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?

I will be selling the following:

  • Chicken pieces
  • Whole chickens
  • sausages

-Sell Cornish Hens

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

Good communicating skills and decision making skills -Marketing Skills -Experience in the field

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

  • fridge (own)
  • Carry bags

-Knife -Big Pot -A telephone to place orders

How much space is needed to work from?

only space for my fridge

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

I will be working from my home in Middelpos and it will cost R50 for electricity for my fridge

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

Every household in the community who want to buy chicken locally

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

They will buy chicken pieces and sausages every day and whole chickens once a week.

Upstream Businesses[]

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

  • Chicken Farms

Downstream Businesses[]

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

  • Restaurants and hotels where chicken is served.


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

  • Entokozweni spaza shop in Middelpos
  • Mofokeng
  • Ekuphumleni spaza shop

What prices and products do these companies have?

They have exactly the same products

What makes them popular / unpopular?

They also stock other products (spaza shop)

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

They play loud music. Clients favourite type of music

  • They are well known in the community
  • They sometimes have specials

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

No one is the best

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

  • I have to ensure good customer service
  • I will have from time to time specials
  • I will give something extra for the kids (sweeties)
  • Good parkaging and less prices

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)?

Chicken and chicken pieces will be bought by the adults in the community and the sausage will mostly be bought by the youth.

  • Customers from site 5
  • Yes consistency is important to clients

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

They will buy continiously, no seasonal or fashion business

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

They want the best quality at the lowest price

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

  • They compare prices
  • Look for the best quality
  • need somebody with good customer service
  • Neat and clean enviroment attract customers, as well as fresh and affordable chickens at affordable prices.

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

yes always the same

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

I will advertise by putting a big sign in my yard

The business inputs and outputs[]

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

My inputs will be:

  • Chicken pieces
  • Whole chickens
  • sausages

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

Metro Cash and Carry Vredenburg Cartol Saldanha

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

My outputs will be:

  • Chicken pieces
  • Whole chickens
  • sausages
  • Live Chickens
  • Knife
  • Hot water

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

  • Chicken pieces R15.75 profit R4
  • Whole chickens R21.00 Profit R9
  • sausages R8.73 Profit R2

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, it must be sold within 2 weeks

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):


  • Fridge
  • Knife
  • Pot
  • Table client already owns everything
  • Clear plastic bags for packaging


  • Chicken pieces
  • Whole chickens
  • sausages

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

It will take not more than 2 hours and it will cost about R230

  • To Prepare 20 live Chickens it will take 2 hours

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

  • Electricity R50

Airtime R30 Transport R50

Total amount for fixed costs: R__130_____________

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


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


The manufacturing or production process[]

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

  • Buy stock from supplier
  • Check stock
  • Price stock
  • Put in fridge
  • Sell it to clients

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):

Everything will be done by myself

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

Transport to town can be a problem

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

Will hire reliable transport

What is the maintenance program for all the equipment?

  • The client will wash her fridge once a week

What safety requirements are important for production?

I must lock my house at night or the fridge

How will quality control and client feedback be handled?

I shall apologise to complaining clients and replace stock if necessary

Costing and bookkeeping[]

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

  • Chicken pieces 7 per day 140 per month
  • Whole chickens 10 per week 40
  • sausages 14 per day 240 pm

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

Always more or less th e same

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

The best price my clients can afford

What profit margin will be chosen for the products

will vary

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

  • Chicken pieces Cost R11-75 R15.75 profit R4
  • Whole chickens Cost R21 R30.00 Profit R9
  • sausages Cost R6.73 R8.73 Profit R2

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

yes, still competitive

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

  • Chicken pieces 7 per day 140 pm
  • Whole chickens 10 per week 40 per month
  • sausages 14 per day 280 per month

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


Daily Target

Monthly Target

Cost Price


Selling Price

Total per Month

Chicken pieces


7 x 20 number of working days in a month

R 11.75

R 4.00

R 11.75 + R 4.00

= 140 monthly target x R15.74 selling price

What trends are included in the projections?

Demand almost always the same

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 7H30 till 22H00

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

My husband

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

Buying stock

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

I need to pay monthly expenses. My husband will run the shop

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?

I will ask my clients if they want something else

Before beginning[]

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

WCBDC Red Door

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

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 ""

  • Siyaphambu Meat Thuliswa Sholden