The Thousand Rand Challenge Business Plan Template
Description of the business Edit
Cleaning material like Jik, Stasoft, dishwasher, pine, Handy-andy, Vanish, Bubble Bath
What skills are needed to do this? Where is this taught and how much will it cost?
- You must know the product
- Know how to do sales
- Interpersonal skills
What tools or equipment are needed? Where can they be bought, and how much will they cost?
- 2 litre bottles
- 5 litre bottles
How much space is needed to work from?'
Only safe store place
Where will the space be found, and how much will it cost to rent?
The owner is running her busines from her own house. She sell her items once a month at a stall at the All-Pay site
What sort of people will buy the product? Who are they and where do they live?
Housewifes from Saldanha, Vredenburg, Laaiplek. Schools and creches
How much and how often will they buy? Will they come to the shop or will it be necessary to deliver?
- Most of the times once a months. Sometimes 2 times per month
- They will come to the shop
- Will go to some of them
Upstream Businesses Edit
A list of businesses and ideas that provide the services and products that this business needs.
Downstream Businesses Edit
A list of businesses and ideas that this business could provide products for.
What major competitors will attract clients' spending away from the business' products?
- Supa Clean Vredenburg
- Easy Clean Vredenburg
- Other people from Cape Town
- No one from Hopland
- Major retailers like Pick 'n Pay,Clicks, shoprite etc
What prices and products do these companies have?
Jik, Stasoft, Pine, Handy Andy, Dishwaser and bubble bath
- Supa clean 1lt R8 5 lt R14.50
- Easy clean 1 lt R7.5 5lt R17.50
What makes them popular / unpopular?
They are popular because they are cheaper and have labels on their cans They are unpopular because of poor quality
- The big retailers are popular because they offer a variety of good, so a person can do a one stop shopping
- They are unpopular because they are cash and carry and they are also far from the people
- They offer lots of specials which they advertise on newspapers, flyers and shop windows
What do they do to attract customers? Specials? Interesting marketing / advertising?
- They tell people that they are the cheapest
- At stall
- Labels on bottles
Which of the competitors stand out as being particularly good at what they do?
People from Cape Town - cheap prices
- Chain stores, Pick 'n Pay, Clicks, Shoprite
What can be done to stand out against them? What can be done that is more exciting / more interesting?
- Tell people that my product is better because of good quality
- Do more advertising
- My product will have a label to say where to get it
- Buy a hamper and get 1 2lt free
- Will offer a personal and friendly service.
- Will give credit to trustworthy customers
- Will have attractive packaging
- and will deliver for those that want that service
Marketing the business to clients Edit
What sort of people will buy the products and how important is product consistency to them (e.g. must every loaf of bread be identical)?
How seasonal or fashion-dependent are their buying bits (do they buy only in summer, only over Christmas, etc.)?
Whole year the same demand
Do the clients want the products to be the cheapest or the best (low price / low quality or high price / high quality)?
Low price with high quality
How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest?
They buy the products were they can get the best value for their money
- Seeing,touching and smelling (sampling).
- Flyers,newspapers adverts.
Do the clients want the same things sold in the same way, or do they want things to change all the time?
Same things the same way
What can be done to attract the first clients (the most important and most difficult to get)? How much will it cost?
will advertise by giving some of the products. I will give samples to the first 5 or 10 persons
The business inputs and outputs Edit
List all of the inputs (products that are required to produce the products):
Buy products from wholesaler
List all the suppliers for the inputs and their addresses, telephone numbers, and sales terms (cash, 30 days, etc.):
Supa Clean Vredenburg as well as different whole salers local and in Cape Town
List all of your outputs (products created by your business):
Jik, Stasoft, dishwasher, pine, Handy-andy, Vanish, Bubble Bath
What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)?
Do the outputs have a shelf-life? Must they be sold within a specified time limit before they go off / can't be sold? Which ones?
Long shelf life
Setting up the business Edit
List everything that needs to be done to prepare the business to be ready (list everything needed to have as well, both equipment and stock):
Nead a tregter, table, storage place, plastic bags and bottles as well as stock.
How long will it take to get all of these things and how much will they cost to get?
- containers R200
- Labels R100
- Plastic Bags R100
- Stock R600
List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages):
- Salaries R300
- Telephone R100
- Petrol R100
- Water R50
Total amount for fixed costs: R______550_________
How many staff will be needed and how much will each of them be paid (wages must be included in the fixed costs above)?
no staff to be employed
What training will they need, how long will it take and how much will it cost?
The manufacturing or production process Edit
List every step, from start to finish, to produce the product
- Buy stock
- Put labels on bottles and put stock in containers
- Sell to clients
Allocate each of the manufacturing steps to a process and a process to a staff member (e.g. all manufacturing steps A to process 1):
The owner will be responsible for everything
What possible problems may happen during each step of the manufacturing process?
- Credit at suppliers
What solutions can be identified for these problems? How much will they cost and how long will they take to fix?
- Sell only on a cash basis
- Get reliable transport
What is the maintenance program for all the equipment?
What safety requirements are important for production?
How will quality control and client feedback be handled?
Will replace product
Costing and bookkeeping Edit
How many of each of the stock items can reasonably be sold each day (and month)?
50 of each item per month
Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)?
Whole year more or less the same, but more at the end of the year because people do more cleaning.
What sort of pricing strategy will be chosen (cheapest or best)?
Sell at the best price that the clients can pay
What profit margin will be chosen for the products
will depend on product
Write down the cost prices plus the margin for each stock item you will sell, and the selling price
- Stasoft R99 R175
- Handy Andy R99 R175
- Dishwaser R99 R175
- Pine R99 R175
- Vanish R122 R300
- Bubble bath R89 R175
- Jik R69 R175
Is this competitive? Will customers pay this much? Do the margins need to be adjusted? By how much?
Now, set a target. How many items for each product need to be sold on a daily (and monthly) basis to be profitable?
1 5lt of every product per month
Set out the products, costs, margins and selling prices:
R 99 + R 76
= 5 x 175
What trends are included in the projections?
Clients need cleaning material every month
Running the business Edit
What is the process for running the business on a typical day? Who will be responsible for each step? Link this back to the production process.
Will be open from 8H00 till 20H00.
Who will act as backup should the person responsible not be there? What do they need to act as backup?
The owners daughter
What weekly processes need to be performed? Who is responsible, who is backup and what tools are required?
Buying stock and filling bottles with cleaning chemicals
What monthly processes need to be performed? Who is responsible, who is backup and what tools are required?
On a monthly basis
- Check stock
- Paying phone and water
- Buying containers
What is the schedule for training and motivating staff?
What processes are required for maintenance and new product creation? Who is responsible and what tools do they need?
Will get some moderns containers and machines that can fill the containers
Before beginning Edit
List some of the support services available (legal, business and other) that might be needed
Red Door Accountants WCBDC
What major laws concern the business, and which government departments should be called to keep up to date (list phone numbers)?
Related articles Edit
Insert links to articles on Wikipedia or other Wikis that may be useful (such as recipes, legal discussions, accounting articles, and so on)
List links to outside websites that may be useful for anyone starting this business
Business Trials Edit
List your name if you started a business based on this plan, where you started the business, and how you did
Business started by Johanna Maarman in Saldanha area
Links to case histories - you are welcome to develop these and insert them in your personal page (create this by developing a personal profile)