Before You Begin Remove slide before presenting In

Before You Begin. . . Remove slide before presenting In order to develop a business plan, you need to have an idea for a business. Section 6. 2, “What Is a Business Opportunity, ” (pages 145 -160 in your textbook) helps you develop and evaluate an idea for your own business. When you see text in brackets [like this], fill in your own writing or data. Delete the brackets in the slides you present. Read Notes at bottom before you work on each slide. 1

The 30 -Second Pitch/Hook 1. [Describe your product or service. Make sure to include your company’s name. ] 2. [What problems does the product or service solve (or what demand does it meet)? ] 3. [How is your product different? ] 4. [Why should your potential investors care? ] Remove slide before presenting Example: "Do you use a flash memory drive? What if your car had a USB port and you could play music through it? That’s what my company, Play-On, is building. . ” 2

[Business Name] [Logo] [Entrepreneur’s Name] [Grade] [Age] 3

Mission Statement [A mission statement is a company’s constant reminder to its employees and customers of why the company exists. ] Opportunity [What is your product or service? How does it work? What are its unique features? Walk us through what the customer sees/receives. ] 4

Business Profile Type of Business [Is yours a Service, Retail, Manufacturing, or Wholesale business? ] [Describe your product/service in terms of your type of business and your customer. (Example: “Company Name is a manufacturing company making baskets for sale to wholesalers. ”)] Insert an image of your product or service here. Legal Structure [Sole Proprietorship, Partnership, C Corporation, Sub. Chapter-S, Limited Liability Company, or Not-for-Profit Corporation? ] [Why did you select this legal structure? ] 5

Qualifications I’m qualified to run this business because: [Enter reason #1 here. ] [Enter reason #2 here. ] [Enter reason #3 here. ] 6

Market Analysis (Example) Industry Name Special food services Industry Size $31, 130, 659 Total Population San Francisco, Mission District ZIP code: 94110 Target Market Potential Market Adults, both male and female, ages 18 -34, with an average household income of greater than $35, 000 Based on our survey of 30 individuals from the target market, we believe our potential market size is 80% of the target market. 90% eat out 3+ times per week 80% don’t have enough time to cook meals for themselves 80% said they would try a personal chef service if one were available in their neighborhood Remove slide before presenting Total Population 77, 239 Target Market 24, 716 Potential Market 19, 773 7

Market Analysis Industry Name [What industry are you in? (http: //www. bizstats. com)] Industry Size [How much is being spent in your industry? (http: //www. bizstats. com/industry-markets. asp)] Total Population [Where are you planning to market you product/service? Is there a particular area, city, neighborhood, or ZIP code(s)? ] Target Market Potential Market [What gender are you targeting (if applicable)? What age group are you targeting? What is the average household income of the group you’re targeting? ] [Survey your target market. What percentage of them would be willing to try your product/service? Why? ] Total Population [? ] Target Market [? ] Potential Market [? ] 8

Target Market Segment Demographics [The age, gender, occupation, and education of your customers. Economic factors, such as household income, family composition, and size. ] Insert image of a consumer. Geographics [The size of the area, density, and location of your customers. Where do they live, work, go to school, or shop? ] Psychographics [The general personality, lifestyle, sports, hobbies, music preferences, and other freetime activities. ] Buying Patterns [The purchasing patterns and buying behavior of your customers, including the rate of use, repetition of purchases, benefits sought, brand preferences, and brand loyalty. Also the purchasing behavior (impulsive or cautious, using cash or credit card). ] 9

Competitive Advantage Factors [Your Business] [Competitor A] Price [? ] Quality of Product/Service [? ] Location [? ] Reputation/Brands [? ] Unique Factors/ Knowledge [? ] [Competitor B] 10

Marketing Mix [Enter your marketing strategy for Place. ] [Enter your marketing strategy for People. ] People Product [Enter your marketing strategy for Product. ] Place [Enter your marketing strategy for Promotion. ] Price Promotion [Enter your marketing strategy for Price. ] 11

Promotional Mix Promotional Expense Monthly Amount [List plans for advertising, if any. ] [$] Publicity [List plans for publicity, if any. ] [$] Personal Selling [List plans for personal selling, if any. ] [$] Sales Promotion [List plans for sales promotion, if any. ] [$] Other [List plans for visual merchandising or public relations, if any. ] [$] Total Monthly Promotional Expense [$] Advertising 12

Cost of Materials/Labor Materials Material Description Cost/Total Quantity Cost per Unit [Description] [$] [$] Total Material Cost per Unit [$] Labor Cost per Hour Time (in Hours) to Make One Unit [$] [Time] Total Labor Cost per Unit COGS (per Unit) Labor Cost per Unit [$] [Total Materials Cost per Unit + Total Labor Cost per Unit] 13

Economics of One Unit Description of One Unit of Sale: [Describe a unit of sale. What is the customer actually buying from you? ] Selling Price (per Unit) [$] COGS (per Unit) [$] Other Variable Expenses (per Unit) [$] Total Variable Expenses (per Unit) [add COGS + Other Variable Expenses] [$] Contribution Margin (per Unit) [$] 14

Average Monthly Fixed Expenses Fixed Expense Average Monthly Expense Insurance [$] Salaries of Employees [$] Advertising [$] Interest [$] Depreciation [$] Utilities (Gas, Electric, Telephone) [$] Rent [$] Other Fixed Expenses [$] Total Average Monthly Fixed Expenses [$] 15

Time-Management Plan Schedule for a Typical Week Total Hours in a Week = 168 16

Monthly Sales Projections First Year Total Units Sold [Units] 17

Monthly Break-Even Units [Monthly Fixed Expenses] = [Monthly Break-Even Units] [Contribution Margin per Unit] In an average month, the company will begin [? ] to make a profit after selling units. 18

Projected Yearly Income Statement First Year A Selling Price per Unit [$] B Number of Units Sold [Number of Units] C Total Sales D E F G H I Variable Expenses [A × B] [Variable Expense per Unit × B] [C – D] Contribution Margin Fixed Operating Expenses [Monthly Fixed Expenses × 12] [E – F] Pre-Tax Profit Taxes @ 15% Net Profit [G × 0. 15] [G – H] 19

Start-Up Investment Start-Up Expenditures Item Where Will I Buy This? Cost [Item] [Vendor/Location] [$] [Item] [Vendor/Location] [$] A Total Start-Up Expenditures Cash Reserves Emergency Fund [$] B Reserve for Fixed Expenses [$] C Total Start-Up Investment [A + B + C] 20

ROS & ROI ROS: Return on Sales For My Business: [Annual Net Profit] [Annual Sales] X 100 =[0. 0]% ROS Dollar Equivalent = [$0. 00] ROI: Return on Investment For My Business: [Annual Net Profit] [Start-Up Investment] X 100 =[0. 0]% ROI Dollar Equivalent = [$0. 00] 21

Financing Strategy [$] Total Start-Up Investment Source Amount Debt Equity Personal Savings [$] Relatives/Friends [$] [$] Investor [$] [$] Partner(s) [$] [$] Totals [$] [$] Gift [$] [$] 22

Business Responsibility & Philanthropy Business Responsibility [Explain how you will incorporate business responsibility into your marketing plan. ] Philanthropy [Describe how your business will give back to the community or support a cause in which you believe. ] 23

Business & Personal Goals Business Short-Term [Describe the next steps you need to take to make your business fully operational. ] [Explain how you will improve or maintain the quality of your product/service. ] Personal [Explain how you will expand the business (hire employees, attract new customers, purchase a storefront, and so on). ] [Describe how big your business could get. ] Long-Term [Indicate how long you [Describe education or training you could get to help with your business. ] [Mention anyone you could seek out as a mentor. ] plan to run the business. Describe your exit strategy, if you have one. ] [Describe how your experience with this business will prepare you for your career. ] 24

[Enter your slogan ] Thank you for your consideration. [Enter company name] 25