AIM: This exercise aims to introduce you to the key steps in business planning and budgeting.

Please note: For this assessment task, you may use standard editing and referencing software, but not Generative AI. You are permitted to use the full capabilities of the standard software to answer the question (e.g. you may wish to specify particular software such as Microsoft Office suite, Grammarly,

etc.).

If the use of generative AI such as ChatGPT is detected, it will be regarded as serious academic misconduct and subject to the standard penalties, which may include 00FL, suspension and exclusion.

REQUIREMENTS:

You are required to create a brief business plan of an imaginary company that you intend to open in the future.

Steps in business planning process

•    Develop an idea for your business

•    Do your research (customers, competitors, legal requirements)

•    Write a business plan (includes timetable, funding sources, marketing plan)

•    Evaluate the business plan

•    Obtain the relevant materials/supplies/products etc.

•    Implement your marketing plan

•    Start the production/service

•    Make an Annual Report and Annual Accounts

•    Make an evaluation and plan future development

Your assignment should consider the following key areas. (note, your budget should be the main part of your assignment);

1. Develop an idea for your business and a brief profile of your business

The business profile describes your business, including its name, location and purpose/vision. It often also includes information about the business owners, such as their expertise, experience and education,

and the vision of the business which will underpin the successful operation of the business. Summarise:

• What’s the name of your business?

• What does your business do?

• What is your vision?

Examples of vision statements

• 'There will be a personal computer on every desk running Microsoft software.' (Microsoft's original vision statement)

• 'Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.' (Amazon.com)

• 'To build a community of coffee lovers in Sydney, by serving the best coffee at the best possible prices.' (local café)

•'Our salon will change the way you think about a haircut, and leave you glowing both inside and out.' (local hairdresser)

2. Products or services and market analysis

The product or service and market analysis identifies, describes and analyses the products and services you offer, your target market, your market share and your competitors. Use this analysis to make        decisions about pricing products and services and the location of your business.

You must provide a quantitative description of the size of the opportunity for your business You must answer the following questions:

• Who are your customers?

• Who are your competitors

• What is your point of differentiation? (what makes you better than your competitors?)

• What is the size of your revenue opportunity? / how much sales can you expect to generate? What is your break-even point?

Eg. if you plan to launch a new mobile phone, your opportunity estimate could look like this:

o There are around 30 million mobile phone subscribers in Australia

o Customers in year 1: 0.5% x 30,000,000 = 150,000 customers

o Price per mobile sold: $390

o Estimated revenue in year 1: $390 x 150,000 customers = $58,500,000

Note: You should use the sizing of your revenue opportunity to develop your budget (see 3 below).

3. Cash Budget

Your cash flow is the money you have coming in from revenue and going out for expenses. Good cash flow management will ensure you always have money available to pay your expenses when they are due. Use this analysis to develop the planned total sale and the planned total expenses for the next 6-12 months.

Consider the following questions:

• What resources do you need to run your business (e.g. staff, material, marketing, production equipment)

• How much will the resources cost?

• How much equity will be invested into the business?

• Are you cash flow positive in all months?

• If not, how will you cover the short fall?

Task: Use the following Cash Budget template to complete a Budget for a 6 or 12 month period:

Formatting Requirements

Please pay careful attention to the following formatting requirements:

▪ Length of this report is maximum 8 pages, excluding bibliography, and appendices. Your report       should include an Introduction and Conclusion (as well as any footnotes used) within the page limit;    however an Executive Summary is not required. Please note that any writing in excess of the page limit will not be marked.

▪ All case studies must be word-processed and presented in a formal report format. Font size must be  at least 12 (in Times New Roman) with spacing of one-and-a-half lines or greater. Footnotes should use font size 10 and single line spacing. Margins on all sides must be 2cm or greater. Please note that content which does not adhere to these formatting guidelines – and consequently exceeds the 8 page   limit – will not be marked.

▪ Tables and diagrams should be used, where possible, to display information in a clear and cogent     manner. Tables and diagrams must use a font size of at least 12 (in Times New Roman) also but may use one line or greater spacing. Ensure supporting text is provided to contextualise tabular content. This will improve presentation and make it easier to stay within the page limit.

▪ Your Assignment should include a bibliography identifying the reference sources you used. A system of in-text referencing is to be used. In particular, any text or material taken directly from reference       material must be referenced with quotation marks and include the author’s name, year of publication   and page numbers in brackets. Failure to do so will result in the deduction of marks. Footnotes should be reserved for points of clarification only.

▪ Appendices should be used for the following purposes only: i) list of major assumptions (if any); and

ii) list of calculations and formulae (if any). Content required to address the Assignment requirements that is presented in the appendices will not be marked.

▪ Please note: Marks will be deducted for failure to comply with these formatting requirements. You should consult your Seminar Leader ifyou are unsure about any of the requirements and allow      sufficient time to comply with them