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?''''''

  • Fax services
  • Photo copying
  • C.V. Compilation
  • Business cards
  • Internet viewing service and e-mail
  • Birthday cards
  • Typing of programmes for events and funerals

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

  • Computer literacy skills
  • Creative and innovative person
  • She will not need any more training for now she is literate in MS Word, Power Point,Excel,Access.

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

  • Item *Supplier *Cost

-Fax machine -Game Store -R800 -printer (for all the items) -R600 -photocopy machine(to buy later) -computer(she has)

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 will work from home and will contribute towards electricity and telephone for the internet and e-mail rents/charges = R79 pm
  • Electricity R100 pm
  • Telephone bill R150 pm

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

  • School Children
  • Job seakers
  • Community in general

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

  • Full day service, from 08h00 each day for seven days
  • They will come to the house for the service

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?

  • There is only one internet cafe in the area -Viva shop. which is far from the client's house

What prices and products do these companies have?

  • They offer -faxing R8pp
           -Photo copying Black and white R 1pp, colour R750pp
           -Cv compilation R8pp
           -Internet R9 p/hr

What makes them popular / unpopular?

  • They are popular because they are the only ones in the area who offer those services.

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

  • They don't do anything to attract customers, they capitalise on the fact that they are accessible to customers and are convinient for them.

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

  • They have no competition in the are so they stand against no one.

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

  • Major marketing drive, to the shops around the area and in the community meetings.
  • Billboards notifying the community of the services she offers
  • Drop of notices house to house in the area
  • Prices will be reasonable compared to the Viva Internet Cafe.

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)?

  • The community in general will buy
  • She will buy from the same suppliers so that she renders a good quality service to her customers at all times.
  • A good customer service will be the key to the business

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

  • The customers will buy throughout the year, but when schools open and factories, the services will are needed more frequently than other times of the year.

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

  • The want good customer service and quality at low prices

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

  • They customers decide to buy where products are easly accessible and there are low prices.

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

  • The clients like the same things 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?

  • She is going to advertise specials e.g when compiling a C.V. the cover will be made our of colour for a certain period of time for free.

The business inputs and outputs Edit

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

  • Fax machine
  • Photocopy machine
  • Computer-typing
  • Printing
  • land line

List all the suppliers for the inputs and their addresses, telephone numbers, and sales terms (cash, 30 days, etc.):

  • Makro-Milnerton
  • Trade Centre-Milnerton
  • Nashua-Milnerton

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

  • Faxed massages
  • Copies of documents
  • Internet and e-mail access
  • Business cards
  • Birthday cards
  • Programmes
  • C.V's

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

  • Printer-Black R1.80 *80c
       -Colour R8           *R8
  • Typing R6pp *R1.50
  • Copies -Black R70pp *20c
        Colour R6pp         *R1.50 
  • Faxing-R7pp *R2
  • Internet R950p/hr *R1.50

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 they don't have a shelf life, it will be paper and machines.

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):

  • She has a computer already, so for now she only need a fax machine and printers.
  • She will market the business by dropping little notes door to door telling people about the business.

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

  • It will take about two days to shop around for reasonable prices
  • Fax machine R800 at Game
  • Printer R600 at Game

(But will buy one at a time then the other as the business progresses).

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

  • Electricity R100
  • Internet charges R70
  • Telephone R150

Total amount for fixed costs: R_______________

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, she will be working alone
  • Wages R100 per week

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

  • Not applicable as will be giving a service not manufacturing anything.
  • The service itself depends on the customer requirments e.g.C.V's only require typing and printing in black and white,whereas with programmes, she designs the layout,include pictures or graphics or art,use colour font, type and print in colour pages in some instances.

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 whole process will be done by the client herself.

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

  • The problem that can be experienced in this king of servece is of the printout not being clear.
  • The paper not coming through and getting squashed by the machine.

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

  • For squashed paper she will use another paper
  • For unclear prints she will reprint for the client for free
  • The paper will cost her 30c a page

What is the maintenance program for all the equipment?

  • Servicing all the machines yearly

What safety requirements are important for production?

  • None that she is aware of

How will quality control and client feedback be handled?

  • There will be an aftre service feedback notes handed out to all the customers
  • She will use good quality paper to maintain quality

Costing and bookkeeping Edit

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

  • Faxing- 4 people fax per day
  • Copies- 10 people per day
  • C.V compilation- 2 C.V's per day
  • Internet access- 5 people per day
  • e-mail- 5 people per day

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

  • The only difference is the beginning of the year when schools,factories open, there is an influx for such a service. Otherwise the service is needed throughout the year.

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

  • Best pricing-Over all mark-up for each service is R14

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

   'Prices                Mark-up 
  • Print black=R1.80 *80c
      Colour=R8              *R2
  • Typing=R6pp *R1.50
  • Copies Black70c *20c
       Colour=R6             *R1.50
  • Faxing=R7pp *R2

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

    • Yes, they will be adjasted depending on the changes in prices e.g. printers paper,increase in electricity payment,ink cartrages going up.

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

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 ""