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
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 am going to sell flowers to the community 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? - Management and experience - I have the relevant experience and will cost me nothing.
What tools or equipment are needed? Where can they be bought, and how much will they cost? - Flowers - Oasis - Trees - Ribbon - Scissors - Buckets - Wire - Bowls - Everything will be bought at ico se Rose in Swellendam and will cost R895.00
How much space is needed to work from?
Where will the space be found, and how much will it cost to rent? - No rent needed will be working from home.
What sort of people will buy the product? Who are they and where do they live? - The community
How much and how often will they buy? Will they come to the shop or will it be necessary to deliver?
- Flowers will be sold on a daily basis. - Delivery fee will be charged for delivery.
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? - No competitors.
What prices and products do these companies have?
What makes them popular / unpopular?
What do they do to attract customers? Specials? Interesting marketing / advertising?
Which of the competitors stand out as being particularly good at what they do?
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)? - Everyone - Can be used for al occations
How seasonal or fashion-dependent are their buying habits (do they buy only in summer, only over Christmas, etc.)? - All through the year with sales increasing from end September to end February
Do the clients want the products to be the cheapest or the best (low price / low quality or high price / high quality)? - The clients want good quality at a very low price
How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest? - Clients look for advertisement boards and displays
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? - A sample of three roses will be made for R12
The business inputs and outputs Edit
List all of the inputs (products that are required to produce the products): - Flowers - Oasis - Ribbon - Wire - Bowls - Buckets
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): - Bouquets, Wedding arrangements, and other functions
What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)? -Highest Price R55.00 profit R25.00 -Lowest Price R35.00 profit R12.00
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, Wrapped - Three weeks. Unwrapped - One week.
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):
- Flowers - Trees - Oasis - Wire - Scissors - Bowls - Buckets - Ribbon
How long will it take to get all of these things and how much will they cost to get? - 5 days - R895
List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages): - R100 Water and Electricity
Total amount for fixed costs: R100.00
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 needed
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 - Step 1 - Place oasis in water then in a bowl - Step 2 - Place flowers in oasis - Step 3 - Place ribbon in wire - Step 4 - Place advertisement in bouquet (busines card) - Step 5 - Sprinkle water over flowers in order for it to look fresh
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): - No staff members
What possible problems may happen during each step of the manufacturing process? - The flowers can be damaged while busy in the production process
What solutions can be identified for these problems? How much will they cost and how long will they take to fix? - Buy new flowers
What is the maintenance program for all the equipment? - Keep flowers in buckets of water - Sharpen equipment every second week
What safety requirements are important for production? - Flowers need to be placed away from walking customers
How will quality control and client feedback be handled? - Second order can be given at a special price.
Costing and bookkeeping Edit
How many of each of the stock items can reasonably be sold each day (and month)? - 40 Bunches per month
Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)? - April to December is the best selling months
What sort of pricing strategy will be chosen (cheapest or best)? - cheapest
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 - Bouquet. CostR25 + MarginR40 + ProfitR10 = R75
Is this competitive? Will customers pay this much? Do the margins need to be adjusted? By how much? - No
Now, set a target. How many items for each product need to be sold on a daily (and monthly) basis to be profitable? - Two Bouquets per month at R75
Set out the products, costs, margins and selling prices: - Bouquets - R75
Total per Month
30 number of working days in a month
R25.00 + R40.00
= monthly target x selling price
What trends are included in the projections? -
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. - Someone orders flowers, needs to be finished at a certain time
Who will act as backup should the person responsible not be there? What do they need to act as backup? - Will be handling everything herself
What weekly processes need to be performed? Who is responsible, who is backup and what tools are required? - Everywek ten bunches of flowers need to be sold
What monthly processes need to be performed? Who is responsible, who is backup and what tools are required? - Monthly checks on books need to be done. Advertising
What is the schedule for training and motivating staff? - No training
What processes are required for maintenance and new product creation? Who is responsible and what tools do they need? - Books will be bought from readers digest for new ideas
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)
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)