Comprehensive Business Proposal for Will Bury
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- Date Submitted: 09/15/2011 07:49 PM
- Pages: 9
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This business proposal will identify the current state of Will Bury digital books and recommend a strategy to increase revenue and identify an optimum quantity to produce that will maximize the company’s profit. Recommendations include pricing and non-pricing strategies for projected economic stage, operating decisions, effect of current credit market, and international trading. The proposal will also identify the fixed and variable cost associated with running the business and proposes ways to reduce such costs. In the end, the proposal will carve out the future state of Will Bury by suggesting few creative opportunities.
Current State
Will Bury is an innovator. He has developed and patented a digitizing machine that can transform printed words from text to create an audio file with option to read it digitally or listen with a synthetic voice. Will currently works in a company with $200,000 as salary and supports his family with this and uses his free time to invent the machine; and at this time he is involved in converting the textbooks into audio files. Appropriate industry type for Will Bury is ‘Information’ and NAICS code for this industry category is 51 (U.S. Census Bureau, 2009).
Assumptions
For an effective recommendation to Will Bury, following are the assumptions made.
• Will Bury has no competition at this time because of a patent on the product.
• For every $1 increase for new books up to $19, the sale raises by 25% and declines by 20% thereafter
• For every $1 decrease for old books, up to $5, the sale raises by 15% and declines by 10% thereafter
Opportunity cost
Will considers quitting his job and focus full-time on his business. If he does, his opportunity cost is $200,000 and benefits. “An opportunity cost is the value of the next best thing forgone” (McConnell, Brue, & Flynn, 2009, p. 5). By working full-time, Will adds more cost to the company. At this early stage Will should continue to stay in his current job and add a...
Current State
Will Bury is an innovator. He has developed and patented a digitizing machine that can transform printed words from text to create an audio file with option to read it digitally or listen with a synthetic voice. Will currently works in a company with $200,000 as salary and supports his family with this and uses his free time to invent the machine; and at this time he is involved in converting the textbooks into audio files. Appropriate industry type for Will Bury is ‘Information’ and NAICS code for this industry category is 51 (U.S. Census Bureau, 2009).
Assumptions
For an effective recommendation to Will Bury, following are the assumptions made.
• Will Bury has no competition at this time because of a patent on the product.
• For every $1 increase for new books up to $19, the sale raises by 25% and declines by 20% thereafter
• For every $1 decrease for old books, up to $5, the sale raises by 15% and declines by 10% thereafter
Opportunity cost
Will considers quitting his job and focus full-time on his business. If he does, his opportunity cost is $200,000 and benefits. “An opportunity cost is the value of the next best thing forgone” (McConnell, Brue, & Flynn, 2009, p. 5). By working full-time, Will adds more cost to the company. At this early stage Will should continue to stay in his current job and add a...