The Practical Mini-MBA

Why I built this

Why businesses fail before they start

Some business-planning advice tells you the wrong thing to do first. It starts with a mission statement or a logo. That’s backwards - a logo won’t tell you whether the idea makes money.

The research is blunt: one of the most reliable predictors of early failure is the absence of a written plan and a clear picture of the financials. The businesses that survive their first two years tend to be the ones where the owner could answer three questions on day one:

That’s it. Get those three things right and the plan pretty much writes itself - the rest is structure and presentation.

The good news

• You don’t need a business degree - you need a process.
• You don’t need to be perfect - you need to be realistic.
• You don’t need expensive software - a table and a calculator (or SSBT, which does it for you) will do.

How to use the rest of this guide

1. Part 3 - the 9 sections of a bank-ready business plan (your narrative).
2. Part 4 - the Money Chapter (the numbers that matter).
3. Part 5 - watch Bob the baker do the whole thing with real numbers.
4. Part 6 - your 100-day action plan.
5. Part 7 - blank worksheets: your turn.

The 9 sections of a bank-ready business plan

A bank-ready business plan is a structured story. Lenders and the Self-Employment Assistance assessors don’t want creativity - they want to tick boxes in a known order. Here’s the order that works, distilled to its essence.

1  Executive Summary

Answer these and you’ve written it:

• 1.1 The business - name, owner, structure, and what you actually do.
• 1.2 Goals - a vision, plus SMART goals at 3, 6, 9, 12 and 24 months. And personal goals - why you’re doing this.
• 1.3 Target market - who buys, and roughly how big the market is.
• 1.4 Competitive advantage - why you’re different (not “better” - different).
• 1.5 Financial projection - your sales, profit and cash position at a glance (auto-filled from the Financial Plan in SSBT).

2  Business Concept

• 2.1 Description - the plain-English “here’s what we do”.
• 2.2 Legal & admin - regulations that apply to you (use ablis.business.gov.au), insurances needed, business name & registration status.
• 2.3 Legal structure - sole trader, partnership or company; ABN, GST and your tax obligations.
• 2.4 Stakeholders - who has an interest in your success (lender, family, suppliers, DSO).

3  Market Research

• 3.1 Market size & trends - total potential market & the seasonal patterns that move it.
• 3.2 SWOT - Strengths, Weaknesses, Opportunities, Threats. Be honest.
• 3.3 Competition - look at at least 3 competitors: their prices, strengths and weaknesses.
• 3.4 Competitive advantage - the gap between them and you, in writing.

4  Marketing Plan

Your overall strategy, then the channels (website, social, referrals, local), then - the bit everyone forgets - how you’ll measure it. A marketing plan without numbers is a wish.

5  Operations Plan

How an order actually flows through your business: from enquiry to delivery to the bookwork. Outline processes, the equipment you need, who you need (even if it’s just you), advisors/specialists, a weekly work schedule, WHS duties and a simple risk register.

6  Financial Plan

The heart of it - covered in depth in Part 4. Plus the narrative bits lenders want: commentary on what your cash flow and P&L reveal, which month is tightest, how you’ll access funding if needed, your bookkeeping system and your credit policy.

7  Action Plan

A table of what / who / when, covering the next 100 days. “Complete business plan” isn’t an action - “Register ABN by 14 Feb” is. (Part 6 has the starter template.)

8  Supporting Documentation

Financial tables, business name registration, your resume, insurance certificates of currency, qualifications, licences, lease/partnership agreement if relevant, and for a PTY LTD: registration, constitution, ASIC extract, Director ID.

9  Eligibility Declaration (Self-Employment Assistance)

Answer the program’s criteria as a formal Yes/No declaration - that your business is lawful, you’ll hold a controlling interest, it operates in Australia, you’re not bankrupt, it’s adequately insured (incl. public liability), and you’ll work the required hours per week.

The numbers that keep you alive

This is the chapter most people avoid - so doing it properly instantly puts you ahead. There are six building blocks. Learn them in order and the numbers stop being scary.

Money Building Block 1  ·  Products & pricing

List every product or service with its unit price and what it costs to provide. “Cost” here means cost of goods sold (COGS): materials, consumables, labour and other direct cost per unit. Your margin is the difference.

Money Building Block 2  ·  Sales projection

Put real numbers on “how many can I sell?” - per product, per month, for two years. Just your best realistic guess, written down. Monthly totals become your revenue line.

Money Building Block 3  ·  Operating costs

Your fixed monthly overheads - what it costs to keep the doors open regardless of sales. Split into GST-claimable (most business expenses) and non-GST (bank charges, wages, super). Common categories: accountancy, marketing, electricity, insurance, internet, rent/lease, telephone, travel, workers comp.

Money Building Block 4  ·  Personal budget & drawdowns

The way you feed yourself while the business grows. List your household income (benefits, partner income, part-time work) and your living expenses (house, food, transport, phone, medical, recreation, debt payments). Hold the expenses the government benefit listed, the gap is the drawings your business must pay you.

Money Building Block 5  ·  Startup costs & loans

Everything you must buy before day one (equipment, fit-out, initial stock, signage) and what you already own. If you’re borrowing, list the loan: amount, term and rate - the repayment becomes a monthly cost.

Money Building Block 6  ·  The three outputs

• Break-even - the sales level where income covers all costs (including your drawings). Below it, you’re subsidising the business; above it, you’re building.
• Cash flow - cash in minus cash out, month by month. It tracks when money actually lands, including GST timing (see the note below).
• Profit & Loss - the summary: Sales − COGS = Gross Profit; Gross Profit − Overheads − Loan Interest = Net Profit.
• Viability checklist - 5 yes/no gates: target profit met? reserves positive? no negative bank months? insurance included? break-even reached?

Bob the baker, done properly

Meet Bob. He’s left his supermarket job to start Bob’s Bakery - artisan sourdough and celebration cakes for families in his suburb. He’s eligible for the Self-Employment Assistance program and wants a plan the assessor will approve. Let’s run his numbers.

Step 1 - His products & prices

His margin is healthy because he makes the product himself. Notice the subscription - it repeats, so it compounds over the year.

Step 2 - His sales projection (Year 1)

Sales ramp because Bob builds word-of-mouth and the subscription base grows monthly (subs count up to 75 by December). Year 1 revenue lands near $72,000.

Step 3 - His operating costs (monthly)

Monthly overhead total ≈ $1,430. Cost of goods sold comes automatically from the product table. His loan repayment adds on top (below).

Step 4 - His personal budget & drawings

Step 5 - Startup costs & loan

Loan: $7,000 over 24 months @ 9% → repayment ≈ $320 / month. That’s a fixed cost from month 1.

Step 6 - The three outputs

Your 100-day action plan

Plans don’t start businesses - completed actions do. Break the next 100 days into a simple table: the task, the owner, and an exact date. Here’s a starter rhythm. (SSBT’s Business Plan app has this as a fillable table, and you can turn each line into a To Do.)

Blank worksheets: your numbers

Fill these in for your business. Don’t aim for perfect - aim for honest. You’ll refine them at least three times. (SSBT’s Financial Plan does all this maths for you - start free)