Produce a Successful Business Plan (US 119670 & 119669 & 119666)

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US 119670:

Learners working towards this standard will be learning towards the full qualification or will be working within a SMME (Small, Medium, Micro Enterprise) environment, specialising in New Venture Ownership and Management, where the acquisition of competence against this standard will add value to one’s job. This standard will also add value to entrepreneurs who are seeking to develop their entrepreneurial skills so that they can become more marketable for bigger contracts, including commercial and public sector contracts, for example, the Department of Public Works programmes.

 

Table of Contents

Programme Overview.. 6

Programme entry level requirements. 7

Programme Outcomes. 7

Assessment 8

Learning map (delivery structure) 10

Learner Support 10

Module 1 Understand the elements of a business plan.. 11

Understand the elements of a business plan.. 12

1.1 Explain a business plan in terms of business, financial, marketing and operations plans. 17

The five main areas of a business plan. 17

1.1.1 Understand the planning cycle to create the business plan of your new venture. 18

1.1.2 Apply the planning cycle to each of the four main areas of the business plan. 19

The marketing plan. 19

The Operational plan. 20

Staffing plan. 21

Financial plan. 22

The principles of researching and compiling a business plan. 22

1.2 Identify and explain the codes of ethics pertaining to a business plan. 24

1.3 Explain the business plan for the purpose of a management tool for a new venture. 29

1.4 Explain the business plan for the purpose of funding a new venture. 30

Class Activity 1: Identify the elements of a business plan. 30

Module 2 Match new venture opportunity to market needs. 31

Match new venture opportunity to market needs. 32

2.1 What marketing is in relation to new venture opportunities. 32

The principles and skills of marketing. 32

2.1.1 Describe the concept of a market including the four P’s of marketing. 33

Product 33

Price. 34

Place. 37

Promotion. 37

2.1.2 Describe a market in relation to supply, demand and pricing. 39

2.1.3 Explain the importance of the value addition of a proposed business in relation in relation to the market 40

2.1.4 Explain factors that influence markets in the context of proposed business venture. 40

2.1.5 Identify and explain differentiations between product and service marketing. 42

Geographic Factors. 43

Demographic Factors. 44

2.2 Explore the product/service life cycle. 45

2.2.1 Identify and explain growth opportunities for new venture. 46

2.2.2 Monitor trends and developments in relation to product/service. 47

2.2.3 Make plans to ensure that the business venture is aligned to the product / service life cycle. 47

2.3 Identify market segments in relation to own new venture opportunity. 47

2.3.1 Analyse own product/service requirements in relation to the identified target market 48

2.3.2 Segment customers according to business goals. 49

2.3.3 Identify and analyse the competition to determine the threats they may present 50

2.3.4 Identify and explain the changes that may be required to increase competitiveness of new venture in accordance with competitor analysis and market research. 51

2.4 Conduct market research. 52

2.4.1 Explain the importance of market research in relation to proposed new venture. 52

Basic principles and techniques for conducting market research. 53

2.4.2 Identify and explain market research techniques in context of proposed new venture. 54

Using questionnaires. 55

Using sampling. 56

2.4.3 Identify market research tools and utilised to determine viability of new venture. 56

2.4.4 Utilise market research findings to determine viability of new venture. 57

2.5 Incorporate market research into a marketing plan. 57

The basic principles for compiling a marketing plan and how this forms part of an overall business plan. 58

2.5.1 Create a marketing plan for own new venture. 59

2.5.2 Outline and implement action goals with timeframes to implement the marketing plan. 63

2.5.3 Evaluate the success of marketing plan. 63

2.5.4 Explain and implement reasons and methods for evaluating and modifying marketing plan in the context of market research results  64

Class Activity 2: Match new venture opportunities to market trends. 65

Module 3 Determine financial requirements of a new venture.. 66

Determine financial requirements of a new venture. 67

3.1 Identify and explain legal business types (business ownership) for new ventures. 67

Sole proprietor / Sole trader 67

Partnership. 68

Close Corporations. 69

Companies. 71

Private Company. 71

Public company. 72

3.2 Explain legal registrations and any legislative compliance in relation to a new venture. 74

3.2.1 Legal compliances affecting new ventures. 74

Value Added Tax (VAT) 75

Standard Income Tax on Employees (SITE) 77

Pay As You Earn (PAYE) 77

Skills Development Levy (SDL) 78

3.3 Determine the financial and cash flow requirements of a new venture. 78

3.3.1 The importance of finances as part of a business plan. 79

How financial plans fit into a business plan. 79

3.3.2 Financial and cash flow requirements for a new venture. 80

Start-up costs. 80

Running costs. 81

Capital investment costs for growth of business. 81

Staff costs. 81

The basic principles of compiling financial plans. 81

Skills of financial and cash flow planning. 83

Techniques for compiling cash flow forecasts: Drawing up a cash flow statement 83

Analysing the cash flow statement 86

3.3.3 The relationship between ‘cash flow’ and ‘profit’ 87

3.3.4 The concept of profit and loss in relation to the financial requirements of a new venture. 88

Skills for determining profit and loss in own business context 88

Draw up Statement of Comprehensive Income (income statement) / profit and loss account 88

3.3.5 The concept of profit and loss in relation to the market needs of a new venture. 94

Roles of profit in a market economy. 94

3.3.6 The concepts of start-up capital and working capital in relation to own business. 95

Start-up capital 95

Working capital 95

The principles of generating start-up capital and working capital for a new venture. 96

3.3.7 Determine start-up requirements and costs according to financial capacity and resources. 98

3.3.8 The concept of assets and liabilities that relate to own business venture. 99

Assets. 99

Liabilities. 99

Class Activity 3: Determine the financial and cash flow requirements of a new venture. 101

3.4 Determine income and expenditure of new venture. 101

3.4.1 The concept of budgeting. 101

How budgets apply to new ventures. 101

3.4.2 Budget income according to market research and business growth opportunities. 102

3.4.3 Determine expenditure of new venture. 104

Identify fixed and variable costs within own business context 104

3.4.4 Compile a budget 105

The basic principles of compiling budgets. 105

Compiling a budget 106

3.4.5 Methods for managing and controlling a budget 107

Basic budget management principles. 107

Class Activity 4: Determine income and expenditure of new venture. 108

3.5 Implement pricing and costing principles. 109

The principles of pricing and costing. 109

3.5.1 Costing principles in relation to trading, retailing, manufacturing and services ventures. 109

3.5.2 Identify the factors that influence pricing. 110

The techniques for pricing and costing. 111

3.5.3 Utilise mark-up in relation to own new venture. 113

The impact of cost of sales on gross profit 114

3.5.4 Identify breakeven points for pricing purposes. 115

Evaluate breakeven points to determine how much business must be executed to ensure breakeven. 116

3.5.5 Revise budgets according to pricing determinations. 117

Class Activity 5: Implement pricing and costing principles. 117

3.6 Identify resources to obtain start-up capital 117

Techniques for researching funding resources. 118

3.6.1 Identify the various resources required for starting a new venture. 121

Evaluate resources required according to financial capacity. 122

3.6.2 Identify funding options and services offered by the finance industry for new ventures. 123

Borrowing from the bank. 123

Entrepreneur funds. 125

3.6.3 Explain the risks associated with funding. 128

3.6.4 Explore alternatives to funding options to ensure that all options are considered. 129

Evaluate each funding alternative. 132

3.6.5 Compare the costs of the various funding options to determine suitability for own venture’s business structure  134

3.6.6 Explore repayment options. 135

3.6.7 Information needed to process funding applications. 135

Class Activity 6: Identify resources to obtain start-up capital 144

Module 4 Prepare to produce a business plan for a new venture.. 145

Prepare to produce a business plan for a new venture. 146

4.1 Compile an organisation structure for your own business. 146

Hierarchy. 148

4.1.1 Draw up a business organogram for own business. 151

4.1.2 Describe the broad functions required to effectively complete business activities according to overall business goals  153

4.1.3 Designate lines of authority and responsibility in relation to organogram.. 154

4.1.4 Determine any relevant human resources needs accordingly. 154

Class Activity 7: Compile an organisation structure for your own business. 156

4.2 Identify resources and information required to complete own business plan. 156

4.2.1 Identify coaches/mentors to assist in compiling business plan. 156

4.2.2 Compile information on the resources needed and procedures to be followed to achieve the plan in order to effectively execute business plan. 156

4.2.3 Decide upon the type of business ownership and complete registration accordingly. 159

Completing registration for the business. 160

4.2.4 Identify and explain the industry specific and legal requirements for own venture in terms of how they will affect the venture  160

4.2.5 Gather all relevant information for the completion of the business plan. 162

Class Activity 8: Identify resources and information required to complete own business plan. 163

Module 5 Compile a business plan.. 164

Compile a business plan.. 165

5.1 Design the structure and layout of the business plan. 165

Sales and Marketing Strategy. 172

Financial Statements and Projections. 173

Legal and Regulatory Environment 174

SWOT Analysis and risk/reward assessment 174

Appendices and Supporting Documentation. 174

5.2 Outline a vision statement that represents the goals and objectives of the new venture. 175

What does it mean to have a vision statement?. 176

5.3 Identify business and operational goals and outline procedures for the effective implementation thereof in the business plan. 176

Setting Objectives. 177

How to set business goals and objectives. 178

Developing the Action Plan. 179

5.4 Include legal registrations and any legislative compliance in relation to new venture in the business plan  179

5.5 Include an outline of how the business will operate and achieve marketing and financial objectives in business plan  179

5.5.1 Include a marketing plan in the business plan. 181

5.5.2 Include a cash flow plan in the business plan. 183

Class Activity 9: Compile a business plan. 184

Reflection. 184

Facilitator Observation Checklist 184

Summative Assessment. 185

Knowledge Questions. 185

Practical Activities. 185

Witness Testimony. 185

Logbook. 185

References and Further Reading.. 186

Unit Standard details. 187

  1. 119669. 187
  2. 119666. 193
  3. 119670. 199

US 119669:

Learners working towards this standard will be learning towards the full qualification, or will be working within a SMME (Small, Medium, Micro Enterprise) environment, specialising in New Venture Ownership and Management, where the acquisition of competence against this standard will add value to one’s job. This standard will also add value to entrepreneurs who are seeking to develop their entrepreneurial skills so that they can become more marketable for bigger contracts, including commercial and public sector contracts, for example the Department of Public Works programmes.

 

US 119666:

Learners working towards this standard will be learning towards the full qualification, or will be working within a SMME (Small, Medium, Micro Enterprise) environment, specialising in New Venture Ownership and Management, where the acquisition of competence against this standard will add value to one’s job. This standard will also add value to entrepreneurs who are seeking to develop their entrepreneurial skills so that they can become more marketable for bigger contracts, including commercial and public sector contracts, for example the Department of Public Works programmes.

 

Description

US 119670:

The qualifying learner is capable of:

  • Identifying and demonstrating an understanding of the elements of a business plan
  • Compiling an organisation structure for one’s own business to determine how a business plan can best be integrated
  • Identifying resources and information required to complete own business plan
  • Compiling a business plan

US 119669:

The qualifying learner is capable of:

  • Identifying and describing what marketing is in relation to new venture opportunities.
  • Conducting market research.
  • Identifying market segments in relation to own venture opportunity.
  • Incorporating market research into a marketing plan.
  • Exploring product/service life cycle.

 

US 119666:

The qualifying learner is capable of:

  • Determining the financial and cash flow requirements of a new venture
  • Determining income and expenditure of a new venture
  • Implementing pricing and costing principles
  • Identifying resources to obtain start-up capital

 

 

 

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