Welcome to BSB40407, Certificate IV in Small Business Management, A to B Program

Transcription

1 Welcome to BSB40407, Certificate IV in Small Business Management, A to B Program

2 Would you build a house without a plan? So why go into business without a plan? 85% of small business fail in the first year of business, and a further 4 % survive past 10 years due to lack of planning. And 58% of these failed businesses didn t have a business plan. 22/05/2014 2

3 Today s Agenda Introductions Housekeeping Course and content overview Assessment criteria & assignments- units of competency Types of businesses Business planning; core areas, reasons, templates 22/05/2014 3

4 WHO ARE YOU? WHY ARE YOU HERE? & WHERE DID YOU COME FROM? 22/05/2014 4

5 HOUSEKEEPING All phones off Toilets Emergency evacuation Do not speak when others are Questions- raise hands Get involved & have a say Take notes Be positive 22/05/2014 5

6 Course overview Delivery: Visual: power point presentations, charts, internet, handouts with plenty of white space, visual displays Auditory: teach students by them listening rather than by reading. Questions and answers, lectures and stories, discussion groups Kinesthetic: Learn by doing. Team activities, hands on experience, role plays and note taking 22/05/2014 6

7 Course overview Assessment Methods Assignments in relation to BSBSMB404A Small Business Plan; 1. Prepare a business plan 2. Exam semester 1 3. Exam semester 2 22/05/2014 7

8 Business Plan - What is it? A business plan is a working tangible document, that holds the blue print to your businesses success. 22/05/2014 8

9 Components of the Small Business Plan Executive Summary- this is written last, it is a summary of the tittles below; Products and /or Services offered Industry overview Position in the Industry Competitors Marketing Plan Pricing Strategy Sales and Distribution Plan Management Plan Operating Plan Financial Plan IT Plan 22/05/2014 9

10 Why are you in business? Step 1- Business Goals and Objectives: Why goals and objectives? To enable a company to control its marketing plan. To help to motivate individuals and teams to reach a common goal. To provide an agreed, consistent focus for all functions of an organization. All objectives should be SMART i.e. Specific, Measurable, Achievable, Realistic, and Timed. Specific - Be precise about what you are going to achieve. Measurable - Quantify your objectives. Achievable - Are you attempting too much? Realistic - Do you have the resources to make the objective happen (men, money, machines, materials, minutes)? Timed - State when you will achieve the objective (within a month? By February 2018?) 22/05/

11 What type of business are you? Sole Trader Partnership Private Company Description A single person who controls and owns the business. Two people or more, sharing profits in agreed proportion. A legal entity in its own right. The owners are the shareholders. Advantages Simple and quick to set up or to close down. Benefits from combining your skills and capital with that of others. Flexible managing tax (directors pay tax on salaries and then receive dividends on surplus profit. isadvantages Personally liable for all debts. Few options to minimise tax. All partners are liable, regardless of their partnership equity. Partnership ceases on death. Higher ongoing compliance costs and more complex reporting obligations. Establishment Costs ngoing Costs From nil to $130 Normal accounting fees plus periodic renewal of business name. Between nil and $1,000, depending on costs of drawing up a partnership agreement. $1,000 to $15,000 Normal accounting fees plus periodic renewal of business name. Higher accounting fees ($650 upwards a year) plus $200 annual filing fee. 22/05/

12 22/05/

13 Did you know? Ross Cameron of Cameron Research Group found some common characteristics in the small businesses sector: 50%of businesses don t employ and don t want to A further 32% employ fewer than 5 people 58% of owners don t have a business plan 83% of owners don t have a business degree One third have owned a previous business 22/05/

14 Size matters A micro business has less than 5 staff. A small business has less than 20 staff A medium business has more than 20 staff but less than 200 And a large organization employs more than 200 staff 22/05/

15 WH&S Explain the need for WH&S in all environments. Est. WH&S committee. Implement the following criteria; Induction manuals for all employees covering their award, the working environment Training manuals to be drawn up for every procedure Hazard Reporting committee members responsible for hazard reporting, must know to do: who, what,where, and when Inspections: a committee member to inspect work environment for safety breaches, i.e. faulty electrical cables Accident Investigation: Work Cover explain their role, covering penalties for breach 22/05/

16 WH&S Rehabilitation: Work Cover in conjunction with WH&S comm. will devise plans to assist return to work Review: WH&S committee must review all procedures on all ¼ basis for improvement Creating a Healthy Company: - the principles of a healthy company include: a safe Working environment: healthy working practices; programs to promote health and to address psychosocial risk factors at the workplace; health impact assessment for, marketed products; and contribution to health and social development in the community 22/05/

17 Resources Australian Securities and Investments Corporation ( ASIC). ASIC is Australia s corporate, markets and financial services regulator. mpanies%20overview ASIC contributes to Australia s economic reputation and wellbeing by ensuring that Australia s financial markets are fair and transparent, supported by confident and informed investors and consumers. All business names have to be registered with ASIC Compliance programs aimed at ensuring companies, schemes and various individuals and entities meet their obligations under the Corporations Act 2001 (Cth) (Corporations Act). Discuss the importance of the Trade Practices Act and ACCC 22/05/

18 Financial Plan start up cost costings profit and loss, cash flow balance sheet break-even analysis assumptions business ratios such as Quick ratio etc. 22/05/

19 Financial Plan Teach and supply class with examples of costing s, budget planner, cash flows. Discuss Quick Ratio a quick ratio as a financial tool that weighs assets against debt to help determine how healthy an organization is. It is also known as the "acid test". Discuss solvency and insolvency Laws, explain their connection to the various business structures. Discuss the connection between the Quick test and solvency. Explain about and the two tests for insolvency, cash flow test and Balance sheet test Explain how to do a costing 22/05/

20 22/05/

21 22/05/

22 22/05/

23 22/05/

24 Marketing Strategy Marketing Strategy: SWOT Analysis Strengths: Areas where you are better than your competitor Weaknesses: Areas where you are weak against your competitor Opportunities: Areas where you have an opportunity over your competitors Threats: Areas where your competitors are better than you 22/05/

25 The Marketing Mix Price, Product, Place, Promotion, People, Process, Physical Target Markets: How to identify and connect with, expand Segmentation; Demographic, Psychographics, Geographic explain how to segment your market.. 22/05/

26 The Marketing Plan Value Statement/Proposition: A value statement is an expression of a company's or individual's core beliefs. Competitive Edge: having a clear advantage over the competition in terms of one or more elements of the marketing mix that is valued by potential customers What is your service/business competitive edge? 22/05/

27 The Marketing Plan Branding/Positioning Statements: A brand's position refers to its place in the customers' minds. Positioning creates a unique space for a brand, and succinctly articulates the position to the brand's core target audience. Writing a positioning statement is key to creating a brand's desired position. 22/05/

28 The Marketing Plan Pricing Strategy: Pricing strategy refers to the methods by which a business calculates how much it will charge for a product or service. It is based not only on the cost of the product, but also on profit margin and a holistic view of the market and future viability Promotion Strategy: The campaigns are constructed to define and locate the targeted audience, and to clearly and specifically communicate your desired message. Distribution Patterns: Distribution (or "Place") is the fourth traditional element of the marketing mix. The other three are Product, Price and Promotion. 22/05/

29 Sales Strategy Marketing theory distinguishes between two main kinds of promotional strategy - "push" and "pull". Push A push promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product. The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers. Pull A pull selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product. If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers. 22/05/

30 E- Business Web Plan - E-marketing: E-marketing is the term given to marketing strategies and tactics used exclusively on the Internet. Website to sales channel. Data collation and collection. Social media channels and channel management. Blogging. Feasibility assessment via social media. 22/05/

31 E- Business Marketing sites v selling sites. The Boston Chocolate factory, member s create new recipes and submit. Landing pages dedicated to product. Multiple sites linked to for search and deep linking. It seems complex, but it isn t. Make site sticky, SEO bed at the top of the page, analytics: find out how s looking at your site and for how long. 22/05/

32 Production/Operation Plan Full knowledge of Fair Work Australia, 10 commandments and pay awards Small Business owners should join an association that assist them e.g. Australian Business. Associations like this will keep you informed in regards to new legislation 22/05/

33 Production/Operation Plan Do you manufacture or outsource product/warehouse. Examine industrial environment. Fixed cost versus variable. Production/inventory planning/ logistics 22/05/

34 Staffing requirements Human Resources Discuss various types of employment and the cost/advantage to the company, Full time, part time, casual, permanent temporary. Small Business needs to know how to identify roles and responsibilities, recruit, induct, performance manage, dismiss. For all enquiries please go to the Fair Work Australia site; /05/

35 Human Resources 22/05/

36 Power to the people Corporate Governance Corporate governance is a term that refers broadly to the rules, processes, or laws by which businesses are operated, regulated, and controlled. The term can refer to internal factors defined by the officers, stockholders or constitution of a corporation, as well as to external forces such as consumer groups, clients, and government regulations. Policies/Structure designed everyone internal - say officers, stockholders and external such as consumer groups, trends or legislation 22/05/

37 Power to the people Corporations adhere to accepted ethical standards and Best practices ( explain) A best practice is a technique or methodology that, through experience and research, has proven to reliably lead to a desired result., i.e. best practice in software development results in a new advancement 22/05/

38 Power to the people Include backgrounds of key members of the management team, personnel,strategy, and details. Establish a Work In Progress Doc on Excel WIP for all Business Strategy. 22/05/

39 Work in Progress Report Name: Task Key Issues Status/Next Action Completion Date 22/05/

40 Be in Touch Specialist Services These can people how provide the extra services for the business to operate; Lawyer, Account, Mentors, Brokers, Specialist services, Advisory services Small business needs to enlist the services of specialists to ensure corporate governance. Relevant People Are those people that are important to the owner/business, these may include; All stake holders such as; the learner, the manager, the trainer/training human resources, industrial relations. Support for; English, literacy and numeracy support Disability Aboriginal and Torres Islander support, ethnic, counselling, interpreting, community support, specialist learner support Workplace buddy 22/05/

41 Risk Management Discuss the reasons for managing risk. Ensure that all the principles of WH&S are implemented and supervised Benefits of risk management: Saves resources: people, income, property, assets, time Protects public image Protects people from harm Prevents/reduces legal liability Protects the environment 22/05/

42 Contingency Plans In business it is best to have a second base or fall back position. Metrics are the best method of check and can be applied to; Customers, disruption to cash flow, late raw material deliveries In small business it is imperative that there are at least 2 to 3 avenues. As well as a bank, one could use factoring to speed up debtor recipes, 3 sources of supply Do not put all your eggs in one basket 22/05/