Business plans that follow the guidelines below are due by class time on Monday, April 1. Please email them to me at that time. Projects should be in a slide format. Advertisements and product demos are not due.
Business Plan Project
1. Select a type of small business that interests you. Your business should be locally focused and should realistically be within your means to manage it. Keep in mind the following: the community needs and resources, local businesses that would be your competition, realistic funding possibilities (family assistance, private, commercial, or public), type of business (proprietorship or partnership).
2. Complete the worksheet on the blog and submit it to me.
3. Research similar local businesses by visiting them and making a log of visitors or discussing the business with owners or employees.
4. Write a plan for setting up your business. Write a persuasive plan so that a potential backer would want to lend you money to reach your goals. Include:
A. A list of goals and objectives
B. A description of the business (what it does and what makes it different, location [scout real locations that are currently for rent], legal status [permits, regulations for running your kind of business], equipment needed [coffee machines, ice cream makers, etc.)
C. Description of the market, Analyze your competition [This should include a demographic analysis of at least one local business] and a marketing plan. Your marketing plan should describe market trends and then explain, based on this information, how you plan to reach costumers. You can find demographic information at www.census.gov.
Market Trends: Market trends could be changes in demographics, changes in customer needs, a new sense of style or fashion, or something else. It depends on what business you are in. What factors seem to be changing the market, or changing the business? What developing trends can make a difference?
Here are a few examples:
1. A building supply store might note the trend toward remodeling older homes instead of buying new homes, or a trend toward more rooms in larger houses, despite smaller families, because of home offices, dens, and exercise rooms.
2. A grocery store might note a trend toward Asian foods or spicier foods, or toward fresher, healthier foods, or development of a new shopping area in a different part of town.
3. A credit and investment counselor might note demographic trends, such as baby boomers aging, leading to a greater need for estate planning and retirement planning.
D. Projections of start-up and normal operating costs
E. A calendar projecting the phases of implementing your business
F. Projections of net income and profit based on similar local businesses.
Your net income projection should include:
• Sales by month for the first 12 months, which provides the first year total
• Sales projections by year for the remaining years in your plan
• A text explanation about the forecast and how you decided on those numbers.
G. Explanation of the management structure.
H. Description of personnel, who will you need to hire? How many people will you need to hire? Where will you find your employees?
I. Cite your sources for every piece of information used in the plan.
5. Presentation: You will be asked to present your plan to possible investors. This should include:
o A slide presentation meant to woo possible investors. Present the data from the business plan in a visually interesting manner!
o An advertisement (Should be included as part of your slide presentation)
o An example of your product or a model that demonstrates how your product will work.
