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Information

Ideas

IDEA
STAGE
VIDEO SESSIONS Test feasibility
CHAPTER 5 & CHAPTER 6
Feasible small business plan Not feasible idea

Test viability
Implementation
Viable small business plan Not viable business plan
PLANNING IMPLEMENTATION
STAGE STAGE
Business plan

Test viability

Viable small business plan Not viable business plan

PLANNING
STAGE

Business plan

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Open Rubric
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What is a business plan?

Introduction
Purpose
Character
Principles
Guidelines
Users
Structure
Benefits

 The purpose of drawing up a business

plan is:
 To obtain financing
A detailed plan of
 To address all business activities
action that sets
 To serve as a communication instrument
out the nature and that will:
strategy of an ○ Sell your management ability
enterprise. ○ Sell your business idea to everyone

Commercial
banks

Blueprint of Financing
Stakeholders
business entities

Flexible USERS
PRINCIPLES planning
document Potential
Management
investors

Developed
by an
entrepreneur Employees Suppliers

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 Identifies problems early thus the Introduction

entrepreneur can make:
 Wise decisions
Character
 Fewer mistakes
 Takes all important factors into account.
Guidelines
 Take decisions for future.
 Opportunity to test ideas. Structure

Analysis Synthesis
(integration)
Introduction

Character
SUCCESS

Guidelines

Action Structure
Communication

 Golden rules: Introduction

 Based on facts and figures
 Short, logical description of the enterprise
Character
 Proper headings
 Capture reader’s interest
Guidelines

Structure

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 Main entries:  Name of enterprise

1) Cover page
2) Table of content  Address of the enterprise
3) Executive summary  Name and contact details of the
4) Business description
entrepreneur
5) Marketing plan
6) Location  Date when business plan was compiled
7) Management
8) Financial plan
9) Conclusion

 Indicates where the different topics can
be found
 List of topics discussed with relevant
page numbers
 Compiled after business plan have
been written
 Purpose: Facilitates easy reference
 Written after the business plan has been
completed
 Inserted before the description of your
enterprise
 Short summary of the highlights of the
business plan

 Name and location of enterprise  What the business is about

 Name of entrepreneur
 Products offered and target market
 Expected sales figures
 Number of staff members
 Capital required
 Own and loan capital
 Security offered and expected profit
 Information on the production branch
and the branch of industry
 Goals & objectives of enterprise
 Uniqueness of products/services
 Who and where the suppliers are

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 Market research  Where the business is located

 Target market  Establishment factors
 Market size  Advantages of location
 Competition  Proximity of suppliers and customers
 Potential market share  Zoning
 Marketing strategy  Availability of skilled labour
 Advertising and promotions  Transport issues
 Pricing

 Organisational structure  Financial forecasting

 Management team  Capital need – fixed and current assets
 Financing – own and loan capital
 Human resource plan
 Profit and loss
 Form of enterprise  Cash flow
 Ownership structure – % ownership of  Break-even analysis IMPORTANT!
each owner  Income statement
•Definitions of statements.
•Calculations and
methods.
 Balance sheet •Main entries and what
they entail.
 Cash budget

 Short paragraph highlighting the

following once again:
 Need for the product
 Sales figures
 Own capital contribution
 Security
 Expected profit

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Implementation

IMPLEMENTATION
STAGE

Forms of enterprise Forms

Legal requirements Characteristics

Labour legislation Factors influencing choice

Establishment factors Procedures - Registration

Functions of enterprise

 Nature of the products or services

Sole
proprietorship
 Liability of owners
 Tax obligations
 Legal requirements
Private
company FORMS Partnership  Need to involve third parties financially
 Legal personality
 Continuity of the enterprise
*Close
corporation

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Forms of enterprise  Licensing

 Register with the South African Revenue
Legal requirements Service (Receiver of Revenue)
 Registration for unemployment
insurance
Labour legislation
 Registration with the Compensation
Commissioner (Workmen’s
Establishment factors Compensation Commissioner)
 Registration with local authorities
Functions of enterprise

Forms of enterprise
Employment
Acts
contracts
Legal requirements

Labour legislation Written Labour Relations Act

Verbal Basic conditions of Employment Act
Tacit Employment Equity Act
Skills Development Act
Establishment factors Black Economic Empowerment

Functions of enterprise

Forms of enterprise COMMERCIAL ENTERPRISE MANUFACTURING

ENTERPRISE
Market Raw materials
Legal requirements Accessibility Labour
Cumulative attraction Transport
Growth potential Energy and water
Suitability of premises Climate
Labour legislation
Limited risk of competition Nature of end products
Interception of consumers Incentives

Establishment factors

Functions of enterprise

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Forms of enterprise
Marketing

General Public

Legal requirements Management Relations

Labour legislation Operations FUNCTIONS Administrative

Establishment factors
Purchasing Financial

Functions of enterprise Human

Resources

 Responsible for the transfer of  Responsible for promoting the image of

products/services to the consumer by the enterprise among all the interest
means of the marketing strategy: groups of the enterprise.
 Product  Social responsibility
 Price
 Distribution
 Marketing communication

 Responsible for collection, processing,  Responsible for determining the capital

storage and distribution of information.
 Also known as the information function.
 Must create an efficient record-
keeping/filing system for the enterprise.
need, and how this need will be
financed.
 Determining capital need
 The need for fixed and current assets
 Financing the need
 Sources of capital – own/loan capital

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 Responsible for the provision and
maintenance of a competent, motivated
labour force.
 Includes job analysis, recruitment,
selection, employment, induction,
training and remuneration of employees.
 Responsible for the transformation of
inputs (raw materials) into outputs (final
products), by using the four factors of
production to manufacture a product or
to create a service.
 Entrepreneurship
 Capital
 Labour
 Natural resources
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 Ensures that production means of the
right quality, in the right quantity, at the
right time, to the right place, at the right
price, from the right supplier.
 Find suitable suppliers
 Includes all the activities that are
performed in the enterprise to enable
the enterprise to attain its goals.
 Found in each of the other functions of
the enterprise.
 Planning, organising, leading, control.
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A. Tutorial 201/3/2013

B. Additional information

C. Examples of questions

Calculations – Year mark and final mark 1. General information

2. Preparation for the examination
The examination paper
3. Allocation of marks per chapter
Assignment feedback 4. Completing the mark-reading sheet
5. Answering the paper
6. Previous exam papers
7. Examination details

 Case study  Study chapter 1 in the textbook.

 Study the information about chapter 1 in the workbook
 70 Multiple-choice questions and study guide.
 Try to answer the multiple-choice questions in exercise
 Total: 70 Marks (one mark per question) 1 in the workbook without looking at the answers.
 Duration: 2 hours  Evaluate your answers for exercise 1 with the aid of the
answer book.
 Answer the questions about chapter 1 in assignment 02
REMEMBER! again.
HB Pencil
Eraser  Evaluate your answers with the aid of the memorandum.
Pencil sharpener  Repeat this exercise for each chapter in the textbook.
 Phone us if there is anything that you are not sure about
– before the exams!

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CHAPTER MARKS
1 8
2 12
3 7
4 18
5 13
6 12
TOTAL 70
 Read the case study before you answer
the questions.
 Read each question carefully.
 Pay attention to the key words.
 Read the question again after you have
answered it.
 Answer all the questions!!
 Please contact the exam department for
information regarding the venue, time
and date of the exam.
 Please read my Studies @ Unisa for
contact details and more information
about the rules and regulations
concerning examinations.
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 Follow the instructions on how to complete your
personal details on the mark-reading sheet.
 Unique number: On the cover page of the
question paper – correct code!
 PLEASE follow the instructions on how to
indicate your answers on the mark-reading sheet!
 Please refer to the exam slides on myUnisa:
Additional resources (podcast slides).
 Please watch the video clip (podcast) on
examinations.
 Examples on myUnisa: Official study
material (only 2012 exam papers are
applicable).
 BUT: We do NOT repeat exam papers.
 The exam paper will be in the same
format as Assignment 02 (NOT the
same case study and questions!)
A. Tutorial 201/3/2013
B. Additional information
C. Examples of questions
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 Supplementary examination A. Tutorial 201/3/2013

 During next examination period
 Examination periods B. Additional information
○ May/June
○ October/November
C. Examples of questions

 Scope
 There is no scope – you have to study all
the chapters!!

ENTREPRENEUR SMALL BUSINESS INTRAPRENEUR

 An employee that is creative and MANAGER
innovative and responsible for the
growth of the enterprise, is known as … MAIN CHARACTERISTICS

1) a small business manager. Starts and manages own Manages an enterprise Employee with
enterprise (owner) (owner) entrepreneurial abilities
2) an entrepreneur. Takes risks Carries financial risk. Do Do not want to take risks
3) an intrapreneur. not take new risks.
Creative and innovative Run enterprise in same Creative and innovative
4) a franchisor. way as predecessor. No
creativity or innovation.
Responsible for growth Does not ensure growth Responsible for growth
(only profit and survival)

 A business that manufactures shoes and BRANCH OF INDUSTRY PRODUCTION BRANCH

sells it directly to the consumers, can be All enterprises that produce/sell All enterprises that use more or
more or less the same less the same production
classified under the … production product/service. processes.
branches.
EXAMPLE EXAMPLE

1) manufacturing and service Gold mines produce the same All mines use same production
product – Gold. process – extraction of natural
2) commercial and service resources through mining.

3) manufacturing and commercial

4) shoe manufacturing and shoe trading

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 An entrepreneur would use a … to
develop and evaluate his or her potential
business idea.
1) feasibility study
2) viability study
3) market analysis
4) bow-tie diagram
 The entrepreneur has to determine
when and how often consumers would
buy his or her products. This is an
example of the … segmentation of the
total potential market for the product.
1) geographic
2) demographic
3) psychographic
4) behaviouristic
 The executive summary should …
1) be written before the entrepreneur compiles
the business plan.
2) contain a short summary of the highlights of
the business plan.
3) contain a long description of the potential
target market.
4) include a full set of financial statements.
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 Used to develop and evaluate the
business idea further in terms of:
 The essence of the idea
 The possible combination of ideas
 The possibility of taking a new direction with
the idea
 GEOGRAPHIC – Location, such as Cape Town.
Where are the consumers? Where do they stay?
 DEMOGRAPHIC – Features such as age,
gender and race. Who are the consumers? What
is their income?
 PSYCHOGRAPHIC – Personality or lifestyle.
What products do they buy? What do they like?
 BEHAVIOURISTIC – Customer behaviour. When
do they buy? How often do they buy?
 Written after the business plan has been
completed
 Inserted before the description of your
enterprise
 Short summary of the highlights of the
business plan
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 The prospects of financing of a Forms

partnership would …
1) depend on the creditworthiness of the Characteristics
partnership.
2) be better than those of a private company. Factors influencing choice
3) depend on the creditworthiness of the
partners.
Procedures - Registration
4) depend on the creditworthiness of the
shareholders.

 Nature of the products or services

 Liability of owners
 Tax obligations
 Legal requirements
 Need to involve third parties financially
 Legal personality
 Continuity of the enterprise

Consult pg 101 in the prescribed textbook.

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