Comprehensive Railway Business Plan

Essential Elements of an Effective Business Plan

A business plan is a widespread and written description of the business. Since, this business plan demonstrates regarding a startup bussiness for railway so one needs to be well aware of all the elements in an effective manner because operation of railways business requires higher amount of money. The ineffective planning might leads to a higher loss(Blackwell, 2002). This business plan will give a detail information regarding the railway company’s major products and services, production techniques, marketing strategies, human resources, financing requirement, etc. (Blackwell, 2002). There are mainly seven essential elements of a business plan which I being a commercial director would include within the plan.

Executive Summary

It is the synopsis of the entire plan. Although, it is the first elements of a business plan executive summary is written at the last. The one-page executive summary will possesses the mission statement of the railways busienss, the founder and date of establishment, products and service’s description provided by the business firms and also explains the ways to grow the business.

Company Description

A company description is a part which explains the products and services, analyses the one who serves and competitor’s analysis. Since, it is regarding railway business so this part should possess information of different areas within the industry which benefits or affects the business. It should also possess the ways to satisfy the needs of customers as railway industry is fully dependednt on customer’s satisfactions it also rely on the customers types along with the competitive advantage.

Market Analysis

This part possesses a deep analysis of the industry. Since, it is a railway industry so effective identification and detail knowledge regarding the target market is demonstrated in these sectors where size, demographics, needs, growth rates, purchasing trends, etc. will be explained.

Competitive Analysis

This part helps in assessing the competitive landscape in the targeted market. Railway industry must also review its competitors so as to analyse competitor’s marketing strategy and ways to overcome the barriers are also described in this section. It will evaluates the weakness and strengths of the railway’s competitor and also tries to evaluate their achievement.

Management & Operations

This part explains the operation of the railway company wherein it will includes organizational structure, ownership information, and the profile of management teams and employees number prevailing in the railway. Railway industry should incorporate effectivce management and operation in each business type as it helps in analsing the core activities of the organization and help in analyzing the organization.

Marketing & Sales

This element is also essential in railway business as it helps in focusing on handling the sales and its tactics to attract, identify and convert leads are essential for sales. This marketing part requires finding and creating customers of railway by defining marketing and sales strategies. The discussion of communication strategy and its ways of communicating ideas is essential in the marketing section of railways.

Financial Summary

It is the final part of the business plan of railway which possesses information regarding the financial health and future of the railway company. The business plan of railway needs to possess gross income and other financial predictions. Moreover, Income statements, cash flow reports, and balance sheets are also an essential element to express assets and liabilities of the railway business.

Critically Analyses the Importance of the Business Plan

A business plan is very essential strategic tools for entrepreneurs (CGMA, 2016). Railway industry possess vast business and an effective business plan not only assists in focusing on the specific steps needed for making the business idea successful but also helps in achieving both short-term and long-term objectives. A business plan is a stronger tool considered in railway business which will provides each of the details regarding the railway business and helps in making a stronger and successful decision of business (Pinson, 1999).

Business plans are not only a written document but it also assists in raising money for the railway business. The business plan is required by the potential investors and lenders prior to giving money so directors of the railway operator business should review all the details in depth. Business plans will help the directors so as to define and focus on its business ideas and also its strategies. It is the business plan which concentrates on a financial matter, management issues, technology, human resource planning and also the creation of values for the customers (O'Brien, Thomas, and Gibson, 2015). Apart from this, business plans of railway business also help in identifying the major weakness in the ideas and executed strategies of the railway designs. A business plan could assists the director’s of the railway to achieving the ideas and advice of others regarding each of the parts and designs of the busienss before starting up. Since, railway industry requires large amount of money while executing its business so prior analysis and review of design is must important. A business plan is also termed as the communication tool which can be used to protect the investment capital from the lenders or financial institutions (DeThomas, 1999). It also helps in convincing the people to execute its work, to attract potential customers and secures the credit from suppliers. In addition to that, business planning also improvises corporate executive satisfaction enabling everyone regarding the vision and strategy of the organization. Thus, it can be stated that a business plan is very essential for the railway industry as it is an opportunity to analyses the newer ideas and achieve success. It helps in providing clear statements regarding business mission and vision and also set values which assists in steering business at the time of difficulties (CGMA, 2016). A business plan acts as a blueprint which can be used to focus on energy and provides direction to the railway company. It is a clear-eyed analysis which possesses opportunities and threats and also helps in assessing the strength and weakness of the company (DeThomas,1999).

It had been analyzed that starting up of railway business is more difficult than executing its operation after establishment. It is because of the facts that planning a business needs a covering of larger area. In such a situation, business plans work as a compass and provide the necessary direction and focus on business visions. Moreover, it also assists in anticipating the potential hurdles which could come across the railway business and its ways to overcome it (O'Brien, Thomas, and Gibson, 2015). A start-up company requires human resources and business plan is taken as a handbook for the newer employees so as to evaluate the company’s profile and their job profile. Hence, it has been critically analyzed that a business plan is a well-structured and crucial element which reviews all the issues of the business. It helps in identifying the target clients, outlines the market segments and shares the pricing strategy and analyses the competitive conditions so as to achieve success. It also assists the directors of the railway business to help in creating mutual understanding within the management team and determines the financial needs of the business (Parmenter, 2015). Moreover, it is analyzed that the business plan helps in recruiting and informing the employees, lenders named partners regarding the company’s objectives. Since, the main objective of new open railway access operator is to provide better services to its customers. Thus, the main vision of this business plan is to provide effective services to its customers taking in consideration all the measures which can provide effective services. It can be better evaluated with the help of key performance indicator.

Key Performance Indicator (KPI)

Key Performance Indicator (KPI) is a metric or a measurable value which demonstrates the effectiveness of a company in achieving the key business objectives. Organizations make the usage of the Key Performance Indicator at multiple levels so as to track the measures of the performance. It is very important for the director of an open Access operators of railway to identify if the customer’s services are living up the expectations of the customers or not. Railway not only take larger number of people with them but equally take larger responsibility of the people so recognition of key performance indicator is highly essential. The director of new railway open Access operator can identify the KPIs for the railway business through following the steps:

Clearly defining of the core objectives of the new railway operator.

Setting up strategies and task in order to achieve the core business objectives of the railway.

It is then essential for the director to set up business key performance indicators for each of the core objectives of its railway business.

The sharing of the core business objectives and corresponding business KPIs

Setting up of the SMART external goals for each of the core business objectives

Setting up of the strategies and task to attain the external goals of an organization

Setting up of the external KPI’s for individual’s external goals

Sharing of the external goals and relevant external KPIs with the team members or the members of the departments

Setting up of the SMART internal goals for each of the individual's external goals

Setting up of the strategies to attain the internal goals

Setting up the internal KPI’s for individual’s internal goals.

There is a number of different KPIs which can be used to measure the customer’s services and the success of the customer’s services strategy of the business.

KPI’s needed to Measure the Delivery of the Service

These KPIs are utilized to monitor and measure the level of services delivered by the new open railway to its customers.

Innovation and growth

Customers are the main assets of any business who are satisfied with the services provided by the company are likely to stay connected and perform business. Railway should have innovative technology in order to attract large number of customers. When a larger number of customer experience level of satisfaction then it signifies the growth of the railway open access operator.

KPI: To update coaches of train with new technology within 5 years

Safety

The customer services could be measured effectively by tracking the change in the satisfaction level of the customers over time. Safety is the key indicator which measure the level of work performed (Parmenter, 2015). If the security level has declined, then it means that the services provided are not effective. The directors need to change their services. If the safety level enhances then it means that the customer services are in the right tracks. Taking in consideration of a new open railway access operator, it is important for the director to enhance safety level in the railway project (Leslie, 2015).

KPI: To cease the railway accident within 1 years

Accessibility

When the customers are satisfied and happy with the customer’s services then the customers itself refers and recommendations regarding that company to others(Parmenter,2015). Thus, the Accessibility of all the services is a good indication of where the customer’s services rely on and are an alternative way to measure the services of the customers.

KPI: Effective coverage of service 24 hours a day daily

Efficiency

If an organization wants to provide greater customers services, then it is important for them to resolve the issues of the customers in a timely manner. Giving an effective response to the customers and achieving their answer provides an effective experience to the customers. When there is lesser efficiency then it is an indicator of the bad customer services and also alternative ways to calculate the customer’s services (Leslie, 2015). It is thus important for the director to enhance its efficiency in each of its aspects in railway business.

KPI: To uplift the effectiveness of the railway services within 6 months

Service and Reliability

Different methods are being used by different types of business so as to measure the employee’s productivity. However, it is an essential factor while calculating customer’s services. The issues of the customers could have resolved in an effective manner and time if the employees execute their jobs effectively and provide the services in the new railway projects in an effective manner.

KPI: To reduce the train delay process by 100%

Assets Utilization

Employees are the assets of any organization and When the employees are satisfied and happy with their work then they try to remain in the same company (Parmenter, 2015). The employee’s utilization is an indicator of better services and a comfortable environment. This also indicates that the company is likely to provide better services to its customers too to live their standards. It is thus essential for the director of new railway open access operator to utilize its employees in an effective manner.

KPI: To enhance the salary of employees by 5%

Financial Effectiveness

Financial effectiveness is a better indicator of performance for different business sectors(Coke,2002). Customer services are essential factors which have an impact on the bottom line. If the services are worse than it drives the customers away and also leads to failure in taking advantage of the products and services.

References

Blackwell, E., 2002. How to Prepare a Business Plan? London, Kogan Page.

Coke, Al., 2002. Seven Steps to a Successful Business Plan. New York, American Management Association.

DeThomas, A.,1999. Writing a Convincing Business Plan. Hauppauge, Barron's Educational Series.

Leslie, R.,2015. Key Performance Indicator Information.

Pinson, L., 1999. Anatomy of a Business Plan: A Step-By-Step Guide to Starting, Building the Business, and Securing Your Company's Future. Chicago: Dearborn.