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The Thousand Rand Challenge Business Plan Template Edit

Name and Contact details of client:

Mina Mvulo 13 Gcotyana Str. Kwanonqaba Mosselbay 6506 Tel: 073 264 0208

Description of the business Edit

What exactly is it that is going to be sold or done? Do sewing work and want to make overalls. Can get a order for 50 overalls from a corporate client.

What skills are needed to do this? Where is this taught and how much will it cost? Sewing skills and I have received necessary training for designing, measurements and cutting.

What tools or equipment are needed? Where can they be bought, and how much will they cost? Sewing machine, cutting table, chairs, material, patterns, needles and scissors

How much space is needed to work from? Enough space is needed to run on a daily bases.

Where will the space be found, and how much will it cost to rent? At home, it would cost me about R800, 00 a month.

What sort of people will buy the product? Who are they and where do they live? Factories, community, taxi drivers, church, school uniforms etc. and they all live in my community, Kwanonqaba.

How much and how often will they buy? Will they come to the shop or will it be necessary to deliver? Factory in Bulks e.g. overalls x 10 = R750 i.e. R75 per overall. Churches in Bulks e.g. 1 x church uniform = R400.00 Individuals e.g. 1 x track suit = R180.00 Taxis in Bulks e.g. taxi ties = R 65.00 e.g. taxi trousers = R 65.00


Upstream Businesses Edit

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

  • Chairs and cutting table: Jusua Door or Game
  • Materials, patterns, needles and scissors: Bernina


Downstream Businesses Edit

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

  • Community
  • Churches
  • Tourist, taxi drivers, school kids


Competitors Edit

What major competitors will attract clients' spending away from the business products? Monties Uniforms and Pep stores.

What prices and products do these companies have? Expensive uniforms

What makes them popular / unpopular? The fact that they are well known and situated in the main street. Not all their uniforms are up to standard.

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

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

What can be done to stand out against them? What can be done that is more exciting / more interesting? Be dedicated and provide quality products Marketing the business to clients

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)? School kids, community workers, tourist, taxi drivers

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

How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest? Through promotion, advertising and specials

Do the clients want the same things sold in the same way, or do they want things to change all the time? They want the same high quality products for cheaper

What can be done to attract the first clients (the most important and most difficult to get)? How much will it cost? Promotions and specials R400

List all of the inputs (products that are required to produce the products): Material, cotton, needles, scissors, buttons, beads, sewing machines, overlocker, Ironing board, cutting table, embroiling machines

List all the suppliers for the inputs: Material, scissors, needles, etc.: Pep Stores: Lay buy Machinery, cutting table etc: Game or Jusua Door: On credit

List all of your outputs (products created by your business): Overalls Church uniforms School Uniforms Tracksuits Ties

What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)? Overalls : R 75, 00 Church Uniforms : R400, 00 School Uniforms : R140, 00 Tracksuits : R180, 00 Ties : R 65, 00 3m Material Cost = R21.00 for overall Zip = R5.00 Cost price = R28.00 Cotton = R2.00 Selling price = R75.00 Total = R28.00 Profit = R48.00

Product Cost Price Selling Price Profit Overalls R28.00 R75.00 R43.00 Church Uniforms R192.50 R400.00 R207.50 School Uniforms R68.00 R140.00 R72.00 Track suits R79.55 R180.00 R72.00 Ties R31.20 R65.00 R33.80 Total Profit per item = R456.75

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, because every product that I make has been ordered

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): Business plan, materials, space to operate, sewing machines, overlook machines, clothe, needles, beads, quick presser, cutting table and Embroiling machine. I need material and stock as per page 4 Material plus/minus R500, Patterns plus/minusR200, Other plus/minus R200, Total = R900.00

How long will it take to get all of these things and how much will they cost to get? About one week to get everything done.

List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages): Rent : R200 Electricity : R400 Phone : R300 Staff : R1200 Total amount for fixed costs: R2100

How many staff will be needed and how much will each of them be paid (wages must be included in the fixed costs above)? One staff member - R1200

What training will they need, how long will it take and how much will it cost? Jersey training and Quilt Training Embroiling Training free at the Labour Department. One week: R250.00


The manufacturing or production process Edit

What possible problems may happen during each step of the manufacturing process? When the measurements are not precise

When the staff is not motivated for work? When clients brake contract agreement

What solutions can be identified for these problems? How much will they cost and how long will they take to fix? Be sure about work quality Get the staff motivated and encouraged Regular contact with clients

What is the maintenance program for all the equipment? Get professionals to fix the equipment Keep the machines only Keep them covered Apply safety rules to use the machines.

What safety requirements are important for production? Attach safety measures on all machines Attach safety rules on the notice board Unplug the electrical cable if not in use. Make all necessary machine are in good working order. Make sure of the cutting is according to the pattern.

How will quality control and client feedback be handled? By not compromising on quality and to have a hundred present quality control. Regular training of staff to update their knowledge


Costing and bookkeeping Edit

How many of each of the stock items can reasonably be sold each day (and month)? Overalls : R75, 00 Church Uniforms : R400,00 School Uniforms : R140, 00(minimum of one a week for at least 3 of them Tracksuits : R180, 00 Ties : R65, 00

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

What sort of pricing strategy will be chosen (cheapest or best)? Best price for the market, because of the quality material. Overalls : 1 x R75, 00 per overall Church Uniforms : 1 x R400,00 School Uniforms : 1 x R140, 00 Tracksuits : 1 x R180, 00 Ties : 1 x R65, 00

What profit margin will be chosen for the products? It would differ from the deferent products I have to offer

Write down the cost prices plus the margin for each stock item you will sell, and the selling price 1. Overalls /Cost price: R28. 00 / Mark-up: R43.00 = R75 2. Church Uniforms / Cost price: R192.50 / Mark-up: R207.50 = R400 3. School Uniforms / Cost price: R68.00 / Mark-up: R72.00 = R140 4. Track suit / Cost price: R79.55 / Mark-up: R100.45 = R180 5. Tie / Cost price: R31.20 / Mark-up: R33.80 = R65

Is this competitive? Will customers pay this much? Do the margins need to be adjusted? By how much? Yes, it is very competitive and exciting. No, it does not need adjustment.

Now, set a target. How many items for each product need to be sold on a daily (and monthly) basis to be profitable? Daily - from 9 to 20 items Monthly - bulk of 100 - 180 per month


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


Item

Daily Target

Monthly Target

Cost Price

Margin

Selling Price

Total per Month

Overalls

9 to 20

100 to 180

R28.00

R43.00

R75.00

= R750 - R13500

Church Overalls

9 to 20

100 to 180

R192.50

R207.50

R400.00

= R40000 - 72400

School Uniforms

9 to 20

100 to 180

R68.00

R72.00

R140.00

= R14000 - 25200

Track Suit

9 to 20

100 to 180

R79.55

R100.45

R180.00

= R18000 - 32400

Tie

9 to 20

100 to 180

R31.20

R33.80

R65.00

= R6500 - 11700


What trends are included in the projections? 1. When we buy prices can change. There we should always budget for the highest possible prices. 2. Transport cost can also change. 3. Always payment for loan must be available. 4. For Easters, winter, festive. There is always great demand of item. Customers order in bulk, therefore - Our stock should be available - Prices needs to be affordable - specials must enter the market.

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. Wake up 05h00 to get ready 05h30 get the stock available and the machines ready. 05h00 - 06h00 all patterns and the material are tightened by need and cut according to measurements. 06h00 - 08h00 sewing starts, putting material together. 08h00 - 16h00 sales 16h00 - 17h00 clean machines 17h00 - 18h00 get new order ready for the following day.

Who will act as backup should the person responsible not be there? What do they need to act as backup? Responsible son Cash sales and taking orders Keep the stock safe and neat Record keeping of sales.

What weekly processes need to be performed? Who is responsible, who is backup and what tools are required? Packing of stock and finished products. Sale of finished products Purchasing the needed stock Responsible - my son Back-up - my son Tools: Books for recordings Extra keys Oil spray to spray the equipment.

What monthly processes need to be performed? Who is responsible, who is backup and what tools are required? Stock purchasing Stock packing Sales Taking orders Delivery of orders Maintaining and cleaning of the premises.

What is the schedule for training and motivating staff? Honesty Stick to the work place codes of conduct Be positive with the staff members Upgrade training when necessary Visit fashion shows to learn more

What processes are required for maintenance and new product creation? Who is responsible and what tools do they need? Check the new needs of the market Put profit into the business for sustainable growth Make new product available to the market Always buy quality material for quality products.


Before beginning Edit

What major laws concern the business, and which government departments should be called to keep up to date (list phone numbers)? Municipal by-laws and regulations of traders Our local Mossel Bay municipality is responsible Tel: 044 - 601 5570

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