Place the name of the business plan in the header

SAMPLE BUSINESS PLAN

Note: All information in this example is fictional. You should do your own research.

BUSINESS NAME What is the business name APPLICANTS NAMES What is the applicants name ADDRESS What is your address TELEPHONE NUMBER 07 1234 5678 MOBILE NUMBER 4444 555 666 E-Mail Address
ed@youare.com.au

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CONTENTS EXECUTIVE SUMMARY ES.1 Description of the business ES.2 Marketing Opportunity ES.3 Key Strategies for Success ES.4 Financial Summary Eligibility Criteria

PAGE No 4

BUSINESS DESCRIPTION BD.1 Business Description BD.2 Products and Services LEGAL REQUIREMENTS L.1 Legal Name and Structure L.1.1 Business Name L.1.2 Legal Structure L.1.3 Tax Implications L.1.4 Liability Implications L.2 Registrations, Licences and Legal Obligations L.3 Insurance L.4 Consumer Protection L.5 Contracts L.6 Intellectual Property L.7 Record Keeping MARKETING PLAN MK.1 Research Methods MK.2 Industry Overview MK.3 Target Market MK.4 Features and Benefits MK.5 Unique Selling Point MK.6 Acceptance by Customers MK.7 Marketing Strategies Promotional Action Plan MK.8 Marketing Budget MK.9 Pricing Policy MK.10 Packaging, Presentation, Display MK.11 Distribution and Transport MK.12 Competitors MK.13 Payment and Credit Policy MK.14 Customer Service

7 8

10

11 12

14 16 19 20

21

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OPERATIONAL PLAN OP.1 Plant and Equipment Requirements ($1000 and over) OP.2 Other Equipment and Consumables (Under $1000) OP.3 Hours of Operation OP.4 Production Process OP.5 Seasonal Influences OP.6 Location OP.7 Stock OP.8 Quality Control. OP.9 Contingency Plans OP.10 SWOT Analysis OP.11 Goals HUMAN RESOURCES HR.1 Organisational Structure HR.2 Owners and Staff Skills and Experience HR.3 Advice and Development HR.4 Job Descriptions HR.5 Wages and Enterprise Agreements HR.6 Workplace Health and Safety HR.7 Staff/Management Meetings FINANCIAL PLAN FP.1 Expenses FP.2 Sources of Finance FP.3 Financial Reports FP.4 Break Even Sales FP.5 Return on Investment ATTACHMENTS

23

25 25 27 28 29 30

31

32

34 36 39 38 42

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Please note that all Business plan questions are in black and example answers are in red. Please start at the Marketing section on page 16 of your template. Please note this plan must be written in the third person only.. (ask for help if you do not understand)
EXECUTIVE SUMMARY ES.1 Description of the business Description of the Business (BD1) Have you: - Stated the name of the of your business owners? - Stated the name under which your business will operate? ES.2 Marketing Opportunity Motives for Business Have you: - Described how your initially determined your business idea? - Indicate why you wish to pursue the idea? - Indicate why you believe you are capable of succeeding? Research undertaken MK 2 Target market MK3 Unmet demand/Acceptance by customers MK6 Marketing techniques: MK 7 Competition factor (MK12) ES.3 Key Strategies for Success The Opportunity and Strategy Unique selling point MK5 Marketing strategy MK8 Page 4

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Place the name of the business plan in the header Swot analysis of your business (OP 10) Key qualifications and experience (HR 3)

ES4 Financial summary Financial Assistance Required Have you: Indicate any funds sought? Describe how such funds will be used? Have you summarised the sales projections and profitability for the first and second years? Examle answer. I am using my own saving to start this business. I have estimated that I need $2200 to start the business this includes; insurance, business marketing material, advertising and marketing budget for the first 3 months and some working capital. Financial table Year 1 Sales Cost of Goods Sold Gross Profit Overheads Net Profit Cashflow In Cashflow Out Balance Sales Break Even $25,580 $ 3,847 $21,733 $ 8,240 $13,493 $43,138 $37,752 $ 5,386 $38,185 $49,890 $ 7,376 $42,514 $ 8,489 $34,024 $54,879 $49,603 $ 5,276 45,618 Year 2

Business Eligibility Criteria (very important section)

Use the existing text to best describe your venture, please note the examples used to give you an idea of the type of answers required. Please note two examples of the answers have been given, please use any ONE or a combination of the two.

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Place the name of the business plan in the header The business is not operating on a commercial basis and has not operated on a commercial basis in the past: ######### is a completely new business registered for the first time on 12/9/05. The business will manufacture bamboo surfboards and sell them to retail outlets, as well as doing custom orders for professional surfers. Work with customers has been limited to market testing and details are included in the marketing section of the business plan. From time to time the client may take short term (no longer than 13 weeks) contract/casual job in the same industry (specifically ). This will not affect the independence of the business and the client will maintain controlling interest in the business. The business will be independent: ######### will be solely operated and controlled by the two partners and is not linked with any other business as a franchise, subsidiary, agent or MLM participant. We will draw several customers from local and mail order markets and will not enter into any exclusive arrangements with customers or suppliers. ######### is independent and not linked with any other business by any contracts which restrict or control our operations. We will have many retailers as our customers and will not enter any exclusive arrangements with customers or suppliers. The business will be reputable: ######### will not operate in any way that could bring the NEIS program or the funding department into disrepute. Specifically our advertising and artwork designs will not ever include violent, racial, religious, drug or sex related material. ######### will not operate in any way that could bring the NEIS program, the funding department or any licensing body into disrepute. Specifically we will not use any product designs that include sexual, violent, racial, and religious or drug related themes. We will avoid situations where our products could be used in a gambling context, for example as a prize in a raffle or club promotion. The business will be lawful: ######### will obey all applicable State and Federal laws that apply to it, including Trade Practices and consumer protection. With no employees, industrial law is not relevant at this stage. ######### has researched all legal and administrative requirements using Smart license search and by making enquiries with the Beaudesert Shire Council. We are required to obtain several permits and licenses as follows:

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Place the name of the business plan in the header ######### will abide by all State and Federal laws including industrial law in relation to employees, trade practices and consumer protection. We will also remain fully licensed and insured to operate as a food product manufacturer, and our research has identified the following requirements: Legal Requirement ABN registration Trading name registration Domain name registration Trading name and logo trademark registration GST registration BAS registration Smart licence information Council regulations Relevant Authority Tax dept. Office of Fair Trading www.consumer.qld.gov.au www.netregistry.com.au www.Ipaustralia.gov.au Cost $ Free $128.40 Date Registered

Not registered

$54.95 for 2 years $120 Application $300 Registration

business.gov.au business.gov.au Contacted smart license

N/a N/a free service Require some information BCC Complete

Do Not require

Free service

The business is commercially viable: ######### is forecast to present net profit of $13,493........in Year 1, test marketing, surveys and retail interest back up these figures Financial Summary Year 1 Sales Cost of Goods Sold Gross Profit Overheads Net Profit Cashflow In Cashflow Out Balance Sales Break Even Your name 2007/2008 $25,580 $ 3,847 $21,733 $ 8,240 $13,493 $43,138 $37,752 $ 5,386 $38,185 $49,890 $ 7,376 $42,514 $ 8,489 $34,024 $54,879 $49,603 $ 5,276 45,618$ Page 7 Year 2

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The business is not based on the purchase or takeover of an existing business: ######### did not purchase or take over any existing business. The proprietors have bought the plant and equipment from a business operator who is no longer trading, but did not buy the business itself, ie we did not buy the business name, goodwill or anything other than the plant and equipment. ######### is a completely new business and has not grown from the purchase or takeover of another business. The business will not compete directly with existing businesses unless it can be demonstrated that there is an unsatisfied demand for the product or service, or the product or service is to be provided in a new way: (Please note; this question is a difficult one but you may find help by looking at MK4, MK5, & Mk6) While there are certainly a lot of surfboard manufacturers on the Gold Coast: There is unmet market need for surfboards at the custom end of the market (see attached ABS and Surfing Australia information). We target this poorly serviced segment of the market with boards priced in the $1500-$5000 range, and will not impact on the general market ($350-$900 range). No other local manufacturer produces surfboards using bamboo, which is seen as a distinctive, boutique product. Will be established, located and operated solely within Australia: ######### is registered in Queensland and all management and control will remain in Australia. With the exception of the marketing trips to Italy, France and Hawaii scheduled in the business plan, all operations will be conducted in Australia. Products will be exported from month 6 provided all goes to plan. ######### is registered, owned and managed completely within Australia. There are no plans for any marketing or export activity overseas in the first 2 years.

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Please note this plan must be written in the third person only.. (ask for help if you do not understand)
BUSINESS DESCRIPTION BD.1 Business Description Have you Discussed your business concept in general terms? What type of business are you running retail, wholesale, manufacturing, combination, business services, personal services, tourism, entertainment, art & other. BD.2 Products and Services

Keep in mind that people who read your business plan may not have the kind of background knowledge you have. It is best that you give a full description of the products/services and where possible provide photos or examples as an appendix.
Example below: Service 1: Therapeutic massage One Hour $65 An initial consultation is conducted discussing the clients medical history and personal lifestyle. The clients likes, dislikes, needs and wants are identified. This is followed by a therapeutic massage, concentrating on the neck, shoulders and back. It is tailored to the individuals requirements. It is a smooth, flowing massage, relieving tenseness and stress. Service 2: Service 3: Service 4: (And so on for several more services)

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Place the name of the business plan in the header LEGAL REQUIREMENTS L.1 Legal Name and Structure

L.1.1 Business Name Have you: indicated what the trading name will be? Example below: The name of the business is ABC limited. This name has been chosen because it immediately identifies the service and describes what the business is about. The business name has been registered on the 12/12/09

Or
The business is not yet registered with the State Government. We will be using our own names for the next couple of months until funds become available. L.1.2 Legal Structure Have you: - described the legal structure of your business? Example below: The business is a partnership between Mary and Michael Potts. The partnership agreement is attached. It is an equal partnership in profit sharing, management and responsibility. At this stage of the development of the business we believe a partnership structure is the most advantageous to us. This is for both management and tax purposes. The business is easier to manage as a partnership and there are no complicated legal requirements. As we grow and our Net Profit increases we will seek professional advice about setting up a company or trust. L.1.3 Tax Implications Have you: identified taxation obligations, which will be of particular relevance to your business? Listed all the allowable tax deductions for your business? Example below: The partnership is registered with the Australian Tax Office and has been issued with a Partnership Tax File Number. The profit is split equally between the partners and forms part of the taxable income of each partner. Each partner will pay personal tax on his/her taxable income. The partners will put their tax liability amount in a special bank account each week. we will work out the amount using the tax tables.

Taxable Income

Tax on this income

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Place the name of the business plan in the header $0 - $6000 $6001 - $34000 $34001 - $80000 $80001 - $180000 $180000 onward Nil 15c in each $1 over $6000 $4200 plus 30c in each $1 over $34000 $18000 plus 40c in each $1 over $80000 $58000 plus 45c in each $1 over $180000

The Australian Tax Office requires records to be kept for a period of 5 years. we have obtained a filing cabinet to store the documents, and we have organised a filing system for invoices, receipts etc. It is our intention to keep the filing up to date by doing it on a weekly basis. L.1.4 Liability Implications Have you: described the legal implications of choosing this particular form of ownership as it relates to your business? Example: The partners are jointly and severally responsible for the liabilities of the business. This means each partner is responsible for all the debts of the business, no matter who incurred the debt. L.2 Registrations, Licences and Legal Obligations

Have you: listed and described any local, state or federal government regulatory requirements that affect your business? (e.g. Council approval, health and safety permits, operation a business from home) Legal Requirement ABN registration Trading name registration Domain name registration Trading name and logo trademark registration GST registration Relevant Authority Tax dept. Office of Fair Trading www.consumer.qld.gov.au www.netregistry.com.au www.Ipaustralia.gov.au Cost $ Free $116.40 Date Registered

$54.95 for 2 years $120 Application $300 Registration

business.gov.au

N/a

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BAS registration

business.gov.au

N/a

L.3

Insurance

Have you: indicated and described which insurance covers are required for you business? (e.g. public liability, fire/theft, glass, goods in transit, professional indemnity) Example below: An insurance broker has been contacted as part our risk management strategy. By taking out insurance we have spread the risk of any claim that has to be paid. The type of insurance required is Public and Products Liability was required copy of policy attached. L.4 Consumer Protection

What are your responsibilities towards your clients according to consumer affairs, trade practices legislation and the advertising code of ethics. What are your requirement towards refunds, warrantees, guarantees door to door sales. Example below: Warranties: applies to the Oils. Suppliers guarantees will be applicable. However, we still need product liability. We have a responsibility to provide what we say we will provide to the customers. In other words, if the massage is for an hour then that is how long it must be, no shorter. We are prepared to offer a refund if our client is not happy with the service or product. L.5 Contracts Have you: - Include contracts relevant to your business as an appendix? Example below: We understand that contracts can be written, oral, a combination of written and oral or implied from the actions of the party. It would be preferable for all our contracts to be written to prevent disputes. Suppliers: For our suppliers we will have a number of written contracts, such as mobile phone and insurance. Some would be implied. We have listed below a number of contracts we expect to have. Customers Contracts with our customers will vary depending on the type of customers.

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Place the name of the business plan in the header For private customers it will not be practical to have a written contract. Verbal and Implied Contracts with private customers Written Contracts with business customers L.6 Intellectual Property

Have you: Described and patents or registered trademarks relevant to your products/services? Example Below: There is no Intellectual Property applicable. The business name has been registered in Queensland only. Should we wish to extend the business to other states we will consider trade marking the name. This may be done through IP Australia. L.7 Record Keeping

Have you: Identified specialist service you will employ to assist with maintaining your business records? Example Below: We understand that it is in our best interests, both for management purposes and tax purposes that we obtain and keep all the documents we should. We will be using a manual bookkeeping system in the first year. We will consider changing to a computer bookkeeping system in the second year. There are a number of different types of records; financial, legal, and operational. Financial records required are: Analysis Book for Sales and Expenses, Copies of invoices, expenses Receipt books, Order books, Cash flow, Profit and Loss Statement Balance sheet, Tax Records, ABN, BAS Statements Bank Records, statements and reconciliation, cheque book, deposit book Assets register Legal records will include: Supplier contracts, Insurance Records, Local Council Self Assessment ANTA membership, Business Name Registration Operational records include: Customer records, Customer contracts, Vehicle Log Book Vehicle servicing, Advertising records

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Place the name of the business plan in the header MARKETING PLAN MK.1 Research Methods Methods Used to Research the Market Place Have you: List the research methods used to gather information regarding the market for your products/services? (e.g. questionnaire, observation, or face-to-face interviews) Example of Answer: Desk Research: This was done using the Internet. we researched the Australian Bureau of Statistics web site and the State Department for Small Business webb Site. From links with them we found the Economic Forecast site. Survey A number of individuals and businesses were surveyed during the NEIS training period. Feedback from the surveys was extremely valuable in particular in gaining an insight into what potential customers want, and how much they are prepared to pay. Face to face interviews A number of face to face interviews were conducted with business owners (generally as a follow on from conducting a survey). The interviews took a relaxed approach, and allowed the owner of the surveyed business to express their wants and desires freely. Test Marketing Methods Networking The business owner has heavily utilised opportunities to network with other business owners, and seek their opinions and feedback. The feedback obtained from networking has been very positive, with a number of other business owners indicating that they wish to use Brand Ignition services in the short to medium term. MK.2 Industry Overview Have you: Described the current state and prospects for the industry? Described primary and secondary research? C onsulted and recorded information from people who are currently operation in the industry, especially those who have relevant background knowledge about your particular type of business? Example below: Research undertaken has provided positive results. massage Therapy Association: Information from the Association shows there has been a 23% increase in the use of massage in the last 12 months. The clinic based massage business conducts on average 23 massages. Home based businesses average 18 hourly

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Place the name of the business plan in the header massagess per week. The price ranges from $20 an hour through to $75. The home-based businesses average $30 per hour for a masasage, whilst clinic based businesses average $45 per hour. (January 20** report, massage, copies of relevant pages attached) State Department of Small Business: Statistics compiled show an increase of 15% in new massage businesses in the State over the last 12 months. The Pottsville area has not shown any increase. Pottsville and the surrounding shire have shown an increase in population of 15,000 in the last 12 months. Average household income for the area is between $25 45,000, which is in our target market range. Average age is again in our target range of 25-45. There is also a strong retirement component of the population; again this is our target market. (SDSB Report No 23A, June 20**, relevant pages attached) Australian Bureau of Statistics: ABS statistics indicate an overall increase in the use of alternative therapies of 33% in the previous 12 months. Massage Therapy has led the way with a 38% increase in people using the service. People are more likely to have a massage now than they have ever been. (ABS Statistical Report on Alternative Medicine April 20**, Executive Summary attached) MK.3 Target market (Important section) Have you: Shown the size of the total market? Who are your target groups? Each target market segment should be allocated a percentage of marketing effort. demographic, economic, technological, political, legal and institutional, social and cultural aspects) Example of answer: Target Group 1. Customer feedback is that the average customer is female, between the ages of 25 and 55, with an income of between $25,000 and 40,000. They are employed mostly in the service area. They are concerned about their health and looks. They spend an average of $75 per week on appearance. This may include hairdresser, gym fees or massages. They have a non-traditional attitude to medicine and are prepared to try new aids to health. They are not prepared to travel more than 20 kms for services and prefer local businesses. They may be single or married. They often state they have a high degree of stress in their lives and are short of time. They want a massage for both the health and relaxation benefits. A sub-group in this target is the professional woman who leads a busy, stressful life with the competing demands of work and family. In the Pottsville Council there are 24,000 households with an average income between $25 - $40,000. There is a population of 28,000 women in the age group 25 to 45, and 10,000 between 45 and 60. (ABS Report attached)

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Target Group 2. A second target market has been identified as middle-aged women who are image conscious. They often have grownup children and may be resuming their careers, or are non-working but have an active social life. They are fashion conscious and have a high disposable income. Target Group 3. Sportspeople of both genders requiring massage for relief of strained muscles and as a recovery process from their active sport involvement. They are usually a member of a sports club and participate in the sport on a weekly basis. High impact sports are particularly stressful on the body. Age is between 18 and 30. Pottsville has 12 sporting clubs with a membership of 1800 active participants, and 3 gyms with approximately 250 members. MK.4 Features and benefits Have you: described what features of your products/services will be emphasised to generate sales? (e.g. service, quality, price, delivery) Example: Feature Therapeutic massage using oils, music

Remedial massage using oils and music

Service packages

Appointments held in client office

Prices below industry standard

High quality products and services

Professional customer service

Benefit to customer Relaxed, energised, stress relief Relief of aches and pains, feeling of wellbeing, relieves tension Able to face life again Improved image Pain relief, stiffness and soreness relief Improved performance and endurance Helps prevent injuries Cost savings Convenience Time savings Only has to give one brief Cost savings on transport Time savings as no travel time needed Convenience Cost savings Frees up funds to use for other marketing to increase activity Customer makes better impression on their own customers Customer has increased confidence Client feels respected Client is confident in the skill of .

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Place the name of the business plan in the header MK.5 Unique Selling Point (Important section) Have you: discussed any innovative marketing tactics that will be used to enhance customer acceptance of your products/services? Example: It is important that we offer something different from our competitors so that we stand out from the other massage businesses. The basic product is the same. One of our unique selling points is our very high qualifications. We will emphasise this. One way of doing this will be to give our customers information sheets on what we do and how it benefits them. These will be attractively laid out and not too wordy. It will distinguish us from our competitors and show that we care for our customers. We will give our customers information on stretching and relaxing exercises they can do at home. We will also give dietary information. What we are offering is a holistic view of the customer as all aspects affect each other. In this manner we hope to stand out from our competitors. We will have a very strong loyalty and follow-up programme. This will provide benefits to our customers in savings and ensure we get regular appointments from them MK.6 Acceptance by customers (Important section) Have you: discussed the profile of your customers? Have you: described customers reasons for buying your products/services including individual, social and lifestyle influences? (e.g. price, quality, reliability, convenience, prompt efficient and friendly service, expert advice or other.) Example: A number of surveys have been completed with a variety of different types of businesses. It is important that we offer something different from our competitors so that we stand out from the other massage businesses. The basic product is the same. The typical customer is a small to medium sized enterprise that has been established for at least twelve months. Customers have indicated that they wish to purchase from us as we can offer time savings, cost savings and convenience, as well as a wide scope of knowledge. Our pricing is also very competitive in the industry, and customers have given very positive responses to this. Other sources of evidence is the test marketing we have completed, it is now $560 gross with $190 in costs, all clients were happy with their massage.

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Place the name of the business plan in the header We also have testimonials from several other clients which we have oposted on our web page. MK.7 Marketing strategies (Important section) Have you: described advertising/promotion approaches you will utilise to bring your products/services to that attention of prospective customers? (e.g. brochures, direct mail, trade journals, sampling, direct approach, radio, newspaper advertisements, publicity, sales promotion, personal selling) indicated in which publications you can advertise or try to gain editorial coverage? Examples: The advertising and promotion methods which will be used are: y y y y y y Extensive networking Establishing a strong online presence (website, e-marketing) Print advertising (newspapers/industry newsletters etc) Australia Post advertising Person to person marketing (doorknocking, telephone canvassing) Radio advertising

Networking will establish networks with businesses whose customers are similar to the target market. representatives will also participate frequently in a variety of organised networking events in order to maximise exposure of the business to the greater business community. The business owner will also be seeking opportunities to address business and networking organisations as a guest speaker on the topic of marketing and advertising. Networking is a great way to establish relationships with a wide variety of businesses in the target market. It is also a very cost effective marketing method. A business card is attached as Appendix ***. Website A website has been created and is hosted at. The website clearly communicates to the reader all services currently available. The website will also display any current specials or promotions as relevant. The website also includes details such as contact details, case studies, fee options, and information for prospective employees. A screen-shot of the front page of the website is attached as Appendix ***. E-Marketing During the test marketing period, pay-per-click ads were purchased on the internet search engine Google.

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These ads have proven to be very effective in driving visitor traffic to the website at a low cost. It is the intention to continue with this form of advertising. The website has also been listed on a number of external business directory websites. This listings have greatly enhanced the websites search engine ranking (the order that the website appears in relation to other websites in internet search engines). The e-newsletter will contain details on any current specials or promotions, a profile on an existing client, as well as tips and hints for business marketing. A copy of the advertisement on Google has been attached as Appendix ***. Print Advertising will advertise in City News on a quarterly basis. City News is a community newspaper which is distributed heavily throughout the Brisbane CBD and surrounding suburbs. These areas contain a heavy concentration of small to medium sized businesses. This newspaper is widely read, primarily by people working in professional services, and is reasonably cost effective. Other publications, including trade journals will be researched in the second year when a greater advertising budget is available. Australia Post advertising Australia Post offers a service which allows flyers and brochures to be delivered to Post Office boxes. This advertising method is particularly appealing as it is possible to easily ensure that only Post Office boxes held by businesses will receive the marketing material. This ensures that we are not spending money unnecessarily on marketing materials which will be delivered to addresses which are unlikely to yield any return. This is also a very cost effective method, and easily targetable to a specific Post Office or geographic region. Person to person marketing (doorknocking, telephone canvassing) This method of marketing will be used primarily in the first 3 months of operation. This method is essentially cold calling, with prospective customers being contacted by a representative (either in person or by phone) to advise them about services and attempt to secure the person as a client. This is a reasonably cost effective method of promoting the business, however can be time consuming. Radio Advertising Radio advertising is available at very low rates as a result of the business owners contacts within this industry offering special rates.

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Place the name of the business plan in the header Radio advertising will commence in 2008, and will consist of pre-recorded, 30 second advertisements being played on air at various times during the day. Radio advertising is considered to be a fantastic way to compliment other marketing activities, and ensure that the business brand remains at the top of the potential customers mind. Noticeboards We will place attractive notices (copy attached) on notice boards in the clubs network with and in other organisations such as the library, 3 shopping centres and churches.

Loyalty Programme we will introduce a loyalty programme. we will give customers a card and stamp it so that after the fifth massage they can either have the sixth one free or give it to a friend. we will have a follow up programme whereby we contact clients when their next massage is due, and offer specials for birthdays, Valentines Day and so forth. This programme will be especially important during winter when people tend to stay at home. Club Membership We will invite customers to join our club for a small fee. This entitles them to ongoing special discounts, newsletter and functions, such as wine and cheese info nights, gym sessions and other activities. This programme will be especially important during winter when people tend to stay at home.

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PROMOTIONAL ACTION PLAN

Type Of Promotion 1. Networking See diary for full details Take posters & Business cards. Same Address meeting Arrange date 10 March monthly 25 March 27 March 31 January Mary & Michael M&M M&M Michael Plastic card and pamphlet holders 10 @ $3 = $30. 10 bottles wine @ $12 = $120 4 tray snacks @ $5 = $20 TOTAL $$170 designed and 20 January 2. Posters on Club and Get printed Community Noticeboards Place on noticeboards 31 January Michael 31 January Both 50 @ $3 = $150 Questioning when bookings received Discussion at meetings and bookings received Same What Has To Be Done By When / Deadline Date Of Advertising Who Has To Do It Cost $ Feedback Obtained By

Same

3. Article newspaper.

in

local

Contact reporter

5 January

15 January

Michael

Nil

Questioning when bookings received Same

Advertisement in local newspaper

Contact advertising rep 5 January

Fortnightly starting 15 January Page 21

Michael

$50 pf = $1300

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Place the name of the business plan in the header Type Of Promotion 4. web page 5. Loyalty program What Has To Be Done Contact designer By When / Deadline 28 February Date Of Advertising 20 March 31 January Who Has To Do It Mary Mary Cost $ $700 1000 @ $150 Feedback Obtained By Questioning Use of program

Design and print 20 January business cards with loyalty chart on back Club card brochure. and 20 January

6. Club membership

31 January

Mary

Business cards done in 5. Above. Brochures 50 @ 80c = $40

Number of members joining up

7. Letter drops

Design and print Deliver

5 February Every quarter March/June/ Sept/Decembe r

Mary Both

$1200

Questioning when bookings made

8. Radio 9. door to door 10. Australia Post Note: All printing of business cards, posters, brochures and letterdrops, fridge magnets to be negotiated with Top Printers before 15 January as they require 10 days from time of order to produce items.

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MK.8 Marketing budget Example: The budget has been determined by considering the most cost effective advertising methods available to the business on a limited budget. will advertise as often as is practical within the budget. In particular, the website will remain as a promotional tool 24/7, and networking opportunities will arise almost daily. It is anticipated that the website and networking will account for 70% of sales, with a combination of the other advertising methods making up the remaining 30%. All marketing activities will be continuously monitored and reviewed to ensure that the business is gaining the maximum possible impact from its marketing from the investment made.

Type of Advertisement Networking (business cards) Website Online (Google) Print (City news) Australian Post (PO Box flyer drop) Promotional items for clients Radio Advertising Total Annual Cost

Size 90x55mm 15 Pages 4 Lines 71.5mm x 59mm DL Various 30 second

Cost $0 $24.94 $28.00 $263.62 14c ea $350 $100

Frequency Continuous Monthly Monthly Quarterly Quarterly Continuous Monthly

Total Cost $0 $299.40 $336.00 $1054.48 $389.00 $350.00 $100.00 $2528.88

For full details on these quotes see attachments ***. MK.9 Pricing policy Have you: determined and indicated the price charges for your products/services? Outlined the pricing strategy and pricing tactics? (e.g. skimming, penetration, target return, going rate, perceived value, cost based, image pricing, product line pricing, psychological pricing, loss leader pricing, discount pricing, distress pricing and differential pricing.) Example: Our pricing policy takes into account the following factors: Profit: we need and intend to make a profit from the business. Prices must be high enough to cover all our expenses, reward us for the risk and effort in setting up and running the business, and provide enough money to maintain and improve our lifestyle.

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Place the name of the business plan in the header Competitors: we must be competitive both in price and quality of service with our competitors. It is no good our prices being too low that we do not get sufficient return. If our prices are too high we will price ourselves out of the market. Supply and demand: At this time we have some competition but the market is not saturated. we believe there is unmet demand so our prices do not have to be low. Customer perception: we will position ourselves in the High Quality Low/Medium Price bracket so our customers perception is one of Superb Value. Image: we will have a very professional image for our business, demonstrated by our premises, uniforms and marketing material. This means that our customers would expect our prices to reflect this. MK.10 Packaging, presentation, display Example: Our brochures and business cards all have the same theme and logo to present a consistent image. Our uniforms have the logo and same colours and are not sterile. MK.11 Distribution and transport Have you: described the methods you will use to sell and distribute your products or services? Example: Distribution is not applicable. Transport is our passenger sedan which is reliable and consistent with our image. We will have magnetic signs on the vehicle as we travel to customers. MK.12 Competitors Have you: Please indicate competition to your business idea. Comment on direct - competition & in direct competition How much competition within a 25KLMs radius. Important question final paragraph indicated what makes your business different from those of the competitors? MK.13 Payment and Credit Policy Have you: outlined your credit policy?

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Example: Invoices carry trading terms of 14 days unless previous arrangements have been made with the client. Payments can be received by cheque, in cash, or by direct bank deposit. Relevant details to enable the client to make payment (bank details etc) are clearly stated on each invoice. The business also holds an account with PayPal which allows us to accept credit card payments securely. Suppliers These arrangements have been made and are detailed under L.7 Contracts. MK.14 Customer service Have you: identified the key elements in maintaining customer relations with your clients? indicated what customer service policies will be put into place? Included policies required by law which are relevant to your business? (e.g. guarantees/warranties, refunds) outlined the procedures for dealing with complaints? Example: Key Elements The key elements for maintaining customer relations with clients have been identified as: y y y y y Provide quality, superior customer service Maintain contact, and keep the client informed at all stages of any process Ensure customer satisfaction at regular intervals Deliver product or service on time, and on budget Follow up to ensure continued client satisfaction, and seize opportunities to valueadd or up-sell

Customer Service Policies Telephone Telephone calls are often the first contact with a client. Telephone calls will be answered after 2-3 rings. In the unlikely event that the telephone cannot be answered, a reliable voicemail service is available for clients to leave a message. Email All incoming emails will be answered as soon as possible, and no later than 24 hours after receipt.

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In person In person meetings and appointments will be attended on time. In the unlikely event that there is a delay, the customer will be called to inform them of such. The representative attending the appointment will be professionally presented, and speak in a confident, clear and professional manner. Policies required by law A refund policy exists whereby if a customer is supplied with a product that is not what they specified at time of purchase, or does not perform as was indicated to them, a full refund will be given. Complaints Handling Procedure Any customer with a complaint will be encouraged to issue their complaint in writing. All customer complaints will be answered as soon as is practical, and no later than three working days after receipt of the complaint. If the customer is not satisfied with the response, the complaint will be escalated within the business if possible.

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OPERATIONAL PLAN OP.1 Plant and equipment requirements ($1000 and over) Have you: - described all the necessary plant, machinery and equipment, which will be purchased to allow production to begin? Example Below: Plant and equipment required Already owned To buy or lease Value $ Vehicle Yes N/A $8,000 Computer No Buy year 2 $1,500 Air Conditioner Yes N/A $2,000 OP.2 Other equipment and consumables (Under $1000) Equipment and consumables required Massage table Towels Oils Linen Office furniture Already owned Yes Yes Yes Yes Yes To buy or lease N/A N/A N/A N/A N/A Value $ $600 $200 $ 50 $200 $800

OP.3 Hours of operation Have you: - designed the hours of operation? Example: Hours of operation will be: Monday to Friday 9 am to 6 pm Saturday 9 am to 12 pm Sunday By appointment We are flexible and will cater for customers who cannot attend during those hours. In addition we are available to attend gyms and sports clubs on an as needs basis. We will be encouraging this because we believe clients may be more open to receiving a massage during exercise or when they have finished their exercise and feel muscular strain and stiffness.

OP.4 Production process Have you: outlined a production/service schedule, based on the costs and benefits of the various methods of scheduling workloads? described the processes involved in producing your products? Allocated the time taken in each stage of these processes Example: Our production processes have been designed to produce:

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Place the name of the business plan in the header Greater efficiency Better consistency of service Better quality of service Reduced costs Therapeutic Massage Desired outcome Quality Human Resources Finances Equipment Materials Premises Legal Issues Health and Safety

Time Frame

Customer finds the treatment remedial, refreshing, relaxing and revitalising Uphold the standards as laid down by the AMA see attached document Mary or Michael Magic No extra finances required massage table, interview table and chairs, air conditioner Towels, oils 13 Potter St, Pottsville Indemnity form signed by customer, insurance cover obtained Discuss clients medical history, personal lifestyle, like and dislikes. First aid kit in house Fire extinguisher, smoke alarm, fire blanket in house Check massage table Check cleanliness of towels massage is for 1 hour. Does not include initial consultation Processes

1. Making Appointments 1. Customer telephones in response to marketing 2. Telephone answered on third ring 3. Appointment diary and pen by phone 4. Mutually convenient time arranged with client 5. Follow-up/reminder call diarised 6. Client requirements discussed and written in diary 7. Client advised of payment options 8. Call completed and file opened if new client 9. Client information transferred to clients personal file 10. Follow-up/reminder call made 2. Conducting services 1. Check diary for appointments 2. Check driveway and entrance for clearway 3. Ensure clean towels and oils available

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Place the name of the business plan in the header 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Ensure massage room clean and tidy, wash hands Greet client on arrival Sit client at interview table Conduct interview (see attached interview question sheet) Fill in interview sheet Explain process to client Proceed to massage room Conduct massage in accordance with laid down procedure Frequently seek feedback from client about well being and satisfaction Massage ends Seek final feedback from client Complete customer loyalty card and hand to client Explain how loyalty program and referral rewards systems work Farewell client Complete client file Clean massage room and prepare it for next client Have a well earned rest

OP.5 Seasonal influences Have you: identified and assessed the seasonal influences? Example: Research and discussions with others in the industry have indicated that there are seasonal influences that effect workflow, however these influences are very close together and have a minimal effect on how the business operates. In particular, research has shown that periods of time directly before holidays or major events (Christmas, Valentines Day, Easter etc) are busiest as clients are seeking to market themselves to capitalise on their own seasonal busy times. Another potential seasonal influence is taxation, with a number of clients wishing to spend any remaining funds that have been budgeted for marketing before the end of the financial year. OP.6 Location Have you: discussed any disadvantages of the site in terms of proximity to customers and suppliers, access to transportation, etc.? Example Below: The business is located at: 13 Potter St Pottsville Q 54540 Your name 2007/2008 Page 29

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This is our home address. we have decided to work from home mainly to save on expenses. we have a downstairs room, which is very large. we have turned that into the massage room. we have furnished it with a massage table, desk and chairs. It has been freshly painted with new floor coverings and wall decorations. It provides a calm and fresh ambiance. Plan and photographs attached. There are washroom facilities available downstairs if needed. Parking for one vehicle is available and that is all that the town council requires and allows. we are allowed to put up a small sign stating the name of the business which wehave done so customers can quickly find us. It is noticeable from the road and passing traffic can see it. we have an office upstairs where we have our computer and filing cabinet. For the mobile facility of the business we have a folding we table. we have also organised a bag, which contains the linen, towels, and oils that we require. These fit into the vehicle very easily. OP.7 Stock Example: we have sufficient stock to last the first 20 customers. we have 8 different types of oils in large containers. we have smaller bottles in stock as giveaways and for sale to customers. We have purchased this stock. The use-by date is 6 months from date of purchase so will not go out of code. The bulk containers are stored in the cupboard. The smaller bottles are attractively displayed and in a prominent position so our clients cannot fail to notice them. Our arrangements with our suppliers are in writing. Further details are in L.7 Contracts. we also have a range of essential oils on consignment as we learn which ones our customers prefer. ITEM Oils Oils Towes SUPPLIER Essential Oils Ltd Other Oils Pty Ltd Towels R Us TERMS OF TRADE 30 days COD 7 days COST See price list See price list Wholesale LEAD TIME Overnight 2 days As required

OP.8 Quality control. Example: The quality process is:

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Place the name of the business plan in the header Plan Do Review Make required changes The quality process is incorporated in our operational processes in OP.4 Production Process. we are in the process of developing a quality manual with flowcharts. This will be complete by the time we start our business. Key Stages have been identified. Marketing. Check quality of pamphlets, business cards, posters, and advertisements prior to printing. Answering the telephone. Must be answered on third ring. Follow the laid down answering message (see attached process). Ensure appointments put in diary clearly written Environment. At beginning of day and prior to each clients arrival:Check outside and entrance way Check massage room Check equipment massage Seek constant feedback from client At end of massage seek feedback from client Our skill level Update and improve skill level through annual training

OP.9 Contingency plans Have you: identified and assessed risks that may affect your business? (Occupational Health and Safety considerations, relevant legislative requirements, security of investment, market competition, supply and demand, resources available, security of premises) developed a contingency plan? Example: Vehicle. Should the vehicle break down a loan vehicle is available in emergencies. We have a reliable motor mechanic who we have dealt with over the last 6 years, and who is located in the same suburb. In the event of the loan vehicle being unavailable, a rental car would be obtained. Fire.

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Place the name of the business plan in the header In the event of fire damaging the home office it can be moved to another location in the home temporarily. There is provision in the lease on the home for replacement premises to be provided should fire destroy the entire home. This provision is made under insurance held by the landlord. Security of premises The premises are secure with deadlocks on all external doors, security screen doors, and window locks. Sickness or injury Since the majority of work for clients is done remotely, minor illness or injury will not affect work capacity. Options are being considered for income protection or business interruption insurance. It is anticipated that a suitable policy will be obtained in June of the first year of operation. Market competition The business is always at risk of new competitors entering the market. Competitor activity will always be closely monitored. Contingency reactions to new competitors in the market may include: 1. Pricing changes 2. Re-alignment of marketing strategy to attract new customers 3. Increased focus on retaining existing clients

Economic factors: The industry is affected by economic ups and downs so we must be sensitive to the fluctuations in our customers income. If necessary, prices can be quickly changed to respond to economic conditions. Machinery Breakdown: In the event of machinery breakdown, a replacement will be purchased or hired as necessary. Supplier ceases operations:

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Place the name of the business plan in the header The business has relationships with a number of suppliers, and an alternative supplier could be sought quickly and easily if required. Contingency plan (1 = Lowest risk. 2 = Medium risk. 3 = Highest risk) Risk Likelihood Contingency plan Vehicle breakdown 2 Hire replacement until repaired Fire/theft 1 Insurance to purchase replacement Sickness or injury 1 Insurance to secure income Market competition 2 Amend marketing and pricing to take competition into account Economic Factors 2 Amend marketing and pricing Machinery breakdown 1 Hire temporary replacement Supplier ceases operations 3 Stand-by alternative

OP.10 SWOT Analysis Have you: listed your strengths, weaknesses, opportunities and threats? Identified the means by which you can capitalise on your strengths and minimise the effects of your weaknesses in terms of the business? Example: Strengths of the business. y y y y y Working from home means overheads are very low. The business is located in a high population growth area which means there are new potential customers arriving all the time. Good networks have already been established with other businesses whose customers potentially are also ours. The proprietor has had business managerial experience working in the open employment market. Given the marketing nature of the business, excellent marketing and advertising skills and strategies are at hand and easily implemented.

Weaknesses of the business. y y y y y The new business is new so is not yet well known in the area. Home based operation means a somewhat limited exposure to the public. Cashflow will need to be carefully managed to avoid over-spending. It will be easy to suffer burnout if time is not managed effectively. The budget for marketing is quite low for the first 3 months of operation due to financial constraints.

Opportunities

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Place the name of the business plan in the header y y y Networking within the business community will present many opportunities for referral business. We will be keeping abreast of the developments in the industry and will see if there are new services or methods we can offer to customers. There may be other products we can sell our clients. Good relationships are maintained with suppliers to allow the business to quickly seize opportunities to offer new products and services to clients. There may be other products we can sell our clients. Good relationships are maintained with suppliers to allow the business to quickly seize opportunities to offer new products and services to clients.

Threats to the business y y y Competition is always possible from new entrants to the industry. Council regulations may change that prevent the business operating from home. Bad publicity about products/services supplied by our suppliers.

OP.11 Goals Example: Year 1 To make a Net Profit of $13,493in the first 12 months. To have 6 networks established with other business by the end of the first 6 months. To each attend one management course in the first 12 months To have product sales of $10,000 in the first 12 months To attend Australian Tax Office seminars on a regular basis. Year 2 To make a Net Profit of $34,024 in the second 12 months. To have 6 additional networks established with other business by the end of the second year To each attend one management course in the second 12 months

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Place the name of the business plan in the header HUMAN RESOURCES HR.1 Organisational Structure Have you: described the key roles/tasks to be performed in your business and the persons who will fill each position? A rsum for all partners should be included in Appendix A. Example: The structure of the business is straight forward. We are an equal partnership. We both have equal responsibility for decision-making. However, we will be using other professionals in our business such as Solicitor, accountant, bank manager, personal mentor. Business responsibilities Reception, massage, Sale of products, Promotion of the business, Liaison with 3 existing business links; namely Pottsville Womens Club, The Best Gym, Over 50s Friendship Club. Bookkeeping, Banking, Cleaning and laundry, Vehicle maintenance HR.2 Owners Skills and Experience Have you: summarised the qualifications and/or special skills and relevant experience that each partner brings to your business? Qualifications/Licences required Diploma in Therapeutic massage Diploma in Remedial massage Bookkeeping Small Business Management Management experience massage experience First Aid Training Owners Qualifications/Licences Mary michael Mary Certificate IV in Bookkeeping Certificate IV in Business (Small Business Management) Michael 10 years, Mary 5 years (see attached resumes) Michael 1 year, Mary 2 years (see resume) We have current First Aid Certificate, including CPR

Please describe your business experience over the last few years in relation to your new enterprise.
HR.3 Advice and Development Example: Advice Business Coach/Mentor

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Place the name of the business plan in the header Monthly performance meetings are to be held between the business owner and the business coach/mentor (Keith Davidson/ Suzanne Parker) as part of the NEIS program. These meetings will take an overall approach to the operations of the business, with particular emphasis on cash flow as well as profit and loss. The business coach/mentor is also available by phone or email at any time for advice or encouragement. Accountant has been consulted on tax matters, and will be consulted again in June to assist with tax obligations. Bookkeeping The business owner has consulted with a Bookkeeping to put in place bookkeeping worksheets and books which allow for ease of reporting. Industry The business has subscribed to a regular newsletter from the Australian Institute of Marketing. A number of e-newsletters and fact sheets have also been subscribed to in order to allow the business to keep abreast of industry movements and changes. HR.4 Job Descriptions Example: Please see HR.2 Owners Skills and Experience. A job description for the business owner will be developed after one month of operation. This job description will be continuously reviewed and updated as necessary, with the assistance of guidance of business mentors. Any new positions created within the business will have a job description developed before the appointment of staff. HR.5 Wages and Enterprise Agreements Example: Wages and Enterprise Agreements do not apply to the business at this time as the business does not employ staff. Should staff be employed we will investigate the wage rates through the relevant authorities (Wageline.com).

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Place the name of the business plan in the header HR.6 Workplace Health and Safety Have you: described in detail your Occupational Health and Safety responsibilities? Example: It is the responsibility of the business to ensure the safety of its owner, staff, contractors and clients at all times. All reasonable precautions must be taken. Regular workplace health and safety audits will be conducted in the home office. At times when work is being conducted outside of the office, a basic WHS inspection of the work location should be conducted first. A small amount has been budgeted for WHS, primarily to cover costs for an electrician to test and tag all electrical cables. WHS is the primary responsibility of the business owner. Hazard Sickness, stress, tiredness Muscle strain, fingers and hands Infection from clients Fire in house Injuries Electrical Violent client Risk factor 3 4 3 1 2 1 2 Precaution Healthy living and diet, beware of stress, have fun, take breaks. Take breaks, do exercises Do not have appointments with ill clients Smoke alarm, fire extinguisher, fire blanket, all we have First Aid training and kit, we have both Ensure no loose cables, have annual check by electrician Do not go to unknown clients house, advise partner where you are and when, take mobile phone As above, plus maintain vehicle Drive carefully, maybe do Defensive Driving course

Vehicle breakdown Vehicle accident

3 3

HR 6.1 Risk Management Plan

Location Activity Hazard Identification Type/Cause Bad ergonomics Current Controls Risk Assessment Use matrix As per plan Eliminate or control Measures

Grooming Station

In place

As per plan and policies and procedures

Risk Management Plan as per policies and procedures; Your name 2007/2008 Page 37

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The RM process consist of well-defined steps, that when taken in sequence lead to informed decisions about how best to avoid or control the impact of risks Step 1 Identify the problem (or hazard) Risk identification ergonomic Step 2 Determine how serious the problem is (Risk assessment) long term injury Step 3 Decide how to solve the problem (Risk elimination or control) as per management plan Step 4 Monitor the problems and solutions (On-going review)

Conclusion: Employees and Employers will receive training in First Aid and their duties as part of their conditions of employment and attend courses annually. y Use own personal equipment, supplied. y Familiarise themselves with First Aid Kit positions as per evacuation plan. HR.7 Staff/management meetings Example: We do not currently employ staff. As such, staff meetings are not required at this time. Monthly performance meetings are to be held between the business coach (Keith Davidson/Suzanne Parker). These meetings will take an overall approach to the operations of the business, with particular emphasis on cash flow as well as profit and loss.

FINANCIAL PLAN Tables Pricing. Sales projection. Personal balance sheet. Personal budget. Start up costs. Loans Cash flow. Profit and Loss Statement. Table One Table Two Table Three Table Four Table Five Table Six Table Seven Table Eight

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Place the name of the business plan in the header FP.1 Expenses

Example: Cost of Good Sold (from table 7) Purchase of materials. The only materials this business needs are the oils. we have sourced them from one major company, Essential Oils Ltd. we have another company, Other Oils Pty Ltd as a stand-by and for some less common oils. Freight Freight charges are included in the invoice. There is not a separate invoice. If we purchase more than $50 in an order then there are no freight charges. Production Labour Not applicable to our business as we do not produce the oils ourselves. Staff Superannuation Not applicable Overheads Advertising Quotes have been obtained from printers, newspapers, and promotional item suppliers. These are attached. Further details are shown in the Marketing Plan Bank charges Our bank has advised that there is a monthly fee of $10 and state government tax of $00.30 Electricity We have estimated the use of electricity for the we room and dedicated office, using floor area as a guide. Insurances we have obtained 3 quotes from different insurance brokers and have used the one from The Best Insurance Co. Internet Our Internet provider has given us the figures we used Leases are not leasing any equipment Other do not have any other expenses

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Place the name of the business plan in the header Postage a small amount for this item. Professional services have obtained a quote from our accountant and from our business coach. Rent will not be claiming part of our mortgage interest as a business expenses as we do not want to pay Capital Gains Tax when we sell our house Repairs/replacements This will be for items like the towels and table cover. Salaries/wages. This is not applicable as we do not employ anyone. Stationary. wehave allowed a small amount for stationary such as receipt books, envelopes and pens. Superannuation Not applicable as we do not employ staff. Telephone This will be an expense item as we will be using the telephone extensively to contact clients and suppliers. Mobile phone costs will be high because we will be conducting mobile massage services. Vehicle we have estimated the use of both our vehicles and taken into account registration, compulsory third party insurance, fully comprehensive insurance, fuel, servicing, maintenance and automobile association membership.

Equipment purchase As our Cashflow will be at risk in the first year of business we have put off any purchases of equipment until the second year. we have everything we need to start the business. Materials purchase we have all the materials we need to start the business. we have allocated funds to buy more oils and towels. Other expenses Tax liability we have calculated our tax accurately based on our Net Profit and the partnership agreement which splits the Net Profit evenly. we used the personal tax rates.

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Personal drawings In the Personal Budget table we were able to estimate our personal living expenses based on last years expenses. we are confident that this is reasonably accurate. FP.2 Sources of Finance (from table 6)

Example: (see ES 4 for this question) To start this venture we are using our savings. FP.3 Financial Reports

Example: Producing and understanding regular financial reports will assist greatly to better manage the business. The financial performance of the business will be closely monitored to ensure that goals and objectives are being met. Profitability must be ensured, and results of decisions made shall be reflected in the financial results. It is considered vital that timely reports are produced, to enable the business to identify any potential issues or cashflow deficits in a timely manner. Cashflow Forecasts Table 7 Example: Inflow Income is based on our sales. Refer to Table 2 Sales Projection. Sales will be cash from private customers and 7 day accounts for business customers. This is reflected in the inwards cashflow. we estimate that sales will be slow to start with. Our marketing campaign will be our major focus as we want to become known in the area very quickly. This means our inflow is low for the first 6 months and we will have to watch our expenses carefully. Outflow Outflow is based on our Cost of Goods Sold, Overheads and Other Expenses, such as tax, personal drawings and the capital component of loans. COGS These are directly related to our sales. The more we sell the higher our COGS. we understand that the lower we can keep the COGS then the higher our profit will be. Overheads we intend to be very careful about spending money on overheads. Our policy is to buy only what we need. we get at least 3 quotes before we make a decision to buy. we both have to agree that the overhead is necessary before we purchase any item.

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Place the name of the business plan in the header The lower wecan keep our overheads the more profit we will have. We do acknowledge that it is necessary to spend money to make money. we need to be sensible. Cash Flow Balance Table 7 Example: Projected cash flow balances are shown in Table 7. Close scrutiny is planned at all times to ensure that financial goals are being met and that the business remains sustainable as it grows. The cashflow projections as shown in Table 7 lead to the belief that the business is sustainable and will be profitable. Profit & Loss Table 8 Example: Year 1 we are mainly a service business, selling very little product. This is reflected in a Cost of Goods Sold figure of 15% of Sales, resulting in a very high Gross Profit of 85% in year 1. This is slightly lower than the industry benchmark provided to us by our accountant, and confirmed by the industry association. Our Overheads total 32% of sales. The main expenses are advertising, telephone, insurance, loan interest and vehicle costs. This type of business is relatively cheap to run as we operate from home. we are selling our expertise and time, rather than a product. The Net Profit is 52% of Sales, $13,493. This is slightly below the industry benchmark, mainly because of our Gross Profit figure. FP.4 Break Even Sales

Example: Our business is mainly service, but we do have a small Cost of Goods item with the use of the oils. From Table 8 Profit & Loss Projections, we have calculated the following:YEAR 1 Breakeven Sales is Overheads GP% = $8,240 85% $9,694 per year

BUSINESS BREAKEVEN SALES

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Place the name of the business plan in the header Breakeven sales per week (48 weeks) = $38,185 48 $796 per week $796 5.5 $145 per day

= Breakeven per day (5 5day week) =

The average cost of our service is $35 so we would need to do about 4 massages every day to breakeven. ($145 divided by $35) FP.5 Return On Investment

Net profit divided by the owners equity Table 8 is where the net profit is. Owners equity is in Table 5

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ATTACHMENTS 1. RESUMES/RELEVANT QUALIFICATIONS OF KEY PEOPLE, PLEASE INCLUDE A COPY OF QUALIFICATIONS CERTIFICATES/LICENCES SMART LICENSE, INCLUDE THE LIST OF RECOMMENDED LICENSES FROM SMART LICENSE, AND A STATEMENT STATING WHICH LICENSES YOU REQUIRE AND WHICH ONES YOU DO NOT. BUSINESS NAME REGISTRATION, OR STATEMENT THAT YOU WILL USE YOUR OWN NAME. DOCUMENTATION OF OWNERSHIP STRUCTURE AND/OR PARTNERSHIP AGREEMENT COMMERCIAL LEASE AGREEMENTS, COPY OF THE UNSIGNED LEASE OF THE COMMERCIAL PREMISE. LOCAL GOVERNMENT PERMITS, STATEMENT THAT THERE ANY LOCAL COUNCIL PERMITS REQUIRED FOR YOUR VENTURE. (USUAL WITH COMMERCIAL LEASE) COUNCIL APPROVAL/CONDITIONS LOCAL COUNCIL WORKING FROM HOME SELF ASSESSMENT, STATEMENT TO INCLUDE WHY IT IS OK TO WORK FROM HOME FROM THE SELF ASSESSMENT. LETTER OF APPROVAL FROM LANDLORD, LETTER FROM THE LANDLORD TO SAY OK TO OPERATE AN OFFICE FROM HOME OR A STATEMENT FROM YOU THAT YOU HAVE SPOKEN TO THE LANDLORD AND IT IS OK TO OPERATE THE OFFICE FROM HOME. INSURANCE QUOTE, CONTACT (INSURANCE BROKER). INSURANCE MUST BE IN PLACE WHEN YOU SIGN YOUR NEIS CONTRACT.

2.

3. 4. 5.

6.

7.

8.

9.

10. BLUE CARD, OR STATEMENT TO SAY THAT YOU WILL NOT BE WORKING WITH CHILDREN. 11. LETTER FROM FINANCE COMPANY, APPLICABLE IF A LOAN HAS BEEN SORT. 12. COPY OF CONTACT OR TERMS OF AGREEMENT. 13. ABN/GST, STATEMENT INCLUDING WHAT YOUR ABN NUMBER IS AND IF YOU ARE GOING TO BE GST COMPLIANT. 14. VEHICLE REGISTRATION, PHOTO COPY OF REGISTRATION 15. DRIVERS LICENCE, PHOTOCOPY OF LICENSE, OR PASSPORT OR FORM OF IDENTIFICATION. 16. TEST MARKETING RESULTS EG SURVEYS, LETTERS OF SUPPORT, TEST MARKETING DOLLAR RESULT. 17. PHOTOGRAPHS OF PRODUCTS/SERVICES 18. ADVERTISING QUOTES, PRICE FOR YELLOW PAGES OR LOCAL NEWSPAPER. 19. PROMOTIONAL PRODUCTS EG BUSINESS CARD, DRAFT OF ADVERTISEMENT 20. MARKET RESEARCH RAW DATA, RESEARCH INFORMATION GATHERED FROM THE NET OR ANY OTHER SOURCE.

You can include as many more attachments as is required to prove any point in the business plan. Your name 2007/2008 Page 44