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? Household wiring and repairs of household electrical appliances, such as fridges, washing machines etc.
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 testing of wires, motors,elements tec. The abiity to differenciate between wires, and understanding the circuit breaker. Client does have lots of experience within the business.
What tools or equipment are needed? Where can they be bought, and how much will they cost? Crinner, Tester, meters, screw drivers, hammers, chissels. Most of the tools and equipment are in the possession of the client. Only need a crimmer and multimeter available at local shop.
- Drill R250
- Bender R200
- Step ladder R300
- available at De la Rey
How much space is needed to work from? Client is currently working from home.
Where will the space be found, and how much will it cost to rent? Does not pay rent as client is working from home
- In his garage
What sort of people will buy the product? Who are they and where do they live? All sorts of people from the community an surrounding areas. They have been making use of the service as my experience is well known.
How much and how often will they buy? Will they come to the shop or will it be necessary to deliver? Peole make use of the service on a regular basis. They usually come to my house.
- Those who work expect deliveries
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.
What major competitors will attract clients' spending away from the business' products? One other coloured driven business in the area. Name not mentioned.
- Workshops in town(Somerset Mall)
What prices and products do these companies have? They render the same service at reasonable prices at very high quality
What makes them popular / unpopular? They have been running a while, the only coloured electrician operating in the area. Very accessible and serves high quality.
- They are popular because they have been in business for a long time, they also do new instalations
What do they do to attract customers? Specials? Interesting marketing / advertising? Their quality of service attracts people to them and also their experience within the community.
Which of the competitors stand out as being particularly good at what they do?
FOX ELECTRO - They have qualified personnel and marketing plan was professionally done.
What can be done to stand out against them? What can be done that is more exciting / more interesting? Reasonable prices will be worked out, and easy payment terms. Guarentees will be given to customers and regular visits can be made to find out if customers are satisfied with services rendered.
- Offer excellent service, low prices, handling customers complaints
- Alway being available when needed
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 majority of the community. Consistency is of the utmost importance as it will serve as attraction to my business.
- From working people to pensioners
How seasonal or fashion-dependent are their buying habits (do they buy only in summer, only over Christmas, etc.)? This business will run through the year, all seasons.
Do the clients want the products to be the cheapest or the best (low price / low quality or high price / high quality)? Customers expec high quality at a low price type of service
How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest?
By the quality of the service rendered. We will advertise our business on notice boards and will put up a sign in front of the workshop.
Do the clients want the same things sold in the same way, or do they want things to change 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? Don't need a first client as I am currently in business.
- 10% off normal price for the first few clients.
The business inputs and outputs Edit
List all of the inputs (products that are required to produce the products): Crinner, Drill, wires, testers, meters, hammers, chizzles, saw, screw drivers, plyers, side cutters, tape measure, nails
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):
What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)? House wiring depending on the size of the house (4 bedroomed) cost price R2000 Margin R7000 Selling Price R9000
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 no shelf life.
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): Promoting the business amongst community members. and purchasing a few tools.
How long will it take to get all of these things and how much will they cost to get? Two days
List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages): Electricity Telephone
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)? One employee, he will be paid according to the job he will be involved in.
What training will they need, how long will it take and how much will it cost? No training needed.
The manufacturing or production process Edit
List every step, from start to finish, to produce the product Wiring a house (4 roomed) Investigate how big the job will be Buy raw materials Cut walls to accommodate pipes and wiring Fitting plugs, switches and circuit breaker boards Testing of wires Finally switch on power supply
Repairs Detect problem Repair Testing
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): Wiring on house - Plannning activities, giving tasks to employee and providing toos and equipment - owner Repair - owner - Detect the problem, delegating and completing the task - employee
What possible problems may happen during each step of the manufacturing process? Employee might not be fit to complete task (sick,absent) Break down of tools and equipment Not able to fix the problem (product cannot be fixed) Run out of stock (wires and pipes)
What solutions can be identified for these problems? How much will they cost and how long will they take to fix? Have a back up employee check toos and equipment on a regular basis Send product back to owners Buy sufficient stock
What is the maintenance program for all the equipment? Daily checking and cleaning equipment, renew equipment annually.
What safety requirements are important for production? Switching off electricity Securing safety of employee Protective clothing
How will quality control and client feedback be handled? Ask questions from customers and put their responses on paper for other customers to read.
Costing and bookkeeping Edit
How many of each of the stock items can reasonably be sold each day (and month)? Repairs can be done on a daily basis, house wiring is done on tender.
Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)?
No, but services are required regularly
What sort of pricing strategy will be chosen (cheapest or best)? Best Price strategy is followed with quality services. Sufficient tie and effective competitiveness.
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
Is this competitive? Will customers pay this much? Do the margins need to be adjusted? By how much?
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:
Total per Month
X x number of working days in a month
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. Will start at seven in the morning. Booking in staff member. Plan activities for the day, delegate tasks to staff member. Look for new oppertunities. Owner will be responsible for all these.
Who will act as backup should the person responsible not be there? What do they need to act as backup? The staff member, this person only need to have knowledge on how I normally run my business.
What weekly processes need to be performed? Who is responsible, who is backup and what tools are required? Regular bookkeeping, Look for new contracts. Get feedback from customers. Getting cost prices from suppliers and keep up to date. Owner will be responsible. Interpersoal skills will be required.
What monthly processes need to be performed? Who is responsible, who is backup and what tools are required? Monitoring of the finances of the business, work on ways to increase profits, Improve price strategies to keep up with competitors. Employee will be back up.
What is the schedule for training and motivating staff? Don't have anything in place
What processes are required for maintenance and new product creation? Who is responsible and what tools do they need? To aquire training in this field and find skilled workers. Visit existing competitors and getting knowledge of hte equipment necessary to do this particular job. I will be responsible for all the above and am considering car electronics.
Before beginning Edit
List some of the support services available (legal, business and other) that might be needed Local business centres and red doors
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)
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)