BSTD

TERM 3
GRADE 11
BUSINESS VENTURES
TOPIC 3: Transforming a business plan into an action plan
1. Transforming a business plan into an action plan
📊 Timelines, Gantt charts, Work Breakdown Structures (WBS) and project
planning are four planning tools that can help entrepreneurs transform
their business plans into action plans.
1.1 Timelines
📊 A timeline indicates tasks to be completed and indicates when each
task has to be completed.
📊 Timelines help to determine the order on which tasks must be
completed.
📊 Business enterprises make use of different sequencing rules to
determine which tasks should be completed first:
First-come-first-served This is when you complete the first task
assigned to you first.
Shortest processing time This is when you complete the task that will
take up the least time first.
Earliest due date This is when you complete the task with the
nearest due date first.
Most valued customer This is when you complete the task for your
most valued customer first.
Most profitable job This is when you complete the most
profitable job first.

1.2 Gantt charts

1.2.1 Definition of a Gantt chart
📌 A Gantt chart is an instrument that helps managers do project
planning and is represented as a type of bar graph.
📌 Gantt charts show project managers:
o The tasks that must be carried out to complete a particular
project
o When each activity must take place
o The time it will take to complete each task
Source: Head for success super study guide
1.2.2 Functions of Gantt charts
📌 Helping project managers to plan projects and to monitor progress of
projects.
📌 Indicating how long it will take to finish a project.
📌 Sequencing the activities that must be carried out.
📌 Indicating the tasks that can be carried out simultaneously.
📌 Helping the project manager to instantly see what activities should
have been completed at a certain point in time.
📌 Helping project managers identify the resources they will need to
complete a project.

1.2.3 Drawing a Gantt chart

📌 Although Gantt charts have many uses, most Gantt charts have one
disadvantage- projects often appear easier and less complicated than
they actually are.
📌 Project managers make use of the following steps to draw Gantt
charts:
o Write down all the activities that must be carried out to
complete a project.
o Decide how much time you will need for each activity.
o Determine which activities need to completed before others
can be started and which activities can be carried out
simultaneously.
o We now draw the axes of the graph – draw an x-axis and y-
axis.
o Write each activity of the projects in order, down the y-axis.
o Time appears on the x-axis – draw a horizontal bar that covers
the appropriate time on the timeline next to each activity.
The left side of the bar must indicate the time the activity
should start, the right side of the bar indicates when the
activity should be completed.
Activities Week
1 2 3 4 Person responsible
Draw up a budget
Organise a venue
Send out invitations
Organise music

Source: Head for success super study guide

 Follow up to determine who will be
attending
Organise a cater
1.3 Work Breakdown Structures (WBS)
📌 As the name indicates, a Work Breakdown Structure (WBS) is a
diagram that breaks down all the tasks that must be performed to
complete a project.
📌 A WBS is a hierarchical structure.
📌 The project is stated at the top of the diagram.
📌 All tasks that must be performed to complete this project are then
grouped or packaged together.
📌 These chunks of work, or “work packages” are then presented as
“branches” of the WBS.
📌 A work package is a chunk of work that cannot be broken down
further. Each work package includes:
o The tasks included in a particular package.
o The costs associated with a particular work package.
o Duration of the particular package.
An example of a WBS for preparing for a test

1.4 Project planning

📌 Project planning is a detailed description of all activities that need to
be completed to execute a project successfully.
📌 People in charge of projects are known as project managers and are
held responsible for the success or failure of projects.
📌 The following steps will help a project manager execute the task at
hand:

Source: Head for success super study guide

Step 1 Determine why the project ✔What is the goal of the project?
must be executed.
Step 2 Determine who will need to ✔ The project manager must choose
be involved. competent, experienced and motivated
team members.
Step 3 Identify and analyse all the ✔ Make a list all the activities that need
activities required to to be completed.
complete the project. ✔ Assign a date of completion to each
activity.
✔ Delegate activities to the right team
members.
✔ Follow up to make sure that the team
stays on track.
Step 4 Identify the resources you are ✔ This step aims to ensure the
going to need. availability of resources you will need to
execute the task.
✔ The project manager needs to
budget for the resources that are
required to complete the project.
Step 5 Identify risks. ✔ Ask yourself what could go wrong
and develop a risk management plan.
Step 6 Execute the project. ✔During this stage, all the different
activities are co-ordinated.
✔ If team members did what they had
to do, the execution of the project will
run smoothly and the enterprise’s
objectives will be achieved.
Step 7 Evaluate and reflect on the ✔ It is important that the project
project. manager writes a report that analyses
the strengths and weaknesses of the way
the project was managed.
📌 A project manager is responsible for the successful execution of a
project.
📌 Other responsibilities of project managers include:
o Assigning the right task to the right person.
o Keeping the team motivated.
o Determining specific and clearly defined goals.
o Not underestimating the project.
o Following up. Never assume people are doing what they are
supposed to do.

Source: Head for success super study guide

 o Being reasonable. The time allocated for the completion of
particular tasks must be sufficient.

1.5 Elements of Project planning

• Planning
- Consists of drawing up plans and reviewing these plans on a regular
basis.
- The project is divided into tasks.
- The tasks are divided into activities.
- These plans will contain the following details:
• quality - the exact quality requirements of the work
• management - what management procedures should be followed
• resource development plan - how to use staff and give them the skills.
• Scheduling
- Identify the activities, determine the resources, and assign people to
do the work. It organizes tasks in such a way that the workforce can
make maximum use of it.
- Risk management identifies the risks and draws up plans to minimize the
impact of potential risks on the project. If a project gets out of control,
managers must be fully informed about how it happened.

2. Tasks that a business should include in its action plan

 Business must be registered
• Suitable premises must be obtained
• Recruitment and appointment of staff
• Financial plan must be implemented
• Promotion plan must be implemented
• Marketing plan must be implemented
• Business plan must be implemented
• Business must open on the planned date

3. Activities / Strategies that must be carried out during the conversion of

a business plan to an action plan:
✏ Management strategy.
- How will the business be organized?
- How will the business be managed and operated?
- What business experience and qualifications does the entrepreneur
have or need?

Source: Head for success super study guide

 - What operational activities must be carried out before the business
can start doing business?
- What pre-operating expenses can be expected?
- What fixed assets will the business need?
- What administrative expenses will have to be incurred?
✏ Marketing strategy
- What is the product?
- How does it compare in terms of quality and price with
competitors' products?
- Where is the business located?
- To whom in the market environment will the business sell its
products?
- Is it possible to estimate how much of the product is currently sold?
- What share of this market can be conquered by the business?
- What is the selling price of the product?
- How much of the product can be sold?
- What marketing steps will be taken to sell the productWhat
marketing strategies are needed to ensure that the sales forecasts
are met?
✏ Production strategy:
- What is the production process?
- What buildings and machinery are needed, and what does it cost?
- What is the useful life of the buildings and machinery?
- How will the maintenance of machinery take place, and are parts
easily available?
- When and where can machinery be obtained?
- How much capacity will be used?
- How will the factory be set up?
- How will the raw materials be obtained? How much will it cost?
- How much labor is required? What skills should they have?
- What will the labour cost be?
- How much money do you need for the promotion and distribution of
the product? How will the workers be motivated?
- What are the expenses of operating the factory?
- What is the production cost per unit?

Source: Head for success super study guide