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Sample Potential & Opportunities Report

for

Electrical Pty Ltd

This sample report is intended to give you an idea of the structure of the Potential and Opportunities report outlined in Business Planning. You can use the software outlined in Business Planning to develop components of your own report by simply inputting the required data directly into the individual software.


CONTENTS

1. Introduction

2. Business Breakdown by Customers

3. Market Breakdown by Competitors

4. Market Breakdown by Customers

5. Potential & Ability

6. Current Performance

7. Segment Surplus

8. Forecasts

9. Investment

10. SWOT Analysis

Appendix 1 - Data Tables

Appendix 2 - Instructions


Based on details provided by: Jim Jones
On the: 04 April 2000

1. Introduction

The information presented in this report is based on details provided as input for stage one of the BIZPEP Business Planning and Coaching Program. This information has been distilled and utilized in models to highlight business potential and opportunities. The document is designed to provide insight into the business and instigate actions to improve business performance. It forms the basis of Stage two, Decisions and Actions. Data tables not presented in the body of the report are included in Appendix 1. The methodology is outlined in the input instructions. A reference copy is provided in Appendix 2. Green table cells represent data provided as input.

A combination of tables, charts and findings are given for each section. The SWOT Analysis acts as a summary of key points identified during input and processing. Consider the points given and their effect on your business. Use them to develop a vision of potential and opportunities. The next stage is to convert the vision to Decisions & Actions. To achieve this BIZPEP will provide a worksheet to distill and define your actions. It will be processed using our Decision Assistant Model. This will indicate possible outcomes (helping you to make the best decision) and establish means to monitor performance.

To convert the vision to reality set a time to complete the Decision & Actions stage. This requires approximately one hour of your time and should be undertaken within one week of receiving your Potential & Opportunities report.

2. Business Breakdown by Customers

Business Breakdown by Customers Table

Business Breakdown by Customers Chart

Critical findings

3. Market Breakdown by Competitors

Market Breakdown by Competitors Table

Market Breakdown by Competitors Chart

Critical findings

4. Market Breakdown by Customers

Market Breakdown by Customers Table

Market Breakdown by Customers Chart

Critical findings

5. Potential & Ability

Potential & Ability Matrix Table

Potential & Ability Matrix Chart

Based on inputs provided the Potential & Ability matrix table recommends actions for each segment. These are represented graphically in the chart. The Value is a product of the Potential and Ability inputs. It is used as an overall indicator of a segments opportunity for the business. A recommendation is made based on the size of opportunity. The value is indicated on the chart by the size of the bubble.

Critical Findings

6. Current Performance

Current Performance Chart

Breakeven Point Business Surplus

Using the performance data provided a Breakeven Point has been determined. This represents the number of sales and revenue required for the business to generate a surplus (profit). This is provided as yearly monthly and weekly values in the Breakeven Point Business Surplus table. The Breakeven Business Surplus plots Overheads, Cost of Sales and Business Surplus over a range of sales quantities.

Breakeven Business Surplus Chart

Critical Findings

7. Segment Surplus

Segment Surplus Chart

To assess the "profitability" of customer segments the level of segment surplus has been estimated. This is based on the revenue generated for each segment and an allocation of service costs based on the level of resources utilized.

Critical Findings

8. Forecasts

Forecast Table

Forecasts adjust the current performance data based on the relative indicators provided. To improve business performance actions must be undertaken which impact on its costs, market position and, efficiencies. For the forecast to be realistic the impact of these actions must be equivalent to the relative indicators used. The level of competition relative to market strength will tend to level out unless a business is able to establish a unique position from the customer perspective.

Forecast Market Potential Chart

Forecast Business Performance Chart

Critical Findings

9. Investment

Investment Table

Return Table

Critical Findings

Forecast Rate of Return Table

10. SWOT Analysis

Strengths

Weaknesses

Personality and character of owner. Limited management expertise of owner.
Industry knowledge of owner, particularly Industrial R&M. Skills of staff.
Strong industrial base with 100% of current customer business secured. Maintaining quality staff.
Low investment requirements. General R&M and Installation segments are not providing a surplus, recommend disposal.
  Resources are spread across four main segments, two are generating losses.

Opportunities

Threats

Data & Control Cabling. Resources stretched.
Targeted development of Industrial R&M segment. Become experts this will provide customer and staff benefits. Large number of competitors with limited differentiation.
Redirect resources used in General R&M and Installation segments to Industrial R&M. High Materials & Supplies cost.
Gain labour and materials efficiencies by specialization. Unable to service current customers efficiently due to conflicting demands from non-complimentary customer base.
Substantial market opportunities are available due to small current market share with limited impact on competitors' positions.  
Improve staff motivation by decreasing running around to different jobs and segments.  
Establish a plan for action implementation and review. Let staff know where the business is going.  

Appendix 1 - Data Tables

Performance Table

Segment Surplus Table

Breakeven Range Business Surplus Table

Appendix 2 - Instructions

Instructions 1

Instructions 2

Instructions 3

Instructions 4

Instructions 5

Instructions 6

Instructions 7