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? - Making dresses 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? - A course in needlework
What tools or equipment are needed? Where can they be bought, and how much will they cost? - Patterns - R40 - Fabric - R33 per meter - Threaed - R6.95 - Buttons - 25c - Zips - R2.10 - Ribbon - R2 per meter
How much space is needed to work from?
Where will the space be found, and how much will it cost to rent? - Will be woking from home in a wendy house
What sort of people will buy the product? Who are they and where do they live? - Local people from the area
How much and how often will they buy? Will they come to the shop or will it be necessary to deliver?
- 2 dresses per month
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? - Local competitors
What prices and products do these companies have? - Min - R50, Max - R300
What makes them popular / unpopular? - Been in business for a while - Only business in the area
What do they do to attract customers? Specials? Interesting marketing / advertising? - Word of mouth
Which of the competitors stand out as being particularly good at what they do?
- Only one, because it is the only one in the area
What can be done to stand out against them? What can be done that is more exciting / more interesting? - Will adjust work to the trends of fashion. - Will add extra services such as hairdressing
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)? - Local (Rich and Poor)
How seasonal or fashion-dependent are their buying habits (do they buy only in summer, only over Christmas, etc.)? - All seasons mostly spring and summer
Do the clients want the products to be the cheapest or the best (low price / low quality or high price / high quality)? - Good quality for low prices
How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest? - Windowshopping, word of mouth
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? - Make a wedding dress and promote on ththeir wedding day
The business inputs and outputs Edit
List all of the inputs (products that are required to produce the products): - Pattern - Material - Lining - Stiffening - Thread - Button - Zip
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): - Wedding dresses - Underskirt - vail
What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)? - Hired Dresses - R280 - Producd dress wit undervail - R204
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? - No 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):
- Prepair a proper place to work - Set up the equipment - Do some advertising by means of mouth
How long will it take to get all of these things and how much will they cost to get? - one week - Equipment R200 - Transport R30
List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages): - Electricity - R30 - Washing Powder - R19.95 - Transport - R30
Total amount for fixed costs: R79.95
How many staff will be needed and how much will each of them be paid (wages must be included in the fixed costs above)? - one staff member depending on voume of work
What training will they need, how long will it take and how much will it cost? - Will be trained by the owner. So there is no cost involved for training
The manufacturing or production process Edit
List every step, from start to finish, to produce the product - Wash amd iron the fabric - Cut out the pattern pieces - Lay out pieces on the fabric - cut out pieces on the fabric - sew the sides together - Do the fitting and make adjustments where needed - Do the final stitching - Make the final touches such as decorations - Dress is now complete
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): - Will be doing manufacturing herself
What possible problems may happen during each step of the manufacturing process? - Fabric can shrink - Colour can fade - Fabric can burn in the ironing process - Machines can break
What solutions can be identified for these problems? How much will they cost and how long will they take to fix? - Keep extra fabric at hand - Make precautions for an extra machine
What is the maintenance program for all the equipment? - Make sure machine is cleaned regularly - Scissors need to be sharpened - Take machines for regular service
What safety requirements are important for production? - Always keep first aid kit at hand - Keep children away from the machines - Never allow food near the fabric - Always make sure the iron is switched off
How will quality control and client feedback be handled? - PERSONAL CONTACT WITH CLIENTS - In the manufacturing process all the steps have to be followed in order to achieve an excellent final product
Costing and bookkeeping Edit
How many of each of the stock items can reasonably be sold each day (and month)? - two dresses per month
Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)? - Yes, Depending on function that will be made available
What sort of pricing strategy will be chosen (cheapest or best)? - The best strategy
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 - Wedding dress -R280 - Bridesmaid - R50 - Flowergirl - R80 - Matric Ballgown - R200 - Coat (summer) - R180
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? - 2 items per unit per month
Set out the products, costs, margins and selling prices: - Wedding dress -R280 - Bridesmaid - R50 - Flowergirl - R80 - Matric Ballgown - R200 - Coat (summer) - R180
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? - Seasonal functions and events
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. - Openshop early morning - Make sure the shop is clean - Will be doing everything herself
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 - Cleaning of Machines
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 - Take stock - Do advertising - Check out new prices
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 - Do window shopping. - Go through catalogues
Before beginning Edit
List some of the support services available (legal, business and other) that might be needed - SOUTH CAPE 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"