Part A.

Answer only two (2) questions below which are most appropriate to your
business plan context. You are required to make the following assessments and
review of your business plan.

1) You are needing to make capital investment for your business, explain the
timing of when this investment will be made in the five (5) plan for your business.
(10 marks)

The total capital investment of Grace’s Green Haven towards the farming business can
be calculated as follows:

Description Cost (AUD)

Loan 50000

Land preparation 10000

Fertilizer 2000

Seeds 2000

Infrastructure 5000

Fuel pump 450

Water pump 500

Total 69950

The cost of the total capital investment is 69950 AUD. This is a major cost for the
business, however, the land is permanent and the infrastructure, fuel pump and water
pump is a long-term investment that will allow to expand the business and service
offers.

2) How will you refine the business strategic goals, targets and the direction of
the business after a significant downturn after the first 12 months of operating?
(10 Marks)
1. Study the overall market.
2. Develop departmental goals.
3. Identify staffing, budgeting and financing needs.
4. Identify the needs of your customers.
5. Identify and evaluate your competitors.
 6. Address the individuals needed to achieve goals.
7. Assess the financial results.
3) Identify some clear and measurable indicators of operational performance of
your business after 24 months? (10 Marks)

● Growth in Revenue
● Net Profit Margin
● Gross Profit Margin
● Operational Cash Flow
● Current Accounts Receivables
● Inventory Turnover

4) Explain how you will monitor your business plan to identify strengths,
weaknesses and areas for improvement, after the first 24 months of operation?
(10 Marks)

Regularly assess the performance against the plans and targets that have been set,
whether it meets our objectives. By this assessment, it will help the discussions with
banks, investors and even potential buyers of your business. Regular review is a good
vehicle for showing direction and commitment to employees, customers and suppliers.

5) Since the start of the COVID-19 crisis, consumer demand for fruits and
vegetables at wholesale and retail level has been steadily increasing and remains
strong and has recently experienced a certain level of stability. What are the short
term and long-term impacts on your business during this crisis, assessed using
the following criteria, related to your “operational plan”? (10 Marks)

i. Supply chains (inward and outwards)

ii. Additional costs/ economics impact – sourcing farm labour
iii. Pricing
PART B. Answer all questions below. There are no word limits, you may choose
to answer them in essay form or a report format or a simple dot point format.

6) Rewrite a revised cash flow scenario / projection for the after 48 months years
taking the following factors: (25 Marks)
● Calculate the owners’ equity, and calculate break-even point. Calculate a
balance sheet at the end of 6 months for your business, Balance Sheet:
Asset = Liability + Equity. (5 Marks)
● Labor costs have increased by 4.5%, you must now review your financials
at the end of Year 4. Identify the key constraint concept that you will use to
improve profitability for your business. (3 Marks)
● reduction of the export market if you are going to export your goods to
overseas countries/ other states by 50%, this also influences the imports of
raw materials and agricultural machinery costs, being reduced. (3 Marks)
● Complete the gross margin sheet attached in appendix 1, on the proviso
that this is for your business, based on 5 Ha under Cravo production. (14
Marks)

7) List five (5) key financial projections you need to include in your financial plan
and briefly explain why each key financial projection is important, in the
functionality of your business plan. (10 Marks)

The income statement, expenses budget, breakeven analysis, balance sheet, and cash
flow statement should all be forecasted in financial projections.

Income statements are the revenues, costs, and profit for a certain period are all
shown on your income statement. The majority of your forecasting should be done here
if you're creating these forecasts before launching your company. An expenses budget
enables you to monitor and more clearly comprehend if your company generates
enough income (incoming money) to cover its costs. Making better financial choices
with the aid of a budget is possible. Breakeven analysis aids in identifying cost
structures and the volume of units that must be sold to generate a profit or pay costs.
The balance sheet will show the net value of your company at a certain point in time. It
is a list of all the financial information about your company divided into three categories:
assets, liabilities, and equity. You may use a cash flow prediction to determine when it
would be wise to invest in your company's cash flow and when it would be better to start
saving. Cash flow may also show a loan officer or investor that you are a good credit
risk and that, if granted, you will be able to repay a loan.
8) As the owner of your business, you should stand back occasionally and review
your business' performance. When reviewing your existing “business plan” what
key areas would you evaluate and how? (10 Marks)

In analyzing my current business plan, I will concentrate on the executive

summary, company overview, management team, sales and marketing, competitive
analysis, and financial plan. I will evaluate the business's success, determine how you
can capitalize on the market position you've developed, and determine the next steps
for your company. I will reread and revise the business plan in light of my new approach
and ensure that I include the trends I've seen.
By doing so, it will guide me through this critical process, outlining the steps I
should take to evaluate the performance of my firm, emphasizing its strengths and
areas for development, and recommending the steps required to make the identified
changes. A good place to begin the assessment is by evaluating the activities - the main
activities, the items or services that we produce or supply.

9) Key performance indicators are one of the most common methods of

monitoring performances within the business. Please list all the KPIs that your
company will monitor to keep the business plan on track to your business’s
performance. (5 Marks)

1. Customer Satisfaction
2. Internal Process Quality
3. Employee Satisfaction
4. Financial Performance Index
5. GNP (Gross National Product)
6. ARPU (Average Revenue Per User)
7. Longitudinal (trend over time)
8. Made up of smaller components (regional, industry)