Chapter 1: Introduction
1.1 Rationale behind selection of business
The main reason behind selection of this business is that demand for efficient human resource in every sector is rising at faster pace in London. Further, every organization is being provided support by recruitment agencies so that best candidate can be provided which suits best with the requirement of companies carrying out its operations in the market. In country like UK recruitment agencies are carrying out operations in effective manner with the main focus on providing best candidate to the organizations who are in search for best candidate and can easily carry out operations for their betterment. The main task of recruitment agency is to simply match candidate to vacancies. Further, it is well known fact that large number of time is being required to search for the right candidate and due to this basic reason services of recruitment agencies are being purchased.
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The key advantage to candidates using recruitment agency is that firms can save time and consultants are being provided to negotiate their salary package. Agencies posses capability to deliver best service to the business enterprises and this is enhancing the overall growth of this sector. So this can be regarded as one of the major reason behind setting up of the recruitment agency business named Talent hunt. Around 8000 businesses rendering recruitment services are operating in UK and their numbers are increasing at faster pace. Further, unemployment rate has decreased by 102,000 to 1.86 million in the three months to the end of January 2015 as per the latest statistics. In short the recruitment industry is contributing a lot in development of the economy of UK and has enhanced overall rate of development. Through this information collected it can be said that business will receive good response from market and can satisfy need of target market in efficient manner.
1.2 Terms of reference for proposal
The present business development proposal on start up of talent hunt recruitment agency is planned to:
- Developing the new recruitment agency which is based on the concept of right job for the right person.
- Analysing the market of recruitment industry and overall growth opportunities to companies.
- Appropriate assumptions along with financial feasibility on the basis of which entire business plan has been built.
- Development of business canvas model which highlights all the key activities along with resources, value proposition etc.
- Developing a competitive strategy for the new recruitment agency.
- Considering the challenges business has to face while delivering services.
- Proposing a final business plan along with strategies, concepts, planning and projected financial project of the business.
The present business plan being developed is based on recruitment agency where main motive will be to render best recruitment services to the companies and other type of organizations who are in need of right candidates. So, to implement this business plan feasibility research has been carried out. It will support in analysing the positive along with successful factors in order to make this plan feasible.
Structure of the entire business plan represents the process by which the entire plan will be prepared. It takes into consideration key areas which are concept and feasibility research, introduction, model and business plan. All the chapters will be developed in proper sequence so as to know overall feasibility of the plan and on the basis of this funds can be allocated to gain favourable results. Apart from this financial analysis will be undertaken through preparation of balance sheet, profit and loss account as through this business can be easily implemented in more effective manner.
1.4 Relevant models and information sources
Learning and knowledge obtained from MBA degree has been used in development of present business plan. All the models, conceptual tools and learning which has been acquired during the course has supported in conducting the business plan in effective manner.
- Timescales for achievement
- The concept statement
- Value proposition
- Feasibility study
- Financial statements
- SWOT analysis
- Ansoff matrix
- Value chain
- PESTLE analysis
- Cash flow statement
- Break-Even analysis
All these models have been used in the study for preparation of business plan and through this feasibility of the business can be known easily.
1.5 Actionable assumptions
In order to develop new business plan, below are some assumptions on the basis of which entire plan has been developed:
- It is expected that talent hunt will satisfy recruitment needs of various companies and will provide best candidate to the business organizations.
- Business will be set up in London and in starting only one brand will be opened.
- Staff members will remain committed towards the work.
- Different sources will be undertaken for filling the vacant posts of the firm.
- Tax rates are assumed 20% on profits.
1.6 Time scale
The business proposal development and overall functions will be carried out within time period of 2.5 years.
Chapter 2: Business Concept
2.1 Description of the business concept
The proposed name of the new business is “Talent Hunt” whose main purpose will be to deliver recruitment services to the large organizations operating in UK. Further, main stress will be on recruiting best candidate as per requirement of the company. The present business has large number of opportunities in the market as the entire recruitment industry is growing at faster pace. Business will render different type of services which matches as per need and requirement of target market and this can support in earning higher profits which is one of the main objectives of firm behind carrying out operations in the market.
Mission: The mission of new business will be “To add value in businesses to customers by providing them best recruitment solution”.
Vision: “To become recruitment agency leader in the market of UK by rendering a stream of high quality agency opportunities and other associated services”.
2.2 The concept statement
Below shown is the detailed analysis of the present business plan which considers key aspect of the study and they are as follows:
2.2.1 The product/ service
The present business will render recruitment service to the companies. Firstly the overall need and requirement of every firm in London will be assessed and on the basis of this Talent Hunt will apply higher efforts in selecting best candidate for the firm. Further, effective tools will be undertaken so as to share information regarding vacant post in an organization and through this quick response can be received easily from the candidates who are searching for job. Apart from this different departments are present who will apply efforts in searching for the best candidate and through this business goals can be accomplished in effective manner.
2.2.2 Target market
The target market for new business named “Talent Hunt” will be large organizations that are in need of new employees on continuous basis. Further, it is well known fact that to select and hire new candidate is time consuming for business and due to this basic reason new business will have tie up with different organizations as through this firm can easily focus on its mission and vision being developed. Due to this basic reason, business will highlight its entire range of services in front of organizations operating in the market of UK and this can enhance overall performance of “Talent Hunt”.
2.2.3 Value added and specific features
The value added feature present in the new business is the quality of service which will be provided to the customers. Further, business will strongly focus on quality as through this right candidate can be assigned right job as per qualification and skills. Quality is regarded as one of the major feature which every organization considers at the time of selecting or hiring workforce. Through this business can easily take advantage of efficient manpower and can assist in carrying out business operations for longer period of time. Apart from these major activities will be performed by business on its own such as salary negotiation, initial screening, background check etc. Candidates will be transferred for the final round to company.
In order to add more value in the business operations it is beneficial to consider ERRC model as it supports in identifying the potential ideas to value innovative in the business enterprise.
Eliminate: In the first stage of elimination business can identify all the list of activities which can be eliminated and this can reduce overall cost of the firm. Further, the blue ocean strategies review the systems along with processes being applied within the workplace.
Reduce: In this stage business can identify what can be reduced rather than eliminating it. Further, through this cost can be saved and in turn provides large number of benefits to the business.
Raise: Once process of elimination is over then business can focus on increasing aspect of service that is of high value to customers.
Create: It is the last stage where new ideas can be introduced which can be used in the business. But it is required to ensure that it creates benefit for customers which they really expect.
2.2.4 Those involved
The people who will be involved in the present business plan are my friends and other family members. Further, different experts will be hired with the help of which right candidate can be selected of every field where engineer, MBA etc. Apart from this to manage different departments various experts will be hired so that requirement of other businesses can be met easily and through this mission and vision of business can be accomplished in effective manner.
2.3 Window opportunity
It will be great opportunity to implement this plan as the service rendered by “Talent Hunt” will be different from other agencies operating in the market of UK. In the present scenario demand for recruitment services is increasing at faster pace and large number of companies prefers to take advantage of this service. Due to this basic reason their exist wide range of opportunities due to which business can easily enhance its performance in the market and can act as development tool. Further, business has opportunity to attract large number of organizations carrying out different type of organizations carrying out operations in the market of UK (Tipper, 2004). Apart from this, the site being selected for rendering recruitment service to the target market and it is directly associated with growth and success of firm in the market. It is expected that business will start in time period of 8 to 12 months and in this time brand its overall existence will be known in the market. No doubt, large number of opportunities is present with the business and they can be easily grabbed through proper functioning by team members.
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Chapter 3: Feasibility Research
3.1 Feasibility research plan
In present scenario, it is really difficult to acquire capable candidates for vacant position. The researcher needs to judge feasibility of business planned throughout the report. The promoters are able to generate sufficient amount of profit if new venture proves to be viable in nature. It is through testing feasibility of the organization on various grounds such as finance, marketing and demand levels within an economy (Farrow, 2007). The business unit planned throughout the report is going to achieve success when its feasibility is tested beforehand. The section proposed herewith emphasizes on testing feasibility of project into consideration. The section emphasizes on testing viability of the business unit in the form of financial, marketing and operations feasibility. The testing of viability is considered to be important in nature since it provides guidance to promoters. The researcher is going to test feasibility of business planed through this section. This in turn helps in guiding promoters’ action for the start of new venture.
By knowing the feasibility of the plan it is possible to identify the opportunities present in the market and in turn they can be grabbed easily by establishing the venture. No doubt, establishment of new business requires high investment due to which it is necessarily required to undertake feasibility study as with the help of this it can be known how full amount can be utilized so as to grab opportunities present in the market. Further, their exist large number of challenges which can also be identified and in turn corrective actions can be taken well in advance which is beneficial for the new business in every possible manner. Therefore, it is the main motive of feasibility research plan.
3.2 Primary & secondary data needs
The researcher needs to accumulate primary and secondary data for purpose of conducting research. In order to judge feasibility, it is essential to accumulate data related to field of study. The primary information is collected for the first time so as to support research into consideration (Kumar and Phrommathed, 2005). Secondary data on other hand is extracted through published journals, articles and other materials. In present case, the feasibility of business plan can be judged through collection of secondary information. The secondary information helps in understanding the industry performance and expected growth. This in turn helps in evaluating growth potential associated with business planned through the report. Henceforth, the secondary information will be accumulated for the purpose of conducting research into consideration. It is through secondary information that the researcher is able to extract relevant information and conduct the analysis. The extracted information is going to help in testing feasibility of business planned through the report.
Further, it is well known fact that no study can be carried out without accessing primary and secondary information. Both the sources of information are equally important for the present business plan as through secondary information it is possible to know feasibility of feasibility of recruitment agency in London UK. Moreover, primary information is not needed in the present study due to which only secondary sources have been considered in the research so as to enhance its efficiency.
Different articles have been considered in the research which highlights overall position of recruitment industry in the market and through this new business can get idea regarding the growth opportunities present in the market in near future. In short without collection of secondary information it is not at all possible to carry out in-depth analysis and leads to decline in efficiency of the study. Further, books and journals associated with the topic also provides base to the entire research and in turn effective information can be attained easily through which aims and objectives of research can be attained easily. Moreover, it is required to ensure that secondary sources are reliable and valid too as considering inappropriate data for the study can lead to unexpected results.
3.3 Research Methodologies
The research methodology is a section that provides guidance to researcher for effective completion of research work. In order to test the feasibility of new venture planned, it is essential to conduct analysis of relevant information (Neuman, 2005). Further, in every study it is required to select right tools and techniques so that overall efficiency of the research can be enhanced easily. Selection of methodological tools depends on the nature of research and is associated with the aims and objectives of research. Further, it assist in answering all the research questions which have been developed in the research. Research methodology part undertakes different areas which are research philosophy, design, data collection, analysis, limitations of the study etc. The methodologies and techniques that are adopted for conducting research work are discussed underneath in detail.
Research philosophy: The business proposal is said to be based on either interpretivism or positivism philosophy. Interpretivism posses a philosophy which is not reasonable to accumulate whole understanding of particular subject matter (Marczyk, DeMatteo and Festinger, 2005). This philosophy is based on the belief that psychology of individual plays significant role in understanding about the topic or challenges that are being present in the universe. Further the, interpretation of particular fact along with reality is associated with the nature and behaviour of individual. Interpretivism as a philosophy depends upon the qualitative data. On the other hand positivism philosophy is based on the belief that reality is of stable nature and can be observed from the perspective of research objectives. On the other hand, positivism as a philosophy depends on quantifiable observation which leads to statistical analysis. It is a kind of factual knowledge which has been attained with the help of observation. Further, in this type of philosophy the role of researcher is limited to data collection and interpretation through objective approach.
For developing the present business plan interpretivism as a philosophy has been selected as through this researcher can easily interpret the elements of the research and integrates human interest into the study. Further, it is possible to identify whether the idea of setting up of new recruitment agency is London is feasible or not. Apart from this, interpretivism as a philosophy can provide support in dealing with the issues being associated with the research.
Research design: The business proposal planned herewith needs to be presented in an appropriate manner. The research design indicates the presentation method that is adopted on part of researcher. Any kind of research is said to be based on descriptive, exploratory and experimental design (Patton, 2005). The descriptive design emphasizes on conduct of analysis through adoption of existing theories and models. Exploratory design on other hand emphasizes on exploring some new concept or theory. Finally, experimental design focuses on conducting scientific experiments for proving some new fact. In present case, the researcher is going to adopt descriptive design for the purpose of conducting research work. It is through descriptive design that the researcher is able to present research outcomes in an efficient manner. By adopting descriptive design it is possible to describe the characteristics of population. Further, description of the topic being chosen for research can be given easily and in turn study can be carried out thoroughly. It involves one time interaction with individuals who are linked with the research. Investigator in the study interacts with participants and different techniques are employed for obtaining information.
Research approach: The research approach is considered to determine perceptions possessed on part of researcher for completion of completion of research work. The study proposed herewith is considered to be based upon one of the two approaches: inductive or deductive approach (Mackey and Gass, 2013). The inductive approach starts from observations of prevailing facts and figures. Thereafter, the pattern is analysed for the purpose of testing hypothesis and proving certain existing theory. On other hand deductive approach tends to create certain theory through hypothesis testing. The results generated through hypothesis testing are confirmed through continuous observations. The study into consideration emphasizes n testing the feasibility of business planned through observations of existing facts and figures. It can be therefore said that the study into consideration is based on inductive approach. It is through adoption of inductive approach that the researcher is able to generate valid and reliable outcomes.
Inductive approach is appropriate for the present research as the entire business plan is based setting up of new business such as recruitment agency. Therefore, the research has been carried out specifically in order to know the feasibility of this business and on the basis of this decisions can be taken whether to implement this plan or not. Moreover, the main reason behind not adopting deductive approach is that in this type of approach results move from general to specific which is not at all suitable for the present research. By employing appropriate approach it is possible to answer all the research questions which have been developed in the research and leads to expected outcomes.
Data analysis: It is essential for researcher to conduct an in-depth analysis of information accumulated through the research. The viability of business proposal can be analysed by adoption of either quantitative or qualitative methods (Christensen and James, 2008). In present case, the information accumulated is analysed by way of adoption of qualitative techniques. The qualitative methods help in testing feasibility of the study into consideration. It is through adoption of qualitative techniques that the researcher is able to test feasibility of business planned. The technique helps in drawing valid and reliable outcome for the business proposed through the report.
For the secondary information collected their themes have been formed as through this it becomes easy to know whether the new business is feasible or not. Apart from this, primary information has not been undertaken in the present research due to which themes have been formed of secondary information only and it can provide support in knowing about the feasibility of the plan which has been prepared. On the other hand quantiative technique has not been employed as data is not present in numeric form and it can only be analysed with the help of qualitative technique. Therefore, this can be regarded as one of the main reason behind undertaking qualitative method for analysing secondary information rather than quantitative one.
So these are some of the effective tools being employed in the present business plan which strongly focuses on the key aims and objectives of the research. Moreover, all these tools have been adopted by considering the nature of business plan as wrong selection of methodological tools acts as hurdle in implementation of plan which is unfavourable for the new business. Therefore, through this it can be said that right tools and techniques have been selection for the present business plan.
3.4 Five key areas of feasibility research
Talent Hunt is a consultancy firm that is going to provide recruitment services to its clients. The organization is going to undertake complete responsibility of recruitment process within the business unit. The business unit is going to bridge gap between qualified candidates and the organization. This is possible by providing services to both groups of parties. The Talent hunt is going to charge prices for its services from companies to which consultancy services are provided. It is on the basis of size of company that the organization is going to charge fees for taking responsibility of recruitment process. Henceforth, the business unit is going to charge fees from organizations to which consultancy services are provided.
It is well known fact that recruitment industry of UK is rising at faster pace and large number of companies prefer to hire candidates with the help of agencies as it directly saves their time along with cost. Due to this basic reason it is beneficial for new business to implement the business plan. Main service is linked with recruitment where Talent hunt will directly approach large organization so as to identify their manpower needs. Further, after determining the needs various sources will be considered so as to search for best candidate which best matches with the requirement of organization. Moreover, main stress of management is on recruiting skilled and knowledgeable so that it may have positive impact on the brand image of organization and can act as development tool. Apart from this it is necessary to make modifications in the existing range of services so that demand of customers can be satisfied easily and in efficient manner.
Industry feasibility research
Recruitment industry of UK is growing at faster pace and it is providing support to every kind of individual who is searching for job in the society. More than 600,000 people have found job on permanent basis with the help of recruitment agencies in the year 2014. 1.1 million Agency workers are employed in temporary roles at any one time. At present around 8,000 recruitment businesses are operating in the market of UK and this number is growing at faster pace (Countouris, 2013). On the other hand UK is adversely affected by unemployment and this rate has fallen as many private agencies are delivering services above the expectation level of customers. In short, every business is provided support by recruitment agencies and due to this reason less time and money is invested by organizations in order to search for best candidates (Young, 2015). 93% of the firms have used social media so as to assist with recruitment. This has directly supported new businesses to enter into the market of recruitment and in turn they are being able to grab large number of opportunities present in the market. Rise in dependency of organizations towards recruitment agencies is benefiting all the businesses rendering recruitment services. Further, competition level is rapidly rising in the market due to which it has become necessary for every recruitment agency to deliver effective services as per requirement of the clients. After gathering statistical tools it can be said that in near future recruitment sector will grow as more job opportunities are present in the market and to fulfil such recruitment needs agencies are strongly working in favour of it (Toms, 2012).
Time to time new agencies are entering to the recruitment market of UK as all the businesses established at present are able to grab many opportunities present in the market. Further, many companies are operating in London who are in need of skilled workforce and such requirement can only be fulfilled by different type of agencies which are being established in the market. The entire industry is enjoying the benefits of higher profitability and revenue level is rising at faster pace. Country like UK is developed and such nation generally require skilled employees so that overall operations of organization can be carried out in effective manner. The overall growth in the industry can be seen in terms of employees being recruited every year and its overall percentage has increased as compared with past. So by considering the positive response of the recruitment industry it is feasible to set up business.
Market feasibility research
The entire recruitment market is in favour of new business as it posses power to provide large number of opportunities to the businesses operating in this sector. UK job market is recovering at faster pace but there are still some challenges present which agencies and other businesses operating in this sector have to face. Further, some bigger businesses have started to develop their own in house recruitment teams which directly states that the vacancies passed to the agencies are increasingly the harder to fill roles. Moreover, expectations of customers are increasing at faster pace where companies are demanding skilled workforce and it has become little bit difficult to find candidate who can meet customer expectations. The number of people being actually employed in the sector rose by 2.9pc to 96,397 (Tovey, 2014). Apart from this the online tools has made the work of sourcing much more easily and in turn the advanced technology employed has made business much more efficient. As per the forecasting report total industry turnover will rise by 9pc next year in the year 2015. So, this represents the actual growth which is beneficial for businesses operating in this sector and who is planning to enter into the market of recruitment. Therefore, with the help of statistical information gathered it has been found that market of recruitment is rapidly growing and in turn it is beneficial for different type of agencies.
Market research has shown positive results where it has been found that recruitment market of UK is growing at faster pace and in turn it is providing ample of opportunities to existing firms operating in the market. Further, employment opportunities are easily present in the market of UK and due to this basic reason recruitment agencies are directly benefited. Total value of UK recruitment industry is around £26.5 billion and this value represents overall growth in the entire industry (Fidgeon, 2008). Therefore, it is necessary for the new business to develop effective plans as with the help of this it is possible to work efficiently in the market and in turn business can gain competitive advantage with the help of this. Further, it is well known fact that before undertaking any specific business plan it is necessary to undertake market feasibility as it highlights key challenges present in the market along with different type of conditions prevailing in the market which business has to handle for its smooth functioning. Apart from this competition level in the entire market is quite high and different type of agencies are being present which are rendering recruitment services to the customers. Therefore, appropriate strategies are required to be undertaken for the long term survival of the business and can assist to deal with the sustainability challenges.
In order to prepare effective business plan it is necessary to ensure that organization is feasible. Further, it is required to hire skilled workforce so that services can be rendered above expectation level of the target market. Due to this basic reason “Talent Hunt” will hire experts and professionals who have capability to assess skills and knowledge of the individual applying for a specific post. Moreover, some qualified persons have been contacted well in advanced and they will be hired after all the activities are completed. Other the other hand one professional is also required who can ensure that right candidate has been selected which is fit for the job assigned. Moreover, majority of the service will be rendered to customers online and no other sources will be used as they are regarded to be less effective as compared with others.
The new business named “Talent Hunt” is capable enough to deliver effective services to the customers and is feasible too. Further, the growth taking place in the market is allow business to grab large number of opportunities and in turn is acting as development tool. Apart from this, additional services will also be delivered to customers apart from recruitment such as career advice and through this business can easily gain competitive advantage and can grab opportunities present in the market. Organization named “Talent Hunt” posses capability to deliver effective services to the target market as per expectations of the customers and can satisfy need of customers in efficient manner. Further, skilled workforce has been hired who can easily satisfy recruitment needs of the large sized organizations operating in UK. Apart from this, organization is newly established due to which it is necessary for management to have proper idea regarding the operations which have to be carried out in the market. In the present era large number of recruitment agencies are setting up business in the market of UK and this business is highly feasible. Moreover, the location selected for setting up business is present in the centre of city where all the organizations can be accessed easily. So, this can provide large number of opportunities to the newly established business such as higher profitability along with market share.
It is essential for promoters to judge financial feasibility of the venture proposed herewith. It is through testing financial feasibility that promoters are able to decide appropriate course of action for future. The viability of business proposed through research on financial grounds is tested through preparation of income statement, balance sheet and cash flow statement. The financial projections for same are presented in tables underneath. It is regarded as one of the most important part of business plan as through this it can be known whether business is financially feasible or not. Further, financial statements are prepared such as balance sheet, profit and loss account and income statement which involves all the key activities of the business and they are linked with growth of enterprise.
Balance sheet prepared has represented all the assets and liabilities of the Talent Hunt. Further, cash flow statement has been prepared for 5 years where cash inflow of the new business is from activities such as bank loan, owner capital and overall revenue. Further, cash outflow activities are registration and legal charges, infrastructure and design, rent, utility, salary, insurance etc. All these are activities which are leading to outflow of cash and in short they are major expenses of the business. Further, it is necessary for company to control all the major expenses which business has incurred as rise in overall expenditure level can have adverse impact on the entire firm. Apart from this, forecasted income statement has been prepared where business is receiving income from sources such as utility and maintenance, salaries,
The financial estimation presented above helps in judging feasibility of the business planned in terms of profitability and cash flow. An overview of financial estimation is detailed underneath so as to provide guidance to promoters.
Assumptions for financial statements
- The forecasted statements are based on list of assumptions. The lists of assumptions that are taken into consideration for the purpose of projections are detailed underneath.
- It is assumed that the business unit is assumed to charge fees of £ 20000 from each of the organization. Moreover, in the first year of operations Talent Hunt is assumed to serve approximately seven clients. This in turn results in estimation of annual revenue of £ 140000.
- On the basis of expected industry growth, it is assumed that newly established venture is going to grow at rate of 9% per annum.
- It is assumed that new venture is established with initial investment of £ 80000. The assumption is made on basis that the promoters need to make lower investment due to establishment of venture in service sector.
- The majority of investments in case of service sector are assumed to be made into the acquisition of fixed assets. Henceforth, it is assumed that 50% of overall investment is made into purchase of fixed assets. Further, the new venture is assumed to make investment into infrastructure & designing and promotions & advertisements.
- The utilities and maintenance are expected to incur 5% of revenue for the new venture planned through the report.
- It is assumed that the organization is going to pay rent of £ 20000 which is expected to increase at rate of 5% per annum.
- The miscellaneous expenditure is assumed to be at 3% of revenue.
- It is assumed that salaries are going to increase at rate of 2 % per annum.
- In order to estimate make financial estimations, it is assumed that the organization is going to charge deprecation at rate of 10%.
- The bank loan is assumed to be repaid in equal monthly instalments of five years.
- Finally, it is assumed that the organization is going to write preliminary expenses at rate of 10% per annum.
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Forecasted cash flow statement
The projected cash flow statement for new venture indicates that the organization is generating sufficient cash flow on annual basis. As per the estimations, cash flow on annual basis is expected to increase. The increase in net cash flow on annual basis is expected to accumulate in cash balance. This in turn results in increasing available amount of cash balance with the organization. Further, cash flow statement has been prepared for five years which represents all the key activities such as owner capital and bank loan which are leading to inflow of cash. Business operations will be carried out with the help of funds obtained with the help of owner's capital and this is appropriate for the new business. Apart from this their exist large number of activities which are leading to outflow of cash and it involves infrastructure and design, purchase of fixed assets, salaries, utilities and maintenance etc. All these are major expenses for the business and it is necessary to control them for the betterment of new business. Moreover, by saving overall cost funds can be used in other development activities such as in expansion and in any other form of plan which is suitable for business.
Forecasted income statement
As per the forecasted income statement, it can be claimed that the business unit is expected to earn sufficient amount of profitability. Moreover, the profitability is estimated to increase on annual basis. It can be therefore claimed that the new venture is going to generate sufficient amount of profits on annual basis. Henceforth, the organization is considered to be profitable and viable option for investment. In the income statement of new business crucial items have been considered such as list of activities. Main revenue source of the firm will be fees which is being charged by Talent Hunt for delivering service to different type of organizations. Further, as business is newly established then large amount of expenses have to be incurred which considers rent, salary, insurance, depreciation etc. Further, management has to focus on all these items as by controlling major expenses profit margin can be increased easily.
Forecasted balance sheet
The forecasted balance sheet indicates that financial position of the organization improves on continuous basis. It is said that overall possession with business is going to increase on annual basis. The organization is going to reinvest the amount of profit earned for growth and expansion purpose. It can be said that the business unit is expected to be in better position within duration of five years.
As per the financial forecast, it can be claimed that the new venture is expected to be profitable in nature. Moreover, it is projected that the organization is going to have sufficient amount of assets at end of the five years. It can be claimed that the business unit is expected to earn sufficient amount of profitability and business performance is improved. This statement has supported in knowing the it is possible to earn higher profits by investing in the business and overall aims and objectives can be accomplished easily. Further, focusing on long term growth is much more important especially for time period of 5 years as through this business can easily grab opportunities present in the recruitment industry and in turn can act as development tool.
So, these are the three main statements being prepared and on this basis forecasting has been done so that operations can be carried out in efficient manner. Further, on the basis of income statement and cash flow it becomes easy for business to control all the major expenses and in turn income level can be increased up to extent. This can enhance business performance for longer period of time and can provide a base to gain competitive advantage. Further, the main source of income for new business is only the fees which has been received by rendering services to the large sized organization and due to this basic reason focus of business must be on quality service.
3.5 Results of research in terms of Ambition Vs Ability
The overall results of the study represents that it is feasible to allocate funds in the new business. Further, business linked with setting up of new recruitment agency is feasible and suitable for management. Secondary research has supported in determining feasibility of the business. Further, results of market research are also positive and it has encouraged management to set up the business named “Talent Hunt”. Moreover, the ambition of conducting this business in efficient manner and increasing overall presence in the market can be accomplished easily.
But on the other hand, one of the biggest challenge affecting business performance is rise in competition level as many firms are operating in the market who are rendering recruitment services and due to this basic reason new business has to distinguish its services from those of other companies so accomplishing overall mission and vision developed. Apart from this business is able to satisfy need of the target market in efficient manner as proper resources are present which involves financial, technological etc. Therefore, the feasible results derived after conducting the research has enhanced business strength to carry out operations in the market and in turn has acted as development tool. Further, it is the first and foremost duty of management to ensure that services are delivered as per expectation level of the companies otherwise it can lead to decline in overall performance of the business.
3.6 Emergent resources required
It is well known fact that every business requires some specific resources so as to carry out operations in the market and its absence can lead to decline in performance of firm in the market (McKitterick, 2012). Therefore, the most crucial resource required by the business is manpower as for selecting candidate efficient workforce is required so that right person may be assigned right job. Further, technology as a resource is also required where business has to use advance tools such as computers for storing information of candidates so that they can be contacted in near future when firm is having vacancy. Along with this, management should focus on developing appropriate and creative infrastructure so that better environment is provided to all the employees. Furthermore, each and every department should be segregated in suitable manner with the aim to execute work of each department in feasible and strategic manner.
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