Write an assignment about Business Plan


SKU: Repo1007389 Category:
  • Start up expenses to open this store
  • Industry Activities for pizzas


Market Feasibility

1. What is the size of the market?

2. What is the growth rate of the industry?

3. Is the market at full capacity?

4. Where are customers getting the product now?

5. Where are the customers?

6. How many would purchase from you?

7. What external factors come to bear? Government, Industry Dynamics

8. How long will this opportunity last in the market? (Window of Opportunity)

9. What keeps new competition from entering this market? (Barriers to Entry)

Technical Feasibility

Questions to Answer

1. What are the options for developing the technology (customer, off the shelf, design yourself, subcontract)?


2. What are the options for producing the product or service?

• In House

• Subcontract

• License

• Joint Venture or Partnership

• Combination


3.What are the options for Sales and Distribution?

• In House

• Whole Sale

• Distributors or Sales Representatives

• License

• Joint Venture or Partnership

• Combination


4.What resources are required for development and are they available to you (skills, raw materials, components, suppliers, facilities & equipment)?


5. What are the laws and regulation relating to the business?

• Industry Standards or Regulations (Dangerous Goods, (Canadian Standards

Association – CSA), ISO

• Personal Certifications

• Intellectual Property (Patents, trademarks, copyrights)

• Environmental Liability

 6. Has the research discovered any moral or ethical issues that you are uncomfortable with?


7. What technological changes are changing or emerging that may affect the business?

Financial Feasibility

1.What are the projected Revenues from the sale of your product or service?

• From the Market Research, what is the projected sales volume in "units sold? and in “dollars sold”?

• From the Market Research, what is the selling price per unit?

• What is the total expected revenue?


2. What are the financial dynamics and opportunities?

• Costs Structure (per unit basis)

– Price per unit minus

– Variable Costs (Cost of Goods Sold & Controllable Costs) per Unit equal

– Gross Margin per Unit minus

– Fixed Costs per Unit equal

– Net Margin per Unit


3. Is it worthwhile financially?

• 1 Year Monthly Cash Flow Statement. (Completed in a spread sheet format so it can be built upon with new information)

• Ensure that you clearly show all assumptions for this statement.


4. How much investment is required?

• One Time Assets and Startup Expenses

– Plant & Equipment

– Leasehold Improvements

– Initial Inventories

– Research & Development

– Legal

– Experts

• Operating expenses prior to break even


5. What are the financial risks?

• Break Even Analysis Units to break even. (Total fixed costs from Income statement divided by Gross margin per unit) Figure out on a monthly basis.

• Payback (Investment required divided by net margin per unit – Date when units calculated above are sold & collected.)

• Return on Investment (Yearly Net Profit divided by Total Investment required)

• Risk vs. Reward (Personal feelings of the risks and rewards)

• Opportunity Costs (Can you get a better return somewhere else?)

• Personal Financial Risk (What will you have to give up. Sign over mortgage etc.)


6. What are the possible sources of financing?

• Chances of getting the money?

• What will you have to give up?

7. General Financial Numbers that would indicate attractiveness of Venture

• Gross Margin 20 – 30% plus

• Net Profit Margin – 10 to 15%. Plus

• Return on Investment – 15% plus

• Payback – 3 years or less.

• Break even – 2 years or less

• Note: These numbers must not be looked at in isolation over a one year period.

You need to look at the numbers over a 3 year period and as a whole, not just individually. Industry averages can be quite different.

Human Resource Feasibility


1. What technical and management experience is required?


2. Who are the owners and what are their roles? (Entrepreneur, Manager, Tech. Expert)


3. What is the ownership structure?


4. What are the manpower requirements?

How will you find the right employees?

How will you compensate employees (pay for time, for production, for knowledge,or a combination)?

How will you motivate employees?

What training will they need on an ongoing basis?


5.What is the company’s growth strategy?

How will quality be managed and maintained÷

How will organisational structures change with growth?

What career paths will employees have available?



Part A: Introduction to the business plan
  • Explanation of the business idea


Part B: Business plan analysis

  • Discussion of the market feasibility of the business idea
  • Description of the technical feasibility of the business idea
  • Description of the human feasibility of the business idea


Part C: Financial Analysis

  • Identifies the resources needed for the business venture


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