Reference no: EM132314023 , Length: word count : 1500
Business Plan
Executive summary
The executive summary is where the student traditionally ‘sells’ his/her business to the reader by getting straight to the point and promoting the critical information he/she needs to get across.
Business Overview
This section provides overview and basic details of the student’s business.
Business details
In this part, the studentrecords the basic company information as outlined below.
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Business name
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Trading name
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Established
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Structure
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Date registered
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NZBN
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Contact details
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Contact name
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Landline
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Mobile
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Email
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Physical address
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Postal address
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Online/social media
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Website
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LinkedIn
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Facebook
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Twitter
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YouTube
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Blog
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What we do and how we do it
Be clear on what his/her business actually does.
Current existing business(if the new business is established from another existing business)
The content might include:
• locations and outlets
• number of employees
• number of customers
• current turnover
• current balance – whether, overall, you have or owe money
• intellectual property.
Our mission and goals
These should be the goals for this year and/orfor the next three years. You can mention the goals for the next 10 years as complementary information.
Our strategies
Key steps or jobs to do in achieving our goals and mission
The strategies mentioned here must be in line with the aforementioned goal and explained, supported in the rest of this business plan.
Staff planning
All main roles and responsibilities to be briefly discussed in this part.
Potentialmanagement team
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Name
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Role title
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Key responsibilities
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Qualifications
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Experience
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Track record
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Name
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Role title
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Key responsibilities
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Qualifications
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Experience
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Track record
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Name
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Role title
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Key responsibilities
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Qualifications
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Experience
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Track record
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Mentors, consultants, advisors and other outside help (if any)
List key external stakeholderswho are working on the business or helping it succeed.
Plannedteam structure
Students are advised to use the organisation chart, showing where the roles fit together, if the team will be more than a few people.
Plannedroles (if necessary)
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Role title
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Key responsibilities
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Retention, engagement and recruitment policies and practices
Students mention the best practice solutions they will use to retain key staff and compete for skilled workers in the job market.
Market analysis
If the business is located outside New Zealand, all sources of data and information should be in English.
Market research
Show your market knowledge and customer insights. You need to find industry data and use publicly available statistics to support forecasts of their operations. The data need to be real, taken from reliable sources.
You can also explain what market research you have done (if any) to build this plan and the methods used. Outline how ongoing market research is built into daily business operations.
Market opportunity
Describe the opportunity in the marketplace that you haverecognised.
Market structure
Student to describe whereyour business fits into the marketplace or supply chain structure and any efficiencies he/she plans to implement to usurp the status quo.
Target market size and outlook
All the relevant market data andstatistics to be used here for calculation of potential demand and pricing of your products/services in the next 3 years.
Base your figures on your market research by estimating the value of the market and the share of it you could take from your competitors as your business develops.
Try finding industry data or using publicly available statistics to support your forecasts.
In this part, students need to make multiple calculation steps and assumptions to get to the number of units to be sold and average price of a product/service to be used further in this report for sales forecast and future sales growth.
Customer mindsets and behaviours
Students to show their knowledge of unique customers’ attitudes and behaviours.
Competitor analysis
This part should reflect sound competitor research that will give an accurate picture on the competitive environment.
[Enter name of competitor]
Strengths
Weaknesses
The competing strategy to be highlighted here.
[Enter name of competitor]
Strengths
Weaknesses
The competing strategy to be highlighted here.
[Enter name of competitor]
Strengths
Weaknesses
The competing strategy to be highlighted here.
SWOT – Internal and external forces
SWOT analysis to be performed here.
Internal forces – Strengths
Strengths What we’ll do
Internal forces – Weaknesses
Weaknesses What we’ll do
External forces – Opportunities
Opportunities What we’ll do
External forces – Threats
Threats What we’ll do
Assets planned and business appraisal
List all fixed assets required for the business and the corresponding investment technique used to determine the assets values to determine the net worth of the business.
Business premises
Explain the business premises needs and determine replacement/maintenance strategy.
Asset
Replacement/maintenance strategy
Computers and IT
Explain computer and IT needs and determine replacement/maintenance strategy.
Asset
Replacement/maintenance strategy
Equipment
Explain machinery, equipment and vehicle needs and determine replacement/maintenance strategy.
Asset
Replacement/maintenance strategy
Intellectual property (if any)
Students to explain IP needs and determine replacement/maintenance/protection strategy.
Asset
Replacement/maintenance/protection strategy
Business appraisal
Students to evaluate the net worth ofthe business for investment decision making using at the following investment appraisal techniques:
1. Payback period.
2. ROI.
Financial plan
Find industry data or use publicly available statistics as a market benchmark to support the business forecasts. If you have done this in any other sections of this Plan, you need to reference your figures to the corresponding section of your work.
Revenue forecast – money in
Students to list different types of revenue they will be getting and provide a forecast for the next three years. You need to explain the methodology and calculation of the revenue figures based on the targeted market forecasts.
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Type of revenue
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First year ($)
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Second year ($)
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Third year ($)
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Total
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Cost forecast - money out
Summarise all the start-up and ongoing costs for as much detail as possible.The budget for this part should reflect the total cost of the launch marketing tactics in the first year and the budget for the ongoing marketing and other strategies. The budget should be financially sustainable, justifiableand within the forecasted cash flow.
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Area of spend
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First year ($)
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Second year ($)
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Third year ($)
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Total
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Profit and loss forecast
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Profit and loss forecast
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First year ($)
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Second year ($)
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Third year ($)
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Estimated revenue
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Estimated costs
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Estimated profit/loss before tax
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Tax
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Net income
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Breakeven (CVP) analysis
Summarise all the fixed and variable costs here. You can put the details of the costs in the Appendices attached to this Plan.
Contribution margin forecast
Three profitability indicators need to be calculated and interpreted:
1. Contribution margin per unit
2. Contribution margin ($)
3. Contribution margin ratio.
Breakeven forecast
Three indicators need to be calculated and interpreted:
1. Breakeven sales volume
2. Breakeven sales value.
CVP analysis
Two measures need to be calculated and interpreted:
1. Breakeven sales volume with desired profits
2. Breakeven sales valuewith desired profits.
Balance sheet forecast
Students to detail all accounts and their corresponding values in theforecasted balance sheet using globally accepted format for the next three years.
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Balance
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First year ($)
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Second year ($)
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Third year ($)
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Total
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Cashflow forecast
They need to show:
- the consistent levels of cashflow throughout the year, and
- justify the peaks and troughs (if any) in the expected cashflows.
Business continuity planning
Students need to show at identify and assess 3 risks and the associated management tools.
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Risk
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Systems, policies or tools to mitigate risk or deal with
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{eg Computer theft}
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{eg Insurance so we can buy straight away, cloud back-ups and systems to ensure data is not lost}
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Legal and regulatory compliance
Students to show their awareness of the legal and regulatory compliance obligations and their readiness to fulfil them.
If the business in New Zealand, the following areas to be included but not limited to:
• Registered with Inland Revenue
• Registered for GST
• Registered with the Companies Office
• Registered as an employer
• Trademarked their business name and logo
• Applied for required licences and permits
• Applied for patents or trademarks
• Applied for verification with the following standards bodies and regulators specific to my industry
If the business is located outside New Zealand, students are required to provide English version of the websites that specify the related rules and regulations.
References
APA style referencing is required.