- 1 The Thousand Rand Challenge Business Plan Template
- 2 Description of the business
- 3 Upstream Businesses
- 4 Downstream Businesses
- 5 Competitors
- 6 Marketing the business to clients
- 7 The business inputs and outputs
- 8 Setting up the business
- 9 The manufacturing or production process
- 10 Costing and bookkeeping
- 11 Running the business
- 12 Before beginning
The Thousand Rand Challenge Business Plan Template
Name and Contact details of client:
Aviwe Madolo 25 Mayixhale St Kwanonqaba Mossel Bay
Cell: 073 311 4914
Description of the business
What exactly is it that is going to be sold or done?
Photography - films and video
What skills are needed to do this? Where is this taught and how much will it cost?
You must know how to handle the camera and how to make a film
What tools or equipment are needed? Where can they be bought, and how much will they cost?
Extension, stand for camera, empty videos and dvd and video machine The above mentioned can be bought by: Hi-Fi Corporation and Incredible Connections.
How much space is needed to work from?
Work from clients home of work space
Where will the space be found, and how much will it cost to rent?
Will do all admin from my flat, no extra rent is needed, only electricity
What sort of people will buy the product? Who are they and where do they live?
Everyone could make use of my services because it is going to be of excellent quality.
How much and how often will they buy? Will they come to the shop or will it be necessary to deliver?
It would depend on how we negotiate about the cost for more hours. I deliver by myself and charge by the hour, they need to come to my working place so that I could show them the video or film for approval.
A list of businesses and ideas that provide the services and products that this business needs:
- Hi-Fi Corporation
- Incredible connections
A list of businesses and ideas that this business could provide products for:
- Wedding, functions etc.
- Business - team building
- Family videos
What major competitors will attract clients' spending away from the business products?
I may be the fist person in the location who makes films and photograph things. I charge affordable prices and advertisement is very popular.
What prices and products do these companies have?
The well known companies in town has got very high prices and standard
What makes them popular / unpopular?
They are well known to the public but they also have very high prices.
What do they do to attract customers? Specials? Interesting marketing / advertising?
Advertisement and promotions, they are also well known
Which of the competitors stand out as being particularly good at what they do?
What can be done to stand out against them? What can be done that is more exciting / more interesting?
Offer exceptional services of high standard. Good advertisement and marketing strategies.
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)?
Everybody could use my services and the product consistency would differ from each person to the next depending on their needs.
How seasonal or fashion-dependent are their buying habits (do they buy only in summer, only over Christmas, etc.)?
Throughout the year
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 work at affordable prices
How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest?
They see advertisements and pamphlets, also business cards
Do the clients want the same things sold in the same way, or do they want things to change all the time?
The same standard but for cheaper
What can be done to attract the first clients (the most important and most difficult to get)? How much will it cost?
Specials, promotions and advertisement
The business inputs and outputs
List all of the inputs (products that are required to produce the products):
Extension, Computer, empty cassettes, dvd, videos, batteries and camera stands
List all the suppliers for the inputs and their addresses telephone numbers, and sales terms (cash, 30 days, etc.):
DVD's Movies, Video cassettes
List all of your outputs (products created by your business):
Funeral services, weddings, parties, team building etc.
What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)?
- Funeral services R350
- Parties: R450
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?
They must be sold within a specific time limit
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):
Connection of electricity and I need a camera stand
How long will it take to get all of these things and how much will they cost to get?
It would only take one or two days at the most
List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages):
- Equipment R300
- Electricity R150
- Petrol R300
Total amount for fixed costs: +- R750 per month
How many staff will be needed and how much will each of them be paid (wages must be included in the fixed costs above)?
None needed at the moment
What training will they need, how long will it take and how much will it cost?
I have the necessary qualification
The manufacturing or production process
What possible problems may happen during each step of the manufacturing process?
- To many appointments on one day
- Equipment could accidentally brake or get stolen
- I could get sick and will not be able to make my appointments on that day
What solutions can be identified for these problems? How much will they cost and how long will they take to fix?
- To have a appointment book and make sure I dont over book myself for one day
- Service my machinery on a regular basis and keep it lock in a safe place
What is the maintenance program for all the equipment?
Handle all equipment with care and charge battery fully
What safety requirements are important for production?
Work in a safe place and don't lent out any product or video's
How will quality control and client feedback be handled?
I would offer a guarantee of quality to my clients
Costing and bookkeeping
How many of each of the stock items can reasonably be sold each day (and month)?
Depends how often they need my services and the success of my marketing
Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)?
I sell more movies in the holiday and more specials in the festive season
What sort of pricing strategy will be chosen (cheapest or best)?
What profit margin will be chosen for the products?
A 50% profit margin
Write down the cost prices plus the margin for each stock item you will sell, and the selling price:
- Funerals: R350
- Parties: R450
- Other: R300
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?
At least 20 functions a month
Set out the products, costs, margins and selling prices:
- Product cost/service: R330
- Selling Price: R450 (Services)
Total per Month
What trends are included in the projections?
Specialising in your services and offering quality footage and services
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:
- Photographing of parties, funerals, functions etc.
- Developing footage into DVD’s, video or cassettes
Who will act as backup should the person responsible not be there? What do they need to act as backup?
I will work alone at first
What weekly processes need to be performed? Who is responsible, who is backup and what tools are required?
- Photographing of parties, funerals, functions etc.
- Developing and assisting to request of clients
What monthly processes need to be performed? Who is responsible, who is backup and what tools are required?
Marketing and rendering an advisory service to the community, tell people about the business and the important role that the business is playing in the community.
What is the schedule for training and motivating staff?
Not applicable, will work alone in the beginning
What processes are required for maintenance and new product creation? Who is responsible and what tools do they need?
Good customer services
What major laws concern the business, and which government departments should be called to keep up to date (list phone numbers)?