Business Plan Kaitaiki Topu Whenua Trust Section 216 2011-2014

Business Profile
Business Overview
Kaitaiki Topu Whenua Trust Section 216 is a small business and management consultancy that was incorporated in Suburb/City in 20XX. It operates on the Central Coastal Region located 100 kilometres north of Capital city, encompassing the local government area of Shire. The principal Consultant, Mr Fred Citizen has an extensive background in Business Consulting, gained in part from five years experience as a Management Consultant/Business Analyst for the Multinational Big 4 Accounting Company. Kaitaiki Topu Whenua Trust Section 216 has two full time consulting staff, a bookkeeper, a receptionist/administration support person and several professional associates, who are called upon to provide support in the areas of ABC and customer service training. Historically, the services offered by Kaitaiki Topu Whenua Trust Section 216 has covered an extensive range of industry sectors and areas with an emphasis on accounting, financial and administrative support for manufacturing & retail businesses in the $500,000 - $1.5M turnover range. Kaitaiki Topu Whenua Trust Section 216 has achieved an excellent reputation for providing high quality consulting services. A recent review showed Kaitaiki Topu Whenua Trust Section 216s more profitable assignments flowed from the business planning process. While Kaitaiki Topu Whenua Trust Section 216 would previously deliver a business plan on demand, a comprehensive business plan is now seen as an essential requirement for all modern businesses regardless of size. This business plan has enabled Kaitaiki Topu Whenua Trust Section 216 to define more clearly the direction of the business and to determine the most suitable consulting service offerings. The procedure of working through the internal and external diagnostic processes has reinforced the understanding of the business planning process. As a result of this analysis, Kaitaiki Topu Whenua Trust Section 216 has pinpointed some significant new market opportunities which could substantially increase sales. Kaitaiki Topu Whenua Trust Section 216 no longer sees itself as simply in the business of selling 'pure' consulting services. It is clear that the intangible nature of consulting means that the buyer behaviour of business owners and managers is based on subjective factors such as their assessment of the principle consultants of the business. This is not an ideal scenario as the results of the consulting assignment may not be apparent for some time. In the past twelve months several assignments have 'stalled' due to clients becoming impatient. Kaitaiki Topu Whenua Trust Section 216 must refine the sales cycle to incorporate a more tangible component such as a business planning document as part of the needs analysis. In this way the prospective clients will have a more tangible experience of the services provided by Kaitaiki Topu Whenua Trust Section 216 that could be delivered by someone other than a principle consultant. They will also have a better understanding of the processes for measuring and evaluating the results of Kaitaiki Topu Whenua Trust Section 216s contribution to their business. Kaitaiki Topu Whenua Trust Section 216 will also seek to extend their services to incorporate other product based solutions. As the demand for software/technology that supports business processes is growing rapidly, Kaitaiki Topu Whenua Trust Section 216 will integrate productivity tools and systems into the range of options offered to clients. This plan therefore also identifies new opportunities by extending the range of services to include a formal business planning service with the traditional management consulting and advice. A number of different avenues will be explored with the objective of providing clients with more tangible benefits earlier in the development of the business relationship.

Kaitaiki Topu Whenua Trust Section 216 is a small business and management consultancy that was incorporated in Suburb/City in 20XX. It operates on the Central Coastal Region located 100 kilometres north of Capital city, encompassing the local government area of Shire. The principal Consultant, Mr Fred Citizen has an extensive background in Business Consulting, gained in part from five years experience as a Management Consultant/Business Analyst for the Multinational Big 4 Accounting Company. Kaitaiki Topu Whenua Trust Section 216 has two full time consulting staff, a bookkeeper, a receptionist/administration support person and several professional associates, who are called upon to provide support in the areas of ABC and customer service training. Historically, the services offered by Kaitaiki Topu Whenua Trust Section 216 has covered an extensive range of industry sectors and areas with an emphasis on accounting, financial and administrative support for manufacturing & retail businesses in the $500,000 - $1.5M turnover range. Kaitaiki Topu Whenua Trust Section 216 has achieved an excellent reputation for providing high quality consulting services. A recent review showed Kaitaiki Topu Whenua Trust Section 216s more profitable assignments flowed from the business planning process. While Kaitaiki Topu Whenua Trust Section 216 would previously deliver a business plan on demand, a comprehensive business plan is now seen as an essential requirement for all modern businesses regardless of size. This business plan has enabled Kaitaiki Topu Whenua Trust Section 216 to define more clearly the direction of the business and to determine the most suitable consulting service offerings. The procedure of working through the internal and external diagnostic processes has reinforced the understanding of the business planning process. As a result of this analysis, Kaitaiki Topu Whenua Trust Section 216 has pinpointed some significant new market opportunities which could substantially increase sales. Kaitaiki Topu Whenua Trust Section 216 no longer sees itself as simply in the business of selling 'pure' consulting services. It is clear that the intangible nature of consulting means that the buyer behaviour of business owners and managers is based on subjective factors such as their assessment of the principle consultants of the business. This is not an ideal scenario as the results of the consulting assignment may not be apparent for some time. In the past twelve months several assignments have 'stalled' due to clients becoming impatient. Kaitaiki Topu Whenua Trust Section 216 must refine the sales cycle to incorporate a more tangible component such as a business planning document as part of the needs analysis. In this way the prospective clients will have a more tangible experience of the services provided by Kaitaiki Topu Whenua Trust Section 216 that could be delivered by someone other than a principle consultant. They will also have a better understanding of the processes for measuring and evaluating the results of Kaitaiki Topu Whenua Trust Section 216s contribution to their business. Kaitaiki Topu Whenua Trust Section 216 will also seek to extend their services to incorporate other product based solutions. As the demand for software/technology that supports business processes is growing rapidly, Kaitaiki Topu Whenua Trust Section 216 will integrate productivity tools and systems into the range of options offered to clients. This plan therefore also identifies new opportunities by extending the range of services to include a formal business planning service with the traditional management consulting and advice. A number of different avenues will be explored with the objective of providing clients with more tangible benefits earlier in the development of the business relationship.

Unique Features
The services offered by Kaitaiki Topu Whenua Trust Section 216 are a direct result of the experience and know how of its two principle consultants.

Fred Citizen has extensive experience working as a business analyst for a large consulting firm. He holds a Bachelor of Business from the State University and is a Certified Practicing Accountant. He has developed a series of unique diagnostic tools for small to medium size businesses to identify the operational areas that could be improved (so as to reduce costs and improve efficiency). Jane Bloggs, who has also worked for a large consulting firm, has extensive experience designing IT systems to support businesses in implementing more effective operational systems using readily available software. Both Senior Consultants have an extensive network of associates who provide a variety of consulting services from business brokers to total quality management experts, marketing, engineering, customer service trainers and industrial relations specialists. As a result, Kaitaiki Topu Whenua Trust Section 216 can offer their small to medium sized clients a totally integrated solution. The business is in fact a one stop business consulting service; matching the range of services available to large companies from the multi-national consulting practices, but at an affordable cost.

Sales Forecast
Last Year $455 $287 63% $172 This Year $831 $624 75 % $374 200B $1,200 $900 75% $540 200C $1,900 $1,440 75% $864 200D $2,300 $1,880 80% $1128

Sales (000's) Gross Profit % Gross Profit Net Profit

$2,500

$2,000

$1,500 Sales (000's) $1,000 Gross Profit Net Profit

$500

$0 Last Year This Year 200B 200C 200D

Proof of Sales
It is anticipated that Kaitaiki Topu Whenua Trust Section 216 will achieve this increase in sales because: Kaitaiki Topu Whenua Trust Section 216 has increased sales by x% over the last two years and is geared for growth. * Kaitaiki Topu Whenua Trust Section 216 has an excellent reputation and good customer

base which can be relied upon to continue to refer business. * Kaitaiki Topu Whenua Trust Section 216 will be placing more emphasis on services to businesses that are in rapidly growing industry sectors or are experiencing significant levels of re-structuring and change. * Although Kaitaiki Topu Whenua Trust Section 216 has based its consulting approach on an initial needs analysis contributing to the business planning process, the business has never specifically targeted clients with a structured business planning service. The demand for this service in the existing market is increasing and Kaitaiki Topu Whenua Trust Section 216 has been approached several times recently by clients to help prepare planning documents. * Kaitaiki Topu Whenua Trust Section 216 has been awarded a tender to provide mentor support to managers at the newly formed National Public Services Bureau worth $x for a fixed term of twelve months.

Competitive Profile
Market Size
According to the National Bureau of Statistics Register, there were 8,081 business locations in the Shire region in August 200A. Of these 95% had less than 20 employees. The industry sectors with largest numbers were retail & construction with 20% and 17% of all registered businesses. NBS Population Projections identify the region as the fastest growing in the state. This has lead to rapid growth in the building construction industry (1,367 registered businesses), manufacturing (543) and retail trade industry (1,586) which has fuelled significant growth in Tourism and hospitality Industry (333). It should also be noted that the NBS figures for the property and business services category in the region have also increased dramatically. While a large number may be accounted for by new real estate agencies and domestic service providers such as landscaping or gardening services, there is no doubt of increased registrations of business services. These represent an increase in the number of accountants and consultants offering consulting service and must be seen as a threat to Kaitaiki Topu Whenua Trust Section 216s established place in the market. At a recent local small business, 4 new 'consultants' were identified.

Market Segments
Within the total population, Kaitaiki Topu Whenua Trust Section 216 has identified three different ways of segmenting the market and subsequently identifying clients with different types of needs. Firstly, clients are seen to be motivated to seek consulting advice for five different reasons: Initiating or responding to change. Attempting to address business problems for which they are not equipped. Identifying and responding to new opportunities. Strategic business planning (including succession plans for retiring owners). Need for objective or external independent input (including conflict resolution for business partners). The traditional market of Kaitaiki Topu Whenua Trust Section 216 has predominantly been with businesses concerned with attempting to address business problems for which they are not equipped. While not a general rule, many of these businesses are unlikely to ever grow in size and few exhibit that potential. However, significant growth has been identified in other presenting reasons over the past x years. And clearly businesses with the potential to grow

offer a more profitable long-term relationship. Secondly, Kaitaiki Topu Whenua Trust Section 216 can segment the market based on the economic base in the region. The industry sectors with large numbers were retail & construction with 20% and 17% respectively of all registered businesses. Business activity in the region is largely due to turnover in the manufacturing, retail trade, tourism and building construction industries. Traditionally the clients of Kaitaiki Topu Whenua Trust Section 216 have been in the manufacturing and retail sectors. Strong growth in the building industry is being fuelled by explosive population growth. The region has increased its population by 43% over the past ten years compared to the state average of 13%. It is estimated that the total population will grow by a massive 59% within the next 10 years in six key urban centres, with a higher than state average concentration of population aged 55 or older (which would suggest an increasingly strong demand for health related professional services in the near future). This is due to the regions popularity with retirees. For the same reasons the region has also attracted strong growth in tourism and hospitality. Kaitaiki Topu Whenua Trust Section 216 has consistently failed to target these growth areas and the evidence suggests that while the manufacturing sector has remained constant in terms of its turnover in the region, this is increasingly being driven by fewer and larger companies predominantly in food (19.8%), industrial machinery (15.7%), or paper products (12.8%). If Kaitaiki Topu Whenua Trust Section 216 continues to service this segment, the business will need to focus attention on the needs of these larger companies. The consideration of structure & size of the enterprise is the third way Kaitaiki Topu Whenua Trust Section 216 can segment the market. The following Industry model has been used: Management structure Number of employees Turnover External Equity Internationally active Micro Owner operator 0-4 <$500k None Few Small Owners 1-25 $500$2.5m Very few Some Developing Informal team 10-75 $1m-$10m Common Some Developed Formal team 35-300 $2m-$50m Very common Increasingly Large Specialised professional team 250+ >$20m All with many publicly listed All

Under this segmentation model, the business predominantly sees owner operators of Micro or Small Businesses. Their needs are primarily for formal professional management structures that Kaitaiki Topu Whenua Trust Section 216 can introduce to their business. It is clear that Kaitaiki Topu Whenua Trust Section 216 have a great deal to offer both developing and developed businesses although it must be recognised that these segments are motivated by different needs and their criteria for choosing a consulting firm are quite different from those of the existing client base. Thus for the development of other markets for business services, Kaitaiki Topu Whenua Trust Section 216 must seek clients who are not just problem solving, who are not just retailers or manufacturers, and who are not necessarily small or micro businesses. This means Kaitaiki Topu Whenua Trust Section 216 must redefine the consulting service to appeal to a broader range of industry groups, particularly in the high growth segments of building construction, tourism, health care professionals and target larger or developing business in the traditional market segments. In general, Kaitaiki Topu Whenua Trust Section 216 must actively seek out those businesses that are prepared to invest in their own longerterm growth. This plan will concentrate on ensuring the core of the business is correctly positioned to maintain and strengthen market share position.

Market Trends

There are several major trends that have affected all businesses and the business environment itself. Kaitaiki Topu Whenua Trust Section 216s strong competitive position is based on a clear understanding of these trends and helping the clients respond appropriately. In working with clients, Kaitaiki Topu Whenua Trust Section 216 generally asks them to address the changes in their market by identifying three main issues: Technological change; Globalisation of markets; Demographic & cultural change and major changes in buyer behaviour. These issues have great significance in determining the kinds of problems and the range of services that clients are looking for. It is therefore important that Kaitaiki Topu Whenua Trust Section 216 applies the same analysis to the business and market. Over the last ten years the rate of adoption of personal computers has grown exponentially and there are an enormous number of generic software applications for small to medium sized businesses. Many businesses have invested heavily in custom built systems, however there is strong demand for Kaitaiki Topu Whenua Trust Section 216 to integrate custom solutions and help 'upgrade' their legacy systems. Increasingly sophisticated software programs offer businesses a range of Do it yourself (DIY) functions, which previously might have been outsourced. At the same time much of the technical information Kaitaiki Topu Whenua Trust Section 216 provided to clients in the past is now available over the internet. Indeed there are now consulting and advisory services available over the internet also. With the improvements in video conferencing it is now possible for services to be delivered using this technology. Kaitaiki Topu Whenua Trust Section 216 considers it imperative to identify practical technological tools and include them in the range of services offered by the business. Kaitaiki Topu Whenua Trust Section 216s ability and know how to provide clients support in gaining the full benefit from these products is a growing need in all businesses. However, Kaitaiki Topu Whenua Trust Section 216 believes that the importance of face-to-face contact is essential for forming the deep rapport necessary for addressing most of the relational issues in the business. Kaitaiki Topu Whenua Trust Section 216 has no immediate plans to expand their web site to allow for the complete delivery of services. Many major macro-economic forces continue to change the basic business environment. Many large corporate organisations have re-engineered their operations and outsourced many of the non-core support functions of their operations. This factor, combined with serial redundancies of middle managers and technical staff has contributed to continued growth in the small business sector. Many business-to-business service providers are run by managers made redundant from larger organisations that often contract their services back to their former employers (at commercially suicidal rates). These businesses often have a very strong management and operational focus but lack a grasp of the marketing and commercial realities of small business. These businesses represent a growing but challenging new market. Similarly, the continuing 'commercialisation' of the public sector at both Federal, State and Municipal level also contributes to the increasing number of small business start ups. Kaitaiki Topu Whenua Trust Section 216 has been successful in tendering to provide a mentoring program to officers in the recently formed CPD, a Public sector Service Bureau that has been 'commercialised'. This represents another relatively new market segment with great potential. If recent changes to the structure of municipal government in South State were to be adopted here, there would be a huge opportunity to extend the program developed for CPD to these prospects. In recent times there are more and more successful businesses being established by women however Kaitaiki Topu Whenua Trust Section 216 has failed to change in the way the business services are sold. Kaitaiki Topu Whenua Trust Section 216 may be missing out on a very significant part of this market simply because women establish separate business networks to men and can deal primarily with other women. This situation could be remedied

by the appointment of another woman to join the business as a senior consultant. The rise in the number of franchise operations represents a significant challenge to most small businesses. Here too, Kaitaiki Topu Whenua Trust Section 216 has seen evidence of similar forces affecting the business. Several franchise operations are selling a business opportunity that in turn offers a comprehensive business development program to small to medium sized businesses. For example, one is a US based business development program, headed up by high profile author and motivational speaker, Bob Green. Another is a locally developed program with links to a major financial institution. In the local region, an accountant (Tony Mc Caw) has just spent $15,000 to purchase such as system. Both these franchise operations have been strongly targeted at accounting practitioners. This raises the issue of another major trend affecting the market. Increasingly, accounting practices are diversifying away from their reliance on compliance based work for business clients. New technology and software that allows businesses to prepare their own financial statements and documents are reducing the reliance of businesses on their accountant. There is also the likelihood of tax reform in the near future that will reduce the complexity of personal tax returns. This will lead to more and more accounting professionals looking to extend the range of services they offer their clients. These trends are expected to continue over the next few years. For Kaitaiki Topu Whenua Trust Section 216 to survive, the business will need to target future efforts to growing segments and to review and revise the services offered based on the changing needs of the market relative to competitive offerings.

Customer Behaviour
Almost 80% of all Kaitaiki Topu Whenua Trust Section 216s clients were initially referred to the business from one of two sources. The first was a local business broker Graham McLow (now retired) who routinely referred new business buyers to Kaitaiki Topu Whenua Trust Section 216. The other major centre of influence was a 'reference site', ABC Toys. Richard Allan of ABC Toys engaged the services of Kaitaiki Topu Whenua Trust Section 216 over ten years ago to provide management support for the strategic development of his business. The success of that assignment and Richard's subsequent involvement in the local Chamber of Commerce has been a major factor in the growth of the business. Again, because of the industry sectors these two centres of influence operated in, the business has predominantly developed its client base in the retail and light manufacturing areas. A major thrust of future marketing efforts should be directed towards reproducing relationships like those established with Richard and Graham in other industry sectors. Harry Healy will immediately establish reference sites for future business' development in the Hospitality and Tourism industry and Fred Citizen will seek a reference site in the Building Construction sector. After an initial discussion of their business and a preliminary needs analysis, most prospects will want to assess the value of engaging a consultant through the development of a test assignment that allows them to "Suck it and See". It is desirable to develop such a preliminary service that is low cost and not time intensive. Then prospects can easily get to know Kaitaiki Topu Whenua Trust Section 216 and the business capability, without the consultants having to invest a large amount of time. A large number of clients will initially discuss a business problem or ask advice from their accountant. While some accountants are moving to provide extended services, the majority are not equipped or interested in providing such services. Kaitaiki Topu Whenua Trust Section 216 must seek to form closer relations with accountants in the region. Few business owners actively seek out a Business Consultant and while there are cases of businesses engaging a consultant out of a business directory listing or a business publication, Kaitaiki Topu Whenua Trust Section 216 hasnt experienced this. However, business owners

or managers who are serious about their business will actively participate in regional development forums, established business networks such as Chambers of Commerce or Industry Associations and will attend high quality business seminars. Kaitaiki Topu Whenua Trust Section 216 must continue to build a profile in these forums. After engaging Kaitaiki Topu Whenua Trust Section 216, clients are provided with a written contract outlining terms and conditions, the code of professional conduct and a list of clearly defined outcomes (deliverables) for the assignment. This is considered essential to give clients clear criteria by which to assess Kaitaiki Topu Whenua Trust Section 216s performance. Increasingly, Kaitaiki Topu Whenua Trust Section 216 has seen that clients need to have some tangible evidence of the benefit they derive from the service. This gives weight to the business strategy of selling and supporting good business software. Clients then have an immediate tangible product. It is also possible then to have marketing and sales happening without a senior consultant being present. This addresses one of the significant limits to growth in the consulting business. It becomes possible to have a junior sales co-ordinator sell a software product/support and then 'up-sell' clients to a consulting assignment.

Strategic Direction
SWOT Analysis
Appearing below is a summary of the Kaitaiki Topu Whenua Trust Section 216s most important strengths, weaknesses, opportunities and threats.

SWOT Analysis
Strengths of the Business Excellent customer base in retail and manufacturing. Good reputation. Excellent Communication Skills Good diagnostic tools, analytical & management skills/experience. Good ability to develop market information. Weaknesses of the Business Not promoting the product to some segments. Reduced profitability due to inconsistent marketing performance. Reduced effectiveness due to reinventing the wheel for each client. Involvement in implementation of business solution is not cost effective. Opportunities in the Marketplace Added support for IT products and services like business software. Growing building, construction & hospitality/tourism market segments.

"Which means that"

Can sell other products or services to this customer base. Research new products. People actively seek out the business. Emphasis on testimonials in Marketing Information. Ability to clarify & understand clients problem. Emphasise in all promotion.

Missing out on sales opportunities. Extend into new segments Need to identify areas of repetition and look for time saving practices. Need to develop/source more implementation tools.

A potentially enormous market for Kaitaiki Topu Whenua Trust Section 216 to tap into. Kaitaiki Topu Whenua Trust Section 216

Further Public Sector commercialisation.

should actively target these segments. Opportunity to employ and leverage junior consultants.

Threats in the Marketplace Increasing involvement of accounting profession in the delivery of business services. Increasing competition from Franchise Business Systems groups. New government one-stop information centre directing prospects elsewhere. Need to form closer relationship with other accountants to outsource these services. Need to focus on developing the companys image. Managing Director to take more active role in establishment of Regional Business Advice Centre.

Appearing below is a summary of the Kaitaiki Topu Whenua Trust Section 216s most important strengths, weaknesses, opportunities and threats.

SWOT Analysis
Strengths of the Business Excellent customer base in retail and manufacturing. Good reputation. Excellent Communication Skills Good diagnostic tools, analytical & management skills/experience. Good ability to develop market information. Weaknesses of the Business Not promoting the product to some segments. Reduced profitability due to inconsistent marketing performance. Reduced effectiveness due to reinventing the wheel for each client. Involvement in implementation of business solution is not cost effective. Opportunities in the Marketplace Added support for IT products and services like business software. Growing building, construction & hospitality/tourism market segments. Further Public Sector commercialisation.

"Which means that"

Can sell other products or services to this customer base. Research new products. People actively seek out the business. Emphasis on testimonials in Marketing Information. Ability to clarify & understand clients problem. Emphasise in all promotion.

Missing out on sales opportunities. Extend into new segments Need to identify areas of repetition and look for time saving practices. Need to develop/source more implementation tools.

A potentially enormous market for Kaitaiki Topu Whenua Trust Section 216 to tap into. Kaitaiki Topu Whenua Trust Section 216 should actively target these segments. Opportunity to employ and leverage junior consultants.

Threats in the Marketplace

Increasing involvement of accounting profession in the delivery of business services. Increasing competition from Franchise Business Systems groups. New government one-stop information centre directing prospects elsewhere.

Need to form closer relationship with other accountants to outsource these services. Need to focus on developing the companys image. Managing Director to take more active role in establishment of Regional Business Advice Centre.

Mission Statement
Kaitaiki Topu Whenua Trust Section 216s success is founded on a relentless commitment to making clients of the business more profitable and effective. By 200X, Kaitaiki Topu Whenua Trust Section 216 will have consolidated its reputation as the most effective business consulting service in the region. By 200Y, Kaitaiki Topu Whenua Trust Section 216 will have grown to a team of 4 full-time consultants with a strong full-time marketing, sales and administrative support team.

Target Market
Based on identified market trends and the profiles of the business and competitors it has been decided to concentrate Kaitaiki Topu Whenua Trust Section 216s efforts toward the following target market segments: Medium sized business in the Manufacturing, Retail, Construction or Hospitality sectors with turnover of greater than $5 million, who are planning to or have the capacity to grow their business. Small Businesses start ups in the Health Care sector with the capacity for rapid and substantial growth. Professional business services with operation and technical skills but lack marketing or commercial experience. Newly formed Public Sector Business units undergoing commercialisation. Kaitaiki Topu Whenua Trust Section 216 will extend coverage of these market segments by developing a broader network with centres of influence in the defined target region. This also means establishing reference sites in hospitality and building construction businesses as well as the health care sector.

Positioning
Kaitaiki Topu Whenua Trust Section 216 has traditionally focused on the established family businesses in the retail and manufacturing segments. The appeal to these markets has predominantly been a kind of unconscious message of comfort. The business has always told clients we can help because we have a special empathy and rapport for who you are". Thus Kaitaiki Topu Whenua Trust Section 216 has been seen as safe and friendly and this has appealed to small businesses that want to maintain the status quo and are not necessarily well suited to the increasing demands of growth. (Their loyalty could also be seen as dependence and in several cases it is no longer commercially viable for Kaitaiki Topu Whenua Trust Section 216 to maintain the relationship). While Kaitaiki Topu Whenua Trust Section 216 will continue to pitch services to clients by emphasising an understanding and caring nature for them, the business needs to understand that this approach has tended to limit internal development. Over the next year, Kaitaiki Topu Whenua Trust Section 216 will develop a clearer commercial image and will start to direct more face to face sales and direct mail promotional programs at medium sized businesses. Kaitaiki Topu Whenua Trust Section 216s positioning will be that the business understands the processes of growth. Hence the slogan should emphasise that the success of the business is based on the clients business success. The specific strategies and actions that

reflect this repositioning for each major area of the business are explained over the next few pages.

Competitive Analysis
Detailed Competitor Profile - Business Consultants in Byford Kaitaiki Topu Whenua Trust Section 216 Price Strategy Consulting Price Fixed price on assignment Product Range of services Quality Communication Skills Number of Consultants Formal Qualifications Promotion Customer base Primary Medium Advertising Appeal Appearance of offices 60 clients Referral The Business Experts Medium 500 clients Suburban Print Media Financial Management Excellent Poor (operates from home) 20 clients Suburban Print Media Bob Green - US speaker Yes Yes No 2 1 1 Extensive High Excellent Limited Medium Medium $125/hour Yes $250/hour No $?/hour Yes ~$10,000 pa Limited High Poor McCaw & Associates Accounting BusNet

Strategy Highlights
The following represents a summary of key strategy highlights. Marketing strategy highlights: Kaitaiki Topu Whenua Trust Section 216 will better position and target its marketing effort to businesses that are serious about growth over the next planning period. This will also involve upgrading the image of the company by the adoption of a new company logo and development of a full colour company prospectus. The company will strengthen its sales performance through addition of IT products to its range of services and the appointment of a product sales consultant attractive to medium sized companies. It will adopt a more responsive and defined approach to selected target markets over the entire year rather than oscillating between marketing and service delivery. These strategies are detailed in the marketing plan.

Operational strategy highlights: Kaitaiki Topu Whenua Trust Section 216 will seek greater leverage of the time spent with clients by senior consultants by: Utilising software products in the delivery of solution to clients, Delivering routine and common components to clients in small groups rather than on a one-to-one basis; Employing a full time Sales consultant. Organisation and management strategy highlights: Kaitaiki Topu Whenua Trust Section 216 will concentrate on developing a procedures manual covering all areas of operation. Over the next period, the company consultants will delegate more of the administrative aspects of the services provided to support staff. Internal systems will be based on productivity tools that are recommended to clients and all staff will be involved in services delivery by providing "peer support" for client's employees. A new computer network will be installed upgrading existing machines and providing 2 new workstations for anticipated new employees. Both senior consultants will be provided with new laptops. Financial strategy highlights: Kaitaiki Topu Whenua Trust Section 216 will increase its emphasis on fixed price "product based services". The business will also explore pricing terms where clients pay a percentage of the benefit/result achieved through the business development programs. Thus, the business will be able to say to clients your success is our success with conviction. A contingency plan is being developed for raising capital for the possible merging/acquisition with H. Nelson Chartered Accountants. Nelson has an extensive client base and is the oldest established accountant in the region. Indications are that he is close to retirement and will seek to sell his practice some time in the next twelve to eighteen months.

The Actual Plan

Business Objectives
Corporate Objectives (Goals) Short Term Corporate To achieve a sales level of $x To achieve profit level of x% Long Term Corporate To achieve sales in 200B of $x To achieve sales in 200C of $x To achieve sales in 200D of $x Marketing Objectives (Goals)

Retail Segment: Manufacturing Segment: Tourism Hospitality Segment: Construction: Product Sales per month E-Strategy Objectives (Goals) Web Strategy

To increase sales to $x To increase sales to $x To increase sales to $x To increase sales to $x To establish sales of software products of $x

Number of website hits per month: To increase the number from x to x Number of qualified leads sourced through the website: To increase the number from x to xx Conversion rate on qualified online leads: To maintain the conversion rate at x% Intranet Strategy To publish Company Reports on a weekly rather than a monthly basis. To improve compliance by employee of sick leave and other intranet system entries from x% to xx% of staff

Operational Objectives (Goals) To increase staff productivity through better delegation by x%. Financial Objectives (Goals) To reduce average collection time for outstanding invoices. To secure financial backing to fund proposed business development. Other Objectives (Goals) To not exceed a marketing budget of $x To not exceed a payroll budget of $x To not exceed a general overhead budget of $x

Marketing Plan
Marketing Sales Objective by Market Segment #1 Segment #2 Segment #3 Segment Other PROMOTIONAL STRATEGIES Corporate Image Engage corporate design consultant. (Jan 200A) To increase sales to $x

To increase sales from $x to $x To increase sales from $x to $x To increase sales from $x to $x To increase sales from $x to $x

Launch new corporate image. (Mar 200A) Print Advertising Review effectiveness of business directory advertising. (June 200A) Review effectiveness of suburban newspaper advertising. (Jan 200A) Test advertising in magazines that are specifically targeted to defined market segments. (Jan 200A) Lead Generation Program Employ a Sales Consultant. (Feb 200A) Tele-sales scripts written. (Mar 200A) Conduct monthly on-going direct mail campaigns with a response mechanism for lead generation. Sales consultant to qualify leads and make appointments for senior consultants. (Oct 200A) "Centres Of Influence" Program Both Consultants to personally contact at least two local accountants each month. (Commencing Jan 200A) Both Consultants to attend at least two region development and business network meeting each month. (Oct 200A) Both Consultants to visit business brokers. (Commencing Feb 200A) Establish reference site for Building Construction. (June 200A) Establish reference site for Health Care. (June 200A) Establish reference site for Hospitality and Tourism. (June 200A) Public Relations Program Press releases to be initiated each month to various targeted trade journals and magazines about the benefits of business planning. (From Jan 200A) Lost Customers Contact all past customers that have not utilised the services of the business in the previous 12 months to find out why and to see whether there is an opportunity to win back their business. (May 200A) Follow up Enquiries Contact all enquirers monthly and determine if they have purchased from a competitor and, if so, why. (Dec 200A) Existing Customers Follow up all new customers two weeks after they purchase to ensure they are satisfied with the services. (Jul 200A) Send quarterly newsletter to existing customers to keep them informed of business offerings. (Jan 200A)

PRODUCT STRATEGIES Extend range Review existing software productivity tools for suitability to include in direct mail program. (Jan 200B) Warranty Extend money back guarantee on services. (Jan 200A) PRICING STRATEGIES Price Level Maintain price level in all segments at x% higher than competitors to reinforce the quality image. (Jul 200A) Discounts Offer clients an x% discount for payment within 7 days of invoice. (Jul 200A) GENERAL MARKETING STRATEGIES Competitive Profile Keep the competitor profile updated. (Feb 200A) Review progress of BusNet franchise. (Mar 200A) Marketing Information Systems Document with every enquiry How did you hear about us? (Jan 200A) Document with every order How did you hear about us? (Jan 200A) Produce monthly revenue reports by market segment. (From Feb 200A)

Financial Plan
Financial Net Profit Gross Profit Budget Marketing Payroll Management Overheads FINANCIAL STRATEGIES Cash Flow Eliminate cash shortage in the traditional tight periods of December to January (Jun 200A) Next Year's Objectives To achieve forecast net profit of $x. To increase the average gross margin for all products from x% to x%. To not exceed the following expense budgets $x $x $x|

Collection Days Reduce the average collection days from xx days to x days. (Jun 200A) Payment Days Maintain current payment of bills, on average, to x days. (Jun 200A) Expenses Develop and implement new policies on approval and signatories on expenses. (Mar 200C) Leases Pay off the existing lease on capital equipment, thus reducing the monthly financial burden. (Jun 200A) Overdraft Reduce the overdraft from $x to $x (Jun 200A) Wages Pay all wages on a monthly basis instead of weekly. (Jan 200A) New Equipment Organise funding for the $x expenditure on new equipment. (Jan 200A) Rent Negotiate new terms on the premises and reduce existing payments by x% (Aug 200B) Bank Charges Renegotiate with the bank and consolidate some outstanding loans with lower interest rates. (Aug 200B) Financial Net Profit Gross Profit Budget Marketing Payroll Management Overheads FINANCIAL STRATEGIES Next Year's Objectives To achieve forecast net profit of $x. To increase the average gross margin for all products from x% to x%. To not exceed the following expense budgets $x $x $x|

Cash Flow Eliminate cash shortage in the traditional tight periods of December to January (Jun 200A) Collection Days Reduce the average collection days from xx days to x days. (Jun 200A) Payment Days Maintain current payment of bills, on average, to x days. (Jun 200A) Expenses Develop and implement new policies on approval and signatories on expenses. (Mar 200C) Leases Pay off the existing lease on capital equipment, thus reducing the monthly financial burden. (Jun 200A) Overdraft Reduce the overdraft from $x to $x (Jun 200A) Wages Pay all wages on a monthly basis instead of weekly. (Jan 200A) New Equipment Organise funding for the $x expenditure on new equipment. (Jan 200A) Rent Negotiate new terms on the premises and reduce existing payments by x% (Aug 200B) Bank Charges Renegotiate with the bank and consolidate some outstanding loans with lower interest rates. (Aug 200B)

Organisational Plan
ORGANISATIONAL AND MANAGEMENT Organisational & Management Budget Next Year's Objectives To not exceed the payroll budget of $x

Staff

To employ or re-deploy a total of x full-time and part-time staff.

IT SERVICES Review price and capability of new hardware. (Mar 200A) Review and assess productivity software. (May 200A) Purchase new hardware. (June 200A) HUMAN RESOURCE STRATEGIES Organisational Draw an organisational chart. (Aug 200A) Develop an incentive scheme related to job requirements. (Aug 200A) Policies and procedures Develop a policies and procedures manual. (July 200A) Employ or re-deploy staff Employ a sales consultant. (Jul 200A) Training Carry out a training needs analysis. (Jan 200A) Morale Install anonymous staff suggestion and feedback box. (Jan 200A) Organise monthly meetings to follow up issues raised (Jan 200A) Communication & Customer Service Train all staff in providing telephone support to clients employees. (Jan 200A)

Other Company Plans