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Playford Enterprises 5 Year Plan - Summary Business Plan 3

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Playford Enterprises 5 Year Plan - Summary Business Plan 3

  1. 1. Summary Business Plan Playford Enterprises Playford Enterprises 5 Year Plan
 May 15, 2014
 Proprietary and Confidential A. Our aspiration and strategy Playford Enterprises is based in Davoren Park, SA, Australia and operates in the Professional and Community Services sector. We aspire to become the Nation's most respected advisor and service provider to small- and medium- sized Social Groups and Councils (SGCs). By 2020: • We will be the Nation's most respected and sought after advisor and service provider to small- and medium-sized Social Groups and Councils (SGCs) throughout Australia. Our Community area will provide HACC and Youth Services to all Northern Councils; our Finance and Business Services units will support each Northern Council with a suite of packages around advisory services; our catering division will service the new hotel and office accommodation in the CBD; and our equipment and staff will be fully utilised. • Our innovative turn-key solution - The Enterprise Package - has been taken up by 10% of the Councils Australia wide and is gaining momentum. B. The sector we operate in and how we make money CURRENT CUSTOMERS: City of Playford State Government Federal Government Community Members Currently, our main customer is the City of Playford. This local government organisation has a workforce of 400+ people, excluding volunteers, and has an annual operating budget of approximately $80m. The city provides a range of services including city and asset maintenance, waste collection, regulatory services, planning services, library services, and customer care, all funded thru the collection of rates. In addition it provides community services funded mainly by government grants. The city is currently undergoing a period of substantial growth and as such is struggling to meet the demands of its new residents while still servicing the needs of residents in older suburbs. In addition, the city has a wide ranging demographic which place varied demands at both ends of the socio-economic spectrum. This places significant stress on the organisation to provide a high level of affordable services. The city is passionate about, and has significant pride in, the community and its members. Residents enjoy living here but feel that those outside the community are unaware of the benefits the city can provide. A big struggle the organisation has is the delivery of efficient and effective services. Playford Enterprises, thru the business transformation program is gearing up to provide administrative services at the lowest possible cost with the highest possible level of service delivery. This means reducing the cost to the rate payer without reducing service levels. In order to achieve this Playford Enterprises needs to fully understand the cost of delivering service and must be able to demonstrate that the cost of service is the best value for the organisation. By operating in a competitive environment the city is able to ensure it is paying the lowest cost for the best possible service. Copyright ©2014 Playford Enterprises. All rights reserved. Company confidential.
  2. 2. Summary Business Plan POTENTIAL CUSTOMERS Councils Small businesses Universities Clubs and Sporting Groups Other Federal and State Government Agencies Playford Enterprises, in its purist form, offers organisations the opportunity to reduce overheads to a fraction of what it would cost to provide those services in house. By outsourcing to a local provider the organisations will be able to reduce costs while at the same time ensure they have a supplier that understands their needs. In the case of Other Councils, Playford Enterprises is well placed to understand the pressure and intricacies of Local Government business and fills a niche in providing the level of service that the customer needs. In addition, being a part of local government we can understand the true needs and expectations of the customers as well as understand the legal requirements that, if left unattended, could lead to organisational harm. In addition, with internal legal services we can ensure the customers overall costs can reduce in the long term. For customers outside of local government we can provide a wide range of services such as: finance; human resources; procurement; ICT; record keeping; and event and PR management. Eventually we will even be able to provide business development services. For small business we can provide those services at a much lower cost than hiring full time staff. We are also able to provide those services at a lower cost than a big firm that does not want to deal with small customers. Yet we are big enough that we will have a wide range of services available for bigger customers that need more complex support. For clubs and social & sporting groups we can provide a discounted service based on our social enterprise model that allows us to subsidise our social service with the commercial service that we earn from our commercial clients. On the community side we can offer services to federal state and local governments in areas where they may not have the expertise, the time or the money to operate. HACC services are one example where we could push into an under serviced area without substantially increasing the cost to either the council or the funding provider as we are transferring a system rather than developing a whole new service. Our experience in health can also be useful to those areas that have an ageing population but limited experience or support in servicing that population. We can also provide catering services for all manner of industries based on the commercial catering service now operating out of the Grenville Centre. For the clubs and sporting groups our governance/company secretarial services can provide much needed support to boards who often struggle with volunteer groups that may have little or no experience in company director duties but are still libel for all director type responsibilities with no way to protect themselves. Our support would be much cheaper than contracted legal support and also provides a benefit to the community. In the area of recreation and sport we are a perfect liaison between the clubs and council when it comes to facility hire, sporting grounds or grants that may be available to the worthy groups. COMMUNITY FACILITATION For years Governments have operated on a basis of hand-outs and welfare, outcome driven but not solution focussed. In order to drive real change we need to start looking at ways to help community Copyright ©2014 Playford Enterprises. All rights reserved. Company confidential.
  3. 3. Summary Business Plan members help themselves through facilitation and support. Community members, especially younger community members, struggle to find their place and have their voices heard. The most affected one's find traditional schooling difficult and often turn to socially unacceptable outlets to vent their frustrations and to feel a part of something. INTERNAL BUSINESS SUPPORT In the current environment business units are struggling to report on their finances, understand budgets, file acquittals with funding bodies, develop business plans, etc., etc. Areas such as Assets need information to allow for intra-company charges of rent as well as the ability to charges to external bodies. This just covers the finance area. In the area of People Services there are difficulties with providing proper training, recruitment, performance management, development plans and general people management. Procurement is slow, cumbersome and decentralised leading to inefficient purchasing practices within business units and across the organisation. EXTERNAL BUSINESS SUPPORT In addition to this, a number of Clubs, Community Groups and small Councils typically struggle to manage aspects of their business, let alone take advantage of the most modern, powerful and effective management tools. These tools are normally created for large organisations and are therefore needlessly complex and expensive for smaller businesses. However, because today's business environment is extraordinarily challenging, these groups and their managers need to use the best possible tools to thrive. Many consulting firms focus on larger clients because of the larger fees and longer contracts. Small clients (e.g. small Councils, Community Groups, etc.) are challenging: they demand a great deal and yet often have budgets too small to support appropriate engagements. Limited finances and ever decreasing government support, coupled with increased legislation and regulatory requirements mean these smaller organisations, already struggling to meet day to day demands, must now find more creative methods in order to meet these new cost pressures. Councils Sporting Groups Clubs Other levels of Government Councils are struggling in an era of ever decreasing funding and an ever increasing spread in the demographics of populations. As older residents expect more services younger residents expect to pay less for the services they are not utilising. This puts councils in the untenable position of providing services with less money. Add to that the fact that it is highly likely that government grants will dissipate in the coming years and the outlook is bleaker. With Playford Enterprises providing a high level of service to these organisations they can funnel their limited funds into their core services and spend only what they need on administrative costs, rather than carrying a large amount of overheads. Sporting groups and clubs both struggle with obtaining the appropriate volunteers when it comes to administrative support. If a board is lucky they will have a parent/member/participant that is capable of carrying out certain administrative duties such as governance, finance or hr. The more likely scenario is an unqualified individual is tasked with carrying out certain duties and while not qualified or paid, is Copyright ©2014 Playford Enterprises. All rights reserved. Company confidential.
  4. 4. Summary Business Plan carrying the same liability as the member of a professional board. The groups also struggle with finances, both in managing and obtaining. They could use support but seldom have the funding necessary to secure the required skills OTHER LEVELS OF GOVERNMENT For the state government the limitation of funds but the ever increasing scope of urban sprawl means there is a struggle to provide the services required with the limited funding involved. Due to issues with probity the state government is not able to obtain services that might help it support the needs of its customer base. In addition, while many services are pushed to lower levels of government those lower levels also have limitations that mean they cannot take on everything that is required. Playford Enterprises will provide services in all back office areas as well as in the community area. Because of our relationship with the City of Playford Playford Enterprises is ideally placed to understand and relate to the needs of its entire customer base. From councils to state governments to community groups, clubs and sporting groups Playford Enterprises understands what makes these groups tick and what needs to happen in order for these organisations to survive and thrive. BACK OFFICE - Back office support includes Financial Services, ICT, HR, Procurement, Governance, Marketing, Records Management, GIS, Business Development, everything a council, club, sporting group or small business could need. We are also scalable so if necessary we could bring in support to provide a higher level of service or we could facilitate the relationship to provide short term consultancy. Also, based on our experience we can consult to councils and the like in achieving more efficient and effective operations thru various means. We also work on a consultancy basis in providing other services. We work collaboratively with councils and resident groups to enable greater buying power and to make everyone’s dollar stretch further For State Government agencies we provide outsourcing in all areas and are able to scale operations to provide customer care, planning support and regulatory services that other councils may not be able to achieve. We can provide administrative support services on a long or short term basis and can assist State Government agencies with a myriad of services. We offer a high level, inexpensive service that enables our customers to focus on their core business, not the things they would rather not think about. By using Playford Enterprises customers are able to reduce overheads, IR risks, WHS risks, cost increases, and a myriad of other support issues by using an outside, local resource. Because we understand the needs of our customers we are able to provide a tailored service that allows them to not have to worry about day to day administrative duties. They can work harder on their revenue generating activities. We can also provide compliance activities such as Financial, WHS, Risk, Governance and negotiate Enterprise Agreement. COMMUNITY FACILITATION We prefer not to think of others operating in this realm as competitors but rather Social partners who share the common goal of seeing community members achieve fantastic accomplishments. These are made up of other governmental agencies (Federal or State), NGO's, Social Enterprises and NFPs that provide similar services. BUSINESS SUPPORT Our competitors for commercial support can include accountants, lawyers, and the full range of Copyright ©2014 Playford Enterprises. All rights reserved. Company confidential.
  5. 5. Summary Business Plan consulting firms including large national and regional firms, smaller boutique firms, and sole proprietor firms including business coaches. Accounting and legal firms already have access to our target customer on a regular basis. However, their thinking seldom goes beyond the transactional or tactical. Few accounting and legal firms truly appreciate the issues faced by our target market or offer strategic services. Large national and regional firms have (or claim to have) a full array of strategic offerings. Their rates and offerings are often designed for larger, more commercial organisations; they are more complex and they are expensive. Few SGCs require the full range of these services; fewer can afford them. Boutique firms, sole proprietors and business coaches have rates that are more appropriate for SGCs. The quality of their offerings ranges widely but is typically weaker than the larger firms. They often borrow large-firm strategy concepts which don't translate particularly well to smaller businesses. Using SocialEnterpriseStrategy we are able to offer world-class thinking that's specifically designed for SGCs. And we're able to meet their budget constraints by offering seminars, workshops and service packages. Income is generated from the following sources COUNCILS – We provide all back office services that councils might require. Thru our network of contacts we make councils aware of the services on offer and make clear that we are not looking to take all of their corporate knowledge away in exchange for their business i.e. not a shared service, we are looking to support where they have gaps and fill holes that have been created by employees that have left, either voluntarily or otherwise. We also look to collaborate on procurement, taking a small fee or a portion of the savings generated during transactions. Our main source of revenue will be generated by our innovative service system known as The Enterprise Package. This turnkey solution includes a complete set of Standard Operating Procedures (SOPs) that can be used to run their entire back office operation as well as training for the first three months to embed the system, updates to the SOPs and on-going support for the life of the licence. CLUBS and SPORTING GROUPS – where a club may have needed to engage the services a larger more expensive for profit firm we are utilising a social enterprise model and therefore can provide a discounted rate to clubs and social groups while still maintaining a competitive price. We contact these groups thru our various networks and also may need to force an engagement in order to meet terms of council contracts. While this may be done on a fee free basis the council will pay for these services as it ensures a better outcome to the community SMALL BUSINESS – small business operators often struggle in their early days in fact, almost 60% of small business fail in the first three years. This is due to mainly to poor management skills or lack of time in dealing the more mundane back office activities. By running free workshops and seminars we are able to connect with business and provide them with a toolkit that will assist them in surviving their first three years. Thru these contacts we are able to generate paid services via consulting, and admin support that leads to ongoing revenue. We also sell various IP such as business education supplies, marketing packs, HR policies, WHS policies, and various other support that will enable these small business to grow. STATE GOVERNMENTS – the state government is not capable of providing all of the services that is required of it which is why it continues to pass services on to the local government sector. Some services, such as HACC are already being delivered by Playford and are considered award winning and best practice in many circles. by building on this reputation we can expand our service delivery beyond the borders of Playford and engage a much wider range of customers on a regional basis, by offering this service we solve the problem for our funding customer (the state) and also solve a problem fore the Copyright ©2014 Playford Enterprises. All rights reserved. Company confidential.
  6. 6. Summary Business Plan receiving customer (the person actually receiving the care) by not requiring a brand new provider be implemented. And we bring a long time service provision model that can be easily replicated. We also offer to install these systems in other councils that may be looking to provide their own HACC services but struggle to provide at the levels that PE currently does FEDERAL GOVERNMENT – as the federal government looks to make its own savings Playford Enterprises can offer services that currently might be provider by the commonwealth itself or possibly private sector. However, as the boots on the ground, we can provide a different level and different skill set at a better price Once we have perfected our service delivery in-house we can look to offer our services to external parties; Clubs, smaller Council and Community Groups Externally we generate revenue four ways: • We host 1/2 day and 1 day workshops for several organisations at a time. We charge a per-group or a per-attendee fee for each workshop. • We offer advisory packages for six month and one year terms. These typically include a workshop and then a two-hour monthly follow-up meeting. • We offer our services on a time and materials basis. • We offer the innovative turnkey solution known as The Enterprise Package. The first of its kind in Australia this product, or more appropriately, this system, gives organisations the ability to purchase a complete set of Standard Operating Procedures (SOPs) that can be used to run their entire back office operation. Along with the suite of SOPs we provide training for the first three months, updates to the SOPs and on-going support for the life of the licence. The below list of services or products is not exhaustive but is an indicator of what we can provide and or sell; • Catering • Sale of IP • Event facilitation • Event management • WHS support • Finance services • ICT services • HACC services • Business Process Consulting (E&E) • Small Business Advice • Small Business Support • Executive Assistant Services Copyright ©2014 Playford Enterprises. All rights reserved. Company confidential.
  7. 7. Summary Business Plan • Financial Modelling • Development Support • Customer Care • Regulatory Services • Environmental Services • Volunteer Coordination • Facilities Hire • EBA negotiations • Legal Support • Governance Support (company secretarial) C. In order to achieve our goal, we will complete these activities and milestones… ! D. …which will allow us to reach these goals… ! E. …and progress in this fashion. ! Copyright ©2014 Playford Enterprises. All rights reserved. Company confidential.
  8. 8. Summary Business Plan APPENDICES Copyright ©2014 Playford Enterprises. All rights reserved. Company confidential.
  9. 9. Summary Business Plan APPENDIX 1 SWOT Analysis Strengths • Local government experience • High quality staff • Supportive executive • Long term success in community • Strong reputation • Award winning services • Lower cost • Extensive knowledge in target markets • Niche provider • Respected CEO • Respected Board member in Mal Hemmerling • Highly experienced executive team • Award winning staff in community and volunteer areas • Largest Metro Council in the North • Location of second CBD • Large proportion of home based businesses in the City • HACC reporting system • E&E processes and documentation • Budget process • Forecasting models • LTFP model Weaknesses • Cultural mind sets • Lack of systems • Limited commercial experience • Low risk of maintaining the status quo • Low market awareness for professional services • No market share Copyright ©2014 Playford Enterprises. All rights reserved. Company confidential.
  10. 10. Summary Business Plan Opportunities • Professional support to all levels of government • Support to small business (SMEs) • Community service delivery to the region (HACC, NSS) • CBD development • Local growth of SMEs • Team training • E&E • Enterprises Transformation • Catering • Speaking engagements • Discounted service provision for early adopters • Develop open source IP • Facilitate a major event • Join industry associations • Second staff to other businesses • Joint venture with technology providers • Change the perception of the City through marketing and events • Encourage relocation of Government departments to the new CBD • Develop reporting dashboards • Customise TechOne • e-BUS roll-out • License service and support system to other councils • Develop SOPs for all services • Copyright SOPs • Develop event plans for major events • Win first external council • Win first private sector customer • Distributor for franchise model • Launch our far north operation • Provide regional HACC and Youth services • Launch our first interstate operation • Drive more brand awareness • Develop a recognisable brand • Increase training budgets to further develop the team • Continue with CIP initiatives • Systemise the entire work process from start to finish in all areas • Develop partnerships in key areas such as procurement • Add to existing community partnerships to allow facilitation of services. Copyright ©2014 Playford Enterprises. All rights reserved. Company confidential.
  11. 11. Summary Business Plan Threats • Change in management • Loss of customers • Change in government policy • Loss of key employees • Decrease in market demand • Other start-ups generated by changing economic environment • Copy cat competitors • The slow adoption rate of new processes in our target market might hamper take up • A downturn in the economy may see larger competitors drop to our target market to prop up revenues
 Copyright ©2014 Playford Enterprises. All rights reserved. Company confidential.
  12. 12. Summary Business Plan APPENDIX 2 THE TEAM Copyright ©2014 Playford Enterprises. All rights reserved. Company confidential.
  13. 13. Summary Business Plan APPENDIX 3 Marketing Plan Overview Our marketing strategy is a simple one: satisfied customers are our best marketing tool. When a customer utilises our products or services, our name and service will stand on its own. We have talked with a number of potential customers, and associates who are excited about our plans and are anxious to use our services. Local TV news shows (The Today Show, Sunrise) will be contacted to feature our business as a new service to the community. Direct mail will be sent to all Councils and SMEs in South Aus- tralia regarding the new services and requesting the opportunity to discuss. Positioning For business owners and managers who need to deal with any back office tasks, The Enterprises Package creates and helps manage professional services. Unlike a typical consultant engagement The Enterprise Package provides a complete system for the corporate service area from plan to action. For business people in all levels of management who make decisions that impact the success of their companies, [name omitted] is software that analyzes almost any type of strategic or tactical problem and guides the user to choose the best course of action. Unlike [name omitted], [name omitted] features an easy-to-use intuitive interface and step-by-step online guide system that en- ables all users-from novice to expert-to make smart decisions easily and confidently. For councils, small businesses, professionals, and the self-employed who recognize that manag- ing their back office tasks can be the difference between success and failure, The Enterprise Package is a complete solution that handles all the essential functions including finance, HR, ICT and procurement. Unlike other models and other complex work procedures, The Enterprise Package provides the solution that allows businesses to focus on their back office tasks in a clear and easy method. Copyright ©2014 Playford Enterprises. All rights reserved. Company confidential.
  14. 14. Summary Business Plan Pricing Pricing of our products must remain initially competitive with our rivals, who initially will be in- house providers. Management does however plan to price The Enterprise Package somewhat lower than our direct service provision to gain market share. This is typical within the industry and can create higher margins. If Enterprises is able to capture a significant number of newer customers, then management will consider a reduction in overall prices to reflect our established unique position. This is counterintuitive but reflects Enterprises commitment to collaboration and the strengthening of communities Promotion Promotion will be initially spearheaded by public relations because of its low cost, and then through advertising once Enterprises begins to increase cash flow to an acceptable figure. Cus- tomers will be able to purchase our SOPs from our website and the Enterprise Package via direct consulting. Our direct services will be available via EOI thru the website or direct contact 
 Copyright ©2014 Playford Enterprises. All rights reserved. Company confidential.
  15. 15. Summary Business Plan APPENDIX 4 Financials TBC Copyright ©2014 Playford Enterprises. All rights reserved. Company confidential.