Business Plan Analysis and Development Report - Business Plan Project

This report provides a comprehensive analysis of a business plan, focusing on the development of a courier company, Fast Track Couriers. The report includes an assessment of two business plans, comparing their strengths and weaknesses. It then details the development of a business plan for Fast Track Couriers, covering aspects such as executive summary, business description, products and services, marketing strategies, operational plans, organizational structure, financial forecasts, and risk analysis. The report further outlines a communication plan and key performance objectives, along with the testing of performance measurement systems. Finally, it addresses responding to performance data and suggests corrective actions. The plan focuses on financial and non-financial performance metrics, resource requirements, and licensing procedures, concluding with a summary of the business plan's key elements and a communication plan.

Running head: DEVELOP AND IMPLEMENT A BUSINESS PLAN
Develop and Implement A Business Plan
Name of Student:
Name of University:
Author’s Note:

1DEVELOP AND IMPLEMENT A BUSINESS PLAN
Table of Contents
Assessment 1- Analyse a business plan...........................................................................................3
Selection of two business plan.........................................................................................................3
Comparison and contrast of business plan.......................................................................................3
Comparison of strengths and weakness of the business plan..........................................................4
Assessment 2 – Develop a business Plan........................................................................................5
Executive Summary.........................................................................................................................5
Introduction......................................................................................................................................5
Description of the Business.............................................................................................................5
Business products and services........................................................................................................6
Marketing activity – the market.......................................................................................................6
Business operations.........................................................................................................................6
Management and organizational structure...................................................................................7
Financial Background..................................................................................................................7
Risk Analysis...............................................................................................................................8
Licensing......................................................................................................................................9
Conclusion...................................................................................................................................9
Communication Plan.....................................................................................................................10
Assessment 3- Monitor and performance......................................................................................11
Identification of key performance objectives............................................................................11
Testing of performance measurement systems..........................................................................11
Assessment 4- Responding to the performance data.....................................................................11
Answer to Question 1................................................................................................................11
Answer to Question 2A.............................................................................................................12
Answer to Question 2B..............................................................................................................12

2DEVELOP AND IMPLEMENT A BUSINESS PLAN
Answer to Question 2C..............................................................................................................13
Answer to Question 3A.............................................................................................................13
Answer to Question 3B..............................................................................................................13
Answer to Question 3C..............................................................................................................13
Answer to Question 4 A............................................................................................................14
Answer to Question 4B..............................................................................................................16
References......................................................................................................................................17
List of Appendices.........................................................................................................................19

3DEVELOP AND IMPLEMENT A BUSINESS PLAN
Assessment 1- Analyse a business plan
Selection of two business plan
The two-business plan selected for analysis are “Jolly’s Java and Bakery (JJB)” which is a
bakery business plan and “Mahogany Western Wear” which is a clothing retail business plan.
Comparison and contrast of business plan
Parameters Jolly’s Java and
Bakery (JJB)
Mahogany Western
Wear
Good text book structure
and layout
The business plan
has followed a
basic structure by
stating necessary
information about
the company,
products and
services, the
market and
financial
considerations.
Business plan for clothing
to do business has
included a company
ownership structure along
with all the other basic
topics such as startup
financial information,
product description,
technology used and
future products
(Featherstone and
Featherstone 2015).
Quality and relevant
information
The information
provided in the
business plan is
seen to be relevant
as per the legal
requirements
prevalent in the
state of
The business plan has
included every detail of
its competitors and sales
literature

4DEVELOP AND IMPLEMENT A BUSINESS PLAN
Washington.
Good market analysis and
risk analysis
The market
analysis is done by
a brief research on
the present bakery
business in South
Washington
District
The market analysis is
done by depicting primary
target customers and
secondary target
customers
Specific and realistic
performance measures
The data provided
is absolutely
realistic in nature
The data is relevant to the
present standing of
Houston, TX in southwest
Houston, TX
Understandability and
appropriateness, well
documented
The business plan
is easy to
understand for any
individual event
from non-financial
background
The business plan has
shown significant use of
statistical information and
graphs which requires
intermediate knowledge
of financial data (Thébaud
2015)
Comparison of strengths and weakness of the business plan
The strength of Mahogany Western Wear includes a detailed analysis of sales, gross margin
and net profit for three years. However, it suffers from a very high breakeven point of $ 117000
by month in sales. The main recommendation is seen with improving gross profit margin.
The strength of the Jolly’s Java and Bakery is identified with a sound personal plan which is
able to control the total payroll cost for two years. However, the business plan suffers from
increasing current liability in the subsequent years. The recommendation for the bakery business
is discerned with putting an augmented focus including a monthly sales forecast (Thébaud 2015).

5DEVELOP AND IMPLEMENT A BUSINESS PLAN
Assessment 2 – Develop a business Plan
Executive Summary
The study aims to relate business services, market activity, “Productivity and performance
targets for key result areas, Financial and Non-Financial Performance measures” and evaluation
of resource requirements such as human resource, capital and equipment. The forecasts have
included total start-up cost of the development activities with an amount of $ 14871600 and
equipment cost of $ 25220000. In addition to this, the profit percentage is discerned with 9.79 %
in the first year, 14.35% in the second year and 23.41 percent in the third year. The total sales
amount for breakeven is depicted with $ 588000.
Introduction
The business plan is related to a courier company named Fast Track Couriers. Some of the
main interpretations of the report will include identification of business services, market activity,
performance and productivity targets for “key result areas”, “Financial and Non-Financial
Performance measures” and evaluation of resource necessities such as human resource, capital
and equipment. The report also aims to show the management and organizational structure along
with financial background. The latter part of the study has included a risk analysis and
information on licensing procedure. In addition to the aforementioned sections, the development
of this business plan is followed with a sound communication plan which is discussed about the
stakeholder’s information, timeline, method of communication and monitoring procedure
(Thomas et al. 2014).
Description of the Business
Fast Track Couriers operating in “New South Wales” for last 15 years is seen to be providing
packaging services from medium to large sized packages in metropolitan Sydney region. The
business is considered to be having a target market of small to medium-size business which
makes up 80% of the customer base (Pauceanu and Pauceanu 2016).

6DEVELOP AND IMPLEMENT A BUSINESS PLAN
Business products and services
The main business products and services of the company is seen with logistics and packaging
services for small and medium-sized business in the Sydney metropolitan area. The delivery
services will comprise of several types of special packaging considerations for perishable items,
fragile items and regular items. The containers will be designed in a specialized way to ensure
that for the delivery of perishable items such as food, vegetables and dairy product the business
as Emperor number of reefer containers. Similarly, for fragile items the packaging is done with
more care and specialized packaging techniques (Snedaker and Rima 2014).
Marketing activity – the market
The marketing channels are put to use with direct sales, mailing, Internet listings and
telephone. The company ensures that the customers are followed up on regular basis via
telephone, which ensures the world satisfaction of the business proceedings
Business operations
- Productivity and performance targets for key result areas- The productivity focus
will be implied with reducing the lead-time, improving operational initiatives along with
addressing of personnel problems existing in the courier company.
- “Financial and Non-Financial Performance measures”- The financial performance
measures will include a monthly cash flow forecast for 12 months along with
interpretation of growth in gross profit over selected timeline. This will include estimated
sales of $ 22 million over the period of one year, estimated net profit of 3.2 million and
operating costs of 2.2 million. The non-financial performance measures will focus on
achieving the strategic objectives such as improving delivery to regional areas of New
South Wales. The other non-financial concerns will be addressed with improving the
current work environment by deploying two-man team for the drivers (Duening et al.
2015).
- Resource Requirements, including capital equipment, human resources- the main
resource requirements are classified in form of financial requirement and personal
requirement. The estimated capital equipment need is seen with an investment of $
100000. The human resource need is considered with a total budget of $45,000 per

7DEVELOP AND IMPLEMENT A BUSINESS PLAN
annum for the drivers and $ 32,000 to $ 75,000 for the employees posted at the head
office. The employee demographics for mainly consist of male employees aged between
25 to 65 years (Pauceanu 2016).
Management and organizational structure
The organizational structure is seen to be including a managing director- accountable for
handling the everyday decisions related to operations, “logistics manager-responsible” for
scheduling the drivers and trucks and five office support employees for administration, human
resource, sales and maintaining of accounts. A detailed view of the organizational plan is
presented below as follows:
Financial Background
- Forecasts-The total start-up cost of the development activities is discerned with an
amount of $ 14871600 and equipment cost of $ 25220000. In addition to this, the profit
percentage is discerned with 9.79 % in the first year, 14.35% in the second year and
23.41 percent in the third year. The total sales amount for breakeven is depicted with $
588000 (Entrepreneur.com 2016).

8DEVELOP AND IMPLEMENT A BUSINESS PLAN
Risk Analysis
Risk Likelihood Impact Strategy
Increasing price of petrol Highly Likely High The company should make
some provision to buy
lightweight vehicles which
require the lesser even for
carrying a full truckload
(FTL).
Increasing cost of
maintenance
Likely Medium The company should depend
on long-term policies for
servicing and insurance to
ensure even in case of
increasing maintenance cost
is able to minimize the costs
due to higher
insurable/maintenance
amount (SBA US Small
Business ADmin 2016)

9DEVELOP AND IMPLEMENT A BUSINESS PLAN
Risk Likelihood Impact Strategy
Resigning of employees or
truck drivers
Highly Likely High Some of the existing drivers
and management employees
are having experience of
more than 12 years and their
absence can create lot of
anomaly in the present
operations of the business.
The overall working
conditions need to be
improved by ensuring
workplace safety,
refreshment facility and other
amenities for the employees
(Beveridge 2015).
Licensing
The licensing procedure of the business should adhere with the requirements as per
“Australian Business Licence and Information Service (ABLIS)”.
Conclusion
The business plan has able to include the necessary financial and nonfinancial information as
a developmental strategy. The inclusion of financial information is seen with a plan for start-up
requirements, cash flow forecast, profit and loss depictions and balance sheet. The financial data
has been also able to present the forecast on increasing gross profit margin. The nonfinancial
plan implied is able to improve the overall working condition for the existing employees along
with consideration of several types of risk factors such as resigning of existing employees,
increasing maintenance cost and increasing price of petrol. The risk factors have been duly
addressed with mitigation strategies (Botha and Robertson 2014).

10DEVELOP AND IMPLEMENT A BUSINESS PLAN
Communication Plan
Stakeholders Message Timeline Methods of
communication
Monitoring
Suppliers Communicating
with the
availability of
deliveries and
rate as per
distance of
delivery
1 week Web Chat ERP
Customers Seeking for
individual
customer
deliveries
1 month Telephone,
Email
Online chat personal
Third-party
logistics
Knowing about
the price of
deliveries in
case of
excessive
demand for the
existing fleet of
trucks
6 months Telephone Third-party logistics
company website
Vendors Knowing about
the needs of
wholesalers for
particular set of
items
1 week Telephone,
Email and web
chat
ERP

11DEVELOP AND IMPLEMENT A BUSINESS PLAN
Assessment 3- Monitor and performance
Identification of key performance objectives
The key performance objectives are discerned with quality, speed, dependability, cost
performance, flexibility, working conditions and personal management.
Testing of performance measurement systems
- Quality- This objective will be maintained by providing the best packaging services
across long-distance deliveries so that every time the company’s ability to ensure the
goods are the from any damage.
- Speed- Fast Track Couriers will ensure that it is able to deploy the best combination of
vehicle as per the requirement of the service and suitability.
- Cost performance- The cost performance decisions are based on maximizing the
efficiency and ensuring that the company is able to achieve most of the strategy
objectives with minimum cost possible.
- Working conditions- The working conditions will be provided by ensuring workplace
safety, refreshment facility and other amenities for the employees (Hitt, Xu and Carnes
2016).
Assessment 4- Responding to the performance data
Answer to Question 1
Based the given information it is discerned that the current performance of average order
processing time is reduced from 18 minutes to 72 minutes. The cost of processing an order $ 200
to $ 180. In addition to this that rate is aimed to be reduced from 10% to less than 1% and
production of average quantity of processed orders per day will be increased from 50 to 55. The
corrective action suggested for average order processing time is discerned with taking preventive
and corrective measures. This can be maintained by ensuring active measures are taken once the
mistake express. Preventive measures may include creating easy access to storage system for the
warehouse and keeping the SKU codes simple in nature. The average cost for processing an
order can be reduced by following the strategy of purchase order expense reduction. This needs
to be implemented by developing closer relations with suppliers as they will be able to automate
several processes thereby reducing the associated costs. The business needs to reduce the error

12DEVELOP AND IMPLEMENT A BUSINESS PLAN
rate by implementing techniques such as six Sigma which will aim at process improvement. This
will ensure that there is an increased emphasis on reducing defects per million opportunities and
have a clear focus on achieving quantifiable and measurable financial returns. Average number
of orders processed per day need to be improved by automating the process of order by the
implementation of software’s related to enterprise resource planning. This would be able to
integrate several domains of business such as material management, finance, sales and
distribution in real-time (Simón-Moya and Revuelto-Taboada 2016).
Answer to Question 2A
The performance and the planned objectives has been identified in terms of reducing overall
absenteeism by 3%, turnover to 8%, “long service leave liability” to $ 2 million, “annual leave
liability” to $ 1.5 million, employee engagement 85% and employee attending training sessions
to 45. Based on the interpretation of the actual result it can be clearly seen that B&A Toy
Warehouse is not able to align itself with the warehouse goals and the employees were not clear
with the objectives. It is further determined that 50% of the employees exceeded the performance
expectations which are inconsistent with the warehouse and of your results. As per the
interpretation of actual result, the absenteeism increased to 3.9%, turnover increased to 9.2%,
long service leave liability fell short with “$ 1.8 million, annual leave liability” got reduced to “$
1.2 million, employee engagement” reduced to 83%. It is further discerned that the employee
attending training sessions that are targeted as 45 by the actual employees attending training
session were only 32.
Answer to Question 2B
The failure of the communication plan is evident with only 80% of employees documenting
for the KRA’s and KPIs. The rest 20% of the employees were not aware of the performance level
expected of them. In addition to this, most of the KPIs were not listed by implementing SMART
format. Henceforth, the warehouse is not able to provide the employees with clear expectations
of what needs to be achieved and at what time frame. The significant failure in training is also
evident with only 32 employees attending the training out of the targeted employee of 45
(Rajapakshe et al. 2017).

13DEVELOP AND IMPLEMENT A BUSINESS PLAN
Answer to Question 2C
The suitability of the performance indicators for the orders processed is seen to be in an
increasing trend. Henceforth, the warehouse needs to continue to employ the current order
processing strategy for maximizing the overall order processed in a particular timeframe.
Answer to Question 3A
The recommendation for performance improvement strategies needs to be consistent with
Preventive measures such as creating easy access to storage system for the warehouse and
keeping the SKU codes simple in nature, strategy of purchase order expense reduction,
automating order processing and reduce the error rate by implementing techniques such as six
Sigma which will aim at process improvement. In addition to this, the employees need to be
made of it of the training program and its contribution to their personal KPAs (Kudaisya 2014).
Answer to Question 3B
The redefining process of performance measurement include increasing the automation
process.
Answer to Question 3C
Development Plan
Identification of
development needs
Strategy for training
and development
initiative
Training and
development
activities
Metrics to show the
value of training
Understanding of
KRA and KPIs for
each role
Conducting question
answer session,
where individual
employees will be
able to know about
their personal KRA
and KPI
Conduction of
seminar
To be indicated in the
respective KRA and
KPI form provided to
the individual
employees
Improving the
technical domain to
train and provide
Conducting physical
training session to
teach how to operate
Personal training
session
Identification of
quality of handling
the forklift

14DEVELOP AND IMPLEMENT A BUSINESS PLAN
license to the
individuals who are
willing to specialise
as forklift operators
forklifts
Reducing turnover
and absenteeism
Organizing cultural
events and providing
more provisions for
leave benefits
The employees need
to be very informed
of the events of
cultural activities and
new policies for leave
Tracking of a
monthly report to
know about the
percentage
absenteeism and
turnover (Gov.uk
2016)
Answer to Question 4 A
Developing approach for reviewing systems procedures and work methods at “B&A Toy
Warehouse”

15DEVELOP AND IMPLEMENT A BUSINESS PLAN

16DEVELOP AND IMPLEMENT A BUSINESS PLAN
Answer to Question 4B
The necessary changes in the present strategy is made with the implementation of ERP
software. This will be able to integrate and track the changes in key performance areas such as
material requirement planning, employee portal, finance, sales and distribution. In addition to
this, the automation process will not only reduce the lead-time for material requirement, reduce
holding cost but also source the best suppliers with more ease. The overall improvement plan
will also ensure that operational efficiencies attend with better employee retention policy.

17DEVELOP AND IMPLEMENT A BUSINESS PLAN
References
Beveridge, C. (2015) ‘How to write a business plan: Finances & apprendices’, Crunch, (jun).
Botha, M. and Robertson, C. L. (2014) ‘POTENTIAL ENTREPRENEURS’ ASSESSMENT OF
OPPORTUNITIES THROUGH THE RENDERING OF A BUSINESS PLAN’, SAJEMS NS,
17(3), pp. 249–265. doi: 10.1002/mrdd.20080.
Duening, T. N., Hisrich, R. D., Lechter, M. A., Duening, T. N., Hisrich, R. D. and Lechter, M. A.
(2015) Chapter 7 – Developing and Implementing the Technology Business Plan, Technology
Entrepreneurship. doi: 10.1016/B978-0-12-420175-0.00007-5.
Entrepreneur.com (2016) Elements of a business plan, www.entrepreneur.com. Available at:
http://www.entrepreneur.com/article/38308.
Featherstone, S. and Featherstone, S. (2015) ‘1 – Creating a business plan’, A Complete Course
in Canning and Related Processes, pp. 3–20. doi: 10.1016/B978-0-85709-677-7.00001-3.
gov.uk (2016) Write a Business Plan, www.gov.uk. Available at: https://www.gov.uk/write-
business-plan.
Hitt, M. A., Xu, K. and Carnes, C. M. (2016) ‘Resource based theory in operations management
research’, Journal of Operations Management, 41, pp. 77–94. doi: 10.1016/j.jom.2015.11.002.
Kudaisya, M. (2014) ‘The promise of partnership: Indian business, the state, and the Bombay
Plan of 1944’, Business History Review, pp. 97–131. doi: 10.1017/S0007680513001426.
Pauceanu, A. M. (2016) ‘Business Plan’, in Entrepreneurship in the Gulf Cooperation Council,
pp. 79–118. doi: 10.1016/B978-0-12-811288-5.00004-X.
Pauceanu, A. M. and Pauceanu, A. M. (2016) ‘Chapter 4 – Business Plan’, in Entrepreneurship
in the Gulf Cooperation Council, pp. 79–118. doi: 10.1016/B978-0-12-811288-5.00004-X.
Rajapakshe, T. K., Vakharia, A. J., Wang, L. and Yenipazarli, A. (2017) ‘Sustainable
operations’, in The Routledge Companion to Production and Operations Management, pp. 276–
290. doi: 10.4324/9781315687803.

18DEVELOP AND IMPLEMENT A BUSINESS PLAN
SBA US Small Business ADmin (2016) How to Write a Business Plan | The U.S. Small Business
Administration | SBA.gov, sba.gov/. Available at: https://www.sba.gov/starting-business/write-
your-business-plan.
Simón-Moya, V. and Revuelto-Taboada, L. (2016) ‘Revising the predictive capability of
business plan quality for new firm survival using qualitative comparative analysis’, Journal of
Business Research, 69(4), pp. 1351–1356. doi: 10.1016/j.jbusres.2015.10.106.
Snedaker, S. and Rima, C. (2014) ‘Chapter 7 - Business Continuity/Disaster Recovery Plan
Development’, Business Continuity and Disaster Recovery Planning for {IT} Professionals
(Second Edition), pp. 369–411. doi: http://dx.doi.org/10.1016/B978-0-12-410526-3.00007-6.
Thébaud, S. (2015a) ‘Business as Plan B’, Administrative Science Quarterly, 60(4), pp. 671–
711. doi: 10.1177/0001839215591627.
Thébaud, S. (2015b) ‘Business as Plan B: Institutional Foundations of Gender Inequality in
Entrepreneurship across 24 Industrialized Countries’, Administrative Science Quarterly, 60(4),
pp. 671–711. doi: 10.1177/0001839215591627.
Thomas, D. F., Gudmundson, D., Turner, K. and Suhr, D. (2014) ‘Business Plan Competitions
and Their Impact on New Ventures’ Business Models’, Journal of Strategic Innovation and
Sustainability, 10(1), pp. 34–48. Available at: http://search.proquest.com/docview/1646396004?
accountid=10755%5Cnhttp://sfx.bib-bvb.de/sfx_uben?url_ver=Z39.88-
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%3Aabiglobal&atitle=Business+Plan+Competitions+and+Their+Impact+on+New+.

19DEVELOP AND IMPLEMENT A BUSINESS PLAN
List of Appendices
START-UP COSTS Cost ($)
EQUIPMENT/CAPITAL
COSTS Cost ($)
Registrations Business purchase price $22,00,000
Business name $5,000 Franchise fees $12,00,000
Licences $7,500 Start-up capital $8,00,000
Permits $2,500 Plant & equipment
Domain names $3,100 Vehicles $12,00,000
Trade marks/designs/patents $12,000 Computer equipment $10,00,000
Vehicle registration $20,000 Computer software $90,00,000
Membership fees $12,000 Phones $3,50,000
Accountant fees $55,000 Fax machine $6,50,000
Solicitor fees $32,000 Security system $6,20,000
Rental lease cost (Rent
advance/deposit) $12,000 Office equipment
Utility connections & bonds
(Electricity, gas, water) $20,00,000 Furniture $70,00,000
Phone connection $3,000 Shop fitout $12,00,000
Internet connection $7,500
Computer software $90,00,000
Training $75,000
Wages $1,00,000
Stock/raw materials $12,00,000
Insurance
Building & contents $5,00,000
Vehicle $4,60,000
Public liability $50,000
Professional indemnity $40,000
Product liability $45,000
Workers compensation $1,00,000
Business assets $3,00,000
Business revenue $55,000
Printing $55,000
Stationery & office supplies $3,50,000
Marketing & advertising $3,70,000
Total start-up costs $1,48,71,600
Total equipment/capital
costs $2,52,20,000

20DEVELOP AND IMPLEMENT A BUSINESS PLAN
Income Statement
Particulars Year 1 Year 2 Year 3
Sales $2,20,00,000 $2,46,40,00
0
$2,78,43,20
0
Cost of goods sold $1,32,00,000 $1,42,91,20
0
$1,53,13,76
0
Gross profit $ 88,00,000 $1,03,48,80
0
$1,25,29,44
0
Gross profit % 40% 42% 45%
Expenses
Accountants fees $ 1,00,000 $
82,000
$
1,06,178
Advertising and marketing $ 2,66,000 $
1,70,000
$
1,55,000
Bank fees and charges $ 9,66,200 $
7,10,500
$
6,50,000
Bank interest $ 7,000 $
22,000
$
44,000
Credit card fees $ 6,000 $
7,000
$
12,000
Utilities (electricity, gas,
water)
$ 22,00,000 $
21,55,000
$
20,32,000
Telephone charges $ 5,763 $
2,200
$
6,900
Loan payments $ 2,00,000 $
1,70,000
$
1,55,000
Rent and rates $ 4,200 $
4,900
$
5,400
Motor vehicle expense $ 22,598
$
21,500
$
31,000
Repairs and Maintenance $ 2,810 $
3,260
$
4,130
Stationary and printing $ 8,000 $
14,000
$
16,000
Salaries - head office
employees
$ 1,40,000 $
1,40,000
$
2,08,000
Salaries- drivers
$ 1,80,000 $
1,80,000
$
2,00,000
Insurance $ 15,50,000 $
15,50,000
$
16,50,000
Superannuation $ 65,000 $
65,000
$
75,000

21DEVELOP AND IMPLEMENT A BUSINESS PLAN
Total Expenses
$ 57,23,571 $
52,97,360
$
32,17,608
Profit before taxes $ 30,76,429
$
50,51,440
$
93,11,832
Taxes paid @ 30% $ 9,22,929
$15,15,432 $27,93,550
Net Profit after tax $21,53,500
$35,36,008 $65,18,282
Profit/loss percentage 9.79% 14.35% 23.41%

22DEVELOP AND IMPLEMENT A BUSINESS PLAN
Cash Flow Statement
Particulars Jan Feb Mar Apr May June July
Aug
ust Sept Oct Nov Dec
OPENING
BALANCE
$
1,00,
000
$
6,95,
517
$
11,35
,088
$
13,03
,643
$
19,21
,705
$
22,79
,571
$
23,24
,388
$
27,93
,530
$
28,59
,739
$
32,05
,325
$
38,94
,488
$
45,38
,546
Cash
incoming
Sales
$
5,00,
000
$
6,00,
000
$
7,00,
000
$
8,00,
000
$
8,50,
000
$
9,00,
000
$
9,25,
000
$
9,60,
000
$
10,10
,000
$
10,50
,000
$
11,00
,000
$
11,20
,000
Asset sales
$
3,00,
000
$
4,50,
000
$
3,40,
000
$
3,90,
000
$
4,20,
000
$
4,80,
000
$
5,20,
000
$
4,70,
000
$
5,10,
000
$
5,40,
000
$
5,90,
000
$
6,10,
000
Debtor
receipts
$
4,00,
000
$
3,70,
000
$
3,50,
000
$
4,00,
000
$
4,10,
000
$
3,90,
000
$
3,70,
000
$
4,30,
000
$
4,10,
000
$
4,40,
000
$
3,80,
000
$
4,20,
000
Other income
$
6,00,
000
$
4,00,
000
$
4,50,
000
$
4,30,
000
$
5,10,
000
$
4,90,
000
$
3,90,
000
$
2,10,
000
$
2,30,
000
$
3,10,
000
$
3,70,
000
$
2,20,
000
Total
incoming
$
18,00
,000
$
18,20
,000
$
18,40
,000
$
20,20
,000
$
21,90
,000
$
22,60
,000
$
22,05
,000
$
20,70
,000
$
21,60
,000
$
23,40
,000
$
24,40
,000
$
23,70
,000
Cash
outgoing
Purchases
(Stock etc)
$
6,30,
000
$
8,10,
000
$
10,60
,000
$
7,80,
000
$
12,10
,000
$
15,30
,000
$
11,70
,000
$
14,90
,000
$
11,60
,000
$
11,40
,000
$
12,30
,000
$
8,20,
000
Accountant
fees
$
8,333
$
8,333
$
8,333
$
8,333
$
8,333
$
8,333
$
8,333
$
8,333
$
8,333
$
8,333
$
8,333
$
8,333
Advertising
& marketing
$
22,16
7
$
22,16
7
$
22,16
7
$
22,16
7
$
22,16
7
$
22,16
7
$
22,16
7
$
22,16
7
$
22,16
7
$
22,16
7
$
22,16
7
$
22,16
7
Bank fees &
charges
$
80,51
7
$
80,51
7
$
80,51
7
$
80,51
7
$
80,51
7
$
80,51
7
$
80,51
7
$
80,51
7
$
80,51
7
$
80,51
7
$
80,51
7
$
80,51
7
Interest paid
$
583
$
433
$
512
$
433
$
390
$
510
$
560
$
613
$
417
$
583
$
870
$
1,095
Credit card
fees
$
400
$
450
$
410
$
400
$
550
$
550
$
540
$
510
$
490
$
650
$
500
$
550
Utilities
(electricity,
gas, water)
$
1,83,
333
$
1,79,
583
$
1,69,
333
$
2,29,
550
$
2,30,
750
$
2,43,
600
$
1,75,
000
$
1,23,
000
$
2,13,
500
$
1,20,
000
$
1,75,
000
$
1,57,
350
Telephone
$
480
$
220
$
375
$
580
$
480
$
630
$
590
$
590
$
640
$
430
$
400
$
348
Lease/loan
payments
$
-
$
-
$
50,00
0
$
-
$
-
$
50,00
0
$
-
$
-
$
50,00
0
$
-
$
-
$
50,00
0
Rent & rates
$
350
$
350
$
350
$
350
$
350
$
350
$
350
$
350
$
350
$
350
$
350
$
350
Motor vehicle
expenses
$
1,883
$
1,792
$
2,583
$
3,215
$
2,160
$
1,970
$
1,345
$
1,275
$
1,600
$
1,450
$
1,600
$
1,725

23DEVELOP AND IMPLEMENT A BUSINESS PLAN
Repairs &
maintenance
$
234
$
272
$
344
$
190
$
170
$
210
$
230
$
190
$
205
$
290
$
200
$
275
Stationery &
printing
$
667
$
776
$
985
$
667
$
732
$
810
$
690
$
710
$
660
$
530
$
470
$
304
Salaries -
head office
employees
$
11,66
7
$
11,66
7
$
11,66
7
$
11,66
7
$
11,66
7
$
11,66
7
$
11,66
7
$
11,66
7
$
11,66
7
$
11,66
7
$
11,66
7
$
11,66
7
Salaries-
drivers
$
15,00
0
$
15,00
0
$
15,00
0
$
15,00
0
$
15,00
0
$
15,00
0
$
15,00
0
$
15,00
0
$
15,00
0
$
15,00
0
$
15,00
0
$
15,00
0
Insurance
$
1,29,
167
$
1,29,
167
$
1,29,
167
$
1,29,
167
$
1,29,
167
$
1,29,
167
$
1,29,
167
$
1,29,
167
$
1,29,
167
$
1,29,
167
$
1,29,
167
$
1,29,
167
Superannuati
on
$
5,417
$
5,417
$
5,417
$
5,417
$
5,417
$
5,417
$
5,417
$
5,417
$
5,417
$
5,417
$
5,417
$
5,417
Income tax
$
1,14,
286
$
1,14,
286
$
1,14,
286
$
1,14,
286
$
1,14,
286
$
1,14,
286
$
1,14,
286
$
1,14,
286
$
1,14,
286
$
1,14,
286
$
1,14,
286
$
1,14,
286
Total
outgoing
$
12,04
,483
$
13,80
,428
$
16,71
,446
$
14,01
,937
$
18,32
,135
$
22,15
,183
$
17,35
,858
$
20,03
,791
$
18,14
,415
$
16,50
,836
$
17,95
,943
$
14,18
,550
Monthly cash
balance
$
5,95,
517
$
4,39,
572
$
1,68,
554
$
6,18,
063
$
3,57,
865
$
44,81
7
$
4,69,
142
$
66,20
9
$
3,45,
585
$
6,89,
164
$
6,44,
057
$
9,51,
450
CLOSING
BALANCE
$
6,95,
517
$
11,35
,088
$
13,03
,643
$
19,21
,705
$
22,79
,571
$
23,24
,388
$
27,93
,530
$
28,59
,739
$
32,05
,325
$
38,94
,488
$
45,38
,546
$
54,89
,996
BALANCE SHEET
FORECAST
[Year 1] [Year 2] [Year 3]
Current assets
Cash $54,89,996 $42,31,000 $35,32,500
Petty cash $25,000 $32,000 $29,000
Inventory $11,00,000 $19,00,000 $15,00,000
Pre-paid expenses $36,000 $23,000 $21,000
Fixed assets
Leasehold $70,00,000 $65,00,000 $65,00,000
Property & land $11,00,000 $9,95,000 $10,05,000
Renovations/
improvements $15,00,000 $5,00,000 $7,50,000
Furniture & fitout $65,00,000 $85,00,000 $75,00,000
Vehicles $12,65,334 $25,87,000 $22,10,500
Equipment/tools $15,12,170 $12,00,500 $11,00,000
Computer equipment $11,17,500 $11,17,500 $10,00,000

24DEVELOP AND IMPLEMENT A BUSINESS PLAN
Total assets $2,66,46,000 $2,75,86,000 $2,51,48,000
Current/short-term
liabilities
Credit cards payable $3,20,000 $3,80,000 $3,10,000
Accounts payable $2,21,20,000 $2,02,00,000 $1,91,00,000
Interest payable $19,000 $14,000 $16,000
Accrued wages $45,000 $52,000 $51,000
Income tax $4,50,000 $4,10,000 $3,90,000
Long-term liabilities
Loans $11,32,000 $14,00,000 $9,00,000
Total liabilities $2,40,86,000 $2,24,56,000 $2,07,67,000
NET ASSETS $25,60,000 $51,30,000 $43,81,000
Break -even analysis
Timeframe (e.g. monthly/yearly)
Average price of each product/service sold $1,400.00
Average cost of each product/service to
make/deliver $900.00
Fixed costs for the month/year $2,10,000.00
Percentage of price that is profit $0.36
Total sales needed to break-even $5,88,000.00
Number of units sold needed to break-even 420