36 Accounting: Business Reporting for Decision Making
- Market research. What research has been done to prepare the plan? It is a good idea to list the pri-
mary and secondary sources consulted, including any personal communication with experts and their
credentials to speak as experts (Barringer 2009). If appropriate, attach the results of any surveys, or
other particularly relevant data, as an appendix.- Market analysis. What is the result of the research? It is especially important to cover the following
issues:
- Industry. What are the characteristics of the industry in which the firm will operate? This section
is especially concerned with providing an overview of the industry as a whole, rather than the
individual business. What is the current state of that industry, and what are the likely prospects for
future growth? - Seasonality. Are sales in this industry likely to be affected by changes at different times of the year, or is
the business cyclical in some other way — perhaps peaking at different times of the day or week? - Competitors. How many competitors are there, both direct and indirect? Who are the main players
and what is known about them, such as where they are located, what they sell, what prices they
charge, how long they have been in the industry, their after-sales service, staffing and customers’
views of them? - Potential strategic allies. Are there other firms that the business can work with on joint projects,
such as cross-referral of work or other ways that provide mutual benefits? - SWOT analysis. Using the data acquired, as well as one’s own understanding of the business idea,
it should be possible to construct a table or list that identifies the various strengths and weaknesses
of the business, as well as the opportunities and threats that it faces. - Marketing plan. In this section, the marketing mix is dealt with.
- Products/services and target market. Describe or list the main product(s) and/or service(s) to be
sold by the business. If making a product, how will it be packaged? What is the target market (who
are the main groups of customers for the product/service mix)? - Placement (distribution channel). How will goods be distributed to customers? What costs and
legal issues may be involved? - Promotions and advertising. How will the entity’s goods and services be advertised and promoted
to consumers? - ICT marketing strategy. With the widespread adoption of internet-based technologies by small busi-
ness, there is a need to focus upon information and communication technology (ICT) strategy,
from both marketing and operations perspectives. This should include a discussion on the use of
emerging communications platforms such as Facebook, LinkedIn, Twitter and others (which this
text refers to collectively as social media). - Pricing policy. What prices will be set? What sort of pricing strategy will be used? Will there be any dis-
counts for bulk purchases or special customer groups? Will credit terms be offered to any clients? - Evaluation of marketing. How will the effectiveness of the marketing program be assessed? What
performance indicators will be used to measure success, and how often will this be done?
Operations and production
Organisational details, day-to-day operating processes and other issues that do not have a clear marketing
or financial role are usually discussed here.
- Legal and licensing requirements. Include the business name, the legal structure of the business and
the laws and licences that the business operates under or must obtain.
- Management details. Provide background details about the business owner and/or manager, including
full name, residential address, phone number, email address, date of birth, qualifications, special skills
and job history. Is there any other information about the business owner/manager that could be impor-
tant? Does the business owner have any outstanding loans, guarantees or other financial exposure?
Has the owner ever been bankrupt or charged with an offence that could affect their ability to operate
the business? What previous business experience does the owner have?