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Guide to Writing a Business Plan
Your business plan is a working document. It is not meant to be written
and then forgotten. You should review it regularly and if necessary
change it to ensure your plan (and your business) stays focused on the
objectives.
1. Use this template to write your own short business plan. If youre
looking for a business plan template to assist in getting a bank loan
visit http://plansandchecklists.business.vic.gov.au
2. The text in RED is instructional. You should delete it before printing orsending your plan.
3. Any text in blue indicates a link to a webpage or document. Press
control and click anywhere in the link to launch the page. You should
delete these links before printing or sending your plan.
4. Keep your sentences short and concise. Use bulleted lists to highlight
key points.
5. Break up your paragraphs with extra headings, as shown with the
example business text.
6. This template works best when used in Microsoft Word 97-2007
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Business Plan
Prepared By:
Table of Contents
1. Business Overview ...................................................................................3
2. Products/Services .....................................................................................4
3. Business Structure and Management....................................................6
5. Competition ................................................................................................9
7. Finances....................................................................................................13
8. Action Plan................................................................................................15
Appendix I: Competitor Analysis..............................................................16
Appendix II: Strategic SWOT Analysis.....................................................17
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1. Business Overview
Include in your overview:
what your business does, your products or services
how long you have been operating
the industry youre in
point of difference over your competitorssuch as different location,cheaper price or better serviceand key benefits to your consumers
where the business will be in two-to-five years and how this will be
achieved, e.g. your position financially and in the market place (you mayneed to complete this after youve worked through the other sections)
Outline of services
Example Business is a complementary medicine business based inMelbourne. The primary service is Kinesiology which promotes physical,emotional, mental, energetic and spiritual health.
HistoryExample Business has been in operation since February 2009 and sitswithin the Health Services and Complementary Medicine /AlternativeHealth Therapies industry. Example Business has one owner/manager andno staff are employed at this stage.
Point of difference
The business stands out from other complementary medicine businessesby:
being a holistic therapy which treats the whole person (physical,emotional, mental, energetic and spiritual)
adopting a modality with a process that is natural, gentle, safe,non-invasive and for people of any age and gender (including pets)
encompassing an education program that teaches clients to selfheal (clients are often looking for more than just an hourtreatment)
focussing on a strong online marketing presence
maintaining affordable services such as concessional rates and first
session specials
Service benefitsFrom my personalised Kinesiology process, clients will be treated as awhole person with a better understanding of the inner workings of theirlives. Clients will be empowered with the knowledge and tools to heal andbe healthy. The business will be accessible to a wider range of clientsthrough: affordability, Kinesiology requires an average of only a fewsessions per issue, and close proximity to local transport.
Five year plan
In five years, Example Business will have a network of clients in theMelbourne region and a national and international following in the online
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environment. The business will be sustainable with the ability to supportthe owner/manager on a full time basis.
2. Products/Services
Describe what you are going to offer your customers, including:
exactly what you are going to sell or provide and how it will be produced
branding and packaging (where applicable)
ongoing product or service development
your product/services features and how they compare to major
competitors
the price and how you have determined it (by considering productioncosts, labour and other overheads)
any dealings with supplier/s
Tip
Get information about defining your product
Service: now and ongoingKinesiology is the primary service. The training for this has beencompleted as at December 2009. The supporting equipment and stock
have been purchased within the start-up budget allocated. Ongoingtraining and industry networking activities will be sought throughout theyear through short courses, conferences and research. This will ensureskills and knowledge are kept up to date and to broaden the servicesoffered. 20 CPE (continuing professional education) hours per year are arequirement for association, health fund and insurance membership.
BrandingA logo with the business name has been designed and implemented on allmarketing and advertising material to enable brand recognition and toensure a consistent image is maintained. This includes business cards,
flyers, posters, articles, online business listings and the business website.The logo represents the idea of balance, a key aim of Kinesiology. Thecolour yellow is the main colour due to its association with happiness andenergy.
PriceSince completing the final level of training in Kinesiology, the price for asession is based on timeframe and full rate or concessional:
1. $80/$65 for one hour (full rate/concession card holders)
2. $110/$90 for one and a half hours
Price was determined by the average price of Kinesiologists in theMelbourne region who practice at the same level. To be both affordable to
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as many clients within the target audience and to charge an ethicalamount, the lower end of the scale was chosen. Clients with eligibleprivate health fund membership will also be able to receive a rebate.
Price was also determined by ongoing business expenses which include:
association and insurance membership, stock replacement, room rental,gas and electricity supply, telephone and internet services, furthertraining, marketing and advertising.
At the end of each financial year the price will be reviewed based onindustry trends, business expenses and any further training attained.
SuppliersIn the future the business may expand to include product sales. At themoment, suppliers for equipment and stock have been sourced andregistered with. The business is purchasing these at practitioner prices.
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3. Business Structure and Management
Describe the ownership structure (such as sole trader, partnership, company)including:
reasons for chosen structure
any trademarks, patents, web addresses and other intellectual propertyyou need to protect
owners and any legal agreements you may need
any key staff, their involvement, responsibilities and expected salaries
your exit strategy
Tip
StructureThe structure of the business is Sole Trader. The benefits of this structureinclude: low level of legal and tax formalities involved in setting up thebusiness, inexpensive to set-up as a sole trader, and the control and profitremains entirely with the business owner.
ProtectionThe business has registered the name Example Business in Victoria only.As a sole trader, the business has no protection from a company to takethe name due to ATO laws.
The business has registered two URLs www.examplebusiness.com.au andwww.examplebusiness.net.au. This needs to be renewed every twoyears.
The business has not registered a trademark or any other IP.
Owners and staffAs a sole trader, the business does not have any legal or informalagreement with any other owner or business. The business does notemploy any staff. This is a consideration for the five year mark.
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4. Market Analysis
Research your market and industry. Consider the following sources: industryprofiles on IBISWorld (which can be viewed for free at any Victorian BusinessCentre), trade magazines, government reports such as the Australian Bureau of
Statistics, consumer surveys, running focus groups, identifying your competitors,online keyword analysis etc.
Briefly outline what market your product/service will serve and why. For example,if you plan to publish a magazine, you need to know about publishing trends,online competitors, other publications that cover your market (including theircirculation, advertising rates, reader profiles) and identify a viable gap to fill.
Make sure you include:
who will buy your product or service
where your market is located: local, regional, state, national orinternational
the state of the market: is it growing, declining, segmented?
market influences such as seasonal price fluctuations or trends
the price range: based on your target market will it be high, low or in themiddle
Tip
Target audience
Complementary medicine targets people of all ages from babies to theelderly. Kinesiology can also be used with pets. Kinesiology targets anyproblem from physical complaints such as pain and disease, emotionalproblems such as depression, mental problems such as memory loss tospiritual problems such as life goals.
To further define the audience, Example Business specialises in:
Womens health
o While females comprised half the population in 2004-05, they
accounted for 62% of people who had visited acomplementary health therapist in the previous two weeks
(of the census) and 56% of people who had visited otherhealth professionals.
Sleep disorderso Over 1.2 million Australians experience sleep disorders.
Stress, anxiety and depression
o Depression is one of the most common of all mental health
problems. One in five people experience depression at somestage of their lives. While everyone feels anxious from timeto time, some people experience these feelings so oftenand/or so strongly that it can affect their everyday lives.
Emotional and spiritual well being
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LocationThe location of the business is currently Brunswick on the North side of
Melbourne. The council is Moreland City. The service requires clients totravel to Brunswick. While the business has attracted clients from otherareas of Melbourne such as the Southern Metro region, the target ismainly the inner and outer Northern suburbs.
North Melbourne is suffused with successful complementary medicinebusinesses which highlights the community as common customers ofcomplementary medicine. This is also a challenge to the business with ahigh number of competitors. A move to another affluent area that is lessdominated is a possibility.
From a national and international perspective, the business websiteutilises online social networking in the form of blog posts. The purpose ofthis is to support and educate those that cannot travel to the clinic orcannot afford the services.
Market trendsThe enumerated population (those counted on census night in Moreland)was 135,205. However, the estimated resident population count (anestimate that accounts for people not counted in the census) was 144,015(as at 30 June 2007).
Individual income varies considerably with the majority earningsomewhere between $150 and $799 per week. This data related to peopleaged 15 years and over. Over 6,000 individuals in the Moreland area workin the Health Care and Social Assistance industry.
The highest age group in Moreland is 20 to 44 years. People who visithealth professionals tend to be older than the general population, becauseillness increases with age. However, the proportion of the population whovisited complementary health therapists was highest between the ages 25and 64 years (ABS).
Since the 2006 Census it is estimated that the Moreland community willincrease by 1 to 1.5% each year. There are currently 10,200 registeredbusinesses.
Several reports indicate that over 50% of Australians are using alternativetherapies and this number is increasing significantly.
InfluencesDespite the recent economic recession, the trend toward alternativetherapies is increasing. The ABS reports that "Complementary healththerapists are relatively small occupation groups but have been growingfast, according to census data. Likewise, the number of people who
reported having consulted such a therapist in a two-week period increasedfrom around 500,000 in 1995 to almost 750,000 in 2004-05 (ABS 2008).
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An IBISWorld special report for 2010 predicted alternative healththerapies will be the seventh highest growth industry for 2010, with anincrease of 5.1%. Growth has been encouraged by better acceptance andunderstanding of treatments, rising consumer focus on health due toAustralias ageing population and increased coverage of alternative health
therapies by private health insurance providers.
Price fluctuations are uncommon other than those related to inflation.
Price rangeGiven the average income in the Moreland City Council is in the middlesocio-economic bracket, the price will remain on the lower end of thescale. This is coupled with a marketing approach that targets affordability.
5. Competition
List details about your competitors including:
who and where they are
how you'll position your product or service against them
your product/service features against theirs and what gives you acompetitive edge
the benefit/s of your service/product in comparison to the competition
comparison of your pricing, promotion and distribution
Tips
To help you assess your strengths and weaknesses against your
competitors, complete the Competitor Analysis Template, Appendix I
Competitors profileAccording to the census, 8,600 people were employed in Australia ascomplementary health therapists in 2006. This was 80% higher than thenumber in 1996. The leading occupations were naturopaths (2,980) andchiropractors (2,490), up 56% and 45% respectively from 1996. The
fastest growing group was osteopaths, tripling in number between 1996and 2006. Over the same period, the Australian population increased by12% and the total number of health professionals rose by 31%.
The majority of each type of complementary health therapist were ownermanagers, ranging from 91% of homeopaths to 72% of naturopaths.
The Moreland City Council region has a particularly large number ofcomplementary medicine businesses ranging from home based and smallshopfront clinics to larger scale multi-disciplinary health centres.
Point of difference
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The business stands out from other complementary medicine businessesby:
being a holistic therapy which treats the whole person (physical,emotional, mental, energetic and spiritual)
adopting a modality with a process that is natural, gentle, safe,
non-invasive and for people of any age and gender (including pets) encompassing an education program that teaches clients to self
heal (clients are often looking for more than just an hourtreatment)
focussing on a strong online marketing presence
maintaining affordable services such as concessional rates and firstsession specials
Service edgeExample Business approaches complementary medicine in a holistic wayby treating the whole person and giving clients a better understanding of
their lives. Clients will be empowered with the knowledge and tools to healand be healthy. Kinesiology promotes physical, mental, emotional,energetic and spiritual health.
Price and promotion comparisonFor similar services, pricing ranges from $70 to $180 per hour in theMelbourne region. Those on the higher end of the scale have increasedtheir prices due to further training and extensive experience. ExampleBusiness has set the price at the lower end of the scale to enableaccessibility to a wide range of clients without undercutting thecompetition (predatory pricing).
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6. Marketing Strategy
Show how consumers will find out about your product/service including:
where, how and when you will promote your product/service such asshopping centre promotions, point of sale, viral marketing, billboards,loyalty schemes, etc
what type of printed materials youll create
your website or online presence
details and cost of advertising including print, online, TV and radio
product/service launch plans
how you will measure the success of your marketing strategy and variouspromotions
how pricing will encourage sales (e.g. selling in bulk)
wishlist for further marketing in the future (ideas to look at further downthe track with more $ or more experience)
Tips
To help you assess which marketing strategies will best reach your target
market, complete the Strategic SWOT Analysis Template, Appendix II
Promotion
During the initial set-up phase and the first few years of business, thebudget for marketing is minimal. Whilst the majority of clientele seek outnew therapists by word of mouth, specific marketing tools have beenchosen for their cost effectiveness. The business logo and colours will beconsistent across all material to encourage brand recognition. The list ofcurrent marketing tools is as follows:
Small local newspaper ad (this was found to be ineffective)
Low cost local exhibitions that target lifestyle, health and wellbeing
Website/blog with online business listings (free and low cost)
Small Google Adwords campaign
Letterbox drop with flyers (also found to be ineffective)
Flyers and business cards to be taken to local businesses Networking with other practitioners
Online presence
The business website and online listings is the focus for marketing at thisstage. Search Engine Optimisation has been a focus for content andfunctionality. The feature article section will allow for a diverse range oftopics to be explored. A Subscription to email updates is an avenue forfurther marketing and notifications of new articles and special serviceprices. From this, Example Business hopes to gain an online community
following and increase the discoverability for new clients.
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Example business is listed on Natural Therapy Pages as this is the mostwidely used practitioner listing in Australia. Other online business listingshave been sourced and registered with. This will increase the presence ofthe website on Google search results.
CostThe cost for marketing is:
Printing of business cards (500): $65
Printing of flyers (200): $22
Printing of banner for exhibitions: $16
Website: $3,149.50
Google Adwords: $1,200 (for one year)
Local newspaper ad: $187.00
Launch PlanThe launch of marketing material will be rolled out in three phases:
Phase 1 (set-up): Local letter box drop, Natural Therapy Pages listingand local newspaper advertisementPhase 2 (expand): Website launch, Google campaign, further onlinelistingsPhase 3 (maintain): Maintain website with new articles and Googleadvertising (dependent on marketing budget) and exhibition stalls
Measuring success
Evaluation of the effectiveness of each marketing campaign will be carriedout every six months. New clients will be surveyed as to how they found
out about Example Business and website analytics will evaluate onlinetrends (both the business website, Google and Natural Therapy Pagesallow for analytical tracking). Newspaper ads and letterbox drops havealready proven to be ineffective.
Business profit will underpin the ability to extend the marketing campaignbeyond the current three phases.
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7. Finances
Summarise your financial situation including:
how you'll finance your business, e.g. business loan, personal funds,investment capital
costings, including your start-up costs, salary and fixed overheads
financial projections including how much you will need to make to breakeven, when you are likely to make a profit and growth expectations
Tip
Find an accountant to help you by using
Finance
Example Business start-up costs were funded by personal savings
of $26,088. As the business has begun on a part time basis, a
supplementary part time job has been sourced to support the
developmental stages. The business has no employees.
Basic costing
Training: $19,000
Business name registration: $79.50
Insurance: $200.00 (annual)
Association membership: $180.00 (annual)
Equipment and stock: $3,079
Website development, hosting and domain purchase: $3,149.50
Accountant fee: $400
Financial projections
It is estimated that within a five year time period the business willbe running full time and at a profit to support the owner/manager.
At the eighteen month mark (current), the business is attracting
new clients on a weekly basis and is running part time. The desired
growth is to reach and maintain twenty sessions per week (an
average of four sessions per working week day).
Validate your summary by completing these financial templates and attachingthem to the end of your business plan. Download these templates and guides andsave them separately.
(MS DOC 40Kb)These are your start-up costs which will not be repeated, e.g. setting up
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premises, licences, buying equipment, market research, etc
(XLS 32Kb)This shows your profit and loss for the first 12 months: this will includesales revenue, product costs and expenses
(XLS 51Kb)Most small businesses use their cash flow to show net worth, however thisis useful for bigger businesses
(XLS 29Kb)Calculate how much cash you will need to keep your business running,irrespective of expected profit, and where it will come from. This will helpyou determine your overall overheads
(PDF 123Kb)This tells you how much money you need to make to run your businessand is useful to calculate your required cash flow
Tips
Access other
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8. Action Plan
Your action plan is the most important part of your business plan. It manageshow youre going to achieve your business plan objectives, so review it regularly
and use it to control your activities. List the actions by key areas such as:
establishment
legal
finance
marketing
List the key tasks to be done, by whom and by when. Dont make them toodetailed or they become unworkable. If you dont achieve a task, reschedule it,but if its still not done by the second date, ask why. Is it too large? Is it unclearhow it will help the business? Do we have the skills to do it? See example below.
Key Objectives Task By Whom By When
Establishment
Register business andtrademark
CP 15 Dec
Research and purchaselicences
FB 15 Dec
Finalise premises - Rental agreement- Redecorate- Finalise office set up
TS 1 Feb
LegalContracts Consult with lawyer FB 15 Dec
Finalise contracts FB 15 Jan
Sign TS/CP/TGJ/FB 1 Feb
Finance
Determine fixedoverheads
- Get costings- Meet with accountant
CP 15 Dec
Determine financialobjectives
Identify amount to reduceloan
FB 1 Jan
Finalise cash flowplan
- Review P&L with managers- Complete cash flow plan
CP/TS/ FB 1 Jan
Finalise initial finance Review finance documents CP 1 March
MarketingDetermine sales andmarketing objectives
Identify sales in each quarterfor first year
FB 1 Jan
Determine launchplan
Outline plan TS 1 Feb
Agreement and decision onimplementation
TS/CP/TGJ/FB 1 March
Create a brochure Agree concept TGJ 15 March
Approval of copy TGJ/CP 30 April
Print TGJ 10 May
Distribute brochure TGJ 1 June
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Appendix I: Competitor Analysis
Use this table to list your competitors and how you compare against them. Thinkabout how your business can improve on what they are offering.
Competitor Size Strengths Weaknesses
Their name Small, medium orlarge e.g. Staff#s, estimatedpercentage ofmarket share
Their main strengths,including their uniquevalue to customers e.g.convenience, price,quality, service
Their mainweaknesses
TotalTranquillity
Small
*Inner city retreat
ambiance*Multi-disciplinary team
*Targeted outcome (relax)appropriate for citylocation
*Marketing approach
may limit their reach*Crowded space forthe number ofpractitioners
Life Evolution Small
*Multipleservices/qualifications
*Price (offering free miniservices)
*Uncommon servicetype may mean peoplewont try it
*Narrow approach
*Jargon used onmarketing material
Local HolisticHealth
Small
*Multi-disciplinary team
*Dispensary of herbs andnatural remedies
*Health store with booksand other products
*Location difficult tofind
*Price is upper market
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Appendix II: Strategic SWOT Analysis
A strategic SWOT (strengths, weaknesses, opportunities and threats) analysis will
help you turn your knowledge into strategy which you can then turn into actions.It provides direction to the business and its marketing strategies.
Use this table to describe your businesses strengths, weaknesses etc and developstrategies that will help you eliminate or mitigate them. Lists ways you cancapitalise on your strengths and take advantages of opportunities.
Consider turning the strategies into actions using your Action Plan.
Strengths WeaknessesAdvantages the business canexploit, e.g.
good customer service innovative edge
unique products
Areas of the business that need tobe acted on, e.g.
poor website not enough staff training
Opportunities Strategies using strengths
to address opportunities
Strategies to reverse
weaknesses to address
opportunitiesMarketplace areas that can
be built on, e.g. gaps in the market
competitor closure
Ways to take advantage of business
strengths, e.g. promoting good customer
service to attractcompetitors customers
Ways to ensure weaknesses dont
hamper opportunities, e.g.
hiring an experienced trainer
to up-skill staff
provide better customerservice, something no one isoffering well at the moment
Threats Strategies to counter threatswith strengths
Strategies to fixvulnerabilities
External issues that couldaffect the success of thebusiness, e.g.
decrease inconsumer demand
sudden increase incosts
Ways to use business strengths sothreats are not a problem, e.g.
launching new product torevitalise consumer demand
Ways to address areas where thebusiness may be vulnerable, e.g.
utilising new technologies orsocial media to reachpotential customers
adapting green practices tominimise costs
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