Guide to Writing a Business Plan

Your business plan is a working document. It is not meant to be written

and then forgotten. You should review it regularly and if necessary
change it to ensure your plan (and your business) stays focused on the
objectives.

1. Use this template to write your own short business plan. If you’re
looking for a business plan template to assist in getting a bank loan
visit http://plansandchecklists.business.vic.gov.au

2. The text in RED is instructional. You should delete it before printing or

sending your plan.

3. Any text in blue indicates a link to a webpage or document. Press

control and click anywhere in the link to launch the page. You should
delete these links before printing or sending your plan.

4. Keep your sentences short and concise. Use bulleted lists to highlight
key points.

5. Break up your paragraphs with extra headings, as shown with the

example business text.

6. This template works best when used in Microsoft Word ’97-2007

Page 1 of 17. June 2010 <Business Name> l Business Plan

 <your logo here>

<Business Name>

Business Plan

<Business Address>

Prepared By: <Your Name>

Table of Contents

1. Business Overview ...................................................................................3

2. Products/Services .....................................................................................4
3. Business Structure and Management....................................................6
5. Competition ................................................................................................9
7. Finances....................................................................................................13
8. Action Plan................................................................................................15
Appendix I: Competitor Analysis..............................................................16
Appendix II: Strategic SWOT Analysis.....................................................17

Page 2 of 17. June 2010 <Business Name> l Business Plan

1. Business Overview

Include in your overview:

• what your business does, your products or services

• how long you have been operating

• the industry you’re in

• point of difference over your competitors—such as different location,

cheaper price or better service—and key benefits to your consumers

• where the business will be in two-to-five years and how this will be
achieved, e.g. your position financially and in the market place (you may
need to complete this after you’ve worked through the other sections)
Outline of services
Example Business is a complementary medicine business based in
Melbourne. The primary service is Kinesiology which promotes physical,
emotional, mental, energetic and spiritual health.

History
Example Business has been in operation since February 2009 and sits
within the Health Services and Complementary Medicine / Alternative
Health Therapies industry. Example Business has one owner/manager and
no staff are employed at this stage.

Point of difference
The business stands out from other complementary medicine businesses
by:
• being a holistic therapy which treats the whole person (physical,
emotional, mental, energetic and spiritual)
• adopting a modality with a process that is natural, gentle, safe,
non-invasive and for people of any age and gender (including pets)
• encompassing an education program that teaches clients to self
heal (clients are often looking for more than just an hour
treatment)
• focussing on a strong online marketing presence
• maintaining affordable services such as concessional rates and first
session specials

Service benefits
From my personalised Kinesiology process, clients will be treated as a
‘whole person’ with a better understanding of the inner workings of their
lives. Clients will be empowered with the knowledge and tools to heal and
be healthy. The business will be accessible to a wider range of clients
through: affordability, Kinesiology requires an average of only a few
sessions per issue, and close proximity to local transport.

Five year plan

In five years, Example Business will have a network of clients in the
Melbourne region and a national and international following in the online

Page 3 of 17. June 2010 <Business Name> l Business Plan

environment. The business will be sustainable with the ability to support
the owner/manager on a full time basis.

2. Products/Services

Describe what you are going to offer your customers, including:

• exactly what you are going to sell or provide and how it will be produced

• branding and packaging (where applicable)

• ongoing product or service development

• your product/service’s features and how they compare to major

competitors

• the price and how you have determined it (by considering production
costs, labour and other overheads)

• any dealings with supplier/s

Tip

Get information about defining your product

Service: now and ongoing

Kinesiology is the primary service. The training for this has been
completed as at December 2009. The supporting equipment and stock
have been purchased within the start-up budget allocated. Ongoing
training and industry networking activities will be sought throughout the
year through short courses, conferences and research. This will ensure
skills and knowledge are kept up to date and to broaden the services
offered. 20 CPE (continuing professional education) hours per year are a
requirement for association, health fund and insurance membership.

Branding
A logo with the business name has been designed and implemented on all
marketing and advertising material to enable brand recognition and to
ensure a consistent image is maintained. This includes business cards,
flyers, posters, articles, online business listings and the business website.
The logo represents the idea of balance, a key aim of Kinesiology. The
colour yellow is the main colour due to its association with happiness and
energy.

Price
Since completing the final level of training in Kinesiology, the price for a
session is based on timeframe and full rate or concessional:
1. $80/$65 for one hour (full rate/concession card holders)
2. $110/$90 for one and a half hours

Price was determined by the average price of Kinesiologists in the

Melbourne region who practice at the same level. To be both affordable to

Page 4 of 17. June 2010 <Business Name> l Business Plan

as many clients within the target audience and to charge an ethical
amount, the lower end of the scale was chosen. Clients with eligible
private health fund membership will also be able to receive a rebate.

Price was also determined by ongoing business expenses which include:

association and insurance membership, stock replacement, room rental,
gas and electricity supply, telephone and internet services, further
training, marketing and advertising.

At the end of each financial year the price will be reviewed based on
industry trends, business expenses and any further training attained.

Suppliers
In the future the business may expand to include product sales. At the
moment, suppliers for equipment and stock have been sourced and
registered with. The business is purchasing these at practitioner prices.

Page 5 of 17. June 2010 <Business Name> l Business Plan

3. Business Structure and Management

Describe the ownership structure (such as sole trader, partnership, company)

including:

• reasons for chosen structure

• any trademarks, patents, web addresses and other intellectual property

you need to protect

• owners and any legal agreements you may need

• any key staff, their involvement, responsibilities and expected salaries

• your exit strategy

Tip

Structure
The structure of the business is Sole Trader. The benefits of this structure
include: low level of legal and tax formalities involved in setting up the
business, inexpensive to set-up as a sole trader, and the control and profit
remains entirely with the business owner.

Protection
The business has registered the name ‘Example Business’ in Victoria only.
As a sole trader, the business has no protection from a company to take
the name due to ATO laws.

The business has registered two URLs ‘www.examplebusiness.com.au’ and

‘www.examplebusiness.net.au’. This needs to be renewed every two
years.

The business has not registered a trademark or any other IP.

Owners and staff

As a sole trader, the business does not have any legal or informal
agreement with any other owner or business. The business does not
employ any staff. This is a consideration for the five year mark.

Page 6 of 17. June 2010 <Business Name> l Business Plan

4. Market Analysis

Research your market and industry. Consider the following sources: industry
profiles on IBISWorld (which can be viewed for free at any Victorian Business
Centre), trade magazines, government reports such as the Australian Bureau of
Statistics, consumer surveys, running focus groups, identifying your competitors,
online keyword analysis etc.

Briefly outline what market your product/service will serve and why. For example,
if you plan to publish a magazine, you need to know about publishing trends,
online competitors, other publications that cover your market (including their
circulation, advertising rates, reader profiles) and identify a viable gap to fill.

Make sure you include:

• who will buy your product or service

• where your market is located: local, regional, state, national or

international

• the state of the market: is it growing, declining, segmented?

• market influences such as seasonal price fluctuations or trends

• the price range: based on your target market will it be high, low or in the
middle

Tip

Target audience
Complementary medicine targets people of all ages from babies to the
elderly. Kinesiology can also be used with pets. Kinesiology targets any
problem from physical complaints such as pain and disease, emotional
problems such as depression, mental problems such as memory loss to
spiritual problems such as life goals.

To further define the audience, Example Business specialises in:

• Women’s health
o While females comprised half the population in 2004-05, they
accounted for 62% of people who had visited a
complementary health therapist in the previous two weeks
(of the census) and 56% of people who had visited other
health professionals.
• Sleep disorders
o Over 1.2 million Australians experience sleep disorders.
• Stress, anxiety and depression
o Depression is one of the most common of all mental health
problems. One in five people experience depression at some
stage of their lives. While everyone feels anxious from time
to time, some people experience these feelings so often
and/or so strongly that it can affect their everyday lives.
• Emotional and spiritual well being

Page 7 of 17. June 2010 <Business Name> l Business Plan

Location
The location of the business is currently Brunswick on the North side of
Melbourne. The council is Moreland City. The service requires clients to
travel to Brunswick. While the business has attracted clients from other
areas of Melbourne such as the Southern Metro region, the target is
mainly the inner and outer Northern suburbs.

North Melbourne is suffused with successful complementary medicine

businesses which highlights the community as common customers of
complementary medicine. This is also a challenge to the business with a
high number of competitors. A move to another affluent area that is less
dominated is a possibility.

From a national and international perspective, the business website

utilises online social networking in the form of blog posts. The purpose of
this is to support and educate those that cannot travel to the clinic or
cannot afford the services.

Market trends
The enumerated population (those counted on census night in Moreland)
was 135,205. However, the estimated resident population count (an
estimate that accounts for people not counted in the census) was 144,015
(as at 30 June 2007).

Individual income varies considerably with the majority earning

somewhere between $150 and $799 per week. This data related to people
aged 15 years and over. Over 6,000 individuals in the Moreland area work
in the Health Care and Social Assistance industry.

The highest age group in Moreland is 20 to 44 years. People who visit

health professionals tend to be older than the general population, because
illness increases with age. However, the proportion of the population who
visited complementary health therapists was highest between the ages 25
and 64 years (ABS).

Since the 2006 Census it is estimated that the Moreland community will
increase by 1 to 1.5% each year. There are currently 10,200 registered
businesses.

Several reports indicate that over 50% of Australians are using alternative
therapies and this number is increasing significantly.

Influences
Despite the recent economic recession, the trend toward alternative
therapies is increasing. The ABS reports that "Complementary health
therapists are relatively small occupation groups but have been growing
fast, according to census data. Likewise, the number of people who
reported having consulted such a therapist in a two-week period increased
from around 500,000 in 1995 to almost 750,000 in 2004-05 (ABS 2008).

Page 8 of 17. June 2010 <Business Name> l Business Plan

An IBISWorld special report for 2010 predicted alternative health
therapies will be the seventh highest growth industry for 2010, with an
increase of 5.1%. Growth “has been encouraged by better acceptance and
understanding of treatments, rising consumer focus on health due to
Australia’s ageing population and increased coverage of alternative health
therapies by private health insurance providers.”

Price fluctuations are uncommon other than those related to inflation.

Price range
Given the average income in the Moreland City Council is in the middle
socio-economic bracket, the price will remain on the lower end of the
scale. This is coupled with a marketing approach that targets affordability.

5. Competition

List details about your competitors including:

• who and where they are

• how you'll position your product or service against them

• your product/service features against theirs and what gives you a

competitive edge

• the benefit/s of your service/product in comparison to the competition

• comparison of your pricing, promotion and distribution

Tips

• To help you assess your strengths and weaknesses against your

competitors, complete the Competitor Analysis Template, Appendix I

Competitor’s profile
According to the census, 8,600 people were employed in Australia as
complementary health therapists in 2006. This was 80% higher than the
number in 1996. The leading occupations were naturopaths (2,980) and
chiropractors (2,490), up 56% and 45% respectively from 1996. The
fastest growing group was osteopaths, tripling in number between 1996
and 2006. Over the same period, the Australian population increased by
12% and the total number of health professionals rose by 31%.

The majority of each type of complementary health therapist were owner

managers, ranging from 91% of homeopaths to 72% of naturopaths.

The Moreland City Council region has a particularly large number of

complementary medicine businesses ranging from home based and small
shopfront clinics to larger scale multi-disciplinary health centres.

Point of difference

Page 9 of 17. June 2010 <Business Name> l Business Plan

The business stands out from other complementary medicine businesses
by:
• being a holistic therapy which treats the whole person (physical,
emotional, mental, energetic and spiritual)
• adopting a modality with a process that is natural, gentle, safe,
non-invasive and for people of any age and gender (including pets)
• encompassing an education program that teaches clients to self
heal (clients are often looking for more than just an hour
treatment)
• focussing on a strong online marketing presence
• maintaining affordable services such as concessional rates and first
session specials

Service edge
Example Business approaches complementary medicine in a holistic way
by treating the ‘whole person’ and giving clients a better understanding of
their lives. Clients will be empowered with the knowledge and tools to heal
and be healthy. Kinesiology promotes physical, mental, emotional,
energetic and spiritual health.

Price and promotion comparison

For similar services, pricing ranges from $70 to $180 per hour in the
Melbourne region. Those on the higher end of the scale have increased
their prices due to further training and extensive experience. Example
Business has set the price at the lower end of the scale to enable
accessibility to a wide range of clients without undercutting the
competition (predatory pricing).

Page 10 of 17. June 2010 <Business Name> l Business Plan

6. Marketing Strategy

Show how consumers will find out about your product/service including:

• where, how and when you will promote your product/service such as
shopping centre promotions, point of sale, viral marketing, billboards,
loyalty schemes, etc

• what type of printed materials you’ll create

• your website or online presence

• details and cost of advertising including print, online, TV and radio

• product/service launch plans

• how you will measure the success of your marketing strategy and various
promotions

• how pricing will encourage sales (e.g. selling in bulk)

• ‘wishlist’ for further marketing in the future (ideas to look at further down
the track with more $ or more experience)

Tips

• To help you assess which marketing strategies will best reach your target
market, complete the Strategic SWOT Analysis Template, Appendix II

Promotion
During the initial set-up phase and the first few years of business, the
budget for marketing is minimal. Whilst the majority of clientele seek out
new therapists by word of mouth, specific marketing tools have been
chosen for their cost effectiveness. The business logo and colours will be
consistent across all material to encourage brand recognition. The list of
current marketing tools is as follows:
• Small local newspaper ad (this was found to be ineffective)
• Low cost local exhibitions that target lifestyle, health and wellbeing
• Website/blog with online business listings (free and low cost)
• Small Google Adwords campaign
• Letterbox drop with flyers (also found to be ineffective)
• Flyers and business cards to be taken to local businesses
• Networking with other practitioners

Online presence
The business website and online listings is the focus for marketing at this
stage. Search Engine Optimisation has been a focus for content and
functionality. The ‘feature article’ section will allow for a diverse range of
topics to be explored. A ‘Subscription’ to email updates is an avenue for
further marketing and notifications of new articles and special service
prices. From this, Example Business hopes to gain an online community
following and increase the discoverability for new clients.

Page 11 of 17. June 2010 <Business Name> l Business Plan

Example business is listed on Natural Therapy Pages as this is the most
widely used practitioner listing in Australia. Other online business listings
have been sourced and registered with. This will increase the presence of
the website on Google search results.

Cost
The cost for marketing is:
• Printing of business cards (500): $65
• Printing of flyers (200): $22
• Printing of banner for exhibitions: $16
• Website: $3,149.50
• Google Adwords: $1,200 (for one year)
• Local newspaper ad: $187.00

Launch Plan
The launch of marketing material will be rolled out in three phases:

Phase 1 (set-up): Local letter box drop, Natural Therapy Pages listing
and local newspaper advertisement
Phase 2 (expand): Website launch, Google campaign, further online
listings
Phase 3 (maintain): Maintain website with new articles and Google
advertising (dependent on marketing budget) and exhibition stalls

Measuring success
Evaluation of the effectiveness of each marketing campaign will be carried
out every six months. New clients will be surveyed as to how they found
out about Example Business and website analytics will evaluate online
trends (both the business website, Google and Natural Therapy Pages
allow for analytical tracking). Newspaper ads and letterbox drops have
already proven to be ineffective.

Business profit will underpin the ability to extend the marketing campaign
beyond the current three phases.

Page 12 of 17. June 2010 <Business Name> l Business Plan

7. Finances

Summarise your financial situation including:

• how you'll finance your business, e.g. business loan, personal funds,
investment capital

• costings, including your start-up costs, salary and fixed overheads

• financial projections including how much you will need to make to break
even, when you are likely to make a profit and growth expectations

Tip

Find an accountant to help you by using

Finance

Example Business start-up costs were funded by personal savings

of $26,088. As the business has begun on a part time basis, a
supplementary part time job has been sourced to support the
developmental stages. The business has no employees.

Basic costing

Training: $19,000

Business name registration: $79.50

Insurance: $200.00 (annual)

Association membership: $180.00 (annual)

Equipment and stock: $3,079

Website development, hosting and domain purchase: $3,149.50

Accountant fee: $400

Financial projections

It is estimated that within a five year time period the business will
be running full time and at a profit to support the owner/manager.
At the eighteen month mark (current), the business is attracting
new clients on a weekly basis and is running part time. The desired
growth is to reach and maintain twenty sessions per week (an
average of four sessions per working week day).

Validate your summary by completing these financial templates and attaching

them to the end of your business plan. Download these templates and guides and
save them separately.

• (MS DOC 40Kb)

These are your start-up costs which will not be repeated, e.g. setting up

Page 13 of 17. June 2010 <Business Name> l Business Plan

 premises, licences, buying equipment, market research, etc

• (XLS 32Kb)
This shows your profit and loss for the first 12 months: this will include
sales revenue, product costs and expenses

• (XLS 51Kb)
Most small businesses use their cash flow to show net worth, however this
is useful for bigger businesses

• (XLS 29Kb)
Calculate how much cash you will need to keep your business running,
irrespective of expected profit, and where it will come from. This will help
you determine your overall overheads

• (PDF 123Kb)
This tells you how much money you need to make to run your business
and is useful to calculate your required cash flow

Tips

• Access other

Page 14 of 17. June 2010 <Business Name> l Business Plan

 8. Action Plan

Your action plan is the most important part of your business plan. It manages
how you’re going to achieve your business plan objectives, so review it regularly
and use it to control your activities. List the actions by key areas such as:

• establishment

• legal

• finance

• marketing

List the key tasks to be done, by whom and by when. Don’t make them too
detailed or they become unworkable. If you don’t achieve a task, reschedule it,
but if it’s still not done by the second date, ask why. Is it too large? Is it unclear
how it will help the business? Do we have the skills to do it? See example below.

Key Objectives Task By Whom By When

Establishment
Register business and CP 15 Dec
trademark
Research and purchase FB 15 Dec
licences
Finalise premises - Rental agreement TS 1 Feb
- Redecorate
- Finalise office set up
Legal
Contracts Consult with lawyer FB 15 Dec
Finalise contracts FB 15 Jan
Sign TS/CP/TGJ/FB 1 Feb
Finance
Determine fixed - Get costings CP 15 Dec
overheads - Meet with accountant
Determine financial Identify amount to reduce FB 1 Jan
objectives loan
Finalise cash flow - Review P&L with managers CP/TS/ FB 1 Jan
plan - Complete cash flow plan
Finalise initial finance Review finance documents CP 1 March
Marketing
Determine sales and Identify sales in each quarter FB 1 Jan
marketing objectives for first year
Determine launch Outline plan TS 1 Feb
plan
Agreement and decision on TS/CP/TGJ/FB 1 March
implementation
Create a brochure Agree concept TGJ 15 March
Approval of copy TGJ/CP 30 April
Print TGJ 10 May
Distribute brochure TGJ 1 June

Page 15 of 17. June 2010 <Business Name> l Business Plan

Appendix I: Competitor Analysis

Use this table to list your competitors and how you compare against them. Think
about how your business can improve on what they are offering.

Competitor Size Strengths Weaknesses

Their name Small, medium or Their main strengths, Their main

large e.g. Staff including their unique weaknesses
#s, estimated value to customers e.g.
percentage of convenience, price,
market share quality, service
*Inner city retreat *Marketing approach
ambiance may limit their reach
Total *Multi-disciplinary team *Crowded space for
Small
Tranquillity *Targeted outcome (relax) the number of
appropriate for city practitioners
location
*Uncommon service
*Multiple type may mean people
services/qualifications won’t try it
Life Evolution Small
*Price (offering free mini *Narrow approach
services) *Jargon used on
marketing material
*Multi-disciplinary team
*Dispensary of herbs and *Location difficult to
Local Holistic find
Small natural remedies
Health
*Health store with books *Price is upper market
and other products

Page 16 of 17. June 2010 <Business Name> l Business Plan

 Appendix II: Strategic SWOT Analysis

A strategic SWOT (strengths, weaknesses, opportunities and threats) analysis will

help you turn your knowledge into strategy which you can then turn into actions.
It provides direction to the business and its marketing strategies.

Use this table to describe your businesses strengths, weaknesses etc and develop
strategies that will help you eliminate or mitigate them. Lists ways you can
capitalise on your strengths and take advantages of opportunities.

Consider turning the strategies into actions using your Action Plan.

Strengths
Advantages the business can
exploit, e.g.
• good customer service
• innovative edge
• unique products
Weaknesses
Areas of the business that need to
be acted on, e.g.
• poor website
• not enough staff training

Opportunities Strategies using strengths Strategies to reverse

Marketplace areas that can
be built on, e.g.
• gaps in the market
• competitor closure
to address opportunities
Ways to take advantage of business
strengths, e.g.
• promoting good customer
service to attract
competitor’s customers
weaknesses to address
opportunities
Ways to ensure weaknesses don’t
hamper opportunities, e.g.
• hiring an experienced trainer
to up-skill staff
• provide better customer
service, something no one is
offering well at the moment

Threats Strategies to counter threats Strategies to fix

External issues that could
affect the success of the
business, e.g.
• decrease in
consumer demand
• sudden increase in
costs
with strengths
Ways to use business strengths so
threats are not a problem, e.g.
• launching new product to
revitalise consumer demand
vulnerabilities
Ways to address areas where the
business may be vulnerable, e.g.
• utilising new technologies or
social media to reach
potential customers
• adapting green practices to
minimise costs

Page 17 of 17. June 2010 <Business Name> l Business Plan