SOLUTION: SIS50115 Diploma of Sport and Recreation Management : Develop a Financial Plan

Task:

Part A – The Executive Summary

The Executive Summary is typically completed last, after you have finalized each element. The purpose of the Executive Summary is to give you a snap shot of the entire business plan.

Ensure that your Executive Summary also includes a brief description of the type of the business you have chosen (this could be a real business or a hypothetical one). Your business could be:

An indoor or outdoorfacility
A sportscomplex
A personal trainingbusiness
A community recreationcentre
A fitnesscentre
A specific sport or recreationservice

Your Executive Summary should include:

Vision
Legalstructure
The products and services you willoffer
Your customer (targetmarket)
Your unique selling point and positioning in the market (i.e. what makes you different fromyour competitors)
Financialprojections
Goals and plans for thefuture

Part B – Products and Services

In this section, you will provide an outline of the products and services you plan to offer. In your outline you will describe:

Features
Benefits
Cost and saleprice
Substitutes in theindustry

Part C – Market Analysis

Complete a market analysis that identifies factors impacting on the direction and performance of the business. Ensure that you include the following:

Description of themarket

The key characteristics of the industry you operatein

Majortrends

Competitor analysis

SWOT analysis

If you are completing a business plan for an existing business, you should also

Evaluate the effectiveness of previous business planning to identify lessons learned

Analyse current key products or services and major markets for strengths, weaknesses, opportunitiesand threats
Evaluate performance against previous objectives, targets to identify critical success factors, andareas for improvement

Part D – Marketing Plan

The marketing plan is an essential component of your business plan. You can use your existing Marketing Plan for this section, however, because it is part of the business plan you will need to summarise key elements rather than submit the full detail. The items you will need to address are:

Target Market
Pricing
Promotional strategies
Distribution methods/location ofbusiness
Sales plan including targets and forecast sales (http://www.business.qld.gov.au/business/support-tools-grants/tools/business-planning-kit p13 has a useful tool for this purpose)

Part E – Operations

Operations plans differ greatly from one business to the next. For the purposes of this plan, your operational plan needs to include the following:

Physical resource requirements and plans foracquisition
Human resource requirements and plans foracquisition
Consultation plans to ensure operational planning is conducted smoothly (i.e. who do you have to share information with)
Production processes (ifapplicable)
Plant and equipment ifnecessary
Stock and inventoryrequirements

Part F – Financial Plan

Your financial plan explains not only how you will finance your business, but also how you plan to keep it running. You will need to develop a financial plan which includes the following:

Start-up finance
Running costs
Projections including break even and profit

A good tool to help you do this can be found on page 6 of the Business Victoria business plan template at http://www.business.vic.gov.au/operating-a-business/how-to-start/business-planning

Part G – Control and Evaluation

In this section, you are required to:

1. Explain how you will monitor and control performance

Some of the ways you can monitor and control performance are:

Communicate business plan to all relevant parties and ensure understanding of performance requirements andtimeframes

Ensure skilled labour is available to implementplan

Test performance measurement systems and refine, ifnecessary

Ensure timely reports on all key aspects of the business are available, user-friendly and balanced in terms of financial and non-financialperformance

Report system failures, product failures and variances to the business plan as theyoccur

Analyse performance reports against plannedobjectives

Identify areas of under performance, recommend solutions, and take prompt action to rectify thesituation

Ensure groups and individuals contributing to under-performance are coached, and provide training whereappropriate

Review system processes and work methods regularly as part of continuousimprovement

2. Outline how you will measure your performance

Outline how you plan measure performance and the tools you will use in your evaluation. You will need to incorporate appropriate metrics to review performance against objectives.

Develop performance objectives and measures for your business. These may include:

efficiencymeasures
input measures such as staff time or dollarsallocated
outcomesmeasures
qualitative indicators such as feedback from customers, effect on the wider market orcompetitors, staff reports
quantitative indicators, such as numbers produced and sold, turnover, customer satisfactionranking, lower staff turnover

Depending on the business type you are planning and the objectives you set, your productivity and performance targets could be related to:

community awareness orbranding
environmentalimpact
governance ormanagement
quality
sales
triple bottomline
workforce

Ensure that you provide a clear explanation of why you have chosen these measures for your business. You will need to explain how you will compare actual and planned results.

3. Develop a risk management strategy to identify risks and manage contingencies

You should also consider contingency planning and risk management. There are a number of possible risks to your business. Outline what these risks are and how you plan to manage them.

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