bsb30315 certificate iii micro business operations · pdf filecertificate iii micro business...
Post on 09-Mar-2018
227 Views
Preview:
TRANSCRIPT
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 1
BSB30315
Certificate III
Micro Business
Operations Business Plan Topic Overview
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 2
Table of Contents
1.0 EXECUTIVE SUMMARY ......................................................................... 4
1.1 Business Idea and Opportunity ....................................................................................... 4 1.2 Summary of Products/Services Offered .......................................................................... 4 1.3 Personal and Family Goals ............................................................................................. 4 1.4 Business Goals & KPI's ................................................................................................... 5 1.5 Target Market and Needs ................................................................................................ 5 1.6 Start-up Funding and Cash Flow Requirements ............................................................. 6 1.7 Two (2) Year Financial Projection Summary ................................................................... 6 1.8 Business Viability ............................................................................................................. 7
2.0 LEGAL AND MANAGEMENT PLAN ...................................................... 8
2.1 Commonwealth, State/Territory and Local Government Laws ........................................ 8 2.2 Licences Permits, Restrictions and I.P ............................................................................ 8 2.3 Codes of Practices and Standards .................................................................................. 9 2.4 Workplace Health and Safety .......................................................................................... 9 2.5 Legal Structure ................................................................................................................ 9 2.6 Trading (Business) Name ................................................................................................ 9 2.7 S.W.O.T. Analysis.......................................................................................................... 10 2.8 P.E.S.T Analysis ............................................................................................................ 10 2.9 Key Roles and Responsibilities ..................................................................................... 11 2.10 Qualifications and Personal Skills ............................................................................... 11 2.11 Specialist Services and Advisors................................................................................. 12 2.12 Business Premises ...................................................................................................... 12 2.13 Business Insurance ..................................................................................................... 13 2.14 Business Contracts ...................................................................................................... 13 2.15 Manage Business Compliance .................................................................................... 14 2.16 Taxation ....................................................................................................................... 15 2.17 Cultural and Ethical Policy ........................................................................................... 15
3.0 MARKETING PLAN .............................................................................. 16
3.1 Market Size, Trends and Potential ................................................................................ 16 3.2 Market Research Activities ............................................................................................ 16 3.3 State of the Market ........................................................................................................ 16 3.4 Factors Affecting the Market .......................................................................................... 17 3.5 Target Market ................................................................................................................ 17 3.6 Competitor Analysis ....................................................................................................... 18 3.7 Product/Service ............................................................................................................. 18 3.8 Price ............................................................................................................................... 18 3.9 Place - Distribution Strategy .......................................................................................... 19 3.10 Promotional and Marketing Activities .......................................................................... 19 3.11 Customer Needs .......................................................................................................... 20 3.12 Customer Service Delivery .......................................................................................... 21 3.13 Monitor and Report on Service Delivery ...................................................................... 21 3.14 Develop Business Networks ........................................................................................ 21 3.15 Establish and Maintain Business Relationships .......................................................... 22 3.16 Relationship Promotion ............................................................................................... 22
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 3
4.0 OPERATIONAL PLAN .......................................................................... 24
4.1 Resource Requirements ................................................................................................ 24 4.2 Resource Suppliers ....................................................................................................... 24 4.3 Resource Usage ............................................................................................................ 25 4.4 Resource Maintenance Plan ......................................................................................... 25 4.5 Organising Work Priorities ............................................................................................. 26 4.6 Monitor Work Performance ............................................................................................ 26 4.7 Personal Skill and Development Training ..................................................................... 27 4.8 Monitor and Review Operational Performance ............................................................. 27 4.9 Organisational Policies and Procedures ....................................................................... 28 4.10 Emerging and Changing Technology .......................................................................... 28 4.11 Contingency Planning .................................................................................................. 29 4.12 Risk Management Plan ............................................................................................... 30
5.0 FINANCIAL PLAN ................................................................................. 31
5.1 Personal Budget and Drawings ..................................................................................... 31 5.2 Manage Personal Budget .............................................................................................. 31 5.3 Personal Balance Sheet ................................................................................................ 31 5.4 Establishment Costs and Ongoing Funding .................................................................. 32 5.5 Business Cash Flow Forecast ....................................................................................... 32 5.6 Business Balance Sheet ................................................................................................ 32 5.7 Maintain Daily Financial Records and Ledgers ............................................................. 33 5.8 Monitor Business Profitability ........................................................................................ 33 5.9 Taxation Advice and Planning ....................................................................................... 34
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 4
1.0 Executive Summary
1.1 Business Idea and Opportunity
NOTE: The Executive Summary Chapter is written last, as it's purpose is to
summarise the whole business plan you have compiled. Start writing your
business plan at 2.0 Management and Legal Chapter.
Detail here;
1. Your business concept/idea
2. Why are you going into business? - What is your motive and the opportunity?
3. How did you come up with the idea?
4. What do new customers think about your business concept/idea?
5. What type of immediate competition do you have that may affect your start-
up?
6. State when you anticipate your business will formally start trading.
1.2 Summary of Products/Services Offered
Describe (from a customer's point of view) your main products/services you
are offering.
• If you have many items, just list your product range
• What are the benefits to your customer?
• How does your pricing compare to the market?
1.3 Personal and Family Goals
How will starting a business impact on yourself and family? Can you afford the long
hours and no holidays for a few years?
Discuss the three points below;
1. how will the business meet your own personal needs?
2. how will the business meet your family needs and commitments?
3. how will running a business impact on your family?
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 5
1.4 Business Goals & KPI's
Describe here the main goals you are aiming to achieve for your new business
venture over the next one or two years.
Here is an example of how you can use figures from your business plan.
Finance Goals This could be annual sales targets, net profit targets
Marketing Goals Business awareness, so many new customers over 12
months
Sales Targets To achieve x$ each quarter
Production Output To make X widgets, or complete X jobs per quarter
Minimise expenses To keep to your proposed budget by 5% variance
Customer
Complaints Not to exceed 2 complaints a quarter (yes - it will happen)
Customers Gained To win X clients each quarter
1.5 Target Market and Needs
From your market research, describe here who your client base will be, where
they live and the main reason they will change their current buying patterns and
purchase from you. (i.e. how can you satisfy your client’s needs over your
competitor/s)?
Your target market market may be;
• Domestic
• Industrial
• Retail
• Wholesale
• Commercial
• Rural
• Government
• International
or any combination of the above.
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 6
1.6 Start-up Funding and Cash Flow Requirements
Summarise here your Start-up costs here.
If you require any loans to start your business you need to detail;
• A list of the items being funded
• Who is funding the loan
• How much you are borrowing
• The rate of interest
• Loan repayment amount
• Term of the loan
You do not need to have your loan settled, just provide a copy of the approval advice
in your appendices.
Cash Flow Requirements over the next 12 months.
If your cash flow forecast shows periods of negative cash flow - detail here how you
can cover the shortfalls.
1.7 Two (2) Year Financial Projection Summary
You need to take the numbers from your Finance Tables (summary tab) and
interpret what they mean.
Here you provide a general overview of your business projections for the next 2
years.
E.g.
• Sales in year 1 are $
• Sales in year 2 are $
• Total business operating expense in year 1 is $
• Total business operating expense in year 2 is $
• Net profit in year 1 is $
• Net profit in year 2 is $
• Estimated taxation payable in year 1 is $
• Estimated taxation payable in year 2 is $
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 7
1.8 Business Viability
IMPORTANT: Please answer the following four points as this section is a check
for your NEIS viability
1. Detail the key factors why you believe your business will succeed (sell yourself) 2. Detail the risks - what do you see the main risks to your start-up business to be? 3. With the resources you are putting in the business including your time and energy, do you see the risks and financial returns worth the effort? 4. Financial returns - does the projected net profit for year 1 and 2 cover your living costs?
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 8
2.0 Legal and Management Plan
2.1 Commonwealth, State/Territory and Local Government Laws
Summarise your research findings here and how the following affect your business.
Commonwealth Laws
• National Workplace Health and Safety Act Privacy Act 1988
• Australian Privacy Principals (Privacy Act 1988)
• Equal Employment Opportunity
• Competition and Consumer Act 2010
• Fair Work Act 2009
State/Territory Laws
(Specific to your business from your assignments)
Local Government (Council/Shire) Laws
(Specific to your business from your assignments)
2.2 Licences Permits, Restrictions and I.P
List and describe any regulatory requirements that affect your business? e.g. Council
approvals, health and safety permits, fire permits, operating a business from home,
‘working with children’ card, trade or professional qualifications and the like.
Summarise your research findings here under the following headings.
1. Licences
3. Permits
3. Restrictions
4. Intellectual Property
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 9
2.3 Codes of Practices and Standards
What is the difference between a Code of Practice and a Standard, and do any of
these affect your business?
If so, detail how your business will comply.
2.4 Workplace Health and Safety
Make sure you describe the 5 following points.
1. your main workplace hazard
2. describe how you will keep your workplace safe
3. accident and incident reporting process
4. processes for reviewing your Workplace Health and Safety Plan
5. costs to implement any new safety systems
2.5 Legal Structure
This should cover all the important details about your business such as ownership
and structure.
The four main structures are:
1. sole trader.
2. partnership.
3. private company.
4. and trustee company.
Describe the following 3 points below;
1. Why you have chosen your business structure.
2. Three advantages of your chosen structure.
3. Three disadvantages of your chosen structure.
2.6 Trading (Business) Name
You do not need to register a business name (Trading Name) if you operate a
business venture in your own name.
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 10
The Business Names Act of 1962, (Section 5), says that a business name only, does
not need to be registered if it is the proprietor’s name alone, the moment you add
anything to your name it then needs to be registered.
Describe the 3 following points below;
1. Why are you using the chosen business name?
2. What are some advantages of the business name?
3. What are some disadvantages of the business name?
2.7 S.W.O.T. Analysis
The SWOT analysis is an extremely useful tool for understanding your business and
making decisions for all sorts of situations in your business. SWOT is an acronym for
Strengths, Weaknesses, Opportunities and Threats.
The SWOT analysis comprises of four sections, one for each of the SWOT
headings:
1. Strengths - list what gives you a solid footing in the business and how you
can retain that position
2. Weaknesses - Where can you improve, and what needs to be done?
3. Opportunities - What gaps are available in the market place for you to
capitalise on?
4. Threats - Areas outside of your business you have no control over
Detail your S.W.O.T analysis here to include the 4 points above.
2.8 P.E.S.T Analysis
A PEST analysis considers factors external to your business that may have an
impact on your business which you have no direct control over.
1. Political - State of the nation - stable, new laws on the horizon that could
impact the business.
2. Economic - interest rates, employment trends or exchange rates
3. Social - cultural diversity, values and beliefs
4. Technological - developments you may need to keep up with to remain
competitive.
Detail your P.E.S.T analysis here to include the 4 points above.
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 11
2.9 Key Roles and Responsibilities
Think about managing people and tasks. What is your main role in your business?
Yes we have to "do the work" but we also have to look after our clients, do the books,
taxation, pay the bills, do the banking, chase up money, do marketing and so on.
In a partnership, by defining the key roles between partners (call it a job description)
helps to organise all the important tasks and allocates the responsibility of getting
the key tasks completed in an orderly time frame.
List key areas of your business to consider.
2.10 Qualifications and Personal Skills
Business Owners, consider assessing and matching your personal skills and
attributes to run a business.
Detail your relevant industry experience, formal qualifications or necessary licences
pertinent to your business.
Why are you the right person for this business?
What strengths do you bring to the business? (sell yourself!)
What skills do you need to develop to run a business?
Detail here some examples of your;
1. Financial Skills to run a business
2. General Business Skills
3. Technical Skills for your business venture
4. People skills
and list here your qualifications needed or relevant for this business;
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 12
2.11 Specialist Services and Advisors
Identify who you may obtain professional services or advice from to assist
in helping you in certain areas.
Here are some areas to consider and explain how you will use these services in you
business. (Choose the relevant ones) and how you will benefit by using them.
• Regulations
• Licences
• Permits
• Codes of Practice and Standards.
• Taxation
• Legal advice
• Insurance advice
• Business structure
• Business risk minimisation
• Development of contacts for networks
• Hiring of staff and awards
• New and emerging technology
• New business start-ups advice - (www.ato.gov.au www.business.gov.au)
• Website design
• Graphic design
• Works Safe systems and processes
• Business Compliance
2.12 Business Premises
Where is your business located and what facilities you have? You may wish to
include the business address and a description of your site, the size of your facility,
your equipment, and your lease arrangements. In addition, explain how the location
of your business adds to the success of the business.
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 13
• Is it accessible to customers or your markets?
• What is parking like?
• Is it close to transport?
• Are you a home based business with an office in a back bedroom or even a mobile van service?
• What is the premises’ zoning?
Discuss the three following points;
1. What the advantages of the location are.
2. What the disadvantages of the location are.
3. Do you have an alternate location?
2.13 Business Insurance
Business Insurance is all about protecting the assets of a business, people and its
liabilities.
We suggest you contact an Insurance Broker to discuss your specific needs.
List your;
1. Compulsory Insurances
2. Essential Insurances
3. Desirable Insurances
Detail here what your insurance requirements are and why you have
chosen the particular policy based on benefits or pricing. Discuss who the
insurer is, the type of cover you have chosen, cost of the cover, premium
amount paid (monthly, yearly etc.) and limit of cover.
Ensure your quotes or policies are tabled in the appendices and the cost of insurance
is allowed for in your financial plan.
2.14 Business Contracts
As a small business owner, you will in the course of your normal business activities
enter into legally binding contracts in a number of different areas. A contract is a
legally enforceable agreement between two or more parties.
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 14
As a Small Business, you could have contract relationships with:- Customers,
Suppliers, Landlords, Agents, Distributors, Wholesalers, Retailers, Banks for
plant and equipment finance, Insurance Company, Internet Providers and
Phone Companies, Subcontractors and employees to name a few.
Partnership Agreements are required for N.E.I.S. businesses - please discuss with
your coach.
Detail here the contracts you are likely to enter into and have you sought legal
advice?
2.15 Manage Business Compliance
Red tape! (Also refer to 4.9 - Organisational Policies and Procedures)
When it comes to business management, compliance refers to the business obeying
all of the legal laws and regulations in regard to how they manage the business,
their staff, and their treatment of their customers. Compliance is about making sure
business owners act responsibly.
What internal processes or procedures will you put in place to ensure your
business remains legally compliant?
Here are a few examples to get you thinking;
• When are the business insurance policies due so they do not lapse?
• How can I ensure my taxation is paid on time to avoid penalties?
• How do I keep Licences and Permits current?
• Wages - I am paying the correct amount and under the correct award?
• Health department - is my food handling current practice?
• Fire safety - are my regulations in place and current?
• Workplace Health and Safety - am I compliant?
• Is my Risk Management Plan is adhered to?
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 15
2.16 Taxation
Describe here;
1. Your G.S.T status - are you registering for G.S.T. or not and why?
2. Your A.B.N. status and if already registered, your A.B.N. number.
3. How you will account for your P.A.Y.G.
4. Taxation requirement for keeping of records and files.
5. Business Activity Statement or Instalment Activity Statement.
6. Tax File Number for structures other than a sole trader.
2.17 Cultural and Ethical Policy
Detail here what policies you will implement to promote the culture and ethics within
your business.
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 16
3.0 Marketing Plan
3.1 Market Size, Trends and Potential
From your Market Research Activities, summarise information regarding;
1. How big is your market? Is it just your region, state, country or is it
international?
2. Have there been any changes and/or developments in your market. Identify
and discuss any recent trends and developments?
3. Could there be any projected changes in population or economic growth and
the labour market in your industry?
4. Have there been any recent movements in pricing?
5. Are there likely to be any changes in the availability of resources (ability to
supply your product)?
6. Identify whether the market is growing or in decline.
3.2 Market Research Activities
What primary research did you conduct and detail your findings.
What secondary research did you conduct and detail your findings.
Do you have industry experience you can draw upon?
As a result of your research, have you diversified your business ideas at all?
3.3 State of the Market
What do you know about your market?
1. Are there any new and emerging markets available? If so, document
their opportunities for your business.
2. Comment on any risk to your business the market may expose you to.
3. How will you review trends and developments within your market?
It is important to understand the environment in which you are operating in order to stay ahead of your competitors.
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 17
3.4 Factors Affecting the Market
Many factors can influence a small business in Australia. Discuss here any that may
impact on your business;
• Technology
• Ethical considerations
• Cultural considerations
• Import/Export market
• Pricing
• Exchange rates
• New competitors
and the relevance to your business and business practices.
3.5 Target Market
Your target market is the customer you are consciously marketing your product or
service to.
Do you know who your potential customers are?
• Do they want your product/service?
• Do you know where to find them?
• Do you know how to reach them?
• Do you know which Marketing Activities they prefer/and respond to?
• Do you know how to speak to them in their language?
• Do you know what their expectations of your product/service are?
• Do you know their location or do they prefer to purchase online?
How often will they make a purchase from you?
Describe your target market (customer) here.
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 18
3.6 Competitor Analysis
In today’s world it is rare for a business to have no competitors. What do you know
about yours?
There are two types of competitor – Direct and Indirect.
Direct Competitors are selling the same product or service as you are.
Indirect Competitors are selling a different product offering the same outcome.
Ie: A Massage therapist may have a customer wanting relief from their shoulder
pain.
The massage therapist’s direct competitors are other massage therapists.
The massage therapist’s indirect competitors could be – a physiotherapist, the local
gym, the chemist that sells pain killers etc – all these services offer pain relief which
is the outcome the customer is wanting.
Describe your main competitors here and what advantage you have over
them?
3.7 Product/Service
1. List your products/services (or range) with a brief description of each (1-2
sentences on each) describing the point of difference you are offering and,
2. Describe why will clients buy from you?
3.8 Price
Based on your market research;
1. What feedback did you get on your pricing?
2. How does your pricing compare to what else is in the market place.
If your pricing is too low, will you sell lots but probably go broke as you won't have
sufficient margin to cover your living and business costs? If it is too high, your clients
will go elsewhere looking for a better deal.
Some basic pricing methods are;
1. hourly rate or going rate
2. cost base pricing (costs plus margin to determine market price)
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 19
3. competition based pricing (align your retail price to the market and
competition)
4. demand based pricing
Discuss here why you have chosen your particular pricing options.
3.9 Place - Distribution Strategy
You should include a discussion about how you plan on selling your product or
service and it should outline all of the different people and entities involved in getting
your product into the hands of your customer.
You should explain in detail what type of distribution channels are available to you; -
account representatives, sales people, Internet, delivery services, other companies
that will carry your product. What benefits you will have by choosing them and the
length of time it will take to get your product to your customer.
• Wholesaler
• Agent
• Retailer
• Online
• Direct to the client
• Other
Note: Some products/services may have different distribution methods.
Ensure you:
• describe the methods you will use to sell and distribute your products or
services.
• provide 3 examples of the advantages and disadvantages of the selling methods
chosen. (e.g. direct telephone, direct mail, party plan)
3.10 Promotional and Marketing Activities
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 20
What types of promotion and marketing activities will you implement to profile
your business?
How much money have you set aside for your Marketing Budget? Have you costed
your wish list of marketing activities?
There are lots of ways to promote a business:
• Advertising
• Social Media
• Public Relations
• Networking
• Sponsorship
• Loyalty program
• Trade shows and lots lots more!
Do you have any Merchandise or samples to give to clients to try and have you
allowed for the cost of these?
List and discuss how you intend to promote your business, products and
services to the market.
3.11 Customer Needs
It is important to determine what your customer really wants to purchase and what it
will do for them! How will you handle the sale?
Write a brief sentence or two on the following 4 points.
1. How can you be sure you accurately understand your customers' request?
2. How can you determine your service delivery priorities in assessing your
customers' immediate needs?
3. What way could you explain to a customer their available choices?
4. If you are not able to assist a customer with their needs, what options could
you suggest to them?
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 21
3.12 Customer Service Delivery
This topic is to get you to think about how you will deal with serving customers and
meeting their needs.
Write a short sentence or two on the following 5 points.
How will you;
1. courteously handle customer complaints.
2. provide assistance to customers with specific needs such as vision, mobility
issues, dietary requirements.
3. provide a prompt service to customers to meet their identified needs.
4. maintain appropriate rapport with customers during and after the sale
5. promote or sell further products/services to a client
3.13 Monitor and Report on Service Delivery
This topic is to get you thinking about how you can review your sale processes and
record any feedback that will enable you to improve your customers experience in
buying from you.
Write a short sentence or two on the following 3 issues;
1. How you can obtain client feedback to gauge your customer satisfaction with the
delivery of your product/service?
2. How, using feedback you can enhance the quality of your service delivery?
3. What measures can you implement to monitor your service delivery and the
satisfaction of your clients?
3.14 Develop Business Networks
Business Networks are an important form of Marketing as they can refer clients to
your business without you consistently looking for new leads.
Write a short sentence or two on the following 5 points
1. What are the benefits of participating in business or professional networks?
2. How will you initiate developing new business relationships and contacts?
3. What information will you provide to new network contacts?
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 22
4. What are the costs of joining your selected business network?
5. What specialist services could you seek to help build business relationships?
6. How will you promote your business via your networks?
3.15 Establish and Maintain Business Relationships
Once you have established your business networks, it is important to work on your
new relationships to help build your business presence.
Write a short sentence or two on the following 7 points.
1. What records will you keep of your business contacts and how will you store
this data?
2. How often are you prepared to attend networking functions?
3. What information will you present to networking members?
4. During a networking event, what questions could you ask members for the
first time?
5. What information would you aim to collect from each member at an event?
6. How can you pass onto your network that you conduct high standards of
business practice and in so doing, build on and maintain the trust of your new
contacts?
7. If you had a difficult contact in your new network who was unfavourable to
you and your business, what strategies could you adopt to encourage a
positive outcome?
3.16 Relationship Promotion
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 23
This topic is about using and communicating to your new network/s to promote your
business and any opportunities you may be able to offer fellow members and
obtaining feedback as to how they view your business.
Write a short sentence or two on the following 5 points.
1. What strategies you can use to promote relationships within your network?
2. How you can obtain feedback from your network to improve promotional
activities and business opportunities?
3. What medium/s or presentation skills can you use to communicate to
members of your network?
4. What message or business image (profile) do you want to portray?
5. How will you keep track of upcoming events?
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 24
4.0 Operational Plan
4.1 Resource Requirements
Business resources range from the physical items to your time. Give some thought
as to identifying what you need to purchase in order to commence your business and
keep the business going.
Write a sentence or two on the following.
1. What resources (list them) do you need to get your business started?
2. Do you need to purchase them or do you already own them?
3. What resources do you expect to purchase to keep the business running?
4. Describe what quantities and the quality of resource you need and finally
5. How does the price compare between different suppliers?
6. What resources do you already own that you are contributing to the
business?
4.2 Resource Suppliers
Establishing relationships with suppliers is an important part of running a
business. If you are a mechanic and need a part in a hurry, or a builder who needs
supplies dropped off on site at short notice, suppliers and their representatives
become a key part of your business.
Write a sentence or two on the following;
1. What options do you have in selecting suppliers for your business?
2. What favourable terms of trade or discounts can you achieve from your
suppliers?
3. What type of service and support do you expect from your suppliers?
4. Remembering if you rely on just one supplier and they go out of business,
where does that leave your business and what is your risk?
5. Describe how you will establish relationships with your suppliers and key
people.
6. How accessible is your supplier?
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 25
4.3 Resource Usage
How will you manage your businesses stock levels and requirements? Remember
too much stock on hand is money that could be in the bank and no stock is a sale
lost!
Write a sentence or two on the following;
1. Checking procedures for monitoring receiving goods in from suppliers
2. Recording quantities used
3. Monitoring the quality of stock received
4. Re-order systems to replace stock used
5. Detail the records you will keep for stock orders and usage.
4.4 Resource Maintenance Plan
Keeping your business assets in good operational order will decrease the risk of
down time as well as protect the safety of workers.
Describe here what your business requirements are and implement a timeline to
undertake the appropriate maintenance for support, repair and replacement of
business machinery, equipment and software.
Here are a few pointers to get you under way;
• plant and equipment service as per manufactures warranties
• vehicle servicing
• computer defragging and system clean-ups
• software updates
• firewalls and anti-virus updates.
• machinery replacement
• sharpening of tools
• cleaning of food machinery
• cleaning of business premises and rubbish removal
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 26
4.5 Organising Work Priorities
This topic is about having clear goals for your business, arranging and scheduling
tasks in the most effective manner as well developing a contingency plan to ensure
your business continues to operate in case of sickness or unavailability of key staff.
Write a short sentence or two on the following 4 points.
1. Your business goals, objectives and KPI's (Key Performance Indicators) that
are realistic and achievable.
2. How you will prioritise your main tasks to complete and what is an acceptable
time frame for your business.
3. In case of sickness or accident, what are your contingency plans to ensure
the tasks are completed as determined
4. how you will manage the scheduling and completions of tasks. (Use of
electronic dairies, Gantt charts etc.)
4.6 Monitor Work Performance
How do you know you are making the most of your time and working efficiently? How
can you identify areas for improvement?
Describe here how you can;
1. Through self assessment, monitor and adjust your personal work
performance to ensure KPI's are achieved.
2. Obtain feedback on your work performance from work colleagues or
clients
3. Identify changes in the quality of your products/services delivery or the
resources being used and if there was a significant variation what actions
could you take to rectify the situation?
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 27
4.7 Personal Skill and Development Training
This section is about addressing how you keep your skills up to date, given the ever
increasing need for training and skills to undertake jobs.
As a business owner and feedback from clients, you may need to
consider soft business skills training or professional development.
Discuss here;
1. what skill gaps have you identified to work efficiently?
2. where can you access such training for your needs?
3. and how will you benefit from such training?
4. what records will you keep to record your professional opportunities and
training?
Finally discuss here;
1. What measures you can take to avoid stress in the workplace
2. What are some indicators of stress in the workplace
4.8 Monitor and Review Operational Performance
Depending on your business type, you will need to analyse your business
activities against your projected results to see how well or poorly you are
travelling. Here are some ideas to help you monitor your performance.
Describe here how you will monitor your key areas of business performance
for the following;
• Customer service - Use feedback from customers
• Quality of product - Complaints, returns and feedback from customers
• Financial progress - Check you sales, gross and net profit margins,
operating expenses and even debt levels.
• Production outputs - wastage, time taken to complete tasks
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 28
• Marketing performance - the number of products sold or customers gained
or lost
• Personnel - staff turnover, cost to budgeted expenses.
• Business Compliance - licence, permits, insurance and more do not lapse.
4.9 Organisational Policies and Procedures
You have probably worked for larger organisations that have detailed manuals. We
are not saying that you have to sit down and write detailed policy and procedure
manuals for each topic below.
What we want you to think about for your new venture is to implement policies and
procedures into your timeline or yearly calendar and to be aware of your legal
obligations as a business owner.
Here are some key responsibilities to consider;
• Ethical and Cultural requirements
• Workplace Health and Safety policies procedures
• Risk Management policies and procedures
• Procedures to ensure the business is compliant with relevant legislation,
regulations, codes of practice and standards.
• Resources control - usage and re-order of stock
• Asset Maintenance plans
• Staff training records
• Taxation compliance
• Customer service policy
• Terms of trade and refund policy
• Complaints procedure
4.10 Emerging and Changing Technology
Over recent years, there have been huge changes in how we communicate with each
other and how we store and access information. This has seen changes in the way
that we do business, pay our bills, conduct banking, purchase everyday items and
organise our day to day lives.
We now want to be in touch with the world at all times and we want the world to be in
touch with us. We want to know what has happened the instant that it happens.
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 29
Detail here;
1. How can changing technology, including e-commerce impact on your
business?
2. What are clients wanting by way of technology in your industry sector?
3. How can technology benefit your business operation? - Give 2 examples.
4.11 Contingency Planning
It does not matter how well you run your business, Murphy's Law dictates that at
some point in time you will need to cope with an unanticipated event.
This may come in the form of;
• A computer crash
• Personal health or injury as well as staff or contractors not turning up for work
• A key supplier closing down
• Machinery or vehicle break-down
• Cash-flow dries up due to not getting paid quickly enough
• Fire, flood or acts of nature
You need to consider the possibility of the occurrence and think through the options
for a back-up plan with the aim of keeping your business running with the least
possible interruption to customers.
Detail your contingency plan/s options here as to how you will keep the
business running in the event of three (3) of the above events happening.
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 30
4.12 Risk Management Plan
Make sure you describe;
• your main business risks and rank their probability of happening
• how you will prevent or minimise your risks
• who is responsible for implementing and managing your Risk Management Plan
• processes for reviewing your Risk Management Plan
• costs of implementing and maintaining your Risk Management Plan
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 31
5.0 Financial Plan
5.1 Personal Budget and Drawings
Detail from your Personal Budget (Drawings) for the first 12 and 24 months;
1. the estimated drawings you will require from the business.
2. is this amount sufficient to live on?
3. are there any periods of negative cash flow where you may need bank help?
4. are there any periods of positive cash flow where you may be able to invest
funds?
5.2 Manage Personal Budget
Business revenue and funds that become available for you to live on can vary from
month to month. For example, some months you could exceed your budget and the
business is unable to provide extra funds, other months you may be flush with funds.
Describe here:
1. How you will compare your actual figures to your budget?
2. How can you best utilise surplus funds to meet your financial goals?
3. How can you best use external finance as needed to meet your financial
goals?
5.3 Personal Balance Sheet
You need to summarise your Personal Balance Sheet from your finance tables.
EQUITY (net worth)
(Your) Assets less Liabilities and Equity
Also describe here;
any personal assets you will be transferring to the business (value).
capacity to fund and support a business start up or start up loan.
available funds to keep the business trading during the start up phase
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 32
5.4 Establishment Costs and Ongoing Funding
Based on your financial projections, please detail;
the business costs to commence the business before day one.
the estimated funding required to be injected (if any) to keep the business running
Also, if funds are need by the business to keep the business running.
• Do have your own surplus funds you can inject (or loan) the business? or
• if borrowings are needed - please state repayment amounts, rate and term of
the contract.
5.5 Business Cash Flow Forecast
Please detail the following points;
1. Show value of projected sales over the first 12 and 24 months
2. Break down to product range (i.e. how much income you will receive from each
main product range over the two years)
3. Detail the businesses main monthly fixed costs
4. Detail the businesses main monthly variable costs
5. Detail any months of negative cash flow
6. Have you allowed for seasonality and perhaps low sales in the slow start up
phase?
7. If you are unable to meet your current business liabilities, identify a strategy that
will allow you to satisfy your financial obligations.
5.6 Business Balance Sheet
For this topic you need to look at your finance tables and your start-up and end of
year one balance sheets and compare the difference and determine the change
in equity.
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 33
1. Comment on Start-up Balance Sheet details
2. Comment on End of year 1 Balance Sheet details (What has changed over
the first 12 months?)
3. Change in equity - comment here as to whether your equity is better after
one year of trading or has it declined since your start-up?
5.7 Maintain Daily Financial Records and Ledgers
Detail here how you will;
1. record your monthly income and expenditure items.
2. issue invoices
3. issue receipts for payments received
4. check your bank statement to your cash books for discrepancies
5. account for your GST and taxation obligations
6. tally the end of day sales
5. conduct your banking
Finally,
How will you record and monitor your accounts payable?
How will you record and monitor your accounts receivable?
5.8 Monitor Business Profitability
Being in business is also about sitting back and checking the performance of the
business over time. It is important to know who owes your business money and who
your business owes money to. Equally important is the ability to make sure your
efforts are getting you the best financial return, alter all it is not much fun to work 40
hours a week and after 12 months, realise that from the $80,000 the business turned
over, you only made $10,000 for the family.
Please address the following 5 points here;
Cert III Business Plan Topic Overview and checklist - V2 7.4.2016 34
1. How will you monitor and compare your equity at beginning and end of a year to
estimate your business performance?
2. How will you monitor and assess the financial viability of your business after the
first 12 months?
3. How will you monitor your monthly sales and business expenses?
4. If you are selling goods, how will you monitor your mark-up or margins are
sufficient?
5. How can you monitor your working capital each month?
5.9 Taxation Advice and Planning
Who will you seek professional advice from and how will you manage your;
1. GST, BAS or IAS lodging
2. Future Cash Flow Requirements
3. Business assets that you can claim depreciation on
4. Business expenses that may be tax deductible
5. Provision for Tax Liability
6. Business taxation returns
7. Business expenses that have a personal use percentage
8. Asset register
9. Record keeping systems
10. Identify income that is taxable
top related