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The Thousand Rand Challenge Business Plan Template

This document provides a template of headings for presenting any business idea. The objective is to produce a step-by-step tool that illustrates every step of the business creation process. It

should be possible, by following the information, to produce a viable business.

All text in italics should be deleted (including these introductory paragraphs) for use as a template on newly created business idea pages. Please ensure that the new page you're creating really

is a new idea. Check the front page for a current list of businesses, or perform a search.

This heading area should contain a brief outline of the nature of the business - change the heading at the top to list the type of business - e.g. Fish and Chips Frying

Contents

Description of the businessWithin each sub-heading are a series of questions that require detailed answers. Simply fill in your commentary beneath the headings. Note that these headings and the methodology are here,

partly to be pedantic, but mostly to ensure a consistent approach across a number of unrelated businesses. It makes searching for information far easier if you know where to start.

What exactly is it that is going to be sold or done?

I am going to sell fruits and vegetables:

Apples

Oranges

Papaya

Water melon

Plantain

Pineapple

Bananas

Tamatos

Potatoes

Green peppers

Red peppers

onions

carrots

Cabbage

Cucumber, etc

What skills are needed to do this? Where is this taught and how much will it cost?

Costing and pricing skills as well as communication skills

Interpersonal skills so as to deal with customers, the client has those skills through hyhyh

What tools or equipment are needed? Where can they be bought, and how much will they cost?

Shelter R300 hardware store

table own

chair own

shelves own

Sail & poles R200

How much space is needed to work from?

Only a large area

Where will the space be found, and how much will it cost to rent?

will sell from my home and from a street corner. Will not cost anything

She will sell from her home and she will not be paying any rent.

What sort of people will buy the product? Who are they and where do they live?

People with low income and everybody else from the location she lives in.

The people of the community

How much and how often will they buy? Will they come to the shop or will it be necessary to deliver?

People will come and buy everyday

will come to me

Fruit and vegetable retailer

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Upstream BusinessesA list of businesses and ideas that provide the services and products that this business needs.

Cold storage

Fruit & vege City

Vegetable Farms

Downstream BusinessesA list of businesses and ideas that this business could provide products for.

CompetitorsWhat major competitors will attract clients' spending away from the business' products?

Fruit and vet stalls in the centre of Saldanha. Diazville no competitors Street Hawkers

What prices and products do these companies have?

Apples R5 kg

Oranges R8 a bag

Pears R4.99 per kg

Babanas R3.99 kg

Potatoes R40 bag

onions R8.00 kg

carrots R7 bag

What makes them popular / unpopular?

Their fruit and vegetables are not always fresh

What do they do to attract customers? Specials? Interesting marketing / advertising?

Specials on their products

notice boards

Which of the competitors stand out as being particularly good at what they do?

no one

What can be done to stand out against them? What can be done that is more exciting / more interesting?

Will be friendly to people

Try to have fresh products at low prices

She will have a clean stall, have something to chase away the flies to keep the place clean.

She will always keep clean water around.

Competitive prices

Marketing the business to clientsWhat sort of people will buy the products and how important is product consistency to them (e.g. must every loaf of bread be identical)?

all the people of my local community

Clients always want fresh, good looking products

Sick people

People who are health concious and/or on a diet

How seasonal or fashion-dependent are their buying habits (do they buy only in summer, only over Christmas, etc.)?

Some fruit and vegetables seasonal

Do the clients want the products to be the cheapest or the best (low price / low quality or high price / high quality)?

Clients buy high quality at the lowest possible price

How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest?

Other clients will tell them about products

a sign board and good look display will attrack them

Do the clients want the same things sold in the same way, or do they want things to change all the time?

in season the same

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What can be done to attract the first clients (the most important and most difficult to get)? How much will it cost?

stand at the street corner and display my products to them

The business inputs and outputsList all of the inputs (products that are required to produce the products):

Fruit and vegetables

List all the suppliers for the inputs and their addresses, telephone numbers, and sales terms (cash, 30 days, etc.):

Local farmers Fruit and Vegetable city Vegas Vredenburg

Clear plasstic bags for parkaging

List all of your outputs (products created by your business):

Apples

Oranges

Pears

Babanas

Tamatos

Potatoes

onions

carrots

Peach

What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)?

Apples R4.99 kg profit R1.50

Oranges R5.00 a bag profit R1.50

Pears R8.00 kg profit R2.30

Babanas R5.00 kg profit R1.00

Potatoes R30 a bag profit R7.00

onions R6.50 kg profit R2.00

carrots R6.00 bag profit R1.80

Do the outputs have a shelf-life? Must they be sold within a specified time limit before they go off / can't be sold? Which ones?

Most will be fresh for 1 week

Setting up the businessList everything that needs to be done to prepare the business to be ready (list everything needed to have as well, both equipment and stock):

Get a table, chairs etc and go to supplier and buy stock

How long will it take to get all of these things and how much will they cost to get?

1 day to a week. Transport R100 Stock R500

List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages):

Telephone R100

Transport R200

Salary R1200

Total amount for fixed costs: R________1500_______

How many staff will be needed and how much will each of them be paid (wages must be included in the fixed costs above)?

later on one worker (R50)

The client will work on her own

What training will they need, how long will it take and how much will it cost?

no training required

The manufacturing or production processList every step, from start to finish, to produce the product

Buy stock

Check stock

Price stock

Put them on shelves

sell it to client

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Write & put up notice boards

inform target ,market about the business

Buy poles & Canvas

Allocate each of the manufacturing steps to a process and a process to a staff member (e.g. all manufacturing steps A to process 1):

Me and my husband will do everything

What possible problems may happen during each step of the manufacturing process?

can buy fruit and vegetables that look good but are not good quality

What solutions can be identified for these problems? How much will they cost and how long will they take to fix?

Inspect products before paying for it

What is the maintenance program for all the equipment?

n/a

What safety requirements are important for production?

n/a

How will quality control and client feedback be handled?

must buy good quality products

if client complains same day refund

Costing and bookkeepingHow many of each of the stock items can reasonably be sold each day (and month)?

Oranges 14 bags per day 280 per month

Pears 20 bags per day 400 per month

Potatoes 14 bags per day 280 per month

onions 20 bags per day 400 per month

carrots 10 bags per day 200 per month

Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)?

all fruit and vegetables not always available

but there will be always something to sell

What sort of pricing strategy will be chosen (cheapest or best)?

Best price my clients can afford

What profit margin will be chosen for the products

40%

Write down the cost prices plus the margin for each stock item you will sell, and the selling price

Apples R2.50 kg profit R1.50

Oranges R3.50 a bag profit R1.50

Pears R5.70 kg profit R2.30

Babanas R4.00 kg profit R1.00

Potatoes R23 a bag profit R7.00

onions R4.50 kg profit R2.00

carrots R4.20 bag profit R1.80

Is this competitive? Will customers pay this much? Do the margins need to be adjusted? By how much?

Yes

Now, set a target. How many items for each product need to be sold on a daily (and monthly) basis to be profitable?

Per week

10 bags potatoes

20 bags onions

30 bags oranges

10 kg pears

10 bags carrots

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Categories: Add category

Set out the products, costs, margins and selling prices:

Item Daily Target Monthly Target Cost Price Margin Selling Price Total per Month

Oranges 14

X x 20 number of

work ing days in a

month

R 3.50 R 1.50 R 3.50 + R 1.50= monthly target x selling

price

What trends are included in the projections?

sales will be always more or less stable

Running the businessWhat is the process for running the business on a typical day? Who will be responsible for each step? Link this back to the production process.

Will start 7H00 with my stall (neatly pack shelves) and sell until 6H00

Who will act as backup should the person responsible not be there? What do they need to act as backup?

My son

What weekly processes need to be performed? Who is responsible, who is backup and what tools are required?

Buy stock on a weekly, daily basis

What monthly processes need to be performed? Who is responsible, who is backup and what tools are required?

Pay all the fixed expenses

What is the schedule for training and motivating staff?

commission on sales

What processes are required for maintenance and new product creation? Who is responsible and what tools do they need?

If clients ask for somtthing new I will try to get it for the client

Before beginningList some of the support services available (legal, business and other) that might be needed

WCBDC Red Door

What major laws concern the business, and which government departments should be called to keep up to date (list phone numbers)?

Related articlesInsert links to articles on Wik ipedia or other Wik is that may be useful (such as recipes, legal discussions, accounting articles, and so on)

External linksList links to outside websites that may be useful for anyone starting this business

Business TrialsList your name if you started a business based on this plan, where you started the business, and how you did Links to case histories - you are welcome to develop these and insert them in

your personal page (create this by developing a personal profile)

Polliena Louis PNF & V Store

Roleen Cornelissen M &R Busy Corner

Julia Mahluka Vuku-zenzele Julia Fruit and Vegs

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