business plan for new opening small security company Business Start-Up PID S1 2012 BFP3001

| March 29, 2017

Question
business plan for new opening small security company
Question Detail:
Business Start-Up PID

S1 2012 BFP3001

Adapted from ANZ guide available at: http://www.anz.com/australia/business/CreateBusPlan/Business_Plan_Template.rtf

This is the template for all Business Start-Up projects. Please ensure you use the correct template for your project type.

Complete the following sections (instructions in blue)

Title:

Executive Summary:

Write this last. Keep it to one page. Include only the things that are needed for your proposal to be approved. An Executive Summary is expected to be good enough to be read alone and be able to be approved. (That means you write it as if the reader is ONLY going to read the Executive Summary.) Include with your PID.

Team Member Profile:

Make this a selling point for your project team. Provide professional biographies (pictures optional). The team biographies should be capped at one page.

Business Plan

Insert Company Name here…

Insert Company Slogan here…

Prepared By: INSERT NAME

Date Prepared:INSERT DATE

Contents

1 Business Summary

1.1 About the Company

1.2 Your Products and Service

1.3 The Market

1.4 The Business Potential

1.5 Mission, Goals and Objectives

1.6 Strategies

1.7 Business Structure

1.8 Finance

2 The Market

2.1 Industry Profile

2.2 Competition

2.3 Market Segmentation

3 Sales & Marketing Plan

3.1 Your Customers

3.2 Value Proposition

3.3 Your Product or Service

3.4 Promotion

3.5 Strengths, Weaknesses, Opportunities, Threats

3.6 Sales and Marketing Objectives

3.7 Sales and Distribution

3.8 Pricing

4 Operation Plan

4.1 Production

4.2 Premises, Plant and Equipment

5 Finance Plan

5.1 Capital Requirements and Funding Proposal

5.2 Financial Assumptions

5.3 Cash-flow Projection

5.4 Projected Profit and Loss

5.5 Projected Balance Sheet

6 Risks

6.1 Risk Identification and Mitigation

7 Structure and Management

7.1 Organisational Structure

7.2 Key Personnel

8 Project Plan

8.1 Action Plan

9 References

10 Appendices (for example)

1 Business Summary 1.1 About the Company
Describe the origins, ownership, history, management and activity of your business. If it is a start-up business, describe the business concept.

Include information such as when the company plans to begin trading, the business concept and the major shareholders/directors of the company.

1.2 Your Products and Service
Summarise the product or service that your business will sell.

Provide an overview of your innovation.

1.3 The Market
Describe the market in which you will operate. Include the size and growth potential of the market.

Include estimated annual sales and projected growth rates.

Describe the segments you will be targeting, your anticipated market share of those segments and your positioning within them

Name your target segments, your positioning statement and anticipated market share in % and $ terms.

1.4 The Business Potential
Outline your business’ competitive advantages

Describe your business’ directions for growth

What is the future growth trajectory of the business and how will it be driven i.e. by what product/services lines, channels and geography.

1.5 Mission, Goals and Objectives
Your business objectives might cover targets for growth, customer numbers, revenue, profit and any other relevant measures.

If you have a mission statement, write it here

Clearly state your business objectives, including performance measures and a deadline for achieving each one (often these will be annual targets).

At a minimum, list the dollar value of sales, market share and net profit by the end of Year One.

1.6 Strategies
Summarise your product, pricing, marketing, sales, distribution and strategies

Briefly outline product/service range, pricing strategy, your sales & marketing approach and how you will bring your innovation to market.

1.7 Business Structure
Outline briefly the structure you will use to set up your business.

Provide information as to whether you will set up as a sole trader, partnership, company or trust.

1.8 Finance
These will come from your financial analysis and will usually include turnover (sales), gross profit, and net profit.

State your key financial indicators here

Forecast turnover:

Forecast gross profit:

Forecast net profit:

Outline what finance is sought, how it will be used and how long you envisage it will take to repay

List long and short-term capital requirements, differentiating between debt and equity.

2 The Market 2.1 Industry Profile
Provide substantiation for your growth predictions – some good sources are www.IBISWorld.com.au, market research reports, newspaper articles, trade associations, etc. You may even commission your own research through a private company or through a Polytechnic or University.

Describe briefly what industry you are in and the major characteristics of the market

Write a brief situation analysis of your business, product &/or service lines, including a high level overview of the competitive environment.

Outline the size of the market, its prospects for growth and any trends likely to impact it in the future (such as political, demographic, fashion, consumer behaviour trends etc)

You may want to list whether this market is mature or emerging, and include the break-down of sales according to product, service, region and channel, for example:

Victoria

NSW

Qld

WA

Product/Service 1

$

$

$

$

Product/Service 2

$

$

$

$

Product/Service 3

$

$

$

$

Also list trends and growth prospects in these segments supported by references.

2.2 Competition
Describe each of the major competitors. Include relevant information on their size, market share, distribution channels, pricing strategy, target market, product lines, brands etc.

List your key competitors and their characteristics using the table below.

Competitor 1

Competitor 2

Competitor 3

Products

Price

Distribution

Positioning

Quality

Target market

Mkt share*

*The remaining market share is divided between a number of small suppliers

Describe any barriers to entry into the industry. How will you overcome them? How will your competitors react to your entry into the market and what will be your response?

2.3 Market Segmentation
See www.IBISWORLD.

com.au, Australian Bureau of Statistics, government associations and trade associations may be useful sources of information

Describe how the customers in this market can be segmented into groups (this can be based on age, income, location, psychographic profile, company size etc). Summarise the size and characteristics of each segment.

It may be useful to display this information in a table.

Segment:

Characteristics:

Size (annual sales):

Segment 1

Segment 2

Segment 3

Segment 4

3 Sales & Marketing Plan 3.1 Your Customers
When considering which segments to target, consider the size of the segment, the sales margin achievable and the ‘fit’ of your product or service

This may include information on age, income, occupation, lifestyle etc. It may be useful to create a ‘typical customer’ profile.

From your analysis of the various segments in the previous section, discuss which segments of the market you will focus on. What are your reasons for doing so?

What do you know about the customers in your target segments?

What are they looking for from a product or service such as yours?

You should consider things such as whether they like to buy in a shop vs. online, whether buying is an impulse or considered decision, whether they buy for business or leisure etc

How do they value the relative importance of the various characteristics of your product/service offering (such as price competitiveness, quality of goods, after-sales service etc

Relative importance of key selling factors to target market:

Profile 1

Profile 2

Price

Low-Medium-High

Taste

Packaging

Knowledgeable retailer

Convenient retail location

Describe their buying behaviour – when, where and how do they buy?

3.2 Value Proposition
What are the compelling reasons for a customer to purchase your product or service?

Outline your unique selling proposition

What are your brand values – what feelings and emotions will customers associate with your business, your products and your services?

This statement should also take into account the factors that your target customers find important (identified in Section 1 above)

From the above statements, summarise how your business will deliver value to the target customers you identified in Section 1 (above). This is your customer value proposition.

Limit to 1-2 sentences.

3.3 Your Product or Service
Describe the products or services that your business will sell

Provide product/service description, range, features, packaging etc

How will customers use it – will it change the way they currently do things? What customer problem will it solve?

Outline how your innovation addresses a gap in the market.

How will your range of products or services change over time?

Address anticipated product/service expansion based on life cycle or changes in customer demand/market drivers.

If it is a new product or service to the market, describe any other markets in which it is currently sold.

What stage of development has your product or service reached? What is required to get it ready to market?

In this section you can address R&D, lead time on development and channels to market amongst other factors.

3.4 Promotion
Some of the major activities you may consider are advertising, public relations, direct marketing, website marketing, events and sponsorships

Outline the ways in which you will promote your product or service to the target market. Outline a timeframe and budget for each initiative and if possible, describe how you will measure the success of each promotional activity.

NB: These should link back to your sales and marketing objectives outlined in Section 3

3.5 Strengths, Weaknesses, Opportunities, Threats
Outline the strengths, weaknesses, opportunities and threats facing your business.

3.6 Sales and Marketing Objectives
State the sales targets you expect to achieve over three months, one year, and five years (choose periods of time relevant to your business). State these in terms of unit sales and $sales

Forecasted sales for Year One ($000)

NB: A complete 1-3 year sales forecast should be included in financials section of the Appendix

M

A

M

J

J

A

S

O

N

D

J

F

Total

Product 1

Product 2

Product 3

Product 4

Total

Typical objectives focus on customer acquisition, customer retention, brand awareness etc

State your marketing objectives, ensuring they are SMART (specific, measurable, agreeable, realistic and time-sensitive)

3.7 Sales and Distribution
Channels include direct such as retail stores, mail order, wholesale warehouse, door-to-door or indirect channels such as agents, re-sellers etc

Describe the channels through which your customers will buy your product or service. Include estimates of the sales expected through each channel.

Assess the costs and benefits of each channel.

Use the following table to compare the cost/benefits and split between the various sales channels.

Direct Sales

Indirect Sales

Avg order value

Est number of orders

Total value of sales

Time cost per order

Delivery cost per order

Commission cost per order

Total cost per order

Total cost of sales

3.8 Pricing
Outline the price structure for your product or service

How have you determined this price (market-based, cost-plus, value-based etc)?

How does your pricing strategy compare to the market, to your competitors?

4 Operation Plan 4.1 Production
If you will be selling a product, describe how you will produce it. Describe the production or delivery processes involved (especially if they are unique to your business)

In section, briefly outline process of manufacture including raw materials, or in the case of services how the service will be delivered by your workforce.

Outline any strategic partnerships or supplier agreements that you have in place

4.2 Premises, Plant and Equipment
You may like to include any relevant documentation for this section as an Appendix

Describe the premises necessary to operate your business. Include details of relevant lease details, property valuations, rental assessments etc.

Describe the plant and equipment required to run your business. Do you plan to lease or buy? What maintenance is required? What is the expected ‘life’ of the plant and equipment?

Discuss the reasons for the location of your business. Consider such things as foot traffic, proximity to suppliers and customers, access to workforce etc

5 Finance Plan 5.1 Capital Requirements and Funding Proposal
Indicate what finance is required to operate the business and where it will come from. If you are seeking external lending or investment, outline what you require, what it will be used for and how you intend to repay it

Briefly outline your initial capital requirement, distinguishing between debt and equity.

In the case of debt, outline the type of financing e.g. bank loan, over what period it will be repaid and how the repayments will be funded.

Note, business cash flows will be an important consideration in servicing debt.

5.2 Financial Assumptions
Describe all assumptions used in preparing your financial forecasts Income:

Assumptions should be provided in the form of notes to the financial accounts and this information can be provided in the Appendix.

5.3 Cash-flow Projection
Provide a monthly forecast of your cash-flows for the next 36 months

5.4 Projected Profit and Loss
It is advisable to have students with accounting knowledge prepare this information.

Provide projected Profit and Loss Statements for your Business over a 36 month period,

Projected Profit and Loss

12 months commencing 1 July 2011

Sales

$’s

$’s

Product 1

Product 2

Product 3

Product 4

Less Cost of goods sold

Net Sales

Expenses

Total payroll costs

Total commissions and fees

Total property and communication costs

Total cartage and freight costs

Total marketing costs

Total debt servicing costs

Total miscellaneous costs

Total Expenses

Net profit before tax

5.5 Projected Balance Sheet
It is advisable to have students with accounting knowledge prepare this information

Provide projected Balance Sheets for your Business over a 36 month period,

6 Risks 6.1 Risk Identification and Mitigation
Consider things such as market risks, technology risks, susceptibility to changing fashion, illness of key personnel etc

Outline the major risks to your business. What strategies will you employ to mitigate these risks?

Score as follows, for Likelihood and Impact: High = 3, Medium = 2, Low = 1

Nature of Risk or Uncertainty

Likelihood

High/

Medium/

Low

Impact

High/

Medium/

Low

Likelihood

x Impact

[Score]

Actions required and who will take responsibility to manage the risk

7 Structure and Management 7.1 Organisational Structure
Describe the structure of the business, including the number of employees, the management team and founders. Draw an organisational chart to show this.

Outline how you expect the number of employees and organisational structure to change as your business grows.

7.2 Key Personnel
Your Management team should include the key functions/skills required to successfully run your start up business.

For each member of the management team, give a summary of their background, skills and experience

Identify any skill gaps or weaknesses in your management team and how they will be overcome

8 Project Plan 8.1 Action Plan
Consider what impact particular tasks will have on other tasks. It may be useful to present the action plan as a table or timeline

Identify the key milestones required to action the Business Plan and when each will need to be completed by.

Action

Due date for completion

Now drill down from your milestones into specific tasks. Provide a Gantt Chart to demonstrate the duration of tasks against the progression of time. Which tasks can be completed parallel to each other? Which tasks must be completed sequentially? Microsoft Project or Excel could be used to create your chart. An example Gantt Chart is included below.

9 References
List any references you have used and make sure to use Harvard referencing. A HD standard PID will require the accurate and appropriate usage of 8 or more references (50% journal articles/academic texts).

10 Appendices (for example)
Appendix 1: Kepner-Tregoe Exercise on Scope

Show the results of the Kepner-Treoge exercise from your team discussions in the seminar.

appendix 2: communication strategy

Appendix 3: Stakeholder Analysis

Use the template from Professional Development 2 to develop a draft Stakeholder analysis

Appendix 4: Detailed Budget

Develop detailed forecasting budgets. These budgets should tie together all identified costs, revenues and cash flows and accompanied by notes and assumptions underpinning the financial accounts.

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