Jd sports_Business Management

Creating a Winning Business (MN5W50) Assignment 2 Workbook: Business Model Canvas – Iteration and Reflection Student name: Guilherme Nuernberg Student ID: 22030166 Seminar tutor: Airline, Airport and Aviation Management London Metropolitan University 12/01/2024 Brief based on my business placement and the business solution. During my business placement at Brazil Café, I pinpointed critical challenges—lack of delivery, seating constraints, and technological gaps. The proposed solution involves strategic partnerships to open a second café, introducing a delivery service to meet customer demands, and integrating technology for streamlined operations. This comprehensive approach ensures not only the café’s growth and profitability but also aligns with evolving market trends, securing a competitive edge in the dynamic food industry landscape. Page 1 BMC –Chronology/timing of ideas in the following order of colours: black, Blue and red. Key Partners Atlantico UK – Brazilian food and beverages. Smithfield Market – Wholesale provider of meat, poultry, and various provisions such as oils and cheese. Local Grocery Stores – Suppliers of basic and fresh ingredients like eggs, salad, etc. Mor Beans – Provider of coffee beans, coffee machines, bean grinders, and ancillary equipment. Epos Now – Provider of point-ofsale (POS) systems and solutions for payment processing. Get Meez – Provider of a platform for accurate food costing, team training, and recipe organization. Uber Eats – Facilitator of food delivery services. Key resources: Food and drinks Technology Key activities: Supply of ingredients Technical support Delivery platform, logistics Cost Related Key Activities – Continuously developing the menu. – Day-to-day activities of preparing and cooking. – Daily operations, including staff coordination, scheduling, inventory management, and maintaining a clean and welcoming atmosphere for customers. – Regularly updating and engaging with the audience on social media. – Fostering a positive and friendly atmosphere through face-to-face interactions with customers, addressing their needs, and creating a welcoming environment. – Quality control measures. – Implementing effective cost management strategies – Implementing the infrastructure for food delivery service. – Actively planning and executing activities related to the potential expansion of the café, including market research, site selection, and coordinating with partners. Value Propositions – Brazil Café aims to provide homemade and fresh Brazilian food with quality ingredients and authentic flavours, delivering intimate and friendly customer service. – Open a second café to accommodate more customers, enhancing accessibility and maintaining the intimate and friendly ambiance. – Include technical support for pricing strategy to ensure prices reflect both the quality of the offerings and customer expectations, enhancing overall value perception. – Introduction of a delivery service to reach a wider customer base, allowing for increased revenue. Customer Satisfaction: – Homemade and fresh Brazilian food using quality ingredients. – Affordable prices – Loyalty program Revenue Related Marketing & Sales Customer Segments Communication – Brazilians living in London – Instagram (particularly in the Battersea area). – Facebook – Local workers seeking affordable – Emphasis in the authentic and delicious meals. Brazilian culinary experience and – Local Community. the use of high-quality ingredients. – Budget-Conscious Consumers. – Loyalty program. – Loyalty-Driven Customers. – Sharing positive customer testimonials and reviews on social Stakeholders Benefiting from the media (see Appendix C). Solution: – Customers: Access to the food through delivery. – Management: Increased business revenue through a second café. – Local Community: Economic contribution through the opening of a second café, potential employment opportunities, and community engagement. – Suppliers and Partners: Increased demand for products and services. – Employees: Potential employment opportunities. (see Appendix B for a SOSTAC analysis) Page 2 BMC –Chronology/timing of ideas in the following order of colours: black, Blue and red. Key Resources Product & Service Delivery Channels – Coffee machine and kitchen equipment – Cafe Facilities and space – Menu and recipes development – Brand identity and marketing – Skilled chefs and staff – Management and operational staff – Working capital – Packaging materials – Capital for expansion – Investments in technology and partnerships – Local, Face-to-Face Interactions – Social Media: Instagram and Facebook. – Food Delivery Services: Uber Eats. – Customers can receive after-sales support through in-person interactions at the café. Any concerns, feedback, or issues can be addressed by the on-site staff, providing immediate assistance. Cost Structure Revenue Related – Rent for cafe space: Substantial fixed cost. – Kitchen equipment and maintenance. – Cost of ingredients: Relative higher variable cost, but it aligns with the value proposition. – Labour costs for employees: Significant portion of the expenses. – Taxes and regulatory expenses. – Subscription costs for technology support services. Customers are willing to pay: – for the unique and authentic flavours of homemade Brazilian food. – for the delivered food to their doorstep. Customers are paying £8 for the dish of the day; survey suggests that the price can be increased. Payments through cash and card transactions at the counter. Emphasis on fresh ingredients and skilled chefs suggests a commitment to delivering value beyond cost savings. Economies of scale: expansion. Contribution to overall revenue: Food (60%) and Drink (40%) Sales: – This is the primary revenue stream, contributing most of the overall revenue. Future Revenue from Food Delivery Services: – It has the potential to become a substantial contributor as the delivery service expands and gains popularity. Revenue Generated by the Loyalty Program: – The loyalty program contributes to customer retention Variable pricing may include a delivery fee, and potential promotions for first-time users or bulk orders. Subscription models for frequent customers could be explored for additional revenue. Assignment size 1650 words Page 3 Reflection questions A History behind the idea for resolving the identified business problem: The idea for resolving the issues was involving both internal insights from the owner and external perspectives gathered through customer surveys. A pivot occurred when the owner rejected the possibility of closing to open in a bigger space, but instead, maintain the business and open a second café. Reflection: Reflection is a deliberate process involving the contemplation, analysis, and examination of one’s own experiences, actions, or knowledge to gain insights, learn from the past, and inform future decisions (Blundel et al., 2021). An action learning set is a collaborative and structured group process where individuals come together to share experiences, solve problems, and learn from each other (Blanc et al., 2014). It involves presenting real-world challenges, reflecting on them as a group, and collectively generating insights and solutions. Action learning sets often follow a systematic approach to problem-solving, emphasizing the power of collective intelligence and shared learning. Reasons why action learning is more effective: The core belief in the success is the acknowledgment that the café is already well-received by customers. The identified business problem was not a lack of popularity but rather an opportunity for better organization to enhance profitability. Factors of position me as the ideal person to develop this idea: – As a Brazilian, I bring an intrinsic understanding of authentic Brazilian cuisine and cultural nuances. – With six years of experience in the hospitality sector, I possess the necessary operational and managerial skills to navigate the challenges and opportunities in the food industry. – My experience in graphic design and marketing equips me with the skills to develop and execute effective marketing strategies. Source: Action Learning Centre Assumptions: The initial assumption was that the primary challenge was the lack of space in the existing café, leading to the consideration of closing it and opening a larger space. Also, introducing a delivery service would provide an additional revenue stream, contributing to increased profits. Testing: The owner’s perspective and plans to open a second café indicate that space constraints were acknowledged but closing the existing café not being in consideration. Customer surveys provide direct feedback on the interest in a delivery service. More than 90% of customers have interest in a delivery option, being 68% considering ordering weekly, and 16% daily. Page 4 Reflection questions B Pitch: Assumption Testing: Preparing for the Pitch: The testing was made by watching the café in busiest hours, owner interviews (see Appendix D) and customers surveys (see Appendix E). Updates on BMC: – Emphasized collaboration with suppliers for fresh ingredients, space optimization solutions, and support in implementing the delivery service. – Added activities related to optimizing existing space, planning, and executing the opening of the second café, and managing the new delivery service. – Expanded channels to include online platforms for the delivery service. – Added revenue from the delivery service as a new stream and adjusted pricing strategies based on the perceived value of the service. The updates on the BMC reflect a strategic response to market insights, a commitment to customer satisfaction, and a proactive approach to capitalize on emerging opportunities. Comment on your Action Learning Set: Advice received: – Listen actively to understand different perspectives. – Be more organic when doing the video, not like a robot. – Prioritize tasks based on their impact on the overall project goals. Advice Given: – Provide clear and concise explanations to ensure understanding. – Use Canvas (website) to create and edit the video. – Use visuals to increase information given without add time of speech. Learnings from the Experience: – Learned the significance of concise communication. – Adaptability The process of testing assumptions, refining BMC, and adapting strategies based on realworld insights has been enlightening. The iterative nature of the project, from collecting data to creating a 2-minute video pitch, has honed my decision-making skills and strategic thinking. Through this experience, I’ve learned the art of effective communication, not just in conveying ideas but in actively listening to the needs of the business and its stakeholders. This comprehensive approach has not only expanded my understanding of the consultancy process but has also underscored the importance of flexibility and adaptability in responding to dynamic business challenges. The creation of the video pitch was a culmination of these learnings, requiring a synthesis of data, communication skills, and a strategic mindset. Overall, this project has been a valuable learning experience, equipping me with practical skills applicable to real-world consulting scenarios. Page 5 Iterative Journey: Competitor Insight: At first, there was no option for delivery and a small seating capacity. Closing the current café and moving to a bigger location nearby is the suggested answer. The owner’s interview altered the narrative by proposing collaboration for a second café rather than closure. Lack of delivery remained valid, further validated by a customer survey indicating over 95% interest in a delivery option, with 88% considering online orders while still frequenting the café. The absence of technical support for pricing plans and day-to-day operations affects productivity and profitability. Dish of the Day, the top seller, is cheap; a small increase is suggested and confirmed by a 74.4% customer survey. In-depth social media analysis, competitor analysis, and increased consumer surveys are examples of recent research aimed at improving business model alignment with market dynamics and client preferences. Since the researcher frequents Brazilian cafés, there are no modifications to the target client base. Direct competitors are businesses that offer similar products or services to the same target audience (Dovetail, 2023). Direct competitors for Brazil Café in Battersea include “Bistro Brazil” (limited hours, low satisfaction) and other London-based Brazilian restaurants with delivery options like Avenida Brasil, Marinatto, Preto, Rodízio Brazil, and Brazilian Centre Stockwell. Feedback from the Brief provider: Positive feedback highlighted careful data collecting through surveys and observations, emphasising empirical support. The usefulness of suggested solutions was demonstrated by the validation of assumptions and insights into client preferences, such as a strong interest in delivery and a readiness to pay more for the main seller. Efficiency was notable since the simplified approaches matched the objective of raising profitability. It was decided that resolving technology support needs and looking into partnerships for a second café would be effective and feasible. Most importantly, the owner expressed gratitude for the assistance he received during the consultation. Indirect competitors are businesses that offer different products or services but target the same customer needs or serve as alternatives (Dovetail, 2023). Indirect competitors encompass all Battersea cafés and restaurants that could attract potential customers. Analogues are businesses that operate in a similar way but cater to different customers or offer different products or services, like food delivery platforms, catering services, and gourmet food suppliers, sharing similarities in the food industry. – Analysing competitors’ customer reviews (see Appendix F) and feedback provided insights into what works well and areas for improvement in service and ambiance. – Differentiation: Emphasizing the authenticity of Brazilian cuisine, using fresh ingredients and friendly customer service, with good price. Cost & Risks: Risks: – Delays or complications in integrating with Uber Eats may impact the timely launch of the delivery service. Mitigation: Engage in proactive communication with Uber Eats, establish clear timelines, and allocate resources for a seamless integration process. – Location selection, negotiations, and the overall setup of the second café may face unforeseen challenges, potentially delaying the opening. Mitigation: Conduct thorough market research for the second location, create contingency plans for potential setbacks, and involve experienced professionals in negotiations. – Integrating new technology from partners may face technical glitches or resistance from staff. Mitigation: Prioritize thorough training for staff, conduct pilot tests before full implementation, and maintain ongoing support from technology partners. Costs: – Uber Eats: £350 for activation, plus 15% marketplace fee on each order. – Mezz: $18 monthly, including technical support. – Epos Now: $39 monthly, including hardware, software, and technical support. – Second café: Relative high value, but will depends on partnerships, location, etc. Potential Sources: 1. Traditional Loans: Approach banks or financial institutions for a business loan, providing a structured repayment plan. 2. Investors: Seek investors who may be interested in supporting the expansion of a successful café with a well-defined growth strategy. 3. Grants: Explore grants offered by local government bodies or business development organizations supporting small businesses. Page 6 Final personal career & action plan Continuing personal career development: reflection and action plan Reflection of abilities developed. Personal action planning: My involvement in the Brazil Café project challenged me to handle complex business aspects, which was a life-changing experience. Thinking analytically was improved by innovating with data-driven solutions. The procedure emphasised how important individuality is when making decisions. All things considered, the project developed flexibility, analytical strength, and good communication—essential abilities that will surely advance my career. Regular Practice: Will commit up a regular period each week to implement project management techniques in diverse settings. Networking: Make connections with experts in project management and strategic leadership to grow my network. Feedback Mechanism: Ask lecturers, co-workers and mentors for input on my project management and strategic leadership initiatives. Reflection: Continually evaluate how I am applying the concepts of strategic leadership and project management, identifying areas for development and useful reflections from practical experience. Communication: Strategic Leadership: Gaining strategic leadership experience is essential to my professional advancement. This calls for higher-level decision-making, a deeper comprehension of organisational strategy, and the capacity to match corporate objectives with overarching visions. Timeframe: 12 months. Month 1-3: Research and read books/articles on strategic leadership principles and case studies. Month 4-6: Seek mentorship from a strategic leader or executive within the organization. Month 7-9: Attend leadership workshops or seminars to enhance practical skills. Month 10-12: Apply strategic leadership principles in current role and seek feedback for continuous improvement. Page 7 Problem Solving: Project Management: My professional experience and studies in aviation management are enhanced by improving my project management abilities. Effective project planning, execution, and closure are necessary to ensure that projects meet organisational objectives and are completed on schedule and within budget. Timeframe: 12 months. Month 1-3: Apply the concepts of project management to my current position. Determine which little initiatives in my study would benefit from project management. Month 4-6: Participate in project management-related webinars, workshops, and internet resources. Check useful approaches that can be used in the context of aviation management. Analytical Thinking: Month 7-9: Seek guidance from experts with project management experience in the aviation sector. Take note of their observations and experiences. Month 10-12: Incorporate project management concepts into more ambitious assignments. Get input on how I am approaching project management and keep improving. Page 8 References Action Learning Centre (2023) What is action learning?, Action Learning Centre. Available at: https://www.actionlearningcentre.com/about-action-learning (Accessed: 30 November 2023). Asana, T. (2022) Conduct a competitive analysis (with examples) [2023] • asana, Asana. Available at: https://asana.com/resources/competitive-analysisexample (Accessed: 08 December 2023). Blanc, S., Rimalovski, F. and Fishburne, T. (2014) Talking to humans: Success starts with understanding your customers. Giff Constable. Bland, D. and Osterwalder, A. (2020) Testing business ideas. Frankfurt, GE: Campus. Blank, S.G. and Dorf, B. (2012) The startup owner’s Manual: The Step-by-step guide for building a great company. Pescadero, CA, US: K & S Ranch Inc. Blundel, R. et al. (2021) Exploring entrepreneurship. Los Angeles, US: SAGE. Cafe Brazil (2023) Instagram Café Brazil, instagram. Available at: https://www.instagram.com/brazilcafe3 (Accessed: 08 December 2023). Chaffey, D. (2022) SOSTAC® Marketing Plan Model Definition – what is? – digital marketing glossary, Dr Dave Chaffey : Digital Insights. Available at: https://www.davechaffey.com/digital-marketing-glossary/sostac-marketing-planmodel/#:~:text=SOSTAC®%20has%20six%20steps,with%20Fiona%20Ellis%2DChadwick). (Accessed: 08 December 2023). Dovetail , E. (2023) What is direct competition? overview, examples, and importance, What is Direct Competition? Overview, Examples, and Importance. Available at: https://dovetail.com/market-research/directcompetition/#:~:text=Direct%20competition%20refers%20to%20two,your%20customers%27%20needs%20and%20goals. (Accessed: 09 December 2023). Doyle, A. (2022) How to use the star interview response method, The Balance. Available at: https://www.thebalancemoney.com/what-is-the-star-interviewresponse-technique-2061629 (Accessed: 08 December 2023). Epos Now (2023) Cafe epos system, Epos Now. Available at: https://www.eposnow.com/uk/systems/hospitality-pos/cafe/ (Accessed: 08 December 2023). Get Meez (2023) Recipe & Food Costing Platform for Culinary Pros, meez. Available at: https://www.getmeez.com/ (Accessed: 08 December 2023). Indiegogo (2022) Lights, camera, action: How to craft a compelling pitch video, Indiegogo Education Center. Available at: https://entrepreneur.indiegogo.com/education/guide/campaign-video-creation-guide/ (Accessed: 08 December 2023). Page 9 Martins, J. (2023) Set-and achieve-smart-er goals [2023], Asana. Available at: https://asana.com/resources/smart-goals (Accessed: 08 December 2023). Osterwalder, A. and Pigneur, Y. (2010) Business model generation: A handbook for visionaries, game changers, and Challengers. Hoboken, US: Wiley. Perry, E. (2022) How to make an action plan to achieve your goals and follow it, BetterUp. Available at: https://www.betterup.com/blog/how-to-make-anaction-plan-to-achieve-goals (Accessed: 08 December 2023). Ries, E. (2020) The lean startup: How constant innovation creates radically successful businesses. London, UK: Penguin Books Ltd. Smart Survey (2023) Online survey software and questionnaire tool, SmartSurvey. Available at: https://www.smartsurvey.co.uk/ (Accessed: 08 December 2023). Uber Eats (2023) Become an uber eats merchant partner | uber eats, Uber Eats for Merchants. Available at: https://merchants.ubereats.com/gb/en/ (Accessed: 08 December 2023). Page 10 APPENDIX A: Summary of Evidence of testing the MAIN assumptions MAIN assumptions How did I test the assumption? Summary the results of testing. Closure for Expansion: The first thought was that the best way to deal with the space issue would be to close the current café and open a larger one. Conducted a thorough interview with Brazil Café’s owner. investigated the owner’s viewpoint regarding the potential for closing the current café to make room for expansion. The owner shared details about the existing location’s profitability and intends to build a second café through partnerships. The business owner emphasised the success and customers of the current café in support of her strong desire to keep it open. Rather than closing the current site, plans were already in place to build a second café through strategic partnerships. Delivery Service Profitability: The assumption that Brazil Café’s profitability would increase with the introduction of a delivery service. Conducted a survey of current clients and examined industry trends. created a customer survey that was distributed over social media and in-person at the café. gathered feedback from a wide range of clients to see whether a delivery service would be of interest. More than 95% of respondents said they would be interested in a delivery service, and 88% said they would be willing to place an online order and still visit the café. Positive feedback highlighted the ease of use and adaptability that a delivery option would offer, suggesting a strong chance of financial success. Price Increase Acceptance: The belief that, without adversely affecting customer satisfaction, customers would tolerate a minor price rise for the food of the day, which is the main seller. Conducted a focused survey among current clients. Created a question centred around the Dish of the Day, asking whether consumers are happy with the prices as they are now and whether they would be open to a little price rise. Most respondents (74.4%) thought that the Dish of the Day offered decent portions at a reasonable price. Positive responses to the study indicated that consumers would be willing to spend a little bit more for the dish’s perceived quality, indicating that they were receptive to a little price rise. Page 11 Appendix B – SOSTAC analysis Situation Analysis (S): – Internal Analysis: – Strengths: Authentic Brazilian cuisine, fresh and homemade food, loyal customer base, friendly service. – Weaknesses: Lack of delivery service, space constraints, limited technological support for pricing strategies. – External Analysis: – Opportunities: Spread of news about the quality of food between the Brazilian population, potential for increased profitability through optimized pricing. – Threats: Competition in the local market, potential economic factors affecting consumer spending, fluctuation price of supplies. Objectives (O): – Increase Profitability: Improve overall profitability by addressing the cheap pricing challenge and implementing effective pricing strategies, aiming for a 15% increase in profits within the next fiscal year. – Enhance Customer Convenience: Initiate delivery services through Uber Eats, targeting a 20% increase in delivery orders within the first three months. – Expand Customer Seating: Plan the opening of a second café with a suitable location, addressing space constraints and increasing overall seating capacity. Strategy (S): – Positioning: – Position Brazil Café as a Brazilian premium quality food, focusing on quality and accessible prices, with friendly and personal service. – Target Audience: – Emphasize the quality and authenticity of dishes to attract customers willing to have a food nostalgia. Tactics (T): – Digital Marketing: – Launch targeted online campaigns to promote the new delivery service and highlight the premium quality of dishes. – Partnership Development: – Establish partnerships with Uber Eats for delivery services and potential locations for the second café. – Technology Integration: – Partner with Mezz for technological support in pricing strategies and Epos Now for seamless payment control. Action (A): – Digital Marketing Campaign: – Develop a comprehensive social media campaign introducing the delivery service and showcasing premium dishes. Initiate promotions for online orders. – Partnership Outreach: – Explore potential locations and negotiate terms for the second café. – Technology Implementation: Control (C): – KPIs: – Track profitability metrics, including average transaction value and overall profits. – Monitor the success of the delivery service through order volume and customer feedback. – Assess the impact of the second café on overall customer satisfaction and profitability. – Regularly review technology utilization, ensuring it aligns with pricing strategies and payment control needs. – Conduct monthly reviews of KPIs and gather feedback from customers through surveys and reviews. Adjust strategies based on performance data. Page 12 Appendix C – Social media posts Brazilians’ influencers sharing the business “Genuine and homemade Brazilian food is emphasis in London”. Page 13 Appendix D – Interview with the manager & owner 1. Can you provide an overview of your business (mission and values)? – My aim is to offer homemade, quality Brazilian food, made at the moment, fresh. In addition, we offer more intimate customer service, with direct contact, getting to know and maintaining a relationship with the customer. 2. Who is your target audience or customer base, and how do you currently reach and engage with them? – – Initially we start with the Brazilian population living in London. Today we focus more on Brazilians who live in the Battersea area, who can come to the cafe regularly. Another big target are delivery drivers, from food delivery apps, who are mostly Brazilian, and who have found a cheap, delicious, and well-served option here. We current engage with the customers face-to-face and via social medias. 3. What sets Brazil Cafe apart from other Brazilian coffee shops and restaurants in London? – Firstly, the quality of the food, which is made with quality ingredients, and everything is prepared to order, we leave nothing pre-made. Secondly, direct service with customers, we know many by name, we talk about different topics, we build a certain friendship with the customer… in other restaurants there is no such relationship. 8. Can you provide an overview of your competitors in the market (Who they are in your opinion) and how Brazil Cafe differentiates itself from them? – Although there are other Brazilian restaurants and cafes in London, I don’t believe I have any competitors at the moment, as no one offers what I do in this area. Other restaurants that offer quality food are very far away and generally expensive. 9. How do you currently advertise or market Brazil Cafe, and what channels have proven to be most successful? – Social medias, like Facebook and Instagram 10. Have you considered expanding or opening additional locations for Brazil Cafe in other parts of London or even beyond? – I don’t intend to close this cafe, as the area has already proven to be very good, always busy generating profit. I’m already in the process of opening a second cafe, I’m currently discussing possible partnerships and locations. 11. Do you have a loyalty program or any customer retention strategies in place? – Yes, I have a loyalty card, for every ten dishes (dish of the day) you get 1 for free. 4. How do you currently measure and track customer satisfaction? – As I have this intimate relationship with clients, I ask questions myself every time I serve them. 12. Are there any potential partnerships or collaborations that you have explored or would like to explore? – 5. What are the main challenges or pain points you face in running the business? – At the moment the biggest challenges are the prices of ingredients which are super high, which makes it difficult to maintain an affordable price for the customer and generate profits at the same time, and also the café space, which is a small place and makes it difficult not only due to the lack of tables for customers but also in the tight space for the cooks to work. Yes, as mentioned above, I am analysing some partnership options to open a second restaurant/coffee. 13. What are the reasons behind your decision to not offer delivery services? Have you considered the potential benefits and drawbacks of adding this service? – 6. How do you source your coffee beans and other ingredients, and do you have any partnerships in place? As we are a relatively new business, I preferred to start only face-to-face, to analyse the market and whether it was viable. Delivery company fees are also high, which made me procrastinate the decision a little. I am currently in progress with the process of including the delivery option. 14. In terms of customer preferences, have you noticed any trends? – I have partnerships with suppliers that offer Brazilian products, as well as drinks. On the other hand, some ingredients I buy directly, like meat, which ends up being more affordable if I go to the meat market in the early hours of the morning. 7. What is your pricing strategy, and how do you determine your menu offerings? – I calculate the value of the meat per dish, and put 100% profit on top. – Yes, pastries are always the most popular snack. But the dish of the day is definitely the most popular, changing every day, and at an affordable price. 15. Do you have a lot of food/ingredient waste? – No wastage, as I buy everything fresh daily basis Page 14 Appendix E – Survey with customers Page 15 Page 16 Appendix F – Main competitor bad reviews Page 17

Jd sports_Business Management

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