A How to Business Plan Guide Template 1

8/6/2019 A How to Business Plan Guide Template 1

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Place the name of the business plan in the header

Your name 2007/2008 Page 1

SAMPLE BUSINESS PLANNote: All information in this example is fictional.

You should do your own research.

BUSINESS NAMEWhat is the business name

APPLICANTS NAMES

What is the applicants name

ADDRESS

What is your address

TELEPHONE NUMBER

07 1234 5678

MOBILE NUMBER

4444 555 666

E-Mail [email protected]


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CONTENTS PAGE No

EXECUTIVE SUMMARY 4

ES.1 Description of the business

ES.2 Marketing OpportunityES.3 Key Strategies for Success

ES.4 Financial Summary

Eligibility Criteria

BUSINESS DESCRIPTION 5

BD.1 Business Description

BD.2 Products and Services

LEGAL REQUIREMENTS 6L.1 Legal Name and Structure

L.1.1 Business Name

L.1.2 Legal Structure

L.1.3 Tax Implications

L.1.4 Liability Implications

L.2 Registrations, Licences and Legal Obligations

L.3 Insurance 7

L.4 Consumer Protection

L.5 Contracts 8

L.6 Intellectual Property

L.7 Record Keeping

MARKETING PLAN 10

MK.1 Research Methods

MK.2 Industry Overview

MK.3 Target Market 11

MK.4 Features and Benefits 12

MK.5 Unique Selling Point

MK.6 Acceptance by Customers

MK.7 Marketing Strategies 14

Promotional Action Plan 16

MK.8 Marketing Budget 19

MK.9 Pricing Policy

MK.10 Packaging, Presentation, Display 20

MK.11 Distribution and Transport

MK.12 Competitors

MK.13 Payment and Credit Policy 21

MK.14 Customer Service


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Please note that all Business plan questions

are in black and example answers are in red.

Please start at the Marketing section on page

16 of your template.

Please note this plan must be written in the

third person only.. (ask for help if you do

not understand)

EXECUTIVE SUMMARY

ES.1 Description of the businessDescription of the Business (BD1)Have you:

- Stated the name of the of your business owners?- Stated the name under which your business will operate?

ES.2 Marketing Opportunity

Motives for Business

Have you:

- Described how your initially determined your business idea?- Indicate why you wish to pursue the idea?- Indicate why you believe you are capable of succeeding?

Research undertaken MK 2

Target market MK3

Unmet demand/Acceptance by customers MK6

Marketing techniques: MK 7

Competition factor (MK12)

ES.3 Key Strategies for Success

The Opportunity and Strategy

- Unique selling point MK5- Marketing strategy MK8


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- Swot analysis of your business (OP 10)- Key qualifications and experience (HR 3)

ES4 Financial summary

Financial Assistance Required

Have you:Indicate any funds sought?

Describe how such funds will be used?

Have you summarised the sales projections and profitability for the first and second

years?

Examle answer.

I am using my own saving to start this business. I have estimated that I need $2200 tostart the business this includes; insurance, business marketing material, advertising andmarketing budget for the first 3 months and some working capital.

Financial table Year 1 Year 2

Sales $25,580 $49,890

Cost of Goods Sold $ 3,847 $ 7,376

Gross Profit $21,733 $42,514

Overheads $ 8,240 $ 8,489

Net Profit $13,493 $34,024

Cashflow In $43,138 $54,879

Cashflow Out $37,752 $49,603

Balance $ 5,386 $ 5,276

Sales Break Even $38,185 45,618

Business Eligibility Criteria (very important section)

Use the existing text to best describe your venture,

please note the examples used to give you an idea

of the type of answers required.

Please note two examples of the answers have been

given, please use any ONE or a combination of the

two.


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######### will abide by all State and Federal laws including industrial law in relationto employees, trade practices and consumer protection. We will also remain fullylicensed and insured to operate as a food product manufacturer, and our research hasidentified the following requirements:

Legal Requirement Relevant Authority Cost$

Date Registered

ABN registration Tax dept. Free

Trading nameregistration

Office of Fair Tradingwww.consumer.qld.gov.au

$128.40 Not registered

Domain nameregistration

www.netregistry.com.au $54.95 for 2 years

Trading name andlogo trademark

registration

www.I paustralia.gov.au $120 Application$300 Registration

GST registration business.gov.au N/a

BAS registration business.gov.au N/a

Smart licence

information

Contacted smart license free service Require some

information BCC

Council regulations Do Not require Free service Complete

The business is commercially viable:

######### is forecast to present net profit of $13,493........in Year 1, test marketing,surveys and retail interest back up these figures

Financial Summary

Year 1 Year 2

Sales $25,580 $49,890

Cost of Goods Sold $ 3,847 $ 7,376

Gross Profit $21,733 $42,514Overheads $ 8,240 $ 8,489

Net Profit $13,493 $34,024

Cashflow In $43,138 $54,879

Cashflow Out $37,752 $49,603

Balance $ 5,386 $ 5,276

Sales Break Even $38,185 45,618$


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The business is not based on the purchase or takeover of an existing business:

######### did not purchase or take over any existing business. The proprietors havebought the plant and equipment from a business operator who is no longer trading, but

did not buy the business itself, ie we did not buy the business name, goodwill or anythingother than the plant and equipment.

######### is a completely new business and has not grown from the purchase ortakeover of another business.

The business will not compete directly with existing businesses unless it can be

demonstrated that there is an unsatisfied demand for the product or service, or the

product or service is to be provided in a new way:

(Please note; this question is a difficult one but you may find help by looking at

MK4, MK5, & Mk6)

While there are certainly a lot of surfboard manufacturers on the Gold Coast:There is unmet market need for surfboards at the custom end of the market (see attachedABS and Surfing Australia information). We target this poorly serviced segment of themarket with boards priced in the $1500-$5000 range, and will not impact on the generalmarket ($350-$900 range).No other local manufacturer produces surfboards using bamboo, which is seen as adistinctive, boutique product.

Will be established, located and operated solely within Australia:

######### is registered in Queensland and all management and control will remain inAustralia. With the exception of the marketing trips to Italy, France and Hawaiischeduled in the business plan, all operations will be conducted in Australia. Productswill be exported from month 6 provided all goes to plan.

######### is registered, owned and managed completely within Australia. There are noplans for any marketing or export activity overseas in the first 2 years.


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Please note this plan must be written in the

third person only.. (ask for help if you do

not understand)

BUSINESS DESCRIPTION

BD.1 Business Description

Have youDiscussed your business concept in general terms?What type of business are you running retail, wholesale, manufacturing, combination,business services, personal services, tourism, entertainment, art & other.

BD.2 Products and Services

Keep in mind that people who read your business plan may not

have the kind of background knowledge you have. It is best

that you give a full description of the products/services and

where possible provide photos or examples as an appendix.

Example below:

Service 1: Therapeutic massage One Hour $65An initial consultation is conducted discussing the clients medical history and personallifestyle. The clients likes, dislikes, needs and wants are identified. This is followed by atherapeutic massage, concentrating on the neck, shoulders and back. It is tailored to the

individuals requirements. It is a smooth, flowing massage, relieving tenseness and stress.Service 2:Service 3:Service 4:

(And so on for several more services)


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LEGAL REQUIREMENTS

L.1 Legal Name and Structure

L.1.1 Business Name

Have you:indicated what the trading name will be?

Example below:The name of the business is ABC limited. This name has been chosen because itimmediately identifies the service and describes what the business is about.The business name has been registered on the 12/12/09

OrThe business is not yet registered with the State Government.We will be using our ownnames for the next couple of months until funds become available.

L.1.2 Legal StructureHave you:

- described the legal structure of your business?

Example below:The business is a partnership between Mary and Michael Potts. The partnershipagreement is attached. It is an equal partnership in profit sharing, management andresponsibility.At this stage of the development of the business we believe a partnership structure is themost advantageous to us. This is for both management and tax purposes. The business iseasier to manage as a partnership and there are no complicated legal requirements. As we

grow and our Net Profit increases we will seek professional advice about setting up acompany or trust.

L.1.3 Tax Implications

Have you:

identified taxation obligations, which will be of particular relevance to your

business?

Listed all the allowable tax deductions for your business?

Example below:The partnership is registered with the Australian Tax Office and has been issued with a

Partnership Tax File Number. The profit is split equally between the partners and formspart of the taxable income of each partner. Each partner will pay personal tax on his/hertaxable income. The partners will put their tax liability amount in a special bank accounteach week. we will work out the amount using the tax tables.

Taxable Income Tax on this income


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$0 - $6000 Nil

$6001 - $34000 15c in each $1 over $6000

$34001 - $80000 $4200 plus 30c in each $1 over $34000

$80001 - $180000 $18000 plus 40c in each $1 over $80000

$180000 onward $58000 plus 45c in each $1 over $180000

The Australian Tax Office requires records to be kept for a period of 5 years. we haveobtained a filing cabinet to store the documents, and we have organised a filing systemfor invoices, receipts etc. It is our intention to keep the filing up to date by doing it on aweekly basis.

L.1.4 Liability Implications

Have you:described the legal implications of choosing this particular form of ownership as it

relates to your business?

Example:The partners are jointly and severally responsible for the liabilities of the business. Thismeans each partner is responsible for all the debts of the business, no matter who incurredthe debt.

L.2 Registrations, Licences and Legal Obligations

Have you:

listed and described any local, state or federal government regulatory requirements

that affect your business? (e.g. Council approval, health and safety permits,

operation a business from home)

Legal Requirement Relevant Authority Cost

$

Date Registered

ABN registration Tax dept. Free

Trading nameregistration

Office of Fair Tradingwww.consumer.qld.gov.au

$116.40

Domain nameregistration

www.netregistry.com.au $54.95 for 2 years

Trading name andlogo trademarkregistration

www.I paustralia.gov.au $120 Application$300 Registration

GST registration business.gov.au N/a


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For private customers it will not be practical to have a written contract.Verbal and Implied Contracts with private customersWritten Contracts with business customers

L.6 Intellectual Property

Have you:

Described and patents or registered trademarks relevant to your products/services?

Example Below:There is no Intellectual Property applicable. The business name has been registered inQueensland only. Should we wish to extend the business to other states we will considertrade marking the name. This may be done through IP Australia.

L.7 Record Keeping

Have you:Identified specialist service you will employ to assist with maintaining your business

records?

Example Below:We understand that it is in our best interests, both for management purposes and taxpurposes that we obtain and keep all the documents we should. We will be using amanual bookkeeping system in the first year. We will consider changing to a computerbookkeeping system in the second year.There are a number of different types of records; financial, legal, and operational.

Financial records required are:

Analysis Book forSales and Expenses, Copies of invoices, expensesReceipt books, Order books, Cash flow, Profit and Loss StatementBalance sheet, Tax Records, ABN, BASStatementsBank Records, statements and reconciliation, cheque book, deposit bookAssets register

Legal records will include:

Supplier contracts, Insurance Records, Local Council Self AssessmentANTA membership, Business Name Registration

Operational records include:

Customer records, Customer contracts, Vehicle Log BookVehicle servicing, Advertising records


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MARKETING PLAN

MK.1 Research Methods

Methods Used to Research the Market Place

Have you:List the research methods used to gather information regarding the market for your

products/services? (e.g. questionnaire, observation, or face-to-face interviews)

Example of Answer:

Desk Research:

This was done using the Internet. we researched the Australian Bureau ofStatistics website and the State Department forSmall Business webb Site. From links with them wefound the Economic Forecast site.

SurveyA number of individuals and businesses were surveyed during the NEIS training period.Feedback from the surveys was extremely valuable in particular in gaining an insight intowhat potential customers want, and how much they are prepared to pay.

Face to face interviews

A number of face to face interviews were conducted with business owners (generally as afollow on from conducting a survey). The interviews took a relaxed approach, andallowed the owner of the surveyed business to express their wants and desires freely.

Test Marketing MethodsNetworkingThe business owner has heavily utilised opportunities to network with other businessowners, and seek their opinions and feedback. The feedback obtained from networkinghas been very positive, with a number of other business owners indicating that they wishto use Brand Ignition services in the short to medium term.

MK.2 Industry Overview

Have you:

Described the current state and prospects for the industry?

Described primary and secondary research?

C onsulted and recorded information from people who are currently operation in

the industry, especially those who have relevant background knowledge about your

particular type of business?

Example below:Research undertaken has provided positive results.massage Therapy Association: Information from the Association shows there has been a23% increase in the use of massage in the last 12 months. The clinic based massagebusiness conducts on average 23 massages. Home based businesses average 18 hourly


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Target Group 2. A second target market has been identified as middle-aged women whoare image conscious. They often have grownup children and may be resuming theircareers, or are non-working but have an active social life. They are fashion conscious andhave a high disposable income.

Target Group 3. Sportspeople of both genders requiring massage for relief of strainedmuscles and as a recovery process from their active sport involvement. They are usually amember of a sports club and participate in the sport on a weekly basis. High impact sportsare particularly stressful on the body. Age is between 18 and 30.

Pottsville has 12 sporting clubs with a membership of 1800 active participants, and 3gyms with approximately 250 members.

MK.4 Features and benefits

Have you:

described what features of your products/services will be emphasised to generatesales? (e.g. service, quality, price, delivery)

Example:

Feature Benefit to customer

Therapeutic massage using oils, music Relaxed, energised, stress relief

Relief of aches and pains, feeling of well-being, relieves tension

Able to face life again

Improved image

Remedial massage using oils and music Pain relief, stiffness and soreness relief

Improved performance and enduranceHelps prevent injuries

Service packages Cost savings

Convenience

Time savings

Only has to give one brief

Appointments held in client office Cost savings on transport

Time savings as no travel time needed

Convenience

Prices below industry standard Cost savings

Frees up funds to use for other marketing

to increase activityHigh quality products and services Customer makes better impression on their

own customers

Customer has increased confidence

Professional customer service Client feels respected

Client is confident in the skill of .


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MK.5 Unique Selling Point (Important section)

Have you:

discussed any innovative marketing tactics that will be used to enhance customer

acceptance of your products/services?

Example:It is important that we offer something different from our competitors so that we standout from the other massage businesses. The basic product is the same. One of our uniqueselling points is our very high qualifications. We will emphasise this. One way of doingthis will be to give our customers information sheets on what we do and how it benefitsthem. These will be attractively laid out and not too wordy. It will distinguish us from ourcompetitors and show that we care for our customers.

We will give our customers information on stretching and relaxing exercises they can doat home. We will also give dietary information. What we are offering is a holistic view ofthe customer as all aspects affect each other. In this manner we hope to stand out from

our competitors. We will have a very strong loyalty and follow-

up programme. This willprovide benefits to our customers in savings and ensure we get regular appointments fromthem

MK.6 Acceptance by customers (Important section)

Have you:

discussed the profile of your customers?

Have you:

described customers reasons for buying your products/services including

individual, social and lifestyle influences? (e.g. price, quality, reliability,

convenience, prompt efficient and friendly service, expert advice or other.)

Example:

A number of surveys have been completed with a variety of different types of businesses.It is important that we offer something different from our competitors so that we standout from the other massage businesses. The basic product is the same.The typical customer is a small to medium sized enterprise that has been established forat least twelve months.

Customers have indicated that they wish to purchase from us as we can offer timesavings, cost savings and convenience, as well as a wide scope of knowledge.

Our pricing is also very competitive in the industry, and customers have given verypositive responses to this.

Other sources of evidence is the test marketing we have completed, it is now $560 grosswith $190 in costs, all clients were happy with their massage.


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These ads have proven to be very effective in driving visitor traffic to the website at a lowcost. It is the intention to continue with this form of advertising.The website has also been listed on a number of external business directory websites.This listings have greatly enhanced the websites search engine ranking (the order that the

website appears in relation to other websites in internet search engines).The e-newsletter will contain details on any current specials or promotions, a profile onan existing client, as well as tips and hints for business marketing.

A copy of the advertisement on Google has been attached as Appendix ***.

Print Advertising

will advertise in City News on a quarterly basis. City News is a community newspaperwhich is distributed heavily throughout the Brisbane CBD and surrounding suburbs.These areas contain a heavy concentration of small to medium sized businesses.

This newspaper is widely read, primarily by people working in professional services, andis reasonably cost effective.Other publications, including trade journals will be researched in the second year when agreater advertising budget is available.

Australia Post advertising

Australia Post offers a service which allows flyers and brochures to be delivered to PostOffice boxes. This advertising method is particularly appealing as it is possible to easilyensure that only Post Office boxes held by businesses will receive the marketing material.This ensures that we are not spending money unnecessarily on marketing materials whichwill be delivered to addresses which are unlikely to yield any return.This is also a very cost effective method, and easily targetable to a specific Post Office orgeographic region.

Person to person marketing (doorknocking, telephone canvassing)

This method of marketing will be used primarily in the first 3 months of operation.This method is essentially cold calling, with prospective customers being contacted by arepresentative (either in person or by phone) to advise them about services and attempt tosecure the person as a client.This is a reasonably cost effective method of promoting the business, however can betime consuming.

Radio Advertising

Radio advertising is available at very low rates as a result of the business ownerscontacts within this industry offering special rates.


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Radio advertising will commence in 2008, and will consist of pre-recorded, 30 secondadvertisements being played on air at various times during the day.Radio advertising is considered to be a fantastic way to compliment other marketingactivities, and ensure that the business brand remains at the top of the potentialcustomers mind.

Noticeboards

We will place attractive notices (copy attached) on notice boards in the clubs networkwith and in other organisations such as the library, 3 shopping centres and churches.

Loyalty Programmewe will introduce a loyalty programme. we will give customers a card and stamp it so thatafter the fifth massage they can either have the sixth one free or give it to a friend. wewill have a follow up programme whereby we contact clients when their next massage is

due, and offer specials for birthdays, Valentines Day and so forth. This programme willbe especially important during winter when people tend to stay at home.

Club MembershipWe will invite customers to join our club for a small fee. This entitles them to ongoingspecial discounts, newsletter and functions, such as wine and cheese info nights, gymsessions and other activities. This programme will be especially important during winterwhen people tend to stay at home.


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PROMOTIONAL ACTION PLAN

Type Of Promotion What Has To Be Done By When /

Deadline

Date Of

Advertising

Who Has To

Do It

1. Networking

See diary for full details Take posters &

Business cards.

Same

Address monthlymeeting

Arrange date

31 January

10 March

25 March

27 March

Mary &

Michael

M & M

M & M

Michael

2. Posters on Club and

Community

Noticeboards

Get designed andprinted

Place on noticeboards

20 January

31 January 31 January

Michael

Both

3. Article in local

newspaper.

Advertisement in local

newspaper

Contact reporter

Contact advertising rep

5 January

5 January

15 January

Fortnightlystarting 15January

Michael

Michael


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Type Of Promotion What Has To Be Done By When /

Deadline

Date Of

Advertising

Who Has To

Do It

4. web page Contact designer 28 February 20 March Mary

5. Loyalty program Design and print business cards with

loyalty chart on back

20 January 31 January Mary

6. Club membership Club card andbrochure.

20 January 31 January Mary

7. Letter drops Design and print

Deliver

5 February

Every quarter March/June/Sept/Decembe

r

Mary

Both

8. Radio

9. door to door

10. Australia Post

Note: All printing of business cards, posters, brochures and letterdrops, fridge magnets to be negotiated wJanuary as they require 10 days from time of order to produce items.


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MK.8 Marketing budget

Example:The budget has been determined by considering the most cost effective advertising

methods available to the business on a limited budget.

will advertise as often as is practical within the budget. In particular, the website willremain as a promotional tool 24/7, and networking opportunities will arise almost daily.

It is anticipated that the website and networking will account for 70% of sales, with acombination of the other advertising methods making up the remaining 30%.

All marketing activities will be continuously monitored and reviewed to ensure that thebusiness is gaining the maximum possible impact from its marketing from theinvestment made.

Type of Advertisement Size Cost Frequency Total Cost

Networking (business cards) 90x55mm $0 Continuous $0

Website 15 Pages $24.94 Monthly $299.40

Online (Google) 4 Lines $28.00 Monthly $336.00

Print (City news) 71.5mm x59mm

$263.62 Quarterly $1054.48

Australian Post (PO Box flyer drop) DL 14c ea Quarterly $389.00

Promotional items for clients Various $350 Continuous $350.00

Radio Advertising 30 second $100 Monthly $100.00

Total Annual Cost $2528.88

For full details on these quotes see attachments ***.

MK.9 Pricing policy

Have you:

determined and indicated the price charges for your products/services?

Outlined the pricing strategy and pricing tactics? (e.g. skimming, penetration, target

return, going rate, perceived value, cost based, image pricing, product line pricing,

psychological pricing, loss leader pricing, discount pricing, distress pricing and

differential pricing.)

Example:Our pricing policy takes into account the following factors:

Profit: we need and intend to make a profit from the business. Prices must be high enoughto cover all our expenses, reward us for the risk and effort in setting up and running thebusiness, and provide enough money to maintain and improve our lifestyle.


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Competitors: we must be competitive both in price and quality of service with ourcompetitors. It is no good our prices being too low that we do not get sufficient return. Ifour prices are too high we will price ourselves out of the market.

Supply and demand: At this time we have some competition but the market is not

saturated. we believe there is unmet demand so our prices do not have to be low.

Customer perception: we will position ourselves in the High Quality Low/MediumPrice bracket so our customers perception is one of Superb Value.

Image: we will have a very professional image for our business, demonstrated by ourpremises, uniforms and marketing material. This means that our customers would expectour prices to reflect this.

MK.10 Packaging, presentation, display

Example:Our brochures and business cards all have the same theme and logo to present aconsistent image.

Our uniforms have the logo and same colours and are not sterile.

MK.11 Distribution and transport

Have you:

described the methods you will use to sell and distribute your products or services?

Example:

Distribution is not applicable.Transport is our passenger sedan which is reliable and consistent with our image. We willhave magnetic signs on the vehicle as we travel to customers.

MK.12 Competitors

Have you:

Please indicate competition to your business idea.

Comment on direct - competition & in direct competition

How much competition within a 25KLMs radius.

Important question final paragraph

indicated what makes your business different from those of the competitors?

MK.13 Payment and Credit Policy

Have you:

outlined your credit policy?


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Example:Invoices carry trading terms of 14 days unless previous arrangements have been madewith the client. Payments can be received by cheque, in cash, or by direct bank deposit.Relevant details to enable the client to make payment (bank details etc) are clearly stated

on each invoice. The business also holds an account with PayPal which allows us toaccept credit card payments securely.

SuppliersThese arrangements have been made and are detailed under L.7 Contracts.

MK.14 Customer service

Have you:

identified the key elements in maintaining customer relations with your clients?

indicated what customer service policies will be put into place?

Included policies required by law which are relevant to your business? (e.g.

guarantees/warranties, refunds) outlined the procedures for dealing withcomplaints?

Example:

Key Elements

The key elements for maintaining customer relations with clients have been identified as:

y Provide quality, superior customer servicey Maintain contact, and keep the client informed at all stages of any processy

Ensure customer satisfaction at regular intervalsy Deliver product or service on time, and on budgety Follow up to ensure continued client satisfaction, and seize opportunities to value-

add or up-sell

Customer Service Policies

Telephone

Telephone calls are often the first contact with a client.

Telephone calls will be answered after 2-3 rings. In the unlikely event that the telephonecannot be answered, a reliable voicemail service is available for clients to leave amessage.

Email

All incoming emails will be answered as soon as possible, and no later than 24 hours afterreceipt.


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In person

In person meetings and appointments will be attended on time. In the unlikely event thatthere is a delay, the customer will be called to inform them of such.

The representative attending the appointment will be professionally presented, and speakin a confident, clear and professional manner.

Policies required by law

A refund policy exists whereby if a customer is supplied with a product that is not whatthey specified at time of purchase, or does not perform as was indicated to them, a fullrefund will be given.

Complaints Handling Procedure

Any customer with a complaint will be encouraged to issue their complaint in writing.

All customer complaints will be answered as soon as is practical, and no later than threeworking days after receipt of the complaint.

If the customer is not satisfied with the response, the complaint will be escalated withinthe business if possible.


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OPERATIONAL PLAN

OP.1 Plant and equipment requirements ($1000 and over)

Have you:-

described all the necessary plant, machinery and equipment,which will be purchased to allow production to begin?Example Below:

Plant and equipment required Already owned To buy or lease Value $

Vehicle Yes N/A $8,000

Computer No Buy year 2 $1,500

Air Conditioner Yes N/A $2,000

OP.2 Other equipment and consumables (Under $1000)

Equipment and consumables required Already owned To buy or lease Value $

Massage table Yes N/A $600Towels Yes N/A $200

Oils Yes N/A $ 50

Linen Yes N/A $200

Office furniture Yes N/A $800

OP.3 Hours of operation

Have you:

- designed the hours of operation?

Example:

Hours of operation will be: Monday to Friday 9 am to 6 pmSaturday 9 am to 12 pmSunday By appointment

We are flexible and will cater for customers who cannot attend during those hours.In addition we are available to attend gyms and sports clubs on an as needs basis. Wewill be encouraging this because we believe clients may be more open to receiving amassage during exercise or when they have finished their exercise and feel muscularstrain and stiffness.

OP.4 Production process

Have you:outlined a production/service schedule, based on the costs and benefits of the various

methods of scheduling workloads?

described the processes involved in producing your products?

Allocated the time taken in each stage of these processes

Example:Our production processes have been designed to produce:


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Greater efficiencyBetter consistency of serviceBetter quality of serviceReduced costs

Therapeutic MassageDesired outcome Customer finds the treatment remedial,refreshing, relaxing and revitalising

Quality Uphold the standards as laid down by theAMA see attached document

Human Resources Mary or Michael Magic

Finances No extra finances required

Equipment massage table, interview table and chairs,air conditioner

Materials Towels, oils

Premises 13 PotterSt, Pottsville

Legal Issues Indemnity form signed by customer,insurance cover obtained

Health and Safety Discuss clients medical history, personallifestyle, like and dislikes.First aid kit in houseFire extinguisher, smoke alarm, fire blanketin houseCheck massage tableCheck cleanliness of towels

Time Frame massage is for 1 hour. Does not includeinitial consultation

Processes1. Making Appointments

1. Customer telephones in response to marketing

2. Telephone answered on third ring

3. Appointment diary and pen by phone

4. Mutually convenient time arranged with client

5. Follow-up/reminder call diarised

6. Client requirements discussed and written in diary

7. Client advised of payment options

8. Call completed and file opened if new client

9. Client information transferred to clients personal file10. Follow-up/reminder call made

2. Conducting services

1. Check diary for appointments

2. Check driveway and entrance for clearway

3. Ensure clean towels and oils available


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4. Ensure massage room clean and tidy, wash hands

5. Greet client on arrival

6. Sit client at interview table

7. Conduct interview (see attached interview question sheet)

8. Fill in interview sheet

9. Explain process to client10. Proceed to massage room

11. Conduct massage in accordance with laid down procedure

12. Frequently seek feedback from client about well being and satisfaction

13. Massage ends

14. Seek final feedback from client

15. Complete customer loyalty card and hand to client

16. Explain how loyalty program and referral rewards systems work

17. Farewell client

18. Complete client file

19. Clean massage room and prepare it for next client

20. Have a well earned rest

OP.5 Seasonal influences

Have you:

identified and assessed the seasonal influences?

Example:

Research and discussions with others in the industry have indicated that there areseasonal influences that effect workflow, however these influences are very close

together and have a minimal effect on how the business operates.

In particular, research has shown that periods of time directly before holidays or majorevents (Christmas, Valentines Day, Easter etc) are busiest as clients are seeking tomarket themselves to capitalise on their own seasonal busy times.

Another potential seasonal influence is taxation, with a number of clients wishing tospend any remaining funds that have been budgeted for marketing before the end of thefinancial year.

OP.6 Location

Have you:discussed any disadvantages of the site in terms of proximity to customers and

suppliers, access to transportation, etc.?

Example Below:The business is located at:

13 PotterStPottsville Q 54540


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PlanDoReviewMake required changes

The quality process is incorporated in our operational processes in OP.4 ProductionProcess. we are in the process of developing a quality manual with flowcharts. This willbe complete by the time we start our business.

Key Stages have been identified.Marketing.

Check quality of pamphlets, business cards, posters, and advertisements prior toprinting.

Answering the telephone.Must be answered on third ring.Follow the laid down answering message (see attached process).

Ensure appointments put in diary clearly writtenEnvironment. At beginning of day and prior to each clients arrival:-Check outside and entrance wayCheck massage roomCheck equipment

massageSeek constant feedback from clientAt end of massage seek feedback from client

Our skill levelUpdate and improve skill level through annual training

OP.9 Contingency plans

Have you:

identified and assessed risks that may affect your business? (Occupational Health

and Safety considerations, relevant legislative requirements, security of investment,

market competition, supply and demand, resources available, security of premises)

developed a contingency plan?

Example:Vehicle.

Should the vehicle break down a loan vehicle is available in emergencies.

We have a reliable motor mechanic who we have dealt with over the last 6 years, andwho is located in the same suburb.

In the event of the loan vehicle being unavailable, a rental car would be obtained.

Fire.


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In the event of fire damaging the home office it can be moved to another location in thehome temporarily.

There is provision in the lease on the home for replacement premises to be providedshould fire destroy the entire home. This provision is made under insurance held by the

landlord.

Security of premises

The premises are secure with deadlocks on all external doors, security screen doors, andwindow locks.

Sickness or injury

Since the majority of work for clients is done remotely, minor illness or injury will notaffect work capacity.

Options are being considered for income protection or business interruption insurance. Itis anticipated that a suitable policy will be obtained in June of the first year of operation.

Market competition

The business is always at risk of new competitors entering the market.

Competitor activity will always be closely monitored.

Contingency reactions to new competitors in the market may include:

1. Pricing changes2. Re-alignment of marketing strategy to attract new customers3. Increased focus on retaining existing clients

Economic factors:

The industry is affected by economic ups and downs so we must be sensitive to thefluctuations in our customers income. If necessary, prices can be quickly changed torespond to economic conditions.

Machinery Breakdown:

In the event of machinery breakdown, a replacement will be purchased or hired asnecessary.

Supplier ceases operations:


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The business has relationships with a number of suppliers, and an alternative suppliercould be sought quickly and easily if required.

Contingency plan (1 = Lowest risk. 2 = Medium risk. 3 = Highest risk)

Risk Likelihood Contingency plan

Vehicle breakdown 2 Hire replacement until repairedFire/theft 1 Insurance to purchase replacement

Sickness or injury 1 Insurance to secure income

Market competition 2 Amend marketing and pricing to takecompetition into account

Economic Factors 2 Amend marketing and pricing

Machinery breakdown 1 Hire temporary replacement

Supplier ceases operations 3 Stand-by alternative

OP.10 SWOT Analysis

Have you:listed your strengths, weaknesses, opportunities and threats?

Identified the means by which you can capitalise on your strengths and minimise the

effects of your weaknesses in terms of the business?

Example:Strengths of the business.

y Working from home means overheads are very low.y The business is located in a high population growth area which means there are

new potential customers arriving all the time.

y Good networks have already been established with other businesses whosecustomers potentially are also ours.

y The proprietor has had business managerial experience working in the openemployment market.

y Given the marketing nature of the business, excellent marketing and advertisingskills and strategies are at hand and easily implemented.

Weaknesses of the business.

y The new business is new so is not yet well known in the area.y Home based operation means a somewhat limited exposure to the public.y Cashflow will need to be carefully managed to avoid over-spending.y It will be easy to suffer burnout if time is not managed effectively.y The budget for marketing is quite low for the first 3 months of operation due to

financial constraints.

Opportunities


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HUMAN RESOURCES

HR.1 Organisational Structure

Have you:

described the key roles/tasks to be performed in your business and the persons who

will fill each position? A rsum

for all partners should be included in Appendix A.

Example:The structure of the business is straight forward. We are an equal partnership. We bothhave equal responsibility for decision-making. However, we will be using otherprofessionals in our business such as Solicitor, accountant, bank manager, personalmentor.

Business responsibilitiesReception, massage, Sale of products, Promotion of the business, Liaison with 3 existingbusiness links; namely Pottsville Womens Club, The Best Gym, Over 50s Friendship

Club. Bookkeeping, Banking, Cleaning and laundry, Vehicle maintenance

HR.2 Owners Skills and Experience

Have you:

summarised the qualifications and/or special skills and relevant experience that

each partner brings to your business?

Qualifications/Licences required Owners Qualifications/Licences

Diploma in Therapeutic massage Mary

Diploma in Remedial massage michael

Bookkeeping Mary Certificate IV in Bookkeeping

Small Business Management Certificate

IV in Business (

Small BusinessManagement)

Management experience Michael 10 years, Mary 5 years (seeattached resumes)

massage experience Michael 1 year, Mary 2 years (see resume)

First Aid Training We have current First Aid Certificate,including CPR

Please describe your business experience over the last fewyears in relation to your new enterprise.

HR.3 Advice and Development

Example:Advice

Business Coach/Mentor


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Monthly performance meetings are to be held between the business owner and thebusiness coach/mentor (Keith Davidson/ Suzanne Parker) as part of the NEIS program.These meetings will take an overall approach to the operations of the business, withparticular emphasis on cash flow as well as profit and loss.

The business coach/mentor is also available by phone or email at any time for advice orencouragement.

Accountant

has been consulted on tax matters, and will be consulted again in June to assist with taxobligations.

Bookkeeping

The business owner has consulted with a Bookkeeping to put in place bookkeeping

worksheets and books which allow for ease of reporting.

Industry

The business has subscribed to a regular newsletter from the Australian Institute ofMarketing.

A number of e-newsletters and fact sheets have also been subscribed to in order to allowthe business to keep abreast of industry movements and changes.

HR.4 Job Descriptions

Example:Please see HR.2 Owners Skills and Experience.

A job description for the business owner will be developed after one month of operation.This job description will be continuously reviewed and updated as necessary, with theassistance of guidance of business mentors.Any new positions created within the business will have a job description developedbefore the appointment of staff.

HR.5 Wages and Enterprise Agreements

Example:Wages and Enterprise Agreements do not apply to the business at this time as thebusiness does not employ staff.Should staff be employed we will investigate the wage rates through the relevantauthorities (Wageline.com).


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HR.6 Workplace Health and Safety

Have you:

described in detail your Occupational Health and Safety responsibilities?Example:

It is the responsibility of the business to ensure the safety of its owner, staff, contractors

and clients at all times. All reasonable precautions must be taken.

Regular workplace health and safety audits will be conducted in the home office. Attimes when work is being conducted outside of the office, a basic WHS inspection of thework location should be conducted first.

A small amount has been budgeted for WHS, primarily to cover costs for an electrician totest and tag all electrical cables.

WHS is the primary responsibility of the business owner.

Hazard Risk factor PrecautionSickness, stress, tiredness 3 Healthy living and diet, beware of

stress, have fun, take breaks.

Muscle strain, fingers and hands 4 Take breaks, do exercises

Infection from clients 3 Do not have appointments with illclients

Fire in house 1 Smoke alarm, fire extinguisher, fireblanket, all we have

Injuries 2 First Aid training and kit, we haveboth

Electrical 1 Ensure no loose cables, have annual

check by electricianViolent client 2 Do not go to unknown clients

house, advise partner where you areand when, take mobile phone

Vehicle breakdown 3 As above, plus maintain vehicle

Vehicle accident 3 Drive carefully, maybe doDefensive Driving course

HR 6.1 Risk Management Plan

LocationActivity

HazardIdentification

Type/Cause

CurrentControls

RiskAssessment

Use matrix

Eliminate or controlMeasures

Grooming

StationBad ergonomics In place As per plan As per plan and

policies and procedures

Risk Management Plan as per policies and procedures;


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y The RM process consist of well-defined steps, that when taken in sequence lead toinformed decisions about how best to avoid or control the impact of risks

Step 1 Identify the problem (or hazard)

Risk identification ergonomic

Step 2 Determine how serious the problem is(Risk assessment) long term injury

Step 3 Decide how to solve the problem(Risk elimination or control) as per management plan

Step 4 Monitor the problems and solutions(On-going review)

Conclusion: Employees and Employers will receive training in First Aid and their dutiesas part of their conditions of employment and attend courses annually.

y Use own personal equipment, supplied.y Familiarise themselves with First Aid Kit positions as per evacuation plan.

HR.7 Staff/management meetings

Example:We do not currently employ staff. As such, staff meetings are not required at this time.

Monthly performance meetings are to be held between the business coach (KeithDavidson/Suzanne Parker). These meetings will take an overall approach to theoperations of the business, with particular emphasis on cash flow as well as profit andloss.

FINANCIAL PLAN

TablesPricing. Table OneS

ales projection. Table TwoPersonal balance sheet. Table ThreePersonal budget. Table FourStart up costs. Table FiveLoans Table SixCash flow. Table SevenProfit and Loss Statement. Table Eight


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FP.1 Expenses

Example:Cost of Good Sold (from table 7)

Purchase of materials.The only materials this business needs are the oils. we have sourced them from one majorcompany, Essential Oils Ltd. we have another company, Other Oils Pty Ltd as a stand-byand for some less common oils.

FreightFreight charges are included in the invoice. There is not a separate invoice. If wepurchase more than $50 in an order then there are no freight charges.

Production LabourNot applicable to our business as we do not produce the oils ourselves.

Staff Superannuation

Not applicable

OverheadsAdvertising

Quotes have been obtained from printers, newspapers, and promotional item suppliers.These are attached. Further details are shown in the Marketing Plan

Bank charges

Our bank has advised that there is a monthly fee of $10 and state government tax of$00.30

ElectricityWe have estimated the use of electricity for the we room and dedicated office, using floorarea as a guide.

Insuranceswe have obtained 3 quotes from different insurance brokers and have used the one fromThe Best Insurance Co.

Internet

OurInternet provider has given us the figures we used

Leasesare not leasing any equipment

Other

do not have any other expenses


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Postagea small amount for this item.

Professional serviceshave obtained a quote from our accountant and from our business coach.

Rentwill not be claiming part of our mortgage interest as a business expenses as we do notwant to pay Capital Gains Tax when we sell our house

Repairs/replacementsThis will be for items like the towels and table cover.

Salaries/wages.This is not applicable as we do not employ anyone.

Stationary.wehave allowed a small amount for stationary such as receipt books, envelopes and pens.

Superannuation

Not applicable as we do not employ staff.

TelephoneThis will be an expense item as we will be using the telephone extensively to contactclients and suppliers. Mobile phone costs will be high because we will be conductingmobile massage services.

Vehiclewe have estimated the use of both our vehicles and taken into account registration,compulsory third party insurance, fully comprehensive insurance, fuel, servicing,maintenance and automobile association membership.

Equipment purchase

As our Cashflow will be at risk in the first year of business we have put off any purchasesof equipment until the second year. we have everything we need to start the business.

Materials purchase

we have all the materials we need to start the business. we have allocated funds to buymore oils and towels.

Other expenses

Tax liability

we have calculated our tax accurately based on our Net Profit and the partnershipagreement which splits the Net Profit evenly. we used the personal tax rates.


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Personal drawings

In the Personal Budget table we were able to estimate our personal living expenses basedon last years expenses. we are confident that this is reasonably accurate.

FP.2 Sources of Finance (from table 6)

Example: (see ES 4 for this question)To start this venture we are using our savings.

FP.3 Financial Reports

Example:Producing and understanding regular financial reports will assist greatly to better managethe business.

The financial performance of the business will be closely monitored to ensure that goalsand objectives are being met.

Profitability must be ensured, and results of decisions made shall be reflected in thefinancial results.

It is considered vital that timely reports are produced, to enable the business to identifyany potential issues or cashflow deficits in a timely manner.

Cashflow Forecasts Table 7

Example:

InflowIncome is based on our sales. Refer to Table 2 Sales Projection. Sales will be cash fromprivate customers and 7 day accounts for business customers. This is reflected in theinwards cashflow. we estimate that sales will be slow to start with. Our marketingcampaign will be our major focus as we want to become known in the area very quickly.This means our inflow is low for the first 6 months and we will have to watch ourexpenses carefully.

OutflowOutflow is based on our Cost of Goods Sold, Overheads and Other Expenses, such as tax,personal drawings and the capital component of loans.

COGS These are directly related to our sales. The more we sell the higher our COGS.we understand that the lower we can keep the COGS then the higher our profit will be.

Overheads we intend to be very careful about spending money on overheads. Ourpolicy is to buy only what we need. we get at least 3 quotes before we make a decision tobuy. we both have to agree that the overhead is necessary before we purchase any item.


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The lower wecan keep our overheads the more profit we will have. We do acknowledgethat it is necessary to spend money to make money. we need to be sensible.

Cash Flow Balance Table 7

Example:Projected cash flow balances are shown in Table 7.

Close scrutiny is planned at all times to ensure that financial goals are being met and thatthe business remains sustainable as it grows. The cashflow projections as shown in Table7 lead to the belief that the business is sustainable and will be profitable.

Profit & Loss Table 8

Example:Year 1

we are mainly a service business, selling very little product. This is reflected in a Cost ofGoods Sold figure of 15% ofSales, resulting in a very high Gross Profit of 85% in year 1.This is slightly lower than the industry benchmark provided to us by our accountant, andconfirmed by the industry association.

Our Overheads total 32% of sales. The main expenses are advertising, telephone,insurance, loan interest and vehicle costs. This type of business is relatively cheap to runas we operate from home. we are selling our expertise and time, rather than a product.

The Net Profit is 52% ofSales, $13,493. This is slightly below the industry benchmark,mainly because of our Gross Profit figure.

FP.4 Break Even Sales

Example:

Our business is mainly service, but we do have a small Cost of Goods item with the useof the oils.

From Table 8 Profit & Loss Projections, we have calculated the following:-

YEAR 1

Breakeven Sales is Overheads = $8,240GP% 85%

BUSINESS BREAKEVEN SALES = $9,694 per year


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Breakeven sales per week (48 weeks) = $38,18548

= $796 per week

Breakeven per day (5 5day week) = $7965.5

= $145 per day

The average cost of our service is $35 so we would need to do about

4 massages every day to breakeven.

($145 divided by $35)

FP.5 Return On Investment

Net profit divided by the owners equity

Table 8 is where the net profit is.

Owners equity is in Table 5


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ATTACHMENTS

1. RESUMES/RELEVANT QUALIFICATIONS OF KEY PEOPLE, PLEASE INCLUDE A COPY OFQUALIFICATIONS

2. CERTIFICATES/LICENCES SMART LICENSE, INCLUDE THE LIST OF RECOMMENDEDLICENSES FROM SMART LICENSE, AND A STATEMENT STATING WHICH LICENSES YOUREQUIRE AND WHICH ONES YOU DO NOT.

3. BUSINESS NAME REGISTRATION, ORSTATEMENT THAT YOU WILL USE YOUR OWN NAME.4. DOCUMENTATION OF OWNERSHIP STRUCTURE AND/ORPARTNERSHIP AGREEMENT5. COMMERCIAL LEASE AGREEMENTS, COPY OF THE UNSIGNED LEASE OF THE

COMMERCIAL PREMISE.

6. LOCAL GOVERNMENT PERMITS,STATEMENT THAT THERE ANY LOCAL COUNCIL PERMITSREQUIRED FOR YOUR VENTURE. (USUAL WITH COMMERCIAL LEASE)

7. COUNCIL APPROVAL/CONDITIONS LOCAL COUNCIL WORKING FROM HOME SELFASSESSMENT, STATEMENT TO INCLUDE WHY IT IS OK TO WORK FROM HOME FROM THESELF ASSESSMENT.

8. LETTER OF APPROVAL FROM LANDLORD, LETTER FROM THE LANDLORD TO SAY OK TOOPERATE AN OFFICE FROM HOME OR A STATEMENT FROM YOU THAT YOU HAVE SPOKENTO THE LANDLORD AND IT IS OK TO OPERATE THE OFFICE FROM HOME.

9. INSURANCE QUOTE, CONTACT (INSURANCE BROKER). INSURANCE MUST BE IN PLACEWHEN YOU SIGN YOUR NEIS CONTRACT.

10. BLUE CARD, ORSTATEMENT TO SAY THAT YOU WILL NOT BE WORKING WITH CHILDREN.11. LETTER FROM FINANCE COMPANY, APPLICABLE IF A LOAN HAS BEEN SORT.12.

COPY OF CONTACT OR TERMS OF AGREEMENT.

13. ABN/GST, STATEMENT INCLUDING WHAT YOUR ABN NUMBERIS AND IF YOU ARE GOINGTO BE GST COMPLIANT.

14. VEHICLE REGISTRATION, PHOTO COPY OF REGISTRATION15. DRIVERS LICENCE, PHOTOCOPY OF LICENSE, OR PASSPORT OR FORM OF IDENTIFICATION.16. TEST MARKETING RESULTS EG SURVEYS, LETTERS OF SUPPORT, TEST MARKETING

DOLLAR RESULT.

17. PHOTOGRAPHS OF PRODUCTS/SERVICES18.

ADVERTISING QUOTES, PR

ICE FOR YELLOW PAGE

SOR LOCAL NEW

SPAPER.

19. PROMOTIONAL PRODUCTS EG BUSINESS CARD, DRAFT OF ADVERTISEMENT20. MARKET RESEARCH RAW DATA, RESEARCH INFORMATION GATHERED FROM THE NET OR

ANY OTHERSOURCE.

Documents

A How to Business Plan Guide Template 1