Analyse the strengths and weaknesses each business plan

Submit this document with any required evidence attached. See specifications below for details.

You must submit a printed copy of your answers.

Procedure

Business Plan 1:
1.Read the business plan ‘Quality Training’ (see Appendix 1).

Business Plan 2:
1.Choose a business plan from the following website:
a.Bplans.com, 2010, ‘Free sample business plans’,
<http://www.bplans.com/sample_business_plans.cfm>.

Deliverable specifications
●Submit two completed reports (approx.500 words each), analysing the strengths and weaknesses of two separate business plans.

Quality specifications
●Each report should be properly formatted and logically structured.

○Was the document well set out, easily understood and pitched at an appropriate level for the reader?

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1.0 Executive summary

Quality Training has been operating as a Registered Training Organisation for 12 months.

●The initial primary service offered will be nationally recognised qualifications Certificate IV in Business (Frontline Management) and Certificate IV in Workplace Assessment and Training. We will also offer Fee for Service training, tailored to individual client needs.

●Quality Training will explore opportunities to extend its scope to maximize business opportunities and meet customer needs.

In conclusion, as shown in the highlights chart below, this plan projects rapid growth and moderate net profits over the next three years. Implementing this plan will ensure that Quality Training quickly becomes a profitable venture for the owners.

1.1 Objectives

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1.2 Mission

●Purpose – Quality Training exists to provide high quality, relevant training and development solutions which make a discernable difference to the client’s business productivity and performance. It also provides students with nationally recognised qualifications (where applicable).

The keys to success for Quality Training are:

●Marketing and networking – identifying and following up potential clients.

●Growth – assessing client needs and obtaining appropriate training solutions by extending the scope of registration, or by developing suitable stand-alone/Fee for Service training packages.

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●Financial status
●Profit and Loss Statement for end of financial year 2005 is attached.

2.3 Company locations and facilities
This is a home office venture, located in the study area of the owners’ existing home. ●Computer facilities – stand-alone desktop computer installed.

●Broadband installed for internet and email functions.

●Utilities provided for are to be charged to the business as a percentage of home usage.

3.2 Stand-alone (Fee for Service training)
●Manual Handling
●Time Management
●Presentation Skills
●Recruitment and Selection
●Customer Service
●Selling Skills
●Personal Effectiveness Program.

3.3 Training needs analysis
●Quality Training will conduct training needs analysis and develop specific training materials and packages at the request of clients.

●In-house training departments/personnel – usually employed by larger companies that can afford the fixed costs of employees.

●Public training providers (TAFE) – well established and respected, offering public courses and qualifications in a broad range of subject areas.

●Private RTO’s will provide the greatest threat to Quality Training. They are often national providers and, as such, can provide services to businesses with franchises or branches in other states.

●The local phone book lists seven training companies in the Penrith area. These are not large providers, with the exception of two community colleges. There is a large TAFE. Many of the training organisations in the area are quite specialised, e.g. Retail Skills Training and Computer Training. These are not perceived as a threat to the success of Quality Training entering the local market.

4.3 Strategies to overcome perceived threats and weaknesses
●Network with friends and acquaintances to source business opportunities.

●Timeframe expenses – purchase materials and equipment when we need them rather than upfront.

●Be flexible in our working policies and procedures. Think about contracting staff as required (rather than employing them to save costs) to eliminate the need for larger office space.

5.0 Market Analysis Summary

Quality Training has identified potential clients from a number of industries. Because the training offered is focused on management, people or supervisory skills, the nature of the client’s industry is not particularly relevant.

○Retail

○Service providers.

Worth noting is the growth trend for this market. With continuing low unemployment rates and competition for staff growing amongst businesses, many employers view training and development, and the offering of qualifications to their employees, as a way of attracting and keeping staff. This trend is likely to continue, as:

●population growth is decreasing

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●Internet – Quality Training will develop a website advertising its services to the general public.

●Yellow Pages – Quality Training will advertise in the Yellow Pages.

●Quality Training will also maintain a professional website which will be updated regularly.

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7.0 Review of business plan
This business plan is formulated on assumptions, particularly with regard to financial forecasting.

○Are we capitalising on networking opportunities?

○Are we under/over-resourced (staff, equipment, etc.)?

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