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

  • I will be buying and selling bedding to increase my capital for my sewing business.

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

  • At this stage I do not need training but at a later stage I will go on a designing course.

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

  • At the moment I have my own equipment but when the business exspand I will need more equipment.
  • I will need a cutting machine and a normal machine worth R3000.00.

How much space is needed to work from?

  • I will work from home because there is no cost involve.

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

  • Working from home will have no cost.

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

  • The local community, housewives, single mothers,

and schools.

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

  • There are times when there will be no sales because most of the clients work on a seasonal basis.
  • I will sell my products each month on pensionday.

(Government grants pension, disabled people, and single mothers receive money to raise their kids.)

  • I will be selling on every month end.

Upstream Businesses Edit

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

  • Pep Stores
  • Sams
  • Magrietjies

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?

  • Pep Stores
  • SAMS
  • Magrietjies

What prices and products do these companies have?

  • Low prices and sometimes bad quality.

What makes them popular / unpopular?

  • Pep Stores prices are low and service is much better that other.
  • They have lots of stock.
  • People support Pep Stores on a day to day basis.

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

  • They advertise on television, radio, and pamplets.

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

  • Pep Stores.
  • Magrietjies.

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

  • I will sell a better quality, be friendly and have specials.
  • As well as door to door sales.

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)?

  • My product will be sold to clients with low income, general wage and shcools.

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

  • Most of my clients work seasonal.
  • During winter I will sell more than summer.

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 high quality and low price.

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

  • I will tell neighbours and friends of my product.
  • I will put up a noticeboard infront of my house.

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

  • The scool uniforms does not change.

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

  • First come first serve.

The business inputs and outputs Edit

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

  • Scissors
  • Material
  • Cotton
  • Needles
  • Machine oil
  • Zips

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):

  • School uniforms
  • Evening dresses
  • Curtains are in demand
  • Repairing clothers

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

  • Material R30.00
  • Zips R10.00
  • Cotton R10.00
  • Electicity R10.00
  • Cost price and labour R60.00+R40.00 = R100.00
  • 100% profit on each uniform.

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.

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):

  • Machine service.
  • Material should be bought.
  • Cotton.
  • Electricity.
  • Checking workplace, scissors and patterns.

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

  • Most of my equipment I have at home.
  • My supplier for the material is at a walking distants.
  • Material is approximately R30.00 per meter.

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

  • Electricity R100.00
  • Lone R500.00

Total amount for fixed costs: R_500.00______________

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

  • At the moment I will be doing everything on my own.

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

  • I do need training, a designing course worth R3000.00.

The manufacturing or production process Edit

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

  • Making a school tracksuit:

Equipment needed: Scissors, pattern, a table to cut on, machine, a zip, colourd cotton, elastic. Method: Spread and place material on the table. Place the pattern on material according to instructions and cut it our.

Stitching the pants: Work the front of the pants together and then the back of the pants. Then stitch the two sides in between the legs together. Stitch the two outside sides together. Stitch the elastic to the top of the waistline. Stitch the seem of the pants. Pants is complete.

Top: Stitch front of shouder seems and back together. Stitch the sleeves together. Stitch on the zip and the color last. Make a hem on each of the sleeves and the bottom of the top. Top completed.

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):

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

  • My machine could break.
  • Powerfailure.
  • Shortage on orders.
  • Sickness.

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

  • I will service my own machine.
  • I will make more products.
  • I will make sure that I have enough orders.
  • I will want to employ an assistant.

What is the maintenance program for all the equipment?

  • I send my machines from time to time for service.

What safety requirements are important for production?

  • No children aloud in the work area.

How will quality control and client feedback be handled?

  • I will be doing quality control.
  • Before the client buy the product, the client inspect it as well.

Costing and bookkeeping Edit

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

  • My aim is to sell 20 trackcuits per month.

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

  • No, my products are not seasonal.
  • At winter sales are more than summer.

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

  • This would be a long lasting, good quality product.

What profit margin will be chosen for the products

  • R40.00.

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

  • Cost price R60.00 + Margin R40.00 = R100.00
  • My products price change according to size.

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?

  • My aim is to make 15 trackcuits a month in different sizes.

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


Daily Target

Monthly Target

Cost Price


Selling Price

Total per Month

Item A


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 ""