Learner Guide

BSBOPS601

Develop and
implement
business plans
Edition 1 first published 2021 by Eduworks Resources

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 About this Learner Guide

About this
Learner Guide
This Learner Guide covers the following unit of competency:
BSBOPS601 Develop and implement business plans

BSBOPS601 Develop and implement business plans 1

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2 BSBOPS601 Develop
BSBMKG555 and implement
Write persuasive copy business plans
 Contents

Contents

1 Introduction –The Business Plan ..................4 Chapter 4The Finances ...................................54

1.1 Business Planning ..........................................5 4.1 Finance Sources ...........................................55
1.2 Vision and Mission..........................................7 4.2 Financial Goals and Objectives....................56
1.3 Goals and Objectives .....................................9 4.3 Financial Assumptions .................................59
1.4 Action Plan....................................................12 Chapter 4 Review Questions..............................62
1.5 Stakeholders .................................................13 Business Plan Completion Check......................63
1.6 The Executive Summary .............................15
5 Implementing a Business Plan ....................64
Chapter 1 Review Questions..............................17
5.1 The Planning Process...................................65
2 The Business .................................................18 5.2 Resourcing ....................................................67
2.1 The Business ...............................................19 5.3 Communicating Plans ..................................68
2.2 Products and Services ................................27 Chapter 5 Review Questions..............................69
2.3 Operational Details .......................................29
6 Monitoring a Business Plan .........................70
2.4 Insurances ...................................................30
6.1 Monitoring Plans ..........................................71
2.5 Legislation .....................................................31
6.2 Types of Monitoring ......................................72
2.6 Risk Management.........................................34
6.3 Monitoring Tools ...........................................75
2.7 Risk Management Plan ................................35
Chapter 6 Review Questions..............................77
2.8 Risk Management Strategies .......................37
2.9 Contingency Plan .........................................38 7 Business Plan Reporting ..............................78
2.10 Hierarchy of Control ...................................39 7.1 Reporting ......................................................79
Chapter 2 Review Questions..............................42 7.2 Managing Underperformance ......................80
7.3 Why Plans Fail ..............................................82
3 Marketing........................................................43
Chapter 7 Review Questions..............................84
3.1 Customer Demographics ............................44
3.2 Market Research ..........................................45 Bibliography ......................................................85
3.3 Industry Analysis ..........................................47
3.4 Sales and Advertising ..................................49
Chapter 3 Review Questions..............................53

BSBOPS601 Develop and implement business plans 3

1. Introduction – The Business Plan

Chapter 1
Introduction –
The Business Plan

In this chapter, you will learn about the purpose of business planning,
how to create vision, mission and value statements and how to create
goals and objectives in your business plan. You will learn about a
stakeholder’s role in a business plan, tools to assist in refining the
planning process, and completing the first section of a business plan,
The Business Plan Summary, also known as an Executive Summary.

By the end of this chapter,

you will understand:
3 the purpose of business planning

3 have a clear understanding of vision and

mission statements

3 have a clear knowledge of values and

objectives

3 the role stakeholders play in a business

plan

3 tools to assist in refining the planning

process

3 how to create or update the first Section

of a Business Plan – The Business Plan
Summary, or The Executive Summary.

4 BSBOPS601 Develop and implement business plans

 1. Introduction – The Business Plan

1.1 Business Planning

The purpose of business planning is to help a business Sections of a Business Plan
to achieve its goals and objectives. It identifies what
The following are the areas to include in your business
the business is, why the business exists and what the
plan. These sections cover each area of your business
business is trying to achieve. It is an important strategic
and are typically included with detailed information.
tool that helps businesses focus on the necessary
Each chapter will provide detailed information and
steps to make business ideas succeed and to achieve
context for the below:
short and long-term objectives. A business plan can
be developed from scratch or updated for an existing 1. The Business Plan Summary (Chapter 1): A summary
business. A business plan should also be an active and of each area of your business plan that your
a consistently updated document. As your business audience will be able to gauge a good understanding
environment changes, the plan’s goals and objectives without needing to read the full details of the
will also change. “Your business plan will serve as a key complete business plan. The Business Plan summary
point of reference for investors, partners, employees and can also be known as the Executive Summary. Most
management to gauge progress against objectives.” of the information in the Executive Summary will be
added once you have completed the below areas for
A business plan is important because it acts as the GPS
the business plan as the information to summarise
of your business. Where do you want to go? How are
the main points will come from each of the below.
you going to get there? It helps to steer your business
2. The Business and Operational details (Chapter 2):
in the right direction to achieve your desired outcomes.
This area provides information about the physical
It will help prompt you to think through each area of
details of the business itself. This is important
your business, what it will need and how it will run and
information for the functioning of your business. The
grow. The quote from Benjamin Franklin sums up the
following details need to be included:
importance of a business plan. “If you fail to plan, you
are planning to fail.” Not having a structure or a clear • The Business Name: Include any trading names
path with all the relevant information needed to have a which may differ.
clear idea of where you want your business to go for its • Registration Details: Australian Business Numbers
success will make it harder to make decisions and could (ABN), Australian Company Numbers (ACN), GST
lead to a lot of time, money and resources wasted. Registrations (Goods and Services Tax) and the
While it is not vital to have a business plan, it can make dates they were registered.
running a business a lot easier to achieve success. • Location: This is the address of your business.
Include if the building is owned or leased and the
size of the space. Also, add any costs associated
with the space, including any utilities or required
costs.

BSBOPS601 Develop and implement business plans 5

1. Introduction – The Business Plan

• Licenses, Permits and Registrations: These

will differ depending on the type of business
Note
you have. You can check what you would need
at ABLIS (Australian Business Licence and Supporting Documentation
Information Service.) As you complete each area of
• Business Websites: Provide a link and domain your business plan, you will be
name. required to have supporting documentation
• Organisational Structure: Providing what kind of that may be necessary to include to support
business structure you have will help to provide any statements or assumptions made in your
details of ownership, management, recruitment business plan. This will essentially back up
needs and key personnel and staff. what you have stated in your business plan by
providing the full documents.
• Products and Services: Provide an introduction
of your product or service for your business and The Key Recommendations of Supporting
some brief information of why it’s needed by your Documentation to include are:
market.
• Resumes (Chapter 2): Management and
• Insurances and Legislation: This refers to specific employees
insurances and legislation information for your
• Inventory List (Chapter 3): An itemised list
industry.
of the good and materials needed for your
• Risk Management: How to create a risk product or service
management plans, contingency plans and
• Market Research (Chapter 3): Collecting
hierarchy of control.
information about the market, including
3. Marketing (Chapter 3): This area provides information data from surveys, trend analysis, marketing
for the marketing areas of your business, including reports and studies that support the
your target audience, demographics and marketing information your Market section
techniques of how you will market your business to
• Financial Documents (Chapter 5): Financial
your audience.
statements, balance sheet forecast, finance
4. The Finances (Chapter 4): This area will cover sources and any financial documents to
financial goals and objectives, sourcing finance and support the information in your finance
calculating financial predictions and assumptions. section.

6 BSBOPS601 Develop and implement business plans

 1. Introduction – The Business Plan

1.2 Vision and Mission

Before starting the first section, The Business Plan
Summary, you must establish the basics of your
business; the business’s vision, mission, values and
objectives. For a pre-existing business that currently has
a business plan, this would be to explore the current
vision, mission, values, and objectives and see what
areas need to be updated. Vision, mission and value
statements are the foundation for your business plan.
They provide the purpose, direction and values of your
business. When written and executed well, they can
serve as an effective tool for meaningful guidance and
what a business stands for with stakeholders.

Vision Statements
A Vision statement is a statement that summarises the Mission Statements
present and future of the business. “A Vision statement A Mission statement states how the business is going
provides a concrete way for stakeholders, especially to get there and what the business is going to do to
employees, to understand the meaning and purpose of achieve the vision statement. The mission statement
your business.” It serves as an inspiring and strategic is more specific and will answer the how in a practical
plan for stakeholders. It can be helpful for stakeholders way. “It goes beyond the vision, by making a clearer
to use as a guide to help make decisions that align with delineation of company goals and how the vision will be
its philosophy and differentiate a business from others. accomplished.” Writing a mission statement needs to
Think of it as a roadmap to where and what the business be easily understood and remembered and must inform
wants to be. Writing a vision statement should be short, how the vision will be achieved.
concise and no longer than a few sentences. It needs to
be easily understood and remembered and must inform
the organisational objectives and goals and be relevant. Example
Well-known brands mission
statements:
Example
Nike: “Do everything possible to
Well-known brands vision expand human potential.”
statements:
Tesla: “To accelerate the world’s transition to
Nike: “Bring inspiration and sustainable energy.”
innovation to every athlete in the world.”
Coca Cola: “To refresh the world in mind, body,
Tesla: “Create the most compelling car company and spirit, to inspire moments of optimism and
of the 21st century by driving the world’s happiness through our brands and actions, and to
transition to electric vehicles.” create value and make a difference.”
Coca Cola: “Become the best total global
beverage leader, generating sustainable Without the vision and mission statements having
economic, social, and environmental value by synergy, it will not provide a clear path to a business’s
managing innovative, winning business models success. The idea is to provide the purpose of your
with the best employees in the world.” business as a navigational tool when thinking about the
future of the business and how you are going to achieve
your goals and objectives.

BSBOPS601 Develop and implement business plans 7

1. Introduction – The Business Plan

Let’s break down Tesla’s vision and mission statement

and observe how they work together:
Tesla wants to “Create the most compelling car
company of the 21st century by driving the world’s
transition to electric vehicles” (vision) by “Accelerating
the world’s transition to sustainable energy.” (mission).
Tesla has clearly summarised the present and future of
the business of being the most compelling car company
of the 21st century and driving the worlds transition to
electric vehicles and how they are going to do it which
is by accelerating the worlds transitions to sustainable
energy.
A value statement should cover:
1. Principles to stand for: Some examples of principles
could be Respect, Honesty and Integrity.
2. Standards of behaviour:
• Internally: The culture of a workplace, how
employees should behave, work should be
completed and the general treatment of people in
the workplace.
• Externally: Acceptable business practice as a
customer or consumer of the product or service.

Note
Coca Cola’s values:
Value Statements
A value statement explains the behaviours, what is • Leadership: The courage to shape a better
important to the business and how it intends to operate. future.
It helps to ensure that employees are working towards • Collaboration: Leverage collective genius.
the same goal. These should be in line with your vision • Integrity: Be real.
and mission statements with the intent to shape the
• Accountability: If it is to be, it’s up to me.
desired culture and business strategy. Another way to
think about a great value statement is that business • Passion: Committed in heart and mind.
decisions should match the values of your business. • Diversity: As inclusive as our brands.

Have you ever heard of business’s hiring not only on • Quality: What we do, we do well.
talent but a “cultural fit”? This is where having a strong Notice how each value explains the behaviours,
value statement and the values you want your business what is important to the business and how it
to stand for is important. In the case of a cultural fit, intends to operate.
the intent is to make sure that you hire the right people https://scnv.io/aZ5v
who share the same values. This impacts not only the
employees, but also the relationships you create with
external stakeholders.

8 BSBOPS601 Develop and implement business plans

 1. Introduction – The Business Plan

1.3 Goals and Objectives

Objectives are detailed goals you set for your business KPI’s (Key Performance Indicators) are a great way to
to achieve within a specific timeframe. It is important to do this. A KPI is a quantitative measurement of results
have goals because you can lose focus and direction for a business goal or objective. It is based on whatever
in your business without them. Setting goals gives metric or target you have decided on that is relevant to
you the power to transform your business in whatever your business to achieve to work towards.
direction you want to go. What your goals start off with
and what they end up being can either be the same or
very different. This is why making sure your goals are Note
specific, attainable, realistic and measurable will help
with this process. Goal setting methodologies can help Quantitative and Qualitative
with setting goals and objectives. SMART and CLEAR Methods of Measurement
are two very helpful methodologies for creating detailed A quantitative method of
goals. measurement measures results from counting
or measuring something. Some examples could
S.M.A.R.T Method include time (duration) or a number to work
Specific: A clear, detailed direction on what is to be towards or measure a target. They are very clear,
achieved. Being specific in what you want to achieve will objective and fixed measurements:
make the process of succeeding in that goal a lot easier • number-based
to accomplish. It starts with the details – the more detail
• statistical tests used for analysis
of exactly what you want to achieve, the better. If your
goals are vague, they can be misinterpreted and hard to • surveys or very structured interviews and
follow. observations
• documents for numeric information.
Let’s see the difference.
A qualitative method of measurement is not from
You want to improve your profits by 3% for your counting or measuring something. It is more
business. While it is a goal, it is not overly specific. subjective, providing a more in-depth view and a
Let’s specify more; “I want to improve my profits by less fixed measurement:
3% for my business by promoting the services more on • focus groups, in-depth interviews
social media, hiring multi-skilled staff and cutting back
• reviews of documents trying to pick up types
on utility costs.”
of trends or themes
The difference gives you more detail of the direction • usually, text or word-based
on what you need to do to increase profits by 3%. It
• can be valid and reliable if the person
specifies the areas that you’re going to focus on to
is undertaking the research skill of the
assist with that.
researcher.
Measurable: Having goals that are measurable helps
you to understand if your objectives are being met.
Imagine you have opened a new hairdressing salon. A KPI
Comparing where you are now and where you want
you could set might be a goal of attaining five new clients
to be in your business provides you with the ability
to your salon in one month. Another KPI could be over
to compare and measure your progress. This can
a six-month period and you want an 80% retention rate,
be a great way to know if your goals are working.
meaning that 80% of your clients come back regularly and
Measurements such as tracking the numbers of profits,
keep coming back for your service. To know if you are
new customers, or even maintaining current business
achieving your goal, you can assess the success of your
over a duration of time can provide you with the
KPI, allowing you to not only measure your success but
information to measure your success in your goals.
also to monitor or update the metric if necessary.

BSBOPS601 Develop and implement business plans 9

1. Introduction – The Business Plan

Achievable: It’s wonderful to have high expectations Timely: Do you have a timeframe for achieving your
and dream big when it comes to setting goals for your goal? Having a timeframe and deadline creates a sense
business; however, being realistic about success and of urgency to achieve the objective. Having deadlines
achievability is something you must also consider. ensures you have something to work towards and
Otherwise, you will be setting yourself up for failure. creates motivation to achieve that said goal. A helpful
What a great goal it is to want to make your first million tip is to create a timeline of milestones along the way
in your new start-up business, for example, providing to help with keeping on track and breaking down the
you have the time, money, resources and experience goal into smaller achievements. Also, keep in mind
to make that happen. Keep in mind that the goal must your capability to meeting your milestone or deadline.
represent what you are willing and able to work towards. You can’t be too stringent or too relaxed on a goal’s
timeliness as it can diminish or demotivate the goal
Relevant: Your goals need to be relevant to your
being achieved.
business. They need to align with your business
objectives and add proper purpose and value. Imagine you are the owner of a restaurant. You want to
reduce the food costs. Let’s put this objective together
Let’s go back to the hairdressing salon. A relevant goal
from what we have learnt from the SMART Method
might look something like “I want my staff to have at
already.
least one year of experience cutting men’s hair because
the salon is located next to a construction site that has a “I want to reduce my business’s food cost by 10% by
70% male client base.” focusing on food waste in particular which includes
spoilage of and scrap food.”
Using a similar theme, an irrelevant goal might be
something like, “I want my staff to all have completed a Now let’s add in the timeframe.
pre-apprenticeship in a construction trade so that they
“I want to reduce my business’s food cost by 10% per
will be able to relate to staff that work in a trade.”
month for a total of six months by focusing on food waste
in particular which includes spoilage of and scrap food.”

10 BSBOPS601 Develop and implement business plans

 1. Introduction – The Business Plan

C.L.E.A.R Method understanding and appreciation for the work that is

achieved can help people stay motivated and feel good.
Collaborative: Working as a team in a business is
important if you are striving for a particular goal. It is Imagine you are an apprentice carpenter new to a job
helpful to be able to work collaboratively with different site. You are working with experienced carpenters, and
people utilising different knowledge, experience and skill the goal is to build a wooden wall with intricate carvings.
sets to meet objectives. You are required to measure out the wall with specific
measurements and assist in the design of the carving
Imagine you are the assistant for an executive manager
shape. During the work your supervisor checks in to
that needs to create a report and presentation to present
make sure you feel supported and also provides advice
to their colleagues (the goal). You, as the assistant,
to help with the task. You also double check your work
have the job of putting together the report topics and
with an experienced carpenter as you go.
contents page for each member of your 6-person team
to add their contribution to. You send the report with After the goal is completed, your supervisor is
clear details of who needs to enter what information and impressed with what you achieve and compliments the
by when providing reminders to the team. The six people collaborating and asking for help when needed. This can
who need to provide their own content to the report provide a positive response and creates a larger positive
all add their information to the report, which assists emotional involvement for future goals for this carpenter
your executive manager to present the report to their to achieve.
colleagues. Each person’s solo achievement in a group Appreciable: This helps with breaking down a big goal
should be collaborated together to achieve a bigger into smaller goals to make it less overwhelming and
accomplishment. more achievable. This prevents people from feeling
Limited: This is similar to the Achievable and Timely overwhelmed by a large goal.
areas for the SMART goals; however, limited primarily Refinable: Adapting and adjusting to changes
focuses on a start and end date of a goal and is in objectives and deadlines due to unforeseen
realistically achievable in the timeframe given. This keeps circumstances will enable goals to still be achieved.
the goal simple, clear and manageable. Making a goal more refined could look like a writer
Emotional: If you want to receive or do quality work, working for a company who falls unwell and needs to
you need to understand the emotional involvement of extend a deadline. A way to achieve the goal could
the people you work with. When a goal is set, and tasks be to resource the task to another writer or extend the
are provided to people, making sure there is support, deadline. This requires the ability to be adaptable and
refining the goal to be met.

BSBOPS601 Develop and implement business plans 11

1. Introduction – The Business Plan

1.4 Action Plan

An action plan becomes incredibly useful when you to be completed. After the table has been created,
have identified your goals and objectives and begin monitoring and modifying as you go will be a continual
implementing the steps for your finished business process throughout working towards achieving an
plan. Action plans are individual to businesses, which objective.
will determine the action plan’s length and details. The
Let’s use an example from before about opening a new
benefits of having an action plan are that they provide a
hairdressing salon. Your goal is the goal of attaining five
clear direction to keep the business focused, motivated
new clients to your salon in one month.
and on track.
To know if you are achieving your goal, you can assess
Using a table can be a helpful way to provide direction
the success of your KPI, allowing you to measure your
on how to complete each step, the target or metric
success and monitor or update the metric if necessary.
used, who will be accountable for it and when it needs

Key Performance
Step Assigned To Due Date
Indicator (KPI)

Set a meeting to discuss

attaining five new clients by
the end of the month with the
N/A Salon Manager Next week
team, advising that there will
be a special offer of 50% off
first-time clients.

Speak to 3 clients per day

Haridresser1
about the 50% off first-time
Conversation with
clients, asking if anyone Hairdresser2 Week after
three clients per day
they may know would be
Hairdresser3
interested in the offer.

12 BSBOPS601 Develop and implement business plans

 1. Introduction – The Business Plan

1.5 Stakeholders
Consider the stakeholders when creating or changing a Internal Stakeholders are the people that have a
business plan. Businesses must consider the impacts direct influence on business functioning and have a
of changes on stakeholders when creating a business direct relationship through employment, investment or
plan. A stakeholder is a person who can be affected by ownership.
or affect the operation of a business. “A stakeholder is
External Stakeholders are the people that are affected
any individual, group or party that has an interest in an
indirectly by business functioning. They do not directly
organisation and the outcomes of its actions.”
work for the company but are affected by the outcomes
There are two types of stakeholders, internal of the business.
stakeholders and external stakeholders.

Stakeholder Description

Customers are one of the most important stakeholders as most businesses are based on a
Customers
product/service type of transaction. Customers want businesses to produce and provide quality
(External)
products and services for affordable prices.

The reason that the business can provide their quality products or service. Employees have a
direct interest in a business, earning an income and can have other benefits such as culture,
Employees (Internal)
flexible working arrangements or added benefits like discounts on transport/fitness costs or
insurances.

Shareholders have invested money into a business. They are interested in the operations of a
Shareholders business as they want to stay profitable, hoping for a successful return on capital. They have a
(Internal) shareholder value. Shareholder value is the value for shareholder when the business they have
invested in increases their profits, creating a higher return.

Suppliers and vendors sell goods/services to businesses for revenue. Supplier and vendors need
Supplier/Vendors
the business to be successful to make sure they continue to buy their own product or service
(External)
and maintain profitability.

Communities The community plays a large part in business. Some impacts include employment, income,
(External) quality of a product or service, environmental and economic factors.

Federal, state and Government rely on business to be successful in collecting taxes, including
Government payroll, sales and GDP (Gross Domestic Product), the total market value of goods and services
(External) produced for a country’s economy during a period. This helps to fund government services such
as education, law enforcement or health services.

Stakeholders that need to be involved with business Internal stakeholders will have a large knowledge base
plans are those who are interested in the success of a of the strengths and weaknesses of a business and
business. This will include both internal and external have firsthand knowledge of what the business needs
stakeholders. Both will hold a unique perspective about to be successful. Internal stakeholders will need to be
the interests and impacts of business plans. consulted in different ways requiring their input about

BSBOPS601 Develop and implement business plans 13

1. Introduction – The Business Plan

objectives and goals by setting meetings, creating type of advisory role, providing an outside perspective
focus groups, employee surveys, or even through of the business and the decisions that are made. This
internal communications such as emails, newsletters, or does not mean that a business will follow the insight, but
internal websites. It is wise to nominate representatives it can be very helpful to creating or updating a business
of particular stakeholder groups from each hierarchy plan. Although they don’t have direct control over a
level and not just at top-level management. This can business, they can greatly impact decisions made when
be achieved initially by a large group planning meetings creating or updating a business plan. To attain these
or activities and then having representatives from each insights, you can conduct customer surveys or reviews,
level come together for smaller collaboration. hold focus groups, negotiations with suppliers and, in
some cases, shareholder approval.
These representatives can then set their own meetings
and communication and gain input from their own
departments to assist in developing business planning.
Key developments and need-to-know information need LEARN MORE
to be consistent and heard. “Keep the messages flowing
for constant reinforcement of the shared ideas, and Focus Groups
give feedback on how ideas are being incorporated into
A focus group’s purpose is to attain external
the process.” Failure to include internal stakeholders in stakeholders’ valuable opinions, thoughts and
business plans can lead to disengagement and making insights on a particular product or service. This is
it almost impossible to create a successful business a qualitative method of measurement and focuses
plan. Without the commitment of internal stakeholders, on the external stakeholder’s thoughts and feelings,
your business plan or business, for that matter, will not which can result in a quite broad, subjective and
open ended.
have the desired outcome that you are trying to achieve.
For more information of Focus Groups,
Disengaged and uninformed stakeholders will prevent
visit https://scnv.io/fCYn
your business plan update or creation.
External stakeholders will have valuable opinions,
thoughts and insights at the beginning of business
planning and the direction that a business is taking.
These opinions, thoughts and insights can serve as a LEARN MORE

Shareholder Approval
Shareholder approval means that for particular
decisions to be made in a public company or
corporation (a company that the general public
can buy shares from), majority shareholders must
approve or vote of such a decision.
Types of a public company or corporation decisions
shareholder value is usually needed are:
• significant changes to the nature or scale of a
company’s activities
• changes to the company’s main undertaking or
direction
• the disposal of a substantial asset to a related
party of the company, a substantial holder of
securities in the company, or an associate of any
of the preceding parties
• the issue of equity securities to related parties.
For more information on shareholder
rights and approval, visit:
https://scnv.io/Va3s

14 BSBOPS601 Develop and implement business plans

 1. Introduction – The Business Plan

1.6 The Executive Summary

The Executive Summary, which can also be known as The Executive Summary should seek to answer the
a Business Plan Summary, is a general overview. This below questions:
overview highlights the main areas of your business plan
1. What is this business plan about?
required to make the business successful and attain
2. Why is this business plan important?
critical information quickly on a new business plan or
change in a business to the intended audience, without 3. What are the results or findings for this business plan
having to read the entire business plan. Some examples for each area of your business?
of an intended audience could be investors, suppliers, 4. How will these results be applied?
executives, employees or lenders and will differ in the The Executive Summary can vary in length depending
level of detail of the main areas of a business plan. For on the complexity of the business plan, the size of the
example, if you were providing your executive summary business and what relevant details are required. Include
to a lender, while you would still include the main areas the below sections, providing relevant, brief information
of your business plan, including the business and using facts and statistics. These areas are included in
operational details, marketing and the future, you would the executive summary and the complete business plan
probably provide more emphasis and information on the as they will cover the key areas needed in understanding
finances. your whole business. “The Executive Summary of
a business plan is designed to capture the reader’s
attention and briefly explain your business, the problem
you’re solving, the target audience and the key financial
information”.

Executive
Description
Summary Sections

This is an opening paragraph setting the intent of the Executive Summary. It advises the purpose
Introduction (e.g., the business opportunity being pursued) and the type of information that the reader will see
about the business and the areas below. This needs to grab the reader’s attention.

The company name, vision, mission values and objectives and background on the business
Business and
if applicable. Contact information and location. Information about employees, founders and
Operational Details
leadership can also be added in this section.

Marketing This is information about the target market and market opportunity for this business.

Where do you anticipate this business to go? Some longer-tenured goals and objectives could
The Future
be highlighted here, such as a five-year plan summary.

Financial research and data that is relevant to your business highlighting the main metrics/data to
The Finances
show financial growth are encouraged.

Conclusion This recaps the main points from each area.

BSBOPS601 Develop and implement business plans 15

1. Introduction – The Business Plan

LEARN MORE

Business Plan Summary Templates and Example

To see some examples of potential business
summary templates you could use, click here.
Executive Summary for PDF & Word
https://scnv.io/748I

To see an example of an Executive

Summary, click here. Elements of an
Executive Summary
https://scnv.io/sk2g

LEARN MORE
Executive Summary Writing Tips
General tips for writing an executive summary are as SME
follows: A Subject Matter Expert has a thorough
understanding of a job or an area in a business.
1. Keep your summary organised and properly edited
For more information on SMEs, click here.
Your information should be relevant, to the point so What is a Subject Matter Expert?
that the main pieces of information are highlighted.
https://scnv.io/3Xd3
Be careful with your wording. Keep it simple, easy to
read and avoid using jargon, buzzwords and repetitive
information. It should be able to be a standalone
document.
2. Ask for help
Activity 1A
Having a professional writer, colleague, or an
SME (Subject Matter Expert) read your Executive
Activity: Business Plan Summary
Summary can help with clarity and objectivity to clarify
understanding, making sure it covers the points you are Begin the skeleton of your Executive Summary
trying to make. for the business you are currently employed
with or a business or industry you’d like to start
3. Summarise a business in. Use one of the templates from
The rest of the business plan will provide more in- HubSpot. Add your and your business’s vision,
depth analysis and information. Keep it short, articulate mission, values and objectives as a starting
and concise. Explain clearly what the purpose is. point.
Remembering this part should be no longer than two This will be a draft, to begin with. You will
pages. complete the rest of this once your business
plan has been completed, as you will need the
4. Finish it last
information from your business plan to write
Most of the information in the Executive Summary will your executive summary.
be added once you have completed the business plan,
Executive Summary for PDF & Word
as a large portion of the executive summary will come
from the information in the business plan. https://scnv.io/RqiI

16 BSBOPS601 Develop and implement business plans

 1. Introduction – The Business Plan

Chapter 1

Review
Questions

Q1. Explain the importance of business planning in your

own words.

Q2. What is the difference between the Vision and

Mission statements?

Q3. In your own words explain why stakeholders are

important to consider in a business plan from an
internal and external point of view?

Q4. Why is it important to have an action plan for

achieving goals and objectives?

BSBOPS601 Develop and implement business plans 17

2. The Business

Chapter 2
The Business

In this chapter, you will learn about how to complete the first area
of your business plan about the physical details of the Business
itself. This will include details about your business registrations,
location and costs, products and services, licenses and permits,
organisational structures, common types of business legislation,
insurances and risk management.

By the end of this chapter,

you will understand:
3 What to include in the Business section
of your Business Plan, which will provide
detailed information in:
3 Registrations
3 Location and costs
3 Products and services
3 Licenses and permits
3 Organisational structures
3 Common types of business legislation
3 Insurances
3 Risk management

18 BSBOPS601 Develop and implement business plans

 2. The Business

2.1 The Business

The Business, the first area of your business plan, will
outline what your business is about and the important LEARN MORE
details needed for your business to function at a basic
level. In other words, what you need to have a business GST and GST Turnover
from a legal and functioning perspective. The following GST stands for the Goods and Services Tax. It is a
details need to be included in this area: 10% tax amount on most* of the goods and services
available in Australia.
1. The Business Name: Include any trading names
*If your business has a GST turnover (or an expected GST
which may differ. turnover) of $75,000 or more.

2. The Business Description: This is where the reader GST Turnover is your total business income.
is introduced to your business. This area will provide For more information on GST
what your business is about and the problem that the Turnover and when to register for
business will solve. It will then propose how to solve GST, visit the https://scnv.io/m4Ox
the problem (the product or product or service being
offered).
It is used by the Australian Taxation Office (ATO) for tax
3. Registration Details: Australian Business Numbers
purposes and needed for most of the transactions for
(ABN), Australian Company Numbers (ACN) (if
goods and services. An ABN identifies a business, and it
applicable) and GST Registrations (Goods and
ensures that the correct business is being dealt with as
Services Tax) and the dates they were registered.
many business names can be similar. Think of an ABN
Australian Business Numbers (ABN) and like a driver’s licence. To be able to drive a car, you need
Australian Company Numbers (ACN) a driver’s licence with a unique number that identifies
you from others that could share a similar name.
An Australian Business Number (ABN) is an eleven-
digit number that businesses with a GST (Goods and
Services Tax) turnover (or an expected GST turnover)
of $75,000 or more in a financial year must obtain. A
business that has a GST turnover (or expected GST
turnover) of less than $75,000 will still need an ABN
but can choose if you register for GST. This is also
regardless of the size, type or structure of a business.

BSBOPS601 Develop and implement business plans 19

2. The Business

LEARN MORE
Activity 2A
Registering for an ABN
The Business
To register for an ABN, visit
https://scnv.io/2zs8 Using the same template continuation for your
Executive Summary, start on the first area of
It is very important to keep your ABN your business plan, The Business.
information up to date. Visit https://
Answer the following, using the information you
scnv.io/4pHP for more information.
have learnt thus far:
• The Business Name
An Australian Company Number is a nine-digit number
• The Business Description
that you need if your business is a company. Not all
businesses are companies. A company is a type of • Registration Details
business structure that is legally separate from the
business owners and is run by a board of directors. The
other point of difference with companies is that they
4. Location: Include the address of your business and
are regulated to ensure they are being managed legally
costs associated with the space. The requirements
by ASIC (The Australian Securities and Investments
will differ depending on the type of business, the size
Commission).
of the location and how the space will be used for
business operations.

LEARN MORE Costs to consider with the location of your business:

• Renting or buying costs: Do you need to buy or rent
out an office building, restaurant or perhaps a factory,
ASIC (The Australian Securities and Investments
for example?
Commission)
ASIC is very strict on their regulation • Utility costs: Utilities such as gas, electricity and
of companies to make sure they water need to be considered as these costs are
are doing the right thing from ongoing and usually vital for the success of a
a securities and investments business location.
perspective. For more information
• Operations and equipment costs: Depending on
on ASIC visit https://scnv.io/x7mR
what your business requires, it may need particular
equipment or facilities to run. If you had an
accounting business with office space, you could
need equipment such as office desks and chairs and
technology such as computers and software.
5. Licences, Permits and Registrations: These will differ
depending on the type of business you have. You
can check what you would need at ABLIS (Australian
Business Licence and Information Service.)

20 BSBOPS601 Develop and implement business plans

 2. The Business

However, let’s look at a few different industries to see some of the different licenses, permits and
registrations required. Licenses, permits, and registrations can vastly differ depending on specifics and your
business industry and can be attained by using the ABLIS (Australian Business Licence and Information
Service.) You will see below some vastly different Licences, Permits and Registrations for industries in a
commercial building, financial services and correctional services.

Example
You are a new commercial building business in Victoria, building a new office building in East
Melbourne, Victoria. You will be promoting your business which is a company that has a
specific logo design. You will pay wages to yourself, employees or contractors. You expect
that you will have a GST Turnover exceeding $75,000 in the financial year. You will require security or police
checks conducted for employees who are working on the office building site. Your company also employs
apprentices. Your job may also affect public property, roads or footpaths and could mean scaffolding on
council-owned land. You will be installing a warm water or a cooling water system. The below Licences,
Permits and Registrations are required:
• Goods and Services Tax (GST) Registration • Occupancy Permit – City of Melbourne
• National Business Name Registration • Permit to Conduct Building Work Out of Hours –
City of Melbourne
• Permit to Create or Interfere with a Vehicle Crossing
– City of Melbourne • Permit to Erect a Hoarding, Gantry or Scaffolding
on Council Land – City of Melbourne
• Registration of Building Practitioners – Commercial
Builder • Permit to Perform Works Near Infrastructure Assets
or Easements
• Asset Protection Permit – City of Melbourne
• Permit to Place Signs – City of Melbourne
• Australian Federal Police Certificate
• Register a Trade Mark
• Building Permit – City of Melbourne
• Register for WorkCover Insurance
• Choose and Register a Domain Name
• Registration as a PAYG Withholder
• Construction Induction Training Card
• Registration as an Australian Company
• Driver Licence – VIC
• Registration of a Training Contract
• National Employment Standards
• Registration of Cooling Tower Systems
• National Police Certificate

BSBOPS601 Develop and Implement Business Plans 21

2. The Business

Example
You are a bank providing financial, insurance and credit services in Perth, Western Australia.
You promote your business which is a company that has a specific logo design. You collect,
hold or use personal and financial information about your customers. You will own a location
space for commercial purposes. You have a monthly payroll exceeding $83,333 (or an annual payroll
exceeding $1,000,000). You also offer benefits to employees beyond their normal wages and pay wages to
yourself, employees or contractors. You expect to have an annual turnover exceeding $75,000. You require
security or police checks for all employees. The below Licences, Permits and Registrations are required:

• Goods and Services Tax (GST) Registration • Building Energy Efficiency Certificate
• Approval of Alternative Method of Identification in • Commercial Copyright Access Licence
Cash Dealings
• Register a Trade Mark
• Approval to Use Certain Words in a Business Name
• Registration as a PAYG Withholder
• Australian Financial Services Licence
• Registration as an Australian Company
• National Business Name Registration
• Registration for Fringe Benefits Tax (FBT)
• Australian Federal Police Certificate
• Registration for Payroll Tax
• Authorisation for the Representative Office of a
• Registration of Working Holiday Maker Employment
Foreign Bank

Example
You are a Correctional Centre in New South Wales. You will hold and use personal information
about individuals. You have a monthly staff payroll exceeding $71,311 (or an annual payroll
exceeding $900,000). You expect to have an annual turnover exceeding $75,000. You require
security or police checks for all employees. You will employ staff and contractors. Will you possess and use
firearms, ammunition or other weapons. You will use a commercial vehicle. You will operate a warm water or a
cooling water system. The below Licences, Permits and Registrations are required:

• Goods and Services Tax (GST) Registration • Firearms Instructor Permit

• National Business Name Registration • NSW Vehicle Registration
• Australian Federal Police Certificate • Registration for Payroll Tax
• Driver Licence – NSW • Regulated Water System Registration

22 BSBOPS601 Develop and Implement Business Plans

 2. The Business

Activity 2B Activity 2C
Licences, Permits and The Business
Registrations: Continue adding to the first area of your
Using the https://scnv.io/gf4s business plan, The Business.
conduct research on the Answer the following, using the information you
Licences, Permits and have learnt thus far:
Registrations required for your
• Location
chosen industry. List them below.
• Licences, Permits and Registration
• Business Websites
6. Business Websites: Providing a link and domain
name.
7. Organisational Structure: Your organisational
structure is essential to your business plan because
LEARN MORE it will help to decipher how you operate and what
requirements and responsibilities will be. It provides
details of ownership, management, key personnel
Business Website and Domain Names and staff. This area can also assist in highlighting
For more information on setting up a business any recruitment needs. Some examples of this can
website and creating and registering for a domain be job titles and their responsibilities and resumes
name, refer to of owners, management and staff. The purpose
How to set up a business website of adding this information into a business plan is
https://scnv.io/8irQ to introduce the business owners and inform the
reader of the experiences, responsibilities of the
business owners and staff, and the reason why the
particular business structure has been chosen for
this business. “In doing this, a sound foundation for
management competence will be established.”

BSBOPS601 Develop and implement business plans 23

2. The Business

Below are some common types of organisational structures:

Organisational
Definition
Structures

This is one individual who runs their own business. They manage and control the entire business
Sole Trader and are legally responsible for all aspects of that business. An example of a sole trader could be a
freelance writer who provides their services to many different companies or businesses.

A company is a legal entity formed by a group of people, usually known as a board of directors
or a board. The profits of the business belong to the company. They can either public or private
companies which will have different ownership structures, regulations, and financial reporting
Company requirements. Examples of a company could be NAB (National Australia Bank) (a public company)
or 7Eleven (a private company). The difference between the two is a private company is owned
by the group of people that formed the company and public company is one that has sold all or a
portion of itself to the public.

A partnership is when two or more people own a business. This can then be categorised into either
a GP (General Partnership), LP (Limited Partnership) or an ILP (Incorporated Limited Partnership.)
GP (General Partnership): Each partner is equally responsible for the business from a liability and
obligation perspective.
LP (Limited Partnership): Each partner has a limited responsibility for the business from a liability
Partnership and obligation perspective because it is dependent on how much financially they have contributed
to the partnership.
ILP (Incorporated Limited Partnership): All partners will have a limited responsibility for the
business from a liability and obligation perspective except one of the partners who has unlimited
responsibility for the business from a liability and obligation perspective. Say the business starts to
fail, the partner with the unlimited responsibility becomes personally responsible for the liability.

A trust is when a person is given a control of power of an asset (a trustee) for a trust (the asset)
Trust
with a legal obligation to hold for beneficiaries (for other people). In this case, for a Business Asset.

24 BSBOPS601 Develop and implement business plans

 2. The Business

Organisational Structure Writing Tips

The purpose of writing your organisational structure is
to make sure your reader has a thorough understanding
Activity 2D
of your organisational structure, your business hierarchy
and the relevant skills, qualifications and employment The Business
history of each individual for your business. It can be a Continue adding to the first area of your
mixture of paragraphs and bullet-point lists. business plan, The Business.
1. The opening paragraph should remind your reader Write your organisational structure, using the
about your business name and the purpose of your organisational structure below as a guide and
business. from the information you have learnt about
organisational structures.
2. Explain your organisational structure you will be
using and why.
3. Introduction of your business hierarchy, starting
with the main owner or owners if they are equally
responsible for the business from a liability and
LEARN MORE
obligation perspective. Write this like a simple
biography including the history of the people in the Business Hierarchy
industry and why they are suited or fit well for this/ Business hierarchy refer to the level of power, status
their position. and job function for employees in a business. A
hierarchy is a system where people are ranked as
4. Introduce the next level of your business hierarchy,
being above or below comparatively according
upper management. Again, write this like a simple to their role or status. This assists in business
biography, including the history of the people in the operations and how decisions and responsibilities
industry and why they are suited or fit well for this/ are distributed. The benefit of this is the well defined
their position. roles and jobs for each individual and a chain of
command to refer to so that business goals and
5. Following the same structure, introduce the
objectives are achieved.
management team members and minority
stakeholders as a simple biography including the For more information on business
history of the people in the industry and why they are hierarchy, read https://scnv.io/ldJy
suited or fit well for this/their position.

BSBOPS601 Develop and implement business plans 25

2. The Business

Example
Organisational Structure
Below is an example of a written Organisational Structure Example

ORGANISATIONAL STRUCTURE
ABC Restaurant will be a Limited Partnership.

Management Summary
John Smith, Sr., MBA., is the founder and CEO of ABC Restaurant. He has started and managed numerous
successful small restaurants over the last ten years. Restaurants started, and managed, includes a breakfast
cafe, food truck, and 24-hour diner. He was responsible for all aspects of the organisation for each business,
from marketing to strategic planning.

Job Responsibilities
CEO:
• Create and execute marketing strategies for business growth.
• Align business strategies with the vision statement.
• Negotiating contracts with vendors.
• Ensure legal compliance for the business.
• Continually examine the firm’s external environment for new market opportunities.
General Manager:
• Control inventory to ensure optimal levels are attained.
• Manage day-to-day operations of the restaurant.
• Serves and cooks during high volume times.
• Interview and hire new employees.
• Assist in the onboarding process for new employees.
Cook:
• Set up all workstations in the kitchen.
• Prepare ingredients to use in cooked and non-cooked foods.
• Check food while cooking for appropriate temperatures.
• Ensure great presentation by dressing dishes as trained.
• Keep a sanitised and clean environment in the kitchen area.
Servers:
• Stock dining area tables with needed items.
• Greet customers when they enter.
• Present dinner’s with menus and helps customers with food/beverages selections.
• Take and serve orders quickly and accurately.

Example sourced from “How to Write a Business Plan: Organizational Structure”

26 BSBOPS601 Develop and Implement Business Plans

 2. The Business

2.2 Products and Services

The products and services information in your business
plan for the Business section will provide a brief outline
of your product or service for your business and some LEARN MORE
brief information of why your market needs it. Although
the next area of your business plan is the full marketing GST Calculator
information and plan, this section should detail enough To calculate GST on your product or
information to get a general overview. service, you can use the https://scnv.
io/2EnM from MoneySmart.com.au

Note
Market Position
You will be able to answer the
Where do your products and services fit into the
following information once you
market? For example, are they high-end, competitive
have completed your marketing
or budget products or services? Make a comparison of
information and plan in Chapter
one or two competitors. To find who your competitors
3 – Marketing. However, below will provide you
are, researching similar products and services and
with the areas of information you will need to
comparing the differences is a good starting point.
answer.
Unique Selling Position
A unique selling position is what differentiates you from
Description and Price your competitors. Provide what makes your product or
Provide some general details of the products and/or service different to your competitors.
service and provide the prices, including GST amount of
the product or service.
Anticipated Demand
What do you anticipate your demand will be for your
The GST amount is a tax of 10% if you are registering
product or service? Think about the nature of products/
your business for GST.
services and whether they are regularly consumable or
more infrequent purchases.

Pricing Strategy
Which pricing strategy has been chosen and why?
There are three common pricing strategies we will
explore that you could use in your business plan.
Businesses have a few options to consider when setting
prices at a lower price, a higher price or the same price.

Penetration Skimming Competition

Pricing Pricing Pricing

BSBOPS601 Develop and implement business plans 27

2. The Business

Penetration Pricing Competition Pricing

Set an initially low price to increase sales. This type of This is when pricing is set to match a competitor’s price
pricing is usually for products or services that are in for the same product or service. It is the easiest out
high demand and already readily available, making the of the three as it is based on public information and a
price the point of difference. It requires a high number of simple way to price a product or service. “Companies
sales based on the low price. “Penetration pricing gives generally set the prices by taking into consideration
an edge to the company because many customers are competition, costs and price sensitivity.”
attracted on the basis of price, or value for money and
1. A comparison of the products or services your
switch brands to adopt the brand offering low pricing.”
competitors offer in relation to yours
Skimming Pricing 2. Sales literature you plan to use, including information
about your marketing materials and the role your
On the opposite spectrum of Penetration Pricing, the
website will play in your sales efforts
price is initially set high to come across as unique or
3. A paragraph or so on how orders from your
special, creating exclusivity to the product. The target
customers will be processed or fulfilled
market is usually the type that would like to have the
product or service right now, regardless of the high 4. Any needs you have in order to create or deliver your
price. Once that market has been satisfied, the price products, such as up-to-date computer equipment
is reduced to cater to a wider market. “Price skimming 5. Any intellectual property, such as trademarks, or legal
is a pricing strategy where businesses tend to markup issues you need to address
the initial price of the product to a much higher rate and 6. Future products or services you plan to offer.
slowly decrease it as time goes on.”
Value to Customers
Growth Potential How do your customers view your products/or services?
What is the anticipated percentage growth of the Is your product or service a necessity or luxury, for
product in the future, and what will drive this growth? example? What is the value to the customer in using
your product/service?

28 BSBOPS601 Develop and implement business plans

 2. The Business

2.3 Operational Details

The operation details will identify all aspects of the Resources
operations of your business. The easiest way to think
There are four types of resources to mention in this area:
about what you need to include in this area is what your
business needs to operate effectively. “Operations is a Physical Resources: Equipment and technology or what
term for the core processes and practices of a business materials are needed to produce your product/service.
that generate most of the revenue.” This will of course Human Resources: Employees, suppliers and
differ depending on the type of business and its needs. recruitment (who are they, what are they supplying/hired
However, listed below are some general key areas to to do, and how will a good business relationship be
consider: maintained).

General Intellectual Resources: Intellectual property strategies,

partnerships and copyrights to protect innovations.
Trading Hours: What are your hours of operation?
Include any trademarks, patents and registered designs.
Think about this from a location and communication
perspective. This could include trading hours from a Financial Resources: Details on financial cost means to
location and details about customer service operation fund for resources required. You will be able to provide
hours if applicable. this information from the information you learn in
Chapter 4 – The Finances.
Communication Mediums: Listing contact numbers,
email addresses and any social media pages. Operations
Payment Options and Policies: Information about your Production: The duration of time to produce the product
warranty, refunds and credit policies. We will cover more or service. Include details about how your product
information about this in this chapter in 2.5 - Legislation or service is developed/created, the people involved,
regarding Consumer Law. customer delivery and third - party involvement. Include
the potential rush in the production process or the
product or service if time is limited
LEARN MORE
Materials: Provide how you source the materials required
for your product or service.
Consumer Law
Capability: How feasible is your product or service?
For more information on Consumer Law, What measure have you undertaken to test the product
visit the ACCC, https://scnv.io/UzvA
or service works and adds value?

Third-Party Affiliations: This could include any details

of memberships, sponsorships or any other related Activity 2E
affiliations related to your business from a product or
service perspective.
The Business
Quality Control: This will provide some brief information
Continue adding to the first area of your
about managing Health and Safety. This information can business plan, The Business.
be answered from your Risk Management Plan and the
Write your operational details information, using
Hierarchy of Control measures and tools which will be
what you have learnt from 2.3 – Operational
covered in this chapter in 2.6–2.10.
Details.

BSBOPS601 Develop and implement business plans 29

2. The Business

2.4 Insurances
The purpose of your business insurance is to help However, a few common types of insurances are:
financially protect your business and others if something
• Workers Compensation: In the event of an injury or
goes wrong. Failure to not have the appropriate
sickness that occurs in a workplace for employees.
insurances for your business can result in incredible
• Public Liability Insurance: If an accident or an injury
financial loss for your business and others, legal action
occurs to the public because of your business.
against your business or a loss of registrations or licenses.
• Professional Indemnity: If your business is accused
As an example, imagine you’re the business owner of a
of negligence if an error or mistake is to occur.
legal firm. A computer in the office has a faulty wire and
• Product or Service Liability: If your product or service
causes a fire. Not only do you need to have insurance
does not meet safety or does not meet the standards
if damage to your office occurs, but to also protect
that the product or service is supposed to, causing it
the public if, let’s say, a passer-by your office ends up
to be defective.
getting injured due to the fire.
• Business Asset Insurance: If you damage Equipment,
Another example could be if you are the owner of a
Technology or Materials your business uses.
restaurant and a customer falls unwell due to the food
they consumed at your restaurant. Failure to have
insurance could cost you greatly if the customer decides LEARN MORE
to take the matter further.
In both examples, the consequences could result in an Types of Insurances
incredible financial loss for your business, legal action To learn more about different types
against your business or a loss of business registrations of insurances, visit
or licenses. Business Insurance
From the above examples, you will also need to conduct https://scnv.io/4uq7
research to attain if there are industry specific insurances
required for your business.

30 BSBOPS601 Develop and implement business plans

 2. The Business

2.5 Legislation
The legislation will also have an impact on your
business. Legislations such as Consumer Law, The
Privacy Act, The Spam Act, Anti-Discrimination Laws
LEARN MORE
and Work Health and Safety are common legislations
that affect every business. Privacy Act
Also, consider industry-specific legislations. You will For more information on the Privacy Act,
need to conduct your own research if you need to visit the ACCC, https://scnv.io/RRqu
adhere to specific laws and regulations depending on
the type of business you have.

Consumer Law
Consumer Law covers consumers’ (or customers’)
right in relation to the right to repairs, replacements
and refunds of a product or service. It also covers
compensation for damages and losses. Imagine you
walk into a pharmacy and pick up a prescription of
antibiotics provided by your doctor. You return home
to notice that the antibiotics provided by the pharmacy
have an expired expiry date. Consumer Law would
require the pharmacy to either provide a refund or a
replacement due to the implications of using an expired
medication.

LEARN MORE

Consumer Law
For more information on Consumer Law,
The Spam Act
visit the ACCC, https://scnv.io/SSXm
The Spam act stops commercial electronic messages
from business via email, SMS, multimedia message
service or instant messaging from being sent without the
The Privacy Act receiver’s consent. Have you ever checked your email to
The Privacy Act protects how personal information of find an email from a sender you do not know? This can
individuals is used concerning the collection, disclosure be an example of a spam message.
and types of information stored by federal public
and private sectors. The Privacy Act is important for
banks, for example when handling customer’s sensitive LEARN MORE
financial information. Failure to handle individuals’
personal financial information could lead to unauthorised Spam Act
individuals having access to information that is not For more information on the Spam Act,
for them to see, financial losses for the customer and visit The Australian Government,
business, and breaches of the Privacy Act. https://scnv.io/4sIl

BSBOPS601 Develop and implement business plans 31

2. The Business

Anti-Discrimination Laws The Safe Work Australia Act

Anti-discrimination laws make it illegal to discriminate The Safe Work Australia Act is the national body that is
against or allow discrimination and harassment of responsible for the ongoing development and evaluation
individuals employed or applying for jobs based on the of the Work Health and Safety (can also be known as
following: Occupational Health and Safety). It assists businesses
in managing risks around health and safety in the
• Age • Race
workplace, including internal and external stakeholders.
• Disability • Sex
Failure to implement a health a safe workplace can
• Sexual preference • Gender status result in legal action, fines and injury.
• Marital status
Imagine your hiring manager for your business is
conducting a job interview with an interviewee. The hiring Website
manager asks the interviewee to answer where they see For specifics on each state, click
themselves if they were to be successful in the role in on the relevant state:
the next five years. As they respond with their answer in
terms of the role and business only, your hiring manager
then asks if they are married and if they plan to start a Victoria
family or add to their existing family next five years. https://scnv.io/rJMk
This is crossing an Anit-discrimination law as it could
appear that your business is hiring based on the status
of an applicant’s marital status and their intent to expand
or start their family.
New South Wales
https://scnv.io/LxYm

LEARN MORE

Anti-Discrimination Laws
Australia Capital Territory
For more information on https://scnv.io/b6be
Anti-Discrimination
Laws, visit https://scnv.io/uN7E

Western Australia
https://scnv.io/DoDE

Queensland
https://scnv.io/dhKL

South Australia
https://scnv.io/gxI1

32 BSBOPS601 Develop and implement business plans

 2. The Business

LEARN MORE

Safe Work Australia

To learn more about Work Health and
Safety in a business, refer to
https://scnv.io/QBas

For more information on Work, Health

and Safety Laws,
visit https://scnv.io/kEKm

Activity 2F
Legislation
Conduct research on the Legislation required for
your chosen industry. List them below. Add to
your business plan Business section.

Activity 2G
Insurances
Conduct research to attain if there are industry-
specific insurances required for your business.
List them below. Add to your business plan
Business section.

BSBOPS601 Develop and implement business plans 33

2. The Business

2.6 Risk Management

Whether expected or unexpected, risk is an occurrence or event that can negatively impact your business. Each
business plan will have its own unique set of potential risks.
Common types of business risks and examples are below:

Risk Type Examples

Fluctuation of costs or interest rates, financing, monetary transactions, payment delinquency,

Financial
liquidity

Operational Loss of workforce, equipment breakdown, disruption to supply chain

Compliance Failure to comply with laws and regulations, codes of practice

External events like weather conditions impacting operations, scarcity of a natural resources
Environmental
required for a project, a changing political environment

An investment that pays off, merging with another company, launching a new brand for your
Strategic
organisation

Risk can come in various sizes, such as a simple human error due to inadequate training or something much bigger,
such as regulatory changes that ban a vital resource. Some risk is preventable, while other types of risk require a plan
of action in order to minimise the impact on your business plan.

34 BSBOPS601 Develop and implement business plans

 2. The Business

2.7 Risk Management Plan

A Risk Management Plan will identify, assess, and
mitigate risks that pose potential threats to the
business plan and its objectives. The development
of a plan is fundamental to minimising the impact of
risk in your business plan. When it comes to how staff
and stakeholders will respond to risk, organisational
structures, the hierarchy of control and training tailored
to your business plan’s needs are tools that can be very
effective.
The steps to developing a Risk Management Plan
include:
1. Identification
2. Assessment
3. Management
4. Monitoring and reviewing

Identification
In order to identify risks that are relevant to your
business plan, you can begin by examining the nature
of the business, the industry in which it operates,
organisational activities and applicable legislation and
regulations. Anything that could potentially negatively
impact the business should be considered a risk.
Consider both internal and external sources of risk, and
be sure to include your organisation’s employees in the
process. Feedback from key stakeholders within the
business can provide valuable insight into what potential
risks there may be. If updating an existing business
plan, review historical records and identify documented
Management
issues. Lastly, consider future plans and any new risks
that may be incurred. In order to manage the risks you have identified and
assessed in your business plan, you have the below
Assessment choices to make. You can:
This stage entails assessing the risks identified in 1. Avoid the risk 3. Transfer the risk
the previous stage for the likelihood of occurrence
2. Reduce the risk 4. Accept the risk
and impact on your business plan. A risk analysis
Avoid the risk by changing business process, equipment
matrix, which is a tool that can be utilised to analyse
or material. Reduce the risk if it cannot be avoided
and categorise risk, providing you with a clearer
with training, policies and procedures, compliance
understanding of which areas require focus.
with applicable legislation, maintenance of facilities, or
Monitoring and Reviewing contingency planning. Alternatively, transfer some or all
of the risk by sub-contracting to another party, pursuing
Regularly monitoring and reviewing your Risk collaborative partnerships, or purchasing additional
Management Plan is vital to ensure it is up-to-date, insurance. Lastly, sometimes you will have no choice to
relevant, and effective. accept the risk and make the best of it.

BSBOPS601 Develop and implement business plans 35

2. The Business

LEARN MORE

Risk Analysis Matrix

A risk analysis matrix is a tool that can be utilised to analyse and categorise risk, providing you with a clearer
understanding of which areas require focus. Below is an example you can use to assist with analysing potential
risks in your business plan. Depending on your business plan’s complexity and type of industry, your probability
levels will be more simple or more detailed.
Severity
Critical: 3 Moderate: 2 Marginal: 1

Probable: 3 High - 9 High - 6 Medium - 3

Probability

Occasional: 2 High - 6 Medium - 4 Low - 2

Improbable: 1 Medium - 3 Low - 2 Low - 1

Severity
Catastrophic: 4 Critical: 3 Marginal: 2 Negligible: 1

Frequent: 4 High - 16 High - 12 Serious - 8 Medium - 4

Probability

Probable: 3 High - 12 Serious - 9 Serious - 6 Medium - 3

Serious - 8 Serious - 6 Medium - 4 Low - 2

Remote: 2

Improbable: 1 Medium - 4 Medium - 3 Low - 2 Low - 1

Severity
Catastrophic: 5 Critical: 4 Moderate: 3 Marginal: 2 Negligible: 1

Frequent: 5 High - 25 High - 20 Serious - 15 Serious - 1 Medium - 5

Probable: 4 High - 20 Serious - 16 Serious - 12 Medium - 8 Medium - 4

Probability

Occasional: 3 Serious - 15 Serious - 12 Medium - 9 Medium - 6 Low - 3

Remote: 2 Serious - 10 Medium - 8 Medium - 6 Medium - 4 Low - 2

Improbable: 1 Medium - 5 Medium - 4 Low - 3 Low - 2 Low - 1

To learn more about Risk Analysis Matrix for your business plan, refer to https://scnv.io/fvgM

36 BSBOPS601 Develop and implement business plans

 2. The Business

2.8 Risk Management Strategies

A risk management strategy identifies, assesses and Strategic Risks
manages risk. It requires regular review, updating
Sometimes risks are necessary to achieve certain
where necessary to address changes made as a result
goals or objectives for a business plan. These are
of risk-based events. Facilitating this process often
considered strategic risks and can assist with achieving
improves your awareness, which results in improved risk
a certain type of value. For example, banks will take
management, especially when risk cannot be avoided.
a risk when lending money to customers in the hopes
The amount of detail in your Risk Management Plan
of increasing profits derived from loan interest. These
will depend on your business plan. To start, familiarise
types of risks require thorough research, as well as
yourself with the various categories of risk that affect
constant development and monitoring. For strategic risk,
your business. You should tailor your Risk Management
management means reducing the probability of whether
Plans components to reflect the different categories
the risk occurs. In this way, organisations can be
of risk, as strategies will be different. “By assessing
confident taking larger risks with the hopes of achieving
risks, you can be actively aware of where uncertainty
a higher reward.
surrounding events or outcomes exists and identify
steps that can be taken to protect the organisation, External Risks
people, and assets concerned.”
External risks are outside of your business’s control.
Preventable Risks Changes in legislation or extreme weather conditions
can have a substantial impact on operations. While
Typically, a preventable risk is one that can be avoided
these types of risk cannot be controlled, you can
and often occurs internally. This is commonly the result
identify, assess and develop a management plan to
of unethical or illegal behaviour. The best way to avoid
mitigate the negative impact on your business plan
preventable risks is to provide clear company guidelines,
should these occur.
as seen below.

Guideline Description

This can provide employees and organisations with a purpose, reminding them what
Mission Statements
they stand for.

Information about the organisation’s expected behaviour towards people internally and
Value Statements
externally.

Expected business conduct, including what is not acceptable behaviour. Some examples
Boundaries
include conflict of interest, bribery, and discrimination.

Adhere to all the above. Managers must be role models and consistently demonstrate the
Lead by Example
organisation’s guidelines.

BSBOPS601 Develop and implement business plans 37

2. The Business

2.9 Contingency Plan

Preparing a Contingency Plan is important if an Contingency planning is not without its challenges. The
uncommon risk or event occurs. A Contingency Plan is list found below includes the most common challenges
a ‘Plan B’. If things do not go as expected in a project organisations experience when developing Contingency
and risk becomes identifiable, the Contingency Plan is Plans.
in place to mitigate any potential negative impact on the
• Not taking it seriously: People may not believe a
business. Contingency planning is a fundamental part of
Contingency Plan is necessary, which reduces the
the Risk Management Plan.
motivation to create one, or they create one that is
not comprehensive enough.
Preparing a Contingency Plan
• Lack of awareness: If stakeholders in an organisation
Four major guidelines of preparing a Contingency Plan
are not aware of the plan, there are likely to be delays
includes:
in applying the Contingency Plan when it is needed.
1. Identify Plan Triggers: Define the criteria that will • Not identifying all risks: If a risk is not properly
trigger the implementation of the Contingency Plan. identified, you cannot prepare a Contingency Plan.
2. Define the 5 W’s: This includes describing who, what,
where, when, and why.
3. Reporting and Communication Guidelines: Determine
how internal and external stakeholders are notified
and who will draft communications with timeframes.
4. Monitor: Ensure the Contingency Plan is monitored
regularly and updated often.

38 BSBOPS601 Develop and implement business plans

 2. The Business

2.10 Hierarchy of Control

As mentioned earlier, a business hierarchy refers to the To use the Hierarchy of Control Structure, you have
level of power, status and job function for employees in the below choices of control tools to choose from,
a business. A hierarchy is a system where people are according to Safe Work Australia. It is wise to consider
ranked above or below comparatively according to their how much time will be needed to introduce the control
role or status. This assists in business operations and tool and if it is a temporary fix while a more permanent
how decisions and responsibilities are distributed. The control tool is prepared. It will all depend on the type
benefit includes well-defined roles and jobs for each of risk it is to your business plan. Sometimes it is
individual and a chain of command to refer to so that appropriate to have a mix of control tools to manage risk
business goals and objectives are achieved. in your business plan effectively.
However, the Hierarchy of Control refers to a risk
management system that assists in controlling risks in
your business. It works using a step-by-step system
for ensuring risks are reduced, prevented or eliminated
using a ranking of control tools from highest to lowest
levels of effectiveness. The highest control in the
Hierarchy of Control is of course, the elimination of risk,
followed by the reduction of risk.

Hierarchy of Control Structure

Employers have a requirement to adhere to the
Occupational Health and Safety Act 2004 (OHS Act)
by “Eliminating or reducing health and safety risks,
so far as is reasonably practicable.” The Hierarchy
of Control assists in meeting the OHS Act rules and
responsibilities. While the elimination of a risk is the best
result, that is not always possible. If the employer cannot
eliminate risks, they need to use the Hierarchy of Control
and select the most effective, appropriate tool that will
reduce that risk.

LEARN MORE

Occupational Health and Safety Act 2004 (OHS Act)

To learn more about the Occupational
Health and Safety Act 2004,
https://scnv.io/rG5I

A summary of the OHS Act can be found

https://scnv.io/xf8e

BSBOPS601 Develop and implement business plans 39

2. The Business

1. Eliminating the risk 3. Reducing the risk with administrative controls

Eliminating the risk is the strongest control measure of An administrative control is a type of control system
risk in the Hierarchy of Control. Let’s say you work in that works on methods and procedures being followed.
an office that has a step that is a trip hazard. It is a step Let’s revisit the office that has a step that is a trip hazard
that most don’t notice, and there have been several that again. Placing a sign saying “watch your step” next to
have tripped and fallen. If we were using this control the step can warn people of the risk. Or Imagine you are
tool, eliminating the risk would remove the step and a roof tiler. You have a risk that when you are working
make it a flat surface. The risk has now been eliminated. on a roof, you can fall. We cannot eliminate the risk, but
there are procedures to follow that control the risk of
2. Reducing the risk by substitution, isolation or
injury when followed.
engineering controls
If we cannot eliminate the risk, we need to reduce the 4. Reducing the risk of using personal protective
risk. This can be done in a few different ways. equipment (PPE)
Personal protective equipment (PPE) is any type of
• Substitution: Bring in a substitution that can make
equipment that employees use or wear to reduce risks.
the risk safer. Imagine you work in a restaurant, and
Some examples could include:
you clean the cutlery and dishes in the kitchens. The
dishwashing liquid is very potent and causes irritation • goggles • gloves
to your skin, which is affecting your ability to perform • respirators • safety footwear
your role. Substituting for a less potent and abrasive
• face masks • sunscreen
dishwashing liquid could be a substitute for this.
• hard hats
• Isolation: Isolating the risk so it doesn’t affect
your business can reduce risk. If you work on a
construction site and there is a large pile of debris
Note
with off cuts of wood, metal and other sharp and
heavy objects, placing a makeshift barrier around the When to use Administrative
Controls and PPE
debris can help to make sure that workers do not trip
or fall from the debris. This isolates the area until it Administrative Controls and PPE
rely on human behaviour and
can be removed, therefore reducing the risk.
supervision and are only effective if followed
• Engineering Controls: An engineering control is a or used properly. It is advised to only use
physical tool used to assist in reducing risk. If you these when there are no other options or as a
work in a factory, for example, using a trolley is a temporary assistance until a proper risk plan has
been developed.
physical tool to move heavy pallets of stock will
prevent injury from lifting heavy objects.

Activity 2H
Risk Management Assessment
Develop a Risk Assessment of the following
elements:
1. Preventable Risks
2. Strategic Risks
3. External Risks
Add to your business plan Business section.

40 BSBOPS601 Develop and implement business plans

 2. The Business

Activity 2I Activity 2L
Risk Analysis Matrix The Business Section Checklist
Create a Risk Analysis Matrix from the elements By now, you should have completed all the
identified in Learning Activity 2H – Risk areas of the first area of your business plan, the
Management Assessment. business except for the Products and Services
section, as you will need to complete Chapter 3 –
Add to your business plan Business section
Marketing to attain the relevant information.
Check off the list found below. If you have not
completed something, make sure to go back and
double-check:

Activity 2J • The Business Name

• Registration Details

Contingency Plan • Location

Create a Contingency Plan from what you have • Licenses, Permits and Registrations
learnt in 2.9 – Contingency Plan. • Business Websites
Add to your business plan Business section. • Organisational Structure
• Products and Services: (after you’ve completed
Chapter 3 – Marketing)
• Operational details

Activity 2K • Insurances and Legislation

• Risk Management Assessment

Hierarchy Of control • Risk Analysis Matrix

Based on your risk assessment, advise what • Contingency Plan

Hierarchy of Control Tools will be used and why. • Hierarchy of Control
Add to your business plan Business section.

BSBOPS601 Develop and implement business plans 41

2. The Business

Chapter 2

Review
Questions
Q1. What is the difference between Australian Business
Numbers (ABN) and Australian Company Numbers
(ACN)?

Q2. Provide examples of how the following legislations

could affect your business.

• Consumer Law

• The Privacy Act

Q3. In your own words, explain the importance of an

organisational structure for your business plan?

Q4. In your own words, explain the importance of the

Hierarchy of Control in risk management.

42 BSBOPS601 Develop and implement business plans

 3. Marketing

Chapter 3
Marketing

In this chapter, you will learn about how to complete the third area
of your business plan, Marketing. It will detail your market for your
business plan and will provide an overview of market research,
industry analysis and information on your customers.

By the end of this chapter,

you will understand:
3 how to identify your customer
demographics
3 to conduct market research for your
customer demographics and competitors
3 complete industry analysis using a
SWOT Analysis
3 information about sales, advertising and
promotional strategies.

BSBOPS601 Develop and implement business plans 43

3. Marketing

3.1 Customer Demographics

Customer demographics enable you to prepare an
effective business. Without this information, you
will not have a clear idea of your market or even
have a sufficient market to support your business
Activity 3A
plan, therefore placing you at a disadvantage.
Having customer demographics data gives you an Customer Demographics
understanding of what type of person or business might Using the same template continuation for your
be interested in your product or service. It will provide Executive Summary and the second section
you with more detail about your demand, pricing and of the business plan, The Business, begin the
market situation for your product or service. Marketing section of your business plan.
Customer demographics include: Answer the following customer demographics
for your business plan using the information you
• Age • Occupation have learnt thus far:
• Gender • Family size
• Age • Occupation
• Race • Religion
• Gender • Family size
• Income • Social class
• Race • Religion
• Education
• Income • Social class
• Education

44 BSBOPS601 Develop and implement business plans

 3. Marketing

3.2 Market Research

Market research is a tool that assists you with the As covered in Chapter 1, it is vital to have a clear and
market section of your business plan because it collects defined set of goals and objectives to achieve the best
and provides information about your customers. It also results from your market research, as it will assist in
helps provides information on competitors and see what finding the best type of market research to conduct.
the competition is doing to keep up with the market
trend. Primary Research:
Competitors are similar businesses that can offer the Primary research is when information comes from
same or similar products or services to yours. The an original source. These are qualitative methods of
competitors in your market are incredibly important to measurement. Some examples of this include:
not only identify but to understand and research. Failure • Surveys
to identify and research your competitors will provide
• Face to face interviews
you with a disadvantage when changing or bringing
• Focus groups
your business to the market. Gathering information of
between 2–5 major competitors is enough to understand • Customer feedback
who you are up against.

LEARN MORE
Note
Market Trend Focus Groups
A market Trend is the direction of A focus group’s purpose is to attain external markets
movement of the financial market valuable opinions, thoughts and insights on a
over time. particular product or service. This is a qualitative
method of measurement and focuses on the
external stakeholder’s thoughts and feelings, which
can result in a quite broad, subjective and open-
ended.
Market research helps to:
• Identify customers For more information of Focus Groups,
• Learn more about existing customers visit https://scnv.io/1nX6

• Make better decisions about existing and new

products or services
• Understand competitors and market trends Secondary Research:
• Trial new markets Secondary research is when information comes from a
• Finding pricing and promotion opportunities. secondary source. It has already been tested, collected
and analysed by another source. This can be a mixture
of quantitative and qualitative methods of measurement:
Some examples of this include:
• ABS (Australian Bureau of Statistics)
• Social Media
• Websites
• Industry or trades publications
• Newspapers
• IBISWorld.

BSBOPS601 Develop and implement business plans 45

3. Marketing

Note LEARN MORE

Refresher: Quantitative
and Qualitative Methods of Secondary Research
Measurement
For more information on the Australian
A quantitative method of measurement Bureau of Statistics,
measures results from counting or measuring https://scnv.io/ft9m
something. Some examples could include
time (duration) or a number to work towards or
For more information on IBISWorld,
measure a target. They are very clear, objective https://scnv.io/pCwD
and fixed measurements.
• Number-based Analysing the result:
• Statistical tests used for analysis
After deciding on what type of information and how you
• Surveys or very structured interviews and will attain that information, you can start to collect it and
observations analyse it. Be mindful of your own bias, and don’t let it
• Documents for numeric information. affect your research. Try to remove any preconceived
A qualitative method of measurement is not from ideas that you may think you will get from your results.
counting or measuring something. It is more To avoid this, you can consider the following:
subjective, providing a more in-depth view and a
less fixed measurement. • Keep your goals and objectives in mind.
• Categorise the data by your goals and objectives and
• Focus groups, in-depth interviews
see what data matches.
• Reviews of documents trying to pick up types
• Use tables or lists to make it easier to identify
of trends or themes
themes.
• Usually, text or word-based
• It can be valid and reliable if the person
undertaking the research skill of the
researcher. Activity 3B
Market Research
Select one primary and secondary market
research type that you will conduct for your
business plan. Select the most appropriate based
on what you have learnt thus far.
Add to your business plan Marketing section.

46 BSBOPS601 Develop and implement business plans

 3. Marketing

3.3 Industry Analysis

Industry analysis is used to understand the competitive One very common way to conduct industry analysis is
areas of your industry. It’s a handy tool to be able to with a SWOT Analysis.
see where your business plan and business fits with
your competitors. Having this information is very handy SWOT Analysis
for making improvement or changes to your business A SWOT Analysis stands for Strengths, Weaknesses,
plan. It can assess information such as the future of Opportunities and Threats Analysis for your business. It
an industry, how advancements in technology affect is a strategic planning process that helps to identify the
your industry and the need for your industry. Let’s say advantages of your business and areas of improvement
you wanted to start a newspaper as your business, of things to consider from a competitor’s point of view.
similar to The Age or The Herald Sun, and you wanted “For example, a SWOT analysis can help you decide
to focus on the printed hard copy newspaper to buy. if you should introduce a new product or service or
Industry analysis would provide you with the methods change your processes.” This is particularly important
that competitors such as The Age or The Herald Sun are with your business plan, whether you are starting a new
doing to keep the business’s going. business or changing your existing business plan.

BSBOPS601 Develop and implement business plans 47

3. Marketing

Strengths
The strengths section will highlight the competitive
Example
advantages that a business already has in the market.
In the case of a new business, after researching the SWOT Analysis
competitive market and based on their results to how To see an example of
you could use this to prove the strengths your business a SWOT Analysis,
will have. These are the main points to highlight the https://scnv.io/G5mM
positives in your business operation and strategy. “The
strengths section allows the company to consider its
competitive advantages in the marketplace.”

Weaknesses
The weaknesses section seeks to identify areas of Activity 3C
improvement or acknowledgement of the existence
of weaknesses. It may not seem advisable to point Marketing
out weaknesses, but knowing your weaknesses can
Complete a SWOT Analysis of your business and
minimise their impact on your strategy and goals. This one major competitor.
could also assist in adding options in a risk management
Use the following https://scnv.
plan or contingency plan if these weaknesses caused
io/e0vA to see some examples of
an event or negative impact in the future. “It may seem
strengths, weaknesses, opportunities
counterintuitive that a company would see advantages
and threats. You can delete the
in assessing its weaknesses but understanding them entries and add your own.
makes them easier to deal with.”
Add to your business plan Marketing
Opportunities section.

The opportunities section identifies new opportunities

and ways for the business to improve and grow. This
area should be constantly monitored as markets
emerge, improve and grow as well. “These are
significant advantages over companies that fail to
routinely assess opportunities and miss out on the
ability to gain new business, market share and access to
capital.”

Threats
The threats section flags business threats from an
external perspective. These could also be included in
a risk management plan or a contingency plan. The
benefit of identifying threats is to be prepared for them
if they occur and to be able to take quick action to face
or not have the threat occur at all. Some examples of
threats to a business could be regulations, legislation
or new market trends. “By assessing these risks and
challenges, company leaders can better prepare them or
decide how to respond from a strategic standpoint.”

48 BSBOPS601 Develop and implement business plans

 3. Marketing

3.4 Sales and Advertising

Now that you have identified your customer
demographics and competitors, you will need to
Activity 3D
understand and identify your sales and advertising
strategies. This is vital as this is how you will generate Marketing
profit, and it describes how you will sell and advertise Use SMART and CLEAR goal and objectives
your product or service. The first step is to create sales methodologies as covered in Chapter 1, to
goals and objectives. Using SMART and CLEAR goal identify and define your sales goals and
and objective methodologies as covered in Chapter 1, objectives.
identify and define your goals and objectives. Please Add to your business plan Marketing section.
revisit Chapter 1 for a refresher.

BSBOPS601 Develop and implement business plans 49

3. Marketing

Sales and Distribution Plan Unique Selling Proposition

The Sales and Distribution plan identifies the type of A Unique Selling Proposition is a statement that
channels that will be used, products and services via highlights how your product or service is different to
those channels, percentage of sales expected using your competition. Take a unique quality that is (hopefully)
those channels, advantages, and disadvantages of better than your competition and highlight it in a
using those channels, including overcoming challenges. sentence. This can assist in your sales and distribution
This will take research and will also depend on the type plan by highlighting the point of difference when via
of business. Your market research can help identify the those channels.
best channels for your customer demographic and what
your competitors are using.
Some common Sales and Distribution channels include: Example
• Online • Other companies Unique Selling Proposition
• Retail store • Factory Well-known brands unique selling
• House parties propositions:

There are also three common types of sales techniques M&Ms: “The milk chocolate melts in your mouth,
you could use in your Sales and Distribution Plan. not in your hand.”
Product Selling, Solution Selling or Insight Selling. This Avis: “We’re number two. We try harder.”
can provide a method to how to sell your product or
service.

Sales
Description
Technique Activity 3E
Product Selling the advantages of a product or
Selling service Marketing
Start your Sales and Distribution Plan. Research
Identifying a customer pain point the type of channels that will be used, products
Solution
and matching a product or service to and services via those channels, percentage of
Selling
assist with that pain point sales expected using those channels, advantages
and disadvantages of using those channels,
Identifying a pain point with a including how to overcome challenges.
Insight customer that they were not aware of
Selling and matching a product or service to Add to your business plan Marketing section.
assist with that pain point

50 BSBOPS601 Develop and implement business plans

 3. Marketing

Advertising and Promotional Strategies

Advertising Strategies will identify the best way to communicate paid for mass-produced messages and promotions
about a product or service. As you pay for advertising, you have a greater power of input to the delivery.
Common types of Advertising Strategies are:

Advertising Strategy Description

Narrow down on a specific type of customer looking at demographic, psychology of the

Segmentation Strategy
demographic and usage patterns.

A creative type strategy which causes a message to achieve a memory and brand recall in
Message Strategy
the customer’s mind – this could be through slogans, jingles, creative visuals or humour.

Use a characteristic of your product or service and highlighting it. This could include
Positioning Strategy
highlighting price, quality, competition or product use.

Decide which media medium you will use to advertise your product or service, such as TV,
Media Strategy
print, radio or social media.

Promotional Strategies Point-of-Sale Promotion and End-Cap

Promotion Strategies identify what types of ways you
Marketing
will promote your product or service. Point-of-sale and end-cap marketing assist in
positioning products or services and works on a strategy
Common types of Promotional Strategies are as follows.
of convenience and impulse buying.
Social Media Promotion End-cap marketing is when a product or service
Social media platforms such as Facebook, Instagram, is positioned at the end of an aisle in a store. It is
Twitter and LinkedIn are a way to promote your product positioned there to sell or move a product or service
or service, connecting you with a world of potential quickly. It is positioned there for easy accessibility for a
customers and can see your business from a more customer.
relaxed and personal perspective. This can also assist Point-of-sale promotion is when a product or service
in decreasing the divide between the business and the is positioned at a point of sale. This could mean at
customer. a register in a retail shop or flyers at a reception of a
business and will be noticed or bought as a customer
Product Giveaways and Samples waits to be assisted.
Product Giveaways and Samples help to entice potential
customers to try your product or service. If the potential Customer Referral Incentive Program
customer has a trial or testing of a product or service for A customer referral incentive program encourages
free and they are satisfied with the product or service, current customers to refer potential new customers to
they will be more likely to return to your business. the product or service. To entice a current customer to
refer, you can use incentives such as discounts, free
Branded Promotional Gifts products or services or cash rewards. It is a win for both
Giving away branded promotional gifts can be a very business and customer.
effective move. It might be a branded mug, pen or
notepad, for example, an everyday item that customers
can use, which also has your business in continual sight.

BSBOPS601 Develop and implement business plans 51

3. Marketing

After-Sale Customer Surveys

After-Sale Customer Surveys work to get feedback
about your product or service experiences for your
Activity 3H
business. It can assist in feedback about your product
or service and be a promotional move and encourage The Marketing Section Checklist
more sales and promotion in your product or service. By now, you should have completed all the areas
of the third area of your business plan, the
Marketing section.
Check off the list found below. If you have not
Activity 3F completed something, make sure to go back and
double-check:
Marketing • Customer Demographics
Add your Advertising and Promotional
• Market Research
Strategies to the Sales and Distribution Plan and
why you are using such strategies. • SWOT Analysis of your business and one major
Add to your business plan Marketing section. competitor

• Identify and define your sales goals and

objectives

Activity 3G • Sales and Distribution Plan (Including

Advertising and Promotional Strategies)

The Market • Th Products and Services information in

Chapter 2 – The Business, now that you have
Answer the following about the 2–5 different
completed the Marketing section of your
competitors you have researched:
business plan.
1. What are their sales techniques?
You should have now completed the second and
2. What type of advertising strategies do they use? third areas of your business plan – The Business
3. Where are they promoting their business? and Marketing.

52 BSBOPS601 Develop and implement business plans

 3. Marketing

Chapter 3

Review
Questions

Q1. In your own words, why is it important to identify

your customer demographic?

Q2. What is the difference between Threats and

Weaknesses in a SWOT Analysis?

Q3. In your own words, why is it important to have a

Sales and Distribution Plan?

Q4. Nike’s slogan “Just Do it” is a perfect example of

what type of advertising strategy?

BSBOPS601 Develop and implement business plans 53

4. The Finances

Chapter 4
The Finances

In this chapter, you will learn about how to complete the fourth
section of a business plan, The Finances. It will cover what you
will need to include in your business plan about sourcing finance,
calculating financial predictions and assumptions and developing
financial goals and objectives.

By the end of this chapter,

you will understand:
3 understand the purpose of the finances
section of a business plan

3 calculate financial predictions and

assumptions

3 have knowledge of different types of

finance sources

3 develop financial goals and objectives

3 calculate financial predictions and

assumptions.

54 BSBOPS601 Develop and implement business plans

 4. The Finances

4.1 Finance Sources

The purpose of finance for your business is to help There are many different ways of sourcing funding
with paying for the running of your business, so your for your business. The following are some common
business has everything it needs to operate well. methods of sourcing finance for your business.
Businesses will require finances for different reasons and
• Crowdfunding: Sourcing finance from the public for
for different lengths of time. This will differ depending on
small to medium-sized businesses. This is different
the business and its needs. This is important, especially
from a donation as the investor will receive shares in
if the reader of your business plan is an investor or a
exchange.
Lender.
• Bootstrapping: Enables small businesses to run a
Some of the common reasons that businesses will need business with very little overhead and for those eager
finance include: to get their business running very quickly. Achieving
• Start-up costs: This is for new businesses. Before this could include using loans or credit cards to pay
a business begins operation, it will need finance to for costs, multitasking jobs to cut costs or working
attain things such as space, equipment, recruitment from home instead of renting a space.
and marketing. • Business Angels: Individuals that invest in a business
• Running costs: Once everything is set up, you will and have direct involvement in the business with their
need to make sure you have the finance to keep up knowledge, capitals or networks.
the operating cost such as materials, labour costs • Venture Capital: An investment of skills and funding
and costs of utilities. for risky business situations where there is a high-risk
• Recruitment costs: Cost in recruiting could include threat but high profit if it is successful.
costs to advertise the role, undertaking interviews, or • Family Loans: Asking family for funds to assist with
using a space to conduct interviews. financing your business. A general rule is to take
• Marketing costs: This includes the marketing and caution in this source of finance as this can be
advertising of your business costs. The marketing complicated, and relationships can become strained
area of your business plan should provide you with if not managed properly. Creating a contract and
the information to source out the costs of your treating it professionally is advised.
marketing plan. • Bank Loans: Applying for a business loan at a bank
or lending company. It would be advisable to do your
research about different borrowing capacity, rates,
fees and repayment details. Speaking to a financial
advisor can also assist in making the right choice in a
bank loan.

BSBOPS601 Develop and implement business plans 55

4. The Finances

LEARN MORE

Business Angels
For more information on Business
Angels, head to Business Angels

https://scnv.io/u88f

Activity 4A
The Finances
Identify the process of the two finance sources
you have learnt above and explain the steps from
start to finish of attaining them. This will require
you to conduct your own research. Choosing
finance sources that you would use in your own
business is advised.
Treat this as if you were explaining to someone
how you would go about attaining this finance.
Add to your business plan Finance section.

4.2 Financial Goals and Objectives

Setting financial goals is like developing your own plan, 4. Identify how much you need to achieve your first
including an action plan for you to follow. Following the goal.
same steps for setting business objectives and goals 5. Budget where possible to meet that goal.
that you learnt in Chapter 1 will assist in being able
6. Identify your financial objectives. These are different
to not only identify but create steps to achieving your
to your financial goals as they are in the form of
financial goals and objectives. Research as much detail
sales or profit targets. You can also cover financial
as possible is recommended in listing your financial
management goals in this area.
goals and objectives. Having this in your business plan
7. Finance required (if any). Include how much is
will assist the reader in making you have the financial
needed upfront, where the funds will be obtained and
aspect of your business covered.
what portion is required from loans, investors or other
The principles of developing financial goals are as forms of finance.
follows:
Financial Goals and Objectives Areas to
1. Identify financial goals by being as specific as
Focus on
possible, include short- or long-term goals.
To help you narrow down and assist with identifying your
2. Estimate the costs of reaching each goal.
goals and objectives, here are some common areas to
3. Set a target date for each goal.
focus on.

56 BSBOPS601 Develop and implement business plans

 4. The Finances

Increasing your Revenue Decreasing your Costs

One of the main financial goals and objectives for your It is recommended that you review your expenses to
business is to increase your revenue. “Revenue differs see if there are any cost you can decrease by research,
from sales in that sales refers to units, while revenue bartering and simply asking the question to companies
refers to amounts.” You can use a variety of tools, such that you pay costs to. Some examples could be asking
as industry and market analysis. Using market research for reductions in utility costs, negotiating a contract with
and industry research, you learnt about in Chapter suppliers, asking for a review on your interest rate if you
3 – Marketing, you will apply the same research and have a bank loan, account and marketing costs. These
analysis from a financial perspective. Remember to simple suggestions can help to decrease your costs
apply your SMART and CLEAR goals and objectives and potentially allow you to put more money into other
methodologies with your revenue goals. financial goals and objectives, such as improving your
gross profit margin.

Improving your Profit Margin

A Gross Profit Margin is a metric analysis to assess a
business’s financial health. You calculate this by the
amount of money left over from your product or services
sales after subtracting the cost of goods sold (COGS).

LEARN MORE

Cost of Goods Sold (COGS)

Cost of Goods Sold (COGS) measures
the cost incurred with the production
of products or services. It includes
material cost, direct labour cost and
direct factory overheads.

For more information, https://scnv.io/YJA1

Note
Calculating your gross profit
margin
The calculation to identify your
LEARN MORE
gross profit margin is:

Calculating your Revenue Sales - Total Expenses ÷ Revenue x 100

Revenue is the income earned by a business over
a period of time. The amount of revenue earned
depends on the number of items sold and their
selling price.
Revenue = Price x Quantity

BSBOPS601 Develop and implement business plans 57

4. The Finances

Debt Management
Reducing debt can help reduce cost and assist with LEARN MORE
your credit score, if applicable. Reducing the cost of
interest rates and then increasing your payments can
For more information about financial
assist in paying down debts, especially from a loan management for your business and
perspective. “Meet with your banker and other lenders business plan, read Primary Goals of
to determine if you can get more favourable terms, Financial Management.
which might require transferring your business loan from Primary Goals of Financial
one bank to another.” Management

Cash Flow Planning https://scnv.io/kWQu

Cash flow planning is a plan to ensure that you know

how much you need to pay expenses and keep track
of exactly what you are spending. “Create a cash flow
budget that lets you see the exact amount of money
you might take in and owe each month, in addition to
creating a budget that shows your monthly averages.”
Activity 4B
The Finances
LEARN MORE Create your own financial goals and objectives
worksheet. Conduct your own research to
determine financial requirements and whether
Cash Flow Budget your objectives are achievable
For more information about how to Things to keep in mind:
prepare a cash flow budget, take a
look at https://scnv.io/xEZq 1. The what - what do you want to achieve?
2. The how - how will you do this?
3. The when - when do you want to achieve this by?
Prepare a Budget
Add to your business plan Finance section.
For more information about how to
prepare a budget for your business and
business plan, visit Business Victoria -
Prepare a Budget.

https://scnv.io/CjO2

Do your own Books

For more information about basic
bookkeeping principles for your
business and business plan, visit
https://scnv.io/y2lS

58 BSBOPS601 Develop and implement business plans

 4. The Finances

4.3 Financial Assumptions

Financial assumptions for your business are necessary Areas to include with a balance sheet forecast:
to know roughly how much you will need for your
• Assets: These are all resources used and owned in
financial goals and objectives of your business plan.
your business.
“They include income and expense assumptions as
• Liabilities: These are all resources used and owned
well as the inventory and accounts receivable in a
by third parties.
balance sheet”. Financial assumptions are important
to include in your business plan. They will provide • Equity: The value of all assets attributable to the
financial information for the reader to know that you business.
have predicted from a financial perspective for your
Creating a Balance Sheet Forecast
business. The two financial assumptions to include in
your business plan are a balance sheet forecast. and an 1. Forecast your networking capital
expected cash flow statement. Forecasting your network capital is estimating your total
current asset’s liabilities and equity. For an established
Balance Sheet Forecast business, after listing the current network capital, you
A balance sheet forecast lists the expenses, assets and can use historical data to see trends and history or
liabilities to future predict financial assumptions. It’s a expenses. It is recommended to use at least two years’
great tool to keep track and forecast expenses to make worth of financial data as that will provide enough time
sure you can set a reasonable expectation of finances to collate a more accurate interpretation of the future.
required. “A forecasting balance sheet is a useful tool For a new business not having historical financial data,
for business planning in general, and it particularly it would be simply listing all the expenses, assets and
benefits those responsible for arranging and bringing in liabilities and using the research you have conducted
additional financing”. in your business plan to make some estimated
assumptions to present.

BSBOPS601 Develop and implement business plans 59

4. The Finances

2. Project fixed assets 5. Forecast cash position

Fixed assets are long-term assets that you use in your A cash position is the amount of money that a business
business to produce your product or service. This, has at a particular time. Your cash flow statement, which
therefore, can make it very easy to predict the future you will learn about next, can help you estimate this.
asset. Some examples of fixed assets could be office However, use the below calculation to forecast your
furniture, machinery or a building. cash position:
Using the below calculation, calculate your projected Projected Cash Position = Last Year’s Cash Position
fixed assets: + Change in Cash
Projected Fixed Assets = Fixed Assets Last Year +
Capital Expenditures - Depreciation
3. Estimate debt
Using the below calculation, calculate your projected
Activity 4C
financial debt:
The Finances
Projected Financial Debt = Financial Debt Beginning of
Create a Balance Sheet forecast
Year + Change in Financial Debt
for your business using the below
4. Forecast equity position template from https://scnv.io/ezuV
Equity is the balance of an asset minus any liabilities
You can update your figures as you type.
associated with the asset. An example of this could be
that you have a $30,000 car, but you owe $10,000 on the Add to your business plan Finance section.
car. This would make your equity $20,000.
Using the below calculation, calculate your business’s
equity: Expected Cash Flow Statement
Projected Equity = Equity Last Year + Net Income – An Expected Cash Flow Statement will provide an
Dividends + Change in Equity estimation of your incoming and outgoing cash to reflect
a monthly cash balance. This will show the readers of
your business plan how you intend to pay bay back
amounts owing and keep the business running during
operation. “While both lenders and investors want your
small business to generate solid net income and have
a strong balance sheet, cash flow is more important. It
is from cash flow that you can repay loans or distribute
cash to investors from profits.” For an existing business,
you will need to look at the previous year’s sales
and decide if you need to make changes based on
history and trends. For a new business, you will need
to estimate your cash flow. Refer back to Cash Flow
Planning from this chapter.

60 BSBOPS601 Develop and implement business plans

 4. The Finances

Cash flow sources will differ depending on the type of

business you have. However, some common examples
are:
Activity 4E
1. GST or tax refunds
2. Extra equity in the business The Finances Section Checklist
3. Government grants
By now, you should have completed all the areas of
4. Loans are paid back, or you sell an asset the fourth area of your business plan; The Finances
5. Potential royalties, franchise or licence fees section.
Check off the list found below. If you have not
Steps to Creating a Cash Flow Statement
completed something, make sure to go back and
1. Detail all your estimated cash flow and expenses: double-check.
this needs to be done in detail by working out what it • Identify the process of 2 finance sources for your
costs to make your business and product or service business plan.
run.
• Create your own financial goals and objectives
2. Remember any additional costs: things to consider worksheet.
are expenses such as bank fees, loan repayments or
• Create a Balance Sheet Forecast.
new assets.
• Create and Expected Cash Flow Statement.
3. Put the details of all your estimated cash flow and
expenses together by adding your incoming cashflow You should have now completed the second third
and deducing your outgoing cashflow, picking a time and fourth areas of your business plan; The
period to calculate (usually by a month) the number Business, Marketing and the Finances section.
left at the end of the month is your figure, called the
closing cash balance which then becomes the cash
balance for the next month.
4. Review the estimated cash flow and expenses: an
incredibly important step to double-check your Activity 4F
calculations. This will highlight the differences
between the estimated amount and the actual
Completing the Business Plan
amount after the calculation has been double-
checked.
Summary
In Chapter 1, you began the skeleton of your
Executive Summary for the business you are
currently employed with, or a business or industry
Activity 4D you’d like to start a business in. You have used
one of the HubSpot templates and added your
business’s vision, mission, values, and objectives as
The Finances a starting point.
Create an Expected Cash Flow Now that your business plan has been completed
Statement for your business and you have all the information from your
using the below template from business plan complete your executive summary.
https://scnv.io/0VUg
You can update your figures as you type.
Add to your business plan Finance section.

BSBOPS601 Develop and implement business plans 61

4. The Finances

Chapter 4

Review
Questions
Q1. In your own words, explain the importance of
making financial goals and objectives.

Q2. What is Bootstrapping, and what are the

advantages and disadvantages of it?

Q3. What is Venture Capital, and what are the

advantages and disadvantages of it?

Q4. In your own words, explain the purpose of Financial

Assumptions.

62 BSBOPS601 Develop and implement business plans

 4. The Finances

Business Plan Completion Check

By now you should have completed all sections of your
Business Plan - Congratulations!

Check off the list found below. If you have not completed
something, make sure to go back and double check.

• Executive Summary
• Marketing
• The Future
• The Finances

BSBOPS601 Develop and implement business plans 63

5. Implementing a Business Plan

Chapter 5
Implementing
a Business Plan

In this chapter, you will learn about the purpose of implementing

a business plan by recapping the planning process, how to
allocate and calculate resources, work break down structures
and effective communication steps to successfully implement
tasks and objectives of a business plan.

By the end of this chapter,

you will understand:
3 the purpose of the business planning
process and planning tools

3 resource allocation terms and how to

calculate true resource requirements

3 work break down structures and how to

create them

3 effective communication steps to

successfully implement tasks and
objectives of a business plan.

64 BSBOPS601 Develop and implement business plans

 5. Implementing a Business Plan

5.1 The Planning Process

Referring to your vision, mission, values, objectives and The four symbols represent the following:
goals from your business plan and action plans you have
FS: Finish to Start. A task cannot start without another
created in your business plan will guide you to refining
task being finished first.
your planning process. This will help to continually
improve and adapt to changing circumstances as you SS: Start to Start. When two or more task can begin at
create your business plan. the same time.

Planning process steps: FF: Finish to Finish. When two or more tasks need to
finish at the same time.
1. What are you trying to achieve? Make sure you are
establishing realistic goals, objectives and targets. SF: Start to Finish. When one task cannot finish until
another task begins.
2. List all activities that need to take place to achieve
your goal.
Flow Charts
3. Sequence the tasks in the order in which they should
A flow chart is a sequence chart that explains a process.
occur. Using tools such as Network Diagrams, Flow
It will include a box with the instruction inside the
Charts and Gantt Charts will assist in sequencing
box following an arrow to identify the next step. It is
and scheduling the objectives of your business plan.
designed to be easy to follow.
Network Diagrams
A network diagram allows the viewing of each element
of a project task. It’s a visual of workflow progression for
stakeholders to be able to identify how their involvement
in a project is progressing.
There are two types: Arrow Diagram Method (ADM) and
Precedence Diagram Method (PDM).
Arrow Diagram Method (ADM): Uses arrows to interlink
elements. The direction of the arrow represents the start
to finish of a task, the head being the finish.

Start è Finish
Precedence Diagram Method (PDM): Uses boxes
including symbols for an element. Each box that
represents a task will have a symbol to show to the
continuation of workflow.

BSBOPS601 Develop and implement business plans 65

5. Implementing a Business Plan

Gantt Charts
The Gantt chart provides you with a wealth of • The steps are displayed in a table format.
information related to your project’s past, present, • The work breakdown structure displays different
and future states. The Gantt chart is primarily used levels of the total project in hierarchical form as one
for schedule control and provides a real-time view of top-level task and breaks it down into smaller tasks,
whether your project is on track. level by level, until it cannot be broken down any
1. Communicate your plan and tasks to those involved further. The further a task is broken down, the more
to relevant stakeholders. We will learn more about detailed it should be.
this in 1.4 Communicating Plans on page 9. • Answer the below questions:
2. Implement your plan. » What work must be performed?
3. Continually monitor and review progress to ensure » How long will each task take?
to stay on track with your vision, mission, values and » What resources can perform the work?
objectives and refine or update any actions plans as » How much investment is required?
you go.

LEARN MORE

Work Breakdown Structures (WBS) Levels:

There are four levels to a WBS:
1. The Top Level: The ultimate objective to complete.
2. Controls Account: The main phases and
deliverables of the objective.
3. Work Packages: The task undertaken to achieve
the Controls Account.
4. Activities: The tasks needed to complete to
achieve the Work Packages. A forecast of the
cost, duration, resource requirements can be
made at the lowest level.

What is a Work Breakdown Structure?

Work Breakdown Structure For more information on Work

Breakdown Structures (WBS) and their
When implementing aspects of a business plan, it may applications, visit the link below.
be useful to utilise a Work Breakdown Structure. The The Ultimate Guide to a Work
Work Breakdown Structure is a document that takes Breakdown Structure (WBS)
larger tasks and breaks them down into smaller, more
manageable chunks. It is a visual organisational-like https://scnv.io/8D3Z
chart that displays hierarchal relationships and steps of a
task or project. “All the steps of a project are outlined in
the organisational chart of a work breakdown structure,
which makes it an essential project management tool for
planning and scheduling.”

66 BSBOPS601 Develop and implement business plans

 5. Implementing a Business Plan

5.2 Resourcing
To successfully implement your business plan, you
need to ensure the resources indicated are available
and suitable. The development and implementation of
a business plan will only be effective if the necessary
Activity 5A
resources have been identified and ways to obtain these
resources have been developed. Implement a Business Plan
True resource requirements can be assessed with
Business the following formula:
Description
Resource
Work = Duration x Resource Units
Anything used to achieve objectives, Use this formula for the five objectives you have in
Physical including materials, supplies, your business plan.
equipment, infrastructure
Objective 1:

Recruiting and hiring employees, Objective 2:

Human onboarding, performance Objective 3:
management, and training
Objective 4:
Organisational brands and Objective 5:
copyrighted material, a partnership
Intellectual
between organisations and talent
within the organisation

Financial
Financial sources, lines of credit,
budgets and funding needed to meet
Activity 5B
objectives
Implement a Business Plan
Resource Allocation Using the same five objectives, you chose for
To successfully allocate your business’s resources, you calculating true resource requirements in Learning
must first determine what is required to fulfil short- and Activity 5A, develop your own Work Breakdown
long-term objectives. Failure to successfully allocate Structure.
business resources well can disrupt organisational tasks Select your own template and practice.
being completed, causing conflicts and increasing risks
for the business.
Common types of allocating resources are:
1. Time-Limited Resource Allocation – when a resource
is allocated for a specific amount of time
2. Resource Limited Resource Allocation – when there
is an absolute limit to resources being allocated.
True resource requirements can be assessed with the
following formula:
Work = Duration x Resource Units
• Duration: The amount of time given to finish a task
• Resource Units: How much available time in total a
resource allocates to a task
• Work: The amount of time it takes to do the task.

BSBOPS601 Develop and implement business plans 67

5. Implementing a Business Plan

5.3 Communicating Plans

People need to be able to work together in order Get to know your people:
to meet the objectives and successfully implement
Getting to know the people that are working together
strategies when implementing your business plans.
in order to meet the objectives of a task helps not only
Communication, therefore, is crucial. Individuals need to
make people feel comfortable but to also identify skills.
understand their roles, targets and duties. “Workplace
“Diverse talents bring people together and make teams
communication is very important to companies because
strong, provided that they play to each other strengths.”
it allows companies to be productive and operate
The way to achieve this is to get to know your people.
effectively.”
Establish communication rules and methods:
Things to remember when communicating the
implementation of a business plan: Decide on what type of communication will be used,
such as phone, email, group text, in-person or video
Communicate clearly: People function and perform a lot
meetings. Encouraging an open, honest dialogue is also
more effectively when they are clear on what their task is
a beneficial rule to have with communication so that
and what is expected. Make sure your communication
people feel supported and comfortable to speak up.
is detailed to provide all the relevant and important
“Successful relationships depend on open and honest
information but clear in understanding.
communication, and so will your work team.” This also
reduces the potential for conflict.

68 BSBOPS601 Develop and implement business plans

 5. Implementing a Business Plan

Chapter 5

Review
Questions

Q1. What is the difference between a Flow Chart and a

Gantt Chart?

Q2. What is the difference between Time Limited

Resource Allocation and Resource Limited
Resource Allocation?

Q3. What are Work Packages?

Q4. In your own words, explain why communication is

important when implementing your business plans.

BSBOPS601 Develop and implement business plans 69

6. Monitoring a Business Plan

Chapter 6
Monitoring a
Business Plan

In this chapter, you will learn about monitoring your business

plan and identifying if you need to make changes or
adjustments. It will cover types of monitoring and areas to
monitor and what monitoring tools and statistics, you can use.

By the end of this chapter,

you will understand:
3 monitoring your business plan and
identifying if you need to make changes
of adjustments

3 types of monitoring and areas to monitor

3 monitoring tools and statistics you can

use.

70 BSBOPS601 Develop and implement business plans

 6. Monitoring a Business Plan

6.1 Monitoring Plans

Monitoring your plans helps you identify and measure 3. Have you got adequate physical, human, intellectual
milestones. It shows you how well your business plan and financial resources?
is working. Monitoring also alerts you when a business 4. Are your business plan objectives realistic?
plan is not working so that you can take steps to alter or
5. Are you monitoring the right areas?
change direction.
In Chapter 1 you learnt about the SMART Methodology
Confirmation Bias
of creating goals and objectives. You have learnt about Confirmation Bias can cause issues with the analysis
monitoring methods when planning your action plan of data when monitoring plans. Confirmation Bias is
and steps of your goals and objectives, as the SMART when you interpret new evidence as confirmation of
Methodology requires your goals and objectives to be your beliefs or theories. “Confirmation biases impact
measurable. Having goals that are measurable helps how we gather information, but they also influence
you to understand if your objectives are being met. We how we interpret and recall information.” The risk with
use the same principles in the monitoring of your plans. confirmation bias is that it can impact objectivity and
Comparing where you are now and where you want cause a more subjective view. “Focusing on information
to be in your business provides you with the ability to that affirms the individual’s beliefs and assumptions.” It
compare and measure your progress. This can be a is also a natural part of the human mind. The impact of
great way to know if the goals you have set are working. confirmation bias and monitoring your business plans
Monitoring the tracking of the numbers of profits, new and objective can result in inaccurate judgement and
customers, or even maintaining current business over a illogical interpretations when asking the above questions
duration of time can provide you with the information to when monitoring your plans.
measure your success in your goals.
KPI’s (Key Performance Indicators) are a great way to
do this. To recap, A KPI is a quantitative measurement
of results for a business goal or objective. It is based on
Activity 6A
whatever metric or target you have decided on that is
relevant to your business to achieve to work towards. Monitoring Business Plans
Questions to ask when monitoring your plans might be Identify a confirmation bias you could have and
as follows: explain the steps you would take to minimise the
impact that it could have on your business plan.
1. Are your business plan objectives being achieved?
2. Are you on schedule to meeting your business plan
objectives on time?

BSBOPS601 Develop and implement business plans 71

6. Monitoring a Business Plan

6.2 Types of Monitoring

There are three common types of monitoring in the Areas to Monitor
implementation of business plans.
Customer Satisfaction:
Area your customers happy with the product or service?
Monitoring
Description A few ways to measure this could be using surveys,
Types
reading reviews, direct feedback and purchase analysis.
Monitoring of technical systems You will be able to understand what is working and
Technical
such as software, equipment and what needs to be improved on. If there is something
Monitoring
technology that needs to be improved on, customer satisfaction
is a great way to identify key areas that need to be
Monitoring a whole process of monitored more closely. “If your customers aren’t
activities, workflow and software
satisfied after buying from your business, they probably
Process and technology. It differs from
technical monitoring as it looks at won’t do it again.”
Monitoring
the business monitoring process as
a whole

Monitoring how business plan

Organisational implementation is organised,
Monitoring developed executed and
communicated

Example
Types of Monitoring and
Confirmation Bias
Imagine you are the owner of a
new business.
An example of this could be after conducting
research about a product or service, attaining
the information and the information not matching
with the product or service outcome you desired
Financial Success:
or assumed would be.
How much money is your business making? Looking at
From that, you ignore the information as it does how much money is coming in and out of your business
not match with your beliefs or theories about the gives you a clear idea of how successful your business
product or service. If you had a team working for plan is working. Monitoring financial statements
you and they are aware that you are strong on such as balances sheets, cash flow statements and
your confirmation bias, they will work towards income statements will assist. “Measuring business
matching your expectation. This can affect the performance means checking out the money flow of
outcome of success in your business plans. your business. If you want to see how profitable your
business is, check out the financial statements.”

72 BSBOPS601 Develop and implement business plans

 6. Monitoring a Business Plan

Note
For a refresher on cash flow
statements and balances sheets,
revisit Part One of the Unit
BSBOPS601 - Develop and
Implement Business Plans, Chapter 5: Business
Plan Section 5: The Finances on page 32.

LEARN MORE

Income statements
Income statements are used to track your expenses
and profits and are a great way to see which areas
of your business are over or under budget.
For more information on income statements visit the
Return on Sales
ATO - Working as a Contractor
Working as a contractor This calculation measures how efficiently a business
generates profits from revenue.
https://scnv.io/3V2N 1. Return on Sales = Operating Profit/Net Sales
2. Operating Profit = Revenue – operating expenses –
If you see positives in your financial success, that cost of goods sold
doesn’t always automatically mean that all is well.
High sales are great, but researching sales data will
also help to assist in trends or future predictions in Note
buying behaviour. “Sales data needs to be correlated Revenue
to advertising campaigns, prices changes, seasonal Revenue is essentially the sales
forces, competitive actions and other cost of sales.” of good and service made in a
Some calculations you can use to assist with are Asset business over a period. (“What
Is Revenue? Definition, Types of Revenue and
Turnover Ratio and Return on Sales. These will help you
Examples”, 2020).
look at sales data in line with competitors.
Asset Turnover Ratio
This calculation measures the efficiency that a business
uses its assets to produce sales.
1. Asset Turnover Ratio = Net Sales/Average Total Asset
2. Net sales = Amount of revenue made after taking out
sales returns, discounts and allowances
3. Average Total Assets: The average of all assets at the
end of the current financial year

BSBOPS601 Develop and implement business plans 73

6. Monitoring a Business Plan

Operational:
How productive is your business? Monitoring current
operations will help in identifying productivity levels.
Activity 6B
“Productivity ratios can be applied to almost any aspect
of your business.” Monitoring Business Plans
Using industry statistics can be helpful for monitoring to Using the Asset Turnover Ratio = Net Sales/Average
compare to how other competitors are performing and Total Asset calculation, answer what the Asset
Turnover Ratio will be for the following.
how productive they are.
1.
Net Sales: $163,000.62
LEARN MORE Average Total Asset: $400,000.00
=
Industry Statistics
A helpful source to checking different industry 2.
statistics to help with operational comparisons
of your competitors and industry, visit the ABS Net Sales: $299,090.82
(Australian Bureau of Statistics) - Industry Overview. Average Total Asset: $199,532.90

Industry Overview =

https://scnv.io/dVxj 3.
Net Sales: $176,530.00
Average Total Asset: $163,000.62
=

74 BSBOPS601 Develop and implement business plans

 6. Monitoring a Business Plan

6.3 Monitoring Tools

Monitoring tools and statistics help with monitoring performance measurements that address quality, quantity, cost
and effectiveness. Common monitoring tools and statistics are:

Monitoring Tools
Description
& Statistics

The Gantt Chart provides you with a wealth of information related to the past, present, and future
Gantt Charts states of your project. The Gantt Chart is primarily used for schedule control and provides a real-
time view of whether your project is on track.

A Network Diagram allows the viewing of each element of a project task. It’s a visual of
Network Diagrams workflow progression for stakeholders to be able to identify how their involvement in a project is
progressing.

A PERT Chat stands for Program, Evaluation and Review Technique. It is a statistical tool used to
PERT Charts analyse and track tasks by mapping them as a timeline. It is like a Gantt Chart; however, the main
difference is how it is visually displayed.

Financial Tools assists with the monitoring of accounting, tax, budgeting and expense
Financial Tools
management, usually in the forms of software.

Bar Charts or a Bar Graph is a statistical tool used to compare different things over a period of
Bar Charts
time using square bars measuring different heights to show differences in result.

A Histogram is a statistical tool that is similar to a Bar Chart; however, the difference is that a
Histograms histogram groups numbers into ranges. The difference heights show how many results are part of
each bar.

A Pareto Chart is a graph that has a bar graph and a line graph. The visual creates values that
Pareto Charts
seen in descending order by the bars at the total of the sample is seen in the curved line.

A Run Chart is a horizontal line graph that will increase or decrease in height depending on the
Run Charts
result.

Process Capability A Process Capability Chart is a diagram that looks at a process’s capability by comparing the
Chart performance of a process against its specifications.

BSBOPS601 Develop and implement business plans 75

6. Monitoring a Business Plan

LEARN MORE
Activity 6C
Financial Tools
Some examples of financial tools could be things Monitoring Business Plans
such as: Out of the list above, identify which Monitoring
1. Accounting software Tools and Statistics would be most effective for your
2. Expense tracking business and why.
3. Budgeting tools
4. Payroll management
5. Inventory tracking Testing Tools
6. Tax preparation It’s all very well to come up with good metrics to
Different financial tools will be used depending measure your progress; however, it is necessary to test
on your business. Doing some research is vital to
that your measurements (or tools) are going to provide
having the right financial tools for your business.
Speaking to a financial advisor, accountant of you with an accurate representation of the data.
financial expert can be helpful. Four qualities of good metrics are as follows:

Some information to help start 1. Comparative: It needs to be comparable to

your research can be found at something (e.g. time or results of competitors).
https://scnv.io/FIO4 2. Understood: The metrics should not be confusing to
those using them.
3. Ratio-based: An example of this could be the
Think distance travelled is not actionable unless you work
Informal Monitoring on the distance travelled per hour.
4. Behaviour-changing: What will you change once
Informal monitoring can also be
you have received the data? Metrics should provide
an option. Some examples can be
the company with information about what needs
being observant, asking people or
adjustment.
listening to comments or feedback. However, do
keep in mind confirmation bias when interpreting A good metric produces information about actions
this monitoring. that happen concerning another value. Test your
performance measurements by ensuring they meet the
four criteria areas above when developing your metrics.

Example
Testing Tools
A business may have a certain
number of followers or likes on
their Facebook page. However, that data is
relatively useless unless you can measure how
many of these followers or people who liked your
page have actually purchased something or have
some type of relationship with the business.

76 BSBOPS601 Develop and implement business plans

 6. Monitoring a Business Plan

Chapter 6

Review
Questions
Q1. What is the difference between a PERT Chart and a
Gantt Chart?

Q2. What type of monitoring monitors activities,

workflow and software and technology as a whole?

Q3. In your own words, explain the importance of

Customer Satisfaction monitoring.

Q4. Do a bit of research and name three different types

of Accounting Software and Expense Tracking
Software.

Accounting Software:
1.
2.
3.

Expense Tracking Software:

1.
2.
3.

BSBOPS601 Develop and implement business plans 77

7. Business Plan Reporting

Chapter 7
Business Plan
Reporting

In this chapter, you will learn about reporting on the

implementation of your business plan and Monitoring and
Evaluation reports. It will cover how to use those reports to
manage performance and why plans can fail.

By the end of this chapter,

you will understand:
3 reporting on the implementation of your
business

3 monitoring and evaluation reports

3 managing performance and why plans

can fail.

78 BSBOPS601 Develop and implement business plans

 7. Business Plan Reporting

7.1 Reporting
Monitoring and evaluation reports can be done during
and at the end of certain stages during a business plan
implementation. It is an ongoing process to ensure LEARN MORE
continuous improvement. Although monitoring is
ongoing, evaluations may be set to take place at crucial Writing Monitoring and Evaluation Reports
time periods of implementation.
For guidance of elements needs for writing
Monitoring and Evaluation Reports monitoring and evaluation reports read
Chapter 8 of https://scnv.io/755N
Reports are crucial in keeping on track as problems
can be identified and dealt with at the onset. Reports
about performance is an informative tool for monitoring
and evaluation. “Both can provide critical, continuous
and real-time feedback on the progress of a given
project, program or policy.” This will determine how your
business plan is currently working, and the findings can
help to address any areas that need change and/or to
celebrate success. The intent of a report is ultimately
delivering the message to the correct audience. “The
central purpose, however, is to “deliver the message”,
inform the appropriate audiences about the findings and
conclusions resulting from the collection, analysis, and
interpretation of evaluation information.”
They can also help to improve or highlight:
• accountability
• what is working
• areas needing more attention and focus
• learning and development
• documentation
• stakeholder engagement.

BSBOPS601 Develop and implement business plans 79

7. Business Plan Reporting

7.2 Managing
Underperformance
Sometimes employees fail to meet expected
performance standards, which negatively affects or
adversely affects the business. There are many different
reasons this could occur from personal issues, lack
of experience or knowledge, unclear expectations or
guidance or low morale, as a few examples. When this
happens, it is important to create solutions rather than
focussing on the problems or the lack of performance.
“A successful performance management process is one
that supports the workplace culture and is accepted and
valued by employees.”

Causes of Underperformance
• Unclear expectations
How Should Your Report be Presented? • Unclear feedback about performance
Monitoring and evaluation reports should be presented • Poor job training
to the target audience in a simple to read way with • Unsuitable work environment
the most important information. If different audiences • Lack of communication
require different types or level of information, it will need
• Unsuitable management
to be presented and formatted differently considering
the main points and preferences. “One can anticipate • Personal issues
that there may be multiple uses of the performance • Work related stress.
findings. Think of this as concentric circle, that is, the Signs of Underperformance:
target audience forms the inner circle, but there may be
• Poor work quality
uses for the findings beyond the inner circle including
those less directly concerned or affected.” • Lack of morale and motivation
• Unhappy, poor behaviour
Some common things to include in monitoring and
evaluation reports are: • Not meeting work commitments and requirements.

1. Use of graphics: This helps with readably. Charts or

graphs may depict certain progress in a more user-
friendly way than only using text.
2. Overview of performance measurements and
Progress: Letting the business know performance
measurements and what needs to be actioned.
3. Strengths and Weaknesses evaluation: This helps
focus on the areas where it may fall short and spend
less focus on areas where the business is already
performing strongly.
4. Summary of Recommendations: Include
suggestions for improvement as the process of
continual improvement.

80 BSBOPS601 Develop and implement business plans

 7. Business Plan Reporting

Managing Performance Steps

1. Identifying the Issue: Understand the issues of
Note
performance or underperformance. It is important to
correctly identify the issue. Create a Solution:
Common causes could be: Make sure a solution is clear
and easy to follow. Use simple
• Personal issues
language to avoid alienating both managers and
• Trouble understanding what is required
employees.
• Job content and design
• Lacks required skills and capabilities
6. Monitoring Performance: After an agreed timeframe
• Management style
of monitoring an individual’s performance, provide
• Workplace issues. feedback and encouragement.
2. Assess the Issue: Answer the following questions will
help identify the impact of the issue.
• How serious is it? LEARN MORE
• How long has it been occurring?
• What is the gap between the work expectation FairWork Australia
and what is currently being done? For more information on Managing
3. Speak to the individual: This should be handled by Underperformance, visit FairWork - Managing
Underperformance.
having a confidential, private and calm discussion and
focusing on the topic and not the person. Open and Managing Performance
honest communication is necessary for this instance.
Checking the knowledge of the individual is helpful to https://scnv.io/KXNV
confirm understanding of the task or job role.
Addressing the following will keep you on track:
• What is the issue?
• Why is it an issue, and the impact of it on
performance?
Both parties should be listening to each other, and
both get an opportunity to have their point of view
heard and understood.
4. Create a Solution: Once you have identified and
assessed the cause, you need to create a solution.
This should address the improvement that needs
to be implemented immediately, and this should
be developed in consultation with the stakeholders
involved.
Steps to take can include:
1. Ask open-ended questions.
2. Coach and mentoring.
3. Clarify roles and responsivities.
4. Review system or processes involved.
5. Include a timeframe review of improvement.

BSBOPS601 Develop and implement business plans 81

7. Business Plan Reporting

Managing Performance Checklist 7.3 Why Plans Fail

• Confirm understanding of task or job role.
Why do plans sometimes fail? What actions can you take
• Identify the issue.
to safeguard the success of your plans? There are many
• Have a confidential, private and calm discussion. reasons that the implementation of a business plan will
• Focus on the topic and not the person. fail. We will explore some common reasons below.
• Create a solution. This should address the
improvement that needs to be implemented Unattainable Objectives and Goals
immediately, and this should be developed in Aspiring for success is great to have, providing that
consultation with the stakeholders involved. the goal is achievable and attainable. Be realistic when
• Monitoring Performance: After an agreed timeframe planning your goals. Making sure you have the right
of monitoring an individual’s performance, provide resources, time, money, and opportunity constantly
feedback and encouragement. needs to be considered. “While it is important to have
lofty goals, the path to achieving these goals needs to be
realistic and attainable.”

Activity 7A Not Enough Research

Research is imperative through every step of your
Business Plan Reporting business plan. In Part One of the Unit BSBOPS601
It’s time to have a rehearsal of a performance - Develop and Implement Business Plans, Section 6
management conversation. Please write a script of is Supporting Documentation. To recap, some of the
a conversation that you would have with someone supporting documentation is your research to support
that needs to be performance managed, using the your business’s plans goals and objectives.
information you have learnt in this chapter.
1. Resumes: Management and employees.
Please set it out in this type of format: 2. Inventory List: An itemised list of the good and
Manager: “Hi “name”, I would like to have a materials needed for your product or service.
conversation with you, have you got a moment? 3. Market Research: Collecting information about the
Employee: “Yes of course.” market, including data from surveys, trend analysis,
At the end of the conversation, provide a conclusion marketing reports and studies that support the
of the outcome of the performance management information in your Market section.
script. Explain your reasons why you have written 4. Financial Documents: Financial statements, Balance
the script the way you have. Sheet Forecast, Finance sources and any financial
documents to support the information in your Finance
section.
If you do not make sure this research is insightful,
accurate and enough, you are likely to come across
issues when implementing your business plan’s goals and
objectives as you will not be prepared for outcomes you
have not researched. “If you don’t fully understand the
competition and current situation of your marketplace.”

82 BSBOPS601 Develop and implement business plans

 7. Business Plan Reporting

Not Budgeting Properly

If you have not properly calculated your finances and what to do to ensure that a problem or difficulty you
budgets, you can end up running out of money or cannot eliminate or minimise has minimal negative
increasing your debt a lot higher than you may have repercussions. “This approach diverts some of the
expected. This can have a domino effect when it comes energy invested in long-term planning to instead focus
to trying to keep your head above water. In Part One on continual testing and adjusting.”
of the Unit BSBOPS601 – Develop and Implement
Contingency Plan
Business Plans, Section 5 is The Finances. Ensure
A Contingency Plan is essential to managing risk
you conduct accurate calculations such as Start-Up
and ensuring project deliverables are achieved. A
Costs, Balance Sheet Forecasts, Expected Cash
Contingency Plan is a ‘Plan B’. If things do not go as
Flow Statements, Income Projections, and Breakeven
expected in a project and risk becomes identifiable, the
Analysis will help make sure your budget stays on track.
Contingency Plan is in place to mitigate any potential
Making sure you are managing your finance sources,
negative impact on the business.
for example, repayments on a business loan, must be
considered into the total budget. “Research needs to Corrective Plan
be conducted ahead of time on the approximate cost of A Corrective Plan tells you how to correct a problem
starting a business or a project and keeping it running that may occur. It usually does not change the plan
through the first year and growing pains.” dramatically, but it does fix a problem that may arise.
“Corrective actions can be thought of as improvements
How to Prevent Plans Failing to an organisation to eliminate undesirable effects.”
To safeguard the success of plans, you can incorporate
Interim Plan
into their planning one or more of the following types of
An Interim Plan helps to deal with unwanted events until
plans:
you can find their cause and implement a corrective
Adaptive Plan plan. It is essentially a band-aid over a problem as
An Adaptive Plan helps when you have set goals there may be an issue of time or resources to have a
and objectives unrealistically when planning or an Corrective Plan in place.
important variable has changed in the plan. It tells you

BSBOPS601 Develop and implement business plans 83

7. Business Plan Reporting

Chapter 7

Review
Questions
Q1. In your own words, explain the importance of
Monitoring and Evaluation reports.

Q2. In your own words, explain the importance of

Performance Management and the implications if it
is not managed well.

Q3. Provide an example of a problem that may occur in

your business and create a corrective plan you
would use to correct the problem.

Q4. What is the difference between an Interim Plan and

an Adaptive Plan?

84 BSBOPS601 Develop and implement business plans

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