# Sustainable Business/The business plan

ABOUT THIS BOOK | THE BUSINESS PLAN | BOOKLETS | PRINT THIS BOOK
This is a template for a sustainable business plan. It can be used for planning a new business that is yet to start, or an existing business in need of a business plan. Alternatively, it offers some quick reference guidance in some aspects of the business. Copy it into your own word processor and spread sheet calculator. Use the linked information as a guide for each section. You will find information in the Booklets relating to each section of the business plan.

## What is the purpose of the business plan?

Write down why you are writing this business plan. It is important that you have a clear reason. Ensure that you refer to this reason as you complete your plan

# Business profile

* The business profile is designed to be an overview of your business and the business plan. It should provide readers with a quick overview of your business, including your values and objectives, so they can get an immediate feel for what you’re doing and where you’re going. Ideally it should be no more than five pages. Comment only on sections relevant to your business.

## Useful booklets

* The business profile
An investment in programs and projects which support greater food self-sufficiency will result in economic, social and environmental benefits to the State of Hawaii.
Hawaii is self-sufficient in some vegetable and fruit crops but has become less self-sufficient in eggs, milk, livestock, hogs and pigs. In the 1970s, Hawaii was self-sufficient in eggs and milk with 240 eggs farms and 120 milk operations. Today there are about 100 egg farms and only two dairies. Livestock and hog and pig production have also declined since the 1970s. The Strategy has three strategic objectives: -Increase Demand for and Access to Locally Grown Foods -Increase Production of Locally Grown Foods -Provide Policy and Organizational Support to Meet Food Self-Sufficiency Needs Recommended actions include:
Demand Expand the “Buy Local/It Matters” marketing campaign as to promote the benefits of buying local foods. Expand and improve branding and labeling programs and provide consumer education programs to help consumers identify local products at the time of purchase. Encourage public institutions to purchase locally grown foods. Establish a pilot program in the charter schools. To address food safety issues, increase the farm food safety coaching program and farm food safety certifiers. ii
Production To increase production of locally grown foods, improve agricultural infrastructure including agricultural parks, irrigation systems and distribution systems/facilities. Support the Agricultural Park Program which provides public lands at reasonable cost and long-term tenure to farmers and complete the transfer of agricultural lands from the Department of Land and Natural Resources (DLNR) to the Department of Agriculture (DOA). Support Capital Improvement Project (CIP) funding to repair and maintain State irrigation systems since these systems provide water at low cost to farmers. Encourage a variety of distribution systems to move goods to the market place. Nationally, direct consumer sales, farmers’ markets, community-supported agriculture organizations and farm-to-school programs have all increased. Support multi-functional food hub facilities or food incubator facilities to handle aggregation, processing, treatment and distribution. To build the agricultural workforce, continue the “Green Jobs Initiative” which provides workforce development services for the agricultural, energy, natural resources and related industries.
* What is the purpose of your business?
* Briefly outline the history (if any) of your business
* Objectives (where do you want to be in five years?)

## Useful booklets

* Your reasons for starting a business

## Products/services

* What key products or services are you going to offer?
* How will you ensure they are delivered in a sustainable manner? Consider how they will be environmentally responsible and contribute positively to the local and wider community. See Examples of sustainable business in the Sustainable Business Practice booklet.
* List the major requirements you’ll have to comply with, or apply for
* Where will the business be located?
* Indicate key people or organisations prepared to help you

### Useful booklets

* Sustainable business practice (Section: Case studies - Return to sender eco-coffins)

## The market

* How big is your market? Outline the potential demand
* Describe the major targets your business will be aiming for
* What major trends will impact on your business? See sustainable trends in the Sustainable business practice booklet

### Useful booklets

* Is there a market?
* Sustainable business practice (Section: The market - Sustainable trends)

## Achievements so far

* List your achievements to date. If you have not started your business then list what you’ve done to prepare yourself

### Useful booklets

* The business profile (Section: Relevant business achievements)

## Competition

* List the major competition
* Are any of your competition competing on sustainability? For instance, for the café owner, are any of the other cafés offering organic food, or offering end of day food to the homeless shelter etc?
* Mention any other topics not covered above that are likely to have an impact on your business:

### Useful booklets

* Competitor analysis

## Your competitive advantages

* What are your key competitive advantages?
* Could sustainability be a competitive advantage for your business?
* List as many reasons as you can why you are better than your competition:

### Useful booklets

* Competitor analysis (Section: What is your competitive advantage?)

## Stakeholder engagement

* Outline how you intend to communicate with your stakeholders (people or organisations that have the ability to influence your business or who are impacted on by your business, eg customers, neighbours, suppliers) and what type of information you will be sharing with them. See also Stakeholder engagement in the Sustainable business practice booklet
* Collect information from your customers

### Useful booklets

* Sustainable business practice
* Marketing

## Strengths, weaknesses, opportunities and threats

* What are the organisations strengths and/or opportunities? Include in your answer, sustainability strengths and opportunities (for instance ability to use environmentally sound materials, ability to create jobs for locals, involvement in community activity, employment of long term unemployed, product safety, employee share ownership scheme)
* What are the organisations weaknesses and threats? Include in your answer, sustainability weaknesses and threats (for instance, difficulty to source environmental materials, difficulties in accessing skilled labour to develop environmental technology)

### Useful booklets

* Is there a market? Section: Identify any opportunities and threats

## Sustainable Business Practice

This business plan includes prompts to help you consider how to build a sustainable (in the sense of environmentally and socially responsible) as well as a long-life business.
In addition to the prompts throughout the business plan, complete the questions below. Use the operational sustainability principles (ie Good employer, environmental responsibility, community contribution and fairness, and influencing others) See Operational principles within the Sustainable business practice booklet for a more detailed description of the principle.
* What are the main social and environmental negative impacts your business has? To help you assess this, see sustainability impact in the Sustainable Business Practice booklet
* Where are the greatest opportunities for your business to contribute environmentally and socially?
* What are your sustainability goals?
* What can be done to minimise the negative impacts, maximise the opportunities and achieve your sustainability goals? Often there are easy things that can be done that have a significant impact, such as changing a supplier to one who sources environmentally and socially responsible materials
* How are you integrating sustainability into the organisation? for more about this see Integrating sustainability into your organisation
* How are you being innovative and considering the long term implications (on future generations) of your business? See Strategic principles section of the Sustainable business practice booklet
* How are you being transparent about your actions with your stakeholders? See Strategic principles section of the Sustainable business practice booklet for more information about this.
For those businesses who are ready to go a step further with sustainable business practice, read the Applying strong sustainability to business practice.

### Useful booklets

* Sustainable business practice

## Organisational Relationships

* Who are the people/organisations that have the ability to influence your business? (eg neighbours, media, customers, environmental advocates, employees)
* What is most important to them about your business?
* Who are the people/organisations that your business has the ability to influence? (eg suppliers, customers, employees) See also Sustainable business practice: How your business influences
* What is most important to them about your business?
* How does your business make it easy for its customers to make sustainable choices? See also Sustainable business practice: Make sustainable choices easy
* How do you contribute make your local community a better place to live and do business?
* Are there any opportunities to make your wider community a better place to live and do business? See also Sustainable business practice: The wider community
* How do you know if your organisation is operating fairly? Consider the impact both within the supply chain (eg child labour used in the manufacturers business) and within the business directly (such as fairness of remuneration rates)
* How do you ensure that the business does not put any stakeholders at risk when dealing with uncertainty? See also Sustainable business practice: toxic materials

### Useful booklets

* Sustainable business practice (Section: Organisational relationships)

# Marketing
## Your best customers

Who are your best customers?

### Useful booklets

* Is there a market? (Section: Profile your ‘ideal’ customer)

## Market analysis

* How is your customer base changing? For example, see Sustainable Trends.
* What are your competitors currently doing?
* From the above information, what in your business do you think you should change strategically?
    Note: Fill out this section for each of the targets you have selected. If you have five targets, then you’ll be repeating this worksheet five times.
       1. Select one target for the next 12 months. Describe the target in as much detail as possible
       2. Are you going to change any of the following for the selected target? If you are, then state what you intend to do:
      * Price?
      * Product or service?
      * How will you distribute?
       3. List the promotional activities you’ll use to attract the target described
       4. Estimate the total cost of the ideas generated in Point 3 above. Is this amount of money feasible? Can you still make a profit?

### Useful booklet

* Marketing (Section: Market analysis)

## Tactical marketing plan timeline

Tactical marketing plan timeline :
| List all your promotional ideas | Place an an X in the month when you intend to run the specific promotion | Place an an X in the month when you intend to run the specific promotion | Place an an X in the month when you intend to run the specific promotion | Place an an X in the month when you intend to run the specific promotion | Place an an X in the month when you intend to run the specific promotion | Place an an X in the month when you intend to run the specific promotion | Place an an X in the month when you intend to run the specific promotion | Place an an X in the month when you intend to run the specific promotion | Place an an X in the month when you intend to run the specific promotion | Place an an X in the month when you intend to run the specific promotion | Place an an X in the month when you intend to run the specific promotion | Place an an X in the month when you intend to run the specific promotion |
| | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
| 1 | | | | | | | | | | | | |
| 2 | | | | | | | | | | | | |
| 3 | | | | | | | | | | | | |
| 4 | | | | | | | | | | | | |
| 5 | | | | | | | | | | | | |

### Useful booklets

* Marketing (Section: How to complete a tactical plan)

# Finance

The financial part of your business plan is where you pull together all of the various elements of your business and express them in a common denominator: dollars. It is the part of the exercise where you see whether all your efforts and plans will result in you making a profit or not.
This is also an opportunity to consider what impact your sustainability commitments have on your financial results. You may consider there will be no cash outlay until the business is paying you a living wage, or you may consider from day one, your business will make financial donations to the local community. You may also join the local Sustainable Business Network (link to www.sustainable.org) or gain some type of environmental certification. Be sure to consider these costs in your financial projections.
See the Plumber's commitment in the Sustainable business practice booklet.

## 1 Year Profit and Loss Forecast

One-year profit and loss forecast GST exclusive :
| | Pessimistic | Pessimistic | Realistic | Realistic | Optimistic | Optimistic |
| | $_______ | % Sales | $_______ | % Sales | $_______ | % Sales |
| SALES REVENUE |||||||
| Cash sale | | | | | |
| Credit sales | | | | | | |
| Other revenue | | | | | | |
| (A) Total revenue | | | | | | |
| LESS Direct cost of sales |||||||
| Stock/raw materials | | | | | | |
| Direct wages | | | | | | |
| Commissions paid | | | | | | |
| Other direct costs | | | | | | |
| (B) Total direct cost of sales | | | | | | |
| (C) GROSS PROFIT (A-B) | | | | | | |
| LESS Overhead expenses |||||||
| Selling expenses | | | | | | |
| Promotions | | | | | | |
| Freight | | | | | | |
| Royalties | | | | | | |
| Commissions | | | | | | |
| Other selling expenses | | | | | | |
| (D) Total selling expenses | | | | | | |
| Administration expenses |||||||
| Depreciation | | | | | | |
| Insurance | | | | | | |
| Lease costs | | | | | | |
| Power | | | | | | |
| Rent/Rates | | | | | | |
| Repairs and maintenance | | | | | | |
| Salaries | | | | | | |
| Stationery | | | | | | |
| Sundries | | | | | | |
| Telephone | | | | | | |
| Travel | | | | | | |
| Vehicle expenses | | | | | | |
| Sustainability expenses | | | | | | |
| Other admin expenses | | | | | | |
| E) Total admin expenses | | | | | | |
| Financial expenses |||||||
| Bank charges | | | | | | |
| Interest | | | | | | |
| (F) Total financial expenses | | | | | | |
| (G) Total expenses (D+E+F) | | | | | | |
| NET PROFIT before Tax (C-G) | | | | | | |
| Less Tax | | | | | | |
| NET PROFIT AFTER TAX | | | | | | |

### Useful booklet

* Finance (Section: The profit and loss forecast)

## Monthly Profit and Loss Forecast

Monthly profit and loss forecast GST exclusive :
| SALES REVENUE ||||||||||||||
| | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total Year |
| Cash sale | | | | | | | | | | | | | |
| Credit sales | | | | | | | | | | | | | |
| Other revenue | | | | | | | | | | | | | |
| (A) Total revenue | | | | | | | | | | | | | |
| LESS Direct cost of sales ||||||||||||||
| Stock/raw materials | | | | | | | | | | | | | |
| Direct wages | | | | | | | | | | | | | |
| Commissions paid | | | | | | | | | | | | | |
| Other direct costs | | | | | | | | | | | | | |
| (B) Total direct cost of sales | | | | | | | | | | | | | |
| (C) GROSS PROFIT (A-B) | | | | | | | | | | | | | |
| LESS Overhead expenses ||||||||||||||
| Selling expenses | | | | | | | | | | | | | |
| Promotions | | | | | | | | | | | | | |
| Freight | | | | | | | | | | | | | |
| Royalties | | | | | | | | | | | | | |
| Commissions | | | | | | | | | | | | | |
| Other selling expenses | | | | | | | | | | | | | |
| (D) Total selling expenses | | | | | | | | | | | | | |
| Administration expenses ||||||||||||||
| Depreciation | | | | | | | | | | | | | |
| Insurance | | | | | | | | | | | | | |
| Lease costs | | | | | | | | | | | | | |
| Power | | | | | | | | | | | | | |
| Rent/Rates | | | | | | | | | | | | | |
| Repairs and maintenance | | | | | | | | | | | | | |
| Salaries | | | | | | | | | | | | | |
| Stationery | | | | | | | | | | | | | |
| Sundries | | | | | | | | | | | | | |
| Telephone | | | | | | | | | | | | | |
| Travel | | | | | | | | | | | | | |
| Vehicle expenses | | | | | | | | | | | | | |
| Other admin expenses | | | | | | | | | | | | | |
| E) Total admin expenses | | | | | | | | | | | | | |
| Financial expenses ||||||||||||||
| Bank charges | | | | | | | | | | | | | |
| Interest | | | | | | | | | | | | | |
| (F) Total financial expenses | | | | | | | | | | | | | |
| (G) Total expenses (D+E+F) | | | | | | | | | | | | | |
| NET PROFIT before Tax (C-G) | | | | | | | | | | | | | |
| Less Tax | | | | | | | | | | | | | |
| NET PROFIT AFTER TAX | | | | | | | | | | | | | |

### Useful booklet

* Finance (Section: The profit and loss forecast)

## Three Year Profit and Loss Forecast

Three-year profit and loss forecast GST exclusive :
| | Pessimistic | Pessimistic | Realistic | Realistic | Optimistic | Optimistic |
| | $_______ | % Sales | $_______ | % Sales | $_______ | % Sales |
| SALES REVENUE |||||||
| Cash sale | | | | | |
| Credit sales | | | | | | |
| Other revenue | | | | | | |
| (A) Total revenue | | | | | | |
| LESS Direct cost of sales |||||||
| Stock/raw materials | | | | | | |
| Direct wages | | | | | | |
| Commissions paid | | | | | | |
| Other direct costs | | | | | | |
| (B) Total direct cost of sales | | | | | | |
| (C) GROSS PROFIT (A-B) | | | | | | |
| LESS Overhead expenses |||||||
| Selling expenses | | | | | | |
| Promotions | | | | | | |
| Freight | | | | | | |
| Royalties | | | | | | |
| Commissions | | | | | | |
| Other selling expenses | | | | | | |
| (D) Total selling expenses | | | | | | |
| Administration expenses |||||||
| Depreciation | | | | | | |
| Insurance | | | | | | |
| Lease costs | | | | | | |
| Power | | | | | | |
| Rent/Rates | | | | | | |
| Repairs and maintenance | | | | | | |
| Salaries | | | | | | |
| Stationery | | | | | | |
| Sundries | | | | | | |
| Telephone | | | | | | |
| Travel | | | | | | |
| Vehicle expenses | | | | | | |
| Other admin expenses | | | | | | |
| E) Total admin expenses | | | | | | |
| Financial expenses |||||||
| Bank charges | | | | | | |
| Interest | | | | | | |
| (F) Total financial expenses | | | | | | |
| (G) Total expenses (D+E+F) | | | | | | |
| NET PROFIT before Tax (C-G) | | | | | | |
| Less Tax | | | | | | |
| NET PROFIT AFTER TAX | | | | | | |

### Useful booklet

* Finance (Section: The profit and loss forecast)

## One-year cashflow forecast

One-year cashflow forecast :
* Cash Receipts
* Less Cash Payments |||||||||||||
* Stock/raw materials
* Direct wages
* Commissions paid
* Other direct costs
* Promotions
* Freight
* Royalties
* Insurance
* Lease costs
* Power
* Rent/Rates
* Repairs and maintenance
* Salaries
* Stationery
* Sundries
* Telephone
* Travel
* Vehicle expenses
* Other admin expenses
* Bank charges
* Internet
* Drawings
* Purchase of Fixed Assets
* Repayment of loans
* GST payments
* Income tax payments
* Other
* (B) Total Cash Payments
* (C) Net Cashflow (A-B)
* (D) Opening Bank Balance
* CLOSING BANK BALANCE (D+C)

### Useful booklet

* Finance (Section: Cashflow budget)

## Break-even calculations

To calculate the necessary level of sales for your business, use the information developed in your Profit and Loss Forecast

### Useful booklet

* Finance (Section: Break-even calculation)

# Business structure, tax and compliance
## Useful booklets

* New Zealand business structure, tax and compliance
* Managing external factors

# Risk management strategy

List below the top hazards and risks in your business in order of priority, and plan how you will eliminate, isolate, minimise or manage each risk. Don't forget sustainability risks such as public backlash against those who cause environmental damage, or a reduction in the supply of oil, pushing oil prices and potentially material prices up dramatically
* Risk Description
* 1
* 2
* 3
* 4
* 5

## Useful booklet

* How to lower the risk

# Planning for the future
## Long range planning

Long range planning :
* Your goals and objectives______________
* A
* B
* C
* D
* E
* F

## Medium-term planning

Medium-term planning Time frame: 2-3 years :
* Your goals and objectives______________
* A
* B
* C
* D
* E
* F

## Short-term planning

Short-term planning Time frame: within 12 months :
* Your goals and objectives______________
* A
* B
* C
* D
* E
* F

### Useful booklets

* Planning for the future

### You have now completed the business plan - basic version.
# Additional sections for specific business needs

The following sections can be added to the business plan if applicable. Check the headings below to see whether any of the additional information applies

# Choosing your team

* How will you ensure a safe and healthy workplace
* How do you know if you are paying a living wage (enough for employees and their families to meet their needs)?
* How do you ensure you are an equal opportunity employer? See also http://www.eeotrust.org.nz/
* Is there anything else you could do to ensure you are a good employer?

## Creating a job description

Job title:
Immediate superior (person to whom reporting):
Responsible for:
Brief description of job:
Major job objectives:
1.
2.
3.
Key tasks:
Resources required to achieve key tasks:

## Creating a person specification

1. Physical requirements:
2. Qualifications—level of education and experience:
3. Special aptitudes—numeracy, literacy and computer skills, etc:
4. Personal characteristics—communication and people skills, etc:
5. Specific circumstances—able to travel, etc:

## Application form
### Personal information

Position applied for:
Date:
Full name:
Address:
Contact details:
Phone:
Fax:
Email:

### Previous experience

Start with your current or last position
1. Job title:
Name of company:
Contact person:
From:
Key Tasks:
2. Job title:
Name of company:
Contact person:
From:
Key Tasks:
3. Job title:
Name of company:
Contact person:
From:
Key Tasks:

## Performance appraisal (PA)

Staff member:
Date of PA
PA completed? yes/no
Results of PA
Action taken as result of Performance Appraisal:

### Useful booklet

* Choosing your team

# E-Commerce
## Other e-commerce uses

Outline here any other ways not previously covered that your business uses e-commerce

## Email and databases

Outline how you use email and your customer databases in your business

## Using the internet

Outline here how your business uses the internet to become more efficient, to research markets, to order products and services, to source information and to reduce costs

## Permission marketing

Describe here how you use e-commerce to develop permission marketing in your business

## Your website

Describe here the functionality and purpose of your website

## Encouraging employee innovation

Outline here how you encourage employees to innovate in your business

## Developing a culture of innovation

What are you doing to encourage a culture of innovation in your business?

## Innovation training

What are you planning to do to ensure that you and your staff can continue to upskill in innovative practices and be exposed to new ideas?

### Useful booklets

* E-Commerce

# Raising investment funds
## Raising outside investment

If you’re looking to raise outside investment for your business, where do you expect these funds to come from? If necessary, list multiple sources (for example, cashflow, the bank, a corporate investor)

## Your key barriers

What do you think are the key barriers faced by other businesses that might wish to compete against you?

## Market size

What is the size of your market in New Zealand dollars?

## Identifying key contacts

List here the key people you can contact for assistance. Include their experience, qualifications, history and the relationship they have with you

## Exit strategy

Outline how you believe an investor will be able to exit from an investment in your business

## Intellectual Property Protection

Describe all the intellectual property protection you have in place for your business

## Structuring the deal

Outline how you believe you will structure the deal for any potential investor. Include here also how much your business is worth, and what percentage of your business you intend to sell (if you’re looking for investment capital)

### Useful booklet

* Raising investment funds

# Exporting
## Dealing with your customers

How do you intend to deal with people located in another country? By phone? By visiting? By a physical office? By employing staff overseas?

## Possible product or services changes

What would you have to change in your product or service to meet the needs of an overseas market?

## Coping with a different culture

How will you cope with possible culture and language difficulties?

## Market development costs

How do you intend to assess the costs of researching and staying in an overseas market?

## Targeted overseas markets

What country or countries have you targeted for export?
What types of people or businesses are you targeting in these countries?

## Contacts and sources of assistance

List here all your existing export contacts and sources of assistance that have helped you so far

## Distributing

Outline how you intend to distribute your products or services in your targeted country

## Branding issues

What brand will you market under in your international markets? Explain why this is suitable

## Promoting overseas

How do you intend to promote your business in your targeted international market?

## Assessing possible price changes

Do you intend to price your products or services differently internationally? If so, how and why?

## Transport issues

Are you going to export the product or sell the right to manufacture the product in another market?
If exporting the product, how do you intend to transport your products in a sustainable manner?
How do you intend to transport your products so they reach your markets on time?

### Useful booklet

* Exporting

# Manufacturing
## Manufacturing Process

What can you do to ensure that resource use is minimised in the manufacture and use of your materials?
What can you do to ensure that waste and pollution (to landfill, water, air) is eliminated or minimised?

## Plant requirements

List here your plant requirements

## Raw materials

What raw materials and stock are required?
Are you aware of what raw material choices there are to minimise environmental damage (for instance a builder using environmentally preferable glues in the manufacture of plywood?)

### Useful booklet - Manufacturing
# Industry sector
## Key success factors

Identify the key success factors for your business

## Key performance indicators

List the key performance indicators for your business. (Get help from an accountant or financial advisor if necessary).
See Measuring sustainable business practice in the Sustainable business practice booklet