Business Proposal Example – Automotive Electronic Components

Electronic Components Assembly for Automotive Industry

  1. BUSINESS PROPOSAL EXAMPLE COMPANY Executive Summary

The BUSINESS PROPOSAL EXAMPLE COMPANY specializes in the production of electronic assemblies for the automotive industry (automotive) and radio engineering. The company represents the interface between the producers of individual electronic components and the BASIC BUSINESS PLAN TEMPLATE FOUNDERS of finished electronic products from both areas.

The finished electronic assemblies can be differentiated into radio remote controls, gas and radiation meters as well as various control units for racing and rail traffic. As a company based in  BUSINESS PROPOSAL EXAMPLE REGION, the BUSINESS PROPOSAL EXAMPLE COMPANY focuses on the  BUSINESS PROPOSAL EXAMPLE REGION market, but in the future XXXX and XXXX will be targeted. In a period of X to XX years, the company will grow into a stable company in BUSINESS PROPOSAL EXAMPLE COMPANY REGION market for automotive and radio technology and employ about XX employees in the production of electronic assemblies. The company strategically targets customers in the automotive, radio technology and aerospace sectors. The suppliers of the individual electronic components, which are needed for the composition to an electronic assembly, refer to the company from  BUSINESS PROPOSAL EXAMPLE REGION.

The founding member BUSINESS PROPOSAL EXAMPLE FOUNDER qualifies for this enterprise due to his successfully completed training as Electronic Communications Specialist, in the field of information technology, as well as his many years of professional experience and expertise in the field of electronic communication, especially in production and project management.

BUSINESS PROPOSAL EXAMPLE FOUNDER maintains a long-standing and positive relationship with eleven suppliers of electronic components and was able to win over the companies for future cooperation.

BUSINESS PROPOSAL EXAMPLE FOUNDER has already contacted four potential customers in BUSINESS PROPOSAL EXAMPLE REGION , so that nothing stands in the way of a successful launch of the BUSINESS PROPOSAL EXAMPLE COMPANY.

 

Product

The founding company will offer the production of electronic components for the automotive industry, the radio technology and, in the medium term, also for the aviation industry by purchasing individual electronic components. The company already has seven suppliers in SIMPLE BUSINESS PLAN TEMPLATE REGION. 

The manufacturing process for the complex assemblies consists of four elementary production steps:

  • Paste Printing
  • Assembly of the machine
  • Brazing
  • Test Phase

Paste printing is the most important process for producing complex assemblies. In the paste printing process, the solder paste is pressed onto the components using a template. In this step, the tiny pads of the components get as much solder paste, so that soldering creates a solder joint. The solder joint must exactly meet the customer requirements, so that special care and accuracy are required at this point. Solder depletion and solder surplus must be avoided at this point, so that no open solder joints or solder bridges occur. Process optimization and quality control ensure high product quality in this step and avoid an increase in production costs.

In the next step, the components are prepared for the placement machines and placed on the circuit board. It is very important that there is no component confusion during assembly, which prevents intelligent software. When the circuit board is fully populated, it can finally be soldered in the oven. In the soldering oven, the molten solder paste on the circuit board connects to the contact surface of the component and can now cool down.

In order to ensure optimum product quality, the finished component is then matched with a reference component via intelligent camera systems. Only after this step is the production process completed. The BUSINESS PROPOSAL EXAMPLE COMPANY specializes in the production of four product groups with a material usage of XX percent.

X) Radio remote controls

The company will manufacture radio remote controls for the automotive industry as well as for forestry. In modern forestry, the radio remote controls serve as a massive relief and the timber harvest is through the modern technology, for example, in cable cranes in the forest b because they’re more economical and safer.

X) Gas and radiation meters

Danger from toxic or flammable gases and vapors can be reliably detected by the modern technology of a gas detector. This creates integrated sensor detection that prevents serious accidents and poisoning.

X) Control units for racing

In motor sports, engine controls are used, which take over the control of ignition and electronic injection systems

X) Control units for rail traffic

The on-board computer shows the various displays, in and on the train, up to the driver. For example: outside the first car, line, train number and train stop.

 

Unique Selling Proposition Features

The BUSINESS PROPOSAL EXAMPLE COMPANY wins above all through the experience, expertise and network of the founder BUSINESS PROPOSAL EXAMPLE FOUNDER. For more than XX years, BUSINESS PROPOSAL EXAMPLE FOUNDER has been working in information technology in various positions and can look back on many years of successful professional development. Strategic, goal-oriented and future-oriented, BUSINESS PROPOSAL EXAMPLE FOUNDER planned his enterprise diligently and can rely on strong partners. The passion for electrical engineering, combined with the professional customer care, therefore characterize    BUSINESS PROPOSAL EXAMPLE FOUNDER as founder for the planned company. Even privately, BUSINESS PROPOSAL EXAMPLE FOUNDER already enjoys a friendly and close contact with his potential customers.

The proximity of the location of the BUSINESS PROPOSAL EXAMPLE COMPANY to the location of potential customers is also a unique selling proposition. The BUSINESS PROPOSAL EXAMPLE COMPANY has chosen BUSINESS PROPOSAL EXAMPLE REGION as a controllable and economically strong geographic area for market entry.

 

Goal of the Enterprise

For the first three fiscal years, BUSINESS PROPOSAL EXAMPLE FOUNDER will establish BUSINESS PROPOSAL EXAMPLE COMPANY as a fixture in the electronic assembly market. The number of employees will increase from two in the first year, to four in the second year and to six in the third year. The employees are used in purchasing, machine management and production of test references. The continuous consolidation in cooperation with the already selected customers leads to an increase in turnover of $XXXX (USD) in the first year, of $XXXX (USD) in the second year, and of $XXXX (USD) in the third year. In the medium term, the production of electronic components for the aerospace industry is planned. Here, BUSINESS PROPOSAL EXAMPLE FOUNDER can rely on many years of direct contact through its last activity as Aerospace Project Manager at XXXX. The company will also grow to become an established player in five to ten years with twenty employees.

 

  1. BUSINESS PROPOSAL EXAMPLE COMPANY Market Analysis

The sales market of the BUSINESS PROPOSAL EXAMPLE COMPANY can be subdivided into the following areas: automotive industry with sub-divisions rail traffic and motorsports as well as forestry and aviation.

Automotive industry: The XXXX automotive industry (company based in SIMPLE BUSINESS PLAN TEMPLATE REGION) recorded in the year XXXX a worldwide generated turnover of XXX, X billion dollars. After a short-term decline in the year XXXX due to the global economic crisis, the industry recovered quickly and made XXXX in SIMPLE BUSINESS PLAN TEMPLATE REGION with a total turnover of XXX, X billion dollars. As a result, SIMPLE BUSINESS PLAN TEMPLATE REGION  is one of the world’s largest auto producers alongside XXXX and XXXX. Both the domestic and foreign sales of the automotive industry rose again in recent years and reached XXXX again the peak of before the economic crisis XXXX (foreign sales) or XXXX the value of XXXX (domestic sales).

Source: statista

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The automotive supplier industry, in which the BUSINESS PROPOSAL EXAMPLE COMPANY is based, with the products for the automotive industry, registered an annual turnover of XX, X billion dollars for XXXX. Already ten years later in the year XXXX, the annual turnover increased to XX, X billion dollars. After a short-term decline in turnover during the global economic crisis in XXXX to XX, X billion dollars, the automotive supplier industry in SIMPLE BUSINESS PLAN TEMPLATE REGION recovered quickly, and recorded an annual turnover of XX, X billion dollars.

Source: statista

According to the XXXX, suppliers generate the majority of their turnover in SIMPLE BUSINESS PLAN TEMPLATE REGION because their customers work in SIMPLE BUSINESS PLAN TEMPLATE REGION. Export revenues reached XX, X billion dollars in XXXX, an increase of around X%. Domestic sales at automotive suppliers rose by X% to XX, X billion dollars.

Source: VDA

According to XXXX, SIMPLE BUSINESS PLAN TEMPLATE REGION was also the leader in terms of research and development with XX, X billion dollars expenses at the top. Employment growth continues, meaning that the BUSINESS PROPOSAL EXAMPLE COMPANY can expect a thriving sales market in the automotive industry.

The BUSINESS PROPOSAL EXAMPLE COMPANY is also relying on XXXX for a strong sales market in the automotive industry. This industry, with its approximately XXX companies, has an annual turnover of XX billion dollars, and is thus one of the second largest export factors in XXXX besides mechanical engineering.

Source: Autoland Austria

XXXX spends just under $XXXX (USD) on research expenditure per job and the strategically favored country has an annual production increase of X% since the year XXXX. Around XXX subcontracting companies are now a stable player in the worldwide automotive market with “made in XXXX” and have an annual turnover of XX, X billion dollars (XXXX).

Forestry: Forestry not only produces raw materials, but is also responsible for preserving forests and for their use as shelters and recreational areas. The forestry sector behind agriculture represents the most important land use form in SIMPLE BUSINESS PLAN TEMPLATE REGION . The forestry sector has been achieving corporate income and private forest holdings since XXXX, approx. $XXXX (USD) to XXXX around $XXXX (USD) per hectare of wood floor area. After a brief decline in demand for wood in XXXX, forestry recovered again in the last X years.

Source: Federal Ministry of Food and Agriculture

An extremely positive trend in forestry is shown by manufacturers of agricultural and forestry machinery. From XXXX to an estimated XXXX, the revenue growth in this industry, for which the BUSINESS PROPOSAL EXAMPLE COMPANY will produce, will increase by XX, X%.

In the year XXXX, before the global economic crisis, the industry of the machine manufacturers for agriculture and forestry, achieved approximately XX billion turnover. Following a short-term decline in XXXX, and XXXX to X, X and X, X billion in revenue, this industry rebounded and reported XXXX estimated revenue of around XX billion in revenue.

Source: Statista

XXXX companies are currently based in the timber industry. The majority of businesses are small and medium-sized enterprises in private hands. The production volume was XXXX at around X billion dollars, and has barely changed until XXXX, so that XXXX is also a production volume of X, XX billion dollars. As the timber industry in XXXX is one of the largest employers in the country, it can look back on stable employment figures.

Source: Association of the wood industry in XXXX

Aviation: The BUSINESS PROPOSAL EXAMPLE COMPANY is also gaining a strong sales market with the sale of electronic components for aviation. In the years XXXX, the industry still achieved about XX billion dollars in sales, which increased from XXXX to XX billion. Aviation is also not affected by the economic crisis XXXX and achieved consistently growing sales figures.

Source: Statista

In SIMPLE BUSINESS PLAN TEMPLATE REGION, around XXX companies generate an annual turnover of X, X billion, of which XX% are small and medium-sized enterprises.

Source: Ministry of Transport, Development and Technology

In SIMPLE BUSINESS PLAN TEMPLATE REGION, the aerospace supplier industry is strongly supported as well: the Federal Ministry of Transport, Innovation and Technology alone sponsored the industry with XXX XXX projects, totaling XXX million in total. According to forecasts, the passenger and freight traffic in aviation will double to XXXX, so that the country promises to XXXX an annual turnover of X billion dollars. Here, too, the BUSINESS PROPOSAL EXAMPLE COMPANY offers a strong and crisis-resistant sales market.

Source: Ministry of Transport, Development and Technology.

 

Competition

The BUSINESS PROPOSAL EXAMPLE COMPANY has concentrated on a niche market in which the number of competitors in SIMPLE BUSINESS PLAN TEMPLATE REGION  is relatively low. The main competitor is XXXX. Having worked as a production manager for nine years in this company, BUSINESS PROPOSAL EXAMPLE FOUNDER has a very good knowledge of the production, manufacturing processes and the company environment on the supplier, customer and competitor side. XXXX acts as a service provider for the development and production of electronic assemblies. The customers of XXXX are also from the fields of automotive (manufacturing and supply), radio technology (railway radio), aerospace (avionics and transponder), so the BUSINESS PROPOSAL EXAMPLE COMPANY here especially by the long-term personal contacts of BUSINESS PROPOSAL EXAMPLE FOUNDER benefits.

 

Target Groups

The BUSINESS PROPOSAL EXAMPLE COMPANY targets all companies in SIMPLE BUSINESS PLAN TEMPLATE REGION that specialize in electronic components in the automotive, aerospace and forestry industries and resell them to end customers when installed in the respective product. BUSINESS PROPOSAL EXAMPLE FOUNDER can name four potential customers in SIMPLE BUSINESS PLAN TEMPLATE REGION  even before the company was founded, which are mentioned in detail under point X.X Customers and Suppliers.

 

BUSINESS PROPOSAL EXAMPLE COMPANY Risks

The BUSINESS PROPOSAL EXAMPLE COMPANY is dependent on the fluctuating exchange rate of the euro when working with suppliers from Europe. As the company mainly mentions suppliers from SIMPLE BUSINESS PLAN TEMPLATE REGION , this risk is relatively low.

The automotive and forestry sectors were hit short by the global economic crisis XXXX. This makes the BUSINESS PROPOSAL EXAMPLE COMPANY dependent on the global economic situation. However, this crisis lasted only a few years in both the automotive and wood industries. Aviation, which can grow into a supportive and crisis-proof business for the BUSINESS PROPOSAL EXAMPLE COMPANY, is unaffected by global crises.

 

  1. BUSINESS PROPOSAL EXAMPLE COMPANY SWOT- Analysis

In the following table the strengths, weaknesses, opportunities and threats are presented in the SWOT-Analysis. This marketing tool helps companies to make an analysis across all business units, and to define the results in strategic business goals. It is important to draw the company’s opportunities from the strengths and to reduce the risks by eliminating weaknesses.

Strengths: Weaknesses:
·       BUSINESS PROPOSAL EXAMPLE FOUNDER

is qualified for BUSINESS PROPOSAL EXAMPLE COMPANY foundation by his successful education and many years of professional experience.

  • Its focus on top-selling high-end industries.
  • Personal, long-standing contacts with the potential customers.
  • Already ten suppliers contacted.
·       Strong dependence on the BUSINESS PROPOSAL EXAMPLE FOUNDER and his affiliated network.

·       So far only four customers in SIMPLE BUSINESS PLAN TEMPLATE REGION  can be mentioned.

·       Dependency on important partner, BUSINESS PROPOSAL EXAMPLE INVESTOR for wireless technology,

Opportunities: Risks:
·       Expertise, experience and personal passion for the product, ensure excellent quality

·       BUSINESS PROPOSAL EXAMPLE COMPANY’s outlets are resilient to economic crises (e.g., aviation)

·       Generating existing customers or recurrent customers from good relationships with customers.

·       Achieve special conditions from good relationships with suppliers.

·       Private life and company formation are incompatible.

·       The four customers generate too little revenue to grow the business as planned.

·       BUSINESS PROPOSAL EXAMPLE INVESTOR resigns as investor.

 

  1. BUSINESS PROPOSAL EXAMPLE COMPANY Partner

 

Customers and suppliers

The following table lists potential suppliers and customers.

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  1. BUSINESS PROPOSAL EXAMPLE COMPANY Location

Just a few miles from the city center, BUSINESS PROPOSAL EXAMPLE AREA, the BUSINESS PROPOSAL EXAMPLE LOCATION is a good location for medium-sized industrial companies. The BUSINESS PROPOSAL EXAMPLE AREA offers ideal conditions for the business concept of the BUSINESS PROPOSAL EXAMPLE COMPANY, such as good availability of relevant trade fairs and companies through the local infrastructure and business landscape. Since the location BUSINESS PROPOSAL EXAMPLE AREA is considered to be one of the four major growth regions in SIMPLE BUSINESS PLAN TEMPLATE REGION, a long-term persistence of location attractiveness is to be expected.

With a well-developed airport, good road connections and the high reliability of other companies, it is ensured that goods can always be exported free of defects and punctually. An offer of highly qualified personnel, the availability of well-equipped commercial space, the personal connection of the founder with his home region, and a very high quality of life, are further arguments that were decisive for the location.

 

  1. BUSINESS PROPOSAL EXAMPLE COMPANY Marketing

 

Pricing Policy

The products with which the founding company trades are quality-sensitive components, whose price tends to be high, both in purchasing and in sales. At the same time, however, the price that the start-up company will offer to its customers also depends on the competition, since business relationships are designed to be long-term, and the success of the tender usually leads to lucrative follow-up orders and maintenance orders. Nonetheless, the BUSINESS PROPOSAL EXAMPLE COMPANY will understand itself as a specialist in the industry, and accordingly be well positioned in the high-priced segment.

 

BUSINESS PROPOSAL EXAMPLE COMPANY Communication Policy

The communication policy will tend to be lean and direct, as the customer base is manageable and it will particularly depend on the intensive care of individual major customers. It is not until the second and third fiscal years that more expansionary marketing policies will be pursued in order to acquire more customers from the industrial sectors. The BUSINESS PROPOSAL EXAMPLE COMPANY focuses on the already close partnership with those under XXXX listed four customers. In addition, there is close contact between BUSINESS PROPOSAL EXAMPLE FOUNDER and various forestry companies.

Direct marketing, such as telephone or postal business is supported by further marketing tools such as product catalogs, homepage, trade fair visits and electronic newsletters. It is particularly important to present the technical details comprehensively and to confront the customer professionally. A multilingual, error-free and well-designed website, which also takes account of the PR-effective news flow, will be particularly important for the development of the BUSINESS PROPOSAL EXAMPLE COMPANY into one of the top companies in the industry.

It will also be part of the marketing, potential and existing, to provide customers with product samples in sufficient quantity so that they can judge the quality. The customer feedback analysis will provide an opportunity for the BUSINESS PROPOSAL EXAMPLE COMPANY to further improve its products.

As soon as the BUSINESS PROPOSAL EXAMPLE COMPANY enters the growth phase, advertising on the internet and direct telephone calls will increase awareness in BUSINESS PLAN TEMPLATE REGION retailers and buyers. The BUSINESS PROPOSAL EXAMPLE COMPANY will then also increase its presence at trade fairs, networking and industry events in order to further diversify and broaden the sales channels in SIMPLE BUSINESS PLAN TEMPLATE REGION .

 

  1. BUSINESS PROPOSAL EXAMPLE COMPANY The managing director

Managing Director BUSINESS PROPOSAL EXAMPLE FOUNDER is distinguished by his training as a Communications Technician, specializing in information technology, which he passed from XXXX to XXXX and successfully completed in XXXX. As a test field electronics engineer and communications electronics engineer,    BUSINESS PROPOSAL EXAMPLE FOUNDER gained further insights in electrical engineering, because he had worked before from XXXX to XXXX as production manager. In nearly a decade,    BUSINESS PROPOSAL EXAMPLE FOUNDER has been able to get to know key contacts in the industry that are now available to him as potential partners, suppliers and customers. Insights into the quality processes of XXXX and as a project manager in the aerospace industry at XXXX, also make a significant contribution to his qualification to found this company. BUSINESS PROPOSAL EXAMPLE FOUNDER has access to a broad network in the electronic component industry, as well as to manufacturers, suppliers and customers.

 

  1. BUSINESS PROPOSAL EXAMPLE COMPANY Employees

The personnel requirements and the tasks of the employees are presented in a clear form in the following table.

Entry Time: Designation: Task:
X. Year,

X. Quarter

Purchasing (full time) Support managing directors in purchasing components, carry out quality checks, check incoming goods, etc.
X. Year,

X. Quarter

Mechanical Engineering (full time) Support and coordinate production, independently produce products/operate production machines, etc.
X. Year,

X. Quarter

Sales (full time) Advise, support and actively acquire new customers, coordinate and check logistics processes, expand and enhance the external representation of the company, maintain and support customer networks, etc.
1.1.X. Year,

1.2.X. Quarter

1.3.Customer care (full time) Support customers by phone and on-site regarding commissioning, optimal operation, maintenance and repair of equipment, as well as checking deliveries for quality and completeness
X. Year,

X. Quarter

Mechanical Engineering (full time) s.o.
X. Year,

X. Quarter

Warehouse (temporary help) Take over storage work, ensure cleanliness of the warehouse, assemble supplies, etc.

 

  1. BUSINESS PROPOSAL EXAMPLE COMPANY Financial plan

 

9.1 Explanations

The capital contribution of the managing sole shareholder as well as, if necessary, investments of the partner radio technology BUSINESS PROPOSAL EXAMPLE INVESTOR are available to the company. Borrowed capital should amount to $XXXX (USD). There is also the possibility of mobilizing additional capital from the private reserves of the managing director in the short term.

The BUSINESS PROPOSAL EXAMPLE COMPANY will be able to expand its operative business quickly and consistently thanks to its good capitalization and previous business success. While capital-intensive trading on its own ties many assets into inventory and exposes them to the risk of currency fluctuations and technical overhaul, it will be able to maintain sufficient liquidity through good organization. This ensures the flexibility to make short-term attitudes or marketing investments without sacrificing purchasing ability.

As the business has already started and sales are steadily growing, ambitious revenue planning targets can be sought. A turnover in XXXX over $XXXX (USD) is considered realistic.

 

9.2 Capital

The managing sole shareholder BUSINESS PROPOSAL EXAMPLE FOUNDER brings in a share capital in the amount of $XXXX (USD).

In addition, a foreign capital of $XXXX (USD) is targeted to lift important investments.