Business Plan Report: JORDAN ENTERPRISE - Melbourne, Australia

The assignment presents a detailed business plan for JORDAN ENTERPRISE, a proposed sole proprietorship in Melbourne, Australia, offering household commodities. The plan encompasses a business summary, market analysis, future projections, and financial details. It outlines the business's structure, management, and key personnel, along with product offerings and innovative strategies. The market section includes research, target identification, and a SWOT analysis. Financial aspects cover startup costs, balance sheet forecasts, profit and loss projections, and cash flow analysis. The plan also addresses risk management, legal considerations, and operational strategies, including a sustainability plan. The business aims to secure funding from savings, family contributions, and bank loans, with a focus on providing quality goods, competitive pricing, and innovative service delivery to achieve market success.

Business Plan
Term Paper
January, 29th 2018
3500 words
Student name
University

TABLE OF CONTENTS
BUSINESS PLAN SUMMARY.....................................................................................................4
The Business..............................................................................................................................4
The Market................................................................................................................................4
The Future.................................................................................................................................5
The Finance...............................................................................................................................5
Business Details.........................................................................................................................5
Business Premises.....................................................................................................................6
Registration Details..................................................................................................................7
Organization Chat....................................................................................................................7
Management and Ownership...................................................................................................8
Key Personnel...........................................................................................................................8
Products/ Services.....................................................................................................................9
Innovations..............................................................................................................................10
Insurance.................................................................................................................................11
Risk Management...................................................................................................................11
Legal considerations...............................................................................................................11
Operations...............................................................................................................................11
Sustainability Plan..................................................................................................................12
THE MARKET............................................................................................................................13
Market Research.....................................................................................................................13
Market Targets.......................................................................................................................13
Environment...........................................................................................................................14
Customers................................................................................................................................14
SWOT analysis........................................................................................................................14
Competition.............................................................................................................................16
THE FUTURE..............................................................................................................................17
Vision statement......................................................................................................................17
Mission statement...................................................................................................................17
Goals and objectives...............................................................................................................17
Action plan..............................................................................................................................18
THE FINANCES..........................................................................................................................18
2

Key objectives and financial review......................................................................................18
Assumptions............................................................................................................................24
Startup cost.............................................................................................................................24
Balance sheet forecast.............................................................................................................25
Profit and loss forecast...........................................................................................................26
Expected cash flow..................................................................................................................27
Breakeven analysis..................................................................................................................27
SUPPORTING DOCUMENTATION..........................................................................................30
Works cited...............................................................................................................................31
3

BUSINESS PLAN SUMMARY
This is a draw of the proposal business in conclusion. This summary involves business
description, the marketing plans, organization and management and financial plan.
The Business
JORDAN ENTERPRISE is established to offer commodities which are generally
household in Melbourne Australia. These include; tea leaves, soap, wheat flour bread,
cooking fat and many other. It is a sole proprietorship Form of business and Steve
Johnson is the owner.
The business is expected to grow quickly due to availability of steady customers, good
transport and communication network and availability of raw materials within Melbourne
Australia.1
The Market
The major people constituting the market to the proposed business are individual persons,
institutions and Australian government agents.
The business has laid the strategies including sales, promotion, advertisement and
discounts which will help it to compete well in the Australian market.
The following will form the organizational structure of the business and will also have to
attain the entire necessary document like licenses and permits in order to meet legal
requirement. With the help of Australian Business License and Information Services
(ABLIS), the business will ensure that it obtains all the required documents. 2
1 Banks, William. "Make it or die: The secret behind big business today." Harvard
Business Review 6 (2015): 36-71.
2 Banks, William. "Make it or die: The secret behind big business today." Harvard
Business Review 6 (2015): 36-71.
4

The Future
Now and in the future, the business aims at providing high quality good and services with
good packaging and clean environment.
The business also aims at reducing costs of operation and offer fair prices for
commodities and services provided. The policies and regulations are likely to be
government policies and health policies.
The Finance
Jordan Enterprise will be financed by the following, finance from owner’s savings,
contribution from family members and loan from banks. The amount of capital required
by the business at start-up amount is AUD.150, 000.
AUD. 100,000 is to be obtained from proposal savings AUD 20,000 from family
member’s contribution and AUD.30, 000 is to be borrowed from bank loan board as a
long term loan.3
THE BUSINESS
The business will be established just like any other business basically with an intention of
investing back profit. JORDAN ENTERPRISE has the potential of meeting the
expectation and satisfaction of its customers’ needs. The profit from the business will be
used for the expansion of the business.
Business Details
The business name is JORDAN ENTERPRISE which is easy to pronounce and to
remember.
The business shall be identified by a logo shown below.
3 Banks, William. "Make it or die: The secret behind big business today." Harvard
Business Review 6 (2015): 36-71.
5

Business Premises
The intended business will be located in Melbourne city, South Melbourne next to South
Melbourne Market.
The business will start its operation from January 2019 from the proposed site.
South Melbourne Market
Jordan enterprise
The business layout will be as follows:
6
COME AGAIN
JORDAN
ENTERPRISE
THE BEST
TO

Registration Details
The business will operate under the postal address
JORDAN ENTERPRISE
P.O.BOX 325-3000
MELBOURNE AUSTRALIA.
EMAIL: [e-mail]
Organization Chat
The business will be run by a team of professionals who will be responsible for decision
making within the business. The organization chart will include the following people at
the beginning of the business.
The manager
Assistant manager
Financial officer
Operations officer
7
Security officer
ShelvesShelves Shelves
Cashier MANAGER

Head of security
Transport officer
Cashiers
Sale representatives
Cleaners
The owner of the business will manage the business and will recruit other staffs.
The structure below shows the organizational structure of the business;
Management and Ownership
The business will be owned by Steve Johnson who will be a holder of certificate in sales
and marketing. He will also be responsible for the management of the business.
Key Personnel
JORDAN ENTERPRISE will be operated by Steve Johnson who will be 22 years old.
The owner is a holder of certificate in sales and marketing. A part from this he has
intensively studied in rental shops from Melbourne small business enterprise.
He has knowledge in front office management and retail shop management.4
4 Otto, Harkins Dedogo. How to start a business and succeed in the information age
.Walnut Creek, CA: Alta Mira Press, 2015.
8
Manager
CashierDistribution agent
Security officerCleaner

In addition the owner has one year experience and has faced challenges in managing
other people’s business which made have second thought. The manager of the proposed
business is to be the owner himself.
His duties shall be;
 Hiring and firing employees,
 Manage business activities,
 Manage the management information system,
 He is the final decision maker.
Products/ Services
The business will be dealing with household products. The business will be concerned
with selling of items to the general community. The size of the business will be small at
the beginning with promotion and advertisement then the size will increase after 2 years.
Some of the products and their corresponding prices are as listed below.
Item AUD (Price)
Table salt 20 per kg
Washing Powder 200 per kg
Exercise book 20 per kg 80 pages
Bread 30
Maize flour 85 per kg
Wheat flour 100 per kg
Soap 60 per bar
Sugar 100 per kg
9

Tea leaves 150 per kg
Pen 20
Cooking fat 130 per kg
coffee 300 per kg
The business falls under service industry which contributes significantly to the Gross
Domestic Product of Australia.
The business is bound to succeed because of the following factors.
 The business will provide goods with fair competitive price.
 The location of the business will be friendly and attractive.
 The business will be fed with improved transport and communication network
which will boost the prospect of the business.
Innovations
The business will carry out innovative ways of offering the best platform for service
delivery. The long term goals set by the business in order to realize its innovative goals
will include:
 Expansion of the business
 Establishing other branches in other areas.
 Creation of job opportunities
 To buy a motor vehicle for transportation of goods for regular customers within
and outside the area.
The business aims to achieve the following short term goals as well in its innovative area.
- To have proper management
10

- To offer better and quality services to the customers
Insurance
The business will seek for an insurance cover for both its goods and employees. This will
help cushion the business from losses just in case an accident occurs. The business will
seek insurance from the following ABODE CAPITAL in Australia.
Risk Management
In order to avoid risks, the business will use various risk treatment methods such as risk
transfer by hiring law firms within Australia to handle all its legal issues. The business
will also make sure that it avoids venturing into the sale of products that do not move
quickly in order to avoid being caught up in risky financial conditions.
List of potential risks (in order of likelihood) that could impact the business
Risk Likelihood Impact Strategy
Poor management Unlikely High Employ qualified staff
only
Insufficient funding Likely, Medium Seek for loans from
various institutions
Accidents within the
premises
Unlikely Low Ensure that employees are
trained on how to handle
machines within the
premises
Electric faults Unlikely Low Hire qualified technicians
to handle power
department
Legal considerations
The business will hire a group of lawyers on a permanent basis to run its legal operations
from time to time. This will not conflict with the functions of the hired law firms. This
will give a proper safeguard in terms of legal requirements.
Operations
11

The business requires a starting capital of 150,000 which will be obtained as follows.
Personal saving AUD 10,000
Parents and well wishers AUD 20,000
Loan from Bank AUD 30,000
Total AUD 150,000
In total the beginning, the owner intends to use the money as follows.
Task AUD
Registration
License
Electricity
Water metre
Advertisement and promotion
Telephone connection
Stock
Miscellaneous
3000
6000
2000
20,000
16,000
2000
100,000
1000
Total 150,000
Sustainability Plan
The opportunity will be taken due to
-High population of the customers
The proprietor has knowledge and skills towards the intended business
- Improved infrastructure
- Availability of good communication and transport system.
12