BUSINESS PLANNING

Not surprisingly the main assessment for this assignment is to produce a business plan.  This is an individual assignment. 

This is a very practical assignment and whilst there are supporting theoretical frameworks there is no one completely convincing body of theory which you can apply in full.  The consequence is a constant need to review the plan as it is constructed and often much backtracking to correct or avoid new problems as they emerge.  In practice one starts with a business idea and tests its viability from as many perspectives as possible.

Identify a business proposal which you feel might have potential.  Your proposal should be for a commercial business.  Note: it is equally valid for not-for-profit organisations to have business plans but such organisations tend to have an additional dimension of complexity and you should avoid this difficulty in this assignment.

You will then produce a business plan which will essentially test the viability of the business proposal.  Assessment will be based on the rigor and realism that you apply to your business plan not the final result in terms of forecast profit etc.  Submission time is given in the course outline.

Scenario

You plan to start your own business and appreciate the need for a business plan before you make any other commitment.  It is likely that your business plan will be addressed to whomever you determine is likely to be the principle financial backer for your business – bank, angel investors etc.  You can consider any business proposal you wish but there are some practical considerations you must take into account:

·                It will be advantageous to select a proposal that can be launched in New Zealand and better still one that is local to your campus. 

o      It is easy to underestimate the difficulties of finding the necessary information to build your plan and this problem will be aggravated by distance so local is good;

o      If you are working in a group all members need to be familiar with the proposed business environment.

·                Each individual has $20,000 to invest in the business.  Your business plan will include your proposals on how you intend to secure any additional funds required.

·                It will be possible to pitch to an angel investor for further ‘seed corn’ money in week 5 – clearly the costs of this funding will be included in the final plan.  A separate tutorial will be offered if you need to invoke this option.  The cost of angel investment will be very high.

Required:

Produce a business plan for your group or individual business proposal.  The business plan should be addressed to whoever will be your principle financial backer.

Business Plan:

The business plan is likely to consist of the following sections.  Some sections may be added or combined according to the nature of your business proposal.  At every stage you must make it clear what elements of uncertainty exist this frequently relate to a lack of information.

1.              An executive summary (10%)

             The summary should be exactly that and should not exceed a one page.  You should include a summary of the financing required and the most important aspects of the business and business plan.

2.              Describe your business proposal and your skills for operating the business

Describe the business you propose to start, the key objectives and how those objectives relate to your personal objectives.  NO MARKS ARE AWARDED because this is essentially assessed in the test but still an essential part of the plan.

3.              Business strategy (10%)

             Outline the basic business concept and strategy of the business both short and longer term. 

4.              Marketing strategy and marketing plan (30%)

Define the industry your business will operate in and the most important trends.  SWOT and or Porter’s Five Forces may be used.  Describe the marketing strategy, explaining any segmentation approaches, product, price etc. and why this is likely to be the best available approach. Include a sales forecast and explain how this was calculated

5.              Operations plan (15%)

             Describe the operations plan.  This should explain how the goods of services will be produced and, if relevant, how they will be distributed. The plan will include: equipment and other resources required; inventory; and staffing.  A implementation plan – particularly one showing the timing of implementation may be needed.  Your plans for managing the business are essential. 

6.              Social responsibility & sustainability (5%)

             Identify key issues – advantages and impacts: e.g. employment, environment, health etc.

7.              A financial plan (30%)

             Include a cash flow, forecast profit for y.e. 30/06/2021 and forecast balance sheet for the same date.