BU Tattoos is a student-run business that provides temporary Butler-branded tattoos. During a proof of concept period, they found strong demand and were profitable. They request a $1000 loan to continue operations focused on bulk sales to organizations. The document provides details on their products, target markets, marketing strategy, sales and financial results from the proof of concept period. It summarizes lessons learned around the profitability of bulk sales and timing individual sales around events. Designs were chosen based on student feedback and trends.

1. BU TATTOOS
Developing Superior Spirit
Final Business Plan
Alex Bartlow, Andrew Brothers, Matt Goff, Thomas Kopelman, Jana
Olson, and Kaitlyn Sawin
EI201 – 06
November 13, 2015

2. Table of Contents

3. Executive Summary
Introduction
BU Tattoos is a student run business that has successfully found a way to meet the needs of students
by providing a Butler branded temporary tattoo option. Previously, a true temporary tattoo option
was not available to students, however, there was a desire for this product. Through the proof of
concept period, BU Tattoos found that there is a large market for this product. Additionally, the
opportunity for bulk orders was explored and found to be very successful.
BU Tattoos is requesting a $1,000 loan to allow the company to continue to help students and fans
develop superior spirit on Butler’s campus and beyond.
Company Background
The idea for BU Tattoos was generated because of the desire for the product and lack of a
reasonable substitute for Butler students and fans. It is not uncommon to see customized temporary
tattoos at larger universities and it was BU Tattoos’ mission to be the first to provide this product on
Butler’s campus. Six sophomore students formed a team, surveyed student interest, created designs
based on feedback, found a manufacturer and brought the product to Butler University. BU Tattoos
provides two-by-two inch temporary tattoos in multiple deigns that are skin-safe and easy to apply
and remove.
Based on the proof of concept period, it was found that this product has the opportunity to be very
successful and BU Tattoos looks forward to future expansion. With a shift in focus towards more
bulk order sales, BU Tattoos is projected to be a profitable and stable business in spring 2016.
Roles and Responsibilities
Market Opportunity
Opportunity
As the first Butler branded product of its kind, BU Tattoos has a the opportunity to be extremely
successful. Of the 170 students, parents, alumni and fans who participated in our interest survey,
Chief Executive
Officer
Kaitlyn Sawin
Chief Operations
Officer
Alex Bartlow
Chief FinancialOfficer
Andrew Brothers
Chief
Communications
Officer
Matt Goff
Chief Marketing
Officer
Jana Olson
Chief Sales Officer
Thomas Kopelman

4. 68% of respondents stated that they were interested and
would wear a customized temporary tattoo. This response
proved that there is an interest for Butler branded tattoos for
individual sale, especially for larger campus wide events.
Bulk sales also proved to be an area of interest, with many
organizations showing interest, as well as two successful bulk
order sales during the proof of concept period.
Customer and Innovation Value Propositions
BU Tattoos provides customers with an affordable solution to generate superior spirit. Temporary
tattoos are an inexpensive accessory and are suitable for a variety of occasions. By offering multiple
designs, BU Tattoos is able to cater to the tastes of our vast target market. The ability to sell the
tattoos individually or in bulk provides customers with multiple opportunities to purchase this
product based on their needs.
BU Tattoos provides a product that customers want and that competitors do not offer. As a true
temporary tattoo offering, customers can expect a high-quality product that is skin-safe and simple
to apply and remove. Additionally, individual sales allow consumers to choose the designs they
want, rather than being required to purchase a sheet of tattoos that may or may not all be worn.
Referto the Canvas document in the Appendix for a more detailed look at CVP and IVP.
Target Market Research
Temporary tattoos are a segment of the $3 billion beauty accessories market, which is currently
experiencing increased innovation and growth. Temporary tattoos are popular on college campuses,
as they are an inexpensive way to show school spirit. Traditionally, there is an interest in this
product from a younger demographic, however there has been an increase in the desire for this
product by the 18-24 year old age group. One of the growing trends among this demographic is the
application of metallic tattoos as an inexpensive, but statement accessory.
Taking this information into account, BU Tattoos focused proof of concept sales on their primary
target market, which were individual sales to Butler students. While there was success in this area,
the proof of concept period unveiled the opportunity in the market for bulk order sales. A total of
1,500 tattoos were sold through two bulk orders. BU Tattoos has shifted their focus to this market
for spring 2016 sales. Individual sales will still be offered for some of the most exciting campus
events, but this shift in focus will create a more profitable business.
Profit Opportunity
In a two-week trial selling period, conducted in fall 2015, BU Tattoos was able to generate over
$750 in net profit. The business was able to quickly reach the break-even point, largely due to bulk
sales, which made this amount of profit possible. Because of the success of bulk sales during the
two-week selling period, BU Tattoos recognizes the profit potential in this segment of the business.
The potential for bulk sales is further discussed in the Proof of Concept of the plan.
68%
32%
Would Wear
Would Not Wear
GraphA: Tattoo Interest

5. Proof of Concept
In its initial rollout, BU Tattoos released three designs: two traditional solid color and one metallic.
In order to better suit customer needs, each tattoo will be sold as an individual option rather than a
sheet of multiple designs. This will allow customers to pick their two favorite tattoos for just $3.
Two bulk orders, one to a church youth ministry program and another to a high school, were
successfully completed during this period, as well.
Order Details
Design
The greatest challenge that BU Tattoos faced during the proof of concept period was finding a
design that customers liked, that competitors did not already offer, and that didn’t infringe on
trademark agreements. BU Tattoos considered four sets of design options before bringing the
product to market.
The final designs were chosen based on feedback from potential customers, as well as critical
analysis of our target market. The designs that were selected included two traditional, solid-color
temporary tattoo options and one metallic option. Tattoo offerings included the newly branded
Butler bulldog logo, the popular “GO DAWGS!” phrase, and a silver paw print. During sales, BU
Tattoos received positive feedback regarding the designs that were offered.
Order Breakdown
Five hundred tattoos of each design were ordered during the proof of concept, for a total of 1,500
tattoos available for individual sale. While this quantity was greater than desired for proof of
concept sales, five hundred unit minimum order quantities created a barrier.
Additionally, two successful bulk orders required the purchase of an additional 1,500 tattoos.
BU
FINAL DESIGNS
Customizedbulkordertattoosdesigns

6. Sales Details
Times and locations were chosen based on projected periods of increased traffic on campus. With
the return of Butler Basketball, there was increased excitement and school spirit, and therefore, an
increased desire and need for our product. On the days prior to the basketball games (October 30th
& November 6), sales occurred at both Starbucks and within the residence halls. The selling times
were chosen with first-year students in mind, as they were most likely to attend the first games and
be interested in buying our product for the event. Selling on Sunset Avenue near the parking garage
and Hinkle Fieldhouse on game days (October 31 & November 7) put us in the direct path that
connects campus with Hinkle, making it difficult to go unnoticed by consumers. A total of forty
hours of sales were completed during the proof of concept period in order to prove the viability of
our product.
Sales were most successful at the location on Sunset Avenue near Hinkle Fieldhouse, followed
closely by sales at Starbucks. This location is in a high traffic area and caught consumers at a time
when a need for this type of product was at the forefront of consumer’s minds.
Item Total Cost Unit Cost
1000 Solid Color Tattoos $252.36 $0.25
500 Metallic Tattoos $162.00 $0.32
1500 Tattoos for Bulk Order $332.85 $0.22
Total Cost $747.21 Avg. Unit Cost: $0.24
Key Takeaway - With four opportunities for purchase and increased traffic on campus due to Family
Weekend activities, November 6-7 were projected to be BU Tattoo’s most successful days for
individual sales. As predicted, these two days yielded the greatest amount of sales. This is likely due
to greater opportunities to wear the tattoos, as well as the introduction of the metallic design to the
market.
Table A: Order Breakdown
8-9 AM- BUDT Clinic
5-7 PM - Sunset Ave.
Table B: POC Selling Times and Locations – October & November 2016
30 31
1 2 3 4 765
2-4 PM - Starbucks
6-8 PM - Residence Halls
11-1 PM - Starbucks
5-7 PM - Sunset Ave.
11-1 PM - Starbucks
6-8 PM - Residence Halls 11-1 PM - Starbucks
& Sunset Ave.
Bulk Order Shipped

7. Selling – Individual
BU Tattoos evaluated seven significant selling opportunities to maximize revenue per hour
throughout the proof of concept period. These dates coincided with some of the largest campus
activities that occurred during the fall semester and were projected to attract a large number of
students and fans. Since BU Tattoos is most likely to be worn at an event, sales were concentrated
to appropriate locations and times immediately leading up to such occasions. A total of forty selling
hours were completed.
Selling – Bulk Orders
Two bulk orders were successfully completed for a total sale of 1,500 units. Rockford Lutheran
High School and Heartland Church purchased customized product from BU Tattoos and were
satisfied with the orders. The sales reduced labor hours needed and proved the profitability in bulk
orders. Reaching out to high schools, non-profits, festivals and events, as well as campus
organizations has the potential to continue the trend of success in this sector.
Financial Results
Income
Break Even
BU Tattoos was able to break even by the second day of sales because of the income received from
the bulk orders. The bulk orders decreased the overall break even point and only made it necessary
to sell 84 individual tattoos (42 sales at 2/$3) in order to cover costs.
BU Tattoos Proof of Concept Break-Even
Amount Bulk Sales Individual Sales
$793.77 3 265
Key Takeaway - In order to
break even, BU Tattoos must
sell 445 units or 223
individual sales at our normal
retail pricing. Bulk orders will
allow this number to
decrease.

8. Litmus Test
Based on net profit and completed labor hours, BU Tattoos made approximately $35.53 of profit for
each hour of labor. The ability to make a significant profit proves that our business is viable.
Remaining Inventory
Approximately 30% of the total inventory was sold after the final proof of concept sale. However,
the large minimum order quantity makes the success of the business look skewed. Despite this fact,
the temporary tattoos proved to be easily profitable. Following the last selling event, 500 tattoos
were purchased by a campus organization. During the two-week period, a total of 69% of total
inventory was sold. The remaining inventory, roughly 500 units, will be liquidated at cost or
distributed among team members for personal use.
Lessons Learned
 More effective business model lies in bulk sales – There is greater profitability in bulk
sales and it is an easier option for sale. Bulk sales remove several labor hours and are in
demand.
o Spring 2016 Action – Focus efforts on bulk sales by securing at least one bulk sale
per week.
 Individual sales most popular during an event – Sales were significantly higher on days
of events rather than days leading up to them. This is likely due to the consumers not
thinking ahead, but seeing a need for the product as they prepare for the event.
o Spring 2016 Action – Select strategic selling times in order to maximize profit and
remove unnecessary labor hours.
 Greater interest from female target market – Market research predicted that there
would be a greater interest fromfemale customers. This proved to be true and this result will
allow us to better cater to this market in the future.
o Spring 2016 Action – Cater designs towards female market and reach out to
organizations looking to provide a beauty accessory product to the female market.

9. Marketing
Target Market
BU Tattoos was created to develop superior spirit among students, alumni, and fans of Butler
University. By providing the timeless product of temporary tattoos, we were able to appeal to our
large and wide-ranging target market. This simple, safe, and inexpensive product can appeal to the
4,800 Butler students as well as the thousands of fans attending any Butler event.
BU Tattoos is a member of the $3 billion beauty accessories market, which is currently
experiencing increased innovation and growth. Temporary tattoos have traditionally seen a large
demand from a young demographic, but sales have picked up due to the growing trend amongst 18-
24 year olds. One of the growing trends among this demographic is the application of metallic
tattoos as a statement piece.
Proof of concept sales proved that the focus of BU Tattoos should be on bulk sales. This allows for
profitable sales and the elimination of the labor costs that come with individual sales. By selling
bulk orders to organizations, BU Tattoos will be able to reach a larger market as well. The latest
trends and desire to display school spirit leads BU Tattoos to believe that marketing directly to
Butler University students will yield success. However, individual sales must be strategic in order to
cater to market needs.
Table C: Target Market
Primary Target Market Secondary Target Market
● Bulk Sales On/Off Campus
● High Schools, Organizations, Festivals,
Church Groups, Sports Teams
● Individual Sales to Current Butler
Students
Approximately 4,800 people
There is a perception that temporary tattoos are more likely to be popular among a female audience
and primary research proved that this to be true. There is a stronger preference towards temporary
tattoos by females, with 83% saying that they would wear a branded temporary tattoo versus only
42% of males. Based on the demographic makeup of Butler University, there are approximately
2,800 female students, which still provides as a large customer base for BU Tattoos. Males,
however, did state that they would be more likely to wear a solid-colored tattoo, especially at a
charity event (Reference Graph A, Graph B). While males did support the business, there was a
much stronger female representation.
Primary research regarding the use of temporary tattoos at charitable and sponsored events was
positive, which leads BU Tattoos to believe that this sector will expand our potential for success.

10. Competitive Analysis
Due to low barriers to entry and high profit margin, there are many companies producing temporary
tattoos. Many of these options can be found sold by the sheet, in various designs at major retail
outlets. However, because of BU Tattoos’ unique business model, which allows customers to
purchase customized Butler themed tattoos, in a “mix-and-match” format, there is only one true
competitor.
The Butler University Bookstore offers two varieties of repositionable decals that can be applied to
hard surfaces such as laptops, lockers, or notebooks, as well as the body.
Table D: Competitive Analysis
BU TATTOOS BOOKSTORE
Product Butler themed temporary tattoos Butler University branded decals
Product Use
Meant to be worn on body Repositionable, can be put on a variety of
surfaces
Design
Metallic and solid-colored
options
Simple, solid color design
Product Selling
Price
2 tattoos for $3 Option 1: 6 stickers for $5
Option 2: 12 stickers for $5.95
Unit Selling Price
$1.50 / unit Option 1: $0.83 / unit
Option 2: $0.50/unit
Key Takeaway – Consumer
interest in having a
temporary tattoo that
supports a charitable cause
will provide an opportunity
for BU Tattoos to research
the opportunity of expanding
into this market.
Graph B: Tattoo Interest for Sponsored Event

11. BU Tattoos has a competitive advantage over the University Bookstore in this market. Based on the
current offerings, BU Tattoos will be the only option available to offer high quality tattoos in
multiple designs. Our company also has an advantage by being the only provider of Butler designs
in the trending metallic style. While the bookstore has many products to offer, BU Tattoos focuses
solely on increasing spirit with temporary tattoos.
Our manufacturers, 4Imprint and GoldInkTattoo, can be viewed as a competitor for bulk sales.
Organizations that want a customized bulk order of tattoos could place an order directly with these
manufacturers, but BU Tattoos can act as a middleman in the process. BU Tattoos removes the
work of finding a vendor, working with the manufacturer, and tracking the order progress. BU
Tattoos makes the process of ordering and receiving the order painless for the consumer. However,
the low barrier to entry has the potential to affect sales and margins, which could be combatted by
lowering prices if necessary.
Marketing Mix
Product
BU Tattoos was created to develop superior spirit among students, alumni, and fans of Butler
University. The company name was chosen because it is simple, straightforward and memorable in
the minds of our customers. BU Tattoos emphasizes the importance of fostering more excitement
and school spirit on our campus.
Survey results displayed that students were most interested in the trending metallic “flash” tattoos,
closely followed by a standard, solid-color temporary tattoo. BU Tattoos caters to both of these
consumer desires.
Graph D: Consumer Preferences
The tattoos from both manufacturers are safe for skin application, easy to apply and easy to remove.
BU Tattoos holds the competitive advantage in this aspect because current offerings in the
University Bookstore are repositionable decals that look similar but do not comparably perform to a
traditional temporary tattoo. BU Tattoos’ offerings last longer but are simple to remove when
desired.
Key Takeaway – Consumer
preferences are strong towards
metallic and solid-color tattoos.
Rather than pursuing all three
options, focusing efforts on two
styles with multiple designs will
create greater success.

12. The two by two inch tattoos are protected by a piece of transparent plastic that is removed prior to
application. On the back of the tattoos, company information and application instructions are
included. Having the tattoos for sale individually will allow for customers to choose the designs
they want, rather than being required to purchase a sheet with only some designs that they enjoy.
This method of sale will also create growth opportunities with bulk orders.
Price
Table E: Price Analysis – Individual Sales
BU TATTOOS Metallic Solid-Colored (Navy)
Cost of Good $0.32 $0.25
Revenue per Unit Sold $1.50 $1.50
Gross Profit per Unit Sold $1.18 $1.25
Individual and collective market research data suggests that consumers would be willing to pay up
to a maximum amount that is over $4.00 for a sheet containing two temporary tattoos. With this in
mind, BU Tattoos considered many factors when forming a cost-plus pricing strategy. BU Tattoos
will sell two tattoos for $3.00, which equates to a selling price of $1.50 per unit. During the proof
of concept period, BU Tattoos found that customers were willing to pay this price for the product
and will therefore continue to sell at this price.
The price of a bulk order will be based on the quantity that is ordered. As the quantity increases, the
price per unit will decrease as an incentive to purchase in larger quantities. The minimum order
quantity for bulk orders is 500 units per design.
Quantity Price Cost Profit Profit Margin
500 Solid Color Tattoos $300.00 $116.18 $183.82 61%
1000 Solid Color Tattoos $450.00 $232.36 $217.64 48%
1500 Solid Color Tattoos $600.00 $332.85 $267.15 45%
This price for individual sales is lower than the maximum value consumers place on BU Tattoos
products; however, it is a higher cost per unit than our main competitor. Our competitor is selling a
similar product for between $0.67-$1.00 less, but BU Tattoos has the competitive advantage as it
provides a true temporary tattoo solution. This higher cost is a direct reflection of BU Tattoos
product quality. The cost-plus pricing strategy is the one best suited for enabling BU Tattoos to
achieve its financial goals.
Place
Based on our identified primary target market, bulk sales to on- and off-campus organizations will
allow for a greater potential for profit. We plan to reach out to the following organizations to
provide a custom temporary tattoo solution for special events:
Table F: Price Analysis – Bulk Sales

13. ● Dawg Pound
● Athletics Department
● Office of Admissions
● Student Affairs
● Spirit Teams
● Basketball Band
● High Schools
● Parent and Alumni
Relations
● Charitable Events
● Homecoming
● Sponsored Giveaways
● Butler University
Student Foundation
● Student Orientation
Guides
To cater to the secondary target market, selling efforts will be focused on large campus events.
Individual sales will be strategically continued through the first half of the semester to cater to
the end of basketball season and the spring break market.
Date Campus Event
January 10, 2016 Butler Men’s Basketball vs. Villanova
January 16, 2016 Butler Men’s Basketball vs. St. John
January 27, 2016 Butler Men’s Basketball vs. DePaul
February 2, 2016 Butler Men’s Basketball vs. Georgetown
February 13, 2016 Butler Men’s Basketball vs. Xavier
February 16, 2016 Butler Men’s Basketball vs. Creighton
March 02, 2016 Butler Men’s Basketball vs. Seton Hall
March 05, 2016 Butler Men’s Basketball vs. Marquette
These events will draw large crowds of spirited fans to campus, making it the ideal time to offer
our product. In order to reach the greatest number of potential customers, the BU Tattoos team
will be at multiple locations around campus. Selling locations near the parking garage and
Hinkle Fieldhouse/Butler Bowl will allow BU Tattoos to come in contact with many students,
parents, alumni and fans while they are on the way to basketball games. Purchasing a Butler
temporary tattoo on the way into the game will allow customers to show increased school spirit
at a low cost. Games with high projected attendance or sell-out potential, such as Villanova,
Xavier and Georgetown have high potential for sales.
Other large campus events in spring 2016 include:
● Spring Sports Spectacular
● Butler University Dance Marathon
● Freshman Skits
● Spring Break
● Greek philanthropy events

14. Promotion
BU Tattoos will need to not only inform potential customers about the product, but also alert them
to sales. Developing product interest will be key to creating brand awareness and sparking interest
in the product. However, BU Tattoos was successful despite a lack of promotion during proof of
concept sales.
The best way to reach the primary target market is through direct communication with the
organizations. Speaking with a representative from an organization and encouraging them to
purchase BU Tattoos for their events will be the most effective way to influence this market to
purchase. This does not require any special promotional materials; however, a promotional deal
maybe beneficial in securing bulk order sales.
Based on the habits of the secondary target market, utilizing social media to interact and inform will
yield the greatest results. Promotions will run via social media accounts and will allow a more
personal relationship with consumers. Though no social media promotions were utilized, this is an
area that can be explored should sales be slow.
BU Tattoos did not find a use for excessive marketing and advertising efforts. By providing a high-
quality product and strategically selecting sale times and locations, sales were not difficult to
achieve. However, advertising, promotions, and publicity will help drive BU Tattoos’ success
during spring 2016. Because BU Tattoos is a small company, effectively making customers aware
of the product available will be critical. The promotion strategy for BU Tattoos, as listed below,
provides simple and effective ways of reaching consumers should additional promotion be
necessary.
● Sidewalk Chalk Advertisements
o Cost and time effective way to reach a large audience
o High traffic areas will increase product awareness and brand recognition
● PuLSE Office Approved Poster Advertisements
o Relatively inexpensive way to advertise for BU Tattoos
o Attract attention and provide sufficient information
● Face-to-Face Marketing/Word-of-Mouth Promotion
o Speaking to individuals and encouraging them to buy BU Tattoos is the most
effective way to increase sales
o Creates personal relationships and increases the chance of repeat buyers
o Allows BU Tattoos to receive feedback and make necessary adjustments
● Social Media Promotion
o Popular outlet among target demographic
BU Tattoos @BU_Tattoos @BU_Tattoos15 butattoos@gmail.com

15. o Reaches a wider audience in a time-effective manner
o Ideal for promotions
▪ Customers can receive a discounted tattoo when they share a picture and
mention our company on social media
▪ Uses the influence of others to expand our market
An effective promotion for the tattoos that was utilized during the proof of concept period was a
sales promotion. BU Tattoos sold five tattoos for $5 or two tattoos for $3. In doing this,
consumers were more apt to buy a larger quantity of tattoos as they were under the impression
that they were receiving a deal that they must take advantage of.
Future Opportunities
Based on research and feedback, there is a significant desire for this product outside of the Butler
campus. There is a strong interest and potential for sales at area high schools, festivals, and from
various Indianapolis events and organizations.
Organizations to Contact:
● Local High Schools – Carmel, Cathedral, Park Tudor
● Indianapolis Sports Teams – Pacers, Colts, Indians, Fuel
● Large Conventions for use as giveaways
● Charitable Events – Relay for Life, Charitable Fun Runs
● Sorority and Fraternity Headquarters
Research and contact with high schools proved that there is an interest in providing a product of
this nature for students. Contacting the athletics department, booster club and student sections at
large, athletics-focused schools provides for a large sale and profit, especially by requiring a
minimum order.

16. Operations
Production
Manufacturers
BU Tattoos works with two manufacturers in order to bring our customized tattoos to the market.
The solid color tattoos are produced by 4Imprint and the metallic tattoos are produced by
GoldInkTattoo. 4Imprint is a Butler University licensed vendor, which allows for ease in the use
of all Butler logos. Both manufacturers have worked with large, well-known companies, which
proves their credibility and reliability. Fast production and great customer service also
demonstrate that these companies are beneficial business partners.
Designs
Based on leanings from the proof of concept period, BU Tattoos made the executive decision to
provide only two designs for future individual sale due to the shift in focus towards bulk sales.
This will allow the company to be more profitable and have less inventory on hand.
The bulldog logo and the metallic paw print proved to be the most popular designs during the
proof of concept period. Design options can be expanded in the future based on sales and
consumer interest.
Bulk Orders
Based on cost and production schedules, it is suggested that all bulk orders are focused on solid
color tattoos only. 4Imprint has a fast turnaround time and is able to provide a variety of options
for art. When ordering from 4Imprint, the price per unit decreases as the requested quantity
increases and multiple designs can be included for a minimal extra charge. It is beneficial to
order 1000 units or more at a time to avoid any unnecessary costs. Alerting bulk order customers
that orders are placed every two weeks allows for a greater chance for the company to order a
larger quantity at one time.
The ability to customize bulk orders allows for sales from organizations of any kind. Art files
can be easily submitted to a customer service representative with the manufacturer and turned
into production-ready images.
SolidColorBulldogLogo MetallicSilverPawPrint

17. Financials
Loan Request Breakdown
BU Tattoos is requesting a $1,000 loan in order to effectively run the business in the spring
2016 semester.
Item Amount
Individual Sale Inventory $285
Advertising Expense $100
Miscellaneous Expense (petty cash) $150
Bulk Order Expense* $465
Total $1,000
*Bulk order expense is the cash needed to purchase bulk order inventory before payment is
received
Financial Highlights
Gross Margin
 BU Tattoos' gross margin for spring 2016 is 66 percent.
Net Income
 BU Tattoos’ net income for the spring 2016 semester amounts to $3,561.
 This total is over 50 percent of the total revenue of $6,900.
Break-Even
 Only 2 bulk sales are needed to break-even in the spring of 2016.
 The break-even point is only at 11 percent of projected bulk sales.
Loan Refunding
 Loan request amount totals to $1,000.
 Will have sufficient cash flows to pay back loan within the first month.

18. Spring 2016 Financial Projections
Income Summary
BU Tattoos
Projected Income Statement
Spring 2016
Revenues:
BulkOrderSales $5,400.00
MetallicTattoos $750.00
SolidColorTattoos $750.00
Total Revenue $6,900.00
Total Cost of GoodsSold $2,376.00
GrossProfit $4,524.00
Expenses:
WagesExpense $1,060.00
AdvertisingExpense $100.00
MiscellaneousExpense $150.00
InterestExpense $13.00
Total Expenses $1,323.00
NetIncome $3,201.00
Financial Assumptions
All calculations are based on the following assumptions:
 Individual Sales:1,000 individual units during the semester.
 Bulk Sales: Assume an average of 1 bulk order per week to a business or organization.
o Bulk orders are purchased in groups of 1,000 units.
 Labor hours, rates, sales per hour:
o 106 total selling hours
o Wages amount to $10 per hour of work
o 10 individual sales per hour of work
o This leads to an Individual Ending Inventory of 0 by Week 8
Break Even Analysis
Total Fixed Plus Starting Inventory Costs $548
Break Even Bulk Sale
Sales Price $300.00
Units 2
Sales Dollars $600
Key Takeaway - $548 in sales is
needed to break even. BU Tattoos
will accomplish this after
completing 183 individual sales
(366 tattoos) or 2 bulk sales. The
break-even point is at 11% of
total bulk sales.

19. Contingency Plan
If sales are less than expected in the spring 2016 semester, BU Tattoos has the margin to lower
the price, if necessary. Decreasing the price of individual units by $0.50, and lowering the price
of bulk order sales by $25, will generate sales and still allow BU Tattoos to break-even in the
expected selling Week 2. The 33% discount for individual units and 8% discount for bulk orders
are more than sufficient to enable BU Tattoos to sell its product mix at a price that will increase
sales.
If tattoo sales are greater than projected, due to our established relationship with our vendors,
4Imprint and GoldInkTattoo, additional orders can easily be placed. The orders will need to be
custom made, but we are able to receive the tattoos in a timely manner.
4Imprint – Seven business days are required for production. Roughly five additional days
should be factored in for art and licensing approval, invoicing and payment, as well as
shipment of the product. Product can be received within 2-3 weeks based on customer need.
GoldInkTattoo – The business model of GoldInkTattoo makes the reorder process more
difficult. GoldInkTattoo only runs production two times per month in the second and fourth
weeks, which makes timing crucial. The manufacturer’s average turnaround time is ten
days, but can be expedited if necessary.
Repayment Plan
The profitability of BU Tattoos combined with the break-even point that is reached in Week 2,
allows the business to begin paying back the loan relatively early in the semester. Based on
financial projections, half of the $1,000 loan will be paid back in Week 5. The remaining $500
will be returned in Week 8. The separation of borrowing repayments allows BU Tattoos to have
adequate cash on hand if potential scenarios were to occur that are described in the Contingency
Plan section.

20. Appendix

23. References

29. References
● Beauty Accessories - US - September 2015. (n.d.). Retrieved September 27, 2015, from
http://www.researchmoz.com/beauty-accessories-us-september-2015-report.html
● Butler University Bookstore
● Butler University Student Life. (n.d.). Retrieved September 29, 2015, from
http://colleges.usnews.rankingsandreviews.com/best-colleges/butler-university-
1788/student-lifehttp://colleges.usnews.rankingsandreviews.com/best-colleges/butler-
university-1788/student-life
● Current Butler University students