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Honest Gaming Reviews Website Targeting Young Male Gamers
- 1. Christian Rodriguez 10 16
- 2. Mission Statement Here I offer honest reviews and make sure you make smart purchases. I listen to my audience and deliver on what they want. Opportunity It is a website where I put out reviews and don’t give them scores since I feel that it’s deceptive to give something a score, a reader sees it and goes out to buy it and then end up hating it.
- 3. Type of Business Service Service company reviewing and putting out new info for games Legal Structure Sole proprietorship Easier to manage that way, own hours and get all the money.
- 4. I’m qualified to run this business because: Have been a gamer for many years. Know what people want in terms of content. I love to game and that transitions to my business
- 5. Market Analysis Industry Internet publishing broadcasting Name Industry Size $34 billion Total I am planning to sell to the Total Population Population Bay Area, nowhere specific since it’s a website, could 84,950 be around the world Target Market Target Male, family size isn’t a 5000 Market factor, 18-25, income should be around $5000 a Potential Market Size year 2560 Potential Around 75% of my target Market Size market would enjoy my product
- 6. Demographics Psychographics Ages 18-25, mostly males, People who enjoy being focused towards more updated on the world of literate people, family size gaming, like to read. can be any Buying Patterns Geographics It would be for people They would live in the who like to buy things United States, and would once and then forgot just have to go to the about it until the next year website or subscription ends.
- 7. Factors My Business IGN GAMESPOT Price $10 Ads Ads Quality of Product/Service Dependable Good Good Location San Leandro San Francisco US Reputation/Brands Brand new Mostly good Have good fresh ratings on Unique Factors/ YouTube Have their Knowledge Perspective of own show Good a 16 year old previews
- 8. Website from home, Chance to win a free operated by myself game, or have a in my living room chance get a package from developers Promotion.] Review website, Flat rate for price, helps people might be adjusted if purchase smartly more people come than expected or less Price.]
- 9. Monthly Promotional Expense Amount
- 10. Materials Material Description Cost/Total Quantity Cost per Unit Servers for my website $5.95 for 1 $5.95 Total Material Cost per Unit $5.95 Labor Labor Cost per Time (in Hours) to Labor Cost per Unit Hour Make One Unit [$] [Time] [$] Total Labor Cost per Unit [$] [Total Materials Cost per Unit + Total COGS (per Unit) Labor Cost per Unit]
- 11. Description of One One subscription to the website Unit of Sale: Selling Price (per Unit) $10 COGS (per Unit) $0 $5.95 per Other Variable Expenses (per month for Unit) website hosting Total Variable Expenses (per $5.95 Unit) Contribution Margin (per Unit) $4.05
- 12. Average Monthly Fixed Expense Expense Insurance $0 Salaries of Employees $0 Advertising $164 Interest $0 Depreciation $0 Utilities (Gas, Electric, $35 Telephone) Rent $79 Other Fixed Expenses $ Total Average Monthly Fixed $278 Expenses
- 13. Total Hours in a Week = 168
- 14. Total Units Sold 250 200 150 100 50 U S d o n s t l i 0 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
- 15. Monthly fixed expenses over contribution margin per unit,$129 divided by $4.05=$31.85 company will begin to make a profit after selling 32 units.
- 16. A Selling Price per Unit $10 B Number of Units Sold 600 C Total Sales $6000 D Variable Expenses $5.95x600 E Contribution Margin $6000-$3570 Fixed Operating F $129x12 Expenses G Pre-Tax Profit $882 H Taxes @ 15% $882x.15 I Net Profit $749.90
- 17. Start-Up Investment Start-Up Expenditures Item Where Will I Buy This? Cost Servers Hosting website for a year $71.40 Total Start-Up Expenditures $71.40 Cash Reserves Emergency Fund $300 Reserve for Fixed Expenses $492 Total Start-Up Investment $863.40
- 19. Total Start-Up Investment $863.40 Source Amount Debt Equity Gift Personal Savings $503.40 Relatives/Friends $360 $100 $0 $260 Investor $0 $0 $0 Partner(s) $0 $0 $0 Totals $863.40 $100 $0 $260
- 20. Business Responsibility My company will recycle and advocate on saving the enviroment. Philanthropy I will donate to my local shelter to improve conditions for animals in my community.
- 21. Business Personal I need to take steps to make I will use my time to talk to more money and draw more people and try to promote Short-Term traffic to my site and get more my site to my friends who pro gamers to back up my are gamers. website My business could be big I will constantly improve the within my market, and may site and renovate it as much as go to the mainstream if it’s good enough possible. I could study how to I plan to run until games stop improve the website, and coming out. If I would leave it Long-Term more things about gaming. would be if I have multiple employees and give it to them. I could seek out my brother- It would provide me the in-law to mentor me, since ability to write and explain he knows about business things in a better light and the and about websites. ability to argue.
- 22. Thank you for your consideration.
Editor's Notes
- Student Notes: Make sure your business’s name is clearly shown. Try to show it on one line, without squeezing. If you break your business name over a few lines, make sure to think about where you break the business name. If your business is a partnership or a corporation, you may need to list multiple entrepreneurs on this slide. As you work on your final presentation, feel free to change the font size, if you need to, when you are asked to fill in answers between brackets. Remember, you don't want to make the type too small. Your audience might have difficulty reading your presentations. For your presentation you can delete all the notes on this template and replace them with notes that will help with your final presentation. Teacher Notes: You may want to print a copy of the Student Version with the Notes for each student developing a business plan. Often students don’t realize that there are notes for each page in this template. These notes can be deleted by the students and replaced with notes that will help the students in their final presentations. Other Activities “ Index Card Practice.” Give each student an index card. Each time the student practices his/her presentation, they earn a punch in the card. Give some type of reward for every 5 punches. “ Other People’s Presentations.” Have students try to present sections of other students’ slides for practice. Additional Links http://www.toastmasters.org/MainMenuCategories/FreeResources/NeedHelpGivingaSpeech.aspx -- Provides speaking tips and techniques.
- Student Notes: We are here to offer honest reviews and make sure our readers buy smartly People who enjoy to read will find this website enjoyable Sometimes judges (or investors) don’t know exactly what you are selling. You have the opportunity in this slide to present your product or service in a clear and compelling way. Sell it! You can show sample products, your brochures, portfolios, or flyers. You need to articulate the unique features of your product or service and how it will benefit your customers. It’s show time during this slide! Mission statements are covered on pg. 194. Recognizing business opportunities is covered on pgs. 147-160 Business Plan Exercises This slide relates to the following business plan exercises: Section 4.1: “Business Communications.” In BizTech or pg. 251 in the Business Plan Project (Student Activity Workbook) . Helps you develop a motto, slogan, or mission and your business card. If you are using the Business Plan Project (in the Student Activity Workbook ), do the exercise on pg. 264, “Begin Filling in Your Business Plan.” Section 6.2: “Business Opportunity.” In BizTech or pgs. 265-266 in the Business Plan Project (Student Activity Workbook) . Leads you through a SWOT analysis of your business opportunity. Teacher Notes: Related Experiential Exercises “ Make Business Cards.” Teacher’s Wraparound Ed ., pgs. 58-59. Students make business cards. Often students put their mission statement on their business cards.
- Student Notes: My product is a review site that reviews games in an unbias way. I would be running it as a sole proprietorship to avoid conflicts and get all of the profit Types of Business Your business might be a combination of two types of business or more. For example, if your business makes baskets, it would be considered a manufacturing business. If you also sell directly to consumers, you would be a retail company as well. And, if you offer lower prices for bulk orders to a local store, you also operate as a wholesale business. So you would be a retail-wholesale-manufacturer. (Covered in Section 3.1, pgs. 51-55.) Most student businesses are either a sole proprietorship or a partnership. (Covered in Section 3.2, pgs. 56-65.) The type of business you choose will affect the Economics of One Unit (Slide 14) and the Projected Annual Income Statement (Slide 19). Assessments You can complete these self assessments (either in BizTech or the Business Plan Project in your Student Activity Workbook ) to evaluate your response to various types of business and business ownership. Section 3.1: “Type of Business.” In BizTech or pgs. 240-242 in the Business Plan Project (Student Activity Workbook) . Section 3.2: “Type of Business Ownership.” In BizTech, or pgs. 244-246 in the Business Plan Project (Student Activity Workbook) . Business Plan Exercises This slide relates to the following business plan exercises: Section 3.1: “Type of Business.” In BizTech or pg. 243 in the Business Plan Project (Student Activity Workbook) . Section 3.2: “Type of Business Ownership.” In BizTech or pg. 247 in the Business Plan Project (Student Activity Workbook) . Teacher Notes: Related Experiential Exercises “ Human Product Distribution Chain.” Teacher’s Wraparound Ed., pgs. 518-519. Helps students understand the distribution chain from a manufacturer to a consumer. Additional Links http://smallbusiness.findlaw.com/business-structures/business-structures-overview/ http://www.sba.gov/smallbusinessplanner/start/chooseastructure/START_FORMS_OWNERSHIP.html http://www.legalzoom.com/business-formations/compare-documents.html
- Student Notes: I am qualidied to run this business because I am an aficionada at gaming, I’ve been a gamer for years and I love to write which would transition to my business Chapters 1 (pgs. 4-21), 2 (pgs. 26-45), and 4 (pgs. 74-97) deal with the characteristics of an entrepreneur and specific knowledge and skills required by entrepreneurs. For qualifications, consider what you are passionate about and what unique knowledge you may possess. Assess not only your own skills, but those of your network of friends and family. Assessments Section 4.1: “Communicating in Business.” In BizTech or pgs. 248-250 in the Business Plan Project (Student Activity Workbook) . Section 4.2: “Assessment: Negotiating.” In BizTech or pgs. 252-253 in the Business Plan Project (Student Activity Workbook) . Teacher Notes: Related Experiential Exercises “ Negotiation Game.” Teacher’s Wraparound Ed., pgs. 88-89. Other Activities “ Personal SWOT Analysis.” Have students to a personal SWOT analysis. You may have to teach the SWOT analysis (covered on pgs. 158-160). “ Asset-Based Development.” Interview someone with a job about what he or she does during a typical work day. As you conduct the interview make not of the person’s skills and positive characteristics required for the job. After the interview, write down that person’s qualifications for the work they do.
- Student Notes: It would be internet publishing broadcasting which makes about $34 billion a year. My target market would be males around the age of 18-25. The great thing is that income, family size do not matter, being accesible to everyone who can read. Market research is covered in Section 7.1 (pgs. 167-175). Business Plan Exercises This slide relates to the following business plan exercises: Section 7.1: “Market Research.” In BizTech or pgs. 267-269 in the Business Plan Project (Student Activity Workbook) . Online Sources of Marketing Information www.bizstats.org – For information on specific industries (such as average sales, average Return on Sales, etc.) www.zipskinny.com – Provides a detailed profile of a market by ZIP code www.chamber of commerce.com – Local demographic info and business support services www.census.gov – Click “American Fact Finder” for search options. www.claritas.com – Focuses on market segmentation. Calculating the Target Market Multiply the Total Population by the percentage of the population with the characteristics of the target market (age, gender, average household income, etc.). Calculating the Potential Market Size Research a sample of your target market to see what percentage would be willing to try your product or service. Multiply the Target Market by the percentage who would be willing to try your product/service. Multiple Markets This slide analyzes one market, but a business can have multiple markets. For the purposes of this business plan, use this slide to analyze only the primary market. Period of Time In the course of the five years covered by a typical Business Plan, a business’s market can change. For the purposes of this business plan, use this slide to analyze your market for the first year only. Teacher Notes: Related Experiential Exercises “ Chocolate Bar Market Research Activity.” Teacher’s Wraparound Ed., pgs. 180-181.
- Student Notes: Demographics: 18-25, male Psychographics: they like to read and enjoy learning about gaming Geographics: around the world Buying patterns: once a year purchases Targeting your market is covered in Section 7.1 (pgs. 170-171). The more detail, the better! Demographics and geographics help communicate who will buy. Sources for demographic and geographic data were shown on Slide 8. Psychographics communicate what makes your target market want to buy. Multiple Market Segments Often a product or service will be sold to more than one target market segment. For the purposes of this business plan, use only your primary target market. Conducting Surveys You can conduct primary research, such as a written or web-based survey (www.surveymonkey.com), to learn more about your customer’s purchasing behavior. The article, “How Marketing Plans Work,” lists sample questions you can ask to gain psychographic information from customers. It’s available at: http://money.howstuffworks.com/marketing-plan14.htm. Psychographic Data Other sources of psychographic data: www.quirks.com/topics/psychographic.aspx www.magportal.com/cgi/search.cgi?Q=psychographic+studies&s=0&c=30&x=31&y=7 Teacher Notes: Related Experiential Exercises “ Magazine Game.” Teacher’s Wraparound Ed., pgs. 212-213. Other Activities “ Create a Market Survey.” Ask students to create a market research survey for a product or service for which teems would be a target market. “ Commercials Log Project.” Have students keep a TV “commercials log” and profile the consumers for whom the ad is intended.
- Student Notes: My competitors would be IGN and Gamespot. My competitive advantage would be my perspective, since almost all of these writers are adults, and might have a different perspective than me a sixteen year old. Targeting your market is covered in Section 7.2 (pgs. 177-186). Business Plan Exercises This slide relates to the following business plan exercises: Section 7.2: “Competition” and “Competitive Advantage.” In BizTech or pgs. 270-273 in the Business Plan Project (Student Activity Workbook) . Greatest Strength/Greatest Weakness In relation to your business, what is your major competitor’s the greatest strength? Greatest weakness? Your competitive advantage should be positioned to exploit a competitor’s weakness or a consumer need/want being neglected by other competitors. It may include strategy the competition can’t duplicate very easily. It should be sustainable competitive advantage that goes beyond price. Possible Research Site http://finance.yahoo.com – Provides information regarding major companies in various industries, as well as general industry information. Teacher Notes: The Competitive Advantage slide should be a critique of the top competitors. Coach your students to do some competitive research for competitors using yellow pages, Websites, talking to customers, etc. Ask students to focus on the issues of quality, price, location, brand, and unique knowledge. Related Experiential Exercises “ Magazine Game.” Teacher’s Wraparound Ed., pgs. 212-213. Other Activities “ Competitor S.W.O.T. Analysis.” Have students to conduct a S.W.O.T. analysis of their top competitors.
- Student Notes: People: flyers, business cards, ads How to develop your marketing mix is covered Section 8.1 (pgs. 211-222). Business Plan Exercises This slide relates to the following business plan exercises: Section 8.1: “Marketing Plan” and “Pricing Strategy.” In BizTech or pgs. 274-280 in the Business Plan Project (Student Activity Workbook) . 5 Ps This slide allows you to explain the rationale for each of your 5 Ps. There will be room for further explanation. Don’t put all your thoughts on this slide. Use it to highlight key words. People : Explain who your business serves and what employees are required to carry out the marketing plan. (Example: “Customers: Students using phones. Marketing employees: People who can know the student phone market.”) Product : Explain the major benefit of your product or service. (Example: “T-shirts with Velcro pockets. No more broken phones!”) Place : Explain why you chose this place. (Example: “Direct sales at events. Create word of mouth.”) Price : List the price and explain why you chose it. (Example: “$15, Great value for colorful, all-cotton T-shirt.”) Promotion : Explain your strategy for creating awareness of your product/service. (Example: “Concerts, sporting events, Web campaigns, contests”) Teacher Notes: Students may need help reducing their concepts to the relatively small boxes. Explain that they are key words which students will more fully explain as they give the presentation.
- Student Notes: Promoting Your Product is covered in Section 8.2 (pgs. 223-232). The principles of personal selling are covered in Section 9.1 (pgs. 239-247). The Total Monthly Promotional Expenses will be shown on Slide 15, under “Advertising.” Write keywords about your plan for using a particular type of promotion in the spaces provided. Show only the types of promotion you will be using. So, for instance, if you don’t plan on using “Sales Promotion,” don’t include it on your slide. Other Types of Promotional Expense This includes visual merchandising, public relations, and any other type of promotion not covered by the first four types. Business Plan Exercises This slide relates to the following business plan exercises: Section 8.2: “Promotional Mix.” In BizTech or pgs. 281-287 in the Business Plan Project (Student Activity Workbook) . Section 9.1: “Selling Your Product or Service.” In BizTech or pgs. 288-290 in the Business Plan Project (Student Activity Workbook) . Teacher Notes: Students may need help reducing their concepts to the relatively small boxes. Explain that they are key words which students will more fully explain as they give the presentation. Related Experiential Exercises “ Mock Sales Call.” Teacher’s Wraparound Ed., pgs. 240-241. Other Activities “ Guest Speaker.” Invite a guest speaker who is a specialist in marketing or advertising to speak to your class. Ask your Program Officer to help recruit the speaker. “ Brainstorming: Types of Promotion. ” Have students brainstorm the advantages and disadvantages of publicity, advertising, and online marketing. “ Press Releases.” Have students review newspapers, particularly local ones, for articles that they think were written from press releases. Discuss the articles as a class. “ Commercials.” Ask students to create 30-second commercials illustrating the benefits of each media type.
- Student Notes: Variable expenses are covered in Section 10.1 (pgs. 272-273). Units of sale are discussed in Section 10.2 (pgs. 275-276) “ COGS (per Unit)” will be used in Slide 14. Labor Costs This calculation only include the time spent actually building a product or providing a service. It does not include such things as time spent passing out flyers, selling, shopping for materials, sweeping floors, or billing customers. Types of Businesses Service businesses might not have any materials cost. Don’t show “Materials,” if materials are not part of your unit of sale. Wholesale and retail businesses typically don’t have any labor costs. Don’t show “Labor,” if labor is not part of you unit of sale. COGS COGS (“Cost of Goods Sold”) is appropriate for wholesale and retail businesses. For services businesses, change this to “COSS” (“Cost of Services Sold”). For manufacturing businesses, change this to “COGMS” (Cost of Goods Manufactured and Sold”). Business Plan Exercises This slide relates to the following business plan exercises: Section 10.2: “Economics of One Unit of Sale” and “Estimating Variable Expenses.” In BizTech or pgs. 297-298 in the Business Plan Project (Student Activity Workbook) . Preparing Your Final Slide Formulas are shown in red type. Replace the red formula with the appropriate calculation (make sure to change the font color to black). Teacher Notes: Helping students arrive at a labor figure can be challenging. Here are some ways to do it: If the student has never worked before and took a job, what would he or she be paid per hour? What do other students, with similar experience levels, get paid for similar work? If the student had to hire someone to perform the labor, what would he or she pay the other person (and achieve an appropriate level of quality and efficiency)?
- Student Notes: The economics of One Unit of Sale is covered in Section 10.2 (pgs. 275-282). “ COGS (per Unit)” is calculated in Slide 13. “ Contribution Margin” is discussed on page 276 of the textbook. It is the amount per unit remaining after all the variable expenses are subtracted from the sales price. Definition of a Unit This is what the customer actually buys from you. It is the minimum number and type of product or service you are willing to sell to a customer. For example, if you are selling sunglasses, your unit of sale would be one pair of sunglasses. COGS COGS (“Cost of Goods Sold”) is appropriate for wholesale and retail businesses. For services businesses, change this to “COSS” (“Cost of Services Sold”). For manufacturing businesses, change this to “COGMS” (Cost of Goods Manufactured and Sold”). Other Variable Expenses (per Unit) This includes such things as commissions and shipping & handling. Addition/Subtraction Process Add the Total COGS (per Unit) and the Other Variable Expenses (per Unit) to calculate the Total Variable Expenses (per Unit). Subtract the Total Variable Expenses (per Unit) from the Selling Price (per Unit) to calculate the Contribution Margin (per Unit). Business Plan Exercises This slide relates to the following business plan exercises: Section 10.2: “Economics of One Unit of Sale.” In BizTech or pg. 298 in the Business Plan Project (Student Activity Workbook) . Teacher Notes: Related Experiential Exercises “ Economics of One Unit.” Teacher’s Wraparound Ed., pgs. 278-279. Other Activities “ Fieldtrip.” Go on a fieldtrip with students to a manufacturing or service business to determine their economics of one unit of sale. “ Math Journal.” Start a math journal with your students. Spend 5 to 10 minutes of each class doing math calculations based on business financials.
- Student Notes: Fixed expenses are covered in Section 10.1 (pgs. 269-272). The income statement in Slide 18 refers to these fixed expenses as “operating expenses.” To learn what typical salaries are for your employees go to http://www.salary.com/ Business Plan Exercises This slide relates to the following business plan exercises: Section 10.1: “Fixed Operating Costs.” In BizTech or pgs. 295-296 in the Business Plan Project (Student Activity Workbook) . Teacher Notes: Entrepreneurs can choose to be paid in 4 different ways: If building a product, an entrepreneur can choose to be paid for direct labor (on Slide 13). If selling the product, an entrepreneur can be paid by commission under Other Variable Costs on Slide 14). An entrepreneur can choose to draw a salary. That would be covered (along with all other salaries) on this slide. Finally, an entrepreneur can choose to pay himself or herself from net profit (see Slide 18). Entrepreneurs cannot be paid for a specific action in multiple ways. For example, if an entrepreneur is paid for direct labor, the entrepreneur is not paid again for that direct labor as part of salary. However, an entrepreneur may be paid for direct labor and, for other work that is not direct labor (for example, buying supplies or sending out bills), receive a salary. Students should be resourceful in starting their business. Since many start their business from home, costs such as electricity, rent, and telephone service may not be listed as business expenses. If, however, the student shows several thousand dollars of net profit or a very high ROI (500%+), they should pay their parents a few dollars for rent, electricity, phone, etc. Other Activities “ Calculate Depreciation.” Tell students they bought an oven for their bakery business that costs $500. They will need to replace it in 3 years. Ask them how much they need to save per month to save the $500 to replace the oven in 3 years. Practice similar problems with other expensive pieces of equipment and have students calculate the depreciation costs.
- Student Notes: Time management is covered on pages 102-103. The amount of hours you can spend on your new business directly affects other important decision making (such as your yearly projected sales, selling price per unit, monthly break-even, etc.). Adding Your Data This Slide contains sample data only. To change your times: If you are using PowerPoint 2007 and 2010: Right-click on any of the bars in the chart and select Edit data. A spreadsheet appears containing the data used in the chart. Edit the data and close the spreadsheet. The bar chart will be changed. If you are using PowerPoint 2003: Right-click on the chart and select Chart Object/Edit data. Click the data sheet tab and edit your the data. When you close the spreadsheet, the bar chart will be changed Determining Your Capacity Once you have defined the number of hours you have to work at your new business each week, determine how much time you will spend managing the business, selling to customers, and building the product or providing the service. For example, imagine a retail manufacturer of T-shirts who plans to spend 10 hours a week work in on the business. If it takes 1 hour to make a T-shirt, only 10 T-shirts can be made per week. This assumes that all the allotted time is spent making shirts. You need to consider the time it takes to sell shirts as well as managing the business (keeping records, making flyers, shopping for supplies, etc.). Perhaps only 6 hours a week can be spent making T-shirts, with the rest of the time spent managing the business and selling shirts. Your capacity for the month would be 24 T-shirts. Increasing Your Capacity You can increase your capacity by working more hours at the business or by hiring people to do work that you would normally do (which, of course, increases your costs). Teacher Notes: This slide enables students to communicate their typical weekly workload. It is related to their sales projections on the next Slide (Slide 17). For example, if a student indicates that they plan to spend 2 hours a week on their business, but project that they will sell 1,000 T-shirts a month, something probably is wrong. They probably haven’t made the connection between their capacity and their monthly sales projections. Other Activities “ Weekly Time Log.” Ask students to log their time for a typical week, highlighting the number of hours that are devoted to school/homework, a part-time job, free time, sleep, their new business, or any other categories that make sense to them. “ Determining Capacity Word Problems.” Give each student a different scenario and ask them to calculate the amount of products/service that can be produced in a week. Example: A retail manufacturer of T-shirts plans to spend 10 hours on their business each week. She spends 1 hour marketing, 2 hours on sales, and the rest of the time making shirts. If it takes her 1 hour to make a T-shirt, how many shirts can she produce in a week? In a month? In a year?
- Student Notes: Estimating sales is covered in Section 9.2 (pgs. 249-258). Monthly sales projections are directly related to your capacity (discussed on Slide 16). Your monthly sales projections will directly relate to your projected yearly income statement (Slide 19). For the purpose of this slide show, show only the monthly sales projections for your first year. Business Plan Exercises This slide relates to the following business plan exercises: Section 9.2: “Sales Forecasting.” In BizTech or pg. 291-294 in the Business Plan Project (Student Activity Workbook) . Adding Your Sales Information This Slide contains sample data only. To change the “Units Sold” amounts on the graph, right-click on the chart, choose Worksheet Object/Edit, and select the Sales Projections Data sheet. Click the Sales Chart tab when you are finished, then click anywhere outside the Sales Chart to return to your Slide. Multiple Products If you have multiple products, you could chart only your primary product or, if your products were comparably priced, you could add all your products sold in a month and chart that amount. If you are more skilled with Excel, and have only a few products, you could use a separate color to represent sales of each product. (But don’t forget to use a legend to identify the colors representing the various products.) Sales Assumptions Along with your capacity (see Slide 16), keep these sales assumption in mind as you build your sales projections. You should explain them as you discuss your projections. “ Extent of Market Interest.” How interested is your target market in your product or service? Will it sell in a high or low volume. Why? Is it new and trendy? A high-end exclusive product likely to sell in low quantities? A low-cost mainstream product likely to sell in high quantities? “ Seasonality.” Are there times of the year when sales will be higher or lower than other times? When is the busiest time for you? The least busy? Teacher Notes: Students may need help establishing realistic sales projections. They may also need help using the chart on this slide.
- Student Notes: Income statements are covered in Section 12.2 (pgs. 333-336). Your Monthly Fixed Expenses comes from Slide 15 You will need to complete Slide 19 (“Projected Yearly Income Statement”) to determine your annual Contribution Margin. To calculate your Monthly Contribution Margin, divide the annual Contribution Margin by 12. Business Plan Exercises This slide relates to the following business plan exercises: Section 12.2: “Break-Even Analysis” and “Break-Even Point.” In BizTech or pg. 307 in the Business Plan Project (Student Activity Workbook) . Teacher Notes: Make sure that students are aware that they need to complete Slide 19 before they complete this slide. A monthly break-even analysis allows students to assess how their businesses are doing from month to month. They can make adjustments to maximize their sales.
- Student Notes: Income statements are covered in Section 11.1 (pgs. 289-303). Your monthly sales projections (Slide 17) relate directly to the number of units you plan to sell. Your monthly break-even units (Slide 18) require you to calculate your monthly contribution margin (which is E divided by 12). Your Variable Expenses per Unit comes Slide 14. Your Monthly Fixed Expenses comes from Slide 15. For the purpose of this slide show, show only the monthly sales projections for your first year. Business Plan Exercises This slide relates to the following business plan exercises: Section 11.1: “Income Statements and Cash Flow.” In BizTech or pg. 299-303 in the Business Plan Project (Student Activity Workbook) . Multiple Products If you have multiple products, project the sales of each product and add these together to obtain your total sales. Then multiply each product’s COGS by the number of units of that product you will sell, and add these all together for your Total COGS. If Your Net Profit is Huge Double-check your sales projections to make sure they are realistic. Add more costs into running the business (for example, rent to parents, paying a portion of the utilities, etc.) Consider additional costs that can enhance the business (monthly insurance fees, brochure development, Website hosting, etc.) Preparing Your Final Slide Delete the first column showing the red row labels. Replace the red formulas with the appropriate calculation (make sure to change the font color to black). Teacher Notes: Related Experiential Exercises “ Income Statement Card Game.” Teacher’s Wraparound Ed., pgs. 294-295.
- Student Notes: Start-up investment is covered in Section 13.1 (pgs. 347-353). Monthly fixed expenses (used in calculating your Reserve for Fixed Expenses) come from Slide 15. Business Plan Exercises This slide relates to the following business plan exercises: Section 13.1: “Start-Up Investment.” In BizTech or pgs. 308-309 in the Business Plan Project (Student Activity Workbook) . Start-Up Expenditures It’s easy to underestimate the types of things you need to start a business. This can include: the initial inventory, your first run of marketing materials, initial office supplies, business registration fees, insurance fees, legal fees, copyright or trademark registration. Classes, certifications, licenses, etc. High start-up expenditures are a common barrier to starting many types of businesses. If you predict that you’ll be highly profitable, build in more start-up expenditures. This will make the business appear more realistic to judges or investors. Emergency Fund Experts say this should be half the amount of the Total Start-Up Expenditures. Reserve for Cash Reserves Experts say this should be enough to cover your fixed expenses for at least three months. So, to calculate your Average Monthly Fixed Expenses (from Slide 15) by 3. Valuing Your Time Entrepreneurs should always place a value on their time. Estimate how much time you’ll spend planning and developing your business before you sell your first product or service. Multiply this by an hourly rate that you would get working at a job. This is the dollar amount of the time invested in starting your business. It’s your “sweat equity.” You can mention your sweat equity in you presentation as a way to indicate how passionate you are about the idea and its potential. However, it’s the price that an entrepreneur pays for launching a new venture. It would be unrealistic to seek compensation for your sweat equity. The success of your business will be your compensation! Preparing Your Final Slide Calculate your Total Start-Up Investment by adding A, B, and C. Make sure to show it with a dollar sign. Delete the red formula and the red letters from your final slide. Teacher Notes: Students often have a difficult time visualizing everything they need to start a business. They usually get the basics, but miss the details.
- Student Notes: ROI and ROS are covered in Section 12.1 (pgs. 321-331). Your projected Yearly Income Statement (Slide 19) relates directly to these two ratios. Your Start-Up Investment comes from comes Slide 20. Business Plan Exercises This slide relates to the following business plan exercises: Section 12.1: “Return on Sales (ROS)” and “Return on Investment (ROI).” In BizTech or pg. 306 in the Business Plan Project (Student Activity Workbook) . ROS Return on Sales enables you to communicate how efficiently you’re creating wealth. The “Dollar Equivalent” shows the amount of profit you earn for every dollar of sales. For example, a 30% ROS would mean that $0.30 of every dollar is profit. Preparing Your Final Slide In the red formulas, fill in the appropriate amounts for your business and change the font color of the red formula to black. (The top, black formula remains on your final slide so you will have a record of the formula you used to calculate your ROS and ROI.). Teacher Notes: Related Experiential Exercises “ ROI Relay Race.” Teacher’s Wraparound Ed., pgs. 328-329. Other Activities “ Industry ROIs.” Ask students to identify ROIs for various industries. Most students will have unrealistically high expectations for ROIs. Possible sites for ROIs: entrepreneur.com, startup.com, or bizstats.com. “ ROI Basketball.” Divide the class in groups of 2 or 3. On a basketball court, tell a group an Annual Net Profit and the Start-Up Investment (choosing numbers that are fairly easy to calculate without a calculator). Ask them to calculate the ROI. If the group gets it right, each member gets to shoot a basket.
- Student Notes: Obtaining Financing is covered in Section 13.2 (pgs. 355-363). Total Start-Up Investment comes from Slide 21. Business Plan Exercises This slide relates to the following business plan exercises: Section 13.2: “Break-Even Analysis” and “Break-Even Point.” In BizTech or pgs. 310-314 in the Business Plan Project (Student Activity Workbook) . Obligations One thing to keep in mind when you consider financing strategies is what you obligation is to the person or business who provided your financing. A debt must be repaid in a fixed amount of time, in set payments, at a certain rate of interest, no matter whether the business is profitable. Equity is an exchange of capital for ownership in the business. Investors understand that the business may not be profitable, but if it is, they will be entitled to a percentage of the profit. Shareholders may also wish to share in the decision-making for the company. Teacher Notes: Discuss financing resources/assets in the community, identifying any that may be helpful to your students. Related Experiential Exercises “ Do I Need Financing.” Teacher’s Wraparound Ed., pgs. 348-349.
- Student Notes: Social responsibility and philanthropy are covered in Section 5.2 (pgs. 115-128). Be Creative Start-ups are usually strapped for cash. Be creative in your philanthropy. The effort should be in line with the business or your personal interests. Consider how much your time and talents are worth if they were donated to a particular cause. For example, 5 hours per month of tutoring at $20/hour is an “in-kind donation” of $1,200 a year. Assessments Section 5.1: “Ethical Business Behavior.” In BizTech or pgs. 255-257 in the Business Plan Project (Student Activity Workbook) . Section 5.2: “Socially Responsible Business & Philanthropy.” In BizTech or pgs. 258-260 in the Business Plan Project (Student Activity Workbook) . Business Plan Exercises This slide relates to the following business plan exercises: Section 5.2: “Social Responsibility.” In BizTech or pg. 261 in the Business Plan Project (Student Activity Workbook) . Teacher Notes: Other Activities “ VENN Diagram.” Have students draw a VENN diagram of the causes that they would like to support and the causes that their customers would want to support. Ask students to explain the overlaps in their diagrams. “ Research Social Responsibility.” Ask students to research and report on the social responsibility strategies of different companies.
- Student Notes: Goal setting is covered in a special section on pages 132-133. Planning for business growth is covered in Section 21.1 (pgs. 559-566). The challenges of growth are covered in Section 21.2 (pgs. 567-570). Exit strategies are covered in Section 22.2 (pgs. 587-598). Short-Term Vs. Long-Term Short-term goals are those goals that you set for the next one or two years. Long-term goals can focus on goals that range from 3 years or longer. Remember to relate your goals to your business idea. Make sure you take the steps you to take to meet your long-term goals (certificates, permits, licenses, etc.) Business Plan Exercises This slide relates to the following business plan exercises: Section 21.1: “Planning for Business Growth.” In BizTech or pgs. 351–352 in the Business Plan Project (Student Activity Workbook) . Section 21.2: “Challenges of Growth.” In BizTech or pgs. 353–355 in the Business Plan Project (Student Activity Workbook) . Section 22.1: “Franchising & Licensing.”” In BizTech or pg. 356 in the Business Plan Project (Student Activity Workbook) . Section 22.2: “Exit Strategies.” In BizTech or pgs. 357–362 in the Business Plan Project (Student Activity Workbook) . Teacher Notes: Related Experiential Exercises “ Stock Contest.” Teacher’s Wraparound Ed., pgs. 564–565. “ The Wall Street Journal Game.” Teacher’s Wraparound Ed., pgs. 596–597.
- Student Notes: Remember to thank your audience. This is your last chance to remind the audience of your company’s slogan and its name. Say them slowly. Don’t rush through your closing screen. Teacher Notes: Discuss the importance of a good ending with your students. The audience should have the feeling of closure. The audience should Discuss how to handle the question-and-answer session from the audience that may follow the presentation.