VERMONT CHI is a retail business created and operated by students in the Hospitality and Entrepreneurship program at Stafford Technical Center in Rutland, VT. STC serves students from Rutland County public schools.
This business is devoted to creating and assembling products utilizing Vermont indigenous materials (when possible) and created by local Vermont entrepreneurs. Vermont Chi products are developed to assist in stress management and to create a better environment for work, leisure, and educational areas.
Our business is a not for profit, as we are affiliated with a school.
All profits are invested back into the program, donated to other not for profit entities, and assist students with educational field trips within the Hospitality and Entrepreneurship program at Stafford Technical Center.
Economics of One Unit Definition of One Unit One Zen Garden Selling Price Per Unit $34.95 Direct Labor $2.00 Materials $20.63 Total COGS Per Unit $22.63 Other Variable Costs $1.30 Total Variable Costs $23.93 Gross Profit Per Unit $11.42
Cost of Materials/Direct Labor Definition of One Unit $.40 Information Card $7.00 Wooden Box $2.00 Rakes $1.30 Packaging $0.23 Sand Direct Labor (wage per hour) Direct Labor cost per unit $ $8.06 $2.00 Material Description Cost (per unit) Bowl $9.00 Pagodas/Huts $2.00 Total Materials/Direct Labor $23.93
Competition Competitor Price Location Target $14.98 U.S. Office Playground $6.95-$15.99 U.S. Justforeveryone.com $7.95 U.S. Barnes & Noble $6.95 U.S. Embracethepositive.com $19.99 New York, U.S. Mudmom.com $35.00 Oregon, U.S.
Place : websites, e-mail, & conventions, social networks
Product : zen garden with all components made in Vermont made by Vermont artisans.
Promotion : business website, educational websites, & press releases
Method Description Target Consumer ( age, gender, location) Cost Social Networking/ Database Attach social networking page to website, present pictures of product, paste testimonials from website Young adults to middle age $0.00 Website Details about product, background information. Contact information, view of product, and testimonials. Young adult to middle age $0.00 Conference Actual display of product and components. Product sampling, display board with info. Middle age; mid to upper suburban areas $0.00
Students can give workshops and display the importance of managing stress to those who may not be able to afford the Vermont Chi Zen Garden Kit.
Give a percentage of our profit to Camp Takumta and Silver Towers.
Average Monthly Fixed Costs Type of Fixed Cost Monthly Cost Utilities $0.00 Advertising including postage $0.00 Total Fixed Cost $0.00
Monthly Sales Projections Total = 47 Month Units Sold January 4 February 3 March 5 April 7 May 8 June 3 July 0 August 0 September 2 October 3 November 5 December 7
Projected Yearly Income Statement Selling Price Per Unit $34.95 # of Units Sold 47 Total Sales $1642.65 Less Variable Costs Total COGS (COGS per unit * B) $1063.61 Other Variable Costs (Other variable costs per unit * B $61.10 Total Variable Costs ( D+E) $1124.71 Gross Profit (C-F) $517.94 Less Fixed Costs USAIIRD (Yearly) $0 Other Costs/Unforeseen $0 Total Fixed Costs $0 Net Profit (I-J) $517.94
Start-Up Investment Entrepreneurial hours needed for start-up (A) Wage Paid (B) Total start-up time investment (A*B) 20 $8.06 $161.20 Item Where I will buy this? Cost of Item Postcards for mailing and postage (500) Staples, United States Post Office $100.00 Packaging Supplies ULINE, Any Grocery Store $ 29.53 Start up inventory for Zen Gardens and Boxes Pizzazz, Vermont Wooden Box, Small Planet Communications $ 432.00 Total $ 722.73 CASH RESERVE covering 3 months of fixed costs $ 1147.70 Estimated TOTAL START-UP INVESTMENT $1870.43
Financing Strategy for Total Start-Up Investment This grant was given to us for our outstanding presentation of the original business plan for this business by our program instructor. There were many different entrepreneurial presentations and ten out of the fifteen were rewarded grants. Source Amount Grant from Consortium for Entrepreneurial Education $2000.00
Return on Investment Return on Investment (ROI) Yearly Net Profit / Start-Up Investment X 100 26% For every $1 dollar invested, our business earned: $2.60
Return on Sales Return on Sales (ROS) Yearly Net Profit / Total Sales X 100 31.53% For every $1 dollar of sales, our business earned: $0.31
Financial Ratio Analysis Start Up Investment Doubling Monthly Break-Even Units Monthly Fixed Cost/Gross Profit Per Unit 24 Zen Garden Kits Years for my start-up investment to double in value (Start-Up Investment / Net Profit) X2 31% of a year or approximately 4 months
The short term goal of our business is to expand to two different themes of Zen Gardens.
The long term goal (2 years) of this business is to make enough sales and networking contacts through attending various conferences to re-sell this product through companies such as Amazon.com and select educational distributors such as Glencoe and MarkEd.
Another long term goal would be for Vermont Chi to expand to giving workshops and presentations regarding stress management techniques.
Time Management Plan Business Schedule for a typical week
Entrepreneurial Hours: 1 Hour
School Hours: 5 Hours
Free-Time Hours: 18 Hours
Vermont Chi Why? Change in: People Demographic focus Economy Marketing strategies Green responsibility
Revised Project: Vermont Chi What? After being reviewed by current students within the entrepreneurship program, it was agreed upon that this product would be better marketed as a “ Vermont made” product.