Transcription
2nd EditionUndertakesmall business planningBSBSMB404AStudent Workbook
Student WorkbookBSBSMB404A Undertake smallbusiness planning2nd Edition 2010Part of a suite of support materials for theBSB07 Business Services Training Package
Copyright and Trade Mark Statement 2010 Innovation and Business Industry Skills Council LtdAll rights reserved. Apart from any use permitted under the Copyright Act 1968, no part of this publication may bereproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical,photocopying, or otherwise, without written permission from the publisher, Innovation and Business Industry SkillsCouncil Ltd (‘IBSA’).Use of this work for purposes other than those indicated above, requires the prior written permission of IBSA. Requestsshould be addressed to Products and Services Manager, IBSA, Level 11, 176 Wellington Pde, East Melbourne VIC, 3002or email sales@ibsa.org.au.‘Innovation and Business Skills Australia’, ‘IBSA’ and the IBSA logo are trade marks of IBSA.DisclaimerCare has been taken in the preparation of the material in this document, but, to the extent permitted by law, IBSA andthe original developer do not warrant that any licensing or registration requirements specified in this document areeither complete or up-to-date for your State or Territory or that the information contained in this document is error-freeor fit for any particular purpose. To the extent permitted by law, IBSA and the original developer do not accept anyliability for any damage or loss (including loss of profits, loss of revenue, indirect and consequential loss) incurred by anyperson as a result of relying on the information contained in this document.The information is provided on the basis that all persons accessing the information contained in this documentundertake responsibility for assessing the relevance and accuracy of its content. If this information appears online, noresponsibility is taken for any information or services which may appear on any linked websites, or other linkedinformation sources, that are not controlled by IBSA. Use of versions of this document made available online or in otherelectronic formats is subject to the applicable terms of use.To the extent permitted by law, all implied terms are excluded from the arrangement under which this document ispurchased from IBSA, and, if any term or condition that cannot lawfully be excluded is implied by law into, or deemed toapply to, that arrangement, then the liability of IBSA, and the purchaser’s sole remedy, for a breach of the term orcondition is limited, at IBSA’s option, to any one of the following, as applicable:(a)if the breach relates to goods: (i) repairing; (ii) replacing; or (iii) paying the cost of repairing or replacing, the goods;or(b)if the breach relates to services: (i) re-supplying; or (ii) paying the cost of re-supplying, the services.Published by: Innovation and BusinessIndustry Skills Council LtdLevel 11176 Wellington PdeEast Melbourne VIC 3002Phone: 61 3 9815 7000Fax: 61 3 9815 7001email: reception@ibsa.org.auwww.ibsa.org.auISBN: 978-1-921788-40-6Stock code: BSBSMB404A2CLFirst published: February 20102nd edition version: 1.0Release date: June 2010Printed by: Fineline Printing130 Browns RoadNoble Park VIC 3174
Table of ContentsIntroduction . 1Features of the training program . 1Structure of the training program . 1About the unit . 2Assessment tasks. 2Recommended reading . 2Section 1 – Developing the Business Plan . 4What skills will you need? . 5A business plan . 5The real causes of business failure . 5Components of a viable business opportunity . 7Feasibility . 9Brief plan . 15Business and product definition. 18Business name . 19SWOT analysis . 21Section summary . 28Further reading . 28Section checklist . 28Section 2 – Operations . 29What skills will you need? . 30Time span for each objective or stage in your plan. 30SMART Goals and/or objectives . 31Satisfying interests and objectives of various stakeholders . 34Location. 39Location suitability. 40Employing staff . 43Soft skills . 45Duty of care . 47Hazard management. 48Establishing your specialist services network . 51Costs and benefits of consultants . 54Section summary . 58Further reading . 58Section checklist . 58Section 3 –Marketing and Promotion. 59What skills will you need? . 60
Market research and the marketing plan . 60Market research methods and where to find information . 61Profile the market . 62Identify and define the target market . 64Research your target market . 67Marketing strategy. 68Promote the product or service . 70Indentify trends. 72Section summary . 77Further reading . 77Section checklist . 78Section 4 – Finance . 79What skills will you need? . 79Financial planning . 81Strategies for obtaining finance . 84Liquidity . 85Cash-flow spreadsheet . 87The break-even point. 93Monitoring business progress . 96Section summary . 97Further reading . 97Section checklist . 97Section 5 – Risk and Contingencies . 98What skills will you need? . 99Principles of risk management . 99Common project risks . 100Resolution strategies to consider . 105Diversification . 105Contingency examples . 106Succession planning . 106Section summary . 107Further reading . 107Section checklist . 107Glossary . 108Appendices . 113Appendix 1 – Cash flow spreadsheet. 113Appendix 2 – Financial performance indicators. 115Appendix 3 – Useful contacts . 116Appendix 4 – Answers to select learning activities . 117Appendix 5 – Business plan template . 119
Student WorkbookIntroductionIntroductionFeatures of the training programThe key features of this program are: Student Workbook (SW) – Self-paced learning activities to help you tounderstand key concepts and terms. The Student Workbook is brokendown into several sections. Facilitator-led sessions (FLS) – Challenging and interesting learningactivities that can be completed in the classroom or by distance learningthat will help you consolidate and apply what you have learned in theStudent Workbook. Assessment Tasks – Summative assessments where you can apply yournew skills and knowledge to solve authentic workplace tasks andproblems.Innovation & Business Skills Australia has licensed the use of over 200 videovignettes from the Channel 9 television program, Your Business Success. Thevideos have been carefully selected and embedded into relevant learning andassessment resources in order to assist education providers and students in thelearning process.Each video is accompanied by a learning activity. Videos can be found on IBSA’sYouTube channel at http://www.youtube.com/ibsachannel .Structure of the training programThis training program introduces you to writing a business plan suitable for asmall business or department of a larger Business. Specifically, you will developthe skills and knowledge in the following topic areas:1. Developing the business plan (Sessions 1 and 2).2. Operations (Sessions 3 and 4 ).3. Marketing and Promotions (Session 5).4. Finance (Sess
keting_ plan.htm . business.gov.au, viewed June 2010, http://www.business.gov.au (Government assistance for small business, advice and
