Planning and Analysis of a New Product Line in a Small Business

Over the last few years a great number of domestic enterprises (both big and small) have come up to the common opinion that the importance of drafting a business-plan is evident. A raised attention to the process of planning is justified by the unpredictable economic situation in our country. Drafting detailed business plan enables to make rational management decisions both in short term and long term periods. In this final paper we analyze small manufacturing enterprise that is going to reorganize the production activity. As a result, our aim is to define the economic feasibility of starting a new product line (canvas) in conditions of self-financing. To implement this goal we are expected to solve a number of tasks. They are: analysis of financial situation in the firm; studying the sphere where the company operates. In addition, the pricing methods typical for textile sphere are also considered in this work. According to the results, received from industry analysis there are only five top companies that are considered to have leading positions in market tarpaulin Moreover, one of them owns about 40 per cents of total market segment. As for the potential buyers, the canvas has a great demand among manufacturers of workwear. In the final part of our work we have presented the company’s budget, demonstrating that despite the stable financial situation, small manufacturing company at present moment is not able to enter the new textile market industry. Thus, our recommendations are to rent free industrial premises in order to have an additional source of funding.