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Packaging and Shipping Business Plan

Management Summary

John Packer received his Bachelor of Arts from Ann Arbor College. While in school John participated in the entrepreneur program that gave grants to students who were interested in starting business. John formed a group of three students and received a grant to try to market a notebook that he designed called the Black Board Notetaker, a novel notebook that was shaped similar to a black board at school to help facilitate the process of taking notes the same way that the notes are written on the black board. After school, John concentrated for two years on developing this business. While it seemed like a good idea, it never really caught on and the operation was not producing sufficient profit for this to be John's sole source of income. John decided that it would be prudent for him to go back to school to earn his MBA. John enrolled in the University of Michigan's MBA program. This degree taught John a wide range of skills that he felt would be instrumental if he was to start another new eBay users business. While John was in school, eBay was beginning to catch on. Initially, John was active in eBay as a buyer and would spend 10 minutes each day going through eBay looking for deals. After two years of buying on eBay, John began selling items in eBay. What John soon found out was that he could not sell as much as he wanted due to the time consuming activity of packaging the items. It struck John one day that there was significant value to be offered for some to have a convenient, inexpensive packaging and shipping service. With this idea in mind, John began the process of writing this business plan.

7.1 Personnel Plan

Initially, John will be the only employee. This will serve two functions, 1) it will reduce costs by not having to pay for employees, and 2) it will allow John to become intimately familiar will all aspects of his business. Soon thereafter, John will hire two part-time employees.

Personnel Plan
Year 1 Year 2 Year 3
John $30,000 $32,000 $37,000
Part time employees $16,500 $24,000 $28,000
Total People 3 3 3
Total Payroll $46,500 $56,000 $65,000