Project Name Business Plan Template

Business Plan Template

Project Name

Company Name
Division

Version x.0

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Date

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Project Name Business Plan Template

Table of Contents

1. Executive Summary................................................................................................... .................3

2. Introduction.............................................................................................................. ...................3
3. Rationale.............................................................................................................................. .......4
4. Situation Analysis.............................................................................................................. ..........4
5. Proposed solution............................................................................................... ......................5
6. Training Plan................................................................................................................. ..............6
7. Financial Data............................................................................................................ ...............7
Cost of training...............................................................................................................7
8. Return on Training Investment..................................................................................... ...............7
5. Intangible and other potential benefits................................................................. .......................8
6. Control Mechanisms............................................................................................. ......................9

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1. Executive Summary
Insert a summary of what you are proposing.
Highlight the key argument for your proposal such as:
• how did it come about?
• why select this solution?
• what are the benefits?

Example:
ABC’s operational review highlighted that cleaning costs per square meter is 30 per cent more
expensive than the industry average.

To reduce these costs to an acceptable level, we propose to run a series of training courses that
will streamline work processes and increase the usage of recently introduced new technologies.

The estimated ROI for the proposed training investment of $400,000 to train 1,000 staff in the
cleaning department is 242 per cent. This will decrease our cost of cleaning per square meter
from the current $56 to $42 over a period of 2 years, representing a total saving of $1,368,225.

2. Introduction
Give a short background to the case.
What is the problem you are trying to solve?

Example:
In an effort to cut ABC’s operational costs, work practices have been reviewed for all of ABC’s
departments.

This review identified that the cost of cleaning at ABC is currently $56 per m2 per annum, well
above the industry benchmark of $42.50 per m2 per annum.

In order to bring down this cost to the benchmark over the next two years, we propose to improve
the staff rostering, introduce work standards and practices and set-up a system of performance
related pay.

To support these changes, we also plan to develop and deliver a series of training modules in
management and operational practices.

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3. Rationale
Why is your proposed solution is the best?
How is it going to solve the business problem?

Example:
The development of accredited training modules will allow ABC to develop the skills of existing
staff and enable better quality control of our services.

The cost of implementing the required training is 10% cheaper than outsourcing the cleaning to a
contractor.

The training program is also expected to increase staff productivity, improve staff morale and
reduce staff turnover.

By introducing new work standards and practices, ABC will be able to implement a performance-
based pay system that will motivate the cleaning staff and train the managers to effectively
monitor the change management process that is required.

4. Situation Analysis
Give a detail of the current situation.
How bad is the problem?
What are the key issues?

Example:
Currently, our cost of cleaning is inflated by the following factors:

• frequent period of idle time for staff due to overlapping of shifts and lack of adjustment in
rostering to reflect peaks and troughs in a typical work day
• lack of a standard process for cleaning tasks
• limited take-up on new technologies
• low levels of knowledge and therefore commitment to organisational goals
• low level of staff morale
• high absenteeism
• limited understanding by staff of who their client is
• historically based budget allocation.

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5. Proposed solution
Give a detailed solution addressing all the points raised in the situation analysis.

Example:
The identified operational requirements are:

• The introduction of work standards for the cleaning department stating

o which areas are to be cleaned
o the number of times each type of area is to be vacuumed, mopped, etc
o the chemicals to be used for each cleaning task.

• The introduction of new computerized work model to enable a more flexible rostering
system.

The identified training requirements are:

• Management training on
o organisational goals
o financial management
o work practices/new work load model
o human resources
o change management.

• Operational training on
o organisational/goals
o need for and cost of specific cleaning services
o corporate standards for cleaning
o better matching of skills to tasks
o occupational health and safety
o new technology.

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6. Training Plan
State the details of the proposed training:
• the format of the training, e.g. workshops, on or off site training
• who will attend
• number of people who will attend
• the core competencies and skills that will be achieved

Example:
A series of workshop will be implemented for 1000 employees in the cleaning department. The
principal targets will be support services staff and supervisors, but will also include staff from
related areas including nursing and administrative staff in order to promote a shared
understanding of the changes being implemented in our cleaning department.

The training modules will cover the following key learning areas:

• managing people
• managing change
• technical skills
• business principles.

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7. Financial Data
State all costs and financial benefits and give their $ values. Examples are:

• Cost savings
• Cost of training including training fee, training material, time off work for staff who attend,
opportunity cost of loss sales
• Increased productivity
• Reduction in staff turnover

Example:
Cost saving

Reaching the target cost of $42.0 per m2 per annum over a two year period will achieve savings
of $1,368,225, calculated as follows:

Current costs x total area - Target cost x total area =

$56/m2/a x 101,350 m2 - $42.50/m2/a x 101,350 m2 =

$5,675,600 - $4,307,375 =

$1.368,225 savings over two years

Cost of training

Workshops $220,000 +
200 Assessors $ 80,000
Training materials $100,000

Total training cost $400,000

8. Return on Training Investment

Calculate the estimated return on investment for the proposed training.
Costs and benefits should have been detailed in the previous section.
You may want to mention the $ value as well as the % of return if you haven’t done so in the
previous section.
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Return on Investment = ($Benefits - $Costs) / $Costs x 100 = X%

(Use the ROI calculator on http://www.training.com.au to help you.)

Example:
The return on training investment was calculated as follows:

Return on Investment = ($Benefit - $Cost) / $Cost x 100

= (1,368,225 - $400,000/$400,000 X 100

= 242%

5. Intangible and other potential benefits

List other benefits that are hard to measure in $ such as:
• higher staff morale
• greater workforce flexibility
• increased customer satisfaction
• ease of recruitment (perception by applicant that the company is an employer of choice)
• increase in product and service quality.

Example:
Further benefits if training which are harder to evaluate financially include:

• higher staff morale

• greater workforce flexibility (multi-skilling)
• increased customer satisfaction
• ease of recruitment (perception by applicant that the company is an employer of choice)
• increase in product and service quality.

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6. Control Mechanisms
Define how you will verify your estimated ROI to be able to calculate the real benefit of training.
Take a measurement prior to training and the same measurement again after implementation of
the training.
Note: It is better to take the measurements over a period of time rather than at a point in time. For
example, measure the cost of production for the year before training and the cost of production
for the year after training. This will enable positive impact of training to become very clear.

Example:
The following variables will be measured for the 12 months prior to the training delivery and will
be measured on a yearly basis post training delivery:

• cost of cleaning per square meter

• staff turn-over rate
• absenteeism levels
• 360 degree feedback survey for supervisors.

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