Develop and

implement
business plans

BSBMGT617
 • A business plan is a strategic written document that
describes an organisation’s services and products.
• It details the leadership and staffing as well as the
What is a financial status of the business and how it will earn
Business money.
• An operations model is an essential tool for both the
Plan, and operation and success of the organisation.
what is its • While existing businesses can update a business
plan to reflect any change of direction or strategy, it
purpose? is often used in the start-up process for a new
business.
• Business plans mostly cover the first three to five
years for an organisation.
 Funding required Best location to
to start the maximise business
business opportunities
What is the
purpose of
Competitive
the Business Business
Competitors
advantages and
disadvantages
Plan?
Facilities and Employees
equipment needed required and what
for operation they will do
 • Identify organisational and legislative
frameworks relevant to development of a
business plan
CHAPTER • Review market requirements for the
1: organisation’s products and service
• Identify and assess business requirements,
ESTABLIS objectives, competitors and established plans
H • Develop performance objectives and measures
for business plan, in consultation with relevant
BUSINESS stakeholders
PLAN • Identify financial, human and physical resource
requirements for the business
• Develop business plan.
1.1 Identify organisational and legislative frameworks
relevant to development of a business plan

When developing and

implementing a business plan
for new business, the founder or
owner needs to consider their
legal requirements and
obligations to their employees
and customers.
They must assess what permits
or licences are required to
operate, as well as what is
needed for providing products
and services to their customers.
How to identify the organisational and legislative
frameworks

Analyse business Analyse the legal Identify the

structure and the requirements for obligations under
key obligations the business Fair trading laws
1.2 Review
market • An initial starting point in writing a business
requirements plan is to evaluate your business operations
– the core activities of the business and the
for the products and services offered by the
organisation’s organisation.
• After identifying the products and services,
products and you then need to review the marketing
service requirements.
 A customer profile is This includes
a description of the evaluating the
ideal customer of the following elements of
organisation. the customer profile:

Customer
Profile Demographics Socioeconomics

Psychographics
 Demographics Socioeconomics
Elements of a
Customer
Profile
Psychographics
 When reviewing marketing requirements, there
are certain aspects that you will need to look at to
decide what ways you will use.

Market There are primary and secondary sources that you

research can gather information based on quantitative and
qualitative needs of your customers, the market as
methods well as your competitors.

These can be used in a combination of research

methods to provide the results your organisation
requires or needs.
Primary research

• Primary research, also known as ‘field research’, is a way of gathering

original information directly for your purpose, rather than from
published sources.
• Fundamental research includes:
• surveys
• direct observations
• focus groups and interviews conducted by you or your market
researcher.
 • Secondary research, also known as ‘desk
research’ is a way of gathering existing
information through available sources.
• Secondary research examples include:
Secondary • internet information
research • market research results that already exist
• stock lists and customer database
• information from industry bodies, local
councils, government agencies and libraries.
 Quantitative research gathers numerical data which
includes:
financial trends

Quantitativ sales figures

e research industry product sales numbers

surveys on customer return frequency

online or phone surveys and questionnaires.

Qualitative research

Qualitative research gathers views and attitudes, which

include:

formal and informal feedback from customers about their

satisfaction with your business’s products and services

visits and reviews of competitors to understand their

outcomes and customer service satisfaction

focus groups to understand the feelings and attitudes of

existing and potential customers towards your products
and services.
 Promotion and Customer
Leading customer
advertising satisfaction
research methods
analysis studies

Methods of Consumer
decision process Ideas testing
Positioning
research
customer research

research
Brand or label Customer service
Price testing
testing audit

Social media
Mystery shopping
monitoring
 Whether a business is new or
1.3 Identify and existing, It is crucial for managers
to review and evaluate any pre-
assess business existing strategic, business and
operational plans.
requirements,
objectives, For existing businesses, there may
be possible changes in the
competitors and organisation’s direction, and
established plans management needs to assess
whether current business goals are
still ongoing and appropriate.
 • Competitors are an essential and inevitable
Identify and part of the business world, no matter the
size of the organisation.
assess • They are a necessary evil that a business
business should be aware of and include as part of
their ecosystem.
competitors • Competition can be a useful tool for the
growth and improvement of your business.
Steps to Identify your
Gather information
about your main
competitors
conduct your competitors

own
competitor Analyse the
competitor’s
Identify your
competitive
analysis strengths and
weaknesses
advantage
1.4 Develop
performance
objectives and
measures for • Performance Goal-Setting

business plan, • When developing a business plan, an

organisation can build performance goals
in consultation that enable employees to plan and organise
their work by achieving predetermined
with relevant outcomes or results.
stakeholders
 • Develop their job knowledge and skills which will
assist them in taking on additional responsibilities,
or pursue their career aspirations and thrive in their
workplace;
• Support or advance the organisation's vision,
mission, values, principles, strategies, and goals and
Results that objectives;
include: • Collaborate with their colleagues and key
stakeholders with greater transparency, mutual
respect and understanding;
• Plan, develop and implement successful projects
and initiatives; and
• Remain resilient when issues or roadblocks arise
and learn from these setbacks.
 • Reasons for pursuing their particular goals;
• Potential stakeholders or others that may be
Effective affected;
• Intended outcomes or results and how success will
analysis of be measured;

goal-setting • Aligning goals and objectives with an organisation's

vision, mission, values, principles, strategies;
• Possible issues or roadblocks that may arise along the
way;
• Resources or capabilities needed, wanted, and
available.
 • Critical Success Factors (CSFs) are related to
the strategic goals of the business.
• They're the essential areas of activity
Critical that should receive constant and careful
attention from management.
Success
• They must be performed well if you're to
Factors achieve the business's goals.
(CSFs) • Set between four and eight CSFs in order to
be effective in implementing change.
• When starting to use CSFs, consider selecting
the most meaningful and easiest to assess.
 Stakeholder consultation is one of the critical factors in
the development of performance objectives and
measures.

Stakeholde It is through listening to stakeholder concerns and

feedback that an organisation can build a constructive,
r productive and valuable relationship of mutual benefit.
Consultatio By identifying current trends or future challenges that
n may have an impact on the organisation.

You can form the basis for future collaboration and

partnerships that will enable you to improve project
design for the required outcomes or results.
The Consultation Process

• The consultation process is an opportunity for

stakeholders to receive information and given a
chance to educate the organisation on the local
context of a project.
• It is a chance for stakeholders to raise issues and
concerns, ask questions and potentially help shape
the plan by making suggestions or presenting ideas
for the organisation to consider and respond.
• This process should include clear objectives about
what is achievable.
 • Strategic planning to identify resource
1.5 Identify requirements
financial, • Strategic planning is used by an organisation
human and to develop their scope and direction over the
long-term.
physical
• It is through the configuration of resources
resource that an organisation can meet the needs of
requirements market challenges to provide advantages in
for the fulfilling their stakeholder, employee and
customer expectations.
business
Resource Financial resources
categories to meet
Human Resources
the needs of the
strategy Physical resources
 • How to write a business plan
• Business planning is crucial for the success of
any organisation as it provides direction,
keeps you on track and is usually a
requirement when you seek finance.
1.6 Develop • You should research the feasibility of your
business new business.
plan • There are specific steps required for the
various areas of information based on the
structure and type of industry, and this
should be included in the writing of your
business plan.
Tips for writing your business plan

Who is the
Research Start to finish Help
plan for

Expected vs.
Summary Review
Actual figures
 Title page

Business

Market
What to include in Future
a business plan
Finances

Documentation

Summary
 • Communicate business plan to all relevant
stakeholders
CHAPTER • Confirm skilled labour is available to
implement plan
2: • Test performance measurement systems and
IMPLEME refine, where required
NT • Prepare reports on key aspects of the
business
BUSINESS • Report system failures, product and service
PLAN failures and variances to the business plan as
they occur
2.1 • Communicate your business plan
Communicate • During the development phase of the
business plan to all business plan, it is important to have
effective communication strategies in place.
relevant
• This will help to keep the employees up-to-
stakeholders date and well informed about the business
and its strategy for achieving its’ goals and
objectives.
 • It is essential to review your communication
strategy.
Reviewing • This is to ensure that the internal
communications during the implementation
your of the business plan have the intention to
communicatio convince employees about their importance
n strategy and relevance of business plan’s strategic
goals and objectives and the roles and
responsibilities of the team members about
them.
 Ensure that simple, strategy-specific and inspiring messages are linked to your
purpose and easy to relate to.
Keep all communications simple, well-articulated and exciting.

Tell the ‘why’ as well as the ‘what’ and ‘how’.

Avoid sending out too many messages

Communicatio Ensure your themes and contexts are overarching

n approaches Organisational leadership

Use a specific framework and schedule for your different communications

Reinforce a vital message to increase motivation and instil belief and understanding

Encourage the validity of your approach and the importance of employees’ roles for
successful implementation and choose methods of communication
Communicate inauthentic, ‘real’ terms and avoid ‘corporate speak’
 Meetings
Different methods Newsletters
of communicating Company’s intranet or website
a business plan
Presentations

Conference calls
2.2 Confirm • The human resources or skilled labour are
skilled the most important component to the
success of any business.
labour is • The success and failure of any organisation
available to depend upon the quality of skilled labour
available for its business operations.
implement
plan
Why is having a skilled workforce essential?

• Every organisation needs a skilled workforce.

• Having access to well-trained staff who has the ability to adapt to different
situations and tasks will ensure that the company maintains a high level of
performance irrespective of the different challenges that the business
operations or the industry present.
Benefits of • Increased productivity
having skilled • Improved innovation and creativity
labour/workforc • Financial benefits
e • Increased profitability and stronger growth
• Improved health and wellness in the
workplace
How can you • There are two ways you can ensure the
ensure the availability of skilled workplace to
implement the business plan.
availability • These are as follow:
of skilled • Hire skilled workers or
workplace to • Train current employee for the skills you
implement need

the plan?
2.3 Test • What are business performance measures?

performance • Business performance measures are a range of

quantifiable metrics taken from many sources
measurement that along with a relevant and appropriate
analytical process, allows the management team
systems and to track and assess the current progress or
status of a specific business, project or process.
refine, where • These performance measures may be compared
required with pre-set goals and objectives or form the
basis of a scorecard that assesses financial or
non-financial performance in the four primary
areas of commercial, internal processes, learning
and growth, and customers.
 • The purpose of business performance measures
is to help managers to interact on a daily basis
What is the in the decision-making process at a high level to
purpose of inform learning in the business strategy.
• These measures are used by business to initiate
business improvements and to help management focus
performanc resources on achieving their key targets, goals
and objectives.
e measures? • To provide information for management about
their past position and their future direction, as
well as if and when something has gone wrong
and when the business has achieved its goal.
 Budgeting

Key performance indicators (KPIs)

Tools used
The balanced scorecard
in business
performanc Benchmark
e measures Six-sigma tool

Customer relationship management (CRM)

People performance data

 • When it comes to the financial performance
of your business, it is critical to monitor a
wide range of 'performance indicators' to
2.4 Prepare ensure that appropriate, relevant and timely
reports on decisions and plans can be developed,
updated and implemented successfully.
key aspects • Owners and directors should place particular
of the emphasis on receiving regular reports on
sales, profit margins and cash flow as these
business are the main three aspects and form the
financial lifeblood of any business.
Some essential KPIs that should be assessed and
monitored

Gross profit Breakeven Current Interest

margin sales ratio coverage

Return on Debtors’ Stock

Debt/equity
investment turnover turnover
 • When it comes to the failure of a business,
there can be many and varied causes which
2.5 Report could come from both the external
system environment and from factors internal to the
failures, business.
product and • External reasons are not natural to predict
service failures and can be harder to be seen in advance.
and variances • It is also quite rare for one single factor to be
involved in the failure of the business as
to the business often it will be many causes coming together
plan as they at the right time to detract from the success
occur of the business.
 • Poor Management
Internal • Deficit in Accounting
causes of • Poor cash flow management
business • Inappropriate sources of finance
system failure • Dependency on customers or suppliers
• Impending bad debt
• Overtrading
• Poor marketing and research
• Fraud and Collusion
 A variance report compares
planned financial outcomes with
the actual financial outcome.

Variance report Variance is the difference

between the budgeted/baseline
goal and the actual reality.

This can be expressed as a per

cent or a dollar figure.
How to write a variance report:

Collect and
Determine Explain
organise
Collect and organise the Determine the variance in Explain the variance
data you wish to analyse separate columns
in a spreadsheet
CHAPTER 3: RESPOND TO
PERFORMANCE DATA
Analyse performance Review performance Identify and coach
reports against indicators and refine, under-performing
planned objectives where required staff

Establish ongoing
review processes
 • Businesses can use analytical reports to
gather the information that enables
management to understand the
3.1 Analyse organisation’s performance and assist in
formulating or achieving business goals as
performanc per the planned goals and objectives.
e reports • With adequate and effective Business
against Performance Reporting and Analytics
solutions can be an excellent source for the
planned foundation for building your customisations,
objectives which can offer better solutions that cover
several intuitive and essential features and
can help save your business a lot of time.
Five key Profit and
Liquidity
reports that Ratios
Loss
Statement
need to be
analysed to Look for
Balance
new
measure customers
Sheet

business Cash Flow

performance Statement
 • Key performance indicators (KPIs) is a
commonly used tool for most businesses and
3.2 Review as such measures the level of customer
performanc satisfaction and gauges business
performance.
e indicators • This information is often entered into a
and refine, computer application which will graphically
display the status results which the business
where will use in determining if it is meeting
required business goals or failing.
 Responsibility

Measurement Frequency
Review
performance Benefits

indicators Considerations

Review your strategy if necessary

 • Improve conversion rates by driving new
customer-focused business initiatives
• To grow brand passion and loyalty by
Steps to creating a “customer first” culture
refine your throughout your organisation
business • For future acquisition efforts, share your
progress and successes with key
strategy stakeholders to build support for the
organisation.
 Performance management is an
essential part of a manager’s
responsibility.
3.3 Identify The managers must identify
and coach
underperformin
underperforming employees.
g staff
This is essential to ensure that the
team and organisational objectives
are achieved.
 Identify the reasons for
Identify underperformance
Basic steps of
managing
poor
performance
Provide coaching to address the
Provide areas of underperfroamce
Coach underperforming staff

Explain Explain what needs to change.

Confirm Confirm the understanding of the employees

Discuss Discuss ideas for potential solutions and approaches

Recognise Recognise positive efforts

3.4 Establish ongoing review processes

• Performance review benefits

• Staff performance reviews allow for the acknowledgement, recognition
and validity of your team members in clarifying their roles and identifying
training and development needs.
• It also creates an environment and culture for open communication and
discussion in your business.
 • Influence workplace relationships with a
culture that recognises achievement and
values accountability, and reward staff who
are bringing value to your business.
How to find • Identify training and development needs and
help staff plan their career development.
out who is • Use review processes to evaluate
doing their performance and behavioural issues and
take steps to address them.
job
• Set targets for staff performance that helps
you address poor performance and reward
staff on their effectiveness.
Any Questions?