>> Business Management
ASSESSMENT TASK 1 - BUSINESS PLAN
PURPOSE - This scenario requires you to research and apply the essential knowledge required to develop a basic business plan that addresses strategy and risk; outlines operational, marketing, and financial plans, and incorporates the legislative requirements to set up a natural therapies practice.
Practical application of the theory is designed to demonstrate your ability to identify and effectively manage the tasks and contingencies required to establish a business.
ASSESSMENT TASK - You will soon be graduating, and intend to set up your own practice. Expanding on the knowledge you have gained throughout your study, and strategies you have developed in Assessment Task 1, prepare your business plan.
This is intended to be a professional, working document that you can update, and present to financial lenders to source any external funds you many need to access to set up your business.
Using the recommended sources listed in the instructions, in 2000 - 2500 words develop a basic business plan, which complies with the statuatory and regulatory requirements applicable to natural therapies practice in your state/territory:
Your plan must include the following. You should use these headings and aspects covered as subheading in your business plan:
Table of Contents
1. Executive Summary
A snapshot overview of the business (less than one page), that gives a brief description of the business, industry, market, future plans, and finances.
2. Business Details
- Business type and legal structure, licensing and registration
- Vision and Mission Statement, Values
- Goals and objectives
- Industry and market overview including brief competitor analysis
3. Risk Management Plan
- S.W.O.T. analysis
- Insurance requirements
- Regulatory compliance, legal and ethical considerations
- Workplace Health and Safety - hazard identification and risk minimisation strategies
4. Marketing Plan
Identify your target market/s and briefly describe them in terms on market size, potential and key features (demographics, lifestyle, values etc.)
What are their key wants and needs?
What communication channels and methods would you use to reach your target market/s?
- Product - what services and products will you offer them?
- Placement - what are your distribution channels? E.g. direct purchase from practice only, online, wholesale?
- Pricing - what is strategy?
- Promotion - what is your advertising and sales strategy? What low-cost promotional strategies will you use, for what purpose and when?
- Positioning - how will you differentiate your practice from others that are similar? What is your unique selling proposition?
- People - describe the skills and experience of your people? What are the core values? What sets them apart?
5. Operational Plan
- Management structure and key personnel - who does what?
- Location of premise/s - identify any regulations, licensing or planning permits required
- Inventory / stock control strategy
- Required technology - hardware and software
- Trading location/s and hours
- Communications channels (contact methods)
- Payment options, billing and accounting policies (e.g. HICAPs, credit card payments)
- Professional memberships, networks and / affiliations applicable
- Contingency plan for when operations might be disrupted
- Identify key policies and procedures required for ensuring legal, ethical and regulatory compliance
6. Financial Plan
- Description of financial considerations including:
- Key financial goals and objectives
- Start-up costs - estimated expenses
- Fixed and variable expenses for first 12 months
- Revenue projections - forecast your first 12 months of appointment fees and product sales
- What assets you have / business funding you have secured
- Identify potential sources and costs of finance, and who you should consult for financial advice
Include any financial calculations / draft reports; charts / tables etc. that are relevant to your assumptions, objectives or goals.
Acknowledge the original source of information you have used and adapted, using APA6 format.
PRESENTATION REQUIREMENTS -
Instructions on how to format your response:
Formal report using the suggested headings and content requirements.
Table of Contents
- Executive Summary
- Business Details
- Risk Management Plan
- Marketing Plan
- Operational Plan
- Financial Requirements
ASSESSMENT TASK 2 - CASE SCENARIO
PURPOSE - This scenario requires you to research and apply the essential knowledge and skills required to assess an opportunity, develop and implement appropriate financial, operational and human resource management strategies, policies and procedures.
Practical application of theory contextualised to natural therapies practice, and a range of relevant situations is designed to demonstrate your ability to identify and effectively manage the tasks and contingencies required for sustainable business growth, legislative and regulatory compliance.
ASSESSMENT TASK - SCENARIO
You have been in business for almost two years, have been enjoying steady growth, have broken even and sales volumes and values continue to increase. Congratulations!
Working families seem to be a growth market, as you've noted a strong and growing demand for consultations, tailored eating plans for busy mums - for themselves and their children. You believe that this market represents significant opportunity, and would like to expand your product offering to include Skype consultations for follow up consultations, and a set of eating plans with healthy, easy recipes.
You recognise that this is going to require significant investment - both time and money; add a lot of operational complexity and risk. To determine whether or not this is a viable business opportunity, and if so, the likely return on investment, the first thing you need to do is review and, where appropriate update your business plan.
The next step is to develop implementation (or action) plans.
Part A - Business and Marketing Strategy
1. Research the family market segment in Australia, and write a revision to the business plan that updates the target market segment market size in terms of people and potential in terms of estimated spend on health and wellness per annum).
Their key features (demographics, lifestyle, values etc.), wants and needs.
How your new product and service offering can meet and/or create wants and needs.
Identify or make assumptions on their social habits and media consumption to identify the most relevant communication channels and methods to reach and engage them.
2. You can achieve your business and marketing objective of growth through any/all through market penetration, market development, product development and diversification. The concept you have in mind covers all of these.
Write three (3) new business goals using the S.M.A.R.T principles that you wish to achieve within the next twelve months.
For each goal, provide two (2) practical examples of how you will monitor your progress and measure the success.
3. Conducting an initial market scan and competitor analysis, you have identified 'Naughty Naturopath Mum' as your primary competitor for essences. Continue your scan and determine who your primary competitor is for meal plans and recipes. After reviewing the competitor's product range, and marketing strengths and weaknesses:
State who they are, and which product/services will compete directly with yours. Include the URL, and any images or marketing executions in the Appendix.
Write a brief vision, product description and positioning statement (150-200 words) that includes how you will price and deliver (e.g. subscription, download) your new range; and what your point of difference or unique selling proposition is.
Draft an action plan for your product launch that includes:
- Marketing campaign and execution budget
- Resources required
- Inventory management
- Time frame
- Roles and responsibilities
Part B - Operations and Human Resources
4. Make a list of business areas or activities that require review or development of policies and procedures to ensure that your new products and services are compliant with the following regulations?
a. Therapeutic Goods Act
b. Consumer Protection Laws
c. Privacy Act and National Privacy Principles
d. Anti-Spam Act and Direct Marketing Code of Practice
e. Child Protection Act
f. Anti-discrimination Act
g. Copyright and Trademark Laws
h. Environmental Protection Act and sustainability principles
i. Public liability and indemnity insurance
5. You recognise that you need support as well as additional funds, and will benefit greatly from professional advice on business expansion. Develop an action plan for identifying and meeting with appropriate organisations and/or individuals. This can be in bullet point form, and must include:
Who you want meet with, how your will initiate contact, and how/where you will meet
The purpose and objectives of the meeting
The agenda or key discussion topics
What resources you will need to prepare
6. You want to be hands on with product management and continue face to face consults, and know that you will only be able to maintain quality (and keep your sanity) if you enlist help. You are happy to hand-over some of the administrative tasks including order packing and dispatch, reception and finances; and are also considering the need for another Naturopath.
Make an assessment considering the scope of work, and available finances of how many people you need for what roles. For each role, briefly (50 - 100 words per answer):
a. List the minimum requirements for education, experience, skills, and attitude.
b. State if you would employ and/or contract them; and/or if a partnership meets your business goals and objectives.
c. List the applicable industrial award/s, salary guides or agreements.
d. Describe how you will promote and manage diversity - both in your recruitment strategies, and day-to-day communications with your team.
e. Describe how you will provide clinic guidelines, policies and procedures; support and develop individuals; monitor and manage performance according to regulatory requirements.
Part C - Financing and Viability
7. Making a realistic assessment of your capabilities, available time, and if it would be better spent else-where, decide which financial management activities that you will undertake, and which you will outsource. Research book keepers and small business accountants in your local area; payroll providers; billing and accounting software systems. Review their services, the expected benefits and decide upon which tasks that you will outsource. For each, estimate the one off or ongoing cost, and factor this into your operating expenses.
8. Prepare a cash flow forecast for the next twelve (12) months using the Business Victoria (2015) template and guidance.
What is the minimum amount of funding you will require for the next 12 months to implement your plan?
What is your preferred method of funding and why?
What is your likely return on investment?
In 100 words or less, state if you should continue to pursue this opportunity and implement your plans in the short-term (3-6 months). Why / why not? How could you minimise the risk?
Attachment:- Assignment Files.rar