The Two Wheeled Oracle

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Bicycle Courier Business Plan

Strategy and Implementation Summary

The Oracle's strategy for gaining market share will be based on it's competitive advantages: reliability and industry knowledge. Reliability is very important to law firms and will make The Oracle very attractive. Additionally, Alwy's industry knowledge will be helpful in convincing firms to try this company because it understands and caters to law firm's needs.

Portland has been chosen as the headquarters for this service because it is an environmentally-friendly city. The citizens are interested in environmental health, and are welcoming to new businesses with the same doctrine. The Oracle is proud to be a messenger service on bikes, it is proud to help keep the environment safe and healthy in Oregon.

5.1 Competitive Edge

The Oracle has two competitive edges: reliability and industry insight. Reliability is a characteristic that is very important to law firms. The firms require reliability of delivery. Often the delivery of legal documents is critical. The Oracle achieves reliability through a redundant back-up system that always provides an alternative method of delivery if the specific bicycle messenger encounters difficulty. By having a back-up system, the company ensures that even if the primary messenger fails, there is a back-up ready to complete the delivery.

The second competitive advantage is industry insight. It is a true advantage for Alwy to have worked as an attorney for several years. This work gave him industry insight that is not replicable without actually doing the work. The insight is valuable because Alwy knows intimately what attorneys need in regards to document delivery. While other companies will gain some insight by serving the attorney market over time, it will not compare in breadth to Alwy's.

5.2 Sales Strategy

Two Wheeled Oracle recognizes that it is difficult to break into many law firms and displace their current service provider and will offer a 20% discount for a months worth of services. While this is a bit of a hit in terms of profitability, it is only a short-term concern. The long-term gain is securing a repeat customer. 

In addition to this economic incentive, The Oracle will employ Alwy's powers of persuasion when he is speaking with prospective clients and firms. He will directly target the company's reliability and fool-proof back-up systems, as well as impress his recognition of the needs of his clients based on his own years of practicing law. He will use these two features to attract new clientele.

5.2.1 Sales Forecast

The first month will be used to set up the office and hire and train messengers. The second month will begin to see some sales activity. Sales will ramp up from month three on. There will be an incremental increase each month as more and more firms become aware of the services of the company. 

Sales Forecast
Year 1 Year 2 Year 3
Law firms $152,459 $255,458 $271,554
Assorted customers $20,841 $30,254 $35,125
Total Sales $173,300 $285,712 $306,679
Direct Cost of Sales Year 1 Year 2 Year 3
Law firms $3,049 $5,109 $5,431
Assorted customers $417 $605 $703
Subtotal Direct Cost of Sales $3,466 $5,714 $6,134

5.3 Milestones

The Oracle will have several milestones early on:

  1. Business plan completion. This will be done as a roadmap for the organization. While we do not need a business plan to raise capital, it will be an indispensable tool for the ongoing performance and improvement of the company.
  2. Set up office.
  3. Hire and train staff.
Milestone Start Date End Date Budget Manager Department
Business plan completion 1/1/2001 2/1/2001 $0 Laate Owner
Set up office 1/1/2001 2/1/2001 $0 Laate Owner
Hire and train staff 1/1/2001 2/1/2001 $0 Laate Owner
Totals $0