Small Business Association of Australia Business Plan

The Small Business Association of Australia is a dynamic organization that focuses on advocating and supporting for the small and medium enterprises. In this article, we discuss their business plan compared to the business plan of the Blueprints Business Planning Pty Ltd. We cover their marketing and sales plan, financial feasibility, operational plan, and action plan.

Running Head: Entrepreneurship 0
Small business association of australia
Entrepreneurship
12/12/2018

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Contents
Introduction...........................................................................................................................................2
Marketing and Sales plan......................................................................................................................2
Nature of the products and mode of promotion.................................................................................2
Customer analysis and pricing policy................................................................................................2
Mode of communication....................................................................................................................3
Promotional Strategy.........................................................................................................................3
Key people.........................................................................................................................................3
Financial Feasibility..............................................................................................................................4
Operational Plan....................................................................................................................................5
Action plan............................................................................................................................................7
Recommendation.................................................................................................................................10
Conclusion...........................................................................................................................................11
References...........................................................................................................................................11

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Introduction
The Small Business Association of Australia (SBAA) is a dynamic organization that focuses
on advocating and supporting for the small and medium enterprises. They are been supported
by both small and big businesses, government administration, and other key institutions
creating SBAA as one of the emerging business organization in Australia. It is to be
understood that these small and medium enterprises are the essence of the Australian
economy and plays an important role in future economic growth and prosperity of Australia.
They are identified for their positive contribution to the economy and face an uphill battle for
sustainability and growth. They are dedicated to attaining a great deal for helping
organizations grow, connect, and prosper in the market (Perera and Chand, 2015). In the
following, an effort has been made to discuss the business plan of the organization compared
to the business plan of the blueprints business planning Pty Ltd.
Marketing and Sales plan
Nature of the products and mode of promotion
The Small business Association of Australia is taking small and medium enterprises to a next
level and providing services of business consulting and international trade opportunities.
They are seeking to provide greater opportunities to expand and develop their business
internationally. They should promote their services through digital marketing platform as it
can motivate the customers by attractive promotional offers. They can use creative and
innovative digital strategies such as social media, mobile app, and membership in order to
meet expectations and enhance reputation in the industry (Rubin, Aas and Stead, 2015).
As comparing to Blueprints Business Planning Pty Ltd, they deliver business education
programs and business planning services to small and medium enterprises. They expect to
become one of the best business advisor and planning in the market. They are covering the
target market of 10 to 100 personnel of small and medium enterprise. They are promoting
their services by communicating with customers or clients as a way of reinforcing
relationship (Rice et al., 2015).
Customer analysis and pricing policy
The customers chosen for the business consulting are those small and medium organizations,
which is striving for economic growth and development. They are charging A$100 per hour

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for business consulting and international trade opportunities (Cheema, Akram and Javed,
2015).
The Blueprints Business Planning Pty Ltd expects to charge A$120 per hour for consulting
and training services. These prices are tending towards the higher end in management
consulting services (Ainin et al., 2015).
Mode of communication
The Small business Association of Australia communication medium to connect with
customers should be Integrated Marketing Communication Strategy. They should establish a
strong and consistent relationship through government agencies and business organizations.
They should maintain inbound and outbound trade legislation and delivers greater
opportunities to trade internationally (Cavusgil and Knight, 2015).
The Blueprints Business Planning Pty Ltd selects promotion and Advertising to interact with
customers, which would be trade specific for the target audience. They should provide
contract services primarily training to enhance small business management competence and
skills. They should deliver a fair and equitable return on effort and investment from a long-
term perspective.
Promotional Strategy
The Small business Association of Australia has captured a little percentage of the market in
continuation to various sectors except business consulting i.e. Health and Wellbeing,
Hospitality and tourism, and Skill development as sort of promotional strategy to persuade
customers. They should especially target one single segment by which they can develop
networking opportunities and secure relationship (Felzensztein et al., 2014).
The Blueprints Business Planning Pty Ltd utilizes video streaming software, which defines
the services to be offered. It will also utilize customer relationship software to take full
advantage of customer value. They should focus on social media tools and internal marketing
communication to create public awareness (Baxter et al., 2014).
Key people
The business plan of the Small business Association of Australia should incorporate the key
people who will conduct the business operations in delivering referral and business
consulting services, which will help in business to grow and build the business. The key
people involved are marketing officer, operation officer, and finance officer. They can assist

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in maintaining a business and attain sustainable profits for long-term growth (DunnGalvin et
al., 2015).
The key people involved in the Blueprints Business Planning Pty Ltd are managing director,
a consultant for general planning for business, a consultant for training activities, and
professional associations. They should build a network and association, which gives benefit
for long-term perspective (Karadag, 2015).
Financial Feasibility
a) The owners of the Small business Association of Australia have decided to expect
$1852 as net profit margin, sales turnover as $80000, which are the main indicators of
the performance of the organization. Based on the forecasts made in the feasibility
aspect, it is projected that:
Net profit margin % = Net profit before tax/ Sales turnover
= $1852/ $80000 =2.31%
This is relatively low as low the norms of the industry, as it is not usual for an
organization in its initial year of trading. It is to be expected to increase the sales
revenue progressively in year 2 and year 3. It will also be possible to utilize other
ratios to analyze the financial performance of the organization (Shahriar, Schwarz and
Newman, 2016).
As compared to the Blueprints Business Planning Pty Ltd, it is to be estimated $2330
as net profit margin, sales turnover as $103750, which affects the performance of the
organization. It is to be projected as:
Net profit margin % = Net profit before tax/ Sales turnover
= $2330/ $103750 =2.24%
b) Break-even analysis- It is to be expected that the contribution margin is equal to the
expected gross profit margin i.e. 88%. If the organization is highly cost-effective, it
will assist in meet unexpected contingencies.
Expected fixed cost= $89950
Break-even point in dollars = Fixed Cost/Contribution margin
= $89950/0.88

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= $102215
In the break-even analysis of Blueprints Business Planning Pty Ltd, the gross profit
margin is equal to 94%.
Expected fixed cost= $95280
Break-even point in dollars= Fixed cost/ Contribution margin
= $95280/ 0.94
= $101362
c) Return on Investment-It is to be stated that in the initial stage of the organization, the
expected returns are not to be economical. It is to be stated that the net profit is $1852,
and total investment is $20,000. The Return on Investment measures the performance
of the organization, inventory investment, and investment in capital equipment. The
return in investment will either create revenue that gives an advantage to the net
income of the organization.
Return on Investment = Net profit/ Total investment*100
= 1852/350000
= 52%
In the Return on Investment of the Blueprints Business Planning Pty Ltd, the net
profit is $2330, and total investments are $4, 50,000. It will project the outcome of the
expenses made which is far greater.
Return on Investment = Net profit/ Total investment*100
= 2330/450000
= 51%
It is to be stated that the Return on Investment of the Small Business Association of
Australia is 52 % and the Blueprints Business Planning Pty Ltd is 51%. In this case, it
is to be evaluated that the future profitability is to be gained if the ROI is greater.
These funds will be appropriate to cover the expenses of the organization throughout
the initial year of operations, which is most important from the cash flow standpoint.
Their main mission is to offer widespread business consulting services and
international trade opportunities. The Break-even analysis is very important for
financial feasibility as it analyzes the net profit for the organization (Simon et al.,
2015).

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Operational Plan
The Small Business Association of Australia operations transformations activities, which
helps customers to execute their corporate policies, change their core operations, embrace the
growth and prosperity, and maximize operational efficiency and effectiveness. The
organization is an SME company registered in Australia (O’Neill, Sohal and Teng, 2016). It
is being registered with three shareholders:
Anne Nalder :(60% shareholding)
Leigh Bernhardt :( 60% shareholding)
Peter White :(40% shareholding)
Their outsourcing practices involve financial and outsourcing activities such as change
management, offshoring, procurement, tax shared services, reshoring, finance, and
technology improvement. Their banking and securities operations operate with financial
establishments to assist them in maintaining the operational strategy necessary for growth and
profitability in the prevailing situation. The production processes and location strategy of the
organization involves activities, which assist companies to address several challenging and
complex issues. They need to work with management to reduce operation cost in order to
maintain profits, increase margins, and deliver quality care. It can help in developing and
maintaining business model transformation, communication, and conduct business
operations. They need to maintain sales service and consult profitable solution to the people
so that they can operate their business in a well-organized manner. They need to develop the
customer relationship so that trust can be built, profits can be generated, and success can be
achieved. This can help them to grow effectively and efficiently. It is to keep in mind that
they are in a business, in which the most important thing in building trust and relationship so
they need to take the challenge to address the issue (Su, Baird and Schoch, 2015).
The Blueprints Business Planning Pty Ltd is a proprietor limited company which operates
under these shareholders:
Jessie Jones :(40% shareholding)
Stephen Molloy :(40% shareholding)

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Andrew St John :(20% shareholding)
They are facing insurance and security challenges, which involves a worker’s compensation,
professional indemnity, director’s and public liability. They need to take care of every
customer data and records for backed up progressively. They need to update their production
processes within six months and maintain their internal data. They need to maintain the
relations with customer and an online communication tool need to be developed. They are
also facing critical risks as excessive workload is there which is to be controlled. It may be
redirected to build the strategic alliance in the organization. They need to take care about the
new and innovative technologies needed to train the people for maintaining the business for
growth and success in long-term. They need to target the services which can be helpful for
the business to grow and develop. The office is located and major freeways and they need to
travel the metropolitan areas. Their planning is associated with the dynamics of the market
and being responsive to the changed environment and needs to match the supply and demand.
It to be analyzed that the Small Business Association of Australia focusses on every operation
of business consulting services, which can help in future success. The Blueprints just focus
on sales and operational processes which needs to enhance to a different way and needs to be
overcome the business approach (Seethamraju, 2015).
Action plan
Activity Time period (in
months)
Authority Objective of
Growth
Concerned
Department
Commencement
of Business
plan
2 month Marketing
Manager
The main goal is
to start a
business
advisory service,
which helps to
build loyalty. As
compared to the
Blueprints
Business
Planning Pty Ltd
needs to generate
loyalty and trust
in order to
enhance good
Marketing
Department

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customer
relationship.
Financial
feasibility
15 days Financial
Manager
The main goal is
to maintain the
firm relationship,
which can be
managed by
financial
feasibility. As
compared to the
Blueprints
Business
Planning Pty
Ltd, they need to
collaborate and
cooperate
(Xiang,
Worthington and
Higgs, 2015).
Finance Department
Build an Internal
and external
relationship
1 month Manager of HR The main aim is
to maintain a
strong customer
relationship and
generate
opportunities. As
comparing to
Blueprints
Business
Planning Pty
Ltd, they are
focussing on
interactions with
the customer.
Human Resource
Department
Protecting 2 month HR manager The main aim is Human Resource

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reputation to maintain a
positive
reputation among
people who are
with us for
getting consulting
services. As
comparing to
Blueprints
Business
Planning Pty Ltd,
they need to do
an ethical and
feasibility study.
Department
Maintaining
investor
confidence
2 month Every manager The main
objective is to
strengthen
confidence,
which can build
trust among
them. As
comparing to
Blueprints
Business
Planning Pty Ltd
should be
responsible for
addressing these
risk and
contingencies.
Whole department
Making financial
report and audit
2 month Financial
manager
The main goal is
to make new
standards for
revenue
recognition. As
comparing to
Blueprints
Business
Finance Department

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Planning Pty Ltd,
they are fully
incorporated in
managing the
accounts.
Software
Development
2 month Designing
Experts
The main aim is
to develop
technology for
better use in the
future. As
Blueprints also
focussing upon
the same.
Information and
Technology
Department
Promotion and
Advertisement
2 month Marketing
manager
The main goal is
to induce the
customer to get
better business
consulting
services, which
can help in
business to grow.
Marketing
Department
Consulting 1 month Business
consultant
The last step is to
get better and
efficient business
consulting
services, which
drives an
opportunity to
build a
relationship
(Chong, 2014).
Business consultant
Department

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Recommendation
 The Small Business Association of Australia should provide learning resources and
consultation, which can improve their successful enterprise.
 They should manage the financial and legal issues in respect to guide them in a
difficult situation.
 They should take advantage of strong business and international opportunities to
associate nationally and internationally.
 They should guide people and committed to provide a great deal for growing business
and support new ideas.
 They should assist in developing small businesses and accomplish better economic
growth.
 They should provide better opportunities in establishing business and help to capture
the whole market and attain higher profits (Hale, Borys and Adams, 2015).
Conclusion
In conclusion, it has been stated that in a very short time SBAA has attained respect and
recognition at a very vast level as they are participating in giving advice regarding business
policy. The business plan covers every aspect such as marketing and sales plan, financial
feasibility, operation as well as an action plan. It is being compared from Blueprints Business
Planning Pty Ltd, which mainly concerns success and growth. As it has been seen that the net
profit margin and break-even analysis is higher of SBAA. Therefore, they need to concentrate
on long-term planning of providing better-consulting services.

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References
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influencing the use of social media by SMEs and its performance outcomes. Industrial
Management & Data Systems, 115(3), pp.570-588.
Baxter, S., Sanderson, K., Venn, A.J., Blizzard, C.L. and Palmer, A.J. (2014) The
relationship between return on investment and quality of study methodology in workplace
health promotion programs. American Journal of Health Promotion, 28(6), pp.347-363.
Cavusgil, S.T. and Knight, G. (2015) The born global firm: An entrepreneurial and
capabilities perspective on early and rapid internationalization. Journal of International
Business Studies, 46(1), pp.3-16.
Cheema, S., Akram, A. and Javed, F. (2015) Employee engagement and visionary leadership:
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p.139.
Chong, S. (2014) Business process management for SMEs: an exploratory study of
implementation factors for the Australian wine industry. Journal of Information Systems and
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