Appendix 1 Lonsdale Transport services

General information

History

Lonsdale Transport services Couriers is a courier company that has been operating in Queensland for the last 15 years. Their primary business function is delivering medium- to large-sized packages across metropolitan Queensland(QLD) (Brisbane). The business has a good reputation in the marketplace for reliability and value for money.

After a slow start entering the competitive delivery market, Lonsdale Transport services has built a solid reputation over the past 12 years, and this has been reflected in their growth and profit margins.

Lonsdale Transport services primarily targets small- to medium-sized business which make up 80% of their customer base. They are limited by their geographic location, as they currently do not deliver outside of the metropolitan area.

The company has been marketed through direct sales, telephone, internet listings and mail-outs. Through a program of telephone follow-up to ensure customers ongoing satisfaction with the business, Lonsdale Transport services has an admirable 87% retention rate for existing customers.

Although sales and profits have increased each year by an average of 5%, the owners are looking to move forward by delivering to regional areas in QLD.

Organisational structure

The organisation is family owned, with three family members acting as a management board and responsible for approving all business decisions.

Managing Director responsible for daily operational management decisions.

Logistics Manager responsible for the scheduling of the trucks and drivers.

20 truck drivers.

five office support employees responsible for administration, accounts, human resources and sales.

Strategic plan goals

The organisations strategic goal is to grow the business and increase business profits over the next three years by expanding delivery routes to include regional QLD.

Operational plan goals

Lonsdale Transport services will:

commence deliveries to regional QLD within 12 months

increase sales by 40% in the next three years.

Background

The owners of the business are not risk takers. They are aware that their ongoing success is the result of a small, experienced team, close personal ties with clients and a reputation for reliable, low-cost service. Moving forward, their vision for the company is to retain those strengths and core values through any expansion process.

The strategic and operational plans were developed as a result of external market research, indicating a shortage of delivery organisations providing services to regional QLD towns. Lonsdale Transport services Couriers were looking for their next growth opportunity and saw that this was an ideal opportunity to be seized upon.

It was also felt that the company was now sufficiently stable and experienced, and in a financial position to expand the business without risk to their current financial stability or reputation.

Reports from the Sales Manager indicated that contracts have been lost because some clients want to engage a courier who can deliver to their regional offices. Lonsdale Transport services is currently unable to meet this demand and therefore some potential clients have been lost. This became a motive to expand operations for both financial and customer service reasons.

Proposed strategy

Lonsdale Transport services Couriers currently allocates two drivers per truck to ensure that drivers are able to load and unload heavy packages. The strategy going forward is to remove the need for two drivers per truck by installing an automatic lift gate on the back of each truck, at a cost of $10,000 per truck. This will mean that only one driver is needed per truck, as no heavy lifting will be required.

This will allow Lonsdale Transport services Couriers to purchase 10 new trucks and use the existing drivers for regional routes. Each new truck will cost $60,000 (including installation of an automatic lift gate). The money to purchase the trucks will be borrowed from the bank on a business loan.

Financial information

Annual sales

Current sales Estimated sales (yr 1)

$17 million $22 million

Annual net profit

Current net profit Estimated net profit

$1.9 million $3.2 million

Increased costs

Loan repayments Operating costs (fuel, servicing, etc.)

+$200,000 per annum +$2.2 million

Administrative costs Labour costs

+$100,000 Nil

General information

The company communicates with employees via email for head office employees, and a printed monthly newsletter for drivers. The company provides information regarding policies and procedures through employee manuals that are kept in each truck. Office-based staff can access copies of these manuals in the office.

All trucks are fitted with a GPS system to assist drivers in navigating to each pick-up and drop-off location. Trucks are also assigned a PDA that provides drivers with the details of each delivery, and records when a job starts and finishes. The data from this device is sent back to head office to complete productivity reporting. When this device was introduced, drivers were not happy as they felt it meant that the organisation did not trust them to manually record the time spent on each job. Many drivers also resented having to learn how to use the device and thought it was a waste of time.

Head office employees work very closely together as a coherent and motivated team. They are generally positive about the organisational direction and respond well to change.

Drivers are currently happy with the work environment, as they enjoy working as part of a two-person team. The Logistics Manager typically leaves the drivers alone to do their job as this is what seems to make them happy. In the past, supervisors and HR have tried to encourage drivers to participate in organisational activities, but this was not well received the drivers complained and asked not to be involved. The drivers view is that their team is the two-person driver team, and they seem to like the comforts of that working environment.

Drivers are typically negative about change. They have, in the past, done their best to block any changes from being implemented, even going to the lengths of threatening strike action and getting the union involved to assist in resolving the issue.

Summary of current employee populations

Head office employees:

covered under individual contracts

salary range $32,00075,000 per annum

small team of mainly male employees, with a wide range of ages

many opportunities to participate in learning and development programs due to management support; however, have shown little interest

high employee engagement scores, citing teamwork and opportunities have contributed to the companys success as real motivators.

Drivers:

covered by an award

salary $45,000 per annum

heavily unionised

employee demographics are all male employees, aged 2565.

few opportunities to participate in learning and development programs due to being on the road; however, have shown very little to no interest

large number of workplace injuries due to heavy lifting

low employee engagement scores, citing pay as an issue

currently experiencing low turnover

history of industrial disputes regarding pay and other change initiatives

Appendix2: LONSDALE FURNITURES Warehouse case studyYou have been provided with the following information pertaining to the operations of LONSDALE FURNITURES Warehouse and the actions of the Warehouse Manager, David.

Current performance

Area Current performance Performance target to achieve 10% productivity improvement

Time

Average order processing time 80 minutes 72 minutes

Cost

Average cost to process an order $200.00 $180.00

Quality

Error rate 10% Less than 1%

Production

Average number of orders processed per day 50 55

After implementing his strategy to monitor and evaluate performance, David has identified the areas that require corrective action. David knows that in order to do this, he must first complete a more detailed analysis of the warehouse systems and processes, and identify the specific steps required to improve productivity.

Systems

Two years ago, the warehouse implemented a custom-built electronic warehouse management system (WMS) which has had an enormous impact on productivity. When completing his review, David asks the following questions to ensure that the system effectively supports warehouse operations:

Has the warehouse achieved the productivity goals to be delivered by this system?

What is the occurrence rate of the system being out of order and impacting on the packing of orders?

How long does it take to train new staff members to use the system?

How do the employees who use the system rate its ability in assisting them to process customer orders efficiently?

David also uses the system to generate a series of reports that allow him to analyse warehouse systems and processes. The reports details:

number of orders packed per hour, per day

time required to pack each order

number of packers per order

number of boxes per order.

David also documents the process (from order receipt to dispatch) to assist with his analysis, and to help him to understand the exact process followed in packing an order.

David also completes the following SWOT analysis to assist with his review.

Warehouse order processing systems and process

Strengths:

Warehouse Management System automates administrative components of the process.

Simple process for packing and distributing customer orders.

Good orientation and induction programs for new staff, to ensure they get up to speed quickly. Weaknesses:

Absenteeism.

Warehouse layout stock difficult to access.

Warehouse supervisors are all junior and new to management roles; they require intensive coaching and support from Warehouse Manager.

Opportunities:

Warehouse extension to facilitate better layout.

Preferred supplier arrangement to be established with temporary workforce supplier, to ensure provision of temporary labour. Threats:

Forklift licence requirements mean that not all staff can drive a forklift.

The above requirements also require staff to have time away from packing floor to attend training.

Industrial action from union members due to lack of licensed forklift drivers.

Performance measures and assessment tools and techniques

At the commencement of the performance year, David tasked his management team to complete balanced scorecards for all warehouse team members and record the key result areas (KRAs) and key performance indicators (KPIs) for each role. This was to ensure that all warehouse employees understood the performance measures for their role.

Scorecards were last accessed two months ago to complete annual performance reviews.

David contacted the Human Resource Manager to obtain a report detailing the KRAs, KPIs and performance ratings for all warehouse employees. He wants to evaluate the performance review process and the effectiveness of these measures in assisting the warehouse to achieve its operational plan goals.

Upon reviewing the report provided by Human Resources, David discovered:

Only 80% of employees have documented KRAs and KPIs 20% of employees do not know what performance level is expected of them.

KPIs are not aligned with warehouse goals employees are not clear on what the warehouse is trying to achieve.

Majority of KPIs are not written using SMART format they are not providing employees with clear expectations on what needs to be achieved and by when.

Performance ratings indicate that 50% of employees exceeded performance expectations for the last performance year, which is inconsistent with warehouse end-of-year results (the warehouse did not achieve its operational plan goals last performance year).

Performance reports

As Warehouse Manager, David is tasked with the following human resource KRAs:

Warehouse

Human Resources Scorecard

Key result area Metric

Absenteeism 3%

Turnover 8%

Long service leave liability $2.0 million

Annual leave liability $1.5 million

Employee engagement 85%

Employee attended training sessions 45

Warehouse Human Resources Monthly Performance Report

Report name Human Resources Monthly Report

Department Warehouse

Period 201X Year to Date

Key result area Target Actual

Absenteeism 3% 3.9%

Turnover 8% 9.2%

Long service leave liability $2.0 million $1.8 million

Annual leave liability $1.5 million $1.2 million

Employee engagement 85% 83%

Employee attended training sessions 45 32

Identifying trends

To assist David in understanding the warehouse operations, and to identify where he can make improvements to achieve performance objectives and measures, David graphs the number of orders processed and absenteeism for each month over the last year.

-571969-62003600-2309595-11887200020605756373350Learner Assessment Pack

00Learner Assessment Pack

20834357474730BSBOPS601

00BSBOPS601

2908705628332502227580744814600

24171977000765Develop and Implement Business plans

00Develop and Implement Business plans

Lonsdale Institute

Level 1, 277 Flinders Lane Melbourne VIC 3000

Email: info@lonsdaleinstitute.edu.au

Website: www.lonsdaleinstitute.edu.au

Melbourne | Sydney | Bondi

RTO 21915 | CRICOS 02836F

BSBOPS601- Develop and Implement Business plans (Release 1)

Overseas Student Information

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No part of this resource may be reproduced in any form or by any means, electronic or mechanical, including photocopying or recording, or by an information retrieval system without written permission from Lonsdale Institute. Legal action may be taken against any person who infringes their copyright through unauthorised copying.

These terms are subject to the conditions prescribed under the Australian Copyright Act 1968.

Declaration of authenticity

I, the above-named student, confirm that by submitting, or causing the attached assignment (and any additional attachment associated with it) to be submitted, to Lonsdale Institute Pty Ltd, I have not plagiarised any other persons work in this assignment and except where appropriately acknowledged, this assignment is my own work, has been expressed in my own words, and has not previously been submitted for assessment.

I do understand and accept the consequences of academic misconduct according to Lonsdales Policies and Procedures.

Additionally

I have read:

The submission and assessment completion instructions in Moodle

The assessment task completion instructions in this document

I have sought clarification from my trainer and assessor, if needed

I understand my rights and obligations under Lonsdales policy and procedures

Due Date See Training Log and Moodle

Student Name Student ID LON0000

Version Control & Document History

Date Summary of modifications Version

June 2021 Version 1.0 final produced following assessment contextualisation 1.0

Table of Contents

TOC o "1-4" h z u Assessment Delivery PAGEREF _Toc74746052 h 5Learner Information PAGEREF _Toc74746053 h 6Reasonable Adjustment PAGEREF _Toc74746054 h 7Resources Required for Assessment. PAGEREF _Toc74746055 h 8Assessment Tasks PAGEREF _Toc74746056 h 10TASK 1 Short Answer Questions PAGEREF _Toc74746057 h 12Task 2: Establish business plan PAGEREF _Toc74746058 h 16Submission checklist PAGEREF _Toc74746059 h 16Comments, declaration and signature PAGEREF _Toc74746060 h 17Task 3: Implement business plan PAGEREF _Toc74746061 h 19Task 4: Respond to performance data PAGEREF _Toc74746062 h 21Review the case study information about the Lonsdale Furniture Warehouse (Appendix 2) and answer the following questions. PAGEREF _Toc74746063 h 21

Learner Assessment Pack

Assessment Delivery

Learner Information

This Learner Assessment Pack is designed for you to complete the assessment for BSBOPS601- Develop and Implement Business plans (Release 1). It may refer to your own workplace/organisation, or to a simulated business provided by your assessor.

The assessment tasks include Short Answer Questions where you need to demonstrate your knowledge and understanding of the unit, and the Practical Assessment, where you need to demonstrate your skills required in the unit. It is recommended that you complete the Practical Assessments in your own workplace/organisation. If you dont have access to a real workplace, you can complete the assessment in a simulated environment where resources and conditions similar to a workplace must be accessed. Ensure to discuss this with your assessor prior to commencing with the assessment.

Reasonable Adjustment

Adapted Reasonable Adjustment in teaching, learning and assessment for learners with a disability - November 2010 - Prepared by - Queensland VET Development Centre

Reasonable adjustment in VET is the term applied to modifying the learning environment or making changes to the training delivered to assist a learner with a disability. A reasonable adjustment can be as simple as changing classrooms to be closer to amenities or installing a particular type of software on a computer for a person with vision impairment.

Why make a reasonable adjustment?

We make reasonable adjustments in VET to make sure that learners with a disability have:

The same learning opportunities as learners without a disability, and

The same opportunity to perform and complete assessments as those without a disability.

Reasonable adjustment applied to participation in teaching, learning and assessment activities can include:

Customising resources and assessment activities within the training package or accredited course

Modifying the presentation medium

Learner support

Use of assistive/adaptive technologies

Making information accessible both before enrolment and during the course

Monitoring the adjustments to ensure learners needs continue to be met

Assistive/Adaptive Technologies

Assistive/Adaptive technology means software or hardware that has been specifically designed to assist people with disabilities in carrying out daily activities (World Wide Web Consortium - W3C). It includes screen readers, magnifiers, voice recognition software, alternative keyboards, devices for grasping, visual alert systems, digital note-takers.

IMPORTANT:

Reasonable adjustment made for collecting learner assessment evidence must not impact on the standard expected by the workplace, as expressed by the relevant unit(s) of competency. For example, if the assessment were gathering evidence of the learners competency in writing, allowing the learner to complete the assessment verbally would not be a valid assessment method. The method of assessment used by any reasonable adjustment must still meet the competency requirements.

Resources Required for Assessment.To complete the knowledge Assessment tasks, you will require access to:

For this assessment, learners will need access to:

Internet and a computer

For the practical assessment, learners will need access to:

a case study

Relevant workplace documents and financial information

Business plan template

Two(2) people (can be role played by your friend/family member) to conduct stakeholder interviews

Assessment Conditions Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.

This includes access to:

business information and data relevant to performance evidence

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.

End of Assessment Agreement

Learner Assessment Pack

Assessment Tasks

Tasks

Answer the following questions and write your answers clearly in the spaces provided. All questions must be answered correctly, and you must provide enough detail to demonstrate your knowledge. If you require more space to record your response, attach a page clearly marked with your name and the unit title.

Your responses should be submitted in written format (or in another format as agreed with your assessor) and must be in your own words. Your assessor will ensure that you have been provided with all relevant documentation.

TASK 1 Short Answer Questions

What are the organisational frameworks may be related to development of a business plan?

list at least 3 of organisational frameworks

Explain why the pre-existing organisational frameworks will affect your business plan?

Give an example where you take one of the organisational frameworks into account when developing a business plan.

What are the legislative frameworks you need to consider before developing a business plan?

list at least 3 and be more specific if they are State and Territory based legislation.

You are writing a business plan for your Bed and breakfast business at your home in King Valley VIC, where you get lots of tourist during public and school holidays.

You have already registered your ABN for the business and the business name is the same as the registered company name.

You will advise or promote your business via both local flyers and the internet. You will also send e-Newsletters to your clients monthly.

You need to be familiar with relevant WHS issues, such as first aid, manual handling.

You will play some background music in the dining room.

You need to keep your clients personal information.

The business will only employ you and your partner at the beginning. Other family members may get involved later.

The business will provide some gift baskets to clients on arrival including alcohol.

Please list 5 legislations you need to consider.

Outline the processes of developing a business plan.

for a new business.

for an existing business

Outline the processes of monitoring business plans

In your own words, explain what the customer needs are. How do you identify customer needs?

Explain the main information that should be included in budgeting information.

Performance objectives and measures

Explain what the Key Performance Areas (KPAs) are? Give an example from your experience.

Explain what the Key Performance Indicators (KPIs) are? Give an example from your own experience?

Refer to Q2. List FOUR (4) potential stakeholders who will be relevant to a business plan. Ensure you consider both internal and external stakeholders in your response.

Internal Stakeholders External Stakeholders

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This page is Intentionally Left Blank

Task 2: Establish business plan

Part A Business plan

Read the case study you have been given as Appendix 1- Lonsdale Transport services s

Analyse and research the business vision, mission, values, objectives, goals competitors, financial targets, management arrangement and marketing approaches from the case study s

Consultations

Discuss your findings from case study Lonsdale Transport services with 2 people .You need to conduct 2 face-to-face interviews with Two (2) of your Stakeholders (can be role played by your friend/family member)and you need to record video on mobile phone and upload it on Moodle for your trainer to observe your performance based on observation checklist (see below)

Record your stakeholders responses in writing.

Write a business plan based on the information gathered from Step 1 to 3. The business plan template is available on Moodle (Appendix 3).s

Submission checklistFor this part, you must submit:

the completed business plan Appendix 3.0

Date Assessor/Supervisor initials Observation number 1 Assessor comments

Satisfactory/Unsatisfactory S U During the presentation, the student

Provided an overview of the business, its mission, values and objectives. Discussed potential performance objectives and measures. Used language and features appropriate to audience Used active listening skills to elicit others view and ensure understanding Used open and closed questions to elicit others view and ensure understanding Comments, declaration and signatureAssessor comments Assessment venue Assessor name Assessor declaration I declare that all requirements in Assessment Task 2 have been satisfactorily completed and verbally authenticated if required.

Assessor signature Date

-28956029527500Task 3: Implement business plan ASSESSMENT INSTRUCTIONS

Review the business plan you completed in Assessment Task 2. Identify three key performance objectives at least one financial objective.

For each performance objective, explain how you will measure progress and results (i.e., KPIs). Include timeframes of measurement (i.e., deadline/s for improvement).

Explain how you will test the performance measurement systems describe above, including

acceptable levels of variance to planned objectives

the timeframe of each performance check

benchmarks to be used

potential reports may be involved

potential refinement to be made if performance objectives are not met.

Explain how system failures will be identified and what steps will be taken to report them.

Explain how you will ensure you have the required human resources and skilled labour available with the right skills and knowledge to implement your business plan. Including any coaching or training that may need to be provided to ensure skilled labour.

TASK 4 Respond to performance data

-32956540640000Task 4: Respond to performance data ASSESSMENT INSTRUCTIONS

Review the case study information about the Lonsdale Furniture Warehouse (Appendix 2) and answer the following questions. s

Compare the current performance against desired performance levels, and identify the corrective actions required to achieve the business plan goal of improving warehouse productivity by 10%.

What corrective actions do you recommend for each performance improvement, and why (e.g., interim, adaptive, corrective, preventative or contingency)?

Area Required corrective action

Time

Average order processing time Cost

Average cost to process an order Quality

Error rate Production

Average number of orders processed per day Critically analyse the performance against planned objectives.

Identify areas of non-performance.

Review the performance indicators. Are the performance indicators suitable and effective? What changes might be required to achieve organisational goals?

Develop a training and development strategy to address under-performance of any individuals or teams. Include strategies for both coaching and training. Your strategy must include a method for identifying training needs.

Develop a strategy that could be used for reviewing system processes and work methods at Lonsdale Furniture Warehouse as part of continuous improvement. Include timelines and be as specific as possible.

sssss

business.gov.au

Business Plan templateA good business plan can help you secure finance, define the direction of your business and create strategies to achieve your goals. The business.gov.au Business Plan template steps you through the process of creating a solid, well-structured plan tailored to your business.

New! Create your business plan on your tablet by downloading our free MyBizPlan tablet app. Visit www.business.gov.au/apps now!

Copies of the latest version of this template and the guide can be downloaded from www.business.gov.au/businessplan.

If you need further information, assistance or referral about a business issue, please contact business.gov.au on 13 28 46.

Using this templateBefore you complete this business plan template and start using it, consider the following:

Do your research. You will need to make quite a few decisions about your business including structure, marketing strategies and finances before you can complete the template. By having the right information to hand you also can be more accurate in your forecasts and analysis.

Determine who the plan is for. Does it have more than one purpose? Will it be used internally or will third parties be involved? Deciding the purpose of the plan can help you target your answers. If third parties are involved, what are they interested in? Although dont assume they are just interested in the finance part of your business. They will be looking for the whole package.

Do not attempt to fill in the template from start to finish. First decide which sections are relevant for your business and set aside the sections that dont apply. You can always go back to the other sections later.

Use the [italicised text]. The italicised text is there to help guide you by providing some more detailed questions you may like to answer when preparing your response. Please note: If a question does not apply to your circumstances it can be ignored.

Download the Business Plan Guide. The business plan guide contains general advice on business planning, a complete overview of the business plan template and a glossary explaining the main terms used throughout this template.

Get some help. If you arent confident in completing the plan yourself, you can enlist the help of a professional (i.e. Single Business Service, Business Enterprise Centre, business adviser, or accountant) to look through your plan and provide you with advice.

Actual vs. expected figures. Existing businesses can include actual figures in the plan, but if your business is just starting out and you are using expected figures for turnover and finances you will need to clearly show that these are expected figures or estimates.

Write your summary last. Use as few words as possible. You want to get to the point but not overlook important facts. This is also your opportunity to sell yourself. But dont overdo it. You want prospective banks, investors, partners or wholesalers to be able to quickly read your plan, find it realistic and be motivated by what they read.

Review. Review. Review. Your business plan is there to make a good impression. Errors will only detract from your professional image. So ask a number of impartial people to proofread your final plan.

For advice and examples on how to complete this template, please download the business.gov.au Business Plan guide from www.business.gov.au/businessplan.

Scan to watch our business planning video:

[INSERT YOUR BUSINESS LOGO]

[Your Name]

[Your Title]

[Business Name]

[Main Business Address]

ABN: [ABN]

ACN: [ACN]

[Business Name]

Business Plan

Prepared: [Date prepared]

Contents

TOC o "3-3" t "Heading 2,1,Heading 3,2,Heading 4,3" Business Plan template PAGEREF _Toc377110840 h 1

Using this template PAGEREF _Toc377110841 h 2

Business Plan Summary PAGEREF _Toc377110842 h 4

The Business PAGEREF _Toc377110843 h 4

The Market PAGEREF _Toc377110844 h 4

The Future PAGEREF _Toc377110845 h 4

The Finances PAGEREF _Toc377110846 h 5

The Business PAGEREF _Toc377110847 h 5

Business details PAGEREF _Toc377110848 h 5

Registration details PAGEREF _Toc377110849 h 5

Business premises PAGEREF _Toc377110850 h 5

Organisation chart PAGEREF _Toc377110851 h 5

Management & ownership PAGEREF _Toc377110852 h 6

Key personnel PAGEREF _Toc377110853 h 6

Products/services PAGEREF _Toc377110854 h 8

Innovation PAGEREF _Toc377110855 h 8

Insurance PAGEREF _Toc377110856 h 8

Risk management PAGEREF _Toc377110857 h 9

Legal considerations PAGEREF _Toc377110858 h 9

Operations PAGEREF _Toc377110859 h 9

Sustainability plan PAGEREF _Toc377110860 h 11

The Market PAGEREF _Toc377110861 h 12

Market research PAGEREF _Toc377110862 h 12

Market targets PAGEREF _Toc377110863 h 12

Environmental/industry analysis PAGEREF _Toc377110864 h 12

Your customers PAGEREF _Toc377110865 h 12

S.W.O.T. analysis PAGEREF _Toc377110866 h 13

Your competitors PAGEREF _Toc377110867 h 14

Advertising & sales PAGEREF _Toc377110868 h 15

The Future PAGEREF _Toc377110869 h 17

Vision statement PAGEREF _Toc377110870 h 17

Mission statement PAGEREF _Toc377110871 h 17

Goals/objectives PAGEREF _Toc377110872 h 17

Action plan PAGEREF _Toc377110873 h 17

The Finances PAGEREF _Toc377110874 h 18

Key objectives & financial review PAGEREF _Toc377110875 h 18

Assumptions PAGEREF _Toc377110876 h 18

Start-up costs for [YEAR] PAGEREF _Toc377110877 h 19

Balance sheet forecast PAGEREF _Toc377110878 h 20

Profit and loss forecast PAGEREF _Toc377110879 h 21

Expected cash flow PAGEREF _Toc377110880 h 22

Break-even analysis PAGEREF _Toc377110881 h 23

Supporting documentation PAGEREF _Toc377110882 h 24

Business Plan Summary[Please complete this page last]

[Your business summary should be no longer than a page and should focus on why your business is going to be successful. Your answers below should briefly summarise your more detailed answers provided throughout the body of this plan.]

The BusinessBusiness name: [Enter your business name as registered in your state/territory. If you have not registered your business name, add your proposed business name.]

Business structure: [Sole trader, partnership, trust, company.]

ABN: [Registered Australian business number.]

ACN: [Registered Australian company number, if applicable.]

Business location: [Main business location]

Date established: [The date you started trading.]

Business owner(s): [List all of the business owners.]

Relevant owner experience: [Briefly outline your experience and/or years in the industry and any major achievements/awards.]

Products/services: [What products/services are you selling? What is the anticipated demand for your products/services?]

The MarketTarget market:

[Who are you selling to? Why would they buy your products/services over others?]

Marketing strategy:

[How do you plan to enter the market? How do you intend to attract customers? How and why will this work?]

The FutureVision statement:

[The vision statement briefly outlines your future plan for the business. It should state clearly what your overall goals for the business are.]

Goals/objectives:

[What are your short & long term goals? What activities will you undertake to meet them?]

The Finances[Briefly outline how much profit you intend on making in a particular timeframe. How much money will you need up-front? Where will you obtain these funds? What portion will you be seeking from other sources? How much of your own money are you contributing towards the business?]

The BusinessBusiness detailsProducts/services: [What products/services are you selling? What is the anticipated demand for your products/services?]

Registration detailsBusiness name: [Enter your business name as registered in your state/territory. If you have not registered your business name, add your proposed business name.]

Trading name(s): [Registered trading name(s).]

Date registered: [Date business name registered.]

Location(s) registered: [State(s) you are registered in.]

Business structure: [Sole trader, partnership, trust, company.]

ABN: [Registered Australian Business Number.]

ACN: [Registered Australian Company Number, if applicable.]

GST: [Are you registered for Goods and Services Tax? Date registered?]

Domain names: [Registered domain names.]

Licences & permits: [List all the licences or permits you have registered]

Business premisesBusiness location: [Describe the location and space occupied/required. What is the size of the space you occupy/require? Which city or town? Where in relation to landmarks/main areas? If you have a retail business, where are you in relation to other shops? What is the retail traffic like?]

Buy/lease: [If you have purchased a business premises or are currently leasing, briefly outline the arrangements. If you are still looking for a lease, outline your commercial lease requirements and any utilities/facilities required.]

Organisation chart[Outline your business structure in an organisation chart.]

Figure 1: Example Organisation Chart.

Management & ownershipNames of owners: [List all of the business owners.]

Details of management & ownership: [As the owner(s), will you be running the business or will a Chief Executive Officer (CEO) be running the business on your behalf? What will be your involvement? If it is a partnership briefly outline % share, role in the business, the strengths of each partner and whether you have a partnership agreement/contract in place?]

Experience: [What experience do the business owner(s) have? How many years have you owned or run a business? List any previous businesses owned/managed. List any major achievements/awards. What other relevant experience do you have? Dont forget to attach your resume(s) to the back of your plan.]

Key personnelCurrent staff

[List your current staff in the table below.]

Job Title Name Expected staff turnover Skills or strengths

[e.g. Marketing/ Sales Manager] [Insert name] [12-18 months] [Relevant qualifications in Sales/Marketing. At least 5 years experience in the industry. Award in marketing excellence.]

Required staff

[List your required staff in the table below.]

Job Title Quantity Expected staff turnover Skills necessary Date required

[e.g. Office Manager] [1] [2-3 years] [Relevant qualifications in Office Management. At least 2 years experience.] [Month/Year]

Recruitment options

[How do you intend on obtaining your required staff? Advertising in the local paper, online advertising, and/or training current staff members?]

Training programs

[Are there any training programs you will be organising in the event you cannot find the required skills? Are these in-house or external providers? What training will you as the business owner/manager undertake to keep your skills current?]

Skill retention strategies

[What procedural documentation will you provide to ensure the skills of staff are maintained? Do you have an appropriate allocation of responsibilities? How are responsibilities documented and communicated to staff? What internal processes will you implement to regularly check that the current skills of staff members are still appropriate for the business?]

Products/servicesProduct/Service Description Price

[Product/service name] [Brief product/service description] [Price including GST]

Market position: [Where do your products/services fit in the market? Are they high-end, competitive or budget? How does this compare to your competitors?]

Unique selling position: [How will your products/services succeed in the market where others may have failed? What gives your products/services the edge?]

Anticipated demand: [What is the anticipated quantity of products/services your customers are likely to purchase? For example, how much will an individual customer buy in 6 months or 12 months?]

Pricing strategy: [Do you have a particular pricing strategy? Why have you chosen this strategy?]

Value to customer: [How do your customers view your products/services? Are they a necessity, luxury or something in between?]

Growth potential: [What is the anticipated percentage growth of the product in the future? What will drive this growth?]

InnovationResearch & development (R&D)/innovation activities

[What R&D activities will you implement to encourage innovation in your business? What financial and/or staff resources will you allocate?]

Intellectual property strategy

[How do you plan to protect your innovations? List any current trade marks, patents, designs you have registered. Do you have confidentiality agreements in place?]

InsuranceWorkers compensation: [Provide details if you have workers compensation insurance? This is mandatory if you have employees.]

Public liability insurance: [Provide details if you have public liability insurance? This covers any third party death or injury.]

Professional indemnity: [Provide details if you have professional indemnity insurance? This covers any legal action taken out as a result of your professional advice.]

Product liability: [Provide details if you have product liability insurance? This covers any legal action taken out as a result of injury, damage or death from your product.]

Business assets: [Provide details if you have insured your business assets in the event of a fire, burglary, or damage? For example: building, contents, motor vehicles.]

Business revenue: [Provide details if you have insured your business in the event of business interruption where you cannot trade because of a particular event and are unable to make money?]

Risk management[List the potential risks (in order of likelihood) that could impact your business.]

Risk Likelihood Impact Strategy

[Description of the risk and the potential impact to your business.] [Highly Unlikely, Unlikely, Likely, Highly Likely] [High, Medium, Low] [What actions will you take to minimise/mitigate the potential risk to your business?]

Legal considerations

[List the legislation which will have some impact on the running of your business. For example: consumer law, business law, or specific legislation to your industry.]

OperationsProduction process

[What is the process involved in producing your products or services. This process will vary depending on your product or service. Here are some examples of questions you may consider. Is there a manufacturing process? Who is involved in the process? Are there any third parties involved? What is involved in delivering the service to your customers?]

Suppliers

[Who are your main suppliers? What do they supply to your business? How will you maintain a good relationship with them?]

Plant & equipment

[List your current plant and equipment purchases. These can include vehicles, computer equipment, phones and fax machines.]

Equipment Purchase date Purchase price Running cost

[e.g Personal Computer] [eg. 20/03/2010] [e.g $2100] [e.g $100 a month]

Inventory

[List your current inventory items in the table below. If you have a substantial inventory, you may prefer to attach a full inventory list to the back of this business plan.]

Inventory item Unit price Quantity in stock Total cost

[e.g flour] [e.g $5.00kg] [e.g Five kilograms] [e.g $25.00]

Technology (Software): [What technology do you require? For example: website, point of sale software or accounting package? What will be the main purpose for each? Will they be off-the-shelf or purpose built? What is the estimated cost of each technology solution?]

Trading hours: [What are your trading hours? What are your expected peak trading times? Which times do you expect to be more profitable? How will this change over different seasons? How do your trading hours accommodate these changes?]

Communication channels: [How can your customers get in contact with you? These channels can include: telephone (landline/mobile), post box, shopfront, email, fax, internet blog or social media channel.]

Payment types accepted: [What payment types will you accept. cash, credit, cheque, gift cards, Paypal etc]

Credit policy: [What is your credit policy for customers/suppliers? How long is the credit period? What are your collection strategies/procedures? What credit does your business receive? What are the terms?]

Warranties & refunds: [If you manufacture certain goods, what are the warranty terms? What is your business refund/exchange policy?]

Quality control: [Describe your quality control process. What checks or balances do you have in place to ensure the product or service you offer is produced to the same standard of quality? What steps do you take to meet product safety standards?]

Memberships & affiliations: [Is your business a member of any particular industry association or club? Do you have any affiliations with any other organisation?]

Sustainability planEnvironmental/resource impacts

[Describe the impact your business could potentially have on the environment. E.g. a particular manufacturing process may contribute negatively on the local water supply.]

Community impact & engagement

[How does your environmental impact affect the local community? How can you engage the community in minimising your impact?]

Risks/constraints

[List any risks/constraints to your business resulting from this environmental impact?]

Strategies

[What strategies will you implement to minimise/mitigate your environmental impact and any risks to your business? Will you conduct an environmental audit? Have you introduced an Environmental management system?]

Action plan

[List your key sustainability/environmental milestones below?]

Sustainability milestone Target Target date

[Reduce water consumption] [60% reduction] [Month/Year]

The MarketMarket research[What statistical research have you completed to help you analyse your market? Did you use a survey/questionnaire? If so, you may like to attach a copy of your survey/questionnaire to the back of this plan.] Market targets[Outline your planned sales targets. What quantity of your products/services do you plan to sell in a planned timeframe? Are they monthly or yearly targets?]

Environmental/industry analysis[Detail the results of the market research you have performed. Is the area experiencing population growth? Are there long-term employers in the area? Is the region's economy stable? Are there seasonal variations?

What is the size of the market? What recent trends have emerged in the market? What growth potential is available and where do you fit in? How will the market/customers change when you enter the market?]

Your customers

Customer demographics

[Define who your target customers are and how they behave. You can include age, gender, social status, education and attitudes.]

Key customers

[Identify your key customers. (These can be large consumers of your products or individuals whose satisfaction is key to the success of your business.) How will you target your products/service to them?]

Customer management

[How will you maintain a good relationship with your customers? What techniques will you use? How will you keep your customers coming back? Have you introduced customer service standards? Do you follow any particular code of practice?]

S.W.O.T. analysis[List each of your businesses strengths, weaknesses, opportunities or threats in the table below and then outline how you plan to address each of the weaknesses/threats.]

Strengths Weaknesses

[e.g High traffic location] [e.g High rental costs]

Opportunities Threats

[e.g build on customer and brand loyalty] [e.g Cash flow problems]

Your competitors[How do you rate against your competitors? How can your business improve on what they offer?]

Competitor details

[List at least 5 competitors in the table below.]

Competitor Established date Size Market share (%) Value to customers Strengths Weaknesses

[Competitor name] [When were they established?] [Number of staff and/or turnover] [Estimated percentage of market share] [Unique value to customers. E.g. convenience, quality, price or service?] [What are your competitor's main strengths?] [What are your competitor's main weaknesses?]

Advertising & salesAdvertising & promotional strategy

[What strategies do you have for promoting and advertising your products/services in the next 12 months?]

Planned promotion /advertising type Expected business improvement Cost ($) Target date

[Print media advertising, online advertising, mail-out, giveaway, media release, social media campaign or event.] [How do you expect it will improve your business success?] [$] [Month/Year]

Sales & marketing objectives

[Who makes up your sales team? What sales techniques will they use? What tools/material will they use to help sell your products/services? What sales goals/targets will they meet?]

Unique selling position

[Why do you have an advantage over your competitors? How will your products/services succeed in the market where others may have failed?]

Sales & distribution channels

Channel type Products/services Percentage of sales (%) Advantages Disadvantages

[e.g. Shopfront, internet, direct mail, export or wholesale] [List all the products/services sold via this channel] [What percentage of overall sales do you expect to sell via this channel?] [What advantages are there of using this channel for these products?] [What challenges do you expect to face using this channel? How will you overcome them?]

The FutureVision statement[What is your business' vision statement? It should briefly outline your future plan for the business and include your overall goals.]

Mission statement[What is your business' mission statement? I.e. how will you achieve your vision?]

Goals/objectives[What are your short & long term goals? What activities will you undertake to meet them?]

Action planPlease note: This table does not include sustainability milestones as they are listed in the sustainability section above.

Milestone Date of expected completion Person responsible

[What are the business milestones that you need to complete starting from today?] [When do you expect to complete them?] [Who is responsible for delivering this milestone?]

The FinancesKey objectives & financial reviewFinancial objectives

[List your key financial objectives. These can be in the form of sales or profit targets. You could also list your main financial management goals such as cost reduction targets.]

Finance required

[How much money up-front do you need? Where will you obtain the funds? What portion will you be seeking from loans, investors, business partners, friends or relatives, venture capital or government funding? How much of your own money are you contributing towards the business?]

AssumptionsThe financial tables on the subsequent pages are based on theassumptions listed below:

[List your financial assumptions. These can include seasonal adjustments, drought or interest rates etc.]

Start-up costs for [YEAR][Double-click the table below to enter your details or attach your own start up costing sheet at the back of this business plan.]

Balance sheet forecast[Double-click the table below to enter your details or attach your own profit & loss sheet at the back of this business plan]

Profit and loss forecast[Double-click the table below to enter your details or attach your own profit & loss sheet at the back of this business plan]

Expected cash flow[Double-click the table below to enter your details or attach your own profit & loss sheet at the back of this business plan]

Break-even analysis[Double-click the table below to enter your details or attach your own table. Refer to the Business Plan guide from www.business.gov.au/businessplan for the calculations.]

Supporting documentationAttached is my supporting documentation in relation to this business plan. The attached documents include:

[List all of your attachments here. These may include resumes, inventory list, survey/questionnaire and/or financial documents.].

business.gov.au

Business Plan Guide

Contents

TOC o "3-3" t "Heading 2,1,Heading 3,2,Heading 4,3" Preparing yourself PAGEREF _Toc358018793 h 3

Analyse your business idea PAGEREF _Toc358018794 h 3

Analyse yourself PAGEREF _Toc358018795 h 3

Business planning PAGEREF _Toc358018796 h 4

Regular review PAGEREF _Toc358018797 h 4

Distributing & protecting your plan PAGEREF _Toc358018798 h 4

Advice & support PAGEREF _Toc358018799 h 5

Attending business events PAGEREF _Toc358018800 h 5

Taking on a mentor or business coach PAGEREF _Toc358018801 h 5

Using the Template PAGEREF _Toc358018802 h 5

Template overview PAGEREF _Toc358018803 h 7

Title page PAGEREF _Toc358018804 h 7

Business Plan Summary PAGEREF _Toc358018805 h 8

The Business PAGEREF _Toc358018806 h 11

The Market PAGEREF _Toc358018807 h 23

The Future PAGEREF _Toc358018808 h 27

The Finances PAGEREF _Toc358018809 h 28

Supporting documentation PAGEREF _Toc358018810 h 33

Glossary PAGEREF _Toc358018811 h 34

This Business Plan Guide and the accompanying Business Plan Template have been developed by business.gov.au, the Australian Government's principal business resource, located within the Department of Industry.

Copies of the latest version of this guide and the template can be downloaded from https://business.gov.au/Planning/Business-plans/How-to-develop-your-business-plan.

If you need further information, assistance or referral about a business issue, please contact business.gov.au on 13 28 46.

Preparing yourselfBefore you start writing your business plan, you should honestly evaluate yourself and decide if your business idea has a good chance of success. Analysis can help you anticipate any challenges you may face and help you overcome them.

Analyse your business ideaIs your idea feasible? Before you get started, find out if there is a demand for your products or services. It's also useful to find out who your competitors are and whether the market can sustain your business.

Researching all aspects of your business idea will involvegathering, analysing and evaluating information to help you write your business goals. Some questions to consider are:

What product/service will you provide?

Is your idea viable?

How will you protect your ideas?

Is there a market for your product/service?

What skills do you need?

Who are your competitors?

What difference will you bring to the market?

Do you have the financial capacity to start a business?

Analyse yourselfAre you ready to venture into business?Operating a small business is not just about working for yourself, it's also about having the necessary management skills, industry expertise, technical skills, finance and of course a long-term vision to grow and succeed.

At the outset its important to consider whether you really understand what's involved and whether you're suited to business and self employment. Examine these questions:

Why are you starting a business?

What are your business and personal goals?

What are your skills?

What income do you need to generate?

What are the advantages and disadvantages of starting your own business?

Business planningOnce you've conducted research into the feasibility of your new business you're ready to write your business plan.

A business plan provides direction, keeps you on track and is usually a requirement when you seek finance. Depending on your business type, your plan could include the following sections:

Business Summary: A one-page overview written after your business plan is finalised.

About your business: This is typically called the management plan or operations plan. It covers details about your business including structure, registrations, location and premises, staff, and products/services.

About your market: This is the marketing plan. It should outline your marketing analysis of the industry you are entering, your customers and your competitors. This section should also cover your key marketing targets and your strategies for delivering on these targets.

About your future: This section covers your plans for the future and can include a vision statement, business goals and key business milestones.

About your finances: The financial plan includes how you'll finance your business, costing and financial projections.

Regular reviewBusiness planning is an ongoing business activity. As your business changes many of the strategies in your plan will need to evolve to ensure you business is still heading in the right direction. Having your plan up to date can keep you focussed on where you are heading and ensure you are ready when you need it again.

Distributing & protecting your planA business plan is a blueprint for how your business will run and reveals what future direction your business will take. Understandably you will want to be careful who you show your plan to and avoid your competition seeing it.

Having an understanding with third parties when distributing a plan could be enough protection for some businesses, however others who have innovative business practices or products or services may wish to go further and sign a confidentiality agreement with each person to protect their innovations.

It may also be a good idea to include some words in your plan asking the reader not to disclose the details of your plan.

What to do...

Visit IP Australias Protecting your IP page, for more information on confidentiality agreements.

For detailed information on Intellectual property protection, visit the IP Australia website.

Contact your nearestBusiness Enterprise Centre(BEC) for assistance with your business planning process.

Advice & supportThere are a number of government services available to help you plan, start or grow your business. These services can provide general advice, workshops, seminars and networking events, and can even match you with a mentor or business coach.

Attending business eventsSmall business workshops and seminars are run regularly in most areas of Australia, and deal with issues such as planning, financial management, innovation, employing staff and exporting.

You may also find it useful to attend networking events to help expand your business. By developing networks, you can keep up-to-date on industry and local information, promote your business through new contacts and learn key skills from other businesses.

Taking on a mentor or business coachParticipating in mentoring or coaching programs can help you develop a greater understanding of business processes and practices, and equip you with the skills you need to grow and improve your business.

What to do...

Contact your nearestBusiness Enterprise Centre(BEC) for assistance with your business planning process.

Check if your local BEC or state business agency hosts a business planning workshop near you.

Search for networking, mentoring or training events and seminars on the business.gov.au Events & training.

Contact a business adviser, accountant or solicitor for advice.

Using the TemplateBefore you complete the business plan template and start using it, consider the following:

Review. Review. Review. Your business plan is there to make a good impression. Errors will only detract from your professional image. So ask a number of impartial people to proofread your final plan.

Template overviewTitle pageQuestion Explanation More information

Insert your business logo Adding a logo helps give your business a more professional image. If you are just starting out and do not have a logo, you can remove this section.

Your name Enter the business owner's name. Enter multiple names if there are multiple owners.

Your title The titles of the business owner(s) listed above. E.g. Owner/Manager

Business name Enter your business name as registered in your state/territory. If you have not registered your business name, add your proposed business name Visit our Register your business name page.

Main business address Enter your main business address. This can be your home address if you are a home-based business or your head office if you have more than one location.

ABN Enter your Australian business number. If you are a business and have registered for an ABN enter it here. Visit our Register for an Australian business number (ABN) page.

ACN Enter your Australian Company Number. Only fill this in if you are a company. Visit our Register a company page.

Prepared The date you finished preparing your business plan.

Table of Contents If you have changed this template in any way, please remember to update the table of contents to reflect the changes.

Business Plan SummaryYour business summary should be no longer than a page and should focus on why your business is going to be successful. Your answers should briefly summarise your more detailed answers provided throughout the body of your plan.

The Business

Question Explanation More information

Business name Enter your business name as registered in your state/territory. If you have not registered your business name, add your proposed business name. Visit our Register your business name page.

Business structure Is your business a sole trader, partnership, trust or company? Visit our Business structures topic.

ABN Enter your Australian business number (ABN). If you are a business and have registered for an ABN enter it here. Visit our Register for an Australian business number (ABN) page.

ACN Enter your Australian Company Number (ACN). Only fill this in if you are a company. Visit our Register a company page.

Business location Enter your main business location. Briefly describe the location and space occupied/required.

Date established The date you started trading. Whether it was the date you opened your doors or the date your purchased business opened its doors.

Business owner(s) List the names of all business owners.

Relevant owner experience Briefly outline your experience and/or years in the industry and any major achievements/awards.

Keep this brief and try to include only your relevant experience and main achievements. You will have an opportunity to go into more detail under the Management & ownership section. Visit our Prepare yourself for business page.

Products/services What products/services are you selling? What is the anticipated demand for your products/services? These answers should briefly summarise your answers under the main products/services section.

The Market

Question Explanation More information

Target market Who are you selling to? Why would they buy your products/services over others?

This answer should briefly summarise your answers under the main Market section. Visit our Researching your market page.

Marketing strategy How do you plan to enter the market? How do you intend to attract customers? How and why will this work?

This answer should briefly summarise your answers under the main Market section. Visit our Marketing topic.

The Future

Question Explanation More information

Vision statement The vision statement briefly outlines your future plan for the business. It should state clearly what your overall goals for the business are.

Goals/objectives What are your short & long term goals? What activities will you undertake to meet them?

The Finances

Question Explanation More information

The finances Briefly outline how much profit you intend on making in a particular timeframe. How much money will you need up-front? Where will you obtain these funds? What portion will you be seeking from other sources? How much of your own money are you contributing towards the business?

Your answers can be quite brief in the summary. They should give the reader a quick idea of your current financial position. Where you are heading financially and how much you need to get there. You can provide more detail in the main Finances section. Visit our Business finances topic.

The BusinessBusiness details

Question Explanation More information

Business purpose What is the main business purpose? What does it sell?

Business size Number of employees? Estimated/actual annual turnover?

Operating history What is the business background? How long has the business been operating? What is your progress to date?

Registration details

Question Explanation More information

Trading name(s) Enter your registered trading name or names. Your trading name is the name you will use to trade under. It is the name that appears on your marketing and advertising material. If you have multiple trading names, list them and explain the purpose of each name. Visit our How to choose a business name page.

Date registered The date that appears on your business name registration.

Location(s) registered Enter the state(s) you have registered your business name. If your business is located in more than one state, you will need to register your business name in each state. Visit our Register your business name page.

Business structure Is your business a sole trader, partnership, trust or company? Visit our Business structures topic.

ABN If you have registered an Australian business number (ABN), then enter it here. Visit our Register for an Australian business number (ABN) page.

ACN Enter your Australian Company Number (ACN). Fill this in if you are a registered company. Visit our Register a company page.

GST If you are registered for Goods and Services Tax (GST), then enter the date you registered with the Tax office. Visit our Register for goods and services tax (GST) page.

Domain names If you are planning on setting up a website for your business, you may also like to register a domain name to match your registered business name. List any domain names you have registered and plan to use in the business. Visit our Register a business website page.

Licences & permits List all the licences or permits you have registered. These will vary depending on your type of business and location. Some examples include a tradesperson certificate, travel agents licence, or kerbside caf permit. Visit our Register licences and permits page.

Business premises

Question Explanation More information

Business location Enter your main business location. Describe the location and space occupied/required. What is the size of the space you occupy/require? Which city or town? Where in relation to landmarks/main areas? If you have a retail business, where are you located in relation to other shops? What is the retail traffic like?

Buy/lease If you have purchased a business premises or are currently leasing, briefly outline the arrangements. These can include purchase price, length of the lease agreement, rental cost or lease terms.

If you are still looking for a lease or property, outline your commercial lease or purchase requirements and any utilities/facilities required. Visit our Business premises page.

Organisation chart

Question Explanation More information

Figure 1: Organisation chart The organisation chart is a quick way of representing your business structure. If you are still recruiting staff, you may wish to include a proposed structure and label it appropriately. I.e. you could add 'Vacant' to the positions that are currently vacant or you could label the whole chart as a 'Proposed Organisation Chart'.

Management & ownership

Question Explanation More information

Names of owners List the names of all business owners.

Details of management & ownership As the owner(s), will you be running the business or will a Chief Executive Officer (CEO) be running the business on your behalf? What will be your involvement? If it is a partnership, briefly outline for each partner their percentage share, role in the business, the strengths of each partner and whether you have a partnership agreement/contract in place?

Experience What experience do the business owner(s) have? Why should people invest in you? How many years have you owned or run a business? List any previous businesses owned/managed. List any major achievements/awards. What other relevant experience do you have? Dont forget to attach your resume(s) to the back of your plan.

Key personnel

Question Explanation More information

Current staff table List your current staff in the table provided. Outline each job title, name of the employee in the position, the expected staff turnover for the position and each employee's relevant skills or strengths. You may also like to attach a copy of their resume to the back of your plan. Visit our Hiring employees topic.

Required staff table List your required staff in the table provided. These are current vacant positions. Outline each job title, quantity of each type of position, the expected staff turnover for the position, the required skills or strengths needed and the date you require this position to be filled. Visit our How to recruit and induct new employees page.

Recruitment options How do you intend on obtaining your required staff? Advertising in the local paper, online advertising, and/or training current staff members? Visit our How to recruit and induct new employees page.

Training programs Are there any training programs you will be organising in the event you cannot find the required skills? Are these in-house or external providers? What training will you as the business owner/manager undertake to keep your skills current? Visit our Staff development and training topic.

Skill retention strategies What procedural documentation will you provide to ensure the skills of staff are maintained? Do you have an appropriate allocation of responsibilities? How are responsibilities documented and communicated to staff? What internal processes will you implement to regularly check that the current skills of staff members are still appropriate for the business? Visit our Staff development and training topic.

Product/services

Question Explanation More information

Product/services table List each product/service your business currently offers. Provide a description and unit price (including GST) amount for each.

Market position Where do your products/services fit in the market? Are they high-end, competitive or a low cost alternative to the products/services offered by your competitors? How does this compare to your competitors?

Unique selling position How will your products/services succeed in the market where others may have failed? What gives your products/services the edge?

Anticipated demand What is the anticipated quantity of products/services your customers are likely to purchase? For example, how much will an individual customer buy in 6 months or 12 months?

Pricing strategy Do you have a particular pricing strategy? Why have you chosen this strategy?

To help you develop your pricing strategy, you could refer to your customer research, market position, anticipated demand and costs/expenses to get an idea.

Whatever strategy you use when setting your price, you will also need to adhere to any relevant fair trading legislation or codes of conduct. Visit our Fair trading laws page for your state fair trading office contact details.

Value to customer How do your customers value your products/services? Are they a necessity, luxury or something in between?

Growth potential What is the anticipated percentage growth of the product in the future? What will drive this growth?

To help you determine this growth potential, you could refer to your region/industry research to get an idea of any industry/regional growth that could affect your business in a positive way.

Innovation

Question Explanation More information

Research & development (R&D)/ innovation activities What R&D activities will you implement to encourage innovation in your business? What financial and/or staff resources will you allocate? Visit our Innovation page.

Intellectual property strategy How do you plan to protect your innovations? List any current trade marks, patents, designs you have registered. Do you have confidentiality agreements in place?

Protecting your innovations can include registering for intellectual property protection, ensuring your staff sign a confidentiality agreement, and generally ensuring your competition does not find out what you are developing. See the IP Australia website for information on protecting your innovations.

Insurance

Question Explanation More information

Workers compensation Provide details if you have workers compensation insurance? This is mandatory if you have employees. Visit our Workers compensation insurance page.

Public liability insurance Provide details if you have public liability insurance? This covers any third party death or injury. Visit our Business insurance page.

Professional indemnity Provide details if you have professional indemnity insurance? This covers any legal action taken out as a result of your professional advice. Visit our Business insurance page.

Product liability Provide details if you have product liability insurance? This covers any legal action taken out as a result of injury, damage or death from your product. Visit our Business insurance page.

Business assets Provide details if you have insured your business assets in the event of a fire, burglary, or damage? This insurance covers things like buildings, contents and motor vehicles. Visit our Insurance page.

Business revenue Provide details if you have insured your business in the event of business interruption where you cannot trade because of a particular event and are unable to make money? Visit our Insurance page.

Risk management

Question Explanation More information

Risk management table List the potential risks (in order of likelihood) that could impact your business.

For each risk, detail the following in the table provided:

A description of the risk and the potential impact to your business.

The likelihood of this risk happening - either highly unlikely, unlikely, likely, or highly likely.

The level of impact it may have on your business high, medium or low.

Your strategies for minimising/mitigating each potential risk. Visit our Risk management page.

Legal considerations

Question Explanation More information

Legal considerations List the legislation which will have some impact on the running of your business. For example: consumer law, business law, or specific legislation to your industry.

List the legislation in order of the most impact on your business. You should also detail what you will do or have already done to ensure you comply.

For example if you are in the financial services industry and you provide financial advice to your customers, you should include the Corporations Act 2001 and your AFS licence details (if registered already). You may also like to include details about your disclosure and general obligations. Visit our Legal essentials for business Page.

Visit the Australian Securities & Investments Commission Financial services page.

Operations

Question Explanation More information

Production process What is the process involved in producing your products/services. This process will vary depending on your product/service. Here are some examples of questions you may consider. Is there a manufacturing process? Who is involved in the process? Are there any third parties involved? What is involved in delivering the service to your customers?

Suppliers Who are your main suppliers? What do they supply to your business? How will you maintain a good relationship with them?

Plant and equipment table List your current plant and equipment purchases. These can include vehicles, computer equipment, phones and fax machines. For each item include the equipment name, purchase date, purchase price and running cost.

If you have not purchased all of your equipment yet, you can include a separate table and include an expected purchase date.

Inventory table List your current inventory items in the table supplied. You can include inventory item name, unit price, quantity in stock and the total cost (i.e. unit price multiplied by quantity in stock).

If you have a substantial inventory, you may prefer to attach a full inventory list to the back of your business plan.

Technology (software) What technology do you require? For example: website, point of sale software or accounting package? What will be the main purpose for each? Will they be off-the-shelf or purpose built? What is the estimated cost of each technology solution?

Even though this section focuses on software (as your hardware will be listed above in your plant and equipment table), for more clarity you may also wish to give a brief description of hardware including servers, specialised technology and computer equipment required.

Trading hours What are your trading hours? What are your expected peak trading times? Which times do you expect to be more profitable? How will this change over different seasons? How do your trading hours accommodate these changes?

Communication channels How can your customers get in contact with you? These channels can include: telephone (landline/mobile), post box, shopfront, email, fax, internet blog or social media channel. If you have chosen only a few channels you may wish to include your strategy behind this.

Payment types accepted What payment types will you accept? Cash, credit, cheque, gift cards, Paypal etc

Credit policy What is your credit policy for customers/suppliers? How long is the credit period? What are your collection strategies/procedures? What credit does your business receive? What are the terms?

Warranties & refunds If you manufacture certain goods, what are the warranty terms? What is your business refund/exchange policy? Visit our Australian Consumer Law page.

Quality control Describe your quality control process. What checks or balances do you have in place to ensure the product or service you offer is produced to the same standard of quality? What steps do you take to meet product safety standards? Visit our Product safety rules and standards page.

Memberships and affiliations Is your business a member of any particular industry association or club? Do you have any affiliations with any other organisation?

Sustainability plan

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Environmental/ resource impacts Describe the impact your business could potentially have on the environment. E.g. a particular manufacturing process produces carbon emissions.

To help you answer this question, you could consider conducting an environmental audit. Visit our How to make your business environmentally friendly page.

Community impact and engagement How does your environmental impact affect the local community? How can you engage the community in minimising your impact? Visit our How to make your business environmentally friendly page.

Risks/constraints List any risks/constraints to your business resulting from this environmental impact? Visit our Risk management page.

Strategies What strategies will you implement to minimise/mitigate your environmental impact and any risks to your business? Will you conduct an environmental audit? Have you introduced an Environmental management system? Visit our How to make your business environmentally friendly page.

Action plan table List your key sustainability/environmental milestones in the table provided? Detail each sustainability milestone, the target you are trying to achieve and when you expect to reach each target. For example: Reducing water consumption by 60% before 2016.

The Market

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Market research What statistical research have you completed to help you analyse your market? Did you use a survey/questionnaire? If so, you may like to attach a copy of your survey/questionnaire to the back of this plan. Visit our research your market page.

Market targets Outline your planned sales targets. What quantity of your products/services do you plan to sell in a planned timeframe? Are they monthly or yearly targets? For example, you may set yourself a goal of selling 1 000 products in 12 months.

Environmental/industry analysis Detail the results of the market research you have performed. Is the area experiencing population growth? Are there long-term employers in the area? Is the region's economy stable? Are there seasonal variations?

A good place to start when researching your regional profile is the Australian Bureau of Statistics website. The regional profile information includes economy, population/people, industry and environment/energy statistics. Visit our Market research topic.

Visit the Australian Bureau of Statistics National Regional Profile page.

Your customers

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Customer demographics Define who your target customers are and how they behave. You can include age, gender, social status, education and attitudes. Download the Social Trends series from the Australian Bureau of Statistics website.

Key customers Identify your key customers. (These can be large consumers of your products or individuals whose satisfaction is key to the success of your business.) How will you target your products/service to them?

Customer management How will you maintain a good relationship with your customers? What techniques will you use? How will you keep your customers coming back? Have you introduced customer service standards? Do you follow any particular code of practice? Visit our Customers page. Visit our Codes of conduct page.

S.W.O.T. analysis

Question Explanation More information

S.W.O.T. analysis table List each of your businesses strengths, weaknesses, opportunities or threats in the table supplied and then outline what you will do about each of the weaknesses/threats.

Your competitors

Question Explanation More information

Your competitors How do you rate against your competitors? How can your business improve on what they offer?

Competitor details table List at least 5 competitors in the table. For each competitor enter:

Competitor: Competitor name

Established date: When were they established?

Size: Number of staff and/or turnover

Market share (%): Estimated percentage of market share

Value to customers: Unique value to customers. Why they would do business with your competitor? For example: convenience, quality, price or service?

Strengths: What are your competitor's main strengths?

Weaknesses: What are your competitor's main weaknesses?

Advertising & sales

Question Explanation More information

Advertising and promotional strategy table What strategies do you have for promoting and advertising your products/services in the next 12 months?

For each promotion/advertising: What is the promotion/advertising type (e.g. Print media advertising, online advertising, mail-out, giveaway, media release, social media campaign or event) How do you expect it will improve your business success? What is the cost of each planned activity? When do you expect to complete each activity? Visit our Marketing topic.

Sales and marketing objectives Who makes up your sales team? What sales techniques will they use? What tools/material will they use to help sell your products/services? What sales goals/targets will they meet? Visit our Marketing topic.

Unique selling position Why do you have an advantage over your competitors? How will your products/services succeed in the market where others may have failed?

Sales and distribution channels table For each channel enter:

Channel type: e.g. Shopfront, internet, direct mail, export or wholesale

Products/services: List all the products/services sold via this channel

Percentage of sales: What percentage of overall sales do you expect to sell via this channel?

Advantages: What advantages are there of using this channel for these products?

Challenges: What challenges do you expect to face using this channel? How will you overcome them?

The FutureQuestion Explanation More information

Vision statement What is your business' vision statement? It should briefly outline your future plan for the business and include your overall goals.

Mission statement What is your business' mission statement I.e. how will you achieve your vision?

Goals/objectives What are your short & long term goals? What activities will you undertake to meet them?

Action plan table What are the business milestones that you need to complete starting from today? When do you expect to complete them? Who is responsible for delivering this milestone?

Please note: This table does not include sustainability milestones as they are listed in the sustainability section above.

The Finances

Key objectives & financial reviewQuestion Explanation More information

Financial objectives List your key financial objectives. These can be in the form of sales targets or profit targets. You could also list your main financial management goals such as cost reduction targets.

Finance required How much money up-front do you need? Where will you obtain the funds? What portion will you be seeking from loans, investors, business partners, friends or relatives, venture capital or government funding? How much of your own money are you contributing towards the business? Visit our Finances topic.

Assumptions

Question Explanation More information

Assumptions List your financial assumptions. These can include seasonal adjustments, drought, economy or interest rates etc.

Start-up costs for [YEAR] table Preparing your start-up costs table

The start-up costs table example contains a list of suggested costs a typical business may incur in its first year of operation. Please take these into consideration when preparing your start-up costing. Please note: The table assumes all figures are GST inclusive.

Estimating costs

Whether you have already started or intending to start you will need to fill in Actual or Estimated figures against the items in the table. If using estimated costs, please label them clearly. See our Accounting page.

Balance sheet forecast table Preparing your balance sheet forecast

The balance sheet forecast example contains a list of suggested assets and liabilities a typical business may have. Please take these into consideration when preparing your balance sheet forecast. Please note: The table assumes all figures are GST inclusive.

Calculations

Net assets equals

Total assets minus Total liabilities. See our Accounting page.

Profit & loss forecast table Preparing your profit & loss forecast

The profit and loss forecast example contains a list of suggested profit items and expenses a typical business may have. Please take these into consideration when preparing your profit & loss forecast. Please note: The table assumes all figures are GST inclusive.

Calculations:

Gross profit/net sales equals

Sales minus cost of goods sold minus any other expenses related to the production of a good or service.

Net profit equals

Gross profit/net sales minus Total expenses. See our Accounting page.

Expected cash flow table Preparing your cash flow statement

The Expected cash flow example contains a list of suggested incoming and outgoing cash items a typical business may have. Please take these into consideration when preparing your cash flow statement. Please note: The table assumes all figures are GST inclusive. Calculations:

Opening balance equals

Closing balance of previous month.

Monthly cash balance equals

Total incoming minus Total outgoing.

Closing balance equals

Opening balance plus Total incoming minus Total outgoing. See our Accounting page.

Break-even analysis table Calculations:

Percentage of price that is profit equals

(Average price of each product/service sold minus Average cost of each product/service to make/deliver) divided by Average price of each product/service sold.

Total sales needed to break-even equals

Number of units sold needed to break-even multiplied by Average price of each product/service sold.

Number of units sold needed to break-even equals

Fixed costs for the month/year divided by (Average price of each product/service sold minus Average cost of each product/service to make/deliver). See our Analyse business finances page.

Supporting documentation

Question Explanation More information

Supporting documentation List all of your attachments here. These may include resumes, inventory list, survey/questionnaire and/or financial documents.

GlossaryAustralian business number (ABN) a single identifying number used when dealing with other businesses and the Tax Office.

Australian Company Number (ACN) the number allocated by the Australian Securities and Investments Commission (ASIC) when you register a company under Corporations Law.

Blog is a shortened word for Weblog (see Weblog).

Break-even the exact point when a business' income meets a business' expenses.

Capital cost a one-off substantial purchase of physical items such as plant, equipment, building or land.

Cash incoming cash that is flowing into the business such as sales or other income.

Cash outgoing cash that is flowing out of the business such as purchases, expenses or fees.

Cash flow the measure of actual cash flowing in and out of a business.

Channel a way of delivering something to its destination, whether it is a message to be communicated or a physical product to be delivered.

Contract a legally enforceable agreement made between two or more parties. A contract may be a verbal contract or a written contract (or may be partly verbal and partly written).

Copyright a law that protects original works of art, literature, music, films, sound recording, broadcasts and computer programs from copying and certain other uses.

Demographics the characteristics of a segment of the population e.g. customers.

Domain name a name that identifies an organisation's address on the internet, either a website address (the domain name follows the 'www') or an email address (the domain name follows the '@' symbol in the email address).

Environmental audit an objective assessment of a business' impact on the environment, and to what extent.

Environmental Management System (EMS) a business system implemented to manage current and future environmental impacts.

Fixed asset a physical asset intended to be used in the business for a long time.

Fixed cost a periodic cost incurred by a business that tends to remain the same each period. Fixed costs are separate to the costs associated with producing a product/service that change depending on the quantity.

Goods and Services Tax (GST) a broad-based tax of 10 per cent on the sale of most goods and services in Australia.

Gross profit also referred to as net sales. This is the remaining profit when the cost of producing a good is taken away from the sale price.

High-end usually refers to expensive or high quality products/services.

Intellectual property laws that protect the property rights in creative and inventive endeavours including art, literature, music, films, sound recording, broadcasts and computer programs.

Inventory a comprehensive list of items a business currently has in stock.

Liability a financial obligation or amount owed.

Licence a legal document that grants a business or person with official permission to conduct a certain activity.

Market position refers to the position an organisation, product or service has in the market, usually in relation to its competition.

Milestone a goal or objective with a target date.

Mission statement is a statement outlining how an organisation intends on achieving its vision.

Net profit is the total gross profit minus all business expenses.

Off-the-shelf a complete ready-made product that can be purchased by the general public. Usually refers to technology or computer products.

Patent an exclusive right granted to an owner to sell their particular device, substance, method or process that is new, inventive and useful.

Pay As You Go (PAYG) withholding a legal requirement to hold back a portion of payments made to employees and other businesses, which is then paid to the Tax Office

Payroll tax a state and territory government tax on industry, calculated on the amount of wages paid.

Permit a legal document granting, usually temporary permission, to carry out a planned action.

Plant and equipment also known as fixed assets used in the operation of a business.

Product liability is insurance that covers a business for damage or injury caused to another business or person, through the failure of a product sold by that business.

Professional indemnity is insurance that protects a business if their client suffers a loss as a direct result of their advice.

Public liability insurance is insurance that protects a person against claims for property damage and bodily injury.

Retail lease a legally binding contract between a business and a landlord that sets out the terms by which a business can occupy a landlords shop or premises.

Social media a group of technology including Blogs, online networks (e.g. Twitter, Facebook, MySpace, LinkedIn) and online collaboration tools often used to expand your network/market reach or collaborate on a large scale.

Stamp duty a state and territory government tax paid by a buyer on the purchase price of the property or asset.

Stocktaking a regular process involving a physical count of merchandise and supplies actually held by a business, to verify stock records and accounts.

Sustainability development that takes full account of the environmental consequences of economic activity and utilises resources that can be replaced or renewed.

Third party persons who are not a party to a contract.

Trade mark the registration of a letter, number, word, phrase, sound, smell, shape, logo, picture, aspect of packaging or any combination of these, which gives the owner the legal right to use, licence or sell it within Australia.

Turnover (financial) financial turnover is the amount of money a business typically makes in a given period.

Turnover (staff) staff turnover is the rate at which staff take-up and leave a position in an organisation.

Unique selling position a characteristic of a business or a product/service that sets it apart from the competition.

Venture capital capital invested in a start-up business that is thought to have excellent growth prospects but does not have access to capital markets because it is a private company.

Vision statement an inspiring statement that expresses an organisation's main ambitions/goals.

Weblog (also known as a Blog) an individual's or organisation's online website displaying a reverse-chronological list of entries (known as posts). Posts typically include thoughts, observations, promotions, links, images or videos. A Weblog is publicly available and allows readers to comment on posts.

Worker's compensation a payment made to an employee affected by a work related injury or illness, to compensate for the loss of earning capacity, medical and rehabilitation expenses.

Appendix 1 Lonsdale Transport services

General information

History

Although sales and profits have increased each year by an average of 5%, the owners are looking to move forward by delivering to regional areas in QLD.

Organisational structure

The organisation is family owned, with three family members acting as a management board and responsible for approving all business decisions.

Managing Director responsible for daily operational management decisions.

Logistics Manager responsible for the scheduling of the trucks and drivers.

20 truck drivers.

five office support employees responsible for administration, accounts, human resources and sales.

Strategic plan goals

The organisations strategic goal is to grow the business and increase business profits over the next three years by expanding delivery routes to include regional QLD.

Operational plan goals

Lonsdale Transport services will:

commence deliveries to regional QLD within 12 months

increase sales by 40% in the next three years.

Background

It was also felt that the company was now sufficiently stable and experienced, and in a financial position to expand the business without risk to their current financial stability or reputation.

Proposed strategy

Financial information

Annual sales

Current sales Estimated sales (yr 1)

$17 million $22 million

Annual net profit

Current net profit Estimated net profit

$1.9 million $3.2 million

Increased costs

Loan repayments Operating costs (fuel, servicing, etc.)

+$200,000 per annum +$2.2 million

Administrative costs Labour costs

+$100,000 Nil

General information

Head office employees work very closely together as a coherent and motivated team. They are generally positive about the organisational direction and respond well to change.

Summary of current employee populations

Head office employees:

covered under individual contracts

salary range $32,00075,000 per annum

small team of mainly male employees, with a wide range of ages

many opportunities to participate in learning and development programs due to management support; however, have shown little interest

high employee engagement scores, citing teamwork and opportunities have contributed to the companys success as real motivators.

Drivers:

covered by an award

salary $45,000 per annum

heavily unionised

employee demographics are all male employees, aged 2565.

few opportunities to participate in learning and development programs due to being on the road; however, have shown very little to no interest

large number of workplace injuries due to heavy lifting

low employee engagement scores, citing pay as an issue

currently experiencing low turnover

history of industrial disputes regarding pay and other change initiatives

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Appendix 1 Lonsdale Transport services

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