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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 MAKE TRACKSUITS AND T-SHIRTS 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? - must be able to work a sewing machine - I HAVE THIS TRAINING AS I WORKED IN A SEWING


What tools or equipment are needed? Where can they be bought, and how much will they cost? - A GOOD SEWING MACHINE (I HAVE ONE) - SCISSORS (ANY SEWING SHOP FOR PLUS MINUS R100


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? - SCHOOLS, NETBAL AND RUGBY CLUBS MAINLY: - SCHOOLS IN OUDTSHOORN AND SEDGEFIELD - NETBALL CLUBS IN MURRAYSBURG AND WILDERNESS - RUGBY CLUBS IN UNIONDALE


How much and how often will they buy? Will they come to the shop or will it be necessary to deliver?

- THE CLIENTS WILL BUY REGULARY FOR SCHOOL UNIFORMS AND SPORT TOURS. - 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.

Competitors Edit

What major competitors will attract clients' spending away from the business' products? - ONLY IN TOWN

What prices and products do these companies have? - TRACKSUITS ARE MORE EXPENSIVE THAN MINE BUT THEY CAN DO IT QUIKER AND IN BULK


What makes them popular / unpopular? - POPULAR - LARGE ORDERS, QUICK TIME TO FINISH - UNPOPULAR - EXPENSIVE


What do they do to attract customers? Specials? Interesting marketing / advertising? - THEY HAVE REPRESENTATIVE THAT DRIVES AROUND AND ADVERTISE THEIR PRODUCTS


Which of the competitors stand out as being particularly good at what they do? NONE What can be done to stand out against them? What can be done that is more exciting / more interesting? - BECAUSE I AM LOCAL, MY PRICES WILL BE CHEAPER. - I WILL MAKE SURE THAT I DELIVER GOODS ON TIME AT THE BEST QUALITY - FRIENDLY AND HELPFUL 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)? - SPORT AND SCHOOLS CLUBS. - CHURCHES TEAMS - CONSISTENCY TOWRDS QUALITY IS VERY IMPORTANT


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 CULTURALS DAYS


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? - I WILL MAKE A SAMPLE WHICH WILL COST ABOUT R150.00


The business inputs and outputs Edit

List all of the inputs (products that are required to produce the products): - MATERIAL - ZIPS - COTTON THREAD - ELASTIC


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): - LADIES DRESS & MENS ATTIRE


What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)? - LADIES DRESS @ R160 ± R70 PROFIT - MENS ATTIRE @ R280 ± R120 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? - YES, UNTILL IT TEARS OR PEOPLE GROW TOO LARGE


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 - GET OVERLOCKER - CUT PATTERNS AND GET SCISSOR, THREAD AND MATERIAL - CHECK ORDER

How long will it take to get all of these things and how much will they cost to get? - REGISTRATION (FREE) 2 WEEKS - ± 5 DAYS FOR THE OTHERS


List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages): - ELECTRICITY = R100 - TELEPHONE = R80 - STAFF = R200


Total amount for fixed costs: R380.00


How many staff will be needed and how much will each of them be paid (wages must be included in the fixed costs above)? - 2 = 1 MACHINEST (R70 PER DAY) - 1 TRIMMER (R60 PER DAY) - THEY ONLY WORK WHEN NEEDED


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 MATERIAL FROM SUPPLIER - CUT OUT THE TRACKSUIT - SEND THE JACKET FOR EMBROIDERY - FINISH THE WHOLE DRESSS - TRIM & PACKAGING - SELL TO THE CLIENT


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 EVERYTHING EXCEPT THE EMBROIDERY - THE EMBROIDERY IS DONE BY THE SEW SHOP


What possible problems may happen during each step of the manufacturing process? - THE SUPPLIER MIGHT NOT HAVE STOCK - THE SEW SHOP`S EMBROIDERY MACHINES MAY BE BROKEN


What solutions can be identified for these problems? How much will they cost and how long will they take to fix? - GET MATERIAL FROM ANOTHER SUPPLIER ( LAGOONA) - DO EMBROIDERY AT LYDIA


What is the maintenance program for all the equipment? - PUT OIL ON THE MACHINE REGUALRY - KEEP SCISSORS SHARP - KEEP WIRING TIDY


What safety requirements are important for production? - SWITCH OFF MACHINE AFTER USE - PUT ALL SHARP OBJECTS AWAY ON A SAFE PLACE


How will quality control and client feedback be handled? - PERSONAL CONTACT WITH CLIENTS


Costing and bookkeeping Edit

How many of each of the stock items can reasonably be sold each day (and month)? - 30 TRACKSUITS PER MONTH (ADULTS) - 30 TRACKSUITS PER MONTH (CHILDREN)


Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)? - YES I WILL BE ABLE TO SELL THE SAME AMOUNT EACH MONTH, DEPENDING ON LARGE ORDERS


What sort of pricing strategy will be chosen (cheapest or best)? - BEST PRICE - FOR ADULTS R12.60 - FOR CHILDREN R12.60


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 - ADULT DRESSES - R90+R12.60=R102.60 - MENS ATTIRER -R160+R12.60=R172.60


Is this competitive? Will customers pay this much? Do the margins need to be adjusted? By how much? - YES THE PRICES ARE STILL COMPETITIVE AND THE MARK-UPS DO NOT HAVE TO BE ADJUSTED


Now, set a target. How many items for each product need to be sold on a daily (and monthly) basis to be profitable? - SALES OF ADULTS = R4 800.00 - SALES OF CHILDREN TRACKS = R8 400.00 ( MONTLY) - TOTAL SALES FOR THE MONTH WILL BE R13 200.00


Set out the products, costs, margins and selling prices:

ADULT DRESSES R90+R12.60=R102.60

- MENS ATTIRE R160+R12.60=R172.60


Item

Daily Target

Monthly Target

Cost Price

Margin

Selling Price

Total per Month

Item A

X

X x number of working days in a month

R y.yy

R z.zz

R y.yy + R z.zz

= monthly target x selling price

What trends are included in the projections? - I HAVE ADDED 30 ADULTS AND 30 CHILDREN`S TRACKSUITS FOR INCOME, BUT THE ORDERS WILL DETERMINE THE INCOME (ABOUT R500 MORE PER MONTH) - R25 FOR LOAN REPAYMENT P.M - R100 FOR PACKAGING P.M - R200 FOR STAFF P.M - R100 FOR ELECTRICITY P.M - R80 FOR TELEPHONE P.M


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. - I DO NOT WORK EVERYDAY - I WORK AT MY OWN TIME AND PACE, DEPENDING ON THE TURN AROUND TIME


Who will act as backup should the person responsible not be there? What do they need to act as backup? - NO ONE AT THE MOMENT BUT I AM PLANNING TO HIRE SOMEONE - WHOM I CAN TRAIN TO DO THE WORK


What weekly processes need to be performed? Who is responsible, who is backup and what tools are required? - GO THROUGH ORDER TO MAKE SURE IT`S DELIVERED ON TIME


What monthly processes need to be performed? Who is responsible, who is backup and what tools are required? - PAY ELECTRICITY AND TELEPHONE BILLS - BUY MATERIAL


What is the schedule for training and motivating staff? - GOOD TRAINED PERSONNEL - GOOD SALARY


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)

External links Edit

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, you did Links to case histories - you are welcome to develop these and insert

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