Business Start-up Planning

Canarinho Airlines
School of Aeronautical, Mechanical and Mechatronic Engineering
The University of Sydney
Canarinho Airlines
Prepared 13 August 21!
"y "runo # C $, Eduardo %ering, &o'o (ery, Marco, )uri Servedio
"usiness Plan Te*plate +1,31
Purpose of the business plan
E-plain .hy you are .riting the plan/ is it to secure finance0 a *anage*ent tool0 or an
operational guide for the 1usiness0
2f the plan is intended to support an application for finance, state the na*e of the 1an3
or other financier to .ho* the application is 1eing *ade, the a*ount of finance 1eing
applied for, the ter* of the loan and the security you4ll 1e providing the 1an35 State
.hat the loan .ill 1e used for and ho. it .ill 1e repaid/ eg fro* additional revenue
generated as a result of 1orro.ing the *oney5
Also re*e*1er to date the plan and note the author5
Summary
Although it appears at the 1eginning of the plan, the su**ary is usually .ritten last5
2t provides a 1road overvie. of your 1usiness and .hat distinguishes your products or
services fro* your co*petitors5 2t *ay include a state*ent a1out your 1usiness values
and ethics along .ith your 3ey o16ectives and any critical factors to the success of your
1usiness venture5
Try to 3eep the su**ary to around a page and a half, and include a 1rief overvie. of
the follo.ing/
the 1usiness and its proprietors7
the products and services on offer, the 1enefits they provide, and .ho .ill
1uy the*7
the 1usiness4s overall o16ectives and co*petitive advantage7
the *ar3eting strategy7
the operational perfor*ance 8if already operating9 stating sales, profits and
*ar3ets7 and
3ey figures fro* the financial forecasts5
"usiness Plan Te*plate +2,31
Contents
The business.............................................................................................................. 5
Mission state*ent5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 :
"usiness o16ectives5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 :
%escription of 1usiness activity55555555555555555555555555555555555555555555555555555555555555555555555555555555:
Co**ence*ent date5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 :
Co**ence*ent capital5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 :
"usiness structure555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 ;
Co*petitive advantage55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 ;
<.ner or o.ners4 profiles5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 ;
Ma6or clients5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 =
>icences and registrations555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 =
"usiness advisors5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 =
Current perfor*ance555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 ?
Industry analysis..................................................................................................... 10
A(@S2C category/55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 1
Political555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 1
Econo*ic555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 1
Social555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 11
Technological555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 11
2ndustry555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 11
Co*petition555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 11
$ey success factors55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 11
Mareting plan......................................................................................................... 1!
Mar3et and situation analysis55555555555555555555555555555555555555555555555555555555555555555555555555555555512
Mar3et seg*entation and custo*er analysis55555555555555555555555555555555555555555555555555555555513
<16ectives and goals5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 1!
Strategies and tactics5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555551:
"perational strategy................................................................................................ 1#
>ocation and pre*ises5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 1=
Plant and eAuip*ent5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 1=
2nventory5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 1B
Ma6or suppliers555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 1?
(u*1er of days stoc3 to 1e held55555555555555555555555555555555555555555555555555555555555555555555555555551?
Stoc3turn rate55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 2
Ceorder points5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 2
Shrin3age55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 2
Pricing of products,fee structure55555555555555555555555555555555555555555555555555555555555555555555555555552
Merchandising5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 21
Dee Structure555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 21
Personnel 8hu*an resources9 strategy55555555555555555555555555555555555555555555555555555555555555555522
Strategic alliances55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 23
"usiness Plan Te*plate +3,31
Environ*ental strategy555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 23
$inan%ial strategy.................................................................................................... !&
Dinancial o16ectives55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 2!
Capital structure/ de1t eAuity ratio and .or3ing capital555555555555555555555555555555555555555552!
Sales, purchases, de1tor collections and pay*ents forecasts55555555555555555555555555555552:
Cashflo. forecasts555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 2:
2nco*e state*ent and 1alance sheet forecasts555555555555555555555555555555555555555555555555555552;
"alance sheet55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 2=
"rea3even analysis5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555552=
'ppendi%es.............................................................................................................. !(
"usiness Plan Te*plate +!,31
The business
Mission statement
A *ission state*ent is ai*ed at your custo*ers and should su* up in si*ple ter*s
.hat you do, ho. you do it and .hy5
Business ob)e%ti*es
"usiness o16ectives define .hat the 1usiness is ai*ing to achieve5
)our o16ectives should 1e *easura1le and include a *i- of short and longEter* goals5
2t4s a good idea to include your personal o16ectives in this section .hich should
underpin your reasons for going into 1usiness5 This is also .here you outline your e-it
strategy for the 1usiness .hich *ay include passing the 1usiness on to your children,
see3ing investors or partners or selling the operation to fund your retire*ent5
Consider ho. your e-it strategy fits .ith your 1usiness and personal o16ectives5
(a*e, address and contact details
8Type in here the trading na*e of the 1usiness9
8Street address9
8Postal address F if different9
8Telephone nu*1er9
8Da- nu*1er9
8Ge1site address9
8E*ail9
8Australian "usiness (u*1er9
+es%ription of business a%ti*ity
Type in here a concise description of the 1usiness including .hat type of goods or
services it provides and to .hat type of *ar3et5
Commen%ement date
Type in here .hen the 1usiness co**enced , or is going to co**ence operating5
Commen%ement %apital
>ist the capital the 1usiness started .ith and specify the a*ount provided 1y each
o.ner if there4s *ore than one5 2f *onies .ere 1orro.ed to start the 1usiness, state
the a*ount 1orro.ed and fro* .ho*5
"usiness Plan Te*plate +:,31
Business stru%ture
State here .hich legal structure the 1usiness operates under/ ie sole trader,
partnership, co*pany or trust5 >ist the na*e of the sole trader, or the partners, or the
co*pany4s shareholders and directors F .hichever is applica1le5
<utline the rationale 1ehind your decision and ho. the structure you4ve chosen .ill
support your 1usiness o16ectives5
)ou *ay also .ish to include any plans for a change in structure do.n the trac3 F ie
fro* sole trader to co*pany F depending on the level of 1usiness gro.th you4re
e-pecting to see over ti*e5
2f operating as a trust, state the na*e of the trustee and the unitEholders 8if a unit trust9
or the 1eneficiaries 8if a discretionary trust95 2f the discretionary trust has *ade a fa*ily
trust election .ith the Australian Ta-ation <ffice, na*e the specified individual .hose
fa*ily group is ta3en into account in relation to the fa*ily trust election5
2f the structure is co*ple- you *ight .ant to include a diagra*5
Dor *ore infor*ation a1out go to the "usiness Structures section of the S*all
"usiness %evelop*ent Corporation .e1site at ...5s*all1usiness5.a5gov5au5
Competiti*e ad*antage
This is .here you e-plain the uniAueness of your product or service, .hy there is a
need or de*and for it and .hat 1enefits it offers the custo*er5
This is also .here you co*pare the offerings of your co*petitors and .hat *a3es your
product different or 1etter5
Many people include a SG<T analysis as part of this section .hich is a *ethod 1y
.hich to e-a*ine the strengths, ,ea3nesses, opportunities and threats in relation to
your 1usiness5 2t4s usually done in a grid or ta1le for*at .ith 1ullet points listed in each
section5
",ner or o,ners- profiles
2f you4ll 1e using your plan as a tool for o1taining finance or invest*ent, *ost 1an3s
and potential investors .ill .ant assurance that the people responsi1le for running the
1usiness are Aualified and co*petent5
Provide an overvie. of your e-pertise along .ith any special s3ills, industry 3no.ledge
and e-perience you 1ring to the 1usiness5 2nclude any for*al Aualifications along .ith
specific training you4ve underta3en, or plan to underta3e in the future5
"usiness Plan Te*plate +;,31
#ighlight any prior successes you4ve had in running a 1usiness, or in this particular
field5
"e sure to include the relevant details for each o.ner along .ith the relevant s3ills and
attri1utes of any senior *anagers or 3ey personnel5
Ma)or %lients
2f appropriate for your 1usiness, provide a list of *a6or clients to help de*onstrate your
e-perience, capa1ility and perfor*ance5
Al.ays see3 per*ission 1efore pu1lishing client details in your pu1lications, flyers,
.e1site or 1usiness plan if they4ll 1e *ade availa1le to e-ternal parties5
8Client 19
8Client 29
8Client 39
8Client !9
.i%en%es and registrations
Provide a list of any licences and registrations that the 1usiness holds5
The 1usiness holds the follo.ing licences/
8>icence 19
8>icence 29
8>icence 39
Business ad*isors
Potential investors and,or partners .ill .ant confir*ation that your 1usiness is
supported 1y a professional tea* of Aualified advisers such as accountants, solicitors,
1an3ers, insurance 1ro3ers and relevant industry associations5
2nclude the 1usiness na*e and address of each contact along .ith any professional
*e*1erships you hold .hich *ay include cha*1ers of co**erce, various institutes
and industry associations5
"an3er 8(a*e9
"usiness Plan Te*plate +=,31
8Address9
8Address9
8Telephone and fa- nu*1ers9
8e*ail address and .e1site9
Accountant 8(a*e9
8Address9
8Address9
8Telephone and fa- nu*1ers9
8e*ail address and .e1site9
>a.yer 8(a*e9
8Address9
8Address9
8Telephone and fa- nu*1ers9
8e*ail address and .e1site9
2nsurance 1ro3er 8(a*e9
8Address9
8Address9
8Telephone and fa- nu*1ers9
8e*ail address and .e1site9
Advisors 8(a*e9
8Address9
8Address9
8Telephone and fa- nu*1ers9
"usiness Plan Te*plate +B,31
8e*ail address and .e1site9
2ndustry Associations 8(a*e9
8Address9
8Address9
8Telephone and fa- nu*1ers9
8e*ail address and .e1site9
Current performan%e
Provide 3ey figures under this heading F *ore detailed infor*ation is provided in the
financial section of the 1usiness plan5
2f your 1usiness is a startEup, 1ase this section on your financial pro6ections5
Turnover H555555555555 8last year H5555555555555559
Iross profit H555555555555 855J9 8last year H555555555555555 855J9
(et profit H555555555555 855J9 8last year H555555555555555 855J9
"usiness Plan Te*plate +?,31
Industry analysis
'/0SIC %ategory1
2n Australia and (e. @ealand, the A(@S2C is used for producing and analysing
industry statistics5 2f you4re not sure .hich A(@2C category your 1usiness co*es under
visit the Australian "ureau of Statistics at ...5a1s5gov5au5
<nce you4ve identified .hich category your 1usiness co*es under, list the code and
provide a description5
Then under the follo.ing headings, identify i*portant trends or issues .ith the
potential to affect your 1usiness4s operation and ho. you plan to overco*e the*5
Politi%al
E-a*ples F only address those .hich apply to your situation/
Iovern*ent leadership and political sta1ility
State and federal elections
2nternational relations
E*ploy*ent la.s
2ndustrial Celations unrest
Environ*ental regulations
Trade restrictions and tariffs
Ta-ation policy F re1ates and incentives
Co*petition regulation
Consu*er protection
(e. or proposed govern*ent policies, regulations and la.s
Gar and terroris*
2%onomi%
E-a*ples F only address those .hich apply to your situation
State and national econo*ic gro.th
2nterest rates and inflation
E-change rates
Une*ploy*ent rates
Consu*er confidence
Ilo1al econo*ic outloo3
Availa1ility of ra. *aterials,resources
S3ills shortages
Iovern*ent spending
"usiness Plan Te*plate +1,31
So%ial
Examples only address those which apply to your situation
2nco*e distri1ution
%e*ographics F aging population, lo.er 1irth rates,
Education levels
Dashion
Gor3 , Da*ily 1alance
Iro.ing concern for the environ*ent
Attitudes to.ards health and safety
Iro.th in *ulticulturalis*
Standards of living
2ncrease in singleEparent fa*ilies
Cesidential trends F inner city living, ur1an spra.l
Te%hnologi%al
E-a*ples F only address those .hich apply to your situation
Costs
Cate of technology transfer
>ife cycle and speed of technological o1solescence
Efficiencies availa1le
Support and training availa1le
Cesearch and develop*ent
(e. inventions
Industry
This is .here you provide an overvie. of the industry in .hich your 1usiness .ill
operate and a su**ary of your 1usiness4s position .ithin that industry5
2nclude details a1out the siKe of the industry, its 3ey *ar3ets,clients, the *a6or players
.ithin the industry, the level of gro.th it4s e-periencing and any significant trends that
have affected its perfor*ance, or are li3ely to in the future5
Competition
#ere is .here you e-plain ho. your 1usiness fits .ithin the industry, including details
a1out your point of difference, the co*petition, your e-pected level of *ar3et share,
any possi1le 1arriers to entry and ho. you plan to address the*5
"usiness Plan Te*plate +11,31
3ey su%%ess fa%tors
>ist any critical factors to the success of your 1usiness venture5
"usiness Plan Te*plate +12,31
Mareting plan
Dollo. this standard stepE1yEstep process to devise a *ar3eting plan for your
1usiness/
Analyse and descri1e your product or service 1y presenting a product
range analysis, a co*petitor analysis and a SG<T analysis5 Then present
your co*petitive advantage, 1ased on this analysis5
2dentify and seg*ent your *ar3et5
%eter*ine your *ar3eting o16ectives F .hat you .ill do5
%eter*ine your *ar3eting activities or strategy F your *ar3eting *i- F in
relation to product, price, pro*otion and place5
Use the follo.ing headings/
Maret and situation analysis
Competiti*e en*ironment4Competitor analysis
Ghat are your co*petitors doing0 #o. *any co*petitors do you have0 Ghat is your
advantage over your co*petitors0 2s the *ar3et large enough to support you and your
co*petitors0
Co*pare the features, 1enefits and advantages of your product or services over your
co*petitors4 offerings of the sa*e, si*ilar or su1stitute products5
Use the follo.ing ta1le to co*pare the attri1utes of your 1usiness .ith your significant
co*petitors5
Business
attribute
5our business Competitor 1 Competitor ! Competitor
6
Produ%t range analysis
Use the follo.ing ta1le to sho. the contri1ution of each product or service to total
sales and gross profit5 Dor so*e 1usinesses, you *ay .ish to include the siKe of the
*ar3et and your *ar3et share5
"usiness Plan Te*plate +13,31
The follo.ing product range analysis sho.s the contri1ution of each product
classification to 1oth total sales and total gross profit5
Produ%t 7 of total
sales
7 of total
gross profit
8uality Maret
si9e
Maret
share
S:"T ;Strengths< :eanesses< "pportunities and Threats= 'nalysis
%o a SG<T analysis to identify the internal and e-ternal factors .hich .ill affect your
1usiness in 1oth a positive and negative .ay5 2nternal factors are strengths and
.ea3nesses and e-ternal factors are opportunities or threats5 The follo.ing are
e-a*ples of each area/
Strength 8eg9/ Gea3ness 8eg9/
Superior custo*er service,
e-cellent store location
a uniAue product5
Poorly trained staff
undifferentiated product or service
poor stoc3 *anage*ent syste*5
<pportunity 8eg9/ Threat 8eg9/
Entering a young developing
*ar3et
introduction of a govern*ent
grant to increase
consu*ption of your product
8eg/ solar po.er9
acAuiring distri1ution rights for
a co*pli*entary product5
(e. co*petitor entering your
*ar3et
ne. regulations
increased trade 1arriers5
"usiness Plan Te*plate +1!,31
Maret segmentation and %ustomer analysis
Maret Segmentation
Ghen you loo3 closely at your *ar3et you4ll find that your consu*ers fall into different
groups or Lseg*ents45 Although all of your custo*ers use your product or service they
.ill value different aspects of it such as price, design, or ease of access5 )ou can
seg*ent your *ar3et 1y custo*ers that have shared values5
Dor e-a*ple, if you .ere selling electronic calculators your *ar3et could 1e
seg*ented 1y ho. consu*ers use it eg/ scientific, office, student and general use5
Each of these seg*ents .ill have different reAuire*ents and the price they are .illing
to pay for your product *ay vary5
"y understanding the needs of each seg*ent you can tailor your *ar3eting *i- to
deliver .hat your custo*er values5 Each seg*ent .ill offer gro.th and profit
opportunities so the tric3 is to deliver the 1est offer to the 1est seg*ent5
Target maret4segment %hara%teristi%s
)ou can profile your target *ar3et,seg*ents using four categories/
Ieographic/ eg/ location, population siKe or cli*ate
%e*ographic/ eg/ age, gender, fa*ily siKe, fa*ily life cycle or inco*e
Psychographic/ eg/ social class, lifestyle, *otivation or personality
"ehavioural/ eg/ product 1enefits, freAuency of use or 1rand loyalty
Maret resear%h findings
Provide an overvie. of your *ar3et research findings5 This could include/
products and services and their custo*er fit
custo*er profiles
custo*er characteristics7 and
custo*er needs and .ants
Misit the Mar3et Cesearch section of the S*all "usiness %evelop*ent Corporation
.e1site at ...5s*all1usiness5.a5gov5au for *ore infor*ation5
"usiness Plan Te*plate +1:,31
"b)e%ti*es and goals
Mission Statement
A *ission state*ent is ai*ed at your custo*ers and should su* up in si*ple ter*s
your 1usiness purpose F ie/ .hat you do, ho. you do it and .hy5 Try to contain your
*ission to a single sentence5 Dor e-a*ple %isney4s could 1e NGe create happiness 1y
providing the finest in entertain*ent for people of all ages5O
"b)e%ti*es
)our *ission is then 1ro3en do.n into achieva1le o16ectives5 Achieving each o16ective
should ta3e you a step closer to achieving your *ission5 Gor3ing on the %isney
e-a*ple an o16ective could 1e/ NTo 1e the *ost popular the*e par3 for international
visitors5O
>oals
)our goals outline ho. you are going to achieve your o16ectives5 They should 1e easy
to *easure and evaluate5 2n our e-a*ple a goal *ight 1e/ NTo increase *ar3et share
of international the*e par3 visitors 1y 1J in the ne-t 2 years5O
Strategies and ta%ti%s
Pri%ing strategy
Ghen developing your pricing strategy consider the follo.ing/
your custo*ers sensitivity to changes in price7
.hat revenue you need to 1rea3 even7 and
.hat the price says a1out your product eg/ value, Auality and prestige5
%o.nload the pricing strategy "usiness Iuide under Mar3eting at
...5s*all1usiness5.a5gov5au for *ore infor*ation
Produ%t strategy
Ghen developing your product strategy consider the follo.ing/
.hat level of Auality and consistency does the product have7
ho. *any features does it have and can they 1e re*oved or added7 and
does the design and,or service deliver .hat the custo*er values0
%o.nload the product strategy "usiness Iuide under Mar3eting at
...5s*all1usiness5.a5gov5au for *ore infor*ation
"usiness Plan Te*plate +1;,31
Pla%e strategy
Ghen developing your place,distri1ution strategy consider the follo.ing/
.hat distri1ution channels and *ethods you .ill use7
.hether you4ll have a retail outlet and .here it .ill 1e located7 and
the geographic area your product,service .ill 1e availa1le in5
%o.nload the distri1ution strategy "usiness Iuide under Mar3eting at
...5s*all1usiness5.a5gov5au for *ore infor*ation5
Promotion strategy
)our pro*otional strategy .ill ensure that consu*ers find out a1out your product or
service5 There are four *ain pro*otional tools/
advertising7
selling7
sales pro*otion7 and
pu1lic relations5
%o.nload the pro*otion strategy "usiness Iuide under Mar3eting at
...5s*all1usiness5.a5gov5au for *ore infor*ation5
People strategy
Thin3 a1out the people .ho sell your product or service and are involved in its delivery5
)our people strategy is not 6ust a1out your internal staff, it also covers associates and
strategic partners, channel partners and suppliers5
%o.nload the people strategy "usiness Iuide under Mar3eting at
...5s*all1usiness5.a5gov5au for *ore infor*ation5
Pro%ess strategy
)our process strategy is concerned .ith the planning, develop*ent, i*ple*entation,
docu*entation and revie. of the syste*s that help you achieve the other aspects of
your *ar3eting strategy5 2f you have the right processes you4ll have the right product,
in the right Auantity to the right place at the right ti*e5
%o.nload the process strategy "usiness Iuide under Mar3eting at
...5s*all1usiness5.a5gov5au for *ore infor*ation5
"usiness Plan Te*plate +1=,31
Priorities< responsibilities and timeframes ;,hat4,ho4,hen=
Assign responsi1ilities to yourself and staff to *a3e sure your strategy gets
i*ple*ented5 Ma3e sure you set ti*elines so that everyone 3no.s .hen action
points need to 1e achieved5
"usiness Plan Te*plate +1B,31
"perational strategy
%escri1e in this section the internal operations and processes that ena1le the 1usiness
to achieve its short and long ter* goals5 Su**arise ho. the 1usiness .or3s along
.ith the pre*ises, plant, eAuip*ent and people reAuired to produce or provide your
products and services5
2n .riting this section of the 1usiness plan, you should also consider and revie. your
ris3 *anage*ent policies, internal controls, ho. you could use technology to operate
*ore efficiently, and any security issues5
.o%ation and premises
%etail the siKe and facilities reAuired and .hether you plan to 1uy or lease a property,
the costs involved, .here your operation .ill 1e 1ased and .hy, along .ith a
description of the 1uilding4s layout, dPcor and design5
2f you4re leasing, specify the ter* or duration of the lease, options held, 3ey dates,
rent, outgoings and other pay*ents under the lease, rental per sAuare *etre,
anticipated increases in rent over the ter* of the lease and the na*e of the o.ner and
*anaging agent5
2f you o.n the pre*ises, provide o.nership details, current value and any security
held over the pre*ises5
2f you4re operating a ho*eE1ased 1usiness, descri1e the area of the ho*e 1eing used5
Mention if the arrange*ent is adeAuate or not and any plans to *ove in the short or
long ter*5
%escri1e the pre*ises/ location, Koning, geographical and de*ographical surrounds,
passing vehicle and pedestrian traffic, facilities, fitEout, eAuip*ent, par3ing, the
condition of the 1uilding, ho. long the 1usiness has 1een there, the area occupied,
accessi1ility and visi1ility5 )ou *ay .ish to include the age of the 1uilding and any
interesting historical or tourist features5
2nclude any plans for alterations, e-tensions and *oves and co**ent on the overall
suita1ility of the acco**odation5
)ou *ay .ish to include a photograph here, or in the appendi- along .ith a floor plan5
#ere is .here you *ight also list the 1usiness4s days and hours of operation
Plant and e?uipment
#ere is .here you detail your plant and eAuip*ent reAuire*ents5
"usiness Plan Te*plate +1?,31
2f you4re starting a 1usiness, list under this heading the plant and eAuip*ent and any
other assets you need or have acAuired to esta1lish your 1usiness5 >ist ite*s
individually, or 1y type5
2f the 1usiness has 1een operating for at least one financial year, include 1oth the cost
price and the .ritten do.n value, .hich is the cost price less decline in value 8often
referred to as depreciation95 )ou *ay prefer to present this infor*ation in su**ary
for* and attach *ore detail in an appendi-5
Provide a separate listing of plant, eAuip*ent and other assets to 1e purchased over
the ne-t three years5 (ote that these purchases .ould 1e included in cashflo.
forecasts, and that the assets and their decline in value 8depreciation9 .ould 1e
reflected in forecasted state*ents of financial perfor*ance and financial position5
Use the ta1les 1elo. to present this infor*ation5
Plant, eAuip*ent and other fi-ed assets at .ritten do.n value 8cost less decline in
value or depreciation9 at +++++ 8date95 A *ore detailed schedule, sho.ing
purchase date and cost price of *a6or ite*s, is attached as appendi- A5
Schedule of plant, eAuip*ent and other fi-ed assets at ++++ 8date9
'sset :ritten do,n
*alue @
Total
Schedule of assets to 1e purchased over the ne-t three years
'sset 5ear 1
@
5ear !
@
5ear 6
@
Total
In*entory
Under this heading include infor*ation on the logistics of 1uying, controlling, costing,
delivering and *erchandising inventories5
"usiness Plan Te*plate +2,31
>ist all the *aterials reAuired to produce your products and services, .here you plan
to source the *aterials and ho. the finished product .ill 1e stored, trac3ed and
delivered5
Ma)or suppliers
2n 3eeping .ith the type of infor*ation provided under Nprofessional supportO, here is
.here you outline your 3ey suppliers including details a1out/
.here they are located
.hat they supply and in .hat Auantities
the cost and availa1ility of *aterials
their credit and delivery policies
their history and relia1ility
)ou *ay also .ish to list a 1ac3Eup supplier for critical ite*s and .hether you e-pect
to encounter shortages or fluctuating prices, and if so, ho. you plan to deal .ith this5
)ou *ay also .ish to outline your 1uying policies in your 1usiness plan, or, as 1elo.,
si*ply *ention .hy your *a6or suppliers .ere chosen5
)ou could also use the ta1le 1elo. to present infor*ation on *a6or service providers to
your 1usiness5
Ma6or suppliers, are listed 1elo.5
Produ%t Supplier Conta%t details Terms of trade
Product type 1
Product type 2
Product type 3
Product type !
/umber of days sto% to be held
2f applica1le for your 1usiness, use the ta1le 1elo. to calculate and present the
forecasted nu*1er of days that stoc3 is to 1e held over the ne-t three years5
The forecasted nu*1er of days that stoc3 is to 1e held for the ne-t three years is
sho.n 1elo./
Item $ore%ast
5ear 1
@
$ore%ast
5ear !
@
$ore%ast
5ear 6
@
Closing stoc3
Cost of goods sold
"usiness Plan Te*plate +21,31
(u*1er of days stoc3 on hand at year
end/
average stoc3 on hand - 3;: days
cost of goods sold
days days days
2ndustry 1ench*ar3 for nu*1er of days
stoc3 on hand F fro* DMCC "usiness
"ench*ar3ing
days days days
Sto%turn rate
The stoc3turn rate *easures ho. Auic3ly stoc3 is sold and replaced in an operating
period5 Using the ta1le 1elo., calculate and present the forecasted stoc3turn rate for
the ne-t three years5
The forecasted stoc3 turnover figures for the ne-t three years are sho.n 1elo./
Item $ore%ast
5ear 1
@
$ore%ast
5ear !
@
$ore%ast
5ear 6
@
Cost of goods sold
Average stoc3 value for the period
8opening stoc3 Q closing stoc3 divided
1y 29
Stoc3turn rate/
cost of goods sold
average stoc3 value 8nu*1er9 8nu*1er9 8nu*1er9
2ndustry 1ench*ar3 for stoc3turn F fro*
DMCC "usiness "ench*ar3ing 8nu*1er9 8nu*1er9 8nu*1er9
Aeorder points
Under this heading, descri1e ho. often and .hen inventories are ordered5 Mention
ho. reorder points have 1een esta1lished5
Shrinage
%escri1e here the syste*s you have in place to identify, Auantify and *ini*ise
shrin3age F the loss of inventory as a result of theft, da*age, loss and accounting
errors5 2ssues to consider include strong internal controls, policies and syste*s,
e*ployee a.areness, training and co*pliance progra*s and appropriately placed
signs and *irrors5
"usiness Plan Te*plate +22,31
Pri%ing of produ%ts4fee stru%ture
%escri1e here the price structure of the products or services that you sell5 2f you sell a
nu*1er of lines, the infor*ation could 1e presented in a ta1le as sho.n 1elo.5
Mar3up, gross profit, gross profit *argin and gross profit *argin contri1ution of each
category of our products is as follo.s/
Produ%t $ore%ast
sales
@
$ore%ast
%ost
pri%e
@
Marup
7
>ross
profit
@
>ross
profit
margin
7
>ross profit
%ontribution
of produ%t
7
Iroup 1
Iroup 2
Iroup 3
Iroup !
Total H H J H J 1J
Mer%handising
2f you are retailing 8fro* retail pre*ises, via a .e1site, party plan or so*e other
*ethod9, or .holesaling fro* a sho.roo*, include so*e infor*ation on ho. you
*erchandise your products5
Provide infor*ation on .indo., inEhouse and .e1site displays5 %o you organise
innovative, fresh, unusual pro*otions lin3ed to season, events and colour sche*es0
#o. do you differentiate your 1usiness, your .e1site, your pre*ises and your
products0
$ee Stru%ture
2f you provide services, rather than sell products, provide your price structure5
%epending on .hat type of 1usiness you operate, this could 1e a schedule of your
hourly rate or your rate for special services, oneEoff 6o1s and ongoing clients5 2nclude
an e-planation of ho. you deter*ined your fees and charges5
2f operating a one person service 1usiness you *ay .ish to use the follo.ing ta1le to
present this infor*ation5 2f your 1usiness is *ore co*ple-, the S"%C .or3shop
Costing and Pricing of Ioods and Services *ay 1e of interest5
Calculation of charge out rate for *y one person service 1usiness
Item @B ,eesB
hours
Annual profit reAuired H
"usiness Plan Te*plate +23,31
Add annual running costs H
Total revenue reAuired 8a9 H
Gee3s .or3ed per year .ee3s
#ours .or3ed per .ee3 hours
Total hours .or3ed 81J9 hours
Chargea1le hours availa1le 8 J9 819 hours
#ourly charge out rate 8revenue reAuired divided 1y chargea1le
hours9
8a9
819 H
#ourly charge out rate including IST H
Personnel ;human resour%es= strategy
2f you plan to e*ploy staff, no. or in the future, you need to specify the type of
e*ploy*ent arrange*ent you4re going to use, the nu*1er of staff you intend to
e*ploy, the positions they4ll hold and the duties they4ll perfor*5
2nclude the positions filled 1y o.ners and fa*ily, even if they are not paid a
co**ercial .age or salary for their contri1ution5
The la.s that govern e*ploy*ent conditions differ according to the type of
arrange*ent F ie fullEti*e, partEti*e, casual or contract F and .hether your e*ployees
co*e under the State or federal industrial relations syste*5
The fines and penalties for *ista3es in relation to e*ployee 1enefits such as
superannuation, .or3ers4 co*pensation, holiday pay and sic3 leave can 1e costly, so
it4s i*portant to consult the relevant e-perts 8such as the %epart*ent of Co**erce F
...5co**erce5.a5gov5au9 to ensure you get it right fro* the outset5 Provide the
na*e of any a.ard or industrial agree*ent covering your e*ployees and once you4ve
chec3ed that you4re co*plying .ith all the legal reAuire*ents of an e*ployer, including
having in place .or3ers4 co*pensation insurance, *a3ing superannuation
contri1utions and providing a safe .or3 place, you .ill 1e a1le to *a3e a state*ent to
this effect in the 1usiness plan5
Dor *ore infor*ation, go to the E*ploy*ent section of the S*all "usiness
%evelop*ent Corporation .e1site at ...5s*all1usiness5.a5gov5au5
<ther issues to consider include office space and furniture reAuire*ents, co*pany
vehicles, co**unication net.or3s 8co*puters and *o1ile phones9, payroll ta- and the
e-tra ad*inistration costs in relation to *anaging all of this5
Iiven the i*portance of a good tea* in achieving 1usiness success, it4s .orth ta3ing
so*e ti*e to for*ulate policies in relation to recruit*ent and retention, perfor*ance
*anage*ent, re*uneration structures and any opportunities for career advance*ent
"usiness Plan Te*plate +2!,31
and training5 This section of your plan can prove to 1e a valua1le tool in 1oth attracting
and retaining good staff5
%epending on the siKe of your 1usiness, you *ay also .ith to outline its organisational
structure .hich should clearly de*onstrate .ho reports to .ho* and the different
levels of accounta1ility and responsi1ility .ithin the 1usiness5
There are alternatives to e*ploying staff such as outsourcing, engaging su1E
contractors or using the services of a la1our hire fir* 8often referred to as a te*p
agency95
2n addition, co*plete the follo.ing su**ary of positions in the 1usiness in ta1le
for*at5
Su**ary of positions
Position
Title
CC',ard
%o*erage
Status Aate of
pay
@
"n-
%ostsC
@
Total
%osts
@
Dob
des%ript
in pla%eE
Total H H H
RR %etail the a.ard .hich covers your e*ployees
R <nEcosts/ superannuation of ? per cent7 .or3ers co*pensation insurance55
per cent, annual leave loading55
Strategi% allian%es
2f you have arrange*ents .ith other 1usinesses to contract out .or3 or 6oint venture
on *a6or contracts, provide infor*ation on these arrange*ents in this section5
2n*ironmental strategy
%ocu*ent here .hat you do or plan to do to *ini*ise the i*pact of your 1usiness on
the environ*ent, 1e it due to legislation, regulations, necessity or choice5 Ce*e*1er
that *any environ*entally friendly strategies can save you *oney and .in the
approval of clients and custo*ers5
"usiness Plan Te*plate +2:,31
$inan%ial strategy
Although it4s usually the last part of your 1usiness plan, the financial strategy is often
the *ost i*portant section in deter*ining the via1ility of your 1usiness proposition and
.hether you4ll 1e a1le to secure any funding or invest*ent5
This section of your 1usiness plan details the financial strategy you have in place to
achieve your 1usiness o16ectives and includes infor*ation in relation to/
the financial resources reAuired to set up and open the 1usiness 8if starting
a ne. 1usiness97
the financial resources reAuired to operate the 1usiness7 and
forecasts on the 1usiness4s perfor*ance 1ased on anticipated turnover and
running costs at this level of activity5
As a general guide, this section should cover the follo.ing/
financial o16ectives
capital structure
cashflo. forecasts
state*ent of financial perfor*ance 8profit and loss9 forecasts
state*ent of financial position 81alance sheet9 forecasts
1rea3even analysis5
$inan%ial ob)e%ti*es
#ere is .here you list the 1usiness4s financial o16ectives .hich *ay include a range of
targets in relation to profit, de1t reduction, invest*ent and gro.th, and the ti*efra*e
in .hich you e-pect to achieve the*5 )our o16ectives should include a *i- of shortE
ter*, *ediu* ter* and longEter* goals5
Set SM'AT o16ectives F Specific, Measura1le, 'ctiona1le, Aealistic and Ti*ed95
Dinancial o16ective 1
Dinancial o16ective 2
Dinancial o16ective 3
Capital stru%ture1 debt e?uity ratio and ,oring %apital
2n this section provide 1rief, general infor*ation on the capital and 1orro.ings of the
1usiness, and sho. the calculation of its de1t eAuity ratio and .or3ing capital5
"usiness Plan Te*plate +2;,31
+ebt e?uity ratio
The de1t eAuity ratio S total lia1ilities
o.ners4 eAuity
:oring %apital
Gor3ing Capital S Current assets F current lia1ilities
The cashflo. forecasts de*onstrate that sales inco*e .ill cover 1an3 loan
repay*ents and all other co**it*ents5
Sales< pur%hases< debtor %olle%tions and payments fore%asts
2nclude a su**ary of these forecasts in the *ain 1ody of the 1usiness plan, using the
ta1le 1elo., and include the co*plete forecasts for three years in the appendi- to the
1usiness plan5
Sales, purchases, de1tor collections and pay*ents to creditors forecasts
%etailed forecasts are provided in the appendi- to this 1usiness plan5 A su**ary of
3ey figures is provided 1elo.5
Item 5ear 1
@
5ear !
@
5ear 6
@
Sales
2ncrease over previous year4s sales F
esti*ated at
Purchases
Purchases as percentage of sales J J J
Pay*ents to trade creditors
%e1tor collections
Cashflo, fore%asts
A cashflo. forecast sho.s ho. and .hen cash .ill flo. in and out of your 1usiness5
2t helps you plan e-penditure and .hen you4re li3ely to reAuire an in6ection of funds to
cover *onthly 1ills and pay*ents or the cost of capital and ra. *aterials5 )ou *ay
need to apply for a line of credit 8overdraft9 or a shortEter* loan to cover these
e-penses if your cash flo. pro6ection de*onstrates a potential shortEfall in your 1an3
1alance5
"usiness Plan Te*plate +2=,31
2nclude a su**ary of your cashflo. forecasts in the *ain 1ody of the 1usiness plan,
using the ta1le 1elo., and include the co*plete forecast for three years in the
appendi-5
Cashflo. forecasts for three years are provided in the financial state*ents in the
appendi- to this 1usiness plan5 A su**ary of 3ey figures is provided 1elo.5
Item 5ear 1
@
5ear !
@
5ear 6
@
2nflo.s of funds
Sales
IST
<utflo.s of funds
E-penses
IST on e-penses
IST re*ittances to AT<
>oan repay*ents
Proprietors4 dra.ings
"an3 1alance at year end
In%ome statement and balan%e sheet fore%asts
An 2nco*e State*ent 8so*eti*es referred to as a profit,loss state*ent9 F provides a
snapshot of your 1usiness4s inco*e, e-penses and profit for a specific period in ti*e,
such as a financial Auarter, si- *onths or a financial year5 The 2nco*e State*ent
de*onstrates the profita1ility of your 1usiness 1y sho.ing the inco*e *inus
e-penses, .hich eAuals your profit or loss ie/ income expenses = profit/loss.
The "alance Sheet de*onstrates your 1usinessTs net .orth at a particular point in ti*e
F often at the end of an accounting period5 2t co*prises three categories/
Assets F are o16ects the 1usiness o.ns that have *onetary value
>ia1ilities F are de1ts to creditors
EAuity F is .hat re*ains .hen total lia1ilities are su1tracted fro* the total assets
2nclude a su**ary of your inco*e state*ent and 1alance sheet forecasts in the *ain
1ody of the 1usiness plan, using the ta1les 1elo., and include the co*plete forecasts
for three years in the appendi-5
A forecast inco*e state*ent for the three years is included in the financial state*ents
in the appendi- to this 1usiness plan5 A su**ary of 3ey figures is as follo.s/
Item 5ear 1 5ear ! 5ear 6
"usiness Plan Te*plate +2B,31
@ @ @
Sales
Iross profit
Iross profit *argin J J J
E-penses
(et profit
Balan%e sheet
Dorecast state*ents of financial position for the three years are provided in the
financial state*ents provided in the appendi- to this 1usiness plan5 A su**ary of 3ey
figures is as follo.s/
Item 5ear 1
@
5ear !
@
5ear 6
@
Current assets
(onEcurrent assets
Current lia1ilities
Gor3ing capital 8current assets F
current lia1ilities9
Total lia1ilities
(et assets 8total assets F total
lia1ilities9
Breae*en analysis
)our 1rea3even point is that point at .hich inco*e fro* sales covers all costs,
including overheads5 At this point the 1usiness .ill *a3e neither a profit nor loss5 Sales
volu*e 1elo. this point .ill result in a loss, .hile sales a1ove this point .ill render a
profit5
Using the ta1le 1elo., provide co**ents and an analysis of your current 1rea3even
point and ho. this *ay change over the ne-t three years, .ith changes in gross profit
and e-penses5 Provide the sales figure in e-cess of the 1rea3even figure for the
current year plus the three forecast years5
Item Current year
@
$ore%ast
5ear 1
@
$ore%ast
5ear !
@
$ore%ast
5ear 6
@
Iross profit *argin J J J J
Total fi-ed costs
"rea3even sales
Sales
Sales e-ceed
1rea3even 1y
"usiness Plan Te*plate +2?,31
Sales e-ceed
1rea3even 1y 8J9 J J J J
"usiness Plan Te*plate +3,31
'ppendi%es
82nclude in the appendi- an inco*e state*ent and 1alance sheet for the current and
previous year, if availa1le, and for the ne-t three years, forecasted financial
state*ents, in the follo.ing order/
1alance sheets
inco*e state*ents
cashflo. forecasts
purchases and pay*ents to creditors forecasts
sales and de1tor collections forecasts5
Co**unicate your 1usiness plan to the reader concisely and clearly7 include in the
appendi- ite*s that, .hile i*portant, .ould 1e 1etter covered in su**ary in the *ain
1ody of the plan5 Start each appendi- on a ne. page5
"usiness Plan Te*plate +31,31
S
e
c
t
i
o
n

:
S
e
c
t
i
o
n

:
S
e
c
t
i
o
n

:
S
e
c
t
i
o
n

:
S
e
c
t
i
o
n

:
S
e
c
t
i
o
n

: