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BSBSMB404AUndertake Small

Business Planning

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1.1. Identify purpose of the business plan

1.2. Identify and review the essential components of the business plan

1.3. Identify and document business goals and objectives as a basis for measuring business performance

Learning Points

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2.1. Research resources, legal and compliance requirements, specifically in relation to occupational health and safety (OHS), in accordance with business goals and objectives

2.2. Research market needs, and market size and potential

2.3. Identify sources and costs of finance, from the financial plan, to provide required liquidity and profitability for the business

2.4. Identify methods, from the marketing strategies, to promote the market exposure of the business

2.5. Identify methods/means of production/operation from the production/operations plan to conform with business goals and objectives

2.6. Identify staffing requirements to effectively produce/deliver products/services

2.7. Identify specialist services and sources of advice, where required, and cost in accordance with resources available

Learning Points

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3.1. Identify specific interests and objectives of relevant people and seek and confirm their support of the planned business direction

3.2. Identify and develop risk management strategies according to business goals and objectives, and relevant legal requirements

3.3. Develop contingency plan to address possible areas of non-conformance with the plan

Learning Points

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Modules

Topic Time

So You Need a Business Plan

50 minutes

Developing a Business Plan

50 minutes

Think About the Risks 50 minutes

So You Need a Business Plan

Module 1 –BSBSMB404A Undertake Small Business Planning

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A business plan describes how you will operate your business. Where to start is not a guessing game.

Why a Business Plan is Needed

Plan forAttracting Customers

Plan forSuccess

Plan forProblems

Plan forAchieving

Goals

Plan forCash Flow

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1. Planning still starts and stops at the top2. Start with a strong mission3. Set stretch goals – you should be able to

stretch your goals to fit yourself4. Create an environment that encourages

learning5. Design new roles for planning staff6. Make continuous improvement a way of

life

Six Rules of Planning

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Company Details Mission/Vision

Statement Goals and

Objectives Company

Background Product Description PEST Analysis

Marketing Plan SWOT Analysis Time Lines Organisational

Structure Capital

Requirements Financial

Statements

Elements of a Business Plan

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Strengths Weaknesses

Opportunities Threats

SWOT Analysis

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Political and Legal

Environmental

Social and Cultural Technological

PEST Analysis

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A business needs to describe why it is there and what it wants to achieve. What are you hoping to achieve?

Communicating Your Vision

Vision, Business Goal, Mission Statement

What is important

Purpose

Products and

Services

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“We intend to provide our customers with the best online shopping experience from beginning to end, with a smart, searchable website, easy-to-follow instructions, clear and secure payment methods, and fast, quality delivery.”

Good Vision and Bad Vision "MGM Resorts

International is the leader in entertainment & hospitality--a diverse collection of extraordinary people, distinctive brands and best in class destinations."

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pecific

easurable

ction Focused

ealistic

imely

Start By Writing a Business Goal

SMART

What you want to do

How you know if you have achieved it

Keep to commitments and be time bound

Making it happen

It is possible to achieve it

Consider what makes a good business vision statement and write one for your business. Use the SMART goal method to write it

What is important

Purpose

Products and

Services

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Developing a Business Plan

Module 2 – BSBSMB404AUndertake Small Business Planning

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http://www.smallbusiness.wa.gov.au

http://www.business.gov.au

http://www.safetyline.wa.gov.au/index.html

http://www.commerce.wa.gov.au/labourrelations/content/Employees/Young_Workers/Your_workplace_rights_and_obli.html

http://www.smallbusiness.wa.gov.au/tax-registrations/

Information Resources

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Primary Research is the information you collect directly from a contact.

Secondary information can be from sources such as government statistics, business financial benchmarks, Australian Tax Office.

Market Research

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Customer Demographics? Social Expectations? Cultural Expectations? Market trends? Buying motivations? Detractors? Competitors? …?

Some Questions to Answer in Your Business Plan

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Start-up cost and Ongoing cost? Production cost? Insurance that you must have? Business location (buy, rent, renovate)? Staff wages? GST and other taxes? Utilities? Vehicles and maintenance? Equipment? Travel? Advertising costs? …?

Financial Planning

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What will make customers want to come back?

Why buy the product? Why yours and not a competitor? What would turn people away from the

product? What can you say that a customer wants to

hear? How will you advertise?

Marketing Strategy

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Method of production? Staff required? Specialist services required? How many produced at a time?

◦ Job (single) – Dental treatment, Rolls Royce◦ Batch – Bread, Paints◦ Flow – Soft drinks, computers

Production and Operational Plan

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How many hours of work is required for your business to operate?

How many work actions are required for the business to operate?

Does this mean you need staff? How many? Full time, Part time, Casual, Contractors? What skills do they need? How much do you need to pay them? What are the legal boundaries for you to hire

them?

Staffing Required

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Does setting up and/or operating the business require specialised skills?

What specialist skills are needed? Where will you source specialists? How much will it cost? Are there any other specialist services

which you might consider?◦ HR, Payroll, Accountant, Consultants,

Technologists…

Specialist Services

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Think About the RisksModule 3 – BSBSMB404AUndertake Small Business Planning

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PEST Analysis◦ Political and Legal, Environmental, Social and

Cultural, Technological◦ Identification of risk in operating business in the

market.

Skills assessment◦ What skill levels are weakest and needs to be

improved to minimise risk.

If you need help just ask

How to spot a risk

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Commercial Compliance Legal Financial Health and Safety Environmental Strategic

Operational Service Guarantees Capital Assets

Management Security Customers Stakeholders

Common Areas of Risk

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Identify potential impacts, both negative and positive

Manage impacts to ensure best outcomes Fit risk management into business fuctions Maintain a proactive advantage over risk Consult with others to understand risk in

their roles Implement risk management process

Managing the Risk: Understand the Process

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Opportunity based risk◦ Can have positive or negative outcome◦ Can have short term and long term outcomes◦ Examples include moving to a new location,

acquisition, diversifying product line.

Uncertainty based risk◦ Associated with the unknown and unexpected◦ Usually difficult to control if at all◦ Examples include natural disasters, loss of a vital

supplier, sudden changes in the market.

Types of Risk

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Increased transparency in financial management

Enhanced staff confidence in a secure and safe work environment

Enhanced client assurance in the quality and integrity of a product or service

Protection of assets and the long term viability of the business

Benefits of Risk Management

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The minimum expectation in any business operation MUST be to at least follow the law in all ways

Workplace Health and Safety Fair Trading Legislation Contractual Obligations Insurance Requirements Financial Reporting Requirements …

Risk and Law

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Sustainability management must take into account◦ Legal, Social, Cultural, Supply Expectations◦ Use of resources and maintaining supply◦ Social expectations and responses to resource use◦ Cultural expectations and responses to resource

use◦ Legal requirements governing use of resources◦ Manufacturing effects on surrounding

environment and resources.

Sustainability Management

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What will you do in the event that a risk occurs?

What alternatives can you implement when a risk occurs?

How far do you stretch your resources until its time to cut your losses?

Build Risk Management into everything your business does

Have a Backup Plan

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