The Thousand Rand Challenge Business Plan Template Edit

Name and Contact details of client:

Malibongwe Mazitshana 59 Cedile Street Kwanonqaba Mossel Bay

Description of the business Edit

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

Admin Work: I will do printing of CV's, business cards, invitation cards, party and funeral programmes, letterheads, calendars, stationary, etc.

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

Marketing and computer skills.

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

The equipment I will need most are: (I already have my own computer)

  • Photocopying and printing machine R300.00
  • Chair R49.00 and table R100.00
  • Papers A4 R200, A3 R200, A6 R50.00

How much space is needed to work from?

Enough space to do my work.

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

It will be rent-free because it is my home and electricity is R100.00 per month.

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

Everyone from my community and businesses, schools and government organisation in Mossel Bay.

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

Right troughout the year. Communities will come to my work place of business. Clubs will come to my work place. I will deliver to businesses, churches, schools and government organisations.

Upstream Businesses Edit

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

  • Checkers - Paper etc.
  • Telkom - telephone and Internet
  • Mikeva- chairs
  • Lloyds- table

Downstream Businesses Edit

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

  • Schools
  • Churches
  • Clubs
  • Government organisations in Mossel Bay

Competitors Edit

What major competitors will attract clients spending away from the business products?

  • Postnet
  • Siyavuka Printers

What prices and products do these companies have?

Expensive - CV’s R7 per page Letterheads R6.50 We do the same services to the public.

What makes them popular / unpopular?

The thing, which makes my competitor popular, is that they don't have competitors. They are well known and been in business a long time.

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

They do advertising to attract customers. They are at good business "spots".

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

No one at the moment

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

To stay focused and have good services to the clients and have special prices. I will be close to my customers and I know the people and the community better than my competitors.

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)?

  • Businesses
  • Churches
  • Schools
  • Clubs
  • Community
  • Government organisations

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

It is not seasonal or fashionable it runs right through the year.

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

My clients wants the best quality and they can afford my prices because I'm very cheap and competitive because of my low overhead I can give good quality at good prices.

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

They decide to buy the product when it is advertised. When they see posters or adverts. They quality of my work will attract them: I will go from door-to-door to sell my services.

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 good services every time.

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

Advertising, add more services and I will ask all the 1000 x 1000 Candidates to become my first clients. They all need my services and in Mossel Bay I have access to 24 potential clients immediately.

What will the business be called? Why?

Ncedanani Printing. It is because it helps the community.

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

Computer (I have one)

  • Table and other office furniture
  • Stationary
  • Photocopying and printing machine
  • Paper, etc.

List all the suppliers for the inputs:

  • Checkers
  • Telkom
  • Mikeva
  • Lloyds
  • Dotcom

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

  • CV's
  • Posters
  • Letterheads
  • Pamphlets
  • Invitation and Business cards
  • Funeral and party programs
  • Calendars

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

Product: Selling Price: Total Cost: Profit: CV R10.00 [3pages] Posters R1 500.00 [500 posters] Letterheads R5.00 each Pamphlets A4 R500.00 [500] Invitation cards R5.00 each Business cards R200.00 [20 cards] Funeral programs R1 500.00 [500] Party programs R1 500.00 [500] Calendars R15.00 each Pamphlets A3 R1 000.00 [500] Labour R70 Other R20

This is admin work and the prices I charge is as follows:

My stationary cost R148.46, papers 5000 inside box A4 and A3. Business cards cost R0.40 each but I buy 50 it’s include in stationary. The "other" is for transport.

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, only time frames. This mean I will have deadline when things must be finished.

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):

Advertising. Short list of "first" clients I also need to have a computer, photocopier, printing machine and stationary.

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

It will not even take a week. It will cost R50.00 to game in George and R8.00 to Voorbay to Stationary Brokers. The machines cost me R300 but it is second-hand. List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages):

Electricity R100 per month. Advertising R200 per month - posters, flyers and pamphlets to advertise.

Total amount for fixed costs: R300.00

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 this moment my business is still new so I don't need to employ anyone.

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

No training needed at the moment maybe at a later stadium when needed.

The manufacturing or production process Edit

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

The first thing I have to do is to buy a box of papers. To unpack them and store them in my storage room. Put the paper in the printer and some in the photocopier machine. Make sure that my spare papers and ink is enough and always available.

  • Unpack my papers
  • Typing of document
  • Price every item by its price
  • Count how many items I have sold and count how many papers I have been wasted.

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

  • Keep stock
  • Double-check the work before printing.
  • Process 1: To pack papers
  • Process 2: Putting papers on machine
  • Process 3: Printing and typing process
  • Process 4: Pricing process
  • All done by myself

What is the maintenance program for all the equipment?

To have a service for my computer, printer and photocopier machine every six months.

What safety requirements are important for production?

To make sure that hands are dry when I touch my plugs. Keep children or clients away form my computer and printer. To always keep my equipment clean. To always keep my workplace clean.

How will quality control and client feedback be handled?

I will upgrade my quality control or empower myself with more IT knowledge. Will also have a comment book whereby clients will write down their comments. I will always be polite and the client is always right.

Costing and bookkeeping Edit

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

CV R10.00 [3pages] Posters R1 500.00 [500 posters] Letterheads R5.00 each Pamphlets A4 R500.00 [500] Invitation cards R5.00 each Business cards R200.00 [20 cards] Funeral programs R1 500.00 [500] Party programs R1 500.00 [500] Calendars R15.00 each Pamphlets A3 R1 000.00 [500] Labour R70 Other R20

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

This type of business is not seasonal it runs through the year because there is a big demand for this service.

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

Best pricing strategy.

What profit margin will be chosen for the products?

Stationary: cost price R188.46 Mark-up = R3 531.54

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

CV R10.00 [3pages] Posters R1 500.00 [500 posters] Letterheads R5.00 each Pamphlets A4 R500.00 [500] Invitation cards R5.00 each Business cards R200.00 [20 cards] Funeral programs R1 500.00 [500] Party programs R1 500.00 [500] Calendars R15.00 each Pamphlets A3 R1 000.00 [500] Labour R70 Other R20

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

I am very competitive. So I don't need to adjust margins or it's not necessary to be adjusted. Yes: The 30% mark-up is excellent.

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

CV's Posters Pamphlets Programs Letterheads Business Cards Invitation cards and calendars Minimum sales per day to cover all cost is 13 sales at cost = (50) service fee (50) TOTAL R100.00 Target however 26 sales p/day at R136.70 each Daily - 15 items on each Monthly - 350 items

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

CV R10.00 [3pages] Posters R1 500.00 [500 posters] Letterheads R5.00 each Pamphlets A4 R500.00 [500] Invitation cards R5.00 each Business cards R200.00 [20 cards] Funeral programs R1 500.00 [500] Party programs R1 500.00 [500] Calendars R15.00 each Pamphlets A3 R1 000.00 [500] Labour R70 Other R20

What trends are included in the projections?

Purchase prices can change. Sales can decrease. Transport costs can vary. Total sales increase every month. The equipment is currently on special all-in-one machine for R300.00 The stock included ink, paper, etc. The office furniture can be taken on a lease basis i.e. R340 p/m x 7. I made provision for my own salary and the business is still showing a profit.

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

Check machinery and make sure there is enough paper, ink etc. Start to work on my orders for the day and make sure they are accurate and correct. Deliver my work to clients on time.

Who will act as backup should the person responsible not be there? What do they need to act as backup?

My brother will act as backup. I will train him how to use the computer or I will teach him computer skills.

What weekly processes need to be performed? Who is responsible, who is backup and what tools are required?

To make sure that stationary is available. Have to make sure my ink is enough. No tools required.

What monthly processes need to be performed? Who is responsible, who is backup and what tools are required?

I have to check or to do my bookkeeping. I have to make sure that I ordered enough stationary and ink. I will send my brother to go and buy the stationary and ink. There are no tools required. What is the schedule for training and motivating staff?

I will provide training, the training I will provide will be done daily. I will motivate him by paying him.

What processes are required for maintenance and new product creation? Who is responsible and what tools do they need?

To repair my computer, printer and photocopier machine. To introduce new services to my clients The person who is going to be responsible for maintenance is computer technician. To me there is no need for tools because it’s not me who is doing maintenance.

Before beginning Edit

What major laws concern the business, and which government departments should be called to keep up to date (list phone numbers)?

To register my business to Department of Trade and Industry so that my business will be recognised all over South Africa. To register for tax in South African Revenue Service.