Business PlanTemplate Stage 2 New Business Track This template is for schools who are starting a business for the first time IMPORTANT: HOW TO COMPLETE AND SUBMIT YOUR BUSINESS PLAN This template should be completed by students with the support of teachers. Please use the format provided as this is aligned to our marking scheme. There are 2 Parts to the Business Plan template. - Part 1: Business Plan. Please answer ALL questions. - Part 2: Financial Plan. Please answer ALL questions in Sections A-F.Section G and H are optional. You can use extra pages. However, please try and keep your submission to 10 pages maximum. The numbers in brackets e.g. (10) indicates the highest number of points that can be awarded for that question. Follow our top tips to score high points and increase your chances of winning a prize! You can also earn bonus points by including supporting documents in the Appendix! When you are ready to submit your completed business plan to us, please follow these instructions:- Log in to your account at: www.schoolenterprisechallenge.org/login - Go to the ‘Progress Report’ on the right hand side. - Click on 2) ‘Submit Your Business Plan!’ - Choose your file and upload your completed Template. Click SUBMIT! ? Any Questions Contact the School Enterprise Challenge team at:E-mail: info@schoolenterprisechallenge.org Blog: http://schoolenterprisechallenge.wordpress.com/ Website: www.schoolenterprisechallenge.org 1 New Business Plan Template 2014 PART ONE Section A: Your Details School name Country E-mail Address Lead teacher Belle Rose State Secondary School Mauritius heelanaaullybux@gmail.com Heelana FARREEDUN-AULLYBUX Section B: Your Business Details Business Name Business Activity Main product / service No. of students in business team Total Start Up Budget in US $ (Estimated) Total Sales Income in US $(Estimated) Net Profit in US $ (Estimated) Tea Break and Cakes Tea shop serving muffins of all types with a handicraft corner together with hot and cold drinks Tea, Muffins, hot chocolate, milk shakes, juices 42 (1 more student joined recently) $142 $385 $116 Section C:Market Research and Target Market 1. What Market Research did you do?Please include howyou did your market research and how many people you spoke to. (5) Market research was carried out by interviewing students, teaching and non-teaching staffs with the help of a questionnaire consisting of 11 questions as shown below. We also did a simple random sampling. We conducted questionnaires and distributed to people in the school. There were 77 respondents in all. We used survey for the market research because we believe that two way communication with the interviewees is the best way to get in depth information as well as feedback. Firstly, we asked the interviewees if they were willing to share their time with us and if so, we introduced ourselves as students of Belle Rose State Secondary School and did a brief introduction of our enterprise and products. Then they were asked to fill in the questionnaires and we were there for any misunderstanding of questions. The interviewers were separated to different places in our school. Thus from this record obtained from the survey we were able to see the reactions and the feelings of the respondents regarding our products. By using this method, we could also promote our products and get some important and interesting suggestions from the targeted clients. 1. Age 0 – 19 20 – 39 40 – 59 60+ 2. Sex Male Female 3. We will open a tea shop at school. Would you like to buy cakes and drinks from us? Yes No 4. What are your preferences? (For e.g.: Tea, Hot chocolate, Milkshake, Sandwich, Cupcake, etc...) CAKES (2) DRINKS (2) 2 New Business Plan Template 2014 5. At what time would you like our shop to be open? 08 00 -09 00 09 00- 10 00 11 00- 12 00 12 00 – 1300 13 00 -14 00 6. Which factors are most important to you when choosing product/service? Correct size environmentally friendly Low price Good quality Healthy Good taste Easy access Variety 7. Are you a vegetarian or non-vegetarian? Vegetarian Non-vegetarian 8. Do you have any allergy? (if yes please specify) ______________________________________________________________________________ ______________________________________________________________________________ 9. How much money would you be ready to spend; On cakes: _______________________________________________________________________ On drinks: _______________________________________________________________________ 10. Are you satisfied with the cakes and snacks you buy? _____________________________________________________________________________ 11. Are there any ways you would want your current suppliers to improve the cakes and drinks? ____________________________________________________________________________ ____________________________________________________________________________ 2. What were the results of your Market research? Please include who is going to buy your product or service and why they will buy it.(10) The market research has provided us with information about students and teachers preferences, allergies, prices and others that they are willing to pay. Our first customers will be students and teachers as students will not have permission to leave school grounds during the day and the public cannot be admitted on the school premises either. Through the research we got to know about the reactions and feelings of the people interviewed. All the interviewees were happy with our business as this is the first time we are doing such a project in our school. We got to know about the amount of money customers are willing to spend on our proposed food and drinks. Moreover, we found information about the factors that targeted customers consider when choosing products. These factors include good quality, variety, good taste and so on. All the information acquired is very beneficial and useful to our enterprise. According to our competitors’ analysis, we got information about rivals’ price and product they are selling. Our main competitors are the school canteen, Bubble tea (a specialised outlet selling mainly bubble tea in all flavours at some 1.5 km away) and Super U (a big supermarket having its own cafeteria situated at 200m from school), both situated at Rose-Hill (near to our school). Since we attained information about rivals, it will be easier for our firm to set affordable prices. We are taking into consideration the preferences and taste of potential and reliable customers. In addition, we are expecting to have a good reputation due to our good quality 3 New Business Plan Template 2014 products. Due to the research, we can find ways on how to differentiate our products from those of the competitors. Thus, we can easily compete with them and we expect to have more customers. Hence both sales and profits can be increased. The performance of our business can be enhanced. Section D: Competitors and Competitive Advantage TOP TIP! To help you score high marks in Section D, read our Competitor Analysis guidance in Weekly Guide 5and in the ‘Resources’ section of your school profile! 3. Who are your main competitors and what are their strengths and weaknesses? Please fill in the table below. You may add extra rows if you need to.(5) Competitor Name Strengths Weaknesses Who are your main competitors? What are your competitor’s main strengths? What are your competitor’s main weaknesses? E.g. Mary’s vegetables E.g. Good reputation E.g. Limited selection of vegetables If you have more detailed information about your competitors, please include it here: 4. How are you going to be better than your competitors?E.g.Our competitors have a limited selection of vegetables, so we are going to sell a large range of vegetables.(5) Section E: SWOT Analysis TOP TIP! To help you score high marks in Section E, refer to the SWOT Analysis guidance in Weekly Guide 5. Remember! Your Strengths and Weaknesses are internal to your business and in the present. Your Opportunities and Threats are external to your business and in the future. 5. Complete the SWOT Analysis below. (5) Strengths – What are your strengths? Many shareholders willing to shoulder many responsibilities.\ Many skills such as cooking, handicrafts etc.; variety of cakes and drinks possible; customer will have limited access to competitors apart from school canteen during school hours Free use of oven, electricity, water, etc Weaknesses – What are your weaknesses? Little experience in running the business. The important number of students (41) might give rise to conflicts. Less time might be available for studies if time is not well managed Opportunities – What opportunities do you have? Full support of Rector and Parent- teacher association who are willing to participate in partial Threats – Does your business face any threats? The school canteen is our direct competitor. Little group cohesion. 4 New Business Plan Template 2014 funding, sponsorship of business if necessary. Possibility of expansion, in terms of new varieties of cakes, drinks, or even to deliver on order During school holidays, the business will be closed. Business closed during exams also. Reliability on school equipment to carry out production. Storage cupboard only accessible through teacher Section F: Operational Plan 6. What steps will you take to start your business? Think about the one-off tasks you need to do to actually get your business started. E.g. First,we will identify suppliers in our area.(5) 7. How will you produce or deliver your product or service? Use the table below. You can add rows if you need to. (5) Task How long? How often? Who? What tasks need to be How long will these How often do these Who will be responsible done on a daily, weekly tasks take? tasks need to take for these tasks? E.g. or monthly basis to place? E.g. Daily? communications team make your business Weekly? run? 8. How is your business team structured? You may like to include your Organogram here. (5) Our team has 41 members. We work in different groups: production, marketing and financial.. Section G: Marketing and Sales Plan 9. Tell us about your 4 P’s (Product, Price, Place, Promotion). (10) a) Product – What is your product? Our product include cupcakes, tea, milkshakes, juices etc. Cupcake: Cupcakes are our main products which will be made in different shapes, flavor and size. Since we have found that cupcakes are very popular among people specially our students so we have decided to ask them about their taste and likes. Our cupcakes will be of different flavor such as vanilla, chocolates as well as fruit based cupcakes. b) Price – What price will you sell it at? Price: Since we are starting up our business in school, we are therefore setting a reasonable price which our targeted customers will be able to afford. We have decided to use cost-plus pricing, that is for a start sell our cupcake at least three times its cost price. c) Place – Where will you sell your product? At school itself, in front of the Home Economics lab d) Promotion – How will you promote your product? Through posters, word of mouth, through organisation of an opening event consisting of free distribution of cupcakes to staff and students to introduce project, concept, business and students to the school. 5 New Business Plan Template 2014 Section H: People, Profit, Planet 10.How does your business meet the People, Profit and Planet criteria? Please give an example for each criteria. Refer back to Question 7 in your Business Idea Template to help you.(6) People Part of the profits (20%) will be given to Home Economics students who each have to look for some $10 weekly to have practical classes. The money will be used by them to buy ingredients. Moreover we will be encouraging emerging talents as a handicraft corner will be available in our tea shop to display pieces made by students themselves wishing to sell them, We will accept their work as deposit and students will be paid only if their piece is sold or else it will be returned to them. We intend to share proceeds of sales of handicraft 50-50 for a start to see how it works out, thus we do not have to incur any cost for this part of the business while ensuring variety of products and promoting talents. Profit The business needs to be profitable to be able to achieve all its objectives. Moreover we, students of Belle Rose SSS think that our business has all chances of being profitable as we will be selling popular cakes to a very encouraging public who supports us. We will ensure profits will be made as we will be selling our main product with a mark up of 300% of costs. Our costs consisting mainly of ingredients for the cakes. No other charges will have to be paid and our prices will be more competitive than our competitors. We will be keeping 60% profits which will be reinvested in the business and part distributed to shareholders in terms of dividends. Planet Part of our long term profit (20%) will be going to the pre-vocational department of the school which has embarked on a project to embellish the school while protecting the environment through re-using and recycling materials like plastic bottles. The money will primarily be used to buy seeds and other plants. Section I: Financing Strategy 11. How much start-up capital do you need to start your business and how will you raise this money? Refer back to Question 8 in your Business Idea Template to help you.(10) Each student will be contributing some $3 each (Rs100). Two or three teachers will be contributing the rest which will amount to some $142 i.e Rs 5000. All contributors will be shareholders in a private limited company so that shares will not be sold to outside students without the authorisation of existing shareholders. One share will be entitled to one vote. Section J: Sustainability and Business Development 12.How will you keep your business running after this school year? E.g. We will mentor new students and pass the business onto them.(5) Lower 6 students of this academic year will continue to operate the business during the first term of next year until 2016 lower 6 students have been briefed, trained and motivated to take over the business and to make it reach new heights. Our shares will be sold to them so that we will be getting back our money and they will be more motivated to manage the business seriously as their own money will be involved. 13.Where do you see the business in 5 years? E.g. We will grow our product range to include other vegetables and we will expand our market by selling our products in 3 new districts. (5) 6 New Business Plan Template 2014 In five years time the business will have grown hopefully as students and teachers will have got more experience and we would may be have invested in some ovens of our own. More varieties of cakes would be available on a more regular basis and word of mouth would have spread out so that we would be getting more order from outside the school e.g. from parents, relatives, friends etc. Moreover the school would have become an autonomous integrated school where needy students will have their needs answered by the school itself, a green and healthy environment and a more dynamic and enriching academic atmosphere. Revenue will have increased so that we could embark on even more important projects for our school. Market research will be carried out from time to time to ensure that our products satisfy our customers. Access to raw materials will not be a problem as there are readily available everywhere. 7 New Business Plan Template 2014 Appendix (OPTIONAL Bonus Points) You can use this space to paste or attach any items which support your business plan, e.g. a completed customer survey, a detailed competitor analysis, reports or photos. (10 Bonus Points) Satisfaction 0% 20% 53% Yes 27% No Depends PRODUCTION PLANNING TEMPLATE Task How long? How often? Who? What tasks need to be How long will these How often do these Who will be done on a daily, tasks take? tasks need to take responsible for these weekly or monthly place? tasks? basis to make the business run? Cleaning services Buy ingredients Inventory control Check ingredients to buy Costing Meetings with team members General Customer survey 15 minutes 30 minutes 30 minutes Daily Weekly Weekly Weekly Roster Roster Roster 20minutes 20 minutes Weekly fortnightly Roster Roster 1 period 40 minutes Monthly Monthly Roster Roster 8 New Business Plan Template 2014 Managing directors 3 students & 1 teacher Production directors (2) Production team (7) Marketing directors (2) Social media and blog manager 2) Marketing team (7) Accounting directors (3) Sales directors (2) Record keeping managers (2) Sales team (7) Advertising manager (2) Company secretaries (2 students & 1teacher) nager PART TWO Financial Plan This section will be awarded a total of 20 Points. These 20 Points will be allocated as follows:Section A (5), Section B+C+D (5),Section E+F (5), Section G+H (5). TOP TIP! You may complete your Financial Plan using your local currency. Please tell us what this is,E.g. Indian Rupees.In the template we will ask you to convert your TOTALS into US $. You can use this website to do this: http://www.xe.com. Remember to write down the exchange rate you are using in the box below! Please add any extra rows to the tables where necessary. Local Currency used(E.g. Indian Rupees) Mauritian rupees (Rs) Exchange rate to US Dollars (E.g. 1 US $ = 59.7 Indian Rupees) Period of time budgeted for(E.g. 3 months) 1 US$=Rs 35 3 months 9 New Business Plan Template 2014 Section A: Start-Up Budget(Estimated) TOP TIP Your Start-Up Budget is the costs of the Equipment and Supplies that you will need to start your business. If you already have the products that you need to start up your business please list them here and put 0 as the Unit cost. 1. Please list all your Start-Up Costs. Start Up Equipment Quantity Big bowls 1l jug Scale Cutlery Start Up Supplies/Expenses 5 2 1 5 Quantity 35 10 150 15 Unit Costs Paper cupcakes Stationery for posters etc Flour Eggs Vanilla Sugar Sunflower Oil Chocolate Dried fruits Fresh fruits- oranges... 400 various 50 for 200 cupcakes 300 Total Costs of your Equipment (Quantity x Unit Cost) 175 20 150 75 Total Costs of your Supplies/ Expenses (Quantity x Unit Costs) 50 300 2 kg 16 1 bottle 2kg 1 litre 1 packet 1 packet various 30 6 150 30 60 100 300 50 30 96 150 30 60 100 300 50 Tea Cocoa Milk Coffee 1 1 1kg 1 50 160 200 150 50 160 200 150 Local Currency 2146 In US Dollars $ 62 Total Start up Budget (Add your Total Costs Together) Unit Cost Section B: Income(Estimated) 2. Please list all the products or services that your business will sell. Please tell us the amount youthink you will sell and the price at which you will sell them. Name of Product or Quantity Sales Price Sales Income (Quantity x service Sales Price) 10 New Business Plan Template 2014 Cupcakes Tea Chocolate with milk Coffee 400 40 100 40 Total Income (Add all the ‘Sales Income’ together) 15 10 10 10 6000 400 1000 400 Local Currency 7800 In US Dollars $ 222 Section C: Direct Costs(Estimated) TOP TIP Direct Costs refer to materials, labour and expenses related to the production of a specific product or service. Don’t forget that the direct costs from your Start-Up Supplies/Expenses in Section A should be included here too. 3. Please list all of the items you will need to buy in order to make or provide each product or service. Name of Item Quantity Unit Cost Total Costs (Quantity x Unit Cost) Product/Service 1 Please tell us what this product or service is here: Cupcakes or muffins Paper cupcakes 400 50 for 200 cupcakes 50 Flour Eggs Vanilla Sugar Sunflower Oil Chocolate Dried fruits Fresh fruits- oranges... 2 kg 16 1 bottle 2kg 1 litre 1 packet 1 packet various 30 6 150 30 60 100 300 50 30 96 150 30 60 100 300 50 Product/Service 2 Please tell us what this product or service is here: Drinks Tea Cocoa Milk Coffee 1 1 1kg 1 50 160 200 150 Product / Service 3 Please tell us what this product or service is here: 11 New Business Plan Template 2014 50 160 200 150 Product/Service 4 Please tell us what this product or service is here: Total Direct Costs (Add up all the Total Costs) Local Currency 1339 In US Dollars $ 38.3 Section D: Gross Profit (Estimated) 4. Please calculate your Gross Profit in your Local Currency and then convert it to US Dollars $. Calculation Local Currency US Dollars $ Total Sales Income Total Direct Costs Gross Profit (Total Sales Income – Total Direct Costs) 7800 1339 6461 222 38.3 184.6 Section E: Indirect Costs(Estimated) Top Tip Indirect costs are items that you need to spend money on to run your business. However, they are not related to the making of your product or service. E.g. Marketing or transportation costs involved in getting your product to market. 5. Please list all of your Indirect Costs. Name of item Quantity Stationery for posters etc various Total Indirect Costs (Add up all the Total Costs) Unit Cost 300 Total Costs (Quantity x Unit Cost) 300 Local Currency 300 In US Dollars $ 8.6 Section F: Net Profit (Estimated) 6. Please calculate your Net Profit in your local currency and convert this to US Dollars. 12 New Business Plan Template 2014 Calculation Local Currency US Dollars $ Gross profit 6461 184.6 Total Indirect Costs 300 8.6 Net Profit (Gross Profit – Total Indirect Costs) 6161 176 Section G: Return on Investment (OPTIONAL) 7. Please calculate your Return on Investment (Optional) Net Profit Total Start Up Budget Net Profit / Start Up Budget x 100 = Return on Investment (%) 6161 2146 34.8% Section H: Pay Back Period (OPTIONAL) 8. Please calculate the Pay Back Period for your Start-Up Costs (Optional) a. Budget Period E.g. 4 months b. How many months until you make your first sales? c. Net Profit d. Average Net Profit per month once sales have started: c / (a – b) e. Start Up Budget f. Pay Back Period: b+ ( e / d) 4 months Not much time lag. 6161 per month 6161 2146 0.3 Additional Comments: If you have any additional comments about your Financial Plan please put them in here: Since we have no labour costs, no electricity, no water and other taxes, our net profit figure is quite high. But to ensure fairness a roster involving all students will be organised for production, sales and marketing so that everyone has the chance to contribute equally to the business. CONGRATULATIONS on writing your Business Plan! You have completed Stage 2! Submit NOW! 13 New Business Plan Template 2014