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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?

  • Beer

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?

  • The client has experience in this field.


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

  • Fridge
  • Empty bottles
  • Glasses
  • chairs
  • Tin openers
  • Tables
  • All can be bought at trade centre


How much space is needed to work from?

  • A room


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

  • She has a bangalo, so she will not be paying rent


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

  • COmmunity members, men,women,youth,tourists,teachers of the locul school.


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

  • They will come to the shop any time


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? Few people in the area


What prices and products do these companies have?

  • The sell beer and cool drinks at R7 a bottle


What makes them popular / unpopular?

  • They are popular because of the attention they give to the customers
  • Unpopular because they don't give credit


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

  • They host stokvels, play music and pool between their drinks


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

  • none of them stand out


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

  • She is going to stock bulks to impress customers.
  • Good customer care
  • Opening as early as possible

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 members, men, women,youth, tourists and teachers.
  • It is important to them to get things the way they are used to getting them.


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

  • It is a year long business


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

  • High quality


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

  • Clients decide to buy where there is good delivery service


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

  • Yes


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

  • She will do that by buying a bulk of stock.
  • Advertise by using a notice board outside her home

The business inputs and outputs Edit

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

  • What is required to have the product is the money to purchased stock


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):

  • The out put will then be the product itself which is beer.



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

  • The cost of each beer is R7 the beer case is R64.
  • The profit made on each beer is 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 the beer does not go off.

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):

  • Empty cases
  • Glasses
  • Elecricity
  • Plastic table cloths


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

  • 1 week it will cost R500


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 R120


Total amount for fixed costs: R___220____________


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

  • There are no staff members


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

  • The client will work on her own, and she is experienced.

The manufacturing or production process Edit

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

  • stock everyday keep the place neat & open
  • Avoid the power fall to keep the beers cold.


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):

  • There are no staff members


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

  • Beers may be broken during parking or when they are in the fridge


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

  • Buy enough stock to avoid shortage should an eccident happen
  • Be more carefull when handling stock


What is the maintenance program for all the equipment?

  • The fridge will need servicing twice a year which will cost R500 for both times.


What safety requirements are important for production?

  • The safery requirements to ensure customer safety


How will quality control and client feedback be handled?

  • It will depend on the complain of the customer
  • She will keep up the good quality to keep her customers happy

Costing and bookkeeping Edit

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

  • 4 cases can be sold each day


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

  • No, there are seasonal variations, anytime of the year


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

  • The best



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

  • 4 cases cost R256
  • 1 beer cost R7
  • Profit is R84 per day



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

  • Yes


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

  • 4 cases needs to sold per day at R7 a bottle to be profitable



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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