Assignment: SMALL BUSINESS PLANNING. 6500 words. Deadline end of April.
The Business Idea Click here to place an order for this or any other related assignment
Your business idea should fulfil an unmet need that was identified by multiple trends that have surfaced during your teams’ STEP and market research. Your idea cannot rely on any invention of a product that requires research and development (R&D), but you can incrementally innovate via different uses of existing products or services. Most good ideas will come from a comprehensive level of secondary research that identifies trends and unmet needs (market demand). The business plan/model you create will be driven by Bygrave’s entrepreneurial process perspective and take into account the probable uncertainty premium, risk premium, liquidity premium and opportunity cost perspectives. In addition, it is expected that your business will display evidence and attributes of social, economic and environmental sustainability (i.e. the ‘Triple P’ Bottom Line of People, Planet, Profit.).
The Scenario & Rules
You’ve won a substantial business planning prize of AUD$10,000 for each member in your group who you decide will be an owner of the business. This sum of money does not represent the maximum amount you may invest in your idea, just your start-up capital. If you need more money you must borrow any additional funds required at the applicable current unsecured business loan rate for a high-risk loan. The plan must include two years of proposed sales forecasts and cash flow forecasts on a month by month basis, using the templates provided in Blackboard. These forecasts and templates will also be used to estimate likely simplified gross and net profit (no accounting for taxes and payment defaults/bad debt in this unit). It is important that your idea is based upon sound research on future trends and unmet customer needs that lead to real or at least defensible opportunities. For your own learning outcome and workload management, we insist that you create a SERVICE business with a physical market presence (no pure online plays). This means, for example, no restaurants, cafes, online/app businesses, retailers or manufacturers of ANYTHING or import/exporters of physical goods.
To do justice to the content of this unit the business must employ at least two staff (that is, two (2) people on a full-time basis or an equivalent number of hours of part-time or casual workers. This means your ambition and opportunity must be big enough (scalable?) to support their wages (two wages Full-Time Equivalent-FTE) as well as owner required drawings. You must plan for the business to commence trading as soon as practical. That said, you should include at least a three month (more in some scenarios) setup/promotional period before the opening which has its own separate budget and timeline. Within six months of commencement, owners must start drawing a salary to pay the owner(s) a wage, equating to at least A$50,000 per owner, per annum (again local conversions and decisions apply for offshore campuses). Not all team members need to be ongoing owners (but only owners get a prize payment), some team members could simply leave the scene after 6 months, and others might become employees. The exact configuration is often determined by the business model developed and its inherent potential to generate income.