You have decided to enter a new business. it is associated with your hobby – motorcycles, so it is a passion for you to be in a related business. of course operating capital is difficult to come by and you are just getting your feet on the ground. you will be importing and selling motorcycle parts for about three far east brands, including the kawasaki w-800, yamaha xtw 250 ryoku and the honda nc 700s. obviously, you will be buying, setting up inventory, etc. and also looking at the revenue side of the equation closely. your prospective "partners," the people you will be representing, have asked you for a security plan, addressing both your corporate security and handling of cargo that you will be receiving. since cash is tight you will have to be creative again. how will you do this? what will be your plan? provide the associated whys and why not's. this could be a real situation.

Explanation:

The security plan of the Motors cycles spare parts business for selected brands:

First part of the plan should include the suppliers of the spare parts. It starts with the identification and selection of the reliable suppliers who offers genuine spare parts of the selected models Kawasaki W-800, Yamaha XTW 250 Ryoku and the Honda NC 700S for reasonable prices. For this, we should scan the external environment and decide on the place and the suppliers aboard. We may use our friends and family network in the abroad to do this. In the next step of the plan, we should establish a direct business relationship with the suppliers to get the best competitive advantage.

In order to obtain the corporate security, we should initially plan to purchase the spare parts which have greatest demand during the motor cycle usage. The spare parts like electrical parts, engine parts, body parts, tank parts, chain sprockets and bushes are normally more demanded by the people. We should order this kind of material and then we should think about ordering components which are rarely used in the motor cycles. Understand the general preferences of customers for various parts which are commonly used in order to maintain two or three varieties to target good amount of sale.

Obtain a license for the business from the necessary regulatory body. Inquire about the requirements of handling motor oil or other hazardous substances. Also see that the service providers are available nearby to our spare parts outlet to ensure adequate security for the corporate.

While handling of cargo, we should first think about right cargo which is having access to many places where the suppliers are concentrated, offering reasonable prices for cargo services, offering good quality of cargo services, providing transit insurance and proper delivery material to the retail out let. We should have a proper planning of short term assets and liabilities while planning of the inventory. Should have a proper understanding with insurance representatives for a business-liability policy which can cover unique situations normally faced by motor cycle-parts business. There should be a transparent system of safety supply of materials and should be authenticated directly by the service provider.    

Since the present business plan has the constraint of tight cash, we should preferably go with only needy parts to order and adequately plan the inflow and out flow of cash through proper budgeting policy. We must capture the opportunities of all the government incentives like incentives provided for start-ups like tax incentive, capital subsidy and cash credit offered by banks.

All the transactions are done through bank accounts and must start a decent insurance policy for the business. If possible, hire the professional services from the insurance providers to minimize the risk of insurance cover. Follow all the rules and regulations laid down by the government strictly.

If the people are not planned the business activities strictly, there is a possibility of losing business in the initial stage itself. Even if the business grows, it will not gain the customer reliability in the long run. In fact, any business is sustained and developed only with customer acceptance and their reliability.