content (Foiji 8). Since the founder is the sole employee as the business starts, every item of the client is thoroughly analyzed and worked on with accurate precision. With relevant skills in finance, accounting, research, and marketing, the firm is set to rise quickly. The competitive edge is further driven by the passion of the business input into CareNet. To remain competitive, CareNet will use the services of reputable firms to continue to innovate. 5.2 Marketing strategy CareNet is marketed as a premium solution to the localized needs of the clients. The tailor-made services are informed by the research on both local and global market needs. The marketing strategies deployed therefore directly target the clients in their line of duty. By providing trustworthy and competent services, the firm will be able to mirror the professional services that other firms may not provide. Specific attention will be put on local advertising agencies including newspapers, local radio, and TV as well as physical social groups. Since the firm operates within an urban setting, the choice of advertising channel will be based on the cost and effectiveness of the channel. Where challenges are faced, the firm intends to constantly innovate. Furthermore, success will require that the firm acquire specific certifications so as to stamp on the professionalism deployed in providing services. Since the firms will be operating on the internet, the need to develop professional websites cannot be emphasized. Moreover, the client needs to fill the necessary information through the platform and hence need to make it as simple and understandable as possible. The marketing of the firm also requires that the firm develops websites that are comfortable to use on mobile devices such as smartphones, tablets, and laptops. Since the target is for both individuals, government institutions, and private firms, the three will be clearly separated in the platform so as to provide simplicity in the use. 5.3 Sales strategy CareNet is fully focused on giving the client full satisfaction. Since the business required returning clients, each the next sale is as critical as the last sale. The sales will, therefore, be based on trust hence confidence in the services. Without trust, the firm cannot manage the intense competition. With proper sales strategy, the latest customer may eventually refer new clients to the firm. The sales strategy further depends on the repeat business and hence referrals eventually lowering the marketing costs. Quality services often market themselves hence the need to develop measures that ensure maximum customer satisfaction. To ensure the quality services are maintained, every challenge needs to be solved intently even if it means additional costs deployed (Drake 75). To convince the customers to always use the services of CareNet, discounts will be offered on a need basis. Moreover, incentives will be awarded to clients who refer the business to new individuals. The sales forecast adopted is conservative as the business is new yet some restrictions have been made on the sales and marketing strategies. 5.4 Milestones and Key Metrics (KPIs) Any firm needs to know its progress hence the need to use milestone strategies. The Key metric indicators also go a long way in helping shape the present and future strategies to be deployed. Furthermore, the nature of the industry is dynamic hence the need to innovate constantly. Such is possible thorough constant revive of the progress. Through the feedback given by the clients, the firm is able to develop tailored services within the abilities of the firm. Some of the milestones to be deployed include the completion of the business plan, serving the first customer, achieving profitability, and decreasing the marketing costs. The completion of the business plan should be within the month of June 2020 and the first customer to be served at most two months later. To achieve profitability, the operations department will ensure the sales are consistent within the first year of operations. After two years of operation, CareNet should be able to significantly reduce marketing costs. The KPIs include a favorable operation to margin ratios as well as Profit expenses ratio. 6.0 Organization and management CareNet is a sole proprietorship with one employee who is the founder. After taking a major in finance and accounting, considerable knowledge has been acquired hence the ability to conduct operations at CareNet. The founder is considerably experienced in research, bookkeeping, data entry, and marketing. The skills will be upgraded by using institutions that certify such professions. With virtual assistance being on the rise (Powell 22), the firm will be certified by applying the measures put in place by fair trade organizations within the USA. The firm will henceforth be registered legally following the rules of the jurisdiction. Furthermore, the firm intends to operate only the registered business operations and any diversion will require the advice of qualified and registered lawyers. Being a sole proprietorship, the founder set a personal plan to only take a specific amount of the revenues as the salary as the business will be operated fulltime. As the firm grows and once it meets the legal requirements, the firm will be resisted appropriately as a different business operation. Before starting the operations, the founder will source funds as per the needs of the operations as capital. Such include savings, loans, and other material resources as required. 7.0 Financial Plan The financial plan is the most critical item of CareNet. The projections made include expenses, the projected balance sheet, cash flow and profit and loss. Furthermore, specific ratios and break even analysis are recorded. 7.1 Important Assumptions Some of the most important assumptions include the source of capital, the interest paid on the loans, taxes rates and conservative sales projections. 7.2 Break-even and margin of safety analysis The break even analysis indicates the levels of sales that the business will have to achieve so as to be considered profitable. The firm is assumed to breakeven a monthly revenue of about $200. 7.3 Expenses Every business must incur specific expenses. For CareNet, the expenses include the payroll, rent, and depreciation, electricity, insurance and sales and marketing. The fixed costs include depreciation, rent and insurance while electricity, sales and marketing are the variable costs. 7.4 Projected Profit and Loss The following represents the projected profit and loss for the first two years of the business. CareNet Projected Profit and Loss Year 1 Sales Year 2 20000 38000 Cost of Sales 1000 1200 TOTAL COST OF SALES 1000 1200 19000 36800 Gross Margin Expenses Payroll 200 200 Sales and Marketing 300 500 Depreciation 120 120 Rent 100 100 Electricity 20 20 Insurance 50 50 790 990 18210 35810 Total Expenses Profit Before Taxes Taxes Net Profit 364.2 716.2 17845.8 35093.8 The chart below is the sales Projection Curve. CareNet Sales Projection 40000 35000 30000 25000 20000 15000 10000 5000 0 Year 1 Year 2 The chart below represents the projections for the expense within the two years. Carenet Projected Expenses 600 500 400 300 200 100 0 e ns pe x E ol yr Pa s S l e al t ke sa nd n g in ar M De e pr cia Year 1 tio Re nt i ric e El ty ct Year 2 7.5 Projected Cash flow The following represents the projected cash flow for the firm. CareNet Projected CASH FLOW Year 1 Year 2 Cash Sales $ 20,000 $ 38,000 CASH FROM OPERATIONS $ 20,000 $ 38,000 Expenditures $ 790 $ 990 Cash Spending $ 120 $ 360 $ 480 $ 520 Net Cash Flow Cash Balance 7.6 Projected Balance sheet CareNet Projected BALANCE SHEET Year 1 Year 2 Cash $ 480.00 $ 520.00 Accounts Receivable $ $ TOTAL CURRENT ASSETS $ 529.00 Assets Current Assets 49.00 56.00 $ 576.00 ra su In e nc Long-term Assets $ 142.00 $ 156.00 TOTAL LONG-TERM ASSETS $ 671.00 $ 732.00 Accounts Payable $ 50.00 $ 84.00 TOTAL LIABILITIES $ 50.00 $ 84.00 Paid-in Capital $ 571.00 $ 564.00 $ 671.00 $ 732.00 TOTAL ASSETS Liabilities and Capital TOTAL CAPITAL TOTAL LIABILITIES AND CAPITAL 7.7 Business Ratios The two ratios calculated are the current and debt to assets ratio. As seen in the table below, the current ratio indicates that the firm is in a good financial footing. Such is supplemented by the debt to assets ratio. RATIO ANALYSIS Year 1 Year 2 6.85714 Current Total Debt to Total Assets 10.58 3 0.07451 0.11475 6 4