The information are classified into 4 types;
1.Finance( whether you had manage your finance properly, whether do you need a source of finance which is good to have it earlier on where people still trust you where you can use the money to prepare for the crisis met later, did you manage your cash flow well,budgeting to help you control resources,motivate to hit the budget goal level,provides visibility for the company performance, is your book-keeping keep up to records,classifying the cost, net and gross profits and contribution,intepreting profit and loss accounts and balance sheet)
2.Organization
3.Sales&Marketing
4.Operations
My Documentation With Harrison
Course/Class: Name
:
1. Finance 20%
(Describe decisions made related to any 2 or
more items below)
Item
|
Description
|
Evidence
What did you do?
Why did you do it?
When did you do it?
|
Marks
(max 10 marks)
|
Accounts
& Expenditure
|
Interpret
profit and loss accounts and balance sheets
|
||
Bookkeeping
|
Keep
up-to-date business records
|
On February
2010, We hired a bookkeeper.
|
|
Accounting
and Finance
|
Classify
costs, net and gross profit and contribution
|
When we
run the month of June 2010, our profit and loss become positive. (Initially,
it was -7000 for the month, May).
|
|
Budgeting
|
Understand
the purpose of budgets and use them for business and campaign plans and forecasting
|
On February
2010, we edit the profit forecast for overdraft.
|
|
Cash Flow
Management
|
Understand
the importance of cash and distinguish between cash and profit
|
Do keep our cash flow positive, we adjust
the credit control. (1month -> call, 2month-> letter)
Between June to September, we have a rough start
on our profit and loss. However, on August, our profit and loss increased.
On October 2010, our profit and loss become a
negative amount of $9000.
On December 2010, we have a profit of $3000 but
our bank balance is ($16,000).
On February 2011, our profit and loss is still
positive ($8000) and we have a positive balance on our bank.
On March 2011, our profit and loss is still positive
($10,535) but our bank balance is negative at $6000.
On April 2011, our profit and loss and bank
balance is negative.
On May 2011, our profit and loss become positive
again.
On July 2011, finally, our bank balance becomes
positive. However, our profit and loss is at a negative amount of $3000
On August 2011, we decided to sell shares at
$30,000. However, we could not find any investors because it took up 55% of
our company.
On Dec 11, our profit and lose become positive at
$770. However, our bank balance is negative at 7,000.
|
|
Source
of finance
|
Access
family loans, bank loans, overdraft facilities, equity support and grants
|
On February 2010, We borrowed $40,000
dollar (overdraft). Before that, we also edit the profit forecast.
The next month, we received the $40,000
On
April 2010, we borrowed $50k dollar (overdraft).
On May
2011, we borrowed $12,000 from friends and family because our bank balance is
negative and our suppliers are chasing us for money.
On Nov
2011, we borrowed $13,000 from bank and 3000 from friends and family.
On
December 2011, we borrowed $50,000 from bank loan to prevent us from going
bankrupt.
|
|
Total
(max. 20 marks)
Comments:
|
2.
Organization 20%
(Describe decisions made related to any 2 or
more items below every 3 months)
Items
|
Description
|
Evidence
What did you do?
Why did you do it?
When did you do it?
|
Marks
(max 10 marks)
|
External
Influences
|
Understand
the market and competition, changing market and supplier conditions as well
as managing capacity and demand
|
||
Identifying
opportunities
|
Undertake
small budget research and marketing; create a profitable product
|
||
Legal
Issues
|
Review
the role and impact of some laws regarding health and safety, employment,
company creation and contracts.
|
||
Interest
rates
|
Appreciate
interest variations, their effects on demand and related finance decisions
|
||
People
|
Understand
culture of a new start-up & small business. Make decisions and deal with
consequences that all business owners have to face
|
||
Practical
problems
|
Appreciate
issues related to: finance, location, building a customer base, cash flow,
business planning and personal stresses & strains of self employment
|
||
Recruitment
and training
|
Recruit
staff and experience different methods of selection and choice of approaches
to training
|
On feb
2010, we trained production on ourselves at the training center course.
Instead of picking the “On the Job”, we pick training center Couse because it
is fast and it only requires 8 hours.
On
march 2010, we trained ourselves on production(“On The Job”)
|
|
Total
(max. 20 marks)
Comments:
Insufficient documenation to show application
|
Sales & Marketing 20%
(Describe decisions made related to any 2 or
more items below every 3 months)
Items
|
Description
|
Evidence
What did you do?
Why did yosupplu do it?
When did you do it?
|
Marks
(max 10 marks)
|
Adding
value
|
Use
unique selling points and identify the best mix of design, price,
promotion and service
|
We
remake the product to fit the cooperation’s standard.
Quality: 70% Performance: 80%
Features:
80%
Style: 90%
We
changed the price to $600
On
August 2010, we noticed that we have not changed the selling point. Hence, we
changed the selling point to …
1. Extreme Style 2. Good Performance 3. Good Features
On
October 2010, we changed our price to 650 and give 10% discount.
|
|
Markets
|
Complete research, market analysis,
segmentation
analysis and assess market size/share
|
On May
2010, we made a customer research and we found out that our performance is
poor. Hence, we need to adjust the performance to fit for our customer’s
need.
On July
2010, we also made a customer report. We found out that our price is
excellent. Every section (performance, quality, features and style) is good
and okay.
|
|
Marketing
Strategy/Planning
|
Understand
links between market research, marketing strategies and the desired
goals.
|
||
Niche
and Mass Marketing
|
Find
out about the benefits and drawbacks of niche marketing and compete in
large markets through product
differentiation
|
||
Place
|
Use distribution
channels and choose premises to support the sales of business products
|
We made
a contract with distributors. (RAD)
On
April 2010, we accept the distributors’ contract (RAB). We also made a
contract with 2 distributors.
On May
2010, we made an advertisement on the local newspaper. We also made 500
direct marketing leads.
On June
2010, we accepted the 2 distributors’ contract.
On
October 2010, we made a contract with the last distributors. Every percentage
counts.
On
November 2010, we accept the last distributors. We also made 3hours of
personal selling.
On
March 2011, we publish my website to promote our website.
|
|
Pricing
|
Use
different strategies for attracting business as well as linking pricing to
financial management
|
||
Promotion
|
Plan
and execute campaigns including: Advertising, Direct Marketing, PR ,
Networking, Website, Events and Exhibitions
|
On
March 2010, we create a basic website by ourselves.
We also made an advertisement on the newspaper (Large) We missed the exhibition which was organized on February.
The
next month, we do a press release. We also made a 300 leads direct marketing
(0.15cents) . Lastly, we also made 20% discount on our products for the
following month.
On June
2010, we made an large adverts on TV radio and local paper.
On
July, our bank balance is negative.
On
August 2010, we upgrade our website to premium.
On
September 2010, we made 10% discount on our products and made 500 leads on
direct marketing (0.25cents each)
On
October 2010, we made an advertisement on the local paper. We also made 500 leads on direct marketing.
On
November 2010, we never do marketing because our bank balance is negative.
On December
2010, we never do marketing promotion.
On
January 2011, we gave a 5% discount.
On
April 2011, we gave a 20% discount because our profit and loss, and bank
balance is negative.
On May
2011, we also gave a 20% discount.
|
|
Sales
|
Choose
strategies, budgets and tactical activities to generate revenue
|
||
Total
(max. 20 marks)
Comments:
|
Operations 20%
(Describe decisions made related to any 2 or
more items below every 3 months)
Items
|
Description
|
Evidence
What did you do?
Why did you do it?
When did you do it?
|
Marks
(max 10 marks)
|
Starting
a Small Firm
|
Appreciate
the differing needs, problems and opportunities of small businesses
|
||
Operations
Management
|
Operate
stock control, buffer stock, re-ordering and manage lead times and stock
levels
|
||
Quality
control, improvement & assurance
|
Use
different approaches to ensure the product is built right first-time
|
||
Product
|
Design
and Develop a product in line with customer needs
|
||
Production
|
Build
products and/or manage contractors to produce stock for you
|
On
January and February 2011, we adjust our production tab to meet our orders.
|
|
Suppliers
|
Choose
from and manage different supplier accounts. Ensure supplier payment
|
On
October 2011, we changed our supplier to Sourceline. Initially, it was
ProSupply.
On
December 2011, we changed back our suppliers to Sourceline.
|
|
Time & Efficiency
|
Manage
personal and staff time to ensure work done. Identify inefficiencies and work
to improve business performance
|
||
Total
(max. 20 marks)
Comments:
|
Comment on your company
performance in terms of revenue and net profit in the last 12 - 24 months and
lesson learnt (Approx 100 words) 20%
Between February 2010 to June 2010, it was very rough. Our profit
and loss is either positive at about an average of 5,000 or a negative amount
of an average of $4000. At August
2010, we found out that we did not change the selling point. It is a grave
mistake. However, after changing, we also have a negative amount in our
Profit and loss. We solve it by reducing the price by giving our customers a
discount. On January and February 2011, our profit and loss is at a high
amount of 8000 and 10000 respectively . From May 2011 to Aug 2011, our profit
and loss has been negative for 3 months. Overall, we felt that we did a bad
job on handling the company because we missed out crucial points like selling
points. If we set our selling point correctly, the first few months will be
okay or great because our marketing strategy is quite good in that months. In
other words, we loss a big advantage to earn profit for the company.
Additionally, the last few months of the Sim Venture, we also did a bad job
in handling the sales and orders. Our profit and loss has been negative for
the past last months. Another reason why our profit and loss is negative
because we did not even do marketing promotion and strategies due to limited
budget (negative amount of bank). On the bright side, we believe that we done
a great job on marketing for the first few years. Many of our customers hear
it from advertisement, direct marketing, networking and even word of mouth!
|
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