Sample Business Plan-4

8/9/2019 Sample Business Plan-4

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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

Page 1 of 17. June 2010 l Business Plan
http://plansandchecklists.business.vic.gov.au/http://plansandchecklists.business.vic.gov.au/


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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

http://www.business.vic.gov.au/BUSVIC/STANDARD/1001/PC_60731.htmlhttp://www.business.vic.gov.au/BUSVIC/STANDARD/1001/PC_60731.html


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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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Documents

Sample Business Plan-4