Business Plan Evaluation for BUS302

This report evaluates the business plans of Blueprints Business Planning Pty Ltd and Sam’s Fast Food Truck Pty Ltd in Australia. It analyzes their marketing, operations, and financial strategies, providing insights into their viability and potential for expansion. The report includes a SWOT analysis, market analysis, and recommendations for both businesses, highlighting their unique challenges and opportunities in the competitive landscape of small and medium enterprises.

Business Plan Evaluation of
Blueprints Business Planning Pty Ltd with Sam’s Fast Food-truck Pty Ltd,
Australia
Student Name: Student ID:
Unit Name: ENTREPRENEURSHIP T217 Unit Code: BUS302
Date Due: Subject Coordinator: David Rich
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Table of Contents
Business Plan Evaluation of............................................................................................................1
Blueprints Business Planning Pty Ltd with Sam’s Fast Food-truck Pty Ltd, Australia..................1
1.0 Introduction................................................................................................................................3
2.0 Analysis.....................................................................................................................................4
4.0 Conclusion and Recommendations............................................................................................8
Reference Lists................................................................................................................................9
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1.0 Introduction
The primary aim of this report is to compare two business plans of small businesses based in
Australia, one is Blueprints Business Planning Pty Ltd and the other is Sam’s Fast food Truck
Pty Ltd. Both are small and medium enterprise, that target a sector in Sydney and other localities
around the city (Crumpton, 2012). While Blueprints Planning Pty Ltd targets Sydney along with
other adjoining areas from New South Wales, Australia, the other business is limited to Sydney
alone. Both are proprietorship based businesses that have their owners as business full time
employed. The scope of this report analyses marketing, operations and finance activities for both
the businesses such that an appropriate comparison can easily be achieved.
Mission of Blueprints Business Planning Pty Ltd is to provide business planning assistance to
small and medium scale e businesses. The Company will aim to provide varied range of advices
to small-scale organisations. Mission of Sam’s Fast food Truck is to provide lip-smacking snacks
near office areas of Sydney during their recess hours. The Company will provide variety types of
burgers, sandwiches, milk shakes, fries and other snacks at cost affordable rates, such that
consumers make repeated purchase at the food truck.
The former business employee is Jessie Jones along with four other people, the other business
employs Scarlet Tassel along with two other employees. Earlier, Jessie Jones had been working
as a management consultant and has good foothold on providing clients with well-equipped
business plans along with feasibility analysis. Scarlet Tassel, has previous work experience with
various restaurants and fast food stall, hence now she plans to extend such expertise in creating a
business and patenting some creations of her own. The former business aims to generate a
revenue of A$100,000 and make revenues worth A$2000, whereas the other business aims to
generate an annual revenue of A$50,000 with profits amounting to A$1500 in the first year
alone. When operations of both the business will be started then there will be one employee
managing director who will be handling all functionalities from home for the former business.
While for the later business, the owner cum managing director has already painted his truck and
arranged for it to form a food truck.
The former business will be entirely self-funded and director intends to provide the necessary
capital as an initial investment worth A$10,000. For the food-truck business the director has
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already sanctioned a bank loan worth A$12,000 for purchasing necessary equipment for
establishing the business. Thus, the following brief comparisons for the business will allow
grater insights into them.
Business goal of the former business is to employ a full-time employee with a salary of
A$42,000 annually. This is a short-term goal, whereas its long term goal is to generate a net
profit of A$2000 and set up a consulting firm at Sydney employing a minimum of five people.
For the later business, short term business goal comprises of establishing the food truck in an
attractive office location at Sydney and repay the business loan within one year of operations.
Whereas, for long term the managing director aims to open a small restaurant in Sydney suburb
location and starting with home delivery systems.
2.0 Analysis
Prior to building any sort of business plan it becomes crucial to collect information and data from
relevant sources (Allen, 2015). For purpose of constructing both the business plans secondary
sources as well as primary sources were used as from Australian Bureau of Statistics, NSW
Small Business Advisory Network. Data from primary sources were gathered by means of
interviews with business enterprises in and around Sydney. There were also reference drawn
from business journals and magazines as well as newspapers.
(a) External Industry Analysis
Market analysis of Sydney reveals that there is a requirement for management and
consulting services for catering to small and medium scale businesses. Though the
market is competitive with a number of well-established companies yet there remains
immense scope un-explored for small and medium scale enterprises (Holmes, 2016).
For food-truck business, there are a large number of restaurant, catering services and
office canteens at Sydney. Hence, the market space is extremely competitive for
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establishing a business in food business, but if the owner can create an unique flavor then
he might be able to attract a sizable number of regular customers.
Holiday season during December and January makes it a seasonal business throughout
the year, except these two months. Hence the owner can devise and make strategizing for
business of making extraordinary management plans during this time.
Food business is an all year round business and profits rise considerably during holiday
seasons. Especially during December and January, sales from the food tcuk is expected to
shoot up. There are a number of managing and consulting agencies in and around Sydney
but they generally cater to large-scale businesses. There are a large number of
competitors in the food business, which comprises of office canteens, restaurants, food-
trucks and so on. The management consultancy can seek strategic alliances from various
accounting firms and data collection agencies. The fast food truck should seek strategic
alliances from suppliers of raw materials, as meat, bread and so on.
(b) Internal Analysis of Company
SWOT analysis is a comprehensive strength, weakness, opportunity and threat analysis.
Strength of management consultancy is that owner has immense knowledge and ideas
regarding the business. Weakness is low availability of funds for expanding and setting
up a professional business mode. Opportunity from the business is immense to expand to
cater to large scale corporations. Threats are from other consultancies offering lower rates
and more integrated services for the same.
Strength of the fast food truck business is that most of the expertise of the business is
extended by the owner cum managing director. The owner have made use of own truck to
create and deliver business strategy, weakness comprises of less knowledge regarding
diversified cuisines. However, there is immense opportunity to diversity into restaurant
business later on.
The management consultancy will cater to areas in Sydney and cities around New South Wales.
Target market will comprise of mainly small and medium scale enterprises. Food truck will be
based in key office area in Sydney and can easily relocate. Thus, its prime areas will be to cater
to office going customers in Sydney. The management consultancy firm will aim to place its
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products exclusively for small and medium scale enterprises. The food truck will cater to young
office goers by providing them cost effective products. Management consultancy will adopt
word of mouth advertising methods mostly. It will adopt promotions through references. Food
truck will have advertising through traditional modes whereas promotion will be through
distribution of brochures and pamphlets in various offices. Management consultant will make
use of digital and social media form of ICT. Whereas food truck will adopt traditional modes of
ICT. Both the companies being start-ups will adopt affordable pricing policy for the same. The
management consultancy will offer its services at cost affordable rates but will enter market will
skimming pricing strategies. The food truck will sell lip smacking foods at affordable prices in
bundle pricing methods. Marketing for both the companies needs to be done extensively such as
to attract customers towards the business. Management consultancy will adopt digital market
strategy, whereas food truck will include marketing through pamphlets, brochures and other
traditional modes of advertisement.
The management and consultancy firm will need to have an appropriate licensing requirement
for starting its business which needs to be obtained. The food truck business will need to obtain
trade license and food safety license prior to conducting its business (Amato, 2016).
Management details for both organisations are not applicable as solely their owners are operating
both now. But both the organisation can expand and will have a suitable management structure.
At present organisation structure for both the companies will not be applicable at it will be
operating directly under the owners (Chell, 2016). Later, management consultancy will employ 1
full time staff. Food business will have a full time staff from the beginning. There will be a legal
advisor and accountant consultant for tax filling and other company related issues for both the
companies. Management consultancy owner needs to purchase an online security for preventing
loss or theft of business plans developed. The food truck business will accommodate will need to
have a food taster along with insurance for the truck. The management consultancy will be
operating from the home of the owner cum managing director. Premises for food truck would
include, food truck and home of the owner will also be required. Equipment required for the
purpose of developing business plan will be a laptop, router for connecting to broadband. There
will be need for plentiful utensils for cooking, marinating and serving clients for the food
business. Oven, chimney and refrigerator are some other key equipment for the business.
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Management plans will be made and delivered by the managing director himself. There will be
need of a laptop and internet connection for production of the plan (Audretsch, 2012). The food
truck will prepare half the preparation at home including marinating. In the food truck ,it will just
fry and pack to deliver various items. Thus, production process will be half done at home of the
owner and half in the food truck itself. The management consultancy business will be operating
through a direct phone line and 24 hours broadband internet connection. It will have two laptops
for the purpose of conducting business and another for making presentation to its clients (Hatten,
2012).
The food truck will require just a mobile phone connection for taking orders and a bill printing
machine. Management consultancy business will face tremendous risks from meeting short term
financial obligations. Further it needs to appoint an executive for collection of payments and
other dues form clients. Risks faced by food truck business are regarding storage of excess food.
Such storage or reduced sale can lead to reducing of long-term profitability. Basic assumption in
the financial forecast is that for the former business, owned capital is the cash at bank and
depreciation for equipment is at 10%. For the second business basic assumption is that loan
capital servicing rate is 5%. Depreciation for various equipment is at 12% due to high wear and
tear. Sales for business planning management consultancy will be at A$75,000 for the first year.
Sales forecasted for Food-truck will be A$105,000 for the first year of business (Carland, 2015).
Blueprints will have a cash at bank balance at the end of the year forecasted to be at A$5,000.
Food-truck will have cash in hand forecasted balance at the end of the year amounting to
A$7,000. Projected profit and loss for management consultancy will be profits in the first year
amounting to A$20,000. For food-truck business projected profits will be A$35,000 for the first
year of operation. The management consultancy’s owner will withdraw a minimum of A$1500
for the purpose of his personal expenses, whereas any profits generated form the business will be
reinvested. In the food-truck business, the owner will withdraw a sum of A$2,000 for his
personal expenses and rest revenues earned will be reinvested and used for paying of business
loan. The management planning consultancy has been set out of the entire funds from the owner.
He has set aside this fund for conducting business A$10,000. Whereas, the food truck business
has been set out from back loan of A$12,000. Thus, the owner needs to payout the business loan
from monthly incomes of the food-truck.
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4.0 Conclusion and Recommendations
Analysis of the two business plans reveals, that both businesses have viability and potentially to
expand. However, marketing tactics for each business is different compared to each other.
Financial setup is also different as one is a self-funded organisation and the other has obtained
bank loan to start business. Operations for both businesses also greatly vary as the former
comprises of business that can operate from home itself and the later has to be established on the
streets. Thus, while both businesses are different it can be understood that both entrepreneurs
possess immense capabilities to expand the business beyond boundaries and potentialities.
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Reference Lists
Allen, K. 2015. Launching new ventures: An entrepreneurial approach. Nelson Education.
Amato, C. A. 2016. Regulatory modes and entrepreneurship: The mediational role of alertness in
small business success. . Regulatory modes and entrepreneurship: The mediational role of
alertness in small business success. .
Audretsch, D. 2012. Entrepreneurship research. Management Decision, 755-764.
Carland, J. C. 2015. Seeing what's not there: The enigma of entrepreneurship. Journal of small
business strategy, 1-20.
Chell, E. S. 2016. Social entrepreneurship and business ethics: does social equal ethical?.
Journal of Business Ethics, 619-625.
Crumpton, M. 2012. Innovation and entrepreneurship. . The Bottom Line, 98-101.
Hatten, T. 2012. Small business management: Entrepreneurship and beyond. Cengage Learning.
Holmes, R. Z. 2016. Two-way streets: The role of institutions and technology policy in firms’
corporate entrepreneurship and political strategies. The Academy of Management Perspectives,
247-272.
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