Reference no: EM13669672

Project: Develop a Business Plan Description:

Note to Trainers/assessors: As this and the subsequent assessment tosks are project based, this task should be handed out at the beginning of the term to set the project in motion and allow the students to gradually develop the relevant concepts, knowledge and skills in conjunction with classroom learning sessions. Some project time should also be allocated in each session to practice and complete relevant parts of the project. This project can also be given as o team project with o maximum number of two (2) members in the team.

The purpose of a business plan is to explain in writing what your business idea is, why it is needed in the marketplace, how it will succeed, and who will make it happen (Investopedia). For start-up businesses, a business plan describes a business opportunity and tells you what to expect, and what alternative measures you can take, to realise your business goals.

In this assessment task, you will develop a business plan for your own venture. If you are planning to start your own business in the near future, this will be an opportunity to apply and enhance the required skills and knowledge to develop and write a formal business plan. The process of writing the business plan will enable you determine what commitments you will need to make to the venture. You may also complete this task for a fictitious business and/or a business idea. However, even for a fictitious venture, the assumptions and context should be realistic and viable.

You will need to have your business idea approved by your trainer/assessor before commencing this task.

The key areas covered in a business plan should ideally be common to the following purposes of writing a business plan;

• Investigate and evaluate new business opportunities
• Present a case for finance
• Present a clear picture of the business and its potential

Your business plan will typically contain (but not limited to) the following components;

• Executive summary
• Business Overview/Profile
  • History
  • Management structure
  • Legal considerations
  • SWOT analysis
• Business Concept
  • Core idea
  • Goals and objectives
  • Products and/or services
  • Description
  • IP/License/Acquisition
  • USP/UVP
• Environmental Scan
  • Industry environment and trends
  • Competitor analysis
  • PEST/PESTLE Analysis
• Marketing Strategy
  • Market size
  • Market description
  • Market trends
  • Customer profiles and target markets
  • Distribution channels
  • Sales outlets
  • Storage and transport of goods
  • Pricing policy
  • Packaging
  • Sales promotions and sales strategy
  • Advertising strategy and costs
  • Public relations
• Financial Forecasts
  • Start-up costs
  • Profit and Loss forecast
  • Cash flow forecast
  • Balance sheet forecast
• Performance and Controls
  • Performance measures
  • Quality objectives and measures
  • Responsibilities
  • Performance evaluation

The business plan development and writing is an extensive process and learners should make sure that they attend all learning sessions, in class activities and exercises to develop the required knowledge and skills to complete this project.

Assessment Criteria

The following assessment criteria will be used for marking this assessment task. Ensure that you have addressed all of the criteria in your work.

• Conceived a viable business idea to be developed into a plan for a start-up business
• Plan is summarised in an executive summary that covers all parts of the plan
• Developed /conceived a business description that provides background, history and/or background of the people involved in the business
• Described new business structure in line with allowable formal structures (e.g. company, partnership, sole trader)
• Outlined relevant legal obligations and requirements (e.g. insurance, liability, disclosure)
• Conducted a SWOT analysis of the business analysing strengths, weaknesses, opportunities and weaknesses
• SWOT is relevant and realistic in relation to the chosen company or organisation
• Outlined the core business idea/concept
• The business idea/concept is realistic and logically attainable as a start-up business
• Defined business goals and objectives
• Objectives are specific, measurable, achievable, realistic, and time bound
• Described products and/or services and their characteristics
• Described any licensing, registration and/or IP requirements (e.g. patent)
• Developed a Unique Value or Sales Proposition (UVP/USP) that distinguishes business's products/services from competitors
• Analysed the external environment and conduct an appropriate analysis such as PES or PESTLE as applicable in the business situation
• Identified and analysed at least two competitors and explained own market positioning
• Selected an appropriate market for the launch
• Determined market segment and consumer profiles for the planning purpose
• Market assumptions and targets are realistic and resemble a model business approach
• Marketing objectives are in alignment with overall company goals and objectives
• Developed a marketing mix (4Ps) that reflects a strategic approach
• Strategies are realistic and cover product, market and unique selling/value proposition of the company
• Developed appropriate marketing tactics to implement the marketing plan
• Worked out start-up costs and identified fixed and variable costs
• Developed a profit and loss projection for the first year in line with expected costs, expenses and revenues
• Developed a cash flow statement identifying monthly cash position
• Developed a balance sheet forecast based on P&L and cash flow
• The financial forecasts are prepared in conventional formats and are realistic, balanced and error free
• Conducted a breakeven analysis using a conventional formula
• Developed performance measures in key result areas
• Business plan includes methods of evaluation of performance against documented indicators in key results areas
• The plan is written In a formal style using appropriate headings and subheadings to organise the information

Description:

A business plan remains a written piece of paper until it is actually implemented. Once implemented, it acts as a living or dynamic resource that helps to keep a business focus and continuously evaluate business performance against stated objectives.

This assessment task compliments Assessment Task2. In this assessment task, you will develop an implementation plan with a view to implement the business plan you developed in Assessment Task2. Business plan implementation mainly involves clarification of objectives, task assignments with deadlines, and charting business progress in reaching goals and milestones.

The implementation plan should be developed in as an ancillary document to the business plan listing each of the objectives and breaking down strategic initiatives into tasks with realistic timeframes. Your implementation plan may contain (but not limited to) the following components;

• Business goals and objectives
• Tasks and priorities
• Delegation of tasks/responsibilities
• Deadlines/Time allocation
• Required resources (including staff training or professional development)
• Internal communications
• Strategies to manage performance issues and problems
• Strategies to mitigate risks and manage contingencies
• Strategies to monitor and develop the plan on an on-going basis

This task needs inputs from Assessment Task2 and as such cannot be undertaken as a stand-alone task. It should be completed in conjunction with Assessment Task2. Learners must also ensure that they keep pace with relevant learning sessions and practice to develop the required knowledge and skill to complete this part of the project.

Assessment Criteria

The following assessment criteria will be used for marking this assessment task. Ensure that you have addressed all of the criteria in your work.

• The implementation plan is prepared as an ancillary document to the Business Plan completed in Assessment Task2
• The implementation plan is relevant to and aligns with the Business Plan completed in Assessment Task2
• The plan restates/refines the business objectives and identifies key tasks that must be accomplished to achieve the objectives
• Tasks are grouped with relevant objectives and prioritised based on their importance and complexity
• Timelines/deadlines are realistic and within the scope of the plan
• The plan identifies financial, human and physical resource requirements for the business
• The plan identifies training, coaching and or development requirements of staff necessary to implement the business plan
• Internal communication methods/processes are outlined to communicate and refer the plan to relevant stakeholders
• Devised strategies to manage performance issues and problems
• Strategies incorporate means/mechanisms to test performance measurement criteria and refine them if necessary
• Devised strategies to mitigate risks and manage contingencies
• Strategies cover risks and managing the risks of system failures and/or product failures and variances to the business plan as they occur
• Devised strategies to monitor and develop the plan on an on-going basis
• Strategies provide means/mechanisms to analyse and continuously improve performance against planned objectives
• The plan is written in a formal style using appropriate headings and subheadings to organise the information