ASSESSMENT TASKS - EXERCISE 4 Page 8 Task 2 [Total Marks 20] Now that you have answered the questions in Task 1, you've done the hard work. Now bring your answers together to use in the Business Plan template we have provided. There are also many tips within the template to use. A timeline of 12 months can be used for your Plan. Fill in the template incorporating the following 9 items. These items and the layout will already be structured for you within the template. As for Task 1, this template will be suitable for brokers already in the industry, employed or self-employed or for those who are aiming to join the industry in the future. Business plan: 1. Business Purpose ie. Mission 2. Goals and Objectives 3. Target Market 4. Information Management 5. Financial/Funding Plan 6. Risk Management Strategies Marketing activities: 7. Networking and developing Professional Relationships 8. Marketing Goals and Strategies 9. Client Retention Strategies Guidelines 1. Once you have filled in the template, save the document with a different le name 2. You will nd Unit 12 a helpful unit for this task. The template will prompt you for ideas so approach it not as a lengthy task but as a plan for your future success as a broker. 3. When you reach the Financial/Funding question we understand that expected costs/cashflow may not be exactly as it will occur in the real world. This does not need to be a complex part of your plan - a demonstration of logic and thought is most important. 4. You will not be judged on your typing or word processing or document design ability. . You will not be judged on your marketing skills but on evidence of your understanding of what would be anticipated in the development of a business, the attracting of clients and the retention of clients. 6. If you still feel unsure where to start with your business/marketing plan, then you may wish to utilise a Google search to research what different types of Plans can incorporate. There is no need to feel daunted by the length of this Exercise as we have provided in our template a large number of ideas for you to incorporate. We want to know what is your plan and what strategies will you use in order to succeed as a broker. U1 7. Your Confidentiality of information - no ideas or plans will be shared with any party outside of NFI. If you are already working as a broker, rest assured your plan is condential to NFI. You are not obliged to share information or ideas that you consider to be confidential to you or your business; you can improvise as required. 8. Within the template, use the italicised guidance for help, then you may remove the italicised text before you finalise and submit your plan. Copyright 2021 The National Finance Institute v.210821 ASSESSMENT TASKS EXERCISE 4 Page 1 Business and Marketing Plan Prepared by (Student's name) Date prepared Business name Registered or proposed name Business structure Select structure Licences or registrations Examples: Credit Rep / Licensee / Not registered yet] Current or proposed Website [Current or future] Copyright 2021 The National Finance Institute V.110821 ASSESSMENT TASKS EXERCISE 4 Page 2 Contents Executive Summary ................................................................................................................................. 3 Our why ............................................................................................................................................... 3 Our vision ............................................................................................................................................ 3 Our mission ..4 Operations .......................................................................................................................................... 4 Key people ........................................................................................................................................... 5 Marketing goals and strategies ............................................................................................................... 6 The problem ........................................................................................................................................ 6 Client retention strategies .. 6 Target Market ..................................................................................................................................... 6 Advertising and promotion ................................................................................................................. 6 The competition .................................................................................................................................. 7 SWOT analysis ..................................................................................................................................... 7 Risk Management ................................................................................................................................... 8 Risk assessment .................................................................................................................................. 8 Insurance ............................................................................................................................................. 8 Laws and regulation we'll need to comply with ................................................................................. 9 Goals and objectives ............................................................................................................................... 9 Goals for next year .............................................................................................................................. 9 Goals for the next 3 years ................................................................................................................... 9 Professional Relationships .................................................................................................................. 9 Client Prospects ................................................................................................................................ 10 Financial/Funding Plan .......................................................................................................................... 10 Finance needed ................................................................................................................................. 10 Profit and loss forecast ..................................................................................................................... 10 Cash flow forecast ............................................................................................................................. 10 Copyright 2021 The National Finance Institute V.110821 ASSESSMENT TASKS EXERCISE 4 Page 3 The Business Plan Executive Summary [Complete this section last so you can summarise information from the rest of your plan. J What our business does The products or services we sell. Our target market Our unique selling point Our business goals Our why The inspiration behind the business. [Consider why you started or why you will be joining this industry. Why are you personally in vested in the financial services industry? For example: To be the go-to broker in Australia ] Our vision Our goals and objectives and where we aim to go. [Consider what you want the business to accomplish in the long term. What are your ultimate goals and objectives? Example: To be the one stop shop for all nance needs for all client needs using the latest in technology] Copyright 2021 The National Finance Institute V.110821 ASSESSMENT TASKS EXERCISE 4 Page 4 Our mission Who we are and why we exist. [Consider the purpose of the business and define what it does or will do for clients. J Operations Business structure and compliance responsibilities. [How you will set up your business, structure, regulations and compliance; for example, your franchise/aggregator, licensing, etc. ] Products and services What we're selling/offering. Product/service Description Sales and distribution channels The channels we'll use to advertise our services to existing and new potential customers. Channel Used for Details Select a channel [Example Online channel may be used for First Home Buyers; Website channel chat may be used for more involved Non- resident clients ] Select a channel Select a channel Digital technology The Technology we plan to use for the business. [ Examples: website sales, customer database, aggregator software, lender compliance templates] Copyright 2021 The National Finance Institute V.110821 ASSESSMENT TASKS EXERCISE 4 Page 5 Information management How we collect, store and use customer and stock information. [How do you collect, store and use customer information ? Do you back up this information P How do you do this and how often ? Make sure you comply with industry standards and legislation] Equipment required Equipment we will need in the business. Equipment Owned/ leased or subscription Anticipated Cost (5) [Examples: computers, Select date machinery, vehicles, software] Select date Select date Select date Key people Ou r staff [List the roles all people in or expected to be in the business, including yourself. ] Role Responsibilities/duties [Examples: owner, manager, casual employee] Sources of advice and support [Sources of advice/ support for the business could include men tors, industry bodies, BDll/ls, peers, consultants]. External people or organisations that provide support to our business. Support type Skills and experience Skill and staff retention strategies How we keep our staff working for us and maintain their skills. [Example: The manager regularly checks in with staff, all staff attend monthly team meetings, we provide monthly CPD to maintain staff professional development planning. ] Copyright 2021 The National Finance Institute V.110821 ASSESSMENT TASKS EXERCISE 4 Page 6 Marketing goals and strategies The problem The market problem/s that we aim to solve for customers. [Example There's an overwhelming choice of lender products in the market. It's hard for clients to know is suitable for their needs and objectives. ] Client retention strategies How the business solves the problem our unique selling point. This is how we'll succeed in the market. [Example Strategies for attracting and retaining clients] Target Market The group of customers that we aim to sell our products or services to. [Not everyone will want your product or service, so research the market and have a clear picture of who you will be targeting. This helps improve your chances of success. [Example Our products are targeted at adults over 30 with a medium to high disposable income. ] Advertising and promotion The channels we'll use to communicate with our target customers. Channel Used for Details Select a channel [Example Promotion [Example We'll use regular Facebook posts prior to launch / end to promote our free services] Fyear.] Select a channel Select a channel Select a channel Copyright 2021 The National Finance Institute V.110821 ASSESSMENT TASKS EXERCISE 4 Page 7 The competition The top 3 businesses we're competing against, what they do well and not so well. What we'll do differently to succeed in the market. Competitor name [Example ABC Loans] Strengths Weaknesses What we'll do differently SWOT analysis [Example Advertises 3- day approval] [Example Higher interest rates as privately funded] [Example We only offer mainstream bank loan products] Our business strengths, weaknesses, opportunities and threats. Strengths What's good about our business. Weaknesses What's not so good about our business. Opportunities External factors we could take advantage of. Threats External factors that could cause problems for us. [Use what you created already in Task 1.] [Example The business has no business website yet] [Example The market is growing rapidly] [Example Another new competitor could target the same market. ] Copyright 2021 The National Finance Institute V.110821 ASSESSMENT TASKS - EXERCISE 4 Page 8 How we'll address each weakness and threat [Example: We'll invest in IT experts to ensure our website has good interaction and chat options. ] Risk Management Risk assessment Risks that could impact the business and how we can protect it. Risk/impact description Likelihood What we'll do to reduce this risk [Example: Pandemic causes Select level [Example: Strengthen online sales/e- closure in our suburb commerce. ] [Example: Computer theft Select level [Example: Use cloud storage for business results in loss of financial records.] records.] Select level Select level Select level Insurance The insurance we have or will need. Insurance type Details Select type Select type Select type Select type Copyright 2021 The National Finance Institute V.110821ASSESSMENT TASKS EXERCISE 4 Laws and regulation we'll need to comply with Page 9 [ Examples: fair trading/consumer laws, codes of conduct, employment laws, ASIC licences] Goals and objectives Goals for next year [Enter a goal] Actions to achieve . [Action] goal Who's responsible [Example: broker, mentor, aggregator, other] Goals for the next 3 years [Enter a goal] Actions to achieve 0 [Action] goal Who's responsible [Example: broker, mentor, aggregator, other] Professional Relationships [Enter a strategy] List the strategies o [Action] you will use in your networking and in creating professional relationships with both clients and third parties Who's responsible [Example: broker, mentor, aggregator, other] Copyright 2021 The National Finance Institute [Enter a goal] [Enter a goal] [Enter a strategy] [Action] [Action] [Action] [Enter a goal] 0 [Action] [Enter a goal] 0 [Action] [Enter a strategy] 0 [Action] V.110821 ASSESSMENT TASKS EXERCISE 4 Client Prospects [Outline how you will identify new client / prospecting strategies. Examples: trade shows, networking, third party referral arrangements, etc. ] Financial/Funding Plan Finance needed How much money would be needed to start or to expand and what will it be used for. Page 10 [if not required, then enter N/A. If anticipated, then Example: We will be seeking a loan of $30,000 to purchase and install client waiting lounge/reception area] Profit and loss forecast Our forecast profit/loss for the next 3 years. [Year 1] Gross profit / S anticipated income Anticipated expenses 3 Net profit 5 Cash flow forecast Our forecast cash flow for the 4 quarters Qrtr Qrtr Qrtr Qrtr 1 2 3 4 Monthly $ $ $ 5 cash balance Closing S S S 3 balance Copyright 2021 The National Finance Institute [Year 2] [Year 3] V.110821