Reference no: EM133071805

BSBESB401 Research and develop business plan

Assessment Task: Case Study

Activity 1: Develop Business Plan
Activity 2:Calculate unit volumes and unit prices
Activity 3: Prepare a cash flow forecast

Activity 1 -Develop the business plan

Using your research findings and the background information, develop the business plan using the Ozhouse Business Plan template, provided in soft copy as
Handout - business plan template.

Your business plan must cover each of the following, provision for each being included in the template:

1)       Executive Summary showing-

                                    i.    where the business is located

                                   ii.    when it was established

                                 iii.    legal structure

                                 iv.    the business products and services offered

2)       Purpose and time frame of the business plan, including-

                                    i.    the 3 key strategic and business goals

                                   ii.    noting future consideration of new services

                                 iii.    reference to any financing requirements

                                 iv.    reference to budgets for new activities

3)       Mission Statement & Vision Statement

4)       Values

5)       Methods of Operation

6)       Products/ Services Summary

7)       Strategic and Business Goals & Objectives

8)       SWOT Analysis

9)       Legal & Compliance requirements, including-

                                    i.    Permits and licenses

                                   ii.    OHS/WHS and Duty of care responsibilities

                                 iii.    Environmental considerations

                                 iv.    Equal Employment Opportunities (EEO)

                                   v.    Industrial Relations

10)   Market analysis including-

                                    i.    Market size

                                   ii.    Market trends (5 year 2014-2019)

                                 iii.    Industry outlook (5 years 2019-2024)

                                 iv.    Identified market needs

11)   Marketing activities

12)   Resources, including-

                                    i.    Key personnel

                                   ii.    Required (new) staff

                                 iii.    Plant & equipment

13)   Budget & Financial Plan, including-

                                    i.    Current revenue

                                   ii.    Annualised forecast industry growth (%)

                                 iii.    Forecast annual Revenue

                                 iv.    Projected Gross Margin

                                   v.    Projected Net Profits

                                 vi.    Sources and costs of Finance/funding

Activity 2
The Directors are satisfied with their decision to use market-based pricing rather than cost- based pricing, as the cleaning industry is very competitive. However for the sake of due diligence, they have asked you to calculate what the prices would be if services were priced as a unit price for the services.

1. If the average time charged for a domestic clean is 2 hours, how many domestic cleans would be required to achieve the forecast revenues for each of the Years 1, 2 and 3? Round-up your answers where necessary to equal a whole number.

2. Taking forecast Year 1 as the base, calculate what the charge rate would be for a standard domestic clean , given the following assumptions-
Average hours per clean = 2
Gross margin % required = 30%
Gross profit % required = 70%
Pricing may be rounded-up or down to nearest whole ten (10) cents.

Activity 3

1. Using the financial information provided for the Business Plan (Handout - Ozhouse Clean Financials & Budget), together with the cash flow assumptions given below, prepare a cash flow forecast for Year 2.

Prepare your cash flow projections by completing the Excel Handout- Cash Flow template.

Cash flow Assumptions
Opening cash available balance b/fwd = $5,000
Revenue is annualised monthly and received in the same month as billed
All outgoings are annualised monthly and paid in the same month as incurred, except as follows-
Marketing expenses for the Consultants is paid in equal amount quarterly in arrears
New vehicle lease is to be paid by one upfront amount equal to 3 months' instalments (including fees) in January
New vehicle lease and fees are then paid each month following (i.e. from February
All relevant taxation and other legal requirements have been complied with in the assumptions given for each of the outgoings

2. List the two (2) most significant/critical KPI's (Key Performance Indicators) , with the respective budget target for each, that should be set to enable monthly monitoring of financial performance against your Cash Flow projections

3. In addition to the financing/funding costs for the new Vans, what other finance is needed to maintain the required liquidity as outlined by the Directors and as determined by your Cash Flow projections?

Attachment:- Research and develop business plan.rar