{"id":427214,"date":"2018-09-29T19:05:14","date_gmt":"2018-09-29T19:05:14","guid":{"rendered":"https:\/\/acemystudy.com\/?p=4884"},"modified":"2018-10-24T08:41:08","modified_gmt":"2018-10-24T08:41:08","slug":"complete-activity-1-using-choice-1-jimmon-constructions-completed-financial-plan-addressing-points-a-l-reference-page","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/complete-activity-1-using-choice-1-jimmon-constructions-completed-financial-plan-addressing-points-a-l-reference-page\/","title":{"rendered":"Complete Activity 1 (using choice 1, Jimmon Constructions), completed financial plan addressing points a-l, reference page"},"content":{"rendered":"<p>Complete Activity 1 (using choice 1, Jimmon Constructions), completed financial plan addressing points a-l, reference page<\/p>\n<p>Table of Contents<\/p>\n<p>1<\/p>\n<p>GETTING STARTED\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2<\/p>\n<p>ASSESSMENT SUMMARY\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3<\/p>\n<p>MARKING DISTRIBUTION\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4<\/p>\n<p>CASE STUDY: JIMMON CONSTRUCTIONS\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 6<\/p>\n<p>PROJECT \u2013 FINANCIAL PLAN\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 7<\/p>\n<p>CHECKLIST FOR ASSESSMENT 3\u00a0 9<\/p>\n<p>APPENDIX A: BUSINESS PLAN (EXCERPT)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 10<\/p>\n<p>APPENDIX B: GENERAL REPORT STYLE GUIDE\u00a0\u00a0\u00a0\u00a0\u00a0 14<\/p>\n<p>Case study: Jimmon Constructions<\/p>\n<p>John and Jim are brothers who have worked within the building sector for several years. John is a plumber who has been working for a large plumbing business and Jim is a carpenter who works for a large city residential housing construction company.<\/p>\n<p>They have decided that they want to start their own business which would be the building of residential properties. With their combined experience within the industry they feel now is a great time to branch out on their own.<\/p>\n<p>Before they move forward with their plans, you have agreed to assist them with the research and planning of the new business which they hope to call JIMMON CONSTRUCTIONS. They don\u2019t want to proceed with the business until they are sure that they have covered all legal and risk aspects of starting and maintaining the new business.<\/p>\n<p>They estimate that the business will exceed the existing GST tax threshold of $75,000.00 for the financial year so they will need to register for GST and their actual paid staffing levels will warrant the need to declare and make PAYG payments as well.<\/p>\n<p>The business will specialise in residential construction and the brothers have enlisted your help to establish all aspects of setting up the business as well as identifying and addressing any potential risks.<\/p>\n<p>You have already been assisting in this area and have:<\/p>\n<ul>\n<li>established the business set-up as a partnership<\/li>\n<li>obtained an ABN and ACN<\/li>\n<li>set up GST registration as the business is expected to exceed an income of $75,000.00 for the financial year<\/li>\n<li>established specific licenses and permits which a residential construction company must have in order to operate legally<\/li>\n<li>locate the building code of practice which must be followed<\/li>\n<\/ul>\n<p>Project \u2013 Financial Plan<\/p>\n<p>The learner is required to complete all the set activities and tasks which are provided in the following assessments.<\/p>\n<p>The assessor must confirm that all the required evidence for the assessments have been submitted and a checklist is provided at the conclusion of the marking guide which can be used to confirm work submitted.<\/p>\n<p>All activities have benchmarked responses provided to ensure consistency in marking by the assessor for each learner\u2019s submitted assessments.<\/p>\n<p>Case study Jimmon Constructions<\/p>\n<p>Based on the information you have been provided in the Appendices, you are required to develop a financial plan for Jim and John. Your financial plan will cover the first six months and will be reviewed at that point.<\/p>\n<p>Using Appendix A: Business Plan, clarify the products, target market and the estimated profit set by Jim and John in the Business Plan.<\/p>\n<p>Whilst there is already a Hi-Lux vehicle which is included in the assets, the business wishes to purchase a second Hi-Lux on lease or purchase, based on your research and recommendations.<\/p>\n<p>Your report must be developed in a professional style which is appropriate for this type of document. A guide on report writing has been provided as Appendix B: General Report Style Guide or you may research and choose a similar style you feel is appropriate.<\/p>\n<p>When developing your plan, you must address all the points listed below for the six-month period:<\/p>\n<p>You will need to complete the following and upload<\/p>\n<ol>\n<li>a) Identify and briefly explain the essential business financial requirements for JIMMON CONSTRUCTIONS. This needs to include both start-up and ongoing costs. (400 words)<\/li>\n<li>b) What are the profit targets for the business during this period?<\/li>\n<li>c) Identify three different asset management strategies and explain the most relevant strategy for the business. (300 words)<\/li>\n<li>d) Identify four different sources of finance which could be used to lease or purchase the second vehicle and provide an overview of each source you have chosen. (300 words)<\/li>\n<li>e) Select the most appropriate finance option and explain why you have chosen this method of finance for the vehicle purchase including costs associated with obtaining this source of finance at optimal terms. (300 words)<\/li>\n<li>f) Identify and explain two key strategies for obtaining the vehicle finance. (300 words)<\/li>\n<li>g) Identify and list all capital investment requirements which will be needed to establish the business over and above what has already been invested by the partners for the six-month period. (200 words)<\/li>\n<li>h) Identify and explain the working capital needed for the six-month period of the plan you are developing. (150 words)<\/li>\n<li>i) Identify three different cash flow projections which could be used. Select your preferred cash flow projection(s) and explain why you have chosen it\/them. (300 words)<\/li>\n<li>j) Provide a clear and complete list of appropriate budget targets for JIMMON CONSTRUCTIONS for the six-month period which would meet the profit estimation in the business plan for this period.<\/li>\n<li>k) List four key legislative and financial requirements which must be met. Explain your role in ensuring regulatory responsibilities are upheld and maintained.<\/li>\n<li>l) Provide a summary of the strategies which will be implemented to monitor the financial performance of JIMMON CONSTRUCTIONS during this six-month period.<\/li>\n<\/ol>\n<p>Checklist for Assessment 3<\/p>\n<p>The learner will upload each assessment as a single file to the Open Space portal:<\/p>\n<p>Activity 1:<\/p>\n<p>Completed Financial plan \u2013 Addressing points (a) \u2013 (l)\u00a0\u00a0\u00a0\u00a0 0<\/p>\n<p>Completed Reference page \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0<\/p>\n<p>Appendix A: Business Plan (excerpt)<\/p>\n<p>Business plan \u2013 JIMMON CONSTRUCTIONS<\/p>\n<p>Mission<\/p>\n<p>JIMMON CONSTRUCTIONS provides a quality built dwelling which has been manufactured using the highest quality products and is constructed using skilled and qualified tradesmen. Our mission is to:<\/p>\n<ul>\n<li>provide exceptional customer service<\/li>\n<li>meet all build times within the scheduled and agreed timeframes<\/li>\n<li>only use highly skilled and qualified trades people for all areas of construction<\/li>\n<li>deliver a highly finished and quality product to the customer which meets all of their requirements.<\/li>\n<\/ul>\n<p>Vision<\/p>\n<p>Within five years, JIMMON CONSTRUCTIONS will have established itself as a premier provider of residential construction providing affordable and quality finished homes.<\/p>\n<p>Values<\/p>\n<p>Our values require that we:<\/p>\n<ul>\n<li>focus on the customer<\/li>\n<li>actively encourage excellence, innovation and continuous improvement<\/li>\n<li>work collaboratively and consultatively with integrity, professionalism and teamwork<\/li>\n<li>recognise the diversity and expertise of JIMMON CONSTRUCTIONS employees.<\/li>\n<\/ul>\n<p>Strategic directions<\/p>\n<p>The strategic context in which JIMMON CONSTRUCTIONS will achieve its mission and vision is through:<\/p>\n<ul>\n<li>engaging with customers using excellent customer service to increase sales volume<\/li>\n<li>reducing expenditure and achieving financial control over expenses<\/li>\n<li>supporting innovative thinking, customer service, management and leadership skills through training<\/li>\n<li>creating a high-performing organisation.<\/li>\n<\/ul>\n<p>The finances<\/p>\n<p>On start-up, both partners contributed $150,000 to the business to cover initial costs and ensure cash flow. A loan was also taken for $200,000. JIMMON CONSTRUCTIONS anticipates a profit for the 2014\/15 financial year of approximately $600,000.<\/p>\n<p>The expected profit on average for each individual build is 20% of the total build costs.<\/p>\n<p>Products and Services<\/p>\n<p>Product\/Service\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Description\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Price $<\/p>\n<p>Domestic Dwelling \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Single brick, single storey dwelling with either single or double garage. Includes fixtures and fittings within set price range and includes driveway and fencing. Basic price range for tiling and additions \u2013 client to pay additional costs for any variations.<\/p>\n<p>All council fees and permits are included in sales price. \u00a0 Range from $230,000 to $350,000<\/p>\n<p>Domestic Dwelling\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Single brick, double storey dwelling with either single or double garage. Includes fixtures and fittings within set price range and includes driveway and fencing. Basic price range for tiling and additions \u2013 client to pay additional costs for any variations.<\/p>\n<p>All council fees and permits are included in sales price.\u00a0\u00a0 Range from $430,000 to $550,000<\/p>\n<p>Renovations and extensions\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 All clients are provided quotes based on their requested improvements.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 TBA as each project is individually costed<\/p>\n<p>Note: All raw materials such as timber costs, frames and trusses are subject to variable cost changes due to market prices. These increases will be factored into the pricing schedule every six months.<\/p>\n<p>Marketing<\/p>\n<p>JIMMON CONSTRUCTIONS is a competitively priced, construction business. JIMMON CONSTRUCTIONS consumers who appreciate high-quality housing will recognise the value and unique offerings of JIMMON CONSTRUCTIONS.<\/p>\n<p>Ethics<\/p>\n<p>Fair trade practices are applied. JIMMON CONSTRUCTIONS is environmentally responsible and uses recycled products where possible. Social and environmental responsibility is a key differentiator of JIMMON CONSTRUCTIONS\u2019s offering. This includes the use of solar power for all property construction.<\/p>\n<p>Selling position<\/p>\n<p>Uniquely positioned for its target market. Offering combination of quality, service, and environmental sustainability and priced well within a viable market for both first home buyers and investors.<\/p>\n<p>Anticipated demand<\/p>\n<p>Anticipates 8-10 dwellings in the first financial year combining both single and double storey dwellings which will total an estimated gross sales figure of $2,000,000.00<\/p>\n<p>Pricing strategy<\/p>\n<p>Pricing is intended to position JIMMON CONSTRUCTIONS as mid-range in comparison to its competitors to ensure that it provides value as well as quality. This pricing strategy is intended to both increase revenue and underpin JIMMON CONSTRUCTIONS\u2019s message of higher quality.<\/p>\n<p>Growth potential<\/p>\n<p>Research indicates a trend toward a more sophisticated home buyer. Also, raw growth in suburban population demographics points toward both a growing market and increased potential to attract this market with its unique and compelling value proposition. Lower interest rates and the release of future land parcels in suburban development areas highlights a continued growth in building and construction.<\/p>\n<p>Operations<\/p>\n<p>All suppliers are sourced through local businesses where possible and the use of a select team of tradesmen will be utilised for all construction to the standards which are set by JIMMON CONSTRUCTIONS.<\/p>\n<p>It is anticipated that the profit margin will be set at 20% of the total sales for the financial year and will be set against each individual build to ascertain any costs which have exceeded those within the budgeted forecasts for future planning.<\/p>\n<p>There is one office administrator on a salary of $50,000.00 per annum.<\/p>\n<p>All sales and job costings are to be dealt with by John and all on-site work will be managed by Jim to minimise costs initially for the first 12 months of operations. This will be reviewed after that time.<\/p>\n<p>Personal drawings are to be taken by the business owners monthly with a minimum of $2,000.00 each per month and will be reviewed regularly based on cash projections and profit margins.<\/p>\n<p>Communication channels<\/p>\n<p>Customers are encouraged to contact JIMMON CONSTRUCTIONS through email, Facebook, phone and SMS. Access to website and contact numbers. A sales office and storage facility is to be set up to cater for the sales and administration of JIMMON CONSTRUCTIONS.<\/p>\n<p>Sustainability<\/p>\n<p>Key component of the marketing strategy is to communicate our commitment to the environment and community.<\/p>\n<p>Assets<\/p>\n<p>The following assets are already owned by JIMMON CONSTRUCTIONS:<\/p>\n<p>Vehicles: One Hi LUX Ute valued at $50,000.00<\/p>\n<p>Equipment &#8211; Construction: all construction tools needed including drills, saws, generators, manual tools (NOTE: all sub-contract tradespeople are to provide their own equipment to site)<\/p>\n<p>Value: $40,000.00<\/p>\n<p>Equipment \u2013 Office: All office furniture including desks, chairs, filing cabinets, computers, telephones etc.<\/p>\n<p>Value: $20,000.00<\/p>\n<p>Sub-contractors<\/p>\n<p>Sub-contractor costs will vary depending on the industry such as plumbers, electricians and painters but the average per hour to be used in determining financial costings will average at $80.00\/hour.<\/p>\n<p>General<\/p>\n<p>Premises are currently being leased for $1800.00 per calendar month.<\/p>\n<p>Insurances for property, public liability and indemnity is $3200.00 per year<\/p>\n<p>Competitors<\/p>\n<p>There are several large competitors in the market including Metricon, Coral and Addenbrook homes. These competitors are focused on high volume sales whilst JIMMON CONSTRUCTIONS is a boutique style construction company focusing on individual design builds.<\/p>\n<p>JIMMON CONSTRUCTIONS is competitively priced to fit within the larger building companies.<\/p>\n<p>General costs for each construction<\/p>\n<p>Stock levels are minimal as materials required are ordered and purchased per job directly from the suppliers. Supplies will include:<\/p>\n<p>Electrical supplies \u2013 wiring, switches, cabling, and fuses. Approx. $6,000<\/p>\n<p>Cabinetry \u2013 kitchen, laundry and bathroom cabinetry. Approx. $20,000<\/p>\n<p>Plumbing supplies \u2013 all pipes, tapware, vanities, sinks etc. Approx. $10,000<\/p>\n<p>Painting costs \u2013 15,000<\/p>\n<p>Tiling and floor coverings \u2013 Approx. $10,000<\/p>\n<p>Frames and trusses \u2013 SFA Truss Company. Approx. $4,000<\/p>\n<p>Bricks and tiles \u2013 selected from the range provided and supplied by Mills Bricks $ 10,000<\/p>\n<p>Concrete pour for slab and driveway \u2013 locally sourced supplier. Approx. cost $15,000 per build<\/p>\n<p>Safety Fencing \u2013 to be sourced in local area and costed. Approx. $1,600<\/p>\n<p>Freight costs \u2013 $7,000<\/p>\n<p>Site costs \u2013 survey the site and establish the site for construction. Approx. $3,000<\/p>\n<p>Appendix B: General Report Style Guide<\/p>\n<p>When you write a report, you will want to make it easy to read and understand. Here are some guidelines to apply to any report you write.<\/p>\n<ul>\n<li>When writing the format, first write the body of the report and then fill in the details. Make sure you use a font which is clear to read and commonly used like Arial or Times New Roman. Also, make sure you use bold, italics and underline to make the headings and sub-headings stand out.<\/li>\n<\/ul>\n<ul>\n<li>Use lists: Whenever you can, help your reader by using lists. Give your lists visual emphasis by bullets.<\/li>\n<\/ul>\n<ul>\n<li>Use headings and subheadings: Headings and subheadings guide your reader through the organisation of the report. List them in the Table of Contents. Each section should have a clear topic statement to let the reader know what will be included in the section.<\/li>\n<\/ul>\n<ul>\n<li>Title Section: In a short report, this could be the first page bearing the title of the report, author name and date. In the case of long reports, include the Table of Contents, Terms of References and so on.<\/li>\n<\/ul>\n<ul>\n<li>Summary\/Introduction: As the name suggests, this is the summary of the whole report. This is the section that most of the senior personnel, who do not have enough time to go through the whole report, will read through. Hence, give clear and precise information about the problem\/aspect of business that the report is analysing.<\/li>\n<\/ul>\n<ul>\n<li>Main Body: This is the heart of the report. Arrange all the information in order of priority so that this section follows a logical sequence. Divide this section further into subsections. Lend greater order to the Main Body using sub-titles within each subsection. A paragraph about the relevance of the findings of the report can also be included in this section.<\/li>\n<\/ul>\n<ul>\n<li>Conclusion: Present logical conclusions for the topic investigated in the report. One can also suggest an option for the way forward. In case discussion has not been included in the Main Body, include it in the conclusion. Otherwise, keep this section small.<\/li>\n<li>Recommendations: Since you have worked on the report, no-one would have a better understanding of the topic than you. There may be a few solutions or actions that you think would be effective in dealing with the topic investigated in the report. Include those solutions in this section. List them in bulleted and numbered lists for easier comprehension.<\/li>\n<\/ul>\n<ul>\n<li>Appendix: Although very few people read the Appendix, the information in this section gives support to the arguments used in the report. It is the Appendix where the author includes all the sources and research information in detail.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Complete Activity 1 (using choice 1, Jimmon Constructions), completed financial plan addressing points a-l, reference page Table of Contents 1 GETTING STARTED\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2 ASSESSMENT SUMMARY\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3 MARKING DISTRIBUTION\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4 CASE STUDY: JIMMON CONSTRUCTIONS\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 6 PROJECT \u2013 FINANCIAL PLAN\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 7 CHECKLIST <a href=\"https:\/\/www.benedictsol.com\/blogs\/complete-activity-1-using-choice-1-jimmon-constructions-completed-financial-plan-addressing-points-a-l-reference-page\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-427214","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/427214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=427214"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/427214\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=427214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=427214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=427214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}