Sample business plan

This sample plan is a guide only. The statistical and financial information provided are assumptions for the case study and should not be used for an actual business plan. Intending or existing business people must undertake their own research and use reliable data to prepare their business plans.

When setting up your business, be sure to find out which legislation, licences and codes of practise will affect your enterprise.

Executive Summary


The Executive Summary is a basic overview of your business plan that outlines the business strategy and the major issues that could impact on your marketing plan.

This synopsis is written last and used as a check-list for the main document. This can also include a mission statement.

Case Example

Canterbury Renovations will specialise in the renovation of domestic kitchens, bathrooms and laundries. The business is expected to expand in two or three years to include residential construction.

The business emphasis will be the delivery of high quality products and services, the reinvestment of profits into business growth and the development of a strong business identity.

As the proprietors, we have a combined building background with a flair for interior design. Our research found a number of suitable premises available, with one shop currently available for rent and outgoings of $14,000 per annum.

The initial funding will be $85,000. This comprises of $40,000 provided by the proprietors and a $45,000 overdraft, secured through the provision of a mortgage on our home. We expect to achieve a turnover of $300,000 in the first year, which yields a gross profit of $50,000 after an owner salary is paid. This will pay overhead expenses such as rent, interest and advertising.

In the second year, we expect the annual turnover to be $450,000, and to employ two additional staff.

This growth is predicted to occur as a result of a strong marketing strategy and the development of a reputation for supplying excellent products and services. The manufacturing works may be required to relocate to an industrial site in the future and this would require additional finance.

Mission Statement (Optional)

The core activity of Canterbury Renovations will be the renovation of kitchens, bathrooms and laundries. The business will provide a complete service, including free designs and quotes, supply and installation of equipment and fittings, all associated building services, after sales maintenance and a seven-year guarantee covering workmanship.

Your Business Products and Services


It is important to identify your products and services in the plan. You need to consider these in terms of existing competition and market perception. You will need to market new products differently to those already well established.

Case Example

Canterbury Renovations is a new business with no existing clients, projects or history. We provide timber, tiles, paint and plaster with our renovations services. Our products will also include built-in appliances such as ovens, microwaves, cook tops and dishwashers, which will suit each individual project.

Although these products are available through other businesses, we offer them as part of a service rather than a stand-alone product. One company in the western suburbs also offers these appliances as part of their renovations package, but they do not service the eastern suburbs.

Our main competitor Balwyn Kitchens does not supply equipment when installing new kitchens.



To run a business, you need to have premises. It may be a home office, a mobile service, a business centre office or a shop, and the location should appeal to customers. Compare the premises to your competitors' premises and consider the marketing advantages.

Premises can be optional and both external and internal business factors need to be considered. Marketing analysis and research (conducted using the separate Marketing Plan attachment) can help identify your position.

Case Example

Canterbury Renovations will establish a showroom in the eastern suburbs to allow demonstration work of products and provide a space for discussion, planning and the signing of contracts. However, such discussions can similarly take place at the home of prospective clients.

The premises will also allow for storage space and some manufacturing work will take place at our residence, which has council approval as a home-based business premises. SWOT Analysis


A SWOT (strengths, weaknesses, opportunities and threats) analysis can provide a lot of useful information for a business. It can give direction to the business and its marketing strategies. The results need to be concise, relevant and interesting. The report should give an understanding of the business aims, and key issues and objectives should flow from it easily.

Some factors to consider for this analysis include:

  • unique characteristics of the business
  • amount of money available
  • existing client base
  • suppliers and distributors
  • price structure
  • profit margins

Key issues

Drawn from the SWOT analysis, the significant issues for Canterbury Kitchens are:

  • inexperience and lack of brand awareness
  • sufficient funds for projections but limited resources for growth
  • keeping projects affordable if materials costs increase unexpectedly
  • need to gain knowledge in recruiting and managing staff

Key opportunities

Key opportunities include:

  • providing good customer service that will increase market perceptions and earn word of mouth advertising
  • popularity of renovations in the area
  • utilising technology to promote business and keep staff contact
  • good networking allows good service and joint promotional activity

Personnel Planning


You will need to consider business size, service level and hours or operation to determine the staff you will employ. It is also important to establish what skills and experience they should have, the possibility of training, recruiting, replacing and the roles your staff will take.

Case Example

We have industry experience, but need training and experience in managing staff. Canterbury Renovations has a team of dedicated and qualified staff and we will provide training in the areas of our preferred service technique and business style.

A set of guidelines has been written for all staff outlining expected behaviours such as cleaning, punctuality and customer courtesy. We also intend to employ a professional writer to create an Operations manual.

Deficiencies will be identified and addressed through a training strategy.

The priority areas for staff training will be:

  • building and production techniques
  • using new products
  • using new machinery
  • marketing skills
  • selling
  • communication skills
  • customer service
  • estimating and pricing

Staff will wear a work shirt with the business logo to identify them and present a uniformed team approach. Eventually, we will provide vehicles will the business name printed on the side.

As the proprietors, we will attend the 'Planning and Starting a Business' course at the Box Hill College of TAFE. We also intend to join the Master Builders Association and attend a number of relevant industry courses, trade shows and subscribe to relevant business magazines.

Financial Forecasts


Financial forecasting means making a set of financial projections that will provide the figures to support the written information in your business plan. This section will also include your break even analysis.

You need to provide fairly detailed forecasts for at least the first 12 months of your operations. Give careful thought to the initial capital requirements. Undercapitalisation can have serious repercussions- if you underestimate the establishment and initial operating costs, there is a far greater chance of failure.

Initial funding of the business

As the proprietors, we have $20,000 of our own money to invest in the business, supplemented by a $20,000 long term interest free loan from our parents. The closing balance in the projected cash flow (Attachment 2) shows that, in addition to this, some $41,000 will be required over the first year.

We also had preliminary discussions with our bank manager and, subject to the provision of a documented business plan and the provision of a mortgage over our home, we will be provided with an overdraft of $45,000.

An overdraft was agreed to be the most suitable arrangement for our first year as financial requirements will vary substantially from month to month and there will be no profits with which to repay capital. After the first year, trading levels will be more predictable and finance arrangements will be reviewed.

Break even analysis

The average mark up on direct/renovation costs is 25%. For example, a $10,000 job will have a direct cost of $8000. Therefore the gross profit will be $2000 (20% of the value of the job).

The projected overheads for the first year will be $62,650. To break even, the business will have to achieve sales of which 80% pays for the direct/renovation costs and 20% pays for the overheads of $62,650.

If sales x 20% = $62,650 then the sales required to reach break-even would be $62,650, multiplied by five ($313, 250).

Therefore, the break even point of sales in the first year will be $313,250. This will not be achieved in the first year. However, in the second year the profit margin of 18% of the projected sales of $450,000 ($81,000 gross profit) will cover the overheads of about $73,150 and produce a net profit of $8350.



Show how you have established the price of your products and services.

Case Example

Canterbury Renovations will be involved in the following activities:

  • purchase and supply of equipment
  • purchase and conversion of raw or partially finished materials
  • provision of manufacturing and onsite labour
  • provision of subcontract work



Provide details of the management information systems that will keep your business running. Outline the types of records you will keep whilst operating the business.

Case Example

Canterbury Renovations will maintain sufficient business records to demonstrate the financial position of the business on a monthly basis. Financial records will compare profitability with projected profit/loss and cash flow statements. Records will also be kept for each job to show its progress and cost in labour, materials and subcontractors. These will be regularly compared with estimates for that job.

The following specific records will be kept:

  • cash book
  • receipt book
  • invoices, received and sent
  • bank deposits and statements
  • petty cash expenditure
  • wage, WorkCover, superannuation and long service leave records
  • employee details
  • capital assets register
  • materials purchased and allocated to each job or temporarily as floating stock
  • contact details of all enquirers, existing clients, suppliers and subcontractors
  • individual job records showing progress
  • job estimates

Supporting documents


Including certain documents will support the statements you have made throughout your plan. You should include figures for projected cash flows and profit and loss, as well as a statement of financial position.

If applicable, you should also attach copies of your references, qualifications, licences, permits, partnership agreement, research data, current promotional literature and locality map.

Case Example

The following documents have been prepared as a support to the business plan for Canterbury Renovations.

  • Projected profit/loss for the first year
  • Projected cash flow for the first year
  • Projected profit/loss for the second year
  • Projected cash flow for the second year
  • Statement of financial position

Your Marketing Plan


An essential component of any business plan is a marketing plan. Your marketing plan should cover such areas a market overview, marketing objectives, marketing strategy, resource requirements, and budgets.

Sales, pricing strategy and generated revenue are all an important component of the marketing plan. Once your business is up and running, the marketing plan should be updated regularly.

Please be aware that the free essay that you were just reading was not written by us. This essay, and all of the others available to view on the website, were provided to us by students in exchange for services that we offer. This relationship helps our students to get an even better deal while also contributing to the biggest free essay resource in the UK!