The Thousand Rand Challenge Business Plan Template

Description of the business[]

Cleaning material like Jik, Stasoft, dishwasher, pine, Handy-andy, Vanish, Bubble Bath

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

  • You must know the product
  • Know how to do sales
  • Interpersonal skills

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

  • 2 litre bottles
  • 5 litre bottles
  • Labels

How much space is needed to work from?'

Only safe store place

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

The owner is running her busines from her own house. She sell her items once a month at a stall at the All-Pay site

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

Housewifes from Saldanha, Vredenburg, Laaiplek. Schools and creches

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

  • Most of the times once a months. Sometimes 2 times per month
  • They will come to the shop
  • Will go to some of them

Upstream Businesses[]

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

Downstream Businesses[]

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


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

  • Supa Clean Vredenburg
  • Easy Clean Vredenburg
  • Other people from Cape Town
  • No one from Hopland
  • Major retailers like Pick 'n Pay,Clicks, shoprite etc

What prices and products do these companies have?

Jik, Stasoft, Pine, Handy Andy, Dishwaser and bubble bath

  • Supa clean 1lt R8 5 lt R14.50
  • Easy clean 1 lt R7.5 5lt R17.50

What makes them popular / unpopular?

They are popular because they are cheaper and have labels on their cans They are unpopular because of poor quality

  • The big retailers are popular because they offer a variety of good, so a person can do a one stop shopping
  • They are unpopular because they are cash and carry and they are also far from the people
  • They offer lots of specials which they advertise on newspapers, flyers and shop windows

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

  • They tell people that they are the cheapest
  • At stall
  • Advertise
  • Labels on bottles

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

People from Cape Town - cheap prices

  • Chain stores, Pick 'n Pay, Clicks, Shoprite

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

  • Tell people that my product is better because of good quality
  • Do more advertising
  • My product will have a label to say where to get it
  • Buy a hamper and get 1 2lt free
  • Will offer a personal and friendly service.
  • Will give credit to trustworthy customers
  • Will have attractive packaging
  • and will deliver for those that want that service

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)?

  • Factories
  • Housewifes
  • Schools

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

Whole year the same demand

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

Low price with high quality

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

They buy the products were they can get the best value for their money

  • Seeing,touching and smelling (sampling).
  • Flyers,newspapers adverts.
  • Accessibility
  • Convinience

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

Same things the same way

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

will advertise by giving some of the products.  I will give samples to the first 5 or 10 persons

The business inputs and outputs[]

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

Buy products from wholesaler

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

Supa Clean Vredenburg as well as different whole salers local and in Cape Town

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

Jik, Stasoft, dishwasher, pine, Handy-andy, Vanish, Bubble Bath

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

Differnt prices

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?

Long shelf life

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):

Nead a tregter, table, storage place, plastic bags and bottles as well as stock.

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

2 days

  • containers R200
  • Labels R100
  • Plastic Bags R100
  • Stock R600

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

  • Salaries R300
  • Telephone R100
  • Petrol R100
  • Water R50

Total amount for fixed costs: R______550_________

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 staff to be employed

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
  • Put labels on bottles and put stock in containers
  • Price
  • Sell 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):

The owner will be responsible for everything

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

  • Transport
  • Credit at suppliers

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

  • Sell only on a cash basis
  • Get reliable transport

What is the maintenance program for all the equipment?

no maintenance

What safety requirements are important for production?

  • Masks
  • Gloves

How will quality control and client feedback be handled?

Will replace product

Costing and bookkeeping[]

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

50 of each item per month

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

Whole year more or less the same, but more at the end of the year because people do more cleaning.

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

Sell at the best price that the clients can pay

What profit margin will be chosen for the products

will depend on product

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

  • Stasoft R99 R175
  • Handy Andy R99 R175
  • Dishwaser R99 R175
  • Pine R99 R175
  • Vanish R122 R300
  • Bubble bath R89 R175
  • Jik R69 R175

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


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

1 5lt of every product per month

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








Handy Andy



R 99

R 76

R 99 + R 76

= 5 x 175

What trends are included in the projections?

Clients need cleaning material every month

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.

Will be open from 8H00 till 20H00.

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

The owners daughter

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

Buying stock and filling bottles with cleaning chemicals

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

On a monthly basis

  • Bookkeeping
  • Check stock
  • Paying phone and water
  • Buying containers

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?

Will get some moderns containers and machines that can fill the containers

Before beginning[]

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

Red Door Accountants WCBDC

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

Business started by Johanna Maarman in Saldanha area

Links to case histories - you are welcome to develop these and insert them in your personal page (create this by developing a personal profile)