The Thousand Rand Challenge Business Plan Template
This document provides a template of headings for presenting any business idea. The objective is to produce a step-by-step tool that illustrates every step of the business creation process. It should be possible, by following the information, to produce a viable business.
All text in italics should be deleted (including these introductory paragraphs) for use as a template on newly created business idea pages. Please ensure that the new page you're creating really is a new idea. Check the front page for a current list of businesses, or perform a search.
This heading area should contain a brief outline of the nature of the business - change the heading at the top to list the type of business - e.g. Fish and Chips Frying
Description of the business Edit
Within each sub-heading are a series of questions that require detailed answers. Simply fill in your commentary beneath the headings. Note that these headings and the methodology are here, partly to be pedantic, but mostly to ensure a consistent approach across a number of unrelated businesses. It makes searching for information far easier if you know where to start.
What exactly is it that is going to be sold or done? - I WOULD LIKE TO BUY &THEN SELL COLD MEAT TO THE PUBLIC(HAM,COCKTAIL SAUSAGE, VIENNAS & RUSSIANS) Place your research into the business under each of the bold headings and delete the text in italics.
What skills are needed to do this? Where is this taught and how much will it cost? - CUSTOMER SERVICE SKILLS
What tools or equipment are needed? Where can they be bought, and how much will they cost? - FRIDGE OR FREEZER TO STORE GOODS & SCALE TO MEASURE MEAT. -How much space is needed to work from?
Where will the space be found, and how much will it cost to rent? - I WILL WORK FROM HOME. NO RENT PAID
What sort of people will buy the product? Who are they and where do they live? - EVERY KIND OF PEOPLE, ESPECIALLY THOSE WHO HAVE REGULAR COCTAIL PARTIES, LIVING IN PARKDENE
How much and how often will they buy? Will they come to the shop or will it be necessary to deliver?
-DAILY,BUT ON REQUEST - I TAKE ORDERS AND STATE THAT THE CLIENT IS RESPONSIBLE FOR COLLECTION OR DELIVERY OF THE ORDER
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? - WATSON BUTCHERY IN TOWN
What prices and products do these companies have? - THEIR PRICES ARE VERY AFFORDABLE & THEY SELL IN BULK
What makes them popular / unpopular? - POPULAR - AFFORDABLE PRICE - UNPOPULAR - FAR FROM THE LOCAL COMMUNITY
What do they do to attract customers? Specials? Interesting marketing / advertising? - ADVERTISE IN LOCAL NEWSPAPER DISTRIBUTES PAMPLETS IN THE COMMUNITY
Which of the competitors stand out as being particularly good at what they do?
- WATSON BUTCHERY What can be done to stand out against them? What can be done that is more exciting / more interesting? - IT WILL BE AFFORDABLE, IN THE LOCAL COMMUNITY, & PROVIDE A DELIVERY 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)? -ALL KINDS OF PEOPLE, SIZE OR WEIGHT OF PRODUCT SHOULD BE CONSISTENT IF PRICE STAYS THE SAME. How seasonal or fashion-dependent are their buying habits (do they buy only in summer, only over Christmas, etc.)? - TRACKSUITS SELL THROUGHOUT THE YEAR BUT ESPECIALLY IN WINTER
Do the clients want the products to be the cheapest or the best (low price / low quality or high price / high quality)? - THEY ARE WILLING TO PAY AS LONG AS THE QUALITY IS GOOD
How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest? - I`LL MAKE SAMPLES AND SHOW IT AROUND. WORD OF MONTH WILL BE USED AS A METHOD FOR ADVERTISING
Do the clients want the same things sold in the same way, or do they want things to change all the time? -
What can be done to attract the first clients (the most important and most difficult to get)? How much will it cost? - DOOR TO DOOR ADVERTISING
The business inputs and outputs Edit
List all of the inputs (products that are required to produce the products): - I BUY & SELL COLD MEAT SO ALL INPUT IS THE PACKAGING WHICH IS PLASTIC BAGS OR DING WRAPS List all the suppliers for the inputs and their addresses, telephone numbers, and sales terms (cash, 30 days, etc.):
List all of your outputs (products created by your business): - HAM, VIENNAS, RUSSIALS, COCTAIL SAUSAGES, POLONY
What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)? - HAM@ R20.0 PER BLOCK = R6 PROFIT - POLONY @ R12.00 PER ROLL = R4 PROFIT - SAUSAGES & VIENNAS @ R16.00 PER PACK= R6 PROFIT - RUSSIANS @ R25.00 PER PACK = R6.00 PROFIT
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? - ALL COLD MEATS COULD HAVE A SHELF LIFE OF ABOUT ONE TWO WEEKS ESPECIALLY HAM & POLONY
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):
- REGISTER AT EDEN MUNICIPALITY - BUY STOCK - PACK STOCK
How long will it take to get all of these things and how much will they cost to get? - REGISTRATION (FREE) 2 WEEKS - BUY 1 DAY R300 - PACK 1 DAY R100.00 FOR DING WRAP & PACKETS
List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages): - TRANSPORT TO SUPPLIER =R50.00 - ELECTRICITY & FOR FREEZER R100.00
Total amount for fixed costs: R150.00
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 What training will they need, how long will it take and how much will it cost? - THEY HAVE THE NECESSARY TRAINING
The manufacturing or production process Edit
List every step, from start to finish, to produce the product - BUY STOCK FROM SUPPLIER - PACKAGING - 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): - I AM RESPONSIBLE FOR ALL THE STEPS IN THE MANUFACTURING PROCESS What possible problems may happen during each step of the manufacturing process? - THE FREEZER MAY BREAK - NO STOCK AVAILABLE FROM TH ESUPPLIER What solutions can be identified for these problems? How much will they cost and how long will they take to fix? - HAVE A CONTACT NUMBER OF HANDY MAN NEARBY - GET MORE THAN ONE SUPPLIER
What is the maintenance program for all the equipment? - FREEZER SHOULD BE SERVICED REGULARY What safety requirements are important for production? - MAKE SURE THAT THE FREEZER IS NOT LEAKING NEAR THE PLUG How will quality control and client feedback be handled? - REGULARY CHECK FOR EXPIRY DATES - ASK CLIENTS ABOUT THE SERVICE
Costing and bookkeeping Edit
How many of each of the stock items can reasonably be sold each day (and month)? - HAM = 5 PER DAY = R120.00 PER MONTH - POLONY= 10 PER DAY = R240 PER MONTH - SAUSAGES & VIENNAS = 10 PER DAY = R240.00 PER MONTH - RUSSIAN = 15 PER DAY = R360 PER MONTH
Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)? - THROUGHOUT THE YEAR, SAME AMOUNT What sort of pricing strategy will be chosen (cheapest or best)? - BEST QUALITY AT LOWER PRICES What profit margin will be chosen for the products
Write down the cost prices plus the margin for each stock item you will sell, and the selling price - HAM = R1.25 POLONY = R 0.62 SAUSAGE = R0.62 RUSSIANS = R0.41 Is this competitive? Will customers pay this much? Do the margins need to be adjusted? By how much? - HAM = R20.00 - POLONY = R12.00 - SAUSAGE R16.00 - RUSSIAN = R25 Now, set a target. How many items for each product need to be sold on a daily (and monthly) basis to be profitable? - Set out the products, costs, margins and selling prices:
Total per Month
X x number of working days in a month
R y.yy + R z.zz
= monthly target x selling price
What trends are included in the projections? - R200.00 PROFIT EVERY MONTH - R50.00 FOR TRANSPORT PER MONTH - R100.00 FOR ELECTRICITY - R200.00 FOR PACKAGING - R25.00 LOAN REPAYMENT
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. - OPEN THE BUSINESS AT 08H00 - MAKE SURE EVERYTHING IS IN ORDER TO START THE DAY - WAIT FOR CLIENTS - DELIVER TO CLIENTS WHO REQUESTED DELIVERIES - CLOSE BUSINESS AT 18H00
Who will act as backup should the person responsible not be there? What do they need to act as backup? - SOMEONE I TRUST OR FAMILY MEMBER What weekly processes need to be performed? Who is responsible, who is backup and what tools are required? - BUY NEW STOCK - BANK INCOMING MONEY What monthly processes need to be performed? Who is responsible, who is backup and what tools are required? - PAY ELECTRICITY AND OTHER BILLS - SERVICE THE EQUIPMENT
What is the schedule for training and motivating staff? - NONE AT THE MOMENT - NO STAFF
What processes are required for maintenance and new product creation? Who is responsible and what tools do they need? N/A
Before beginning Edit
List some of the support services available (legal, business and other) that might be needed - SOUTH ACPE BUSINESS CENTRE - BUSINESS ADVICE
What major laws concern the business, and which government departments should be called to keep up to date (list phone numbers)?
- NONE THAT I AM AWARE OF
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 Links to case histories - you are welcome to develop these and insert them in your personal page (create this by developing a personal profile) Retrieved from "http://startup.wikia.com/wiki/TRC_templates"