1. Due date ACCG3008 Business Advisory Report (30%) Instructions Session 1, 2024 Submission: Submit the report (as ONE Word or PDF file) to Turnitin. (Submission link will be provided on iLearn under the report section) Turnitin allows you to replace your submitted file with a new file, as long as you submit the new file before the due date. 2. Overview of report requirements This is an individual assessment related to topics in Module 2 Business Advisory. You are required to create a short but comprehensive three-year business plan for a new business venture. The report should NOT exceed 9 pages (please refer to page 4 for page limit information). The venture should be for-profit but have clear social benefits. Please read the report instructions and the FAQs file carefully. If you have further questions, you can ask your tutor or attend staff consultations. WARNING: Students are NOT permitted to use generative artificial intelligence tools (GAITs, such as ChatGPT), for this assessment. Engaging with GAITS for this assessment constitutes a breach of academic integrity and be reported as plagiarism. Students can use spelling/grammar checkers, e.g., Microsoft spell-check, Grammarly. 3. Structure/presentation of your business plan Your business plan MUST be presented with the following headings and sub-headings. NO need to include a cover sheet in your report (Name and student ID can be inserted in the header of Word document). Go straight to the sections below. 1. Business Plan Pitch 2. Business Opportunity 2.1 Customer need, target market and relevant megatrend(s) 2.2 Opportunity testing plan 3. Sales and Marketing Strategy 3.1 Fundamentals 3.2 Measurement and information 4. Operational Strategy 4.1 Operational structure and suppliers 4.2 Performance measurement/management system and employee motivation 4.3 Utilization of technology 4.3 Risk management 5. Financial Plans 5.1 Capital requirements and funding plan 5.2 P&L Statement and assumptions 5.3 Balance Sheet and assumptions 5.4 Valuation and justification 6. References Page 1 of 6 Each section of your business plan should comprehensively address the requirements outlined in 4. Section requirements below. 4. Section requirements The requirements outlined below are used to evaluate each element/section of your plan, in conjunction with the 'Overall marking criteria' and the marking rubric to determine the grade awarded for each section of your plan. Total raw marks [100 marks] 1. Business Plan Pitch [10 marks] A convincing written pitch (about 2/3 to 1 page) is expected. Here, you should concisely include the key information in each element of your business plan. Marks are awarded based on the extent to which your pitch ‘sells' the business project by presenting a compelling story of the benefits to all/certain stakeholders, as well as the prospect of the project. 2. Business Opportunity [15 marks] 2.1 Customer need, target market and relevant megatrend(s) Business opportunity is clearly articulated with reference to plausible customer needs and target market characteristics. Business opportunity is well justified with reference to ‘megatrends' and external data (e.g., reports by the Australian Bureau of Statistics, industry reports, etc.). To enhance this sub-section, you should explain the social benefits of the enterprise. Note that you can have a megatrend that is different from what is discussed in the lecture, as long as the megatrend is justified and supported by statistics/articles/reports. 2.2 Opportunity testing plan Explain plausible and low-cost ways that your market demand assumptions can be tested. 3. Sales and Marketing Strategy [15 marks] 3.1 Fundamentals Clearly articulate a relevant key Product success factor, Price, Place and Promotion strategy. For Promotion, include a plausible strategy for social media marketing and at least one idea for obtaining free publicity. Also, briefly describe your sales force and how you will incentivize your sales force. 3.2 Measurement and information Explain appropriate measures of success and plausible processes for obtaining and using ongoing market information. 4. Operational Strategy [25 marks] 4.1 Operational structure and suppliers Briefly explain your chosen organizational structure and key positions, and supplier needs. You should outline the main responsibilities of key positions. For supplier needs, you should identify your major supplier(s) (which need to be real/existing businesses), what inputs you need from your key supplier(s), and the prices or price ranges for the required inputs. (This should be discussed as one of the assumptions Page 2 of 6 in your financial plan. Depending on the space of your report, you can discuss the prices of the required inputs here or in section 5 – Financial Plans). 4.2 Performance measurement/management system and employee motivation Detail your performance measurement and management system. Explain how it is related to employee motivation, that is, how the employees will be motivated to give their best performance for your business. 4.3 Utilization of technology Explain the technologies that your business will adopt and utilize. These technologies can be used to enhance operational efficiency, manage risks, attract new customers, improve customer experience, etc. 4.4 Risk management Identify and explain the key risks (at least four different risks) for the business. Undertake an assessment in relation to the levels of likelihood and consequences of the identified risks and discuss your strategies for managing the risks. 5. Financial Plans [30 marks] 5.1 Capital requirements and funding plan Identify and justify plausible initial capital requirements and capital funding plan, and identify any further funding needs in the first three years. At least part of the initial capital should be raised via a crowdsourcing campaign (e.g., Kickstarter or a similar service). You need to detail this and refer to a similar enterprise to yours which has been funded at least partly via crowdsourcing, which includes brief details as to the operations and the amount of capital raised. 5.2 Profit & Loss Statement and assumptions 5.3 Balance Sheet and assumptions 5.2 and 5.3 are important. You need to provide a three-year Profit & Loss (P&L) Statement (about half to 2/3 page) and a three-year Balance Sheet (about half to 2/3 page). For each of the 3 years, estimate figures in the statements every year (not monthly/quarterly for each year) and provide assumptions and explanations for these figures/accounting items (i.e., how are they calculated?). You can use an Excel spreadsheet to construct your financial statements, and embed the financial statements as pictures or screenshots in the Word document. Ensure that both financial statements are presented in the Word document. Hint: You may wish to refer to the Excel templates provided by business.gov.au and customize them for your use. The FAQs file also provides many explanations on how to provide assumptions for financials. https://business.gov.au/finance/accounting/how-to-set-up-a-profit-and-loss-statement https://business.gov.au/finance/accounting/how-to-set-up-a-balance-sheet IMPORTANT: the amounts/figures in the P&L Statement and Balance Sheet have to be explained/justified and consistent with other sections of the business plan to ensure coherence. Below are some reminders: • • You need to provide external real-world source comparisons for items in your funding plan and financial statements, for example, costs of rent, equipment, materials, labour, etc., to the extent that these are possible given the nature of your products/services. The Sales and Marketing Strategy section will detail the type and level of marketing to be conducted, and this cost will feed into the P&L. An assumption is needed to explain how this cost is calculated. Page 3 of 6 • . • The Operational Strategy section will detail what inputs you need from your key supplier(s) and the prices for the required inputs. This cost will feed into the P&L or Balance Sheet, depending on whether the inputs are classified as expenses or assets. An assumption is needed to explain how this cost is calculated. Capital requirements and funding will feed into the Balance Sheet. You can provide a footnote to relate these figures to the Capital Requirements and Funding Plan section. Note that some valid justifications might be very brief, however, depending on the particular business, e.g., Depreciation ("Straight-line over 5 years"); Sales commissions (“5% of sales"), etc. Presenting the financial statements without providing assumptions/justifications will result in a Fail grade for these sub-sections. 5.4 Valuation and justification Include a plausible business valuation at the end of year 3 using one of the valuation methods in Week 12 lecture. This doesn't need to be detailed, but both the choice of valuation method and the assumptions and numerical numbers provided need to be justified. 6. References Include a References List at the end of your business plan. You can select a referencing style (e.g., Harvard, APA, etc.), and ensure that the same style is used consistently throughout the report. Presentation [5 marks] • Readability, visual impact and formatting This refers to the clarity of text and expression, the extent to which the report is free from typographical and grammatical errors, and compliance with formatting requirements in terms of margins, spacing, etc. It is expected that writing is clear, purposeful and considered throughout the report, and the report demonstrates professional presentation and skilful communication. It is also expected that visuals (pictures/diagrams/charts) are appropriately used and presented in the business plan. . Referencing Correct and consistent referencing, including both in-text references and the end-of-text References list, using a chosen referencing tyle. IMPORTANT: You should acknowledge all sources of material in an accepted academic manner. You need to paraphrase/rewrite and comment on others' information and sentiments in your own words. Each statement, source, or information that is not your own must be identified throughout the report, and a reference must be provided. It is not adequate to have a References list only at the end of the report. 5. Page limit • • The report should be a maximum of 9 pages, including financial statements, footnotes, and any pictures or diagrams, but excluding references. To meet the page limit, you should make your report concise, punchy and to the point. • Do NOT use Appendix, which will NOT be marked. • IMPORTANT: Any content beyond the 9-page limit will incur a penalty of 10% per extra page. For example, there will be a deduction of 20% of the total available marks (i.e., deducting 20 raw marks) if the report (excluding the References section) exceeds the page limit by 2 pages. Page 4 of 6 Given the page limit, use the space wisely. You may have charts, pictures and other visuals (which is great), but don't rely on these excessively. These charts/pictures/diagrams will occupy space in your business plan which can otherwise be used to provide more convincing arguments. 6. Formatting requirements • • • • You should use 12 point Times New Roman font, and line spacing should be 1.15 (In 'Line spacing', choose 'Multiple' then enter ‘1.15'). Standard margins should be used (top and bottom 2.54cm; left and right 2.54cm). The only exception to the above is in relation to footnotes, which can be in a smaller font. Footnotes can be used to document the justification for the numbers in your financial plan. Any footnotes should be within the 9 page-limit. Your business plan should be presented with headings and sub-headings. NO need to include a cover sheet in your report (Name and student ID can be inserted in the header of Word document). Your report must NOT embed any scanned material. 7. Deductions/penalties • Formatting requirements A Fail mark is given to the Presentation Section for failing to comply with the formatting requirements detailed in Section 6 above. . Page limit As outlined earlier, any content beyond the 9-page limit will incur a penalty of 10% of the total possible mark per extra page (i.e., 10% × 100 marks). • Late submission Unless an application for Special Consideration has been submitted and approved, a 5% penalty (of the total possible mark) will be applied each day the Business Advisory Report is not submitted, up until the 7th day (including weekends). After the 7th day, a grade of ‘0' will be awarded even if the report is submitted. For example, if your report is 25 hours late in submission and receives a mark of 70 before the late penalty, the final mark of your report will be 60 after a 10% penalty is applied (70 marks – 10% × 100 marks). . Plagiarism You should be familiar with the University's academic honesty and academic integrity policies. You should NOT include copied text from any sources, including internet sources, other students, or your own previous work. There are severe penalties for plagiarism (deliberate copying) and self-plagiarism. Penalties for plagiarism could include a zero mark for the assessment and escalation to the University's Disciplinary Committee. Turnitin and WARNINGS about originality You must submit your ORIGINAL WORK. Turnitin will scan your uploaded report for originality. 8. Special consideration You are given plenty of time to work on your report. Please start working on your report as early as possible. However, if you experience serious and unavoidable difficulties when the business advisory Page 5 of 6