Pay Per Search

Until now, planning a pay-per-search campaign has been a fairly straightforward

process: You compile your list of keywords, then match them with the

appropriate search term descriptions and URLs, submit them to the site,

and boost or lower your bids as you see fit.

First Google introduced its new program, which includes the standard

pay-per-search features in addition to several auxiliary offerings; then

Overture modified its policy to include new regulations that have left

many advertisers bewildered. For those of you who find yourselves

in such a state, here's a summary of what's changed -- and

a few tips on how to comply without compromising your client's

campaigns.

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Online Business Tips

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Accounting Firm

Accounting Firm Marketing Plan

Franklin & Moore LLC

Executive Summary

Franklin & Moore LLC is an accounting firm offering traditional accounting services and business consulting. The firm's reputation is impeccable and is known throughout the San Clemente, California area as one of the top three accounting firms. Franklin & Moore LLC serves the accounting and financial needs of businesses and individuals to enable them to realize their financial goals.

Our target markets include the following.

* Businesses of more that 50 employees and/or $5 million in annual sales, particularly those in the medical/health, dental and lodging industries.
* Growth oriented businesses that will benefit from our areas of pension and retirement planning specialization.
* Individuals with a net worth of greater than $1.2 million.

Diversifying our revenue streams and leveraging our core strengths will optimize our position for the future. We will also implement marketing tactics to better leverage the firm's total capacity throughout the year, versus a heavy concentration.

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Window Cleaning

Window Cleaning Marketing Plan

Window Cleaning
by Duct Tape Marketing Coach

Marketing Vision

Business Goals

* Increase revenue by 50%
* Hire admin staff
* Launch franchise program

Purpose - We want to be known as the company that takes the work out of and puts the fun and passion into a chore most everyone hates.

Visual - We have 10 trucks out in the neighborhoods working at full capacity and our 10th franchisee just signed up. Our window cleaning products can be found online and in every grocery and hardware chain in America.
Gap Dashboard
Year 1 Year 2 Year 3
Business
Revenue Increase $1,230,390 $1,312,000 $1,353,000
Cleaning Crew Truck Purchases 2 2 3

Tactical
New Admin Staff hours/week 215 2,000 2,400

Strategic
Franchises Launched 0 0 1

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Real Estate Business

Real Estate Marketing Plan

Titicus Realtors

Marketing Vision

Titicus Realtors seeks to make first-time home buyers comfortable, happy, and worry-free both during the home buying process and even after their closings. By doing this, Titicus hopes to build a reputation as THE real estate agent in southern Connecticut for first-time home buyers, effectively eliminating competition within their market.

This marketing plan details the current and new marketing programs and practices of Titicus Realtors which will lead to establishing and consolidating this reputation.
Goals

Titicus Realtors will pursue the following specific goals:

Personal Goals for Earl Estates, owner of Titicus Realtors:

* Hire an additional agent before workload cuts into time necessary for marketing and company direction
* 20 invitations to area speaking engagements in 2012

Business Goals:

* Exceed $1 million in revenue in 2010, $1.3 million in 2011, $1.7 million in 2012
* Exceed 900 leads in 2012

Strategic Goals

* Be ranked in the top 5 real estate agencies for first-time home buyers in Fairfield County by Fairfield Homes Magazine
* Achieve 100% customer satisfaction

Tactical Goals

* Customer testimonials of at least three sentences written by 75% of successful home buyers
* Increase number of agents employed by Titicus Realtors to four by the end of 2012

Purpose

Titicus Realtors seeks to make the process of buying a first home a relief for clients, offering them such great service that all of their fears associated with the process will disappear. Through this, Titicus Realtors hopes to make home ownership, and the financial, emotional, and psychological value that comes with it, happen for as many people as possible. Ideally, the ideas and process of how customers are treated at Titicus will be shared with similarly-minded real estate agents in other towns and states so that the reach of the company's impact goes well beyond its locale.
Picture

A couple signing up with Titicus Realtors will find themselves surprised from their first interaction about the level of care and thoroughness. Through simple language and some probing questions, the real estate agent will unearth the couple's desires for their home as well as their fears. The Titicus agent seems to have seen it all before, yet does not come off as cocky or dismissive of these fears - such as the couple's fear of being taken advantage of, of buying more home than they can afford, of learning about issues with the home only after the closing, or of spending more than they should. On the contrary, the Titicus agent will provide information and assistance that shows the couple from the start that there is no need to be exceedingly anxious through this process. That anxiety will slip away as the couple's trust for their agent builds and it will be replaced by a feeling of excitement and adventure as the couple starts to see each home as a possibility.
Gap Dashboard

The Gap Dashboard represents the quantification of the key personal, business, strategic and tactical goals for Titicus Realtors. The results in all of these areas will be tabulated once a month based on the accumulation of the week's key marketing metrics as well as other items which are not tracked by the company's systems (such as the personal goals). Furthermore, rating by Fairfield Homes occurs on an annual basis only and will be entered when the ratings are released. Earl Estates is responsible for accumulating the data to check against the goals each month. He will note gaps and decide whether original goals were too lofty or whether the shortfalls were within the control of Titicus Realtors.
Gap Dashboard
Year 1 Year 2 Year 3
Personal
Invitations to speaking engagements 8 14 20
Other 0 0 0

Business
Revenue $1,039,500 $1,307,700 $1,727,820
Leads 692 830 996

Tactical
% of customer writing testimonials 60% 70% 75%
Number of agents 2 3 4

Strategic
Rating by Fairfield Homes for first-time home buyers 8 6 4
Customer satisfaction rate 90% 98% 100%

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Portrait Photographer

Portrait Photographer Marketing Plan

Ofeeld Photography

Marketing Vision

Ofeeld Photography was created to allow people to receive a one-of-a-kind, natural photo shoot - of people and of pets. Ofeeld Photography would like to be the sole on-location pet photography business in the Ohmtown area, offering a one-of-a-kind experience.

This marketing plan is designed to allow Ofeeld Photography to focus on getting our name and professional services out into the photography world. Ofeeld Photography would like to be known for the custom and professional work that is produced. Because of the unique experience of a natural setting, Ofeeld Photography is truly unique. Understanding the costs related to marketing and focusing on the avenues that produces the most return is vital to the success of Ofeeld Photography. We would also like to focus on a way to monetize prints that have been taken of nature and other subjects during the photographer's "free time."
1.1 Goals

Personal Goals

* Enter photos into photography contests
* Send photos to national magazines
* Enter photos for state fair

Business Goals

* Increase traffic to website by 2% each month
* Establish a customer base for photo shoots

Strategic Goals

* Establish a relationship with at least one pet store
* Establish a relationship with a printing company for calendars

Tactical Goals

* Devote 10 hours each week to "freelance" photography
* Create a new website for information and to serve as a portfolio

1.2 Purpose

Ofeeld Photography exists to be able to give our customers realistic and natural photographs to commemorate a time in their lives.
1.3 Picture

A potential client has already seen the work produced by D'Epth Ofeeld, professional photographer. The customer is exited to see the lasting photos that he can create for her and her family. At every communication, the customer will feel that they are taken care of and listened to in every aspect of the photo shoot. The customer will have a positive interaction with the website and picking and purchasing the photos to buy. The client's experience will be so different from any other picture taking event that she will rave to all of her friends and hand out referral cards - and those friends will use them!
1.4 Gap Dashboard

For strategic purposes, once a relationship with a printing company has been establish, Ofeeld Photography will no longer be actively looking. A long-term relationship with vendors is important, which is why there are no numbers in year 2 or 3 for talking to printing companies - we will have already found a printing company by the end of year 1. This doesn't mean Ofeeld Photography won't keep its "ears open" for potential better printing companies.

The website traffic is earmarked to grow by 2% each month, starting at 0 because there is currently no traffic to the site. We envision this to be a much larger growth, but hope for at least 2%.

By submitting photos to national magazines and entering them in contests, Ofeeld Photography will become recognized and can use that recognition in our marketing material to validate the business and professional quality we aim for with each picture.
Gap Dashboard
Year 1 Year 2 Year 3
Personal Goals
Photo Contest - number entered 2 5 7
Photos to Magazines - number of magazines 4 6 7

Business Goals
Visits to site 122 201 205
Number of photo shoots per month 13 12 14

Tactical Goals
Freelance work - hours per month 480 480 480

Strategic Goals
Number of pet stores contacted 5 2 2
Number of printing companies contacted per month 6 0

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Personal Organization

Personal Organization Consultant Marketing Plan

Declutter Coaches

Marketing Vision

We're here to help people take back their lives, time, energy and homes from the clutter that has been keeping them down. We love what we do, we're good at it, and our customers are happy.

Our marketing plan is designed to take our business to the next level, by getting every single coach involved in generating and converting leads, understanding the numbers behind our success, and implementing a new referral mechanism that will boost our revenue.
1.1 Goals

Personal Goals:

* Finish my book and get it back to publishers by March
* Be more efficient: home by 6:15pm for dinner with the kids
* More facility with social media tools

Business Goals:

* Increase sales to $3.5 million by year's end
* Increase repeat customers 30%

Strategic Goals:

* Establishing a reputation as one of the top ten experts in the industry
* Eliminating dissatisfaction among customers

Tactical Goals:

* Promote J. to head of print marketing
* Devote 1 to 1.5 hours each day for personal interaction with customers
* Cross-promotions of the book with key expert partners


1.2 Purpose

Ultimately, our business exists to help people get a sense of control over their daily life. In the process of organizing and eliminating clutter, we help them sort out their real priorities and let go of things and feelings which have been holding them back in their lives.
1.3 Picture

When a potential client makes an appointment, she has already heard glowing reviews of our services from friends or colleagues, and is eager to see why they were so positive. At our first meeting in her home, she meets a friendly, sympathetic, and practical de-clutter coach who respects her attachments to her stuff, and guides her through the process of stepping back and seeing it objectively.

Throughout the consulting process, the client can call her coach whenever she gets "stuck," and daily email suggestions keep her moving through the process. As she rids her home of unnecessary items, she starts feeling more free, more relaxed, more self-confident. The final reward for completing her de-cluttering is a catered party at her newly clean and comfortable home for 10-15 friends, where she can enjoy the fruits of her hard work, and introduce her friends to the coaches who helped her get here.
1.4 Gap Dashboard

Weekly measurements of key metrics will be averaged for each month and entered in the Gap Dashboard. The tactical and personal goals are easily measured, but the numbers for our strategic and business goals bear watching. We've linked the revenue goals to our Sales Forecast Plan and Actual tables, where we can track gaps in individual service purchases more closely.

We assume that if key marketing metrics match projections, so will our revenue and larger strategic goals. Monthly review meetings with all marketing and sales personnel will help us figure out which parts of the marketing strategy are working best, and how to correct any hitches in the process.

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Online Insurance

Personal Insurance Agent Marketing Plan

Plynthe Insurance

Marketing Vision

Plynthe Insurance is a new business selling personal insurance to residents of Peristyle Gardens. However, it intends to execute its marketing in a systematic way to be sure that clients get a consistent, high quality experience and that they understand the expertise and knowledge within the business.

This marketing plan details how the business will focus and launch its marketing operations, track key numbers, generate and convert leads, and serve customers so that they renew AND refer additional customers.
Goals

Personal Goals for owner Kolem Plynthe:

* Spend one hour on marketing work (8 am - 9 am) daily, as a minimum
* Learn how to use blogs, create newsletters, plan seminars so that they are simple to recreate going forward

Business Goals:

* Create a system of sales which is scalable (so associates can be brought on)
* Achieve sales of over $300,000 in year 3.
* Reduce cost of sales over time

Strategic Goals:

* Create reputation for Plynthe Insurance as independent, individualized and high service
* Achieve 90% renewal rate from year to year

Tactical Goals:

* Total leads generated increase steadily
* Generate leads from referrals

Purpose

Plynthe Insurance exists to let residents of Peristyle Gardens finally feel the comfort and assurance of knowing that their family and property are secured by the proper type of insurance and that they can trust in the agent representing them.
Picture

The new customers are turning 30, expecting a first child, and moving to Peristyle Gardens. They think of insurance at first as a necessary evil, but are somewhat fearful of the process of comparing policies, looking for the best price, and making sure they are comparing apples to apples with their coverage.

When they come to Plynthe Insurance they immediately learn the basics of insurance in a personalized way, by hearing options for their specific situation. The clients are walked through a painless process of signing on and feel they can trust Plynthe Insurance because of its independence and the time agents are willing to spend to truly understand their needs. They are delighted when Plynthe Insurance sends a gift certificate upon the birth of their child and when they close on their home and move in. They come to think of their insurance agent as a partner in their safety and security and gladly share this information with their new friends and colleagues in Peristyle Gardens.
Gap Dashboard

The Gap Dashboard provides key metrics at a quick glance for Kolem Plynthe's management purposes. Each goal is translated into trackable numbers which are updated each week from the accounting or CRM systems. When significant gaps exist between the plan and actual results, these will be discussed at the weekly marketing meeting and a plan to rectify made.

Renewal rate will not be applicable in the first year as annual renewals will not begin until the second year of operation.
Gap Dashboard
Year 1 Year 2 Year 3
Personal
Hours spent on marketing 280 240 240
Hours required for educational materials (blog, newsletter, seminar, booklet) 170 120 120

Business
Sales $151,300 $214,825 $305,725
Cost of Sales $24,208 $32,224 $45,859

Tactical
Leads from marketing 3,232 1,589 2,270
Leads from referrals 463 695 1,042

Strategic
PR Mentions 17 20 25
Renewal Rate 0% 85% 90%

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Business Operations Consultant

Business Operations Consultant Marketing Plan

Marketing Vision

Our expertise has become well known in a very quiet manner. People are very aware of what we do and our referral partners continue to create our opportunities. We intend to become more active in other areas through trade association speaking and Internet content marketing.

This should lead us into doing more assessments in the early stages of a business crisis. Accountants seldom share these clients with us but, through educational marketing material, we feel that our growth will be very much determined by the relationships we build in this area.


1.1 Gap Dashboard

Our metrics consist of building relationships. Our ultimate goal is to do assessments earlier in the process of a downturn. Our referral partners and end-customers must be educated about the early signs of trouble and what an operation assessment can do for them. Accountants must not feel that they are giving up any part of their income or customer dependency by including us in this process.
Gap Dashboard
Year 1 Year 2 Year 3
Business Goals
Whitepapers 12 12 12
Lunches with Referral Partners 58 60 60

Tactical
Speaking engagements 7 8 10
Blog postings per month 222 275 325

Strategic
Web traffic per month 8,025 10,000 15,000

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Marketing Plan

Accounting and Book keeping Services Marketing Plan

Sorcerer's Accountant
Marketing Vision
Sorcerer's Accountant will fit the needs of transitional small businesses, dealing with the growing pains of leaving an owner-operator model to hiring employees and expanding. These clients will see that Sorcerer's Accountant is competitively priced, both compared with the market and with the substitute option of hiring their own bookkeepers. Clients will see that Sorcerer's Accountant is extremely flexible and scalable in a way that in-house bookkeepers cannot be.

To move forward with this new business line, Sorcerer's Accountant will make the bookkeeping services the core of its business and a source of leads for its additional accounting services, rather than the other way around. Over time, as this transition happens, the marketing plan will be revisited to see how these clients can be better used as a source for referrals and more business.
Goals

Sorcerer's Accountant's goals include Personal, Marketing, Business, and Client Satisfaction goals.

They are:

1. Personal - To reduce the time spent on the business by Max Greenwood to a more sustainable level over a few years and to achieve professional recognition
2. Marketing - Generation of large numbers of leads and press mentions
3. Business - Expand sales significantly over the next three years
4. Client Satisfaction - To achieve a high level of very satisfied clients

Purpose

Sorcerer's Accountant seeks to provide a full suite of tax and management accounting services for small businesses in Chicago, Illinois, allowing business owners to not only save money over in-house accounting and ensure their compliance with tax laws, but to make valuable management decisions from their numbers.
Picture

When clients come to Sorcerer's Accountant, the frustration of dealing with in-house bookkeepers and low-quality providers will recede. Clients will be given the time to have all of their questions answered and valuable accounting and systems advice will be given even in the initial meetings. The client will quickly understand that Sorcerer's Accountant will scale their services to meet the client's needs and can add to those services as the client's needs change. They will understand that they are not entering into an onerous contract and that the cost of getting started is low.

The client will be delighted the first time they receive a thank you card and small gift when they've made their budgeted numbers for the quarter. At this point it will truly sink in that Sorcerer's Accountant has their bookkeeping and accounting needs covered and that they can put away any worry that this area will be a weak link in their business.
Gap Dashboard

Weekly measurements of key metrics will be averaged for each month and entered in the Gap Dashboard. Personal goals will be tracked by Max Greenwood directly to make sure he is moving towards both professional recognition and a sustainable work/life balance. Marketing goals will be tracked by the CRM system and business goals will be tracked by QuickBooks. Client satisfaction numbers will be derived from the survey provider's database.

Whether numbers are met or not, the news will be shared on a monthly basis with the entire staff, with congratulations and discussion as to what is going right as well as a look at what is going wrong and how it can be rectified. These reports will be shared in full with the bookkeeping program manager and partially with the bookkeepers.
Gap Dashboard
Year 1 Year 2 Year 3
Personal
Invitations for speaking engagements 35 72 79
Hours spent on business by Greenwood 2,876 2,700 2,500

Marketing
New leads generated 6,367 7,004 7,704
Press mentions 26 30 35

Business
Sales $218,100 $295,950 $420,350
Net Profit $10,893 $42,591 $64,416

Client Satisfaction
Surveys completed 642 770 924
"Very satisfied" responses 465 577 693
"Unsatisfied" responses 42 38 46

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Business Plan

Preferred format of SBA, lenders, and investors

Business Plan Pro uses a format that meets the most stringent requirements of banks, the U.S. Small Business Administration (SBA), angel investors, and venture capitalists.
Customize your plan

Business Plan Pro creates a plan that is unique for your business. Rearrange the outline and add as many additional text topics as you need. Delete sections that you don't need for your plan. Premier Edition users can also add financial spreadsheets. Don't be squeezed into an inflexible one-size-fits-all cookie-cutter planning product.
Custom reports and documents

We have compiled the most common reports into a single Report Writer tool so you can automatically print or export exactly the portions of your plan that you need. Reports include business plan presentation, all your charts, your Appendix, and more. Printing is automatic, and export options include standard Office and Web-oriented formats.

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Online Bakery Business

Bakery Business Plan

Maria and Bakery
Executive Summary

Introduction

Maria and Bakery (JJB) is a start-up coffee and bakery retail establishment located in southwest Washington. JJB expects to catch the interest of a regular loyal customer base with its broad variety of coffee and pastry products. The company plans to build a strong market position in the town, due to the partners' industry experience and mild competitive climate in the area.

JJB aims to offer its products at a competitive price to meet the demand of the middle-to higher-income local market area residents and tourists.

The Company

JJB is incorporated in the state of Washington. It is equally owned and managed by its two partners.

Mr. Austin Patterson has extensive experience in sales, marketing, and management, and was vice president of marketing with both Jansonne & Jansonne and Burper Foods. Mr. David Fields brings experience in the area of finance and administration, including a stint as chief financial officer with both Flaxfield Roasters and the national coffee store chain, BuzzCups.

The company intends to hire two full-time pastry bakers and six part-time baristas to handle customer service and day to day operations.

Products and Services

JJB offers a broad range of coffee and espresso products, all from high quality Columbian grown imported coffee beans. JJB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail.

The bakery provides freshly prepared bakery and pastry products at all times during business operations. Six to eight moderate batches of bakery and pastry products are prepared during the day to assure fresh baked goods are always available.

The Market

The retail coffee industry in the U.S. has recently experienced rapid growth. The cool marine climate in southwest Washington stimulates consumption of hot beverages throughout the year.

JJB wants to establish a large regular customer base, and will therefore concentrate its business and marketing on local residents, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure stability of the business. In addition, tourist traffic is expected to comprise approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market.

Financial Considerations

JJB expects to raise $110,000 of its own capital, and to borrow $100,000 guaranteed by the SBA as a ten-year loan. This provides the bulk of the current financing required.

JJB anticipates sales of about $491,000 in the first year, $567,000 in the second year, and $655,000 in the third year of the plan. JJB should break even by the fourth month of its operation as it steadily increases its sales. Profits for this time period are expected to be approximately $13,000 in year 1, $36,000 by year 2, and $46,000 by year 3. The company does not anticipate any cash flow problems.
Company Summary

JJB is a bakery and coffee shop managed by two partners. These partners represent sales/management and finance/administration areas, respectively. The partners will provide funding from their own savings, which will cover start-up expenses and provide a financial cushion for the first months of operation. A ten-year Small Business Administration (SBA) loan will cover the rest of the required financing. The company plans to build a strong market position in the town, due to the partners' industry experience and mild competitive climate in the area.
2.1 Company Ownership

JJB is incorporated in the state of Washington. It is equally owned by its two partners.
2.2 Company History

JJB is a start-up company. Financing will come from the partners' capital and a ten-year SBA loan. The following chart and table illustrate the company's projected initial start-up costs.

Products

JJB offers a broad range of coffee and espresso products, all from high quality Columbian grown imported coffee beans. JJB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail.

The bakery provides freshly prepared bakery and pastry products at all times during business operations. Six to eight moderate batches of bakery and pastry products are prepared during the day to assure fresh baked goods are always available.
Market Analysis Summary

JJB's focus is on meeting the demand of a regular local resident customer base, as well as a significant level of tourist traffic from nearby highways.
4.1 Market Segmentation

JJB focuses on the middle- and upper-income markets. These market segments consume the majority of coffee and espresso products.

Local Residents

JJB wants to establish a large regular customer base. This will establish a healthy, consistent revenue base to ensure stability of the business.

Tourists

Tourist traffic comprises approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market.
4.1.1 Market Analysis

The chart and table below outline the total market potential of the above described customer segments.
4.2 Target Market Segment Strategy

The dominant target market for JJB is a regular stream of local residents. Personal and expedient customer service at a competitive price is key to maintaining the local market share of this target market.
4.2.1 Market Needs

Because Washington has a cool climate for eight months out of the year, hot coffee products are very much in demand. During the remaining warmer four months of the year, iced coffee products are in significantly high demand, along with a slower but consistent demand for hot coffee products. Much of the day's activity occurs in the morning hours before ten a.m., with a relatively steady flow for the remainder of the day.
4.3 Service Business Analysis

The retail coffee industry in the U.S. has recently experienced rapid growth. The cool marine climate in southwest Washington stimulates consumption of hot beverages throughout the year. Coffee drinkers in the Pacific Northwest are finicky about the quality of beverages offered at the numerous coffee bars across the region. Despite low competition in the immediate area, JJB will position itself as a place where customers can enjoy a cup of delicious coffee with a fresh pastry in a relaxing environment.
4.3.1 Competition and Buying Patterns

Competition in the local area is somewhat sparse and does not provide nearly the level of product quality and customer service as JJB. Local customers are looking for a high quality product in a relaxing atmosphere. They desire a unique, classy experience.

Leading competitors purchase and roast high quality, whole-bean coffees and, along with Italian-style espresso beverages, cold-blended beverages, a variety of pastries and confections, coffee-related accessories and equipment, and a line of premium teas, sell these items primarily through company-operated retail stores. In addition to sales through company-operated retail stores, leading competitors sell coffee and tea products through other channels of distribution (specialty operations).

Larger chains vary their product mix depending upon the size of each store and its location. Larger stores carry a broad selection of whole bean coffees in various sizes and types of packaging, as well as an assortment of coffee- and espresso-making equipment and accessories such as coffee grinders, coffee makers, espresso machines, coffee filters, storage containers, travel tumblers and mugs. Smaller stores and kiosks typically sell a full line of coffee beverages, a more limited selection of whole-bean coffees, and a few accessories such as travel tumblers and logo mugs. During fiscal year 2000, industry retail sales mix by product type was approximately 73% beverages, 14% food items, eight percent whole-bean coffees, and five percent coffee-making equipment and accessories.

Technologically savvy competitors make fresh coffee and coffee-related products conveniently available via mail order and online. Additionally, mail order catalogs offering coffees, certain food items, and select coffee-making equipment and accessories, have been made available by a few larger competitors. Websites offering online stores that allow customers to browse for and purchase coffee, gifts, and other items via the Internet have become more commonplace as well.
Strategy and Implementation Summary

JJB will succeed by offering consumers high quality coffee, espresso, and bakery products with personal service at a competitive price.
5.1 Competitive Edge

JJB's competitive edge is the relatively low level of competition in the local area in this particular niche.
5.2 Sales Strategy

As the chart and table show, JJB anticipates sales of about $491,000 in the first year, $567,000 in the second year, and $655,000 in the third year of the plan.


Sales Forecast
2001 2002 2003
Unit Sales
Espresso Drinks 135,000 148,500 163,350
Pastry Items 86,000 94,600 104,060
Other 0 0 0
Total Unit Sales 221,000 243,100 267,410

Unit Prices 2001 2002 2003
Espresso Drinks $3.00 $3.15 $3.31
Pastry Items $1.00 $1.05 $1.10
Other $0.00 $0.00 $0.00

Sales
Espresso Drinks $405,000 $467,775 $540,280
Pastry Items $86,000 $99,330 $114,726
Other $0 $0 $0
Total Sales $491,000 $567,105 $655,006

Direct Unit Costs 2001 2002 2003
Espresso Drinks $0.25 $0.26 $0.28
Pastry Items $0.50 $0.53 $0.55
Other $0.00 $0.00 $0.00

Direct Cost of Sales
Espresso Drinks $33,750 $38,981 $45,023
Pastry Items $43,000 $49,665 $57,363
Other $0 $0 $0
Subtotal Direct Cost of Sales $76,750 $88,646 $102,386

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Frugal Fatigue

Frugal Fatigue, Spurs Specialty Apparel Retailer’s

Customers are spending more at chains like Gap and Urban Outfitters. But can their recovery continue with joblessness still high?

By Admin:

It’s been a great spring so far for specialty apparel retailers, which are enjoying higher sales and wider margins, but April sales could temper investor enthusiasm.

Until the stock market took a giant step backward on May 4, shares of Gap (GPS) were up 34 percent from Feb. 1, the start of the retailers’ fiscal first quarter, with Abercrombie & Fitch (ANF) up 39 percent, J. Crew Group (JCG) up 23 percent, and Urban Outfitters (URBN) up 18 percent. American Eagle Outfitters (AEO) was the laggard with a gain of nearly 6 percent.

For all the worries about a jobless recovery and unemployment remaining above 9 percent for an extended period of time, consumer spending has rebounded more strongly than expected, with retail sales rising 1.6 percent in March. Marshal Cohen, a fashion industry analyst at research firm NPD Group in Port Washington, N.Y., attributes the bounce to something he calls “frugal fatigue.”

“[Consumers] are starting to get tired of having to only shop at the lowest-priced retail outlets, particularly in apparel, which arguably had the worst performance during the recession,” he says. They are now searching out retailers that offer good value. And consumers’ concept of value has expanded beyond just price to quality and durability, as well as comfort and service, he says. They are also doing their homework, researching products and prices online before walking into stores.
Nimble Stores

Specialty retailers are in the sweet spot right now because they’re more nimble than department stores, which have less control over the flow of merchandise into their stores due to their dependence on outside manufacturers, he says.

“It’s more about having the right product at the right time and at fair value,” he says. That’s easier for specialty retailers since they own and control their merchandise from start to finish.

Although specialty retailers are still offering promotions to attract customers, they discounted less of their merchandise in the first quarter than in prior quarters, say analysts. Their confidence stems from better management of inventory, consumers’ greater willingness to spend, and the stimulating effect that new products have had on customers, says Cohen. He expects first-quarter U.S. retail sales to be down 3 percent from a year earlier and believes the decline will narrow to 1.5 percent-to-2 percent in the second quarter.

Even Abercrombie, a high-end retailer long known for its resistance to markdowns, is learning some new tricks, including the meaning of twofers, says Laura Champine, an analyst at Cowen & Co. “They’re realizing with their Hollister and kids’ stores that they haven’t been competitive enough in the past,” she says.

Champine sees retailers continuing their momentum from March, whose sales strength she attributes to more than just an earlier Easter. While the timing of Easter will hurt April retail sales, she expects all the specialty retailers except Abercrombie to have positive same-store sales in April vs. a year earlier, with the group overall estimated to be up 2 percent. For the first quarter, she expects comparable-store sales to be at least 4 percent or 5 percent higher, while earnings will likely be up at least 10 percent across the group, mainly on easy comparisons with a year earlier.
Underlying Trends

But Richard Jaffe, an analyst at Stifel Nicolaus (SF), expects April retail sales to be much weaker than in March, when early warm weather motivated consumers to buy spring fashions. He predicts apparel retailers’ same-store sales in April will be unchanged from a year earlier, vs. a 10 percent jump in March. But he advises investors to look beyond the monthly data and focus instead on the underlying trend for the quarter. The real question, he says, should be whether consumers’ willingness to spend will drop off as the government’s economic stimulus programs wind down and if the employment picture doesn’t improve quickly enough.

In a May 3 research note, Wedbush Capital Markets said that despite its expectations for more muted sales in the second half of April, it believes lean inventory levels and easy comparisons bode well for higher earnings for all of the specialty retailers, driven by gross margin gains.

Analyst Samantha Panella at Raymond James (RJF) said in a May 4 note that she isn’t sure consumers’ hesitation to spend has completely passed, but she was encouraged by what she saw on recent visits to shopping malls. Retailers’ focus is shifting this year to revenue growth and market share gains from cost-cutting and inventory management in 2009, she said.

Operating margins for many of the specialty apparel companies have been at or near record highs due to sharp cuts in selling, general, and administrative costs, cheaper product sourcing, and historically cheap transportation and warehousing costs in recent years, Deutsche Bank Securities said in an Apr. 25 report. But these expenses are rising, especially sourcing, and will probably weigh on retailers’ profits as early as the second half of this year, which investors aren’t fully anticipating, the report warned.
Eye on Urban Outfitters

Deutsche Bank said it expects Urban Outfitters to lead the sector with compounded annual sales growth of 14.8 percent from 2009 to 2012, compared with 10 percent for Abercrombie and 1.7 percent for Gap. Deutsche Bank calls Urban Outfitters “one of the premier growth stories in all of retail,” with its Internet business ramping up across all brands, improving profit margins in its foreign business, and plans to expand into Asia and introduce new product lines such as bridal wear.

In a May 3 research note, Robert W. Baird & Co. projected a 4 percent increase in Abercrombie’s same-store sales for the first quarter, a stark improvement from a 13 percent decline in the fourth quarter. But Baird remains concerned about the company’s average revenue per retail unit, which fell 14 percent in March and is expected to be down substantially again in April. The firm maintained its neutral rating on the stock but expects Abercrombie to post a net loss of 20¢ a share for the first quarter, worse than the consensus forecast of a 13¢ loss, according to Bloomberg data.

There’s usually a lull in sales between April and July, when back-to-school buying returns. This year, Cowen’s Champine expects year-over-year sales growth to slow to the mid-single digits in May and June.

While consumer confidence appears robust, it has been hindered by lack of progress on unemployment, according to Tom Porcelli, U.S. market economist at RBC Capital Markets. The University of Michigan Consumer Sentiment index was 72 in April, vs. a cycle low of 55 and a longer-term average above 90. “We’ve clawed our way back, but there’s quite a lot of room for improvement on the confidence front,” he says. It’s hard for consumer confidence to strengthen on stock market gains alone, and if there’s a major correction in equity prices, Porcelli warns, that would drive confidence down quickly.
Appealing Merchandise

For Cohen, the real issue for specialty retailers is who will be progressive enough to bring in exciting merchandise to engage consumers at a deeper level. He thinks Aeropostale (ARO) has the best chance to do that, based on its price value and style.

Whichever company takes the lead, it will need to be family-friendly, he says, since parents are doing more of the buying now that kids have less disposable income than they once did. The retailers that come closest are Old Navy, owned by Gap, and American Eagle. By family-friendly, Cohen means no blasting music or sexy posters, and no sofas nestled in dark corners of the store.

“If Mom comes in and sees that, she says, ‘I’m not letting my kid come in here,’ ” says Cohen.

Admin is a reporter for Bloomberg Businessweek’s Finance channel.

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Forex Scalping Strategy

The term ‘Forex’, is basically an abbreviation of the words, ‘foreign exchange’. The Forex is a securities market where different currencies of nations is the subject of trade. Like any other market, Forex market works on the buy and sell basis and is more like a barter exchange system, where currency for currency becomes the medium through which the exchange takes place. The Forex market works on the simple principle that there is a difference between the prices of two currencies. For example if you want to sell off 50 USD (United States Dollars) in the Forex market you will get back about 37 Euros. The rate of conversion changes every day and in many cases, it also changes almost after every hour. In fact, Forex scalping strategy is based on this short term changes on the rate of currency exchange.

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Bureau of Internal Revenue

BIR to rationalize programs

A surfeit of programs at the Bureau of Internal Revenue (BIR) will be reviewed as the Aquino administration moves to address a massive budget deficit, the new tax chief said on Friday.

"I believe it is hard to monitor 105 programs so we would probably rationalize it, merge some of the programs so that it is not redundant," BIR Commissioner Kim Jacinto-Henares said in a briefing.

She did not detail all 105 programs but said revenue generation and improvements to enforcement and tax administration would remain the priority. Schemes such as the Run After Tax Evaders (RATE) and Oplan Kandado -- which involves the padlocking of erring firms -- will be continued, she added.

The controversial implementation of the value-added tax (VAT) on tolls -- which the BIR has been trying to do since 2005 -- will also push through, Ms. Jacinto-Henares said.

"The VAT on toll is not a new tax. My position is the BIR has no authority to say which taxes should be imposed or not but just to implement what is in the law. This is in the law so we have to implement," she said.

Asked when the scheme -- supposed to have been finally implemented last April but deferred for finetuning -- would be implemented, Ms. Jacinto-Henares it would depend on the outcome of protracted talks.

"I believe there is an ongoing discussion with TRB (Toll Regulatory Board) and toll companies. I will just follow on with that discussion and find out the agreement. I think the past administration talked about August 16. I don’t know whether that will push through or not. It really depends on the ongoing discussion," she said.

The issue of dunning toll operators back taxes amounting to some P6.5 billion for the years 2007 to 2009 will also have to be discussed, she said.

The BIR will be also reviewing its options with respect to a negotiations with SICPA Security Solutions SA for a cigarette stamp project to monitoring cigarette firms’ tax payments.

The Large Taxpayers Service will also be up for scrutiny, particularly with respect to updating its coverage list and also in terms of pushing taxpayers to move towards computerized accounting systems, Ms. Jacinto-Henares said.

Improved working conditions for BIR personnel will also be a priority, she said.

Ms. Henares on Thursday said the BIR, along with the Bureau of Customs, would be working to achieve a tax effort equivalent to 15% of gross domestic product within a year, from just 12.8% in 2009.

This year’s collection goal of P830.4 billion will be maintained, she also said.

The agency’s collections as of end-May totalled P344.1 billion, exceeding the P323.8-billion goal for the period.

Last year, the BIR fell short of its P798.5 billion target by P48.2 billion, collecting only P750.3 billion due to a business slowdown blamed on the global recession.

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15th president

The 15th president up close

With a candidacy that was sparked by the public sympathy over the death of his mother, the country's 15th president, Benigno Simeon "Noynoy" C. Aquino III, is out to prove that he is not merely riding on his parents' fame.

Mr. Aquino-- the 50-year-old bachelor son of the late former president and democracy icon Corazon "Cory" C. Aquino and late former senator Benigno S. Aquino, Jr. -- won the presidential race with a record 15.2 million votes or 42% of the ballots cast.

In an interview following his proclamation, he vowed to address particularly graft and corruption and a ballooning budget deficit. He also reiterated his opposition to new taxes as a way to solve the budget shortfall. "I am against aggressive new taxes like the tax on text which affects those who are belonging in the lower classes," he said.

Instead of raising taxes, he said in a campaign sortie that he would improve tax collection efficiency by at least 2% to at most 15% of gross domestic product (GDP).This, he added, would translate to about P150 billion in new revenues without adding burden to the over-taxed employee or the public in general.

He held on to this view even if it raised eyebrows from the business community which has been concerned on where the government would source funds to sustain expenditures needed to propel growth.

"We can collect more taxes at the BIR (Bureau of Internal Revenue) and higher duties at [the Bureau of] Customs if we seriously clamp down on tax evasion in curbing tax evasion and smuggling," Mr. Aquino told BusinessWorld via e-mail during the campaign.

"Of course we know the great amounts of money that our government loses on graft and corruption. Thus, fighting corruption and promoting transparent and accountable governance is our main thrust."

Indeed, the fight against corruption has topped Mr. Aquino’s agenda as president. Per his TV advertisements during the campaign, the former Tarlac congressman claimed that eradicating corruption would attract foreign investments, and consequently provide more jobs. Addressing once and for all the chronic problem would also free up funds needed for social services and education -- expense items that would benefit the masses.

The campaign against corruption, Mr. Aquino said further, would be backed by an "all-out war" against poverty via an economic plan that would "focus on maximizing the productivity and profitability of agriculture, boosting tourism opportunities and reducing the cost of doing business all over the Philippines."

Giving teeth to this campaign promise, the Aquino scion said one of his first directives would be the creation of a mechanism to achieve closure on all pending corruption issues in coordination with the Ombudsman, particularly on issues against the Arroyo administration.
Mr. Aquino is also aiming for efficient budgeting by enforcing qualitative and quantitative measures and compliance with Commission on Audit rules in determining allocations for government agencies.

Local government units would also be entitled to incentives, he added, for as long as they perform according to high standards of governance. Bulk of the budget meanwhile would be aligned to critical areas and sectors such as anti-corruption efforts, generation of employment, food security, education, agriculture and justice.

Mr. Aquino said he would also convene the Judicial Executive Legislative Advisory and Consultative Council within the first 100 days of his administration and explore budget and administrative support to improve the justice system.

Amending the Constitution, he added, is also part of his agenda to be spearheaded by creating a commission made up of academicians, representatives from civil society groups and various sectors and regions. The scheme has apparent similarities to the Constitutional Commission crafted by his late mother; the group crafted the present Charter.

Mr. Aquino also vowed to appoint qualified and competent officials, dispelling notions that his administration would be another "Kamag-Anak, Inc." (nepotism). The practice was allegedly espoused by his mother’s government. "We will have honest, competent and credible people heading these agencies and instituting transparent systems and processes of these agencies," he noted.

A recently converted supporter, former Arroyo economic adviser and Albay Governor Jose Ma. Clemente "Joey" S. Salceda, who quit the administration party Lakas-Kabalikat ng Malayang Pilipino-Christian Muslim Democrats, has claimed that an Aquino presidency could result in a higher public investment rate to 8% of gross domestic product or roughly P642 billion in incremental private investments in the first 18 months of the new administration, from the current 4%. The investments, he added, could generate 642,000 jobs.-- from a report by Gerard S. dela Peña

Views of leadership

In the weeks leading up to the May 10 polls,BusinessWorld asked Mr. Aquino and the eight other presidential candidates seven questions to get their views on the economy and the presidency. Mr. Aquino gave his answers to the questions through e-mail.

1. BW: How would you address a looming fiscal crisis which would likely be inherited by the new president, something which the Arroyo administration has not done?

Aquino:DBM (Department of Budget and Management) will lead an internal government review of the budget and present a concrete plan to bring down overhead spending. We will plug revenue leakages by having competent and trustworthy tax collectors and broadening the tax base. We’ll target raising the tax collection efficiency rate by at least two percentage points from the present 12%. Two percentage points translates to P150 billion in new revenue without raising taxes. We can collect more taxes at the BIR (Bureau of Internal Revenue) and higher duties at Customs if we seriously clamp down on tax evasion and smuggling. Fighting corruption and promoting transparent and accountable governance is our main thrust.

2. BW: What would be your strategy to attract investments and rebuild business confidence (ease of doing business)? What is your position on fiscal incentives in light of eroding revenues?

Aquino: We will encourage free and fair competition in a level playing field. One not need be a crony in order to succeed in the field of business. Rules should not change in the middle of the game, specifically in procurement processes... We will streamline the approval process, not only for setting up new businesses but also in the regular day-to-day transactions with the government. We will also directly target industries with the greatest potential for growth and where the Philippines has a competitive advantage... I believe that markets are better than government in spotting where the growth opportunities are, and, with universal low tax rates, we will encourage entrepreneurs and enterprises to invest and create jobs in any industry. We will, therefore, pursue the rationalization of fiscal incentives early in my administration.

3. BW: What would be your first agenda upon assuming office?

Aquino: My first five priorities upon assuming office are:
1) Create a commission that will study the necessity of amending the Constitution.
2) Establishing a mechanism to achieve closure of all pending corruption issues.
3) Zero-based budgeting… Quantitative and qualitative measures of agency performance as well as compliance with findings of the Commission on Audit shall determine succeeding budget allocations.
4) Qualification standards, especially on eligibility, will be strictly enforced and we will ensure that at least 50% of undersecretaries and assistant secretaries are career personnel.
5) Convening the Judicial Executive Legislative Advisory and Consultative Council, which will review the justice system and possible areas for budgetary as well as administrative support within the first 100 days of the Aquino presidency.

4. BW: What is your policy on providing basic necessities -- food, shelter, clothing -- and how would this be implemented?

Aquino: We will extend social programs to all people, including universal [insurance] coverage. We will ensure that the informal sector will gain access to credit, social programs and full protection under the law... We will implement an expanded conditional cash transfer program by increasing the coverage of the Pantawid Pamilyang Pilipino Program (4Ps)... We will enable microfinance to contribute more towards poverty reduction in the Philippines by: (a) increasing outreach to more poor people, particularly those in the rural, agricultural communities; (b) promoting the integration of microentrepreneurs into the mainstream market; (c) ensuring that MFIs are profitable as they help reduce poverty among their clients; and (d) increasing the access of the poor to formal financial services.

5. BW: Besides economic reforms, what political reforms do you want to introduce and how would this be done?

Aquino: I believe in the empowerment of LGUs (local government units) and our institutions; we will create an incentives system where resources are made available to LGUS that perform according to high standards of governance. We will strengthen the party system by pushing reforms and incentivizing party-strengthening efforts. Also, within the first 100 days of my administration, I will have a credible, non partisan, multi-sectoral commission study seriously if there is a need for Charter change.

6. BW: How do you plan to reconcile differences with political opponents?

Aquino: This is a people’s campaign, and it is bigger than my bid for the presidency. Our funding and support comes from so many people from so many walks of life. The posters if you have seen them, not a single one has been made by me or my organization but by the volunteers. When we talk to them, we do ask that this is not just a question of campaigning, that this is not just a question of guarding the ballot once the vote has been rendered. As for the campaign team, diversity is our strength. The people’s campaign was born out of a public clamor and because of this, the people than can rightfully claim ownership of this campaign.

7. BW: How do you want people to remember you by the end of your term in 2016?

Aquino: I want the Filipino people to remember the people’s campaign and our crusade to restore transparency, honesty and good governance in our government. I want them to remember how the Aquino-Roxas administration made democracy work, not just for the rich and well-connected, but for each citizen. I also hope to be the president that will be missed when I step down.

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