A business which started by our self and need to complete the financial plan
1. THE MARKETING PLAN
Environmental analysis
• A discussion about the industry you are entering, in an historical and a geographical sense.
• A look at changes, advancements and trends over the last 10 - 15 years, and the current situation at an international, national, state and local level.
• Identify where your particular business fits into the industry and why there is an opportunity for your business.
Customer demographics
• Indicate who your customers will be in each segment, their age, sex, lifestyle, interests, geographic location.
• How many are there in the areas you are going to service?
Price strategy
• What pricing technique will you use? Explain why. We have used Premium pricing strategy
Market research
• Details of the results of your market research produced from primary and secondary resources.
2. OPERATIONS PLAN
Business structure
• Indicate whether the business will be a sole trader, partnership, company or trust structure.
• Why has this structure been selected?
• What are the advantages of this structure for your situation?
• What business name are you going to use?
• Has the business name been registered?
• Will the business require an Australian Business Number (ABN)?
• If so, include a copy of the certificate as an appendix.
Business premises
• Provide lease/rental details - landlord/agent, setup costs, bond, rent outgoings.
• Preferred location of the business (consider several in case the first option is not available.
• Provide a sketch indicating the layout of the premises (include maps where relevant).
• Provide a description of the facilities required to operate the business, i.e. three phase power, etc.
• Also include the expected running and maintenance costs.
• If applicable, provide details of security, power, and water.
Production arrangements
• How will the product/service be produced?
• Including a monthly activity schedule.
• If applicable, describe the process involved in producing your product (including any sub-contractors and/or suppliers of raw materials.
• If relevant, discuss any waste disposal. What type of waste is involved, how do you plan to dispose of it and at what cost? (Compliance with government regulations regarding waste disposal should be investigated).
Distribution (place) arrangements
• How will the product/service be distributed?
• Describe the facilities required to sell and distribute your product/service (e.g. will you sell it yourself or will you use agents or distributors).
• If relevant, discuss any margin to be given to sales representatives, retailers, distributors or wholesalers and identify any royalties or commissions you will have to pay.
Credit terms
• What credit policy will be adopted and what is the standard for your type of business?
• If any, what credit terms have you arranged with your suppliers.
• If any, what terms will you offer your customers.
Plant and equipment
• List the plant and equipment necessary to start production or to provide the services offered.
• Indicate equipment suppliers purchasing or leasing and the time required to order and install equipment.
• Also indicate the expected running and maintenance costs.
Quality control
• What measures will you put in place to ensure that all work is to the standard you require?
Memberships and affiliations
• Are you a member of any relevant associations (e.g. industry associations, Chamber of Commerce etc.)?
Communications
• How will you be contacted?
• What communication systems will you use (e.g. telephone, mobile, fax, web/internet, etc.)?
• Include numbers.
Trading hours
• What will your trading hours be?
Commencement date
• When will you start the business?
3. THE FINANCE PLAN
Financial strategy
• What finances are required to commence the business?
• Where will this money come from?
• Have you applied for finance yet?
• Where will you seek finance?
Establishment costs and source of funds
Balance Sheetprojections
• Include a balance sheet (for commencement) and discuss.
Profit and Loss projections
• include a projected profit and loss at end of first 12 months and discuss.
(C) TOTAL OVERHEAD COSTS
(D) NET PROFIT
Break Even Cash Flow projections
Present full cash flow chart based on the minimum level of sales required to achieve the break even point as determined by you for first 12 months only and discuss.