Analyzing And Comparing Small Business Plans: A Case Study

Marketing and Sales Plan

The Small Business Association of Australia (SBAA) is a dynamic organization that focuses on advocating and supporting for the small and medium enterprises. They are been supported by both small and big businesses, government administration, and other key institutions creating SBAA as one of the emerging business organization in Australia. It is to be understood that these small and medium enterprises are the essence of the Australian economy and plays an important role in future economic growth and prosperity of Australia. They are identified for their positive contribution to the economy and face an uphill battle for sustainability and growth. They are dedicated to attaining a great deal for helping organizations grow, connect, and prosper in the market (Perera and Chand, 2015). In the following, an effort has been made to discuss the business plan of the organization compared to the business plan of the blueprints business planning Pty Ltd.   

The Small business Association of Australia is taking small and medium enterprises to a next level and providing services of business consulting and international trade opportunities. They are seeking to provide greater opportunities to expand and develop their business internationally. They should promote their services through digital marketing platform as it can motivate the customers by attractive promotional offers. They can use creative and innovative digital strategies such as social media, mobile app, and membership in order to meet expectations and enhance reputation in the industry (Rubin, Aas and Stead, 2015).

As comparing to Blueprints Business Planning Pty Ltd, they deliver business education programs and business planning services to small and medium enterprises. They expect to become one of the best business advisor and planning in the market. They are covering the target market of 10 to 100 personnel of small and medium enterprise. They are promoting their services by communicating with customers or clients as a way of reinforcing relationship (Rice et al., 2015). 

The customers chosen for the business consulting are those small and medium organizations, which is striving for economic growth and development. They are charging A$100 per hour for business consulting and international trade opportunities (Cheema, Akram and Javed, 2015).  

The Blueprints Business Planning Pty Ltd expects to charge A$120 per hour for consulting and training services. These prices are tending towards the higher end in management consulting services (Ainin et al., 2015).      

The Small business Association of Australia communication medium to connect with customers should be Integrated Marketing Communication Strategy. They should establish a strong and consistent relationship through government agencies and business organizations. They should maintain inbound and outbound trade legislation and delivers greater opportunities to trade internationally (Cavusgil and Knight, 2015).   

The Blueprints Business Planning Pty Ltd selects promotion and Advertising to interact with customers, which would be trade specific for the target audience. They should provide contract services primarily training to enhance small business management competence and skills. They should deliver a fair and equitable return on effort and investment from a long-term perspective.  

The Small business Association of Australia has captured a little percentage of the market in continuation to various sectors except business consulting i.e. Health and Wellbeing, Hospitality and tourism, and Skill development as sort of promotional strategy to persuade customers. They should especially target one single segment by which they can develop networking opportunities and secure relationship (Felzensztein et al., 2014).    

Customer Analysis and Pricing Policy

The Blueprints Business Planning Pty Ltd utilizes video streaming software, which defines the services to be offered. It will also utilize customer relationship software to take full advantage of customer value. They should focus on social media tools and internal marketing communication to create public awareness (Baxter et al., 2014).

The business plan of the Small business Association of Australia should incorporate the key people who will conduct the business operations in delivering referral and business consulting services, which will help in business to grow and build the business. The key people involved are marketing officer, operation officer, and finance officer. They can assist in maintaining a business and attain sustainable profits for long-term growth (DunnGalvin et al., 2015).

The key people involved in the Blueprints Business Planning Pty Ltd are managing director, a consultant for general planning for business, a consultant for training activities, and professional associations. They should build a network and association, which gives benefit for long-term perspective (Karadag, 2015).      

1. The owners of the Small business Association of Australia have decided to expect $1852 as net profit margin, sales turnover as $80000, which are the main indicators of the performance of the organization. Based on the forecasts made in the feasibility aspect, it is projected that:

Net profit margin % = Net profit before tax/ Sales turnover

                                 = $1852/ $80000 =2.31%

This is relatively low as low the norms of the industry, as it is not usual for an organization in its initial year of trading. It is to be expected to increase the sales revenue progressively in year 2 and year 3. It will also be possible to utilize other ratios to analyze the financial performance of the organization (Shahriar, Schwarz and Newman, 2016).

As compared to the Blueprints Business Planning Pty Ltd, it is to be estimated $2330 as net profit margin, sales turnover as $103750, which affects the performance of the organization. It is to be projected as:

 Net profit margin % = Net profit before tax/ Sales turnover

                                   = $2330/ $103750 =2.24%

1. Break-even analysis- It is to be expected that the contribution margin is equal to the expected gross profit margin i.e. 88%. If the organization is highly cost-effective, it will assist in meet unexpected contingencies.

Expected fixed cost= $89950

Break-even point in dollars = Fixed Cost/Contribution margin

                                             = $89950/0.88

                                             = $102215

In the break-even analysis of Blueprints Business Planning Pty Ltd, the gross profit margin is equal to 94%.

Expected fixed cost= $95280

Break-even point in dollars= Fixed cost/ Contribution margin

                                            = $95280/ 0.94

                                            = $101362

1. Return on Investment-It is to be stated that in the initial stage of the organization, the expected returns are not to be economical. It is to be stated that the net profit is $1852, and total investment is $20,000. The Return on Investment measures the performance of the organization, inventory investment, and investment in capital equipment. The return in investment will either create revenue that gives an advantage to the net income of the organization.

Return on Investment = Net profit/ Total investment*100  

                                    = 1852/350000

                                    = 52%

In the Return on Investment of the Blueprints Business Planning Pty Ltd, the net profit is $2330, and total investments are $4, 50,000. It will project the outcome of the expenses made which is far greater.

Return on Investment = Net profit/ Total investment*100  

= 2330/450000

= 51%

It is to be stated that the Return on Investment of the Small Business Association of Australia is 52 % and the Blueprints Business Planning Pty Ltd is 51%. In this case, it is to be evaluated that the future profitability is to be gained if the ROI is greater. These funds will be appropriate to cover the expenses of the organization throughout the initial year of operations, which is most important from the cash flow standpoint. Their main mission is to offer widespread business consulting services and international trade opportunities.  The Break-even analysis is very important for financial feasibility as it analyzes the net profit for the organization (Simon et al., 2015).

Mode of Communication

The Small Business Association of Australia operations transformations activities, which helps customers to execute their corporate policies, change their core operations, embrace the growth and prosperity, and maximize operational efficiency and effectiveness. The organization is an SME company registered in Australia (O’Neill, Sohal and Teng, 2016). It is being registered with three shareholders:

Anne Nalder                      :(60% shareholding)

Leigh Bernhardt                🙁 60% shareholding)

Peter White                       :(40% shareholding)

Their outsourcing practices involve financial and outsourcing activities such as change management, offshoring, procurement, tax shared services, reshoring, finance, and technology improvement. Their banking and securities operations operate with financial establishments to assist them in maintaining the operational strategy necessary for growth and profitability in the prevailing situation. The production processes and location strategy of the organization involves activities, which assist companies to address several challenging and complex issues. They need to work with management to reduce operation cost in order to maintain profits, increase margins, and deliver quality care. It can help in developing and maintaining business model transformation, communication, and conduct business operations. They need to maintain sales service and consult profitable solution to the people so that they can operate their business in a well-organized manner. They need to develop the customer relationship so that trust can be built, profits can be generated, and success can be achieved. This can help them to grow effectively and efficiently. It is to keep in mind that they are in a business, in which the most important thing in building trust and relationship so they need to take the challenge to address the issue (Su, Baird and Schoch, 2015).      

The Blueprints Business Planning Pty Ltd is a proprietor limited company which operates under these shareholders:

Jessie Jones                    :(40% shareholding)

Stephen Molloy              :(40% shareholding)

Andrew St John               :(20% shareholding)

They are facing insurance and security challenges, which involves a worker’s compensation, professional indemnity, director’s and public liability. They need to take care of every customer data and records for backed up progressively. They need to update their production processes within six months and maintain their internal data. They need to maintain the relations with customer and an online communication tool need to be developed. They are also facing critical risks as excessive workload is there which is to be controlled. It may be redirected to build the strategic alliance in the organization. They need to take care about the new and innovative technologies needed to train the people for maintaining the business for growth and success in long-term. They need to target the services which can be helpful for the business to grow and develop. The office is located and major freeways and they need to travel the metropolitan areas. Their planning is associated with the dynamics of the market and being responsive to the changed environment and needs to match the supply and demand. It to be analyzed that the Small Business Association of Australia focusses on every operation of business consulting services, which can help in future success. The Blueprints just focus on sales and operational processes which needs to enhance to a different way and needs to be overcome the business approach (Seethamraju, 2015).

Activity	Time period (in months)	Authority	Objective of Growth	Concerned Department
Commencement of Business plan	2 month	Marketing Manager	The main goal is to start a business advisory service, which helps to build loyalty. As compared to the Blueprints Business Planning Pty Ltd needs to generate loyalty and trust in order to enhance good customer relationship.	Marketing Department
Financial feasibility	15 days	Financial Manager	The main goal is to maintain the firm relationship, which can be managed by financial feasibility. As compared to the Blueprints Business Planning Pty Ltd, they need to collaborate and cooperate (Xiang, Worthington and Higgs, 2015).	Finance Department
Build an Internal and external relationship	1 month	Manager of HR	The main aim is to maintain a strong customer relationship and generate opportunities. As comparing to Blueprints Business Planning Pty Ltd, they are focussing on interactions with the customer.	Human Resource Department
Protecting reputation	2 month	HR manager	The main aim is to maintain a positive reputation among people who are with us for getting consulting services. As comparing to Blueprints Business Planning Pty Ltd, they need to do an ethical and feasibility study.	Human Resource Department
Maintaining investor confidence	2 month	Every manager	The main objective is to strengthen confidence, which can build trust among them. As comparing to Blueprints Business Planning Pty Ltd should be responsible for addressing these risk and contingencies.	Whole department
Making financial report and audit	2 month	Financial manager	The main goal is to make new standards for revenue recognition. As comparing to Blueprints Business Planning Pty Ltd, they are fully incorporated in managing the accounts.	Finance Department
Software Development	2 month	Designing Experts	The main aim is to develop technology for better use in the future. As Blueprints also focussing upon the same.	Information and Technology Department
Promotion and Advertisement	2 month	Marketing manager	The main goal is to induce the customer to get better business consulting services, which can help in business to grow.	Marketing Department
Consulting	1 month	Business consultant	The last step is to get better and efficient business consulting services, which drives an opportunity to build a relationship (Chong, 2014).	Business consultant Department

• The Small Business Association of Australia should provide learning resources and consultation, which can improve their successful enterprise.
• They should manage the financial and legal issues in respect to guide them in a difficult situation.
• They should take advantage of strong business and international opportunities to associate nationally and internationally.
• They should guide people and committed to provide a great deal for growing business and support new ideas.
• They should assist in developing small businesses and accomplish better economic growth.
• They should provide better opportunities in establishing business and help to capture the whole market and attain higher profits (Hale, Borys and Adams, 2015).

Promotional Strategy

Conclusion

In conclusion, it has been stated that in a very short time SBAA has attained respect and recognition at a very vast level as they are participating in giving advice regarding business policy. The business plan covers every aspect such as marketing and sales plan, financial feasibility, operation as well as an action plan. It is being compared from Blueprints Business Planning Pty Ltd, which mainly concerns success and growth. As it has been seen that the net profit margin and break-even analysis is higher of SBAA. Therefore, they need to concentrate on long-term planning of providing better-consulting services.  

References

Ainin, S., Parveen, F., Moghavvemi, S., Jaafar, N.I. and Mohd Shuib, N.L. (2015) Factors influencing the use of social media by SMEs and its performance outcomes. Industrial Management & Data Systems, 115(3), pp.570-588.

Baxter, S., Sanderson, K., Venn, A.J., Blizzard, C.L. and Palmer, A.J. (2014) The relationship between return on investment and quality of study methodology in workplace health promotion programs. American Journal of Health Promotion, 28(6), pp.347-363.

Cavusgil, S.T. and Knight, G. (2015) The born global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization. Journal of International Business Studies, 46(1), pp.3-16.

Cheema, S., Akram, A. and Javed, F. (2015) Employee engagement and visionary leadership: Impact on customer and employee satisfaction. Journal of Business Studies Quarterly, 7(2), p.139.

Chong, S. (2014) Business process management for SMEs: an exploratory study of implementation factors for the Australian wine industry. Journal of Information Systems and Small Business, 1(1-2), pp.41-58.

DunnGalvin, A., Chan, C.H., Crevel, R., Grimshaw, K., Poms, R., Schnadt, S., Taylor, S.L., Turner, P., Allen, K.J., Austin, M. and Baka, A. (2015) Precautionary allergen labelling: perspectives from key stakeholder groups. Allergy, 70(9), pp.1039-1051.

Felzensztein, C., Stringer, C., Benson-Rea, M. and Freeman, S. (2014) International marketing strategies in industrial clusters: Insights from the Southern Hemisphere. Journal of Business Research, 67(5), pp.837-846.

Hale, A., Borys, D. and Adams, M. (2015) Safety regulation: the lessons of workplace safety rule management for managing the regulatory burden. Safety science, 71, pp.112-122.

Karadag, H. (2015) Financial management challenges in small and medium-sized enterprises: A strategic management approach. EMAJ: Emerging Markets Journal, 5(1), pp.26-40.

O’Neill, P., Sohal, A. and Teng, C.W. (2016) Quality management approaches and their impact on firms? financial performance–An Australian study. International Journal of Production Economics, 171, pp.381-393.

Perera, D. and Chand, P. (2015) Issues in the adoption of international financial reporting standards (IFRS) for small and medium-sized enterprises (SMES). Advances in accounting, 31(1), pp.165-178.

Rice, J., Liao, T.S., Galvin, P. and Martin, N. (2015) A configuration-based approach to integrating dynamic capabilities and market transformation in small and medium-sized enterprises to achieve firm performance. International Small Business Journal, 33(3), pp.231-253.

Rubin, T.H., Aas, T.H. and Stead, A. (2015) Knowledge flow in technological business incubators: evidence from Australia and Israel. Technovation, 41, pp.11-24.

Rubin, T.H., Aas, T.H. and Stead, A. (2015) Knowledge flow in technological business incubators: evidence from Australia and Israel. Technovation, 41, pp.11-24.

Seethamraju, R. (2015) Adoption of software as a service (SaaS) enterprise resource planning (ERP) systems in small and medium sized enterprises (SMEs). Information systems frontiers, 17(3), pp.475-492.

Shahriar, A.Z.M., Schwarz, S. and Newman, A. (2016) Profit orientation of microfinance institutions and provision of financial capital to business start-ups. International Small Business Journal, 34(4), pp.532-552.

Simon, A., Bartle, C., Stockport, G., Smith, B., Klobas, J.E. and Sohal, A. (2015) Business leaders’ views on the importance of strategic and dynamic capabilities for successful financial and non-financial business performance. International Journal of Productivity and Performance Management, 64(7), pp.908-931.

Su, S., Baird, K. and Schoch, H. (2015) The moderating effect of organisational life cycle stages on the association between the interactive and diagnostic approaches to using controls with organisational performance. Management Accounting Research, 26, pp.40-53.

Xiang, D., Worthington, A.C. and Higgs, H. (2015) Discouraged finance seekers: An analysis of Australian small and medium-sized enterprises. International Small Business Journal, 33(7), pp.689-707.