“Far Horizon” has been trading successfully for 15 years and is now poised for expansion. Starting out as a
supplier to the marine leisure market, the company subsequently began the manufacture of its own sailing
dinghies, initially for novices.
Imagine you are the Managing Director of this small manufacturing business. Encouraged by the company’s
success in building sailing dinghies over the past eight years, you decide to broaden your customer base to
include the more experienced yachtsman. Clearly you have worked for some time in the marine leisure
industry, acquiring a detailed knowledge of the UK inshore yacht market, and now you are looking at the
somewhat different market of medium sized yachts. Deepwater sailing is not an area with which you are so
Your business enjoys a strong financial base and a stable and loyal workforce. Recent news that the last
quarter saw a 1% growth in GDP gives the encouragement you needed to embark on a bold new venture. It has
always been your ambition to grow your company and you have felt that a way of achieving that is to
designand construct a 2 to 4 berth sea-going sailing yacht, offering a much higher sales value than your
current products and with a much greater level of contribution. You believe this to be the best way to
improve the long term profitability of your business. Before proceeding any further you draw up a business
plan to convince yourself, and any investors whose support you may need, that your passion is not misplaced,
that there really is a sound business casefor your proposed expansion.
Your business plan must consider the following:
• marketing plan, including market analysis and strategies
• annual profit and loss accounts and balance sheets for the previous financial year
• detailed costs and break-even analysis for new yacht project
• SWOT analysis
• Gantt chart – using Microsoft Project
• cash flow forecast – using Excel
You are to provide a logically compiled and integrated business plan based on the above points and the
issues discussed during the course.
Make certain assumptions about the current size of your business, typically as shown below:
• a current turnover of £1,250,000
• employs fifteen people full time, and two people part time
• the mould costs £330,000
• there is a marked seasonal bias to your sales
You may wish to develop your own name/brand identity.
• additional skilled workers
• a mould for the hull, at a significant cost
• further additional staff in the future as production of the new yacht commences
• targeted advertising
To increase the likelihood of success you aim to ensure that prudent assumptions are made about costs and
projected sales. Show how you have done this. Your answer should clearly set out how your business growth
is expected to happen, in terms of: resources required; projected sales; and timescales.