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Welcome to the business
planning module! |
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Watch Videos |
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Listen to Audio |
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Case Study Videos |
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Learn how to build a business plan for
your success. |
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Executive Summary |
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Business Profile |
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Market Analysis |
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Product or Service
Description |
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Strategy and
Implementation |
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Operating Plan |
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Management Team |
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Financial Planning |
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Action Plan |
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What is an
Executive Summary? |
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What is an Executive Summary? |
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Watch Video |
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Listen to Audio |
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An executive
summary is the first part of your business plan that people will
read. Therefore it is very important as it creates a first
impression that will either encourage people to continue and
read the rest of the plan, or not bother looking any further. |
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The executive summary gives an outline of
what is contained in the full plan document, providing enough
information for readers to |
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understand the key points, what is unique
about the business and why the business will be successful. |
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Writing the Executive Summary |
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Listen to Audio |
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The executive summary is generally written
last after you have completed development and writing of the
full plan document. This ensures you allow the plan to evolve
with full analysis of all issues and don't pre-empt any areas
with a premature summary that locks you into something that has
not been fully evaluated. |
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While you don't
write the full executive summary until the end, it can be
helpful before you begin developing the full plan to first write
a brief outline or draft of an executive summary. This will give
you a guideline to follow when creating the business plan to
ensure that you don't leave out any information. |
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After completing the rest of the business
plan, go back to your original draft and finalise what you are
going to include in your executive summary. Keep in mind that
the objective is to make the reader believe that you have a
business proposition that will be successful. |
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When writing the
executive summary, focus on the main points that you would like
to get across to the reader. These points should highlight
your unique selling proposition or what it is that will make
your business a success in the marketplace. |
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Remember to avoid going into too much
detail in the executive summary as the rest of the business plan
is for the details. Depending on the length of your business
plan, aim to keep the executive summary to less than one page. |
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Continue to review and modify your
executive summary until you feel that its meets its
objectives. It is also important to get other people to
review the business plan and especially the executive
summary for clarity and professionalism, including
grammar and spelling. |
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Build your marketing plan |
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Executive Summary |
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Q1.Write
a summary based on the contents of your business plan. It should
briefly outline each section of the business plan and contain
some form of mission statement. This should only be completed
once you have finished the business plan. Give answer |
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Business Profile |
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Why are you going
into Business? |
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Business
Description |
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What do you want to
achieve in your Business? |
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Business Structure |
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Business
Registration |
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Licences and
Permits |
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Why are you going into Business? |
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Watch Video |
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Listen to Audio |
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Running your own
business can be very rewarding but there will be many challenges
that you will encounter along the way. Identifying
your particular reasons for going into business will help you to
develop a clear vision for what you want the business to achieve
in the future and what you personally want to get out of it. |
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Following is a list of some typical
reasons for starting a business. You can use this list as a
starting point to help you think about your situation or develop
your own reasons as appropriate. |
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Typical reasons for going into business; |
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- To gain control over your career
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- You have an idea for a business
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- You want to have control over your
own work environment
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- To have more flexible working
hours
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- You enjoy working for yourself and
leading other people
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- To generate an income and jobs for
your community
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Before deciding whether or not you should
run your own business, you should also be aware of the many
challenges and risks you may face as a new business owner. A
thorough understanding of these issues will assist you in your
decision. |
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Some of the challenges and risks are as
follows: |
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- Product awareness - If consumers
are unaware of your product or service, they won't be able
to purchase from you. In order to successfully reach your
target market, you have to implement a marketing strategy
consisting of market
segmentation, targeting,
and advertising and
promotional activities.
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- Suppliers - If your business is
dependent on having on-time delivery of supplies, such as
retail shops or restaurants, it is essential to carefully
select your suppliers to ensure their reliability. Failure
to do so may lead to an understock of supplies and
consequently decreased profits.
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- Time management - If
you've worked a 9-5 job your whole life and decide
to start your own business, you may become
overwhelmed with the amount of work and
responsibilities involved. For example, you might be
responsible for opening and closing, ensuring
tidiness of shop/office, paying the bills, checking
accounts, and monitoring stock levels. Therefore, it
is essential that you have good time management and
learn how to prioritise your activities.
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Watch Video |
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Listen to Audio |
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A business
description allows you to get your ideas, plans and visions down
on paper before you go any further. It is important to have a
thorough understanding of what your business is, and the
direction that you intend it to follow. |
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To help you develop
your business description, you can brainstorm all of your ideas
about what your business will be and the products and services
you will provide to consumers. Some questions to consider when
brainstorming include: |
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- What is the main purpose of your
business?
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- What products and services will
your business provide?
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- Who will be your
customers/suppliers?
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- What will your role be within the
business?
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- Does your business have future
growth potential?
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- How profitable could the business
become?
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- What will the business be in five
years time?
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Build your marketing plan |
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Business Profile |
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Q1.What
is your business' trading name? Give answer |
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Q2.Are
you starting a new business, buying an established business,
starting a franchise, or are you an independent contractor? Give answer |
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Q3.Describe
the ownership of the business. Give answer |
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Q4.Describe
the products/services that your business will offer. Give answer |
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Q5.Where
will your business be located? Give answer |
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Q6.Why
is this location ideal? Give answer |
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What do you want to achieve in your
Business? |
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Watch Video |
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Listen to Audio |
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It is important to
have a goal for what you want your business to achieve.
A mission statement can be used to determine this as it sets out
the broad objectives of your business. |
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Developing a sound
mission for the business will communicate its purpose to
consumers, employees and the market (including finance
providers, investors and competitors). A mission statement is
generally only five or six lines long and sets out what is
unique about your business. |
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A mission statement defines the following: |
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- What does your business sell? -
Incorporating what is special or unique about your product
or service.
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- Who are the business stakeholders?
- That is, who is impacted by the operational success of the
business (customers, investors, employees, etc).
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- What benefits are provided to
customers? - This includes meeting consumer needs and
providing solutions to demands.
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What are the broad principles that
your business will practice to ensure customer
satisfaction? - Your business standards and ethics
including quality, competitiveness, flexibility, etc. |
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Build your marketing plan |
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Business Objectives |
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Q1.What
are your objectives in terms of revenue? Give answer |
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Q2.What
are your objectives in terms of your market share? Give answer |
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Q3.What
are your objectives in terms of your product/service? Give answer |
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Business Structure |
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Watch Video |
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Listen to Audio |
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When deciding on a structure it
is important to consider the nature of your business including
factors such as: |
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- Ease of setup and set-up
costs
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The following is a brief description of
the various types of business structures available. |
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Sole trader |
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A sole trader is a
business owned and managed by one individual who is solely
responsible for the business' debts and legal obligations. Sole
traders have minimal reporting obligations and relatively low
establishment costs. |
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Partnership |
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A partnership is
where between 2 and 20 people co-own a business and carry out
the business activities together with a view to profit. The
co-owners share in the business' assets, liabilities and profits
in accordance with a partnership agreement, with the partnership
agreement establishing partner responsibilities, entitlements to
profits and share of business ownership. |
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Company |
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A company is
a separate legal entity, that is, its owners are regarded as
separate from the business. For this reason the business can
change ownership and continue to run despite the original owners
leaving the business. Further, the company owners have limited
liability for the business' debts. Companies must be registered
with the Australian
Securities and Investments Commission (ASIC).
Therefore the establishment costs can be high. |
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Co-operative |
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A co-operative is a
jointly-owned commercial enterprise with at least five members
who own and control the organisation. It produces and
distributes goods and services and is run with the aim of
meeting the needs of its members for the benefit of its owners.
A good example of a co-operative is a farmer cooperative where
there are a number of dairy farmers, for example, who join
forces and sell their product under the same brand. |
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Incorporated association |
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An incorporated
association is an
inexpensive and a simpler structure for a small, not-for-profit community-based
organisation. Such an association is set up under the Association
Incorporation Act 1984.
Incorporation, similarly to a company, ensures the association
is a separate legal entity from its members and hence members
cannot be sued individually for their personal assets as their
liability is limited to the capital they invested into the
association. |
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Trust |
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The concept of
a trust revolves around the idea of property being held by one
party (the trustee) on behalf of another (the beneficiary). A
trust can have tax advantages depending on how the trust is
structured and may have a greater level of asset protection than
other business structures. |
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Franchising |
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Franchising is when
you pay fees and royalties to the parent company of the
franchise in return for the right to sell the franchise's
products and sell under the franchiser's well-known trade name. |
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For more information on the various types
of business structures, visit: |
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Australian Tax
Office (ATO) |
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NSW Small Business |
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Business.gov.au |
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Office of Fair
Trading |
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Build your marketing plan |
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Business Profile |
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Q1.What
is the legal structure of your business? Give answer |
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Q2.Why
have you chosen this structure? Give answer |
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Business Registration |
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Watch Video |
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Listen to Audio |
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Depending on the business structure you
select there are different business registration requirements. |
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Registering a business name |
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For any structure
other than a company, a business name must always be registered
with the appropriate state or territory government office, for
example in NSW it is the Office of Fair Trading. You can use
your own name as your business name, for example "John Smith",
however, you can't build on your name, such as "John Smith's
Gardening Service". |
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If you are planning
to trade only within one state or territory or sell over the
internet then you only need to register your business within
that state or territory. However, if you are going to trade in
another state or territory then you will need to register your
business name with them also. For more information regarding the
appropriate registration office for your state or territory,
visit business.gov.au. |
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If you decide on a
company business structure you only need to register your
company once with the Australian Securities and Investment
Commission (ASIC) and you can conduct business in any state and
territory. In doing this you have the advantage of having your
company name registered nation wide. However, if you choose to
operate using another business name then you will need to
register that name with the appropriate state or territory. |
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When choosing a
business name it should be distinctive from other businesses and
simple to remember. You need to make sure that the name you
select is not already registered or too similar to another name
that is already registered. You can use the National Names
Register on the ASIC website to help you select a name that is
available. |
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Registering your domain name |
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If you decide to
set up a business website and email, your domain is what
identifies your business on the internet and hence an important
marketing tool. To purchase a .com.au or a .net.au domain name
you must possess an Australian Company Number or Australian
Business Number. For more information, visit Domain
Administration Ltd. |
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Register your trademark |
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Registering a trademark gives
you the exclusive right to use it Australia wide as part of your
brand image and legally prevent others from using it. Trademark
registration with IP
Australia lasts for
an initial 10 year period and needs to be re-registered
thereafter. If you are considering registering your trademark
internationally you must register it in each country you want it
protected in. |
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Licences and Permits |
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Watch Video |
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Listen to Audio |
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Prior to starting
your business it is important to make yourself aware of
any applicable licences and permits. This will ensure that you
are able to commence trading when the appropriate time comes.
There are regulations from all levels of government; federal,
state and local. |
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Licences and permits that your business
may be required to possess include: |
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Australian Business Number (ABN) |
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Workers Compensation |
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Superannuation Guarantee |
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GST Registration |
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Tax File Number |
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To find all the
licences and permits required at federal and state level for
your business and details for each visit the Business Licence
Information Service website. You may also need to contact your
local council to check for any business restrictions or licenses
and permits required. |
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Build your marketing plan |
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Business Profile |
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Q1.Identify
and describe any licences/permits required to run your
business. Give answer |
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Q2.Are
there any other regulatory issues that need to be addressed? Give answer |
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Watch Video |
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Listen to Audio |
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Risk is the probability of being exposed
to an unfavourable event which could result in financial or
other loss. All businesses are exposed to risk, however
insurance can be secured to help manage it. |
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There are three different types of
insurance; |
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It is important to
note that some insurance such as workers compensation is
mandatory for all businesses in Australia. You can research and
seek professional advice to determine the different types of
insurance and the appropriate level of insurance cover you need
for your business. |
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It is also
worthwhile investigating each insurance provider, comparing
policies. A good starting place is the Department of State and
Regional Development's Small Business website which has an
insurance finder where you can search for insurance cover
relevant to your industry and business type. |
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Business Summary |
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Business Overview |
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What does your business do and how long
has it been operating? What industry is it in? What sets your
business above your competitors e.g. different location, cheaper
price, better service? Give an outline of the products or
services, who will buy them, where you feel the business will be
in two to five years and how this will be achieved? |
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<Business Name> is a retail bicycle store
offering competitive prices and expert advice. Advice from
former road and mountain cross champions combined with full
services means customers maximise use of their bicycles.
Available products include mountain bicycles, road bicycles,
flat-bar bicycles, cruisers, and a massive range of accessories. |
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<Business Name> is targeting two core
markets, the budget conscious and the serious enthusiast. In two
to five years the aim is one store will grow to several, in and
around the greater metropolitan area. This will be achieved by
continuing to offer Melbourne’s best prices matched with expert
advice, in conjunction with an extensive advertising campaign. |
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Product/Service
Features |
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Summarise the main points about your
product or service. |
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<Business Name> offers both products and
services in order to fully maximise its selling potential.
Products include bicycles, accessories, clothing and parts.
Service includes repairs, custom builds and free tune-ups for
every bicycle sold. |
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Market Analysis |
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Briefly outline what market the product or
service is going to be aimed at and why? What research is there
to support your business expectations? |
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While <Business Name> hopes to cater for
most of the central business district population, it will be
targeting two different buying types, the budget conscious and
the serious enthusiast who keeps up to date with the latest
cycling trends. |
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<Business Name> has undertaken extensive
surveys with bicycle clubs and customer / street surveys. The
results showed families are looking for bargains, while serious
and professional riders voted expert advice as their number one
priority. |
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In part, the local market is driven by the
lack of parking. Bicycle transportation is more economical, as
well as time and space efficient in the CBD. The location also
caters for white collar employees who prefer to ride to work
than travel by public transport. According to our surveys these
potential customers are looking for a bicycle store close to
their work rather than near home, as they prefer to spend time
on weekends with their families. |
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Market Strategy |
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It is essential to show that there is a
sound customer base for the business. Explain how you have
carried out your customer and market research, including
information sources. This should include the unique selling
proposition you expect your customers to respond to. |
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<Business Name>’s marketing strategy seeks
to optimise its prime advantage of location, as well as offering
the unique selling proposition of advice from former road and
mountain cross champions. Our research has shown both location
and expert advice is the main motivators for our customer
base. |
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Customer research has been carried out by
surveying local cycling groups and associations. Market research
has been done through IbisWorld to show industry retail
statistics and figures and gives our business a comparison to
our competitors. |
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Key Financial
Objectives |
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Describe your objectives or goals under
the business operating sections of your business. Make sure they
can be proven and measured, and provide a target date if
possible. |
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The key financial objectives have been
developed using previous months’ data for the existing store,
tracking trends in revenues and expenses. A five-month track of
sales, accounts receivables and payables, and inventory from a
year-end benchmark were also utilised. |
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The key financial objectives are: |
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to reduce the bank loan repayment interest rate from 10% to
7.5%
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to reduce the overdraft from $250,000 to $150,000
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Detailed Plan |
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Business Structure |
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Provide a clear description of the
ownership structure and why it is/has been chosen e.g. sole
trader, partnership, company (this should include your exit
strategy). Also outline other ways you'll protect your business
e.g. trademarks, patents, registering a website address. |
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any business income will be taxed separately from personal
income and partner Herb Oppenheimer will continue to work
part-time as an accountant when the business first starts
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selling the business will be easier in the future if we
become successful
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this structure enables us to be classed as employees for
WorkCover purposes as some of the work in the store is
physically demanding and risk of injury is high
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<Business Name> has also registered its
trademark and the websites www.cbdbicycles.com and
www.cbdbicycles.com.au in order to fully protect intellectual
property. |
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The exit strategy is to continue unless
the business falls below our minimum targets for three
consistent months. At this point we will close and sell our
assets. |
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Management &
Ownership |
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List and describe the background and the
key necessary skills of the main persons involved in the
business. What will each person involved in the business do?
Make a list of what other staff or contractors will be required,
which includes the expected level of remuneration. |
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Director – <Your Name> |
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Has extensive experience in retail. With a
strong sales background, he has worked through the ranks of
store assistant and manager, to retail store owner. He brings
knowledge of the retail industry and has strong people skills. |
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Director - Herb Oppenheimer |
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Combines experience as a former Australian
road champion with strong accounting skills, having formerly run
a small accounting firm. Will be involved in day-to-day running
of the business, and act as key contact for manufacturers,
companies and staff alike. Herb will undertake financial and
partner management. |
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Staff |
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There are currently six staff. Two
full-time, one permanent part-time and three casuals. All are
trained in-house and combine excellent cycling knowledge with a
passion for the cycling industry. Level of remuneration is in
accordance with Federal awards. We have also implemented a staff
bonus scheme which operates when the store hits set targets and
budgets. |
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Key Objectives |
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Describe your objectives or goals under
the business operating sections of your business. Make sure they
can be proven and measured |
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The objectives for <Business Name> are to: |
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maintain and expand our reputation for high quality
service and sales, creating an internal training and
skills development program for staff
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maintain a financially healthy business by exceeding
break-even targets by at least 10%
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repay the start-up loan provided by family members
within the first year
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achieve monthly and yearly sales target
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aim to improve sales of bicycle specific clothing and
rainwear over the year by 10%
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begin marketing to new consumers and competitor’s
existing supporter base through mail-outs and
promotions to maintain current growth in sales and
service revenue
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Market Analysis |
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It is essential to show that there is a
sound customer base for the business. Explain how you have
carried out your customer and market research, including
information sources. This should include the unique selling
proposition you expect your customers to respond to. |
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<Business Name> has undertaken extensive
customer and street surveys and has utilised information from
IbisWorld retail statistics and figures. |
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According to IbisWorld, the leisure
industry (which includes bicycles) will experience an average
annualised increase of 3.7% over the next five years. This gives
<Business Name> a strong platform for growth. |
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Competitors have been consistently
increasing profits from $276,000 in 2003 to $390,000 in 2007.
Projected profit figures are $415,000 for 2008. The <Business
Name>’s main competitor has a 10-12% market share, while the
rest are at or below 2% market share. Given <Business Name> will
offer improved customer service and a broader range of stock in
a prime location we aim to take at least 2% of the market share
by the end of 2008. |
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The CBD location has two distinct markets
- business employees and university students. |
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University students |
 
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The <Business Name> has undertaken
extensive research through customer and street surveys
and found the following attracts this market: |
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students are drawn to athletic pursuits and close proximity
to bicycle trails in areas such as the You Yangs and
Lysterfield; therefore, day rides will be offered to attract
new customers
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there is a growing enthusiasm for retro Cruiser bicycles,
and higher tech cruiser-style bicycles with multiple gears,
good brakes, etc. among the middle-class 20+ market
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students are the main market for racks, locks, pannier/bags,
fenders, rainwear, etc
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there is also a consistent 25% turn-over of potential new
customers as new students enrol every year
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students seek convenience for sales and service
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White collar employees |
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While there is limited growth and
turnover in this market, office workers provide a stable
source of income. They are willing to commute by bicycle
to work. Through extensive research and customer surveys
the <Business Name> found: |
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employees seek a stable, comfortable bicycle and a full
range of accessories. When their bicycles need service and
maintenance, local drop off/pickup convenience is important.
They have families who ride bicycles also, and will
patronise a shop that gives personal service
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in the greater Melbourne population, this segment has a
choice of going to any bicycle shop in metropolitan
Melbourne, and are likely to choose a shop located close to
their place of business. Although they are not the main
target market segment of <Business Name>, we will market to
them casually, with a view to increasing marketing
activities as the store expands
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The Competitor |
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Briefly outline your known competitors and
how you'll position your product or service against them. How do
you compare with pricing, product, promotion and distribution?
See the SWOT below for a more detailed assessment. |
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In addition to the discount
department stores, who only stock a limited range of
bicycles, <Business Name> has the following direct
competitors: |
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1 local multi-sport store at the local main shopping mall |
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1 used bicycle store with a strong business reputation, dealing
strictly in used bicycles |
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3 local, including the oldest shop in town |
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None of these competitors is within two
kilometres of the universities, giving <Business Name> first
access to one of our chosen market segments. One of the local
shops has chosen to target the burgeoning young road racer
segment; another is focusing on sit down bicycles and folding
travel cycles. |
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The strongest competitor is the Big Bike
Shop, which has established itself as a Melbourne tradition. |
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We have carefully costed our stock to
ensure we offer the most competitive prices. <Business Name>
also stocks a wider range of product and accessories, will
promote more heavily and smartly and distribute accordingly to
match its aggressive approach. |
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<Business Name> will contend
against its main competitors in the following ways: |
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multi-sport store at the local main shopping mall offering
cheap bicycles. <Business Name> will offer six months free
service on top of bicycle purchase
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used bicycle store with a good reputation for dealing
strictly in used bicycles. <Business Name> offers trade on
used bicycles when purchasing a new bicycle.
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the oldest shop in town with a name and reputation.
<Business Name> will create a strong branding campaign to
ensure it becomes a name people recognise
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Product/Service |
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What product(s) or service(s) you are
going to offer? Discuss the branding, the packaging (where
applicable), ongoing product or service development, etc. What
are their features and their benefits, and how are they compared
to the major competitors. |
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<Business Name> offers both products and
services in order to fully maximise its selling potential. |
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Products: |
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1.
Bicycles.
<Business Name> sells new bicycles from recreational road and
mountain bicycles, retro-cruisers, and sport/touring/racing road
bicycles. It also sells used bicycles, which are taken in on
trade as a service to customers who are buying new bicycles from
us. Brands include Giant, Avanti, Apollo, Malvern Star, Diamond
Back, Salmon, Kona, KTM, Schwinn, Fort, Gitane, Omega, GSR,
Huffy, Wolf, CVC, Yuba, ZEM and Raleigh |
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2.
Accessories.
a wide variety of accessories are offered. Locks, computer
speedometers, fenders, cargo racks, comfortable seats,
headlights, helmets, water bottles, panniers/back
packs/messenger bags, child seats and trailers, bicycle storage
racks, and auto roof rack systems all fall into this category.
It is not possible to carry every accessory, so choice is based
on which will be most useful or desired by our target markets.
When special requests for a new item are received, we will order
several to test the local demand, and if adequate, will add it
to the regular stock. |
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3.
Clothing.
Clothing appeals to all cyclists, whether it is a logo
emblazoned t-shirt or a piece of waterproof rainwear. At
<Business Name>, the clothing is rotated based on the seasons.
Just before autumn is jackets and Gore-Tex while in winter we
offer helmet covers and liners, insulated jerseys and pants,
gloves, and shoe covers. When spring arrives summer tops,
jerseys, and racing shorts are displayed. |
 
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4.
Parts.
Parts generally refer to the pieces or materials
necessary to the basic functioning of the bicycle.
Usually, parts are installed during service and are an
additional charge beyond regular service fees. Some
items, such as cranksets, pedals, tyres, derailleurs or
brakes, are both integral parts and upgrade accessories.
Others, such as headsets, bottom brackets, spokes,
chains, cables, and cable housings are strictly
maintenance, though some will be sold to cyclists who
prefer to work on their bicycles themselves. |
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Service |
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<Business Name> is a full-service
specialised bicycle shop. The services include, but are not
limited to: |
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free 30-day/150-kilometre tune up with every new bicycle sold |
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quick repairs for flat tyres, broken chains, brake
cables etc |
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scheduled tune-ups, replacement of all bearing surfaces,
repacking of lubricants, and adjustments of derailleurs and
brake systems |
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installation of all accessories |
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authorised warranty repairs on the bicycles |
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custom wheel building |
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Frameset repairs are outsourced to Le
Blaze custom frame builders. |
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Product or Service
Production |
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How are the product(s) or services(s)
being produced and costed? Summarise the reasoning behind why
the product(s) or services(s) are being produced and costed the
way they are e.g. manufactured, bought in, break-down of service
charges, imported. Include your business dealings with your
supplier/s. |
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The products are being produced both
locally and internationally. As all products are manufactured
off-site, they will be costed according to manufacturing and/or
import costs, and in-line with competitors pricing. Pricing of
bicycles is very tight with a mark-up of between 30% and 40%
depending upon the brand and model. |
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Service |
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<Business Name> tries to maintain a basic
hourly shop rate of $45/hour. Standard repairs are then priced
based upon an average time for completion. Some repairs, such as
a flat tyre, are limited by customer perception of difficulty.
Examples: |
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All parts used in repairs are fixed priced
and added to the labour service charge. |
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With several other bicycle shops in the
city, there are some price constraints based on competition.
Coupons and specials can balance price ceilings by drawing in
customers. |
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SWOT Analysis |
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A SWOT (strengths, weaknesses,
opportunities and threats) analysis should give direction to the
business and its marketing strategies. |
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Describe your businesses strengths,
weaknesses etc and what each means to the direction and tactical
running of the business. |
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Strengths
are those the business can exploit |
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Weaknesses
are areas of the business that need to be acted on. |
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Opportunities
show the marketplace areas that can be built on |
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Threats
are issues that could affect the success of the business |
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Strengths |
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Central location |
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Competitively priced |
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Large knowledge base |
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Opportunities |
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Offer discounts to near-by University
staff and students |
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Aggressive advertising |
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Online marketing |
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Financial plan |
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Key Objectives and
Financial Review |
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List your key objectives which are
essential for your business to achieve. Explain the basic
financial needs of the business, starting with the initial
capital and your expected cash needs. |
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to achieve sales in the first quarter of $150,000
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to achieve sales in the second quarter of $200,000
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to achieve 30% market share
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Finance: |
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to reduce the overdraft from $250,000 to $150,000
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to reduce bank loan repayment interest rate from 10% to 7.5%
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Establishment
Costs |
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Indicate the total funds required to set
up your business and cover its operating costs until it becomes
profitable. |
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Profit and Loss |
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For a new business, profit and loss should
be done on a monthly basis and include the establishment costs
you listed above. It is important not to overestimate the sales
revenue and underestimate the costs. Give careful thought to the
headings, particularly the expenses. Expand the sales revenue
and expenses area if your business has distinct categories. |
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Double click to activate spreadsheet or
replace with your own Excel version. |
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Cash Flow |
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A cash flow statement will reflect how
much money is required to set up and start the business, and is
critical to get future finance. It will show how much cash is
available after all the bills have been paid. You need to
explain where the money will be coming from? |
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Double click to activate spreadsheet or
replace with your own Excel version. |
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Balance Sheet |
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Prepare a balance sheet for the start of
the business, six months later and then at the end of the first
year. Draw the information from the Profit & Loss Statement and
the Cash Flow Statement. A Balance Sheet brings together the
results from the Profit & Loss Statement and the Cash Flow
Statement. Fill in the figures below, expanding or reducing the
assets, liabilities and shareholders equity areas. |
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Double click to activate spreadsheet or
replace with your own Excel version. |
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Break-even
analysis |
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Prepare a break-even analysis by
calculating the level of sales or services required to pay for
all the overheads of the business, and at least come out even.
This should be calculated over a 12- month period. |
- Average revenue per unit or
charged hourly rate:
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- Average month’s fixed running
costs:
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In order to make a profit/keep afloat your
company needs to have a break-even revenue of: |
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Volume of sales or hourly rate needed to
break even: |
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Supporting
Documentation |
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Attach copies of all documents that
support the claims or assumptions in the business plan: resumes
of the owners/operators, certificates and references, licences
and permits, market research details, marketing plan, product or
service details, contracts or correspondence with suppliers and
customers, extracts from publications, maps, marketing or other
material (other statements may include financial statements,
project plans, production schedules and development plans). |
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Attachment Number |
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Attachment 1: |
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Attachment 2: |
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Attachment 3: |
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Action Plan |
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Prepare a mini 12 month Action Plan. This
should include: marketing costs, activities, actioned by who and
when. This plan will then become a checklist of the key
actionable items and the time they have to be done by, including
who is to do them. The tasks should not be too detailed or else
they become unworkable. See example below. |
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Key Objectives |
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MARKETING |
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Determine Launch Plan |
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Create a Brochure |
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FINANCE |
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Finalise Cash Flow Plan |
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Finalise Initial Finance |
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