Business
Development Report

This Report will provide you with a pathway to increase your business success. The first step in the
process is to know the Turnover and Activity you require to maintain your personal income and pay
business expenses, we refer to this as your Present Breakeven or maintain the Status Quo.

The next step is to set new personal income and company profit goals for the next 12 months, and then establish the Turnover and Activity required to achieve the desired goals.

Note: The term ‘Activity’ means the activity steps required to achievethe Turnover (revenue) goal, this includes the number of sales required, the number of Quotes/Proposals submitted, and the number of Leads required (people interested in your product or service).

For many the hardest process in developing a Business Plan is goal setting and establishing the
Activity required to achieve the desired outcomes, you may have heard the saying ‘Businesses do not plan
to fail, they fail to plan’.

Once you have established your Turnover and Activity goals the next step in the planning phase is the
‘how to’, which is how you are going to achieve those goals.

In this report the ‘how to’ is referred to as your ‘Action Plan’.

This report will list your goals for the next 12 months and the Activity required to achieve those goals.This is your recipe for success.

We have divided the report into 4 sections as follows;

1. Present Breakeven Summary.
2. “Next Year’s Goal”.
3. A Summary of Next Year’s Goals.
4. A Pathway to Achieve Your Goals.

Section 1 – Present Breakeven Summary

The first step in developing your Business Plan for the next 12 months is to establish the Turnover
(total sales/revenue) required for the business to Breakeven. The Present Breakeven, for our purposes,
is based on your previous year’s business performance, it will include Owner Income and it will also
include business Operating Profit (as stated on your end of year Profit and Loss Statement), for an
established business it is maintaining the status quo from last year to the next year.

Definition: In this report when I refer to the term Present Breakeven,
it is the amount of Turnover (revenue) required for the business to Breakeven based on your ‘present’
business activities, that is making no changes to Turnover Drivers, or in other words, business as
usual.

The Present Breakeven Analysis is based on the following information:

• You pay the following Franchise Free on turnover …
  5%
• Your Average Gross Profit is … 58%
• Annual Expenses – Includes a Flat Franchise fee, if any (excluding Owners Income and a Percentage
  Franchise Fee, if any) …
  $731,800

Note: Annual Expenses include an annual inflation adjustment of … 5%

• Owners combined annual income … $300,000
• Last year‘s Operating Profit …
  $100,000
• Months of selling activity per year … 11

Explanation: Months of selling activity. Many business operations do not actively sell every month of the year, for example some may close over the Christmas (holiday) period, or a salesperson may take annual leave, and as a result, selling activity may only take place over 11 months (or less) of the year.

Note: Monthly Turnover is for 11 months of the year.

Note: Activity (sales, leads and Quotes/Proposal) numbers are for 11 selling months of the year.

• Total Gross Profit required to achieve Financial Goal including Franchise Fees
  $1,238,573

Note: Annual Expenses are the expenses to run your business, it does not include any Cost of Sale items, which are attributed to the direct cost of selling a product or service, not the running of a business.

To Achieve Present Breakeven

• Annual Turnover required to achieve Present Breakeven =
  $2,135,471
• Franchise Fees included =
  $107,773
• Monthly Turnover = $194,134

Congratulations, you now know the annual and monthly Turnover required to breakeven (or
maintain the status quo). The next step is to discover the activity required to achieve your revenue
target (Turnover).

The Following ‘Activity’ is required to achieve Present Breakeven

Activity is the business functions from which income (revenue) is the result, and in our Business Plan we
want to know the number of Sales required (based on your Average Sale Value), the number of Leads
(people interested in your product or service) and the number of Quotes/Proposals submitted to obtain
sales. By knowing this data, you can them plan your Activity to achieve your Sales and Turnover goals.

The Activity numbers below are based on the following:

You have a Sales Conversion Rate from Quotes/Proposals submitted of
30.0%, and you have an Average Sale Value of
$130

The Activity required is provided below:

• You require the following (average) number of sales per month =