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The Thousand Rand Challenge Business Plan Template

This document provides a template of headings for presenting any business idea. The objective is to produce a step-by-step tool that illustrates every step of the business creation process. It should be possible, by following the information, to produce a viable business.

All text in italics should be deleted (including these introductory paragraphs) for use as a template on newly created business idea pages. Please ensure that the new page you're creating really is a new idea. Check the front page for a current list of businesses, or perform a search.

This heading area should contain a brief outline of the nature of the business - change the heading at the top to list the type of business - e.g. Fish and Chips Frying

Contents 1 Description of the business 2 Upstream Businesses 3 Downstream Businesses 4 Competitors 5 Marketing the business to clients 6 The business inputs and outputs 7 Setting up the business 8 The manufacturing or production process 9 Costing and bookkeeping 10 Running the business 11 Before beginning 12 Related articles 13 External links 14 Business Trials

[edit] Description of the business

Within each sub-heading are a series of questions that require detailed answers. Simply fill in your commentary beneath the headings. Note that these headings and the methodology are here, partly to be pedantic, but mostly to ensure a consistent approach across a number of unrelated businesses. It makes searching for information far easier if you know where to start.

What exactly is it that is going to be sold or done?

It will be a spaza shop selling:

• Cigarettes
• sweets
• liks
• lollipops
• cones
• jik
• dishwasher
• handy andy
• toilet cleaner
• oven cleaner
• vetkoeks
• scones
• full plate of food with rice samp
• small schets of coffe
• tea and sugar
• milk and bread
• fried fish
• Ice cream
• vegetables
• Cool drinks
• Polony
• Baked Bread
• Drinks

What skills are needed to do this? Where is this taught and how much will it cost?

no special skills required

• Marketing and selling, cooking, baking, numerical and good customer care skills

What tools or equipment are needed? Where can they be bought, and how much will they cost?

Already all the equipment:

• Shelves
• freezer

Take away-*Stove

         *Pots and pans
         *Microwave
         *Cuttlery and disposable plates
         *Plastics
         

Tuckshop-*Fridge

        *Shelves to display things that are going to be sold and a cash box.

• She is going to use home utinsils for the business, she does not need to buy any, for starters only plater, plastics and cash box which is R300
• 3 Cooking pans-bought from Slins Supermarket,cosmos Dunoon-R200
• Stove Trade Centre- R130

How much space is needed to work from?

only a safe space

Where will the space be found, and how much will it cost to rent?

Running spaza shop from home

• The client will work from the Construction Companies at Century City offices and Residental Development. Transport will cost her R50 a day

What sort of people will buy the product? Who are they and where do they live?

Childern, housewifes and neighbours

• The community in general, school teachers and children, factory workers and contractors/builders in the area.

How much and how often will they buy? Will they come to the shop or will it be necessary to deliver?

People come to shop to buy every day

• Its a full day business operation, for seven days of the week. Open from 06h00 to 20h30 each day.
• Customers will buy from the tuckshop/take away from home.
• Deliver tp factories amd schools as the need arises.(All walking distances)

[edit] Upstream Businesses

A list of businesses and ideas that provide the services and products that this business needs.

• Wholesalers eg Makro
• Liquor wholesalers
• Wholesaler Butchery

[edit] Downstream Businesses

A list of businesses and ideas that this business could provide products for.

[edit] Competitors

What major competitors will attract clients' spending away from the business' products?

• Mable spaza
• Salma's
• Enoch Spaza Shop

What prices and products do these companies have?

Same products and prizes

• They charge market related prizes that everybody does. But they do not sell cooked food.
• Litre softdrink R6.50
• Loose sweets each 20c
• Cigarettes loose each 25c
• Small Sachets sugar R1.50
• Small Sachets coffe R2.50 each
• Small Sachets tea R1.85
• 1 pint milk R1.99

What makes them popular / unpopular?

not open during the holiday season

• Enoch is popular in the area because it is the only spaza in the area, so everybody uses them.
• Their prices are reasonable and they are accessible.

What do they do to attract customers? Specials? Interesting marketing / advertising?

nothing

Which of the competitors stand out as being particularly good at what they do?

Mable' - deliver good customer service

What can be done to stand out against them? What can be done that is more exciting / more interesting?

-put advertising board in front of house -playing music to attract people

• She is going to sell extra,cooked food e.g. full plate meal; sconer; vetkoeks, fish.Cooked food will save customers time in the morning when they go to work they will buy breakfast and/or lunch snacks from her.

[edit] Marketing the business to clients

What sort of people will buy the products and how important is product consistency to them (e.g. must every loaf of bread be identical)?

Childern and housewife aon a contistent basis

• Low income and middle income groups-e.g communiaty in general,school teachers and children as well as factory workers.
• Since she will be fully in charge and doing the cooking, she is going to try to maintain the same standard of quality to all the products she will be cooking and selling.
• She will also be buying from the same supplier to maintain consistancy.

How seasonal or fashion-dependent are their buying habits (do they buy only in summer, only over Christmas, etc.)?

-clients always buy these products

• Customers buy throughout the year except, ice-cream which is stocket only during in the summer season.

Do the clients want the products to be the cheapest or the best (low price / low quality or high price / high quality)?

Good quality and low prices

How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest?

• people don't have tim, they will be attracted to the busines by the by the cooked food and the time they will save
• Specials e.g. on Friday night,she will have specials on softdrinks for customers that buy full plate meal.

She will also play popular music to attract people.

availibility, affordability and good customer service will attrack clients interest

Do the clients want the same things sold in the same way, or do they want things to change all the time?

yes

What can be done to attract the first clients (the most important and most difficult to get)? How much will it cost?

Hand out sweets to childern and telling people about my busines Advertise about her good customer skills Distribute pamplets about her monthly specials

[edit] The business inputs and outputs

List all of the inputs (products that are required to produce the products):

• Cigarettes
• sweets
• liks
• lollipops
• cones
• jik
• dishwasher
• handy andy
• toilet cleaner
• oven cleaner

List all the suppliers for the inputs and their addresses, telephone numbers, and sales terms (cash, 30 days, etc.):

Metro cash and carry Vredenburg Ramondi Whole salers

List all of your outputs (products created by your business):

• Cigarettes
• sweets
• liks
• lollipops
• cones
• jik
• dishwasher
• handy andy
• toilet cleaner
• oven cleaner

What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)?

• Cigarettes R1 53C
• sweets 20c 16C
• liks 30c 13C
• lollipops 70c 50C
• cones R1 55C
• jik R6 R3.60
• dishwasher R12 R3.60
• handy andy R12 R3.60
• toilet cleanerR12 R3.60
• oven cleaner R12 R.60

Do the outputs have a shelf-life? Must they be sold within a specified time limit before they go off / can't be sold? Which ones?

Yes

[edit] Setting up the business

List everything that needs to be done to prepare the business to be ready (list everything needed to have as well, both equipment and stock):

Equpment: freezer and shelves Stock

How long will it take to get all of these things and how much will they cost to get?

one day R1000 for stock

List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages):

• Electricity R150
• Transport R100
• Telephone R100

Total amount for fixed costs: R_______350________

How many staff will be needed and how much will each of them be paid (wages must be included in the fixed costs above)?

no

What training will they need, how long will it take and how much will it cost?

[edit] The manufacturing or production process

List every step, from start to finish, to produce the product

• Buy stock
• Check stock
• Pack stock on shelves
• Start selling

Allocate each of the manufacturing steps to a process and a process to a staff member (e.g. all manufacturing steps A to process 1):

Client will do everything herself

What possible problems may happen during each step of the manufacturing process?

Products can be damaged during transport

What solutions can be identified for these problems? How much will they cost and how long will they take to fix?

Will handle products with care

What is the maintenance program for all the equipment?

no maintenance

What safety requirements are important for production?

How will quality control and client feedback be handled?

Listen to complaints and replace it necessary

[edit] Costing and bookkeeping

How many of each of the stock items can reasonably be sold each day (and month)?

• Cigarettes 100 per day 2000 per month
• sweets 100 per day 2000 per month
• liks 70 per day 1400 per month
• lollipops 40 per day 800 per month
• cones 30 per day 1200 per month
• jik 2 per day 20 per month
• dishwasher 2 per day 20 per month
• handy andy 2 per day 20 per month
• toilet cleaner 2 per day 20 per month
• oven cleaner 2 per day 20 per month

Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)?

More or less the same during the year

What sort of pricing strategy will be chosen (cheapest or best)?

Cheapest price

What profit margin will be chosen for the products

will vary from product to product

Write down the cost prices plus the margin for each stock item you will sell, and the selling price

Cigarettes 47c 53C

• sweets 4 16C
• liks 17c 13C
• lollipops 20c 50C
• cones 45c 55C
• jik 2.40 R3.60
• dishwasher 2.40 R3.60
• handy andy 2.40 R3.60
• toilet cleaner2.40 R3.60
• oven cleaner 2.40 R.60

Is this competitive? Will customers pay this much? Do the margins need to be adjusted? By how much?

yes

Now, set a target. How many items for each product need to be sold on a daily (and monthly) basis to be profitable?

Cigarettes 1000 per month

• sweets 5000 per month
• liks 1000
• lollipops 4000
• cones 1000
• jik 20
• dishwasher 20
• handy andy 20
• toilet cleaner 20
• oven cleaner 20

Set out the products, costs, margins and selling prices:

Item	Daily Target	Monthly Target	Cost Price	Margin	Selling Price	Total per Month
Item A	X	X x number of working days in a month	R y.yy	R z.zz	R y.yy + R z.zz	= monthly target x selling price

What trends are included in the projections?

[edit] Running the business

What is the process for running the business on a typical day? Who will be responsible for each step? Link this back to the production process.

open from 07H30 TILL 21H30

Who will act as backup should the person responsible not be there? What do they need to act as backup?

My husband and children

What weekly processes need to be performed? Who is responsible, who is backup and what tools are required?

Buy stock and bank money

What monthly processes need to be performed? Who is responsible, who is backup and what tools are required?

Pay bills Do bookkeeping

What is the schedule for training and motivating staff?

What processes are required for maintenance and new product creation? Who is responsible and what tools do they need?

Try new products on request

[edit] Before beginning

List some of the support services available (legal, business and other) that might be needed

WCBDC

What major laws concern the business, and which government departments should be called to keep up to date (list phone numbers)?

[edit] Related articles

Insert links to articles on Wikipedia or other Wikis that may be useful (such as recipes, legal discussions, accounting articles, and so on)

[edit] External links

List links to outside websites that may be useful for anyone starting this business

[edit] Business Trials

List your name if you started a business based on this plan, where you started the business, and how you did Links to case histories - you are welcome to develop these and insert them in your personal page (create this by developing a personal profile)

• Elizabeth Stemmet Laingville
• Thandeka Maqwaxaza Vredenburg
• Veronica Snel, Porterville