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

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?

  • Fabric painted products will be manufactuted and sold. Products to be made (table mats, table cloths, cushions)
  • Fabric and solid painted products (Plates' bottles,

ostrich eggs)

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

  • Had training at Westland Art Industry

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

  • Material, Linen and Cotton are available at Pep Stores (R20,00) per meter.
  • Fabric Paint are available at Lemar Arts & Crafts (in stock)
  • Brushes (in stock)
  • Sewing machine (in stock)

How much space is needed to work from?

  • A big ventilated room, with a lot of space for painted articles to get dry.

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

  • The client will be working from home with no rent charges.

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

  • Clients know her from her area all living in Vredendal
  • Clients are friends, family,ex colleagues and neighbours.
  • Tourists when visiting Heidelberg

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

  • The products will be sold through the year.
  • Clients order on a monthly basis.
  • Products will be delivered personally.

Upstream Businesses[]

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

  • Pep Stores
  • Sheet Street
  • Ackermans

Downstream Businesses[]

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

  • Cushions by Pep Stores R30 each
  • Sheet Street R70 each
  • Ackermans R60 each


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

  • Pep Stores
  • Sheet Street
  • Ackermans

What prices and products do these companies have?

  • Pep Stores R30 per cushion
  • Sheet Street R70 per cushion
  • Ackermans R60 per cushion

What makes them popular / unpopular?

  • Prices are higher at some stores.
  • The product is not handmade.
  • Designs on cushions are not the clients choice.

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

  • These stores advertise in magazines regulary.
  • Their business names, information and specials are on posters on shop windows.
  • They have lots of employees.

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

  • Pep stores and Ackermans
  • They never run out of stock.
  • They have lots of employees.

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

  • The client will be handing out small gifts to clients

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)?

  • Friends, family, ex-colleagues and neighbours.
  • Her product is unique.
  • Customers have their own choice of designs and articles.
  • Tourists

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

  • The product will be available through the year.

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

  • High quality and low prices.

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

  • Clients buy at the business who give the best service and is trustworthy.
  • They advertise in magazines, pamflets, and on television.

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

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

  • She will give clients small handmade gifts
  • She will walk from door to door to advertise her products
  • She will make a noticeboard on her house with all the neccesary information.

The business inputs and outputs[]

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

  • Material, linen, cotten
  • Brushes
  • Material paints and different colours

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

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

  • Table mats, table cloths and cushions.
  • Plates, bootles, ostrich eggs.

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

  • Table mats price R40 profit R20.
  • Table cloths price R80 profit R20.
  • Cushions price R60 profit R20.
  • Plates price R40 profit R20
  • Bottles price R26 profit R10
  • Ostrich Eggs R60 profit R40
  • Embroidery R120 profit R50

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?

  • Outputs have a long shelf life.
  • The product is not perishable.

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):

  • Material not in stock
  • Brushes in stock
  • Paint in stock
  • Extender in stock
  • Machine in stock
  • Cotton in stock

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

  • Can get the material immediately in town.
  • Taxi expense R12.
  • Material R20 per metre.

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

  • Electicity R30.
  • Taxi R R24.
  • Own Salary R50.
  • Phone R30

Total amount for fixed costs: R_104.00______________

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

  • Her daughter will be her assistant, free of charge.

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

  • No training needed.
  • Her daughter accompanied her to workshops in the past.

The manufacturing or production process[]

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

  • Table cloth
  • Measure and cut required size of the tablecloth out of material.
  • Choose clients choice of motive and draw it on material.
  • Paint motive with fabric paint on material.
  • Let it dry overnight.
  • Iron painted area for about 3 minutes with an hot iron.
  • Sew the tablecloth and add lace around it.
  • Iron the tablecloth again.
  • Pack it neatly in a box.
  • (All fabric painted articles are made on the same principal.)

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):

  • Her daughter has attended training workshops.

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

  • Power failure.
  • Sewing machine my break.
  • Needle may break.
  • Paint may stain material.
  • Brushes may get hard.
  • Owner may get sick.
  • Bottles, plate and ostrich eggs can fall and brake

and may cause injury.

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

  • Complete articles before delivery
  • Make arrangements beforehand to borrow friends sewing machine.
  • Make sure paint is in palets that cannot tip over.
  • Ask daughter beforehand to stand in, in times of sickness.
  • Have a first aid kit on hand.

What is the maintenance program for all the equipment?

  • Oil machine regulary.
  • Make sure all screws are fixed.
  • Make sure all paint is properly sealed.
  • Place all brushes in clear water with sunlight liquid.

What safety requirements are important for production?

  • Put sewing machine locked away and out of reach of children.
  • Make sure sewing machine is always pluged out.
  • Keep paint out of reach of children.

How will quality control and client feedback be handled?

  • Running business professionally.
  • Understand what you are doing.
  • Never give up on what you are doing.
  • Good human relations.
  • Quality service at all times.

Costing and bookkeeping[]

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

  • 4 Tablecloths @ R80.00 each,R320.
  • 6 Cushions @ R60.00 each,R360.
  • 6 plates @R40.00 each, R240.00
  • 8 bottles @R25.00, R200.00
  • 10 Ostrich Egg shells @R60, R600.00

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

  • Yes it is possible.
  • Products are sold right through the year.

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

  • The cheapest and best.

What profit margin will be chosen for the products

  • R60.00

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

  • Tablemats costprice R20.00, mark-up R20.00.
  • Tablecloths costprice R80.00, mark-up R20.00.
  • Cushions costprice R60.00, mark-up R20.00

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

  • Yes, some is still

Pep Stores cushions are R30.00 and adjusted with R30.00.

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

  • Tableclothes 4 @ R80.00 each, R240.00 profit, R80.00
  • Cushions 6 @ R60.00 each, R360.00 profit, R120.

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


Daily Target

Monthly Target

Cost Price


Selling Price

Total per Month

Item A


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?

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.

  • List all daily responsibilities.
  • Plan my day.
  • Date of delivery must be punctual.
  • Do not put your problems on the clients shoulders.

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

  • My daughter.
  • Immediate Family.

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

  • Montly delivery.

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

  • My daughter will be back-up for bookkeping, input and output as well as receipts and buying of stock.

What is the schedule for training and motivating staff?

  • I will make a handpainted article as present for my daughter.

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

  • Attend a workshop that are held in the area by craft and arts experts.

Before beginning[]

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

  • Lemar Arts & Crafts Pastorie Street, Vredendal at 027 2133 157.
  • Prominent Paints, Posbus 2088, Vredendal at 027 2135 513.

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

  • None

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)

External links[]

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

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) Retrieved from ""