Financial Feasibility & Small Business for Professionals Business Plan Paper Read the instruction carefully and answer the question that needs to be answer

Financial Feasibility & Small Business for Professionals Business Plan Paper Read the instruction carefully and answer the question that needs to be answer only. Reference it.Prepare a business plan for a brand new business your group is starting here in Adelaide. The business idea does not need to be new, BUT the business must be new, that is you may not purchase an existing business, you must have at least one new concept in your business that others do not have and only your group may contribute capital to the business (no ‘silent’ partners). The attached file provides the structure (and some hints on what to do) you MUST follow exactly.Only some part of the business plan, not all parts.The business is event planner. Our business is Event Planner.
This is the major assignment for the course where you prepare a business plan for a brand
new business your group is starting here in Adelaide. The business idea does not need to be
new, BUT the business must be new, that is you may not purchase an existing business, you
must have at least one new concept in your business that others do not have and only
your group may contribute capital to the business (no ‘silent’ partners). The attached file
provides the structure (and some hints on what to do) you MUST follow to receive a grade
for your assignment (Please note, especially, the referencing requirements for your SWOT
analysis). The structure of the plan is unique to this course. Alternative structures (that is,
those provided by internet websites, etc.) will receive a mark of zero..
Only answer this part for both sections:
Section A:
Personal objectives
Financial Feasibility
Section B:
Executive summary
Goals
Operations:
Facilities
Location
Equipment
People
To avoid plagiarism, any textual and internet references must be clearly declared and
referenced in an appendix to the Plan – Harvard Referencing style.
The Business Outline as available on the course website must be rigidly followed.
Alternative formats will not be accepted.
Some additional material
Some additional material
Finding data for both the concepts report and the major assignment does require quite a
bit of research
The major sites for getting general information are the Australian Bureau of Statistics
(ABS) and the Australian Taxation Office (ATO)
To find the actual business you are interested may be difficult, as both organisations
“hide” any data that may identify any particular business.
However, the ABS follow a classification system referred to as ANZSIC for which there is
a booklet (actually a book) that provides how things are summarised. The ANZSIC
system is very hierarchical, but it can be a little difficult to follow. Attached is an
example of finding where an accounting practice may fit (see below).
The ATO use the same classification system but provide slightly different data.
Neither of them make it easy!
Some links
Finding Accounting Services
ANZSIC classifications
Taxation statistics for companies by industry
Taxation statistics for partnerships by industry
Taxation statistics for all business by selected industries
The ATO also offer an app if you are more comfortable with that
ABS selected data by broad (and sub) industry classification
ABS data on the number of businesses (including by local government area)
ABS data on household expenditure
ABS data on household income
The ABS also on occasions undertake special reports on selected industries, for
example Health
Small Business for Professionals
Business Plan Requirements
Your business is a new business that is being developed by the three team members in
Adelaide, SA. The team members are the only people to provide equity to the business.
Introduction
A business plan needs to be written for the target audience that will be reading
it. Therefore there is no general business plan, but outlines for the likely
readers of the plan. If you are writing a plan to be read by a financier it is
necessary to ‘sell’ the concept of the business and the need for money within
the first page of the executive summary. As most small businesses will not
have sufficient uniqueness on offer for a financier (or bank), and statistics
indicate start ups are normally funded by the owner or family from their own
funds, we will presuppose that the plan is to be written for the Small Business
Owner-Manager (SBOM). The SBOM will use the plan as a guiding document
for the establishment and running of the business for the first few years of the
new business’s life. The plan can then be used as the basis for any new
submission for funding in the future.
Remember: Without uniqueness in product / service / approach or if you do not
have high value assets that can be pledged as security it is unlikely that a
finance institution will finance a first time SBOM with a start up small business.
Therefore, this business plan outline focuses on developing the requirements of
the business so that you may determine how you should proceed.
Description
Page
SECTION A ………………………………………………………………………………………………………………..2
Personal Objectives ………………………………………………………………………………………………….2
Financial Feasibility …………………………………………………………………………………………………..2
SECTION B ………………………………………………………………………………………………………………..3
Executive Summary ………………………………………………………………………………………………….3
Business Concept …………………………………………………………………………………………………….3
Business Objectives ………………………………………………………………………………………………….3
Strategies ………………………………………………………………………………………………………………..3
Goals ………………………………………………………………………………………………………………………4
Marketing ………………………………………………………………………………………………………………..4
The product or service ……………………………………………………………………………………………4
Positioning ……………………………………………………………………………………………………………4
Sales Forecasts …………………………………………………………………………………………………….5
Operations ……………………………………………………………………………………………………………….5
Facilities ……………………………………………………………………………………………………………….5
Location ……………………………………………………………………………………………………………….5
Equipment ……………………………………………………………………………………………………………5
People …………………………………………………………………………………………………………………5
Financial Management ………………………………………………………………………………………………6
Conclusion ………………………………………………………………………………………………………………7
Appendices ……………………………………………………………………………………………………………..8
SWOT Analysis …………………………………………………………………………………………………….8
The Basic Assumptions …………………………………………………………………………………………….9
Initial Funds ……………………………………………………………………………………………………………..9
Proforma Profit & Loss report ………………………………………………………………………………. 10
Proforma Cash Budget (flow) report (receipts and disbursements) …………………………… 11
Proforma Balance Sheet report ……………………………………………………………………………. 11
Research ……………………………………………………………………………………………………………… 13
FINAL WORD ON ASSESSMENT ……………………………………………………………………………… 13
Small Business for Professionals BUSS 2040
Business Plan Template For A Start Up Business
SECTION A
This section has been specifically included for students preparing their assignment as part of
the course Small Business for Professionals. Generally, a section such as this would not be
included with a plan prepared in the commercial world. However, undertaking the following
tasks should be performed as part of any preparation for a business venture.
Therefore, as part of the assignment this section must be included in your final document.
Personal Objectives
It is important that you undertake this at the beginning of your plan preparation to ensure that
the business you intend to start fits with your own personal desires and goals.
Remember this section is devoted to your personal attributes and should not necessarily
relate to any business venture at all. It is here that desires such as early retirement can be
expressed. If this is a desire/goal then it would be appropriate that the business venture would
have to generate sufficient income to allow the owner to retire early. With that there would be
the added need for the owner (you) to either have an extremely profitable product or be
prepared to work very long hours (to keep costs to a minimum) to achieve your desires.
Set out what it is you wish to achieve, preferably some time in the future, say 10 years.
Include in this analysis the areas that you believe you are best at. It is likely that the business
will need some of your specific strengths just to survive.
Once you have established your own personal objectives then it may be possible to identify
the ‘right’ business for you. It is from here your business will start. Do not try to determine your
business then decide on your Personal Objectives. Your document will read that it is a ‘fake’.
Financial Feasibility
Utilise the information contained in the notes on determining owner’s reward and determining
financial feasibility of the concept. The Concepts Report handout dealing with this section
may also be useful. Establish the financial viability and owner’s reward criteria for the
successful operation of the business venture you are interested in starting up. Present the
data and calculations in the form as shown in the Concepts Report handout and as discussed
in class.
Recognise that external research is necessary here to determine general industry
performance standards as well as demographic data.
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Small Business for Professionals BUSS 2040
Business Plan Template For A Start Up Business
SECTION B
Executive Summary
The Executive Summary should be a one (maybe two) page summary of everything that you
wish to detail in the main area of your plan.
It is important to remember that this summary is what is referred to as your ‘selling document’.
You must in this area of your document convince the reader that your plan is:
1. Worth reading
2. Is a great opportunity
3. Is well thought out
4. States clearly any funding requirements (if any), to what purpose the money is to be put
and how you intend to repay the money.
If you are unable to ‘enthuse’ the reader you run the risk of having your report being
left unread. (For the purposes of this assignment the entire document will be read, but a
sizeable allowance of the marks will be allocated to this area).
Business Concept
Outline the concept you wish to employ in developing your business. This is the ‘thumb nail’
of your business and it should include the major selling features that are going to give your
business the edge in the market place. A very brief description of the main product or service
highlighting the product’s major selling feature is beneficial. The main aspect here is to
continue gaining the reader’s attention and to promote the reasons why people will do
business with you. It is worthwhile including your Mission and Vision in this section.
Business Objectives
Based on your Personal Objectives and the business concept determine what it is the
business must do to be successful in your mind in say, again, 10 years time. Success is an
extremely personal thing so it does not necessarily mean that the business has to grow from
humble beginnings to be the largest of its type in Australia. However, for you to be aware of
how you have performed the Objectives should follow the S.M.A.R.T. methodology.
Answer simple questions as to the type of business you would really like to have. Does this fit
with your personal ambitions (for example: if a personal desire is to have a lot of leisure time
will the business allow this?)
The answers to some of your questions in this section will assist in reviewing your strengths
and weaknesses, which need to be included in your SWOT analysis in the appendices
section to the report.
Strategies
This is the section where you can set out showing the methods of the how, who, when,
where, why and what of your business.
Combine the business objectives you have set and your SWOT analysis (detailed in an
appendix) to develop your strategies for delivering your goals. Many writers of plans forget
that they have just identified various SWOTs, yet totally ignore them when preparing
strategies.
The object of this area is to broadly outline the methods by which you will go about building
your business. For example, if you have identified in your opportunities that you will only be
able to sell your services to a very select group of individuals, set out the method by which
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Small Business for Professionals BUSS 2040
Business Plan Template For A Start Up Business
you will ‘go after’ them, in other words how will you achieve your objective. Another important
facet of this area is to set down when it is you wish your strategy to ‘bear some fruit’, that is,
to achieve your goal. Remember you not only need a method but also an endpoint and a
timeframe.
Do not forget that you are ‘selling’ this document. Therefore, if you have identified that you
have a weakness in marketing, but your objective/goal is to achieve a specific market
penetration you need to develop a strategy to overcome this weakness. Remember the total
document must ‘hang’ together.
Goals
Identify three or four goals that you wish to meet within the next twelve months.
Remember your business objectives are long term. Your strategies are how you are going to
achieve your objectives, whilst your goals are the milestones you will achieve along the way.
For this assessment, your goals are 12 months or less.
Marketing
The marketing section within a business plan is designed for the business as a whole, while
not forgetting that your product or service is part of your business. Take careful note of the
lectures and references for the Marketing section of the course.
The product or service
A detailed description of the product(s) or service(s) you wish to provide is essential,
especially any aspect that makes it unique. This should not be a reproduction of your
business venture as the business may incorporate many products or services thereby
requiring a different emphasis and explanation of each element. That said, your product or
service must fit within the concept for the business.
You should highlight the service’s strengths (refer to your SWOT). The strengths do not have
to be ‘earth shattering’. For example, I know of a hotel that required its bar staff to provide a
regular customer with the known beverage of choice as soon as that customer approached
the bar, without the customer needing to ask – this became a great selling point of the hotel to
regular patrons.
Positioning
The 4 P’s of Marketing (Product, Price, Promotion and Place) must be reviewed and detailed
here. Make certain that they link with your business concept, objectives and strategies. If they
don’t, go back and rework either this section or your overall objectives, etc.
Remember, if you want to deliver a high quality service, everything you do must be high
quality and it is likely your price will be high too. Be aware though that without a ‘track record’
or profile it will be harder to find sufficient customers in the early days to pay your way. (This
is relevant for your financials.)
It is here, however that research is definitely required. Recognise that the results you learn
from your research will be for organisations that have been running for some time and you will
have to factor in some amount for the fact that you are preparing a ‘start up’ business. That is,
can you achieve 100% of your anticipated market share in the first month or even the first
twelve months?
Description of the industry
Market Analysis
Identify your target market
Demographic / geographic features of target market
Size of target market (projected volume, revenue)
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Small Business for Professionals BUSS 2040
Business Plan Template For A Start Up Business
Sales Forecasts
Based on the research you have prepared you will be able to determine your unit sales
forecast and anticipated selling prices. Compare the projected sales values with your
feasibility estimate you calculated at the start. Do the numbers correlate, is it worthwhile to
proceed, do you need to change your sights, do you need to revisit some of the logic, etc?
This is the start of the ‘numbers’ and all of the financials will flow from this area. Make
sure you have sufficient background information to support what it is you are stating here.
Operations
This tells the reader how you are going to run the business. Include here how you
contemplate structuring the organisation. Answer questions such as, will it be just the three
people (owners) or will you require casual staff to assist in peak periods, or even permanent
staff. It is best to include an organisation chart(s), say one for start up and one for in five
years’ time. You do not need to put names in except for yourselves, just the positions you
think will need filling. Refer to your SWOT analysis to determine where the skills are lacking,
explain how you will overcome the shortfall or conversely utilise the strengths. The
organisation is likely to need more people if you intend growing the business. Remember
though, you cannot have a large structure if you cannot afford it – check the financials.
Facilities
You need to decide what type of facility is desirable for the type of business you wish to
establish. Certain businesses can be run from home, others require specialised
environments within which to operate. Unless you are clear on the type of facility unwanted
costs can be incurred. This definition needs to look at infrastructure (for example
electricity, gas, special building needs, etc.) to assist you in determining the costs of
setting up. The cost estimates will be critical in analysing your financing needs.
Location
As they say in the Real Estate industry everything is location, location, location. If you
have the type of business requiring passing traffic situating yourself in a back street will not
be advantageous to the business.
However, be aware that high profile locations will cost more. The location of the business
is important not only from the marketing perspective but it is also the access and
operational requirements the business may need that will impact on your decision.
It may be possible to remain in the same location from day 1 or because of finance
restrictions you may decide to start small and change premises at a later date. Any
decision here will impact on the financing needs of you, the owner.
Equipment
What equipment do you need, minimum these days is likely to be a phone, a fax machine,
computer, a printer, a desk, a chair and some software. Build on the list – estimate the
costs.
All the above will assist in preparing your financial forecasts, but most of all it gives you the
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