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1 New Business Development Plan Template 2014
Business Development Plan Template
Stage 2
Business Development Track
This template is for schools that are developing an existing school business
IMPORTANT: HOW TO COMPLETE AND SUBMIT YOUR BUSINESS PLAN
This template should be completed by students with the support of teachers.
Please use the format provided as this is aligned to our marking scheme.
There are 2 Parts to the Business Plan template.
- Part 1: Business Plan. Please answer ALL questions.
- Part 2: Financial Plan. Please answer ALL questions in Sections A-G. Section H and I are
optional.
You can use extra pages. However, please try and keep your submission to 10 pages maximum.
The numbers in brackets e.g. (10) indicates the highest number of points that can be awarded
for that question.
Follow our top tips to score high points and increase your chances of winning a prize!
You can also earn bonus points by including supporting documents in the Appendix!
When you are ready to submit your completed business development plan to us, please follow
these instructions:-
- Log in to your account at: www.schoolenterprisechallenge.org/login
- Go to the ‘Progress Report’ on the right hand side.
- Click on 2) ‘Submit Your Business Plan!’
- Choose your file and upload your completed Template. Click SUBMIT!
2 New Business Development Plan Template 2014
PART ONE Section A: Your Details
School name Ahlcon International School
Country India
Business Name Candles ‘N’ Cakes
Business Activity (E.g. Beekeeping) Customised Gifting Solutions
Main product / service (E.g.Honey) Cakes, Decorative Candles and Flower bouquets and saplings
No. of students in business team 20
Net Profit in previous year in US $ (Actual) USD 321 (1USD= 66.6 INR)
Business Development Budget in US $ (Estimated) 1157.02 (1USD= 60.5 INR)
Additional Capital required in US $ (Estimated) 1057.9
Total Sales Income in US $ (Estimated) 2446.2
Net Profit in US $ (Estimated) 1261.1
Section C: Market Research and Target Market
1. What Market Research did you do? Please include how you did your market research and how many people you spoke to. (5) In order to understand the market and the consumer base, in- depth market research was conducted
by the following means:
MARKET SURVEY was done by means of Questionnaire. Target group consisted of 50
students, 25 teachers, 35 parents and 45 nearby community members. Purpose was to
identify the customer needs and preferences of the gifts, maximum amount they are willing
to spend, their expectations etc. (Refer Appendix for the Questionnaire)
Focus group was organized for a group of 15 members consisting of 5 students, 5 teachers
and 5 parents. The objective was to identify the changing trends in gifting solutions, major
competitors, people’s expectations, ways to cater to them etc.
OBSERVATION: Our enterprise had set up a stall on parents’ teachers meeting in the month
of July, offering variety of our products, Individuals with purchase proceeds were given a
feedback form to fill to analyze their inclination towards our product and get valuable
suggestions. (Refer Appendix for the Suggestion/Feedback Form)
2. What were the results of your Market research? Please include how your market has changed and how you will adapt. Also who is going to buy your new product or service and why? (10)
In the stall , new products ( fresh flowers and sapling and decorative candles) were
introduced along with the existing ones (cakes and brownies, greeting cards) . Surprisingly,
approximately 55% of the earnings were from the newly added products to the cart.
Our customers are school students, teachers, parents and local community members.
3 New Business Development Plan Template 2014
It was observed that people in the age group of 12- 35 years were more inclined towards our
products.
Customers considered our products valuable and worth a purchase both in terms of price and
their uniqueness.
Customers appreciated the innovative idea of ‘Customized’ gifting solutions whereby they
are given the flexibility to select both the kind and type of the gift.
Also, we found that ‘Personalized gifts’ is an increasing trend, especially amongst the
youngsters.
Section D: Competitors and Competitive Advantage
3. Who are your main competitors and what are their strengths and weaknesses? Please fill in the table below. You may add extra rows if you need to. (5)
Competitor Name
Strengths What are your competitor’s main
strengths?
Weaknesses What are your competitor’s main
weaknesses?
Malls Offer wide variety
Branded and International products.
Highly priced
Local market
gift shop
Well established
Centrally located in the
market.Share a good rapport with
customers.
Offer regular products that are
easily available.
No ‘Customization’
Online sites International variety
Wide consumer base
Services of home delivery and easy
returns.
Different payment mechanism to
suit needs of customers
Default on delivery
Default on payment
Loss of privacy and threat of
intellectual rights damage.
4. How are you going to be better than your competitors? E.g. Our competitors have a limited selection of vegetables, so we are going to sell a large range of vegetables. (5)
COMPETITOR’S ANALYSIS
We will ensure ‘online’ availability of our services through a website.
We have kept our prices low which makes them affordable.
Our products are ‘customized’ and ‘unique’ in the sense
Cakes are home -made and nutritious as they are made from fibrous ingredients.
Greeting cards are made from recycled paper and candles from ‘beeswax’ which is
environment friendly.
We are using organic manure in growing flowers and plant saplings.
Section E: SWOT Analysis
5. Complete the SWOT Analysis below. (5)
STRENGTHS
Low cost because of in-house production
Low prices
Novel idea of gifting plants and
saplings
Students get sensitized towards
environment
WEAKNESSES
Limited school time (though focus this year is
on making our school business ‘online’ so as
to make our services available even after
school time.
Products are not durable and thus, cannot be
stored for long.
4 New Business Development Plan Template 2014
THREATS
Increased competition
Recurrent price fluctuations
OPPORTUNITIES
Online availability of our services.
Tie up with local market sellers.
Located in residential hub
Frequently occurring occasions such as
festivals and PTMs resulting in high sales.
Section F: Operational Plan
6. What steps will you take to develop your business? Think about the one-off tasks you need to do to start growing your business. E.g. First, we are going to source new suppliers. (5)
The entire production department is divided into five project groups namely Trainers, creators, bakers,
packers and marketers. We have suggested our teacher mentors that on daily basis, Monday to Friday; from
8.00 am to 9.00 am (IST) in a class activity period, following activities should be initiated.
Training classes will be organized for janitors and differently abled students by our trainers for the
preparation of candles and greeting cards.
Creators will help the gardeners and potters in creating beautiful flowers vases and plant saplings in
them.
Bakers will find and create new and innovative recipes (by holding inter class contests ) and will
bake cakes and brownies as and when order is there.
Packers will ensure the packaging (using newspapers )and labeling of the products .
(Refer Appendix for ‘Mission Statement’)
PRODUCTION PLANNING
Training
Training
Creating
Creating
Packing
Baking
Preparation of
Product Packaging and
labeling
(Packers)
Sales Profit and Bank
Transfer
Marketing Baking
5 New Business Development Plan Template 2014
7. How do you produce or deliver your product or service? Use the table below. You can add rows if you need to. (5)
Task
How long?
How often?
Who?
Gardening activities
Baking and icing of
cakes
Ongoing
process
Daily While, gardening will be done by our
‘creators’, baking and icing will be done
by our’ bakers’.
Training program to
differently abled students
for the preparation of
decorative candles
Preparation of greeting
cards
Every Saturday, stalls
will be put up to display
various products.
Training will
be given in
initial 2
months
Weekly Training program was
volunteered by a parent who will
train our fellow school students
and then these trainers will teach
their skills to differently abled
students and janitors.
Greeting cards and decorative
candles will be prepared by ‘
Trainers’
Monthly meetings will be
conducted .
We will organize skill
based motivational
games for team building.
On regular
basis
Monthly Meetings will be initiated by combined
efforts of teacher mentors and the general
council.
8. How is your business team structured and what changes have you made to it? You may like to include your Organogram here. (5)
EARLIER
PRESENT
MANAGING DIRECTOR
Production
Manager
Marketing
Manager
Sales
Manager
Accounting
Manager
Operation
Manager
TEACHER MENTORS
MENTORS
GENERAL COUNCIL
President
(Shradha)
Vice President
(Sakshi)
Treasurer
(Brijesh)
Project Groups
(Devpriya)
Trainers
( Disha) Farmers
(Shubhi)
Bakers
(Ragini)
Creators
(Palak) Marketers
(Mahika)
Public
Relations
(Abhinav)
6 New Business Development Plan Template 2014
Earlier, our business organization structure was ‘centralized’ in nature, with respect to planning and
other management decisions.
This year decision making power has been decentralized through General Council.
The objective is to develop among students’ independent thinking and leadership abilities.
Various class activities like ‘Know your skills’ will be organized so that the right student can be
given the right job.
Section G: Marketing and Sales Plan
9. Tell us about your 4 P’s (Product, Price, Place, Promotion). (10) PRODUCT
DIVERSIFICTAION BUT SIMPLIFICATION: This year, plan is to diversify our products in the
areas of ‘decorative candles’ and ‘customized flower bouquets and saplings’. However, we have
simplified our products by taking a ready product directly from the Janitors and differently abled
students and paying them a price which includes their cost as well as profit.
UNIQUE SELLING POINT of our product:
Customization and environmental friendly gifting solutions.
Use of ‘homegrown’ and ‘fresh’ flowers.
Freshly made cakes on daily basis.
‘Creativity’ of our products makes them different from local product available in the market.
FEEDBACK: From the feedback, it was observed that our customers appreciate the fact that our
products could translate their emotions into reality through personalized gifts.
PRICE
Since, our products are homegrown; our cost of production is less. But as and when cost of raw
material increases, we will pay the janitors extra and we will increase the prices of our products.
We focus to increase our market share by keeping low prices and high turnover. Thus, we sell our
products at a price lower than our competitors. We are following “differential pricing strategy” by
charging higher price for those products which are not available with our competitors.
Customers find our products reasonable and worth the price they are paying.
Our profit margins are good enough because of high demand for our products. (Instance: our stalls on
PTM days are always a major hit).
PLACE
Weekly stalls on Saturday near the school gate for school students, parents and community residents.
We book orders two days in advance and supply them on daily basis to students during school hours
and to nearby residents after school hours with the help of janitors.
Our country is an abode of festivals. So, we utilize this opportunity to sell a range of differentiated
products on each festival by putting monthly exhibitions.
We have tied up with a local market seller to supply our products to increase our customer base.
PROMOTION
Advertisement on the school circulars is placed which goes out to each parent for PTM days.
Direct publicity is done for nearby community members through distribution of brochures
(Containing our contact details) and we put banners with the help of janitors.
At our stalls, we also offer various sales promotion schemes such as quantity gifts, combi packs, and
lucky draws on special occasions, festivals and exhibitions.
To, make our enterprise popular, we organize inter class competitions like ‘Design a label’ and ‘best
Nutri recipe’. This is done as a class activity and students are given grades for the same.
This year we have come up with the idea of issuing ‘Membership Cards’ to all those who make a
minimum purchase of INR 1000(USD 60.8). On each purchase, 10% of purchase amount is added as
points and on accumulation of 500 points, customers will get discount of 10% on their next purchase.
Various social media sites such as Facebook and Twitter are used for the promotion.
7 New Business Development Plan Template 2014
Section H: People, Profit, Planet
10. How does your business meet the People, Profit and Planet criteria? Please give an example for each criteria. Refer back to Question 7 in your Business Idea Template to help you. (6)
PEOPLE
We, at Candles ‘N’ Cakes not only create new memories for our customers but also get sensitize of our
responsibility towards local community. Through this,
We create opportunities of skill development and alternative sources of income for differently abled
and weaker sections of the society.
We provide them with real life experience in the field of business enterprise. This develops amongst
them a sense of independence and self confidence with better chance to socialize in the society.
Also, our customer feedback is excellent as they appreciate our idea of ‘personalized’ and
‘customized’ gifting solutions which convert their emotions into reality.
PLANET
Since the main aim of our business is to ‘Go Green’, the following points show how our business meets the
planet criteria:
Our focus is to use recycled paper for production and packaging of the products. Separate paper bins
are kept in each class of our school. We are using environmental friendly ‘beeswax’ to make candles.
Gifting plant saplings is a novel idea and sensitizes us towards environment. To grow flowers, land
has been provided by our school. The customer can get a bouquet as per his liking.
The rainwater harvesting unit present in our school premises is used for collecting the recycled water
We are using organic seeds and fertilizers, contributing our bit towards the green environment.
PROFIT
Profits not only help in growth and survival of the business but also keep its stakeholders satisfied.
Around 30% of the profit earned last year that is, 5400 INR (89.25 USD, 1USD= 60.5 INR) was
donated in an organization named ‘Amar Jyoti School’ for disabled children.
30% of the profits that is, 6000 INR (99.8USD) was reinvested into the business to continue its
development. Remaining was used to pay back the startup loan taken from the school.
This year we hope to increase our profits by:
Offering better and wide variety of products
Tie up with the local market seller
Use of various advertisements and promotional schemes
Online availability of our services
Making our services available even after the school time.
Section I: Financing Strategy
11. How much money do you have to re-invest in your business? Do you need to raise additional capital to develop your business? If so, how will you raise this money? (10) Refer back to Question 8 in your Business Idea Template to help you.
After donating INR 5400 from last year’s profits, we repaid the loan of INR 8,000 taken from school,
utilizing INR 2000 for organizing candle making workshops for differently abled children and the
remaining INR 6000 was reinvested. The remaining additional development capital INR 64,000 will be
raised from: ISSUE OF UNITS TO STAKEHOLDERS.
To raise 30,000 by issuing units of ownership of Rs 10 each (similar to a company's share)
to our stakeholders (maximum 50 ) like students, parents and teachers, minimum 10 units
(for voting rights) with no maximum limit.
The stakeholders will be given an option to sell their units at a profit. However, they will
have to register the new owner with us.
SPONSERSHIP FUNDS AT OUR EXHIBITIONS AND DIWALI FETE: We plan to raise 34,000
by organizing events at school grounds. We will put banners and sell stalls to local community
8 New Business Development Plan Template 2014
members. Tickets’ sale is also a source of revenue for us.
DONATIONS FROM SCHOOL HEADS: Impressed by our zeal and efforts, our principal and
management have also offered us funds in the form of donations but this is our last option, if the
other two sources do not generate the required funds .
9 New Business Development Plan Template 2014
Section J: Financial Management
12. What is your method of record-keeping and how are you going to improve your financial management processes? (5) E.g. We use a spreadsheet. We will aim to update our accounts on a weekly basis.
We have downloaded a free accounting software in which we have recorded the purchase price of our
stocks,expenses,estimated sales etc. Whenever a sale is made, our stocks are automatically adusted. This way
a computerised register is maintained by our treasurer on a daily basis. An example is being shown with an
imaginary sale.
Section K: Sustainability and Business Development
13. How will you keep your business running after this school year? E.g. We will mentor new students and pass the business onto them. (5)
GO ONLINE: We hope to make our business services online by building a website for our school
enterprise. This will enable us to sell our products all year round and not just when we organize some
sales event. Also, this will help us to widen our customer base.
MENTOR: We will mentor and train new students and pass the business onto them.
COLLABORATE: We are planning to join hands with schools with similar business enterprise. Also,
we can encourage other nearby schools to participate and be our partners in the same.
PARENTS: Parents will be encouraged to participate and extend their services.
SHOPPING OUTLET: We are planning to have a shopping outlet in the vicinity. This will enable
our customers to have an easy access to our products and also we will be able to compete with our
competitors.
14. Where do you see the business in 5 years? E.g. We will grow our product range to include other vegetables and we will expand our market by selling our products in 3 new districts.(5)
We will expand our markets by selling our products in the other areas of Delhi. To do this, we will
develop partnership relations with other schools.
We will ensure ‘online’ availability of our services. For this, we will build a website which will also
help in widening our customer base.
We will also have few shopping outlets in the malls in the vicinity. This will ensure easy access to
our products.
We will expand our range of products by diversifying further in the areas of ‘Event Management’.
After analyzing our product profitability, it was observed that our new products (Flower bouquets,
plant saplings and candles) are more profitable. So, we are going to concentrate more on marketing
of these products.
Appendix (OPTIONAL Bonus Points)
10 New Business Development Plan Template 2014
MARKET RESEARCH SURVEY (QUESTIONNAIRE)
CANDLES ‘N’ CAKES
Please tell the date and location of your visit:-
Date: _________________
Location: __________________
1. On which occasions do you buy gifts?
o Weddings
o Birthdays
o Festivals
o Others (Mention if any)
2. What type of gifts do you prefer to buy?
o Candles
o Cards
o Bouquets
o Chocolates
o Others (Mention if any) __________________
3. How much do you preferably spend on buying gifts (in INR)?
o Below INR 300
o INR 300-500
o INR 500-1000
o Above 1000
4. In next 6 months, how likely are you to buy gifts?
o Seldom
o Monthly
o Often
o Only on festivals
o Others (Mention if any) ________________
5. In which relations do you prefer to give gifts more often?
o Friends
o Relatives
o Colleagues
o Neighbors
o Others (Mention if any) ________________
6. From where do you prefer to buy gifts?
o Malls
o Local market Gift Shops
o Stalls in weekly markets
o Online Sites
o Others (Mention if any) __________________
7. What do you like the most about any gifting product that you purchase?
o Quality of the product
o Appearance
o Price
o Others (Mention if any) __________________
11 New Business Development Plan Template 2014
8. Do you require products in bulk on some occasions?
o Yes
o No
o Sometimes
o On festivals
o Others (Mention if any)___________________
9. Do you prefer products and services to be delivered at home?
o Yes
o No
o Maybe
10. Please fill the following details about yourself:-
o Name- _______________
o Age- _______________
o Email- _______________
o Gender- (M / F)
o Residential Area
Thank you for your time and concern.
…………………………………………………………………………………………………….
SUGGESTION/FEEDBACK FORM
Thank you for visiting CANDLES’N’CAKES. We strive to fulfill all the demands of our customers.
Tell us about yourself
Date: __________
Location: ___________
Name:
Date of Birth:
Gender: M / F
E-Mail ID:
How will you rate us? (Tick One )
Excellent Good Average Poor
Overall
Experience
Price of the
Product
Quality of the
Product
Speed Of Service
Presentation
Of the Product
Uniqueness of the
Product
How will you rate our products? (Tick One)
12 New Business Development Plan Template 2014
Excellent Good Average Poor
Cakes and
Brownies
Decorative
Candles
Greeting Cards
(Photo frames and
Gift Boxes)
Bouquet and
Saplings
Do you prefer our products to ‘Archies’ Gift shop?
o Yes
o No
Have you bought this product before?
o Yes
o No
How often do you buy our products?
o Seldom
o Monthly
o Often
o Only on occasions/ festivals
o Others (if any)
How did you get to know about our Enterprise?
o Friends
o Relatives
o Brochures
o Internet
o Others ( Mention If Any )
Any comments, suggestions or questions
Would you like to visit us again?
……………………………………………………………………………………………………..
MISSION STATEMENT (QUESTION 6)
“Being part of our customer’s celebrations, sensitizing them towards environmental friendly gifts and in the
process, providing new sources of income for differently abled and economically weaker sections of the
society”.
…………………………………………………………………………………………………….
13 New Business Development Plan Template 2014
My Business
My BUSINESS
Competitor A
MALLS
Competitor B
LOCAL
MARKET
GIFT SHOP
Competitor C
ONLINE SITES
Where is
the
competitor
located?
We offer our
business services and
products within the
school premises.
Wave, Noida
Great India Place, Noida
Archies, Market
of Mayur Vihar
Phasi-1
Cyber space
What
product/ser
vice do
they sell?
Cakes and
brownies
Greeting
cards and
photo frames
Decorative
candles
Fresh flower
bouquets and
saplings
Greeting cards,
photo frames,
decorative
candles and
chocolates
Greeting Cards.
Photo frames,
candles and
chocolates.
All types of gifting
solutions.
What are
their
operating
hours?
Would you
benefit from
being open
at a
different
time?
We operate
during the
school time
but we are
planning to
offer our
services after
the school
time as well.
Also, focus
is on online
availability
of our
services.
11.00 am in the morning
till 10.00 pm in the
evening
From 10.00 am
till 8.00 pm in
the evening
They work for 24
hoursx7 days X 365
days a year.
Who are
their
customers?
-Our main customers
are students,
teachers, parents and
members of local
community
-People in the age
group 12-35 years
have inclination
towards our products.
Their customers are
people of all age groups.
People who can afford
‘big fat’ gifts have
inclination towards
them.
Customers are
people living in
the nearby
residential
areas.
-People of all
possible age groups
-Also, only those
with access to
internet and computer
and with knowledge
of e-transactions are
found to have major
share.
COMPETITOR’s ANALYSIS TEMPLATE
14 New Business Development Plan Template 2014
What
methods of
marketing
do they
use?
Do your
competitors
have
adverts,
events or
run
promotions
?
Direct
publicity
through
advertisemen
ts in
circulars,
brochures
and flyers
Various
promotional
schemes
such as
discounts,
combi gifts
etc.
Use of Social
Media
Offer discounts
only on festive
or special
occasions.
Offer
discoun
ts on
special
occasio
ns.
Offer heavy
discounts on
weekends.
Offer
concessions
on bulk
purchases.
Offer low
price
products.
Do they
have a
good
reputation
locally?
Why or why
not? What
could you
learn from
their
business?
We share a good
rapport with our
customers.
Yes, they have a well
established brand name.
also, they are known for
their good quality
products and services.
Yes, they share
good rapport
with their
customers
because of their
centrally
location and
good quality
services.
-
Do they
offer any
extra
services?
Are these
things you
should
consider for
your
business?
We offer
‘personalized’ and
customized’ gifting
solutions with special
focus on ‘freshness’
of the product..
They make branded and
international variety
available.
- They offer ‘easy
return’ feature.
Low price of
products and they
offer ‘heavy
discounts’.
They make
international variety
available.
They also offer
‘Home Delivery’
Services.
What are
their
strengths?
Can you
learn from
these
without
copying
them too
closely?
-Low cost because of
in-house production
-Low price
-Feature of
‘Customized’ gifting
solutions
-Novel idea of gifting
plants and saplings
-Students get
sensitized towards
environment
-Offer wide variety
-Branded and
International products.
-Well
established
-Centrally
located in the
market. Thus,
share a good
rapport with
customers.
-International variety
-Wide consumer base
-Services of home
delivery and easy
returns.
-Different payment
mechanism to suit
needs of customers
-Low price
15 New Business Development Plan Template 2014
What are
their
weaknesses
?
Your
competitors
’
weaknesses
can become
your
strengths!
-Limited school time
(though focus this
year is on making our
school business
‘online’ so as to
make our services
available even after
school time).
-Products are not
durable and thus,
cannot be stored for
long.
-Highly priced
-Less affordable
-Offer regular
products that
are easily
available.
-No
‘Customization’
-Default on delivery
-Default on payment
-Loss of privacy and
threat of intellectual
rights damage.
What is
their
Unique
Selling
Point? What is
unique
about their
business?
-Customization
-Use of ‘homegrown’
and ‘fresh’ flowers.
-Freshly made cakes
and brownies on
daily basis.
-‘Creativity’ in
candle making makes
them different from
local product
available in the
market.
-Offer branded products
-Good quality
-Make international
variety available
Share good
rapport with the
customers.
-Branded and
international variety
available
-Low price of the
products.
-Home delivery of
the products
available.
16 New Business Development Plan Template 2014
PART TWO Financial Plan
This section will be awarded a total of 20 Points. These 20 Points will be allocated as follows:- Section A (5), Section B+C+D (5), Section E+F+G (5), Section H+I (5).
TOP TIP! You may complete your Financial Plan using your local currency. Please tell us what this is, E.g. Indian
Rupees. In the template we will ask you to convert your TOTALS into US $. You can use this website to do this: http://www.xe.com. Remember to write down the exchange rate you are using in the box below!
Please add any extra rows to the tables where necessary.
Local Currency used (E.g. Indian Rupees)
Indian Rupees
Exchange rate to US Dollars (E.gIndian Rupees) 1 US $ = 60.5 INR
Period of time budgeted for (E.g. 3 months)
3 months
Section A: Business Development Budget (Estimated)
TOP TIP Your Business Development Budget is the costs of the additional Equipment and Supplies that you will need to develop your business. Please note: if you do not need to buy extra equipment or supplies to
develop your business, go directly to Question 2.
1. Please list all your Business Development Costs.
Business Development Equipment
Quantity Unit Cost Total Costs of your Equipment (Quantity x Unit Cost)
Hand tools for
gardeners
10 50 500
Business Development Supplies/Expenses
Quantity Unit Costs Total Costs of your Supplies/ Expenses (Quantity x Unit Costs)
Cakes 200 kg 200 per kg 40,000
Cards 200 35 7,000
Candles 500 10 5,000 Flower bouquets 80 30 2,400
Plant saplings with
Pots
100 20 2,000
Advertising expenses
(Discount schemes,
printing of banners,
membership cards )
3,000
Packaging 1,100
Labor cost (to janitors) 4,000
Event organizing
expenses
5,000
Total Business Development Budget (Add your Total Costs Together)
Local Currency 70,000
In US Dollars $
1157.02
Section B: Income (Estimated)
17 New Business Development Plan Template 2014
2. Please list all the products or services that your business will sell during the budget period. Please tell us the amount you think you will sell and the price at which you will sell them.
Name of Product or service
Quantity Sales Price Sales Income (Quantity x Sales Price)
Cakes 200 kg 500 1,00,000 Cards 200 60 12,000 Candles 500 40 20,000 Flower bouquets 80 100 8,000 Plant saplings with
Pots
100 80 8,000
Total Income (Add all the ‘Sales Income’ together)
Local Currency
1,48,000
In US Dollars $
2446.2
Section C: Direct Costs (Estimated)
3. Please list all of the items you will need to buy in order to make or provide each product or service.
Name of Item Quantity Unit Cost Total Costs (Quantity x Unit Cost)
Product/Service 1 Please tell us what this product or service is here: Cakes 200 200 40,000
Product/Service 2 Please tell us what this product or service is here
Cards 200 35 7,000
Product / Service 3 Please tell us what this product or service is here: Candles 500 10 5,000
Product/Service 4 Please tell us what this product or service is here: Flower bouquets 80 30 2,400
Product/Service 5 Please tell us what this product or service is here:
Plant saplings with Pots 100 20 2,000
Total Direct Costs (Add up all the Total Costs)
Local Currency
56,400
In US Dollars $ 932.2
Section D: Gross Profit (Estimated)
4. Please calculate your Gross Profit in your Local Currency and then convert it to US Dollars $.
Calculation
Local Currency US Dollars $
Total Sales Income 1,48,000 2446.2
Total Direct Costs 56,400 932.2
Gross Profit (Total Sales Income – Total Direct Costs)
91,600 1514.4
18 New Business Development Plan Template 2014
Section E: Indirect Costs (Estimated)
Top Tip Indirect costs are items that you need to spend money on to run your business. However, they are not
related to the making of your product or service. E.g. Marketing or transportation costs involved in getting your product to market.
5. Please list all of your Indirect costs
Name of item Quantity Unit Cost Total Costs (Quantity x Unit Cost)
Cakes 200 kg 40 8,000 Cards 200 6 1,200 Candles 500 5 2,500 Flower bouquets 80 10 800 Plant saplings with
Pots
100 11 1,100
Total Indirect Costs (Add up all the Total Costs)
Local Currency
13,600
In US Dollars $
224.8
Section F: Net Profit (Estimated)
6. Please calculate your Net Profit in your local currency and convert this to US Dollars.
Calculation Local Currency US Dollars $
Gross profit
91,600 1514.4
Total Indirect Costs
13,600 224.8
Net Profit (Gross Profit – Total Indirect Costs)
78,000 1289.3
Section G: Additional Capital Required
7. Please calculate how much, if any, additional capital you need to raise to develop your business. Please note: you may not need additional capital if your Business Development Budget is less than the profit you have available to fund your business development.
Calculation
Local Currency US Dollars $
a. Net Profit last year
21,400 353.7
b. Profit from last year used for other purposes e.g. donation to charity
15,400 (5,400 as
donation to Amar jyoti
school, 2,000 for candle
making workshop for
differently able
children and 8000 in
repayment of loan)
254.5
c. Profit from last year available to fund business development (a-b)
6,000 99.2
19 New Business Development Plan Template 2014
d. Business Development Budget 70,000 1157.02
e. Additional Capital Required ( d-c ) 64,000 1057.9
Section H: Pay Back Period (OPTIONAL)
8. Please calculate the Pay Back Period for your Business Development Budget
a. Budget Period E.g. 4 months 3 months
b. Net Profit 78,000
c. Average Net Profit per month ( b / a ) 26,000
d. Business Development Budget 70,000
e. Pay Back Period ( d / c ) 2.7 months
Section I: Product Profitability (OPTIONAL)
9. Please complete the following Product Profitability Worksheet for each Product or Service you are selling. We have provided you with two worksheets, however please add additional sheets if necessary. For this section ‘Product’ refers to the Product or Service that you are selling.
Product / Service 1
Name of product Cakes
Sales price of product 500
Predicted Amount of Sales 200
Total Sales Income of product (Sales Price x Amount)
100,000
We cannot bifurcate direct cost as we are taking products per piece from the makers and paying them a price which includes their cost and profit.
Profitability
Gross Profit of Product (Total Sales Income for Product – Total Direct Costs for Product)
60,000
Direct Cost per Product Item (Total Direct Cost for Product ÷ Amount produced of Product)
300
Percentage Profitability (Sales price for Product – Direct Cost per Product Item) x 100 ÷ Sales Price
60%
20 New Business Development Plan Template 2014
Product / Service 2
Name of product Greeting Cards
Sales price of product 60
Predicted Amount of Sales 200
Total Sales Income of product (Sales Price x Amount)
12,000
Profitability
Gross Profit of Product (Total Sales Income for Product – Total Direct Costs for Product)
5,000
Direct Cost per Product Item (Total Direct Cost for Product ÷ Amount produced of Product)
25
Percentage Profitability (Sales price for Product – Direct Cost per Product Item) x 100 ÷ Sales Price
41.6%
Product / Service 3
Name of product Decorative Candles
Sales price of product 40
Predicted Amount of Sales 500
Total Sales Income of product (Sales Price x Amount)
20,000
Profitability
Gross Profit of Product (Total Sales Income for Product – Total Direct Costs for Product)
15,000
Direct Cost per Product Item (Total Direct Cost for Product ÷ Amount produced of Product)
30
Percentage Profitability (Sales price for Product – Direct Cost per Product Item) x 100 ÷ Sales Price
75%
Product / Service 4
Name of product Flower Bouquets
Sales price of product 100
Predicted Amount of Sales 80
Total Sales Income of product (Sales Price x Amount)
8,000
Profitability
Gross Profit of Product (Total Sales Income for Product – Total Direct Costs for Product)
5,600
Direct Cost per Product Item (Total Direct Cost for Product ÷ Amount produced of Product)
70
Percentage Profitability (Sales price for Product – Direct Cost per Product Item) x 100 ÷ Sales Price
87.5%
Product / Service 5
Name of product Plant Saplings with pots
Sales price of product 80
21 New Business Development Plan Template 2014
Predicted Amount of Sales 100
Total Sales Income of product (Sales Price x Amount)
8,000
Profitability
Gross Profit of Product (Total Sales Income for Product – Total Direct Costs for Product)
6,000
Direct Cost per Product Item (Total Direct Cost for Product ÷ Amount produced of Product)
60
Percentage Profitability (Sales price for Product – Direct Cost per Product Item) x 100 ÷ Sales Price
75%
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