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how to write a simple business plan


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how to write a simple business plan

  1. 1. 1 BUSINESS PLAN FOR SAMUKUTE & SONS COMPANY NAME Samukute & Sons Address: 9 Atlanta, Ivene Gweru Cell number: +263776318497 Email: esamukute
  2. 2. KEY EXECUTIVES Chief Executive Officer Batanai Hostel Senga Managing Director Cleopatra Chitiyo 100 Nehosho Nehosho 0777598042 Finance Director Ngonidzashe Mwaturura St Columbus High School P O BOX 50 Hauna 0777681771 Marketing director Sibuziso Lunga 27 Samuel Mazorodze rd Athlone 0773541789 2
  3. 3. Date Issued 24 October 2012 Prepared by group 18 BUSINESS SELECTION PROCESS OR METHODOLOGY OF BUSINESS SESELECTION Need identification We need to identify the business in which we are going to develop a business plan. Criteria for business selection Location – the business that a plan is going to be developed should be located in Gweru. This led us to eliminate all businesses which were located outside Gweru. We also eliminated all businesses that are located in the CBD as this has high probability of failure as a result of cut-throat competition from well established firms such as DCK, OK, TM among others. Type of business- we chosen a retail business since it provide basic needs that are likely to have unlimited demand and thus the sector which many businesses have high risk of failure if they venture into because of stiff competition. It is also the fastest growing sector or industry in the economy which is of great essence to the nation if they grow. Target market- this sector had a wide target base since all people consume basic needs hence concentrating to such a sector could bring a tangible plan. Service markets need a lot of expert to which our focus is limited to. Fund requirement-this sector can be grown by increasing the capital base which therefore is the key to success of any business and also demand a small capital base which is practical and reasonable to be offered to an individual. All businesses which need to be financed with a lot of funds to grow will be excluded. 3
  4. 4. Legal environment- this sector is mostly legalized by the Companies Act and many fiscal terms in Zimbabwe unlike the mining sector and other sectors which include the manufacturing and IT business. All businesses pertaining to mining sector had to be eliminated Data collection. All businesses that have been researched were brought to evaluation in accordance to the above criteria to come up with the one to which the business plan should be developed and or presented . Evaluation process The evaluation was based on the need of the plan and the way that was used to eliminate other possible businesses visited Selection Finally Samukute and Sons was selected to be the one in which the business plan is going to be developed and be presented. 4
  5. 5. CONTENTS PAGE CONTENTS Executive Summary Business description Business environment analysis (PEST) Market Plan Human Resources Plan Financial Plan SWOT Analysis 5
  6. 6. EXECUTIVE SUMMARY Samukute & Son retail shop is located in Ivene. It provides grocery to purely meet the increasing demand, needs and desires of students and staff members at Midlands State University who are residing in Ivene and all around residents of Senga, Nehosho and Kopje. This plan seeks to develop strategies aiming to improve the condition of the business so as to make it grow. This can be done through loan acquisition, recruitment of skilled workers and developing the trading system. The amount that is needed to better develop the business can approximately amount to US$20000. The strategies that can be used could be in form of advertising, penetration pricing, and venturing into different locations to capture the needs of people as well as offer of standardized products that have already certified (SAZ) Standardization association of Zimbabwe. It is aimed at providing the best merchandise to the community in Ivene and nearby areas at a cost they can afford and in such a way that they are not, socially economically, politically isolated. Samukute’s goal is to provide the students and members of staff with a wide range variety of merchandise. A Human Resource plan show how the retailer’s functional structure arranged according to functions with the as the head. Qualities and duties are also stated. There is also a financial breakdown of the usage of cash. A swot analysis is carried out to determine the strength, weaknesses, opportunities and challenges which may affect Samukute & Son retail shop. BUSINESS DESCRIPTION Samukute & Son is a retail shop which is currently operating in Ivene providing the residents with grocery goods especially convenient goods. The company was formed in 2011. The retail shop should venture into other markets like Senga and Nehosho. VISION To grow the business into a large retail shop by 2018. 6
  7. 7. MISSION To diversify into soft merchandise and provide superior products in a socially responsible manner. OBJECTIVES Honesty and Integrity Professionalism Competent Staff Commitment to quality Stakeholder’s involvement Survival. Increase market share. GOALS To provide high quality goods to customers To increase sales by 10% monthly. To increase profit by 6% of sales. To increase the market size by locating in nearby and surrounding areas. COMPANY CORE VALUES Fairness and equity. Put customers ahead of everything as is the purpose of the business. Mutual trust and respect Integrity and honest. Affordability. 7
  8. 8. Flexibility. Adaptability. COMPANY MOTTO Provision of best quality at affordable prices CHAPTER 1 Mr Samukute started a grocery tuck-shop business in 2003 as an unregistered trader. He then registered his business in 2005 with Gweru City Council and employed two people of which one of them was Rudo Jokwiro who was employed as a till operator. He then converted his sole proprietorship business into a partnership by allowing his two son, Lincoln and Forget allowing them to buy the interests which amount to 2/5. BUSINESS ENVIRONMENT ANALYSIS. This includes an analysis of the: Political, Economic, Social, Technological, Legislative and Environmental changes taking place. The analysis outlooks as to whether these will be opportunities or threats to the business. Political Changes. The Zimbabwean Government has set up a number of small business support initiatives through the Department of Trade and Industry; these include: Small Enterprise Development Agency and the National Youth Development .These are aimed at promoting small, micro and medium businesses. The agencies will be an opportunity for the business as it will have access to support in terms of assistance with the development of a comprehensive marketing strategy and plan, financial and accounting systems, branding and so forth. Policies and initiatives aimed at growth, empowerment, procurement and other factors. Key opportunities will include: Broad Based Black Economic Empowerment. This is essentially a policy that focuses on growth and helping Zimbabwe realise its full 8
  9. 9. economic potential while taking into account employment equity, it will be an opportunity for the business. Economic Changes There are a number of economic changes taking place in Zimbabwe. The economic slowdown has had an adverse effect on the economy of Zimbabwe’s evident from the declines in manufacturing, mining, agricultural and other sectors. The resulting unemployment has resulted in reduced numbers of people with buying potential and hence an adverse impact on existing and potential businesses. The recession has led to the tightening of budgets by public and private institutions. Individuals have also been noted to not easily part away with their hard earned money. On a positive note, this year has seen the fall of interest rates and this is sure to be opportunity for the business as its conception and realisation will depend on borrowed funds. Borrowed funds attract interest as a cost and therefore if the interest rates are low then the cost of borrowed funds is less. Inflation is at an average of about 3.7%, rising prices continue to have a negative effect on the economy. However, this is likely to increase as there is potential for ZESA to increase the electricity prices by 45% thus posing threat to the business. Social Changes Zimbabwe has a relatively low crime rate and this is likely to be an opportunity for the business as the business does not waste resources in terms of security. The current socials ills in the country and indeed the rest of the world may also pose threaten the life cycle of employees in the business. This includes social ills such as Aids/ HIV pandemic and the surfacing incidence of the Swine flu. On a positive note the looks into the development of more social enters and a majority of these are to be integrated with Information Technology advancements. The growing population coupled with the growth in double income families will be an opportunity for the business. Technological Changes 9
  10. 10. Technological changes taking place will be inopportunity to the business as it will have access to the latest technology like e-retailing, networking platforms, devices and much more. The business will open to internet marketing and e-commerce opportunities which will expand the market for it. Legislative Changes The business will have to comply with the laws of the Republic of Zimbabwe there is a threat of the business not being fully able to comply with laws and regulations. The business will have to observe the following acts amongst others: Income Tax Act Occupational Health and Safety Act Employment Equity Act. 10
  11. 11. CHAPTER 2 HOW DO THE BUSINESS GET TO GROW AND SUCCESS? MARKETING PLAN TARGET MARKET Samukute and Sons retail shop is set to target the students, staff and other customers Midlands State University. This business should be located in strategic areas such Senga and Nehosho where the students can easily access to buy products at a less cost. This is for the reason that a lot of students at the university reside off-campus and therefore they would obviously need groceries hence the reason why they will buy from the retail and also they is need to reduce transport cost to purchase goods from town. COMPETITORS These include MSU TUCKSHOPS and Senga Shopping Centre. Pricing Strategy Penetration It is charging low prices in order to attract more students and the members of the staff. As this is a new Internet resource centre for students and staff, charging less will definitely attract many people. The more the students who come in the more the money the resource centre gets. profits can also be made from this as many students will be expected to come and utilise the internet café be cause of the less fees being charged. List Pricing 11
  12. 12. This is the recommended prices .thus might not be an advantage as a small number of people might come at the opening. CHAPTER 3 12
  13. 13. CHAPTER 4 HUMAN RESOURCE PLAN Organogram An organized structure is a diagram shown above which shows how Samukute retailers should organize its activities in order to create value, it ensures value creation by assigning people to task and connect the activities of different employees and functional areas in an organization. The structure is mainly because the organization is concentrating on a few Managing Marketing officer Merchandising manager nager Till operator Till operator Till operator 13 Sales personnel
  14. 14. related products and the departments are arranged according to the functions with the managing director at the top. Till operator A certificate in short computer source CHAPTER 5 FINANCIAL PLAN NB: Our prices are in USD Cash in hand – $15 000.00 Table 1 Inputs/raw materials Item quantity Estimated price Inventory $ 12 800.00 Tills 4 $ 1 450.00 14
  15. 15. Total $ Table 2 Table 3 Miscellaneous per month salaries per month managing director $ 550.00 Marketing officer $ 300.00 Merchandising manager $ 300.00 Sales personnel $ 250.00 Shop assistant $ 200.00 Cashier $ 200.00 Total $1 900.00 15
  16. 16. Cost Rentals $ 1500 Water $ 150 Electricity $ 200 Telephone bill $ 150 Total $ 2000.00 SWOT ANALYSIS Strength, weakness, opportunity, threats STRENGTH - The passion and commitment demonstrated by the business owner. - The strong thriving entrepreneurial spirit of the business owner - The charismatic and democratic style of leadership of the business owners shall be a strength to the business Weakness - The lack of funding to purchase additional equipment to reach new markets. - The lack of capacity to meet a wider market - in appropriate organisational structure Opportunities - The existence of government legislation in favour of preferential procurement for small businesses. 16
  17. 17. - expecting many clients to come in Challenges - Stiff competition from well-established retail shops for example OK,DCK - Threat of possible high inflation rates as a result of increased electricity prices - slow speed technological transfer Human resource strategies -on the job training -off the job training -induction training -employee motivation Growth Strategies -franchising -mergers -joint ventures 17
  18. 18. MIDLANDS STATE UNIVERSITY FACULTY OF COMMERCE Entrepreneurship: ENT 205 Surname Name Programme Contribution Jokwiro Rudo HACC Parallel female R113819M 5.5% Pikela Forget HMAN Conventional male R115020V 5.5% Shumba Joyline HMAN Parallel female R115503G 5.3% Rukweza Nyarai HMRK Parallel female R114677R 5.2% Muguwu Lincoln HACC Parallel male R113379N 5.4% Kunodziya Mutsawashe HMAN Parallel female R115414Q 5.2% Moyo Cornelia HMAN Parallel female R114557G 5% Mashandika Ardewt HACC Conventional male R112343F 5.5% Runyanga Felistus HECON Conventional female R115060C 5,4% Chitiyo Cleopatra HMAN Conventional female R113860F 5.5% Chinguwa Shingirai HIRM Parallel female R113900N 5% Mhizha Tafadzwa HMRK Conventional female R111029N 5.2% Jaji Luckson HRET Parallel male R114243G 5.4% Mwaturura Ngonidzashe HACC Conventional male R115356V 5.3% Zvobgo Valentine LLB Conventional female R113510R 5.4% Tuhwe Tinashe HIRM Parallel male R114496Q 5.4 Lunga Zibusiso HMRK Parallel male R115258Q 5% 18
  19. 19. Attendance register Dates 27/09/2012 29/09/12 2/10/2012 Jokwiro Rudo HACC present present present Pikela Forget HMAN present present present Shumba Joyline HMAN absent present present Rukweza Nyarai HMRK present present present Muguwu Lincoln HACC present present present Kunodziya Mutsawashe HMAN present absent absent Moyo Cornelia HMAN absent present absent Mashandika Ardewt HACC present present present Runyanga Felistus HECON present present present Chitiyo Cleopatra HMAN present present present Chinguwa Shingirai HIRM present present present Mhizha Tafadzwa HMRK present present absent Jaji Luckson HRET present present present Mwaturura Ngonidzashe HACC present present present Zvobgo Valentine LLB present present present Tuhwe Tinashe HIRM present present present Lunga Zibusiso HMRK present present present 19
  20. 20. BIBLIOGRAPHY Aardt.V,Hewiit,Bendemon,Bezuipenitout.(2011).Entrepreneurship and New Venture.Oxford University Press.Cape Town. Albert,K.J,(1997).How to pick the right small business opportunity.New York; McGrawth Hill. Amos. T,Ristow,A.(1999).Human Resource Management. Cape Town;Juta Hisrich.R.D,Peters.M.P,Sherpherd.D.A,(2010)Entrepreneurship.New York; McGraw Hill Publishers. Kaulgud .A, (2003).Entreprenuarship Management.New Delhi;Vikas Publishing House. Moore.C.W,Petty.J.W,Palich.L.E,Longenecker.J.G(2010).Managing Small Business China;China translating and printing service limited. Nieuwenhuizen.C,Roux.E,Jacobs.H(2001).Entrepreneurship and how to establish your own business.Cape Town;Mills Litho. Strokes.D (1995).Small Business Management. London; Ashport Colour Press Wickham.P.A(2006)Strategic Entrepreneurship.Great Britain; Prentice Hall. s 20