A Comparison Essay On Two Small Businesses In Australia." (60 Characters)

Discuss About The Blueprints Business Planning Australia?

The primary aim of this report is to compare two business plans of small businesses based in Australia, one is Blueprints Business Planning Pty Ltd and the other is Sam’s Fast food Truck Pty Ltd. Both are small and medium enterprise, that target a sector in Sydney and other localities around the city (Crumpton, 2012). While Blueprints Planning Pty Ltd targets Sydney along with other adjoining areas from New South Wales, Australia, the other business is limited to Sydney alone. Both are proprietorship based businesses that have their owners as business full time employed. The scope of this report analyses marketing, operations and finance activities for both the businesses such that an appropriate comparison can easily be achieved.      

Mission of Blueprints Business Planning Pty Ltd is to provide business planning assistance to small and medium scale e businesses. The Company will aim to provide varied range of advices to small-scale organisations. Mission of Sam’s Fast food Truck is to provide lip-smacking snacks near office areas of Sydney during their recess hours. The Company will provide variety types of burgers, sandwiches, milk shakes, fries and other snacks at cost affordable rates, such that consumers make repeated purchase at the food truck.  

The former business employee is Jessie Jones along with four other people, the other business employs Scarlet Tassel along with two other employees. Earlier, Jessie Jones had been working as a management consultant and has good foothold on providing clients with well-equipped business plans along with feasibility analysis. Scarlet Tassel, has previous work experience with various restaurants and fast food stall, hence now she plans to extend such expertise in creating a business and patenting some creations of her own. The former business aims to generate a revenue of A$100,000 and make revenues worth A$2000, whereas the other business aims to generate an annual revenue of A$50,000 with profits amounting to A$1500 in the first year alone. When operations of both the business will be started then there will be one employee managing director who will be handling all functionalities from home for the former business. While for the later business, the owner cum managing director has already painted his truck and arranged for it to form a food truck.

The former business will be entirely self-funded and director intends to provide the necessary capital as an initial investment worth A$10,000. For the food-truck business the director has already sanctioned a bank loan worth A$12,000 for purchasing necessary equipment for establishing the business. Thus, the following brief comparisons for the business will allow grater insights into them.  

Data Collection and Analysis

Business goal of the former business is to employ a full-time employee with a salary of A$42,000 annually. This is a short-term goal, whereas its long term goal is to generate a net profit of A$2000 and set up a consulting firm at Sydney employing a minimum of five people. For the later business, short term business goal comprises of establishing the food truck in an attractive office location at Sydney and repay the business loan within one year of operations. Whereas, for long term the managing director aims to open a small restaurant in Sydney suburb location and starting with home delivery systems.

Prior to building any sort of business plan it becomes crucial to collect information and data from relevant sources (Allen, 2015). For purpose of constructing both the business plans secondary sources as well as primary sources were used as from Australian Bureau of Statistics, NSW Small Business Advisory Network. Data from primary sources were gathered by means of interviews with business enterprises in and around Sydney. There were also reference drawn from business journals and magazines as well as newspapers. 

External Industry Analysis

Market analysis of Sydney reveals that there is a requirement for management and consulting services for catering to small and medium scale businesses. Though the market is competitive with a number of well-established companies yet there remains immense scope un-explored for small and medium scale enterprises (Holmes, 2016).

For food-truck business, there are a large number of restaurant, catering services and office canteens at Sydney. Hence, the market space is extremely competitive for establishing a business in food business, but if the owner can create an unique flavor then he might be able to attract a sizable number of regular customers.

Holiday season during December and January makes it a seasonal business throughout the year, except these two months. Hence the owner can devise and make strategizing for business of making extraordinary management plans during this time.

Food business is an all year round business and profits rise considerably during holiday seasons. Especially during December and January, sales from the food tcuk is expected to shoot up. There are a number of managing and consulting agencies in and around Sydney but they generally cater to large-scale businesses. There are a large number of competitors in the food business, which comprises of office canteens, restaurants, food-trucks and so on. The management consultancy can seek strategic alliances from various accounting firms and data collection agencies. The fast food truck should seek strategic alliances from suppliers of raw materials, as meat, bread and so on.   

External Industry Analysis

SWOT analysis is a comprehensive strength, weakness, opportunity and threat analysis. Strength of management consultancy is that owner has immense knowledge and ideas regarding the business. Weakness is low availability of funds for expanding and setting up a professional business mode. Opportunity from the business is immense to expand to cater to large scale corporations. Threats are from other consultancies offering lower rates and more integrated services for the same.

Strength of the fast food truck business is that most of the expertise of the business is extended by the owner cum managing director. The owner have made use of own truck to create and deliver business strategy, weakness comprises of less knowledge regarding diversified cuisines. However, there is immense opportunity to diversity into restaurant business later on.  

The management consultancy will cater to areas in Sydney and cities around New South Wales. Target market will comprise of mainly small and medium scale enterprises. Food truck will be based in key office area in Sydney and can easily relocate. Thus, its prime areas will be to cater to office going customers in Sydney. The management consultancy firm will aim to place its products exclusively for small and medium scale enterprises. The food truck will cater to young office goers by providing them cost effective products. Management consultancy will adopt word of mouth advertising methods mostly.  It will adopt promotions through references. Food truck will have advertising through traditional modes whereas promotion will be through distribution of brochures and pamphlets in various offices. Management consultant will make use of digital and social media form of ICT. Whereas food truck will adopt traditional modes of ICT. Both the companies being start-ups will adopt affordable pricing policy for the same. The management consultancy will offer its services at cost affordable rates but will enter market will skimming pricing strategies. The food truck will sell lip smacking foods at affordable prices in bundle pricing methods. Marketing for both the companies needs to be done extensively such as to attract customers towards the business. Management consultancy will adopt digital market strategy, whereas food truck will include marketing through pamphlets, brochures and other traditional modes of advertisement.

The management and consultancy firm will need to have an appropriate licensing requirement for starting its business which needs to be obtained. The food truck business will need to obtain trade license and food safety license prior to conducting its business (Amato, 2016). Management details for both organisations are not applicable as solely their owners are operating both now. But both the organisation can expand and will have a suitable management structure.    

Internal Analysis of Company

At present organisation structure for both the companies will not be applicable at it will be operating directly under the owners (Chell, 2016). Later, management consultancy will employ 1 full time staff. Food business will have a full time staff from the beginning. There will be a legal advisor and accountant consultant for tax filling and other company related issues for both the companies. Management consultancy owner needs to purchase an online security for preventing loss or theft of business plans developed. The food truck business will accommodate will need to have a food taster along with insurance for the truck. The management consultancy will be operating from the home of the owner cum managing director. Premises for food truck would include, food truck and home of the owner will also be required. Equipment required for the purpose of developing business plan will be a laptop, router for connecting to broadband. There will be need for plentiful utensils for cooking, marinating and serving clients for the food business. Oven, chimney and refrigerator are some other key equipment for the business. Management plans will be made and delivered by the managing director himself. There will be need of a laptop and internet connection for production of the plan (Audretsch, 2012). The food truck will prepare half the preparation at home including marinating. In the food truck ,it will just fry and pack to deliver various items. Thus, production process will be half done at home of the owner and half in the food truck itself. The management consultancy business will be operating through a direct phone line and 24 hours broadband internet connection. It will have two laptops for the purpose of conducting business and another for making presentation to its clients (Hatten, 2012).

The food truck will require just a mobile phone connection for taking orders and a bill printing machine. Management consultancy business will face tremendous risks from meeting short term financial obligations. Further it needs to appoint an executive for collection of payments and other dues form clients. Risks faced by food truck business are regarding storage of excess food. Such storage or reduced sale can lead to reducing of long-term profitability. Basic assumption in the financial forecast is that for the former business, owned capital is the cash at bank and depreciation for equipment is at 10%. For the second business basic assumption is that loan capital servicing rate is 5%. Depreciation for various equipment is at 12% due to high wear and tear. Sales for business planning management consultancy will be at A$75,000 for the first year. Sales forecasted for Food-truck will be A$105,000 for the first year of business (Carland, 2015). Blueprints will have a cash at bank balance at the end of the year forecasted to be at A$5,000. Food-truck will have cash in hand forecasted balance at the end of the year amounting to A$7,000. Projected profit and loss for management consultancy will be profits in the first year amounting to A$20,000. For food-truck business projected profits will be A$35,000 for the first year of operation. The management consultancy’s owner will withdraw a minimum of A$1500 for the purpose of his personal expenses, whereas any profits generated form the business will be reinvested. In the food-truck business, the owner will withdraw a sum of A$2,000 for his personal expenses and rest revenues earned will be reinvested and used for paying of business loan. The management planning consultancy has been set out of the entire funds from the owner. He has set aside this fund for conducting business A$10,000. Whereas, the food truck business has been set out from back loan of A$12,000. Thus, the owner needs to payout the business loan from monthly incomes of the food-truck. 

Conclusion

Analysis of the two business plans reveals, that both businesses have viability and potentially to expand. However, marketing tactics for each business is different compared to each other. Financial setup is also different as one is a self-funded organisation and the other has obtained bank loan to start business. Operations for both businesses also greatly vary as the former comprises of business that can operate from home itself and the later has to be established on the streets. Thus, while both businesses are different it can be understood that both entrepreneurs possess immense capabilities to expand the business beyond boundaries and potentialities. 

Reference Lists

Allen, K. 2015. Launching new ventures: An entrepreneurial approach. Nelson Education.

Amato, C. A. 2016. Regulatory modes and entrepreneurship: The mediational role of alertness in small business success. . Regulatory modes and entrepreneurship: The mediational role of alertness in small business success. .

Audretsch, D. 2012. Entrepreneurship research. Management Decision, 755-764.

Carland, J. C. 2015. Seeing what's not there: The enigma of entrepreneurship. Journal of small business strategy, 1-20.

Chell, E. S. 2016. Social entrepreneurship and business ethics: does social equal ethical?. Journal of Business Ethics, 619-625.

Crumpton, M. 2012. Innovation and entrepreneurship. . The Bottom Line, 98-101.

Hatten, T. 2012. Small business management: Entrepreneurship and beyond. Cengage Learning.

Holmes, R. Z. 2016. Two-way streets: The role of institutions and technology policy in firms’ corporate entrepreneurship and political strategies. The Academy of Management Perspectives, 247-272.