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The Thousand Rand Challenge Business Plan Template Edit

Name and Contact details of client:

Boniwe Regina Mboyiya 83 Frans Laan Highway Park Asla Mossel Bay

Cell: 076 140 0352


Description of the business Edit

What exactly is it that is going to be sold or done?

Making and selling of bedroom sets and continental pillows etc. on order.

What skills are needed to do this? Where is this taught and how much will it cost?

Carpeting training, good people skills and effective marketing experience. I have the necessary sewing skills.

What tools or equipment are needed? Where can they be bought, and how much will they cost?

Material R200.00 Kraplap Mossel Bay & other Cotton R50.00 Kraplap Mossel Bay & other Machine Nails R50.00 Bernini Mossel Bay Scissors R20.00 Checkers Heiderand Zips R50.00 Kraplap Mossel Bay Batting R50.00 Cutting Table Already have one Curve knife already have one Sewing Machine R800.00 (second hand) Cash Crusaders Embroidery Machine already have one Sponge R200.00 Kraplap Mossel Bay

How much space is needed to work from?

I need enough space to function on a daily base

Where will the space be found, and how much will it cost to rent?

I am going to work from home; I would need about R150 for electricity a month and I have a few small problems that I need to attend to in my home

What sort of people will buy the product? Who are they and where do they live?

Most people in the community, tourist, private persons and small businesses

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

Depends on there needs, I could do delivery for an additional price and would mostly work on orders.

Upstream Businesses Edit

A list of businesses and ideas that provide the services and products that this business needs.

  • Bernina
  • Lapland Materials
  • Kraplap Mossel Bay


Downstream Businesses Edit

A list of businesses and ideas that this business could provide products for:

  • Private persons
  • Tourist
  • Small businesses


Competitors Edit

What major competitors will attract clients' spending away from the business products?

Home Choice and Zettas

What prices and products do these companies have?

Bedding and toilet sets: R450.00 Seeping couches: R600.00 Sleeping mattresses: R300.00 Morrison chairs seats: R350.00 Toilet sets: R150.00

What makes them popular / unpopular?

They are popular because they have been in the business for a long time and they publish their business in local newspapers. The whole community knows about their services and they have household names

What do they do to attract customers? Specials? Interesting marketing / advertising?

They advertise themselves in the local newspaper and distribute pamphlets; they also tender for community contracts

Which of the competitors stand out as being particularly good at what they do?

No specific business could be found that stand out against the others

What can be done to stand out against them? What can be done that is more exciting / more interesting?

Stay focused and target the lower income group plus make high quality and expensive things for the local tourist market.


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)?

Community - Consistency on quality Tourist - Safety People in town - Affordable prices Yes, consistency is important if I want my brand name to become popular.

How seasonal or fashion-dependent are their buying habits (do they buy only in summer, only over Christmas, etc.)?

Throughout the year but during the summer months the tourist industry will be big business

Do the clients want the products to be the cheapest or the best (low price / low quality or high price / high quality)?

Tourist will pay more for high quality products – especially the overseas market. Good quality products last a long time and this would help with my branding.

How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest?

I am going to put my products in the town business area where the tourist normally buys. Quality is important and the store where I keep it must also make a good profit.

Do the clients want the same things sold in the same way, or do they want things to change all the time?

The same principal and high quality but with a difference

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 few examples of pillows, etc. and will try and get some orders from the shops in town – especially for those in the tourist market.


The business inputs and outputs Edit

List all of the inputs (products that are required to produce the products):

Material, cotton, needles, scissors, zips, over locker machines, cutting table, curve knife, sponge, sewing machine, Embroidery + machine

List all the suppliers for the inputs:

Lapland Materials - Mossel Bay Cash Crusaders - Mossel Bay Kraplap – Mossel Bay Checkers – Heiderand / Mossel Bay

List all of your outputs (products created by your business):

Curtains, bedroom sets, table cloths, sleeping couch, toilet sets, Morrison chair sets, pillow sets (for the sitting room)


What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)?

Continental pillows : R40 profit R10 Standard pillow : R20 profit R8 Sleeper mattress : R650 profit R200 Morrison Chair Sets : R450 profit R200 Set of bedding + 2 gropes of curtains: R1200 -1700 profit on each +-R200 Table Cloths : R50 profit R20 Curtains : R90 profit R40 Toilet seat covers : R23 profit 10

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?

The products does not have a shelf live – However it is possible that they will go out of fashion if it is a specific item that is fascinate.


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:

Setting up a business plan, Over locker, sewing machine and material and other supplies needed like example: cloth, needles, scissors, curve knifes, cutting table and Embroidery Machine I have most of this equipment and can start my business. I need one industrial sewing machine at first and once the business is going, I would need a second one as well.

How long will it take to get all of these things and how much will they cost to get?

One week Industrial sewing machine R800.00 (second hand shop) Equipment material in total R1420.00 (includes industrial sewing machine)


List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages):

Staff wages : R700. 00 p/m Electricity : R150. 00 Rent/Advertising : R300.00 Stock : +- R900.00 Loan repayment : R100

Total amount for fixed costs: R2150.00

How many staff will be needed and how much will each of them be paid (wages must be included in the fixed costs above)?

Two staff members, R700.00 each

What training will they need, how long will it take and how much will it cost?

I will do the training myself there would be no extra cost for training.


The manufacturing or production process Edit

What possible problems may happen during each step of the manufacturing process?

Stress, unsafe actions & conditions and equipment damage

What solutions can be identified for these problems? How much will they cost and how long will they take to fix?

To know the equipment, follow the safety rules and create a work friendly environment.

What is the maintenance program for all the equipment?

Take my machines for service every 3 months and keep my place clean

What safety requirements are important for production?

Working in a safe place and keep children away from your work place

How will quality control and client feedback be handled?

Will make contact with clients after the day of service rendered either by visit door to door or phone to find out if they are satisfied with my products (follow up service)


Costing and bookkeeping Edit

How many of each of the stock items can reasonably be sold each day (and month)?

4 x sets of curtains 4 x bedroom sets 4 x toilet seat covers 4 x sleeper mattress

Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)?

Yes, pillows, curtains and sleeping couches are always in demand

What sort of pricing strategy will be chosen (cheapest or best)?

Cheaper, affordable but also profitable

What profit margin will be chosen for the products?

+- 10%

Write down the cost prices plus the margin for each stock item you will sell, and the selling price:

Curtain cloth: R80 for two gropes Continental pillow: R40 Selling Price: R50 Standard pillow: R25 Selling Price: R30 Sleeper mattress: R650 Selling Price: R800 Morrison Chair seats: R450 Selling Price: R650 Bedroom sets + 2 gropes: R1200 Selling Price: R1400

Is this competitive? Will customers pay this much? Do the margins need to be adjusted? By how much?

Yes, the price is very competitive

Now, set a target. How many items for each product need to be sold on a daily (and monthly) basis to be profitable?

+- 4 of each product a month

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

Continental pillow: R40 Selling Price: R50 Standard pillow: R25 Selling Price: R30 Sleeper mattress: R650 Selling Price: R800 Morrison Chair seats: R450 Selling Price: R650 Bedroom sets + 2 gropes: R1200 Selling Price: R1400


Item

Daily Target

Monthly Target

Cost Price

Margin

Selling Price

Total per Month

Curtains

4

4

R70.00

R10.00

R80.00

= R200.00

Contitental Pillows

4

4

R40.00

R10.00

R50.00

= R200.00

Standard Pillow

4

4

R25.00

R10.00

R35.00

= R140.00

Sleeper Mattress

4

4

R650.00

R150.00

R800.00

= R3200.00

Morrison Chair seats

4

4

R450.00

R200.00

R650.00

= R2600.00

Bedroom sets

4

4

R1200.00

R200.00

R1400.00

= R5600.00


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.

Marketing myself, do door to door marketing, have a sales speech; allow clients to make there own decisions. Take orders, making of orders and delivery of orders to clients

Who will act as backup should the person responsible not be there? What do they need to act as backup?

I will work alone in the beginning and employ a person to help me. My target is to that after 2-3 months.

What weekly processes need to be performed? Who is responsible, who is backup and what tools are required?

Purchasing of stock when needed, making of orders & marketing

What monthly processes need to be performed? Who is responsible, who is backup and what tools are required?

Process:

  • Get orders – do marketing – take samples to shop
  • Buy material & cut to make up order
  • Do deliveries
  • Collect payments
  • Do financial & paying of bills
  • Bank money

What is the schedule for training and motivating staff?

I will only have one staff member. Later I will do in-house & one to one training.

What processes are required for maintenance and new product creation? Who is responsible and what tools do they need?

Maintenance on machines may be required (sewing machines) I will take it in to the agents for service this would be my own responsibility


Before beginning Edit

What major laws concern the business, and which government departments should be called to keep up to date (list phone numbers)?

Local Municipality – by law and regulations on the informal sector.

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