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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?

  • Bead works

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

  • The client has the experience and the skill to do the job


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

  • Needles=R17 a pack of 6 at Pick 'n Pay/fabric shop
  • Table =officce mart+- R250
  • Chair=Office mart+-R100


How much space is needed to work from?

  • A small space to put a table and a chair


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

  • She will work from home and will not be paying any rent


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

  • Tourists and Traditional people
  • Ladies in the area and youth they stay in the area


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

  • Some will come, but the client will go to the other because they live close by.
  • Daily (5 Days a week)=+- R60 Daily= R300 a week (R300x4=R1200)

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?

  • 1 Person is doing Beads in the area
  • Portia Bango 29 Bhayi Street Joe Slovo


What prices and products do these companies have?

  • Good prices and various items
  • She is professional
  • She has taught other people in the past

What makes them popular / unpopular?

  • She is popular because of the neatness of her work
  • Unpopular because she does the same designs, no variety


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?

  • The person in her area, Portia Bango


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

  • Offer a variety of designs
  • Go outside her area to get new customers
  • Advertise on tourist attraction spots and exhibit or display

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)?

  • People who live in the are, tourists.
  • Consistency is very important as tourists stay in an area for a specified amount of time and each design is made to fit/match a certain outfit.


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

  • It is not seasonal, sales aare throughout the year


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

  • High quality but reasonably priced


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

  • Beautiful designs and colours attract them.
  • Brouchers on their spots seeing them from others then getting referrals.

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

  • They sometimes want sometime variety it depends on the customer and their taste.


What can be done to attract the first clients (the most important and most difficult to get)? How much will it cost?

  • Word of mounth
  • Notice on Tourists spots
  • Displays and Exhibitions

The business inputs and outputs Edit

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

  • Beads
  • Cotton
  • Needle
  • Pins
  • Wool
  • Buttons

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):

  • Necklaces
  • Ties
  • Bracelets
  • Earings
  • Belts
  • Rings


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

  • Cost: Profit
  • Necklace R250-R300 *R207-R257
  • Tie R400 *R280
  • Bracelet R10-20 *R2-R8
  • Earings R5-10 *R0.50-R5.50
  • Belts R200-R300 *R60-R160
  • Ring R5 *R2


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, but should be stored in a dry place.

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):

  • Get customers
  • Buy all the material needed
  • Put the design together
  • Wash


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

  • A day


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

  • Telephone R =-R80
  • Rent=R100


Total amount for fixed costs: R____+-180___________


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

  • She will work on her own


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

  • No training required

The manufacturing or production process Edit

List every step, from start to finish, to produce the product

  • Design a partern
  • Buy the material needed
  • Put is together
  • Wash

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):

  • The client will do all the work herself


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

  • Not to go according to pattern
  • Not getting the right colours
  • If the cotton is not tied tight, it can be loose
  • Needle can be broken


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

  • Will have to redo the same day=it will cost time.
  • Have to change colours in consultation with the customer=same day
  • Have to restart
  • Replace it

What is the maintenance program for all the equipment?

  • Not applicable


What safety requirements are important for production?

  • Wear finger protector
  • Do finger exercise to avoid arthritis
  • Wear classes as consentration appects eyes


How will quality control and client feedback be handled?

  • Will listen to the customers carefully and accept complaints positively.
  • If the customer is not satisfied , will replace the item or refund

Costing and bookkeeping Edit

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

  • 10-15 Sets per month
  • 20-50 of loose items(Bracelets, rings,earings) 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, not seasonal


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

  • Best prices on the market


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

                  Cost                              Mark-up
  • Bracelets *R12 *R2-R8
  • Necklace *R120 *R280
  • Ties *R43 *R207-257
  • Earings *R4.50 *R0.50
  • Rings *R3 *R2
  • Belts *R140 *R60


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

  • Yes, not adjustments needed as yet.


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

  • 10 sets (Per month)
  • 30 Loose items (Per month)


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


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?

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.


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


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


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


What is the schedule for training and motivating staff?


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


Before beginning Edit

List some of the support services available (legal, business and other) that might be needed


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


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, 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.wikicities.com/wiki/TRC_templates"

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