Pawan 5629 Bsbmgt 617 Assessment 1 Project 1 2 4 1 PDF

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BSBMGT617 Develop and implement a business plan

Assessment 1 – Project

STUDENT NAME:

PAWAN Kumar

STUDENT ID:

5629

(if applicable) DOB: ASSESSMENT DATE: STUDENT DECLARATION:

I certify that this is my own work.

STUDENT’S SIGNATURE:

PAWAN kumar

ASSESSOR’S NAME: ASSESSOR’S COMMENTS:

SATISFACTORY ASSESSOR’S SIGNATURE: DATE:

Please Note:

NOT YET SATISFACTORY

Ideally there are provisions for consultation “key stake holders”. This provision however must be considered by the Registered Training Organisation that facilitates this assessment as it is beyond the control of the author of the resources and assessment materials for this unit of competency.

ASSESSMENT INSTRUCTIONS Please complete the student details section. This project consists of 2 parts: Part A – requires you to evaluate (if applicable) and plan and develop a business plan for your workplace or as determined by your trainer or teacher. Part B – requires you to provide an overview how you will monitor performance of the business plan during implementation and how you will respond to performance data once the business plan has been implemented.

This assessment is one form of assessment type that is used to collect evidence and will count towards gaining competence toward this unit. To demonstrate competence each question must be answered by the student. You will be required to complete other relevant assessment tasks for this unit. This project– requires you to plan for and develop a complete business plan. Essentials Requirements as outlined in the “Context of and specific resources for assessment in the TP for this unit”: Assessment must ensure: •

access to appropriate documentation and resources normally used in the workplace.

You are required to use an existing business plan in your workplace or at a minimum have the recent trading figures and financial details to review the business’ operation. Alternatively your trainer or teacher may provide you with a realistic business plan to be applied to an operation with which you are familiar.

Additional Resources provided for the purpose of this assessment: •

A business plan template (Word File: BusinessPlanTemplate xx) and a Business Plan Guide (Wordfile: BusinessPlanGuide xx) which provides detailed instructions for the completion of each section of the business plan template sourced from www.business.gov.au

•

A template for a 5 year balance sheet forecast which may be used if desired (Excel sheet: BalanceSheet_5Year).

•

A sample business plan (Word File: Cafe-Paradiso-sample-business-plan) sourced from https://www.business.qld.gov.au/business/support-tools-grants/tools/business-planning-kit

•

An online template with instructions to prepare a step-by-step business plan can be used by registering for free with http://toolkit.smallbiz.nsw.gov.au/planning

Part A – Plan and develop the business plan Your Task: You are required to review the existing business plan where available and plan and develop anew business plan for the organisation, addressing all criteria outlined below: Where the organisation has a an existing business plan, review and evaluate the following documentation if there is no existing business plan these need to be developed using for example the provided resources listed above. Create a draft and consult with your selected stakeholders to clarify or verify each aspect. Attach a briefing document which outlines with whom you have consulted and details of what was discussed. You need to reference each source you access to research information like statistics, products, legislation etc. and attach this as a bibliography to completed work. Ans. a business pal

As a guideline the following key points need to be addressed (based on the Business template xx) – your format may however vary: •

Summary

•

The Business- a business plan is a formal statement of a set of business goals , the reasons they are belived attainble and the plan for reaching those goals . it may also contain background information aboutbthe organisation or team attempting to reach those goals

•

The Market

•

The Future

•

The Finances

•

The Business

•

Business details

•

Registration details

•

Business premises

•

Organisation chart

•

Management & ownership

•

Key personnel

•

Products/services

•

Innovation

•

Insurance

•

Risk management

•

Legal considerations

•

Operations

•

Sustainability plan

•

The Market

•

Market research

•

Market targets

•

Environmental/industry analysis

•

Your customers

•

S.W.O.T. analysis

•

Your competitors

•

Advertising & sales

•

The Future

•

Vision statement

•

Mission statement

•

Goals/objectives

•

Action plan

•

The Finances

•

Key objectives & financial review

•

Assumptions

•

Start-up costs for [YEAR]

•

Balance sheet forecast

•

Profit and loss forecast

•

Expected cash flow

•

Break-even analysis

•

Supporting documentation

• Executive summary

The executive summary of your business plan introduces your company , explain what you do , and lays out what you are looking for from your readers .ideally the executive summary can act as a stand alone document that covers the highlights of your details plan . in fact it is very common for investors to ask for only the executive summary when they are evaluating your business . if they like what they see in the executive summary , they will often follow up with a request for a complete plan , a pitch presentation and more in depth financials Because your executive summary is such a critical component of your business plan , you will want to make sure that it is as clear and concise as possible .cover the key highlights of your business , but do not into too much details . ideally your executive summary will be one to two pages at most , designed to be quick read that sparks interest and makes your investors feel eager to hear more The critical components of wining executive summary – Business overviews = your business that sums up the essence of what you are doing but is often more effective if the sentence describe what your company actually does .

Problem – summarize the problem you are solving in the market . every business is solving a problem for its customers and filling a need in the market

Solution - this is your product or service . how are you addressing the problem you have identified in the market ? Target market – Who is your target market , or your ideal customer ? how many of them are there ? its important here to be specific If you are a shoe company, you are not targeting everyone just because everyone has feet . you are most likely targeting a specific market segment such as style –conscious men or runners . this will make it much easier for you to target your marketing and sales efforts and attract the kinds of customers that are most likely to buy from you Competition – how is your target market solving their problem today ? and it is critical to provide an overview in your executive summary

Company overview and team – provides a brief overview of your team and short explanation of why you and your team are the right people to take your idea to market Investors put an enormous amount of weight on the team –even more than on the idea because even a great idea needs great executions in order to become a reality Financial summary – highlight the key aspects of your financial plan , ideally with a chart that shows your planned sales , expenses and profitability Funding requirement – if you are writing a business plan to get bank loan or because you are asking angel investors or venue capitalists for funding , you must include the details of what you need in the executive summary

Milestone and traction – the last key element of an executive summary that investors will want to see is the progress that you have made so far and future milestone that you intend to hit . if you can show that your potential customers are already interested in – or perhaps already buying – your product or service , this is great to highlight Opportunity – there are four main chapters in a business plan- opportunity , execution , company overview and financial plan. the opportunity chapter of your business plan is where the real meat of your plan lives – it includes information about the problem that you are solving , your solution , who you plan to sell to , how you product or service fita into the existing competitive landscape you will also use this section of your business plan to demonstrate what sets your solution apart from others, and how you plan to expand your offerings in the future

people who read your business plan will already know a little bit about your business because they read your executive summary the problem and solution – start the opportunity by describing the problem that you are solving for your customers . what is the primary pain point for them ? how are they solving their problem today? May be the existing solutions to your customer’s problem are very expensive or cumbersome . for a business with a physical location , perhaps there are not any existing solution within reasonable driving distance . defining the problem you are solving for your customers is far and away the most critical element of your business plan and crucial for your business success. If you cannot pinpoint a problem that your potential customers have , then you might not have a viable business concept.

Target market – now that you have detailed your problem and solution in your business plan , it is time to turn your focus towards targets market ; who are selling to ? Depending on the type of business you are starting and the type of plan you are writing , you may not need to go into too much details here . no matter what , you need to know who your customer is and have a rough estimate of how many oof them there are . if there are not enough customers for your product or service , that could be a warning sign. Market analysis and market search – if you are going to do a market analysis , start with some research . first, identify your market segments and determine how big each segment is . a market segments is a group of people that you could potentially sell to Do not fall into the trap , through , of defining the market as “ everyone “ . the classic example is a shoe company . while it would be tempting for a shoe company to say that their target market is everyone who has feet , realistically they need to target a specific segment of the market in order to be successful .

Your ideal customer – when you have your target market segment defined , it is time to define your ideal customer for each segments. Key customers – the final section of your market chapter should discuss customers. This section is really only required for enterprise companies that have very few customers . most small business and typical start-ups can skip this and move on . but if you selling to other businesses , you may have a few key customers that are critical to the success of your business , or a handful of important customers that are trend leaders in your space . if so, use this final portion of your target market to provides details about those customers and how they are important to your business ‘s success

Competition- the simple fact is that all business have competition . competitors may not always come in the form of direct completion , which is when you have a competitor offering a similar solution to your offering . often times , you may be dealing with indirect competition , which is when consumers solve their problem with an entirely different kind of solution. Future product and service - all entrepreneurs have a vision of where they want to take the business in the future if they are successful. While it is tempting to spend a lot of time exploring future opportunities for new products and services , you should not expand to much on these ideas in your business plan . it is certainly useful to include a paragraphs or two about potential future plans . to show inverters where you are headed in the long term , but you do not want your plan to be dominated by long – range plans that may or may not come to fruition. The focus should be on bringing your first product and service to market

Marketing and sales plan –the marketing and sales plan section of yours business plan details how you plan to reach your targets markets segments , how you plan on selling to these targets markets , what your pricing plan is and what types of activities and partnerships you need to make your business a success Advertising – your business plan should include an overview of the kinds of advertising you plan to spend money on . will you be advertising online? Or perhaps in traditional , offline media ? . a key components to your advertising plan is your plan for measuring the success of your advertising.

Example Start-up requirements Start up expenses Legal

$2,000

Stationary etc

$500

Brochures

$500

Consultant

$1,500

Insurance

$1,745

Debt service

$5,000

Licenses /tax/deposits

$12,000

Expensed equipment

$36,600

Employee /payroll

$26,834

Accounting

$1,000

Soft opening expense

$4,000

Grand opening advertising

$3,000

Misc expenses

$2,000

Total start –up expenses

$96,679

Start up assets Cash required

$100,000

Start up inventory

$61,157

Other current assets

$0

Long term assets

$595,040

Total assets

$756,197

Total requirements

$852,876

Create financial for your own business planSTART UP FUNDING Start up expenses to fund

$96,679

Start up assets to fund

$756,197

Total funding required

$852,876

Assets Non cash assets from start up

$656,197

Cash requirements from start up

$100,000

Additional cash raised

$0

Cash balance on starting date

$100,000

TOTAL ASSETS

$756,197

Liabilities and capital Liabilities Current borrowing

$29,850

Long term liabilities

$695,399

Accounts payable (outstanding bills )

$29,627

OTHER CURRENT LIABILITIES (INTEREST FREE)

$0

Total liabilities

$754,876

Capital Planned investment Investor 1 (home equity /pre- develop, invest )

$64000

Investor 2 (pre –development investment)

$34,000

Other

$0

Additional investment requirements

$0

TOTAL PLANNED INVESTMENT

$98000

Loss at start –up (start –up expenses)

$96,679

Total capital

$1,321

Total capital and liabilities

$756,197

Total funding

$852,876

MARKET ANALYSIS YEAR 1 Potential Customers

Growt h

YEAR 2

YEAR 3

YEAR 4

YEAR 5 CAGR

Atlanta Area Residents

10%

91,568

100,72 5

110,79 8

121,87 8

134,06 6

10.00 %

Hotel/Convention/Visi tors

15%

32,100

36,915

42,452

48,820

56,143

15.00 %

Downtown Workers

20%

23,350

28,020

33,624

40,349

48,419

20.00 %

Total

12.87 %

147,01 8

165,66 0

186,87 4

211,04 7

238,62 8

12.87 %

We recommend using LivePlan as the easiest way to create graphs for your own business plan.

SALES FORECAST YEAR 1

YEAR 2

YEAR 3

Sales Restaurant

$1,926,217

$2,078,138

$2,285,951

Coffeehouse

$260,384

$273,403

$287,073

TOTAL SALES

$2,186,601

$2,351,541

$2,573,024

Year 1

Year 2

Year 3

Direct Cost of Sales Restaurant

$1,270,196

$1,277,010

$1,340,860

Coffeehouse Subtotal Direct Cost of Sales

$78,112

$0

$0

$1,348,308

$1,277,010

$1,340,860

MILESTONES Milestone

Start Date

End Date

Budget

Manager

Department

Leasehold Buildout

11/1/2000

2/1/2001

$30,000

David Patton

Owner

Equipment Installation

1/1/2001

2/1/2001

$75,000

David Patton

Owner

Marketing Plan

1/1/2001

5/1/2001

$4,500

Cindy Abel

Marketing

Fixture/table Construction

12/1/2000

5/1/2001

$3,500

David Patton

DNP/PTC

Begin Construction Process

10/1/2000

3/1/2001

$0

M.Syphoe

HDDC

Design Management

5/1/2000

12/1/2000

$0

R.Rauh

R.Architects

Legal Research

1/1/2000

4/1/2000

$1,000

Patton/Moser

Legal

10/1/2000

7/1/2000

$0

K.Brown

C.Concepts

2/1/2000

12/31/2000

$0

David Patton

Owner

Interior Design Entertainment Research

Purchasing Research

1/1/2000

10/1/2000

Totals

$0

David Patton

Owner

$114,000

Employee salaries are as follows: Position

Salary

Owner/General Manager

$39,900

Chef

$30,000

Manager

$28,000

Sous-chef/Line Cook

$23,000

Assistant Mgr/Senior Server

$14,560 + Tips

Barristas/Bartenders