Business plan

Tower Supply sells a diverse wireless product line at competitive pricing. Their customers can count on them to provide the highest quality and most reliable products with the fastest delivery times available. The company’s differentiators include: same day local delivery, competitor’s price matching, volume discount and early payment discounts.

Their electrical, US-manufactured, products are Restriction of Hazardous Substances (RoHS) Compliant. RoHS compliant electronic products are produced with restricted amounts of specific hazardous materials. The products are also certified with (UL) Underwriters laboratories, which is a third party Company that sets safety standards on all new products and ensures they are up to standards throughout the life of the product.

Other products receive quality check inspections that include strength tests and durability in outdoor environments. Products are also properly labeled to include the country of origin and the California Prop 65 warning. Prop 65 warns customers about certain cancer causing chemicals.

Products categories include

· Cable Support Accessories

· Coaxial Cable & Building Wire

· Bonding, Grounding & Isolation

· Stainless Steel Hardware

· Strut/Pipe & Accessories

· Tape & Weatherproofing

· Vendor Managed Inventory VMI

· Custom Packaging Per Contract Specifications

· In-House Quality Control & Inspection

1.3 Competitors

According to the ESRI Business Analyst, the counties of San Bernardino & Riverside have 41 businesses competitors for the Wiring Device Manufacturing and Electrical Equipment Wholesaling industries.

Sales for these companies range from $1,350,000 to $31,900,000. Tower Supply stays competitive because it offers a greater complement of products and services that make it a truly one-stop shop for Telecommunication infrastructure products.

See Appendix C and Appendix D for the list of competitors in the Riverside and San Bernardino Counties.

1.4 Operations

Regulations-Operations

Tower Supply is required to comply with various rules and regulations among several local, state, and federal agencies. Locally, the company is required to maintain its business license and comply with local regulations and city codes. From a State level, the company is required to comply with all State laws concerning employment law, corporate law. From a Federal level, the company is required to comply with additional consumer product laws, taxation, etc.

Tower Supply Company accounting policy follows generally accepted accounting principles. Tower Supply Company financials are turned over to the CPA on a quarterly basis. Tower Supply Company uses Quick Books for its accounting software; The fiscal year is based on year-end. Financial reporting methods include monthly, quarterly, and annual statements. An annual audit is to be performed by the firm's CPA firm in February.

Tower Supply Company carries insurance for business liability and automobile. Additional insurance programs such as worker's compensation will most likely be consummated by the close of the third quarter of 2020.

In 2021, there are plans to hire a consultant to achieve a voluntary Quality Management System to become ISO 9001 certified. Although, it's not mandatory Tower Supply feels this can be beneficial to meet the needs of current and future customers.

Certifications

Tower Supply is certified with the following Federal, State and Local/Municipality agencies:

Their applicable NAICS and SIC codes are as follow:

2.1 Organization Plan

Vision

At Tower Supply our vision is to be the supplier of choice.

Mission

Our mission is to provide quality products at competitive prices, while providing integrity driven services and on time deliveries.

Management

Tower Supply Co. is owned and operated by Elyus Abker and Mateo Diaz. Tower Supply Company's critical success factors in order to stay ahead of the evolving telecommunication industry, include:

· funding,

· marketing,

· quality,

· sales,

· good management,

· aggressive branding,

· increasing reach,

· being specific to the needs of the industry,

· competitive intelligence,

· Timining, and;

· remaining dynamic.

Tower Supply Company critical success factors will be to respond quickly to technology changes/be there early, provide high-quality materials, continue to invest time and money in marketing and advertising, continue to expand into new markets, and stay ahead of the "technology curve." Tower Supply Company has a combined total of over 15 years’ experience in the Telecommunications industry.

3.1 Industry Analysis

In the year 2020, no one foresaw the impact that COVID-19 would have on the world. During this time the industry did have a negative outlook for the year. As you can see with the Industry Outlook by IBISWorld, the industry is expected to grow. The industry is also expected to witness considerable future growth with the fifth-generation mobile networks (5G) upgrades.

Tower Supply Company developed its sales and marketing strategy by analyzing its own internal strengths and then analyzing current market conditions. This process helped Tower Supply Company create its marketing and sales strategy to leverage its competitive advantages with a unique marketing strategy, thus establishing it as one of the leading suppliers for Southern California.

The overall marketing plan for Tower Supply Company’s’ service is based on the following fundamentals:

· The segment of the market(s) planned to reach.

· Distribution channels planned to be used to reach market segments: Warehouses and sales representatives.

· Educate future employees and customers about our products.

· Substantially increase sales over 2019 levels.

· Position the company as one of the top suppliers to the industry.

· Make a major branding effort emphasizing Tower Supply Company name and array of products.

· Create new digital collateral marketing materials (Catalogs, Constant Contact).

· Media placements including social media, Internet and banner advertising.

The other important aspect that the Tower Supply Co. will have to consider is the aspect of the Red sea strategy as its other important part in marketing its commodities. The above strategy entails or involves competing with the other organizations in the industry that are currently existing in the industry. In this strategy, the two key goals that this company will be aiming to achieve include beating the rigorous competition and also exploit the prevailing demand. In this case, the company will have to look at what the other companies in the same industry are doing and then trying to act in a way that will ensure that it gains a competitive advantage ahead of the other organizations and this will be the important ways that this corporation will beat the rigorous competition in the market. The firm will also have to consider the prevailing demand especially where it is high and supply as much goods and services as it might be so that the demand might be met.

The important examples that Tower Supply Co. might employ include making value-cost-based trade-off. For instance, the organization will be involved in providing goods and services that are of great value so that they will be highly demanded by the consumers who will tend to consume more and this is an important way of beating the competition and making sure that the demand has been met. The other important way of engaging in this strategy would entail aligning all the systems of the activities that the company will engage in with the strategic choices of differentiation or even engaging in low-cost production. The above activities are important in the sense that production cost will be low and this will be important in ensuring generation of large revenues that would be invested back to enhance more and quality production and this becomes a competitive strategy.

It is also an important strategy that Tower Supply Co. would like to consider and it is worth considering it. The strategy will entail simultaneous pursuing of differentiation and also low-cost operations as essential ways of opening up new market spaces and also creating new and increased demands. The essential activities that the company will be striving to meet include opening new market spaces and by doing so, competition will not be relevant in that the company has newly opened market spaces where it can supply its goods and services. Differentiation is an important way of getting new consumers and opening up new markets and this is a strategy that this company can engage in.

As an example, the firm will look at the products and services that are being offered by its competitors and will try as much as possible to offer well-developed and differentiated commodities that will be highly-consumed by the consumers and this can also attract new markets where the company might expand to and minimize the level of competition that might have been concentrated in a given area. Alignment of the activities is also important as an essential way of making sure that they are all aimed at achieving the intended goals of the company. Therefore, the two marketing strategies are essential to be considered by Tower Supply Co. since they have a significant impact and benefit when it comes to enable the firm meet its anticipations.

The above questionnaire will aid in acquiring information from the consumers regarding the marketing strategy that the business will embrace especially the red and blue sea strategy. Specifically, it will consider the price of the commodities and the products themselves as well as the consumer satisfaction as all of these are essential considerations when choosing a given marketing strategy. The questionnaire will have essential benefits as mentioned below.

· It will aid in making informed and up to date decisions since by acquiring information from the consumers, the firm will make essential decisions such as adjusting its prices and commodities.

· It is also beneficial in maximizing the potential of the involved business.

· Enables the company to understand the current and prospective consumers, their needs and even the internal problems with the consumers.

· It will also aid in creating essential customer relationships in that after addressing the issues in the questionnaire survey, the consumers will be highly satisfied and an essential relationship will be established.

· It also aids in improving customer service and this will enhance the productivity of the company.

Tower Supply Company prices are competitive and affordable for businesses. The company has also established tier pricing for customers, Bulk purchasing discounts and price matching. Tower Supply Company manufactures 80% of its products overseas which enables the company to reduce its cost of goods sold, increase revenue, and pass on the savings to businesses and consumers.

Advertising programs include direct response advertising, relationship building, direct sales efforts. Tower Supply Company will continually inform businesses and consumers through digital collateral marketing and social media about products and new services. As an extra incentive for customers and potential customers to remember Tower Supply Company name, the company sponsors events and distributes advertising apparel with the company logo. This will be an ongoing program for the company, when appropriate and where it is identified as beneficial. The objective of incentives is to portray Tower Supply Company goals and products as an attractive functionality. It is also to show customers our appreciation.

Activities contributing to company success include identifying emerging trends and integrate them into Tower Supply Company operations, respond quickly to technology changes/be there early, provide high-quality materials, continue to invest time and money in marketing and advertising, continue to expand into new markets, and stay ahead of the "wave."

Our future is highly dependent upon measuring resources we need in order to execute our plans and be competitive. Our method to be successful is estimating our own company growth, sales, and cash flows. Our resources are also measured in terms of people, equipment and financials. Resources are available as needed to meet the industry demand. In general, our strengths include business management, knowledge of the telecommunications industry and hands on experience in the industry.

The following table and chart illustrates the projected sales forecast of 2020 through 2022. Prior to the virus we had estimated a growth of 100% in 2020 but it drastically affected our sales, but we still plan on a 100% gain per year after 2020.

Factors determining future staffing include growth, demand on existing resources, future capabilities needed, and budgeting. In the future, Tower Supply Company will require a management team.

It is estimated that Tower Supply Company will have strong profits based on $2 million in sales by Year 2022. Tower Supply Company is currently seeking funding in the amount of $250,000 as a long-term loan for the purpose of opening additional locations, hiring staff, marketing, and advertising.

Tower supply company is seeking an investment of $250,000 - $300,000 The following options are alternative ways to coupe some capital to help expand the company and help with expenses.

1. SBA Loans

SBA works with lenders to provide loans to small businesses. The agency doesn’t lend money directly to small business owners. Instead, it sets guidelines for loans made by its partnering lenders, community development organizations, and micro-lending institutions. The SBA reduces risk for lenders and makes it easier for them to access capital. That makes it easier for minority businesses to get loans. The Benefits of SBA loans is that it comes with guaranteed unique benefits. Some loans come with continued support to help you expand and run your business. Lower down payments, flexible overhead requirements, and no collateral needed for some loans. Loans guaranteed by the SBA range from small to large and can be used for most business purposes, including long-term fixed assets and operating capital. Some loan programs set restrictions on how you can use the funds.Lenders and loan programs have unique eligibility requirements. In general, eligibility is based on what a business does to receive its income, the character of its ownership, and where the business operates. The down side of it is the business cannot get funds from any other financial lender.

2. SBIC’s

An SBIC is a privately owned company that’s licensed and regulated by the SBA. SBICs invest in small minority businesses in the form of debt and equity. The SBA doesn’t invest directly into small businesses, but it does provide funding to qualified SBICs with expertise in certain sectors or industries. Those SBICs then use their private funds, along with SBA-guaranteed funding, to invest in small businesses. Private investors participate as limited partners and invest funds. While SBA matches the investors funds $2 to $1 which creates small business investments. A typical SBIC loan ranges from $250,000 to $10 million, with an interest rate between 9% and 16%. The downside is SBICs will invest in your business in exchange for a share of ownership in your company. SBICs typically target mature, profitable businesses with sufficient cash flow to pay interest.

Here are a couple of investors who are likely investing at the moment.

Tower supply Company is currently seeking funding in the amount of $250,000 for the purpose of opening additional locations, inventory, hiring staff, marketing and advertising. Use and distribution of proceeds: Expand into other markets, further build the brand name through marketing, advertising, and promotion; and acquire new products to add to our inventory. Funds will also be directed into business relations, internet advertising, print advertising, and social media advertising. The initial investment will be used for our new location in the Las Vegas Market and inventory for that location. It is expected that by 2022 the company will self-finance all future new locations.

Annual Growth: We expect growth to increase by 100% per year on the basis that the company will be stepping up marketing and sales efforts, as well as initiating new partnerships with. These strategies are aimed to build momentum and critical mass within the company and its overall sales results.

Cost of Goods: Tower Supply Company expects that its products will bear a reasonably high markup, which translates to a relatively low cost of goods. Our cost of goods includes consideration cost of products, shipping charges and Tariff charges.

Marketing/Promotion: We group advertising, promotions, and retail outlet marketing under this category.

New Locations: We estimate that each new location will cost $250,000 to open up and we anticipate opening 2 location by 2022

Other: We estimate that we may need additional funds for other promotions, and this is set aside in a special fund.

Rent: It is assumed that rent will be an average $2500 per month per store.

Salary: Figures are estimated based on the national average for similar positions. They assume however, the hiring of a store manager and warehouse staff Per location by 2022.

Utilities: Figures are estimated. Management estimates that utilities will be at $500 per month per store.

5.4 Projected Balance Sheet

The following table is the projected balance sheet.

Back Up Plan

The total cost projected is estimated to be $ 35,000.00. These are the details of the project:

Henderson, Nevada New Site Lease $____________

*See Appendix A for Break Down

SIte Merchandise and other Necessary Equipment $____________

*See Appendix B for Break Down

Appendix A

Appendix B

Appendix C

Source: ESRI Business Analyst

Appendix D

Source: ESRI Business Analyst