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Simply Creative
Business Plan
Tony Neari, Tyree Purham, Elizabeth Ortlepp, Nathan
Komlanc, and Cole Goodman
3200 Cold Spring Rd
Indianapolis, In 46222
p. 513-504-7890 simplycreative@gmail.com
Simplycreative.org
Table of Contents
I. Executive Summary...................................................................................3
II. Introduction...............................................................................................4
III. Opportunity Analysis.................................................................................4
Target Market...................................................................................................................4
Survey and Pie chart........................................................................................................5
SWAT Analysis................................................................................................................6
Consumer Income...........................................................................................................6
Products Need to Operate.............................................................................................7
Location, Size, Type Layout..........................................................................................7
Competitive Analysis......................................................................................................8
Macroeconomic Climate................................................................................................9
Opportunity Cost..........................................................................................................11
IV. Financial Analysis.................................................................................... 11
Product Price..................................................................................................................11
Reason for Price............................................................................................................11
Scenario Analysis...........................................................................................................11
Startup Capital................................................................................................................12
Financial Statements.....................................................................................................12
Income Statement.........................................................................................................12
Retained Earnings.........................................................................................................13
Cash Flow.......................................................................................................................15
Balance Sheet..................................................................................................................15
V. Operations Plan.......................................................................................17
Forms of Organization.................................................................................................17
Time Sheet......................................................................................................................18
Operation Plan...............................................................................................................18
Gantt Chart.....................................................................................................................19
Organization of Company...........................................................................................19
Process Flow..................................................................................................................19
VI. Marketing Plan........................................................................................20
Promotion.......................................................................................................................20
Logo and Motto.............................................................................................................20
Preorder Form...............................................................................................................21
Flyer .................................................................................................................................22
Guaranteed Sales ...........................................................................................................22
VII. Conclusion...............................................................................................23
Executive Summary
Simply Creative is a t-shirt design company that produces t-shirts specifically for the use
of clubs and intramural sports. Our goal is to be passionate about what we do as well be
successful in means of being profitable by providing our service and product to clubs. The
product demand for our club includes many variables. Variables such as that our targeted
consumer which is clubs college students will most likely have a generally low income. The
consumer preference for our targeted market is that they want high quality for low price. We
provide both of those. The price of our product from other companies is something that we
match up well with at $12 dollars and are below the price range of most of our competitors, but
still don’t raise questions with quality of the shirt at that price. The number of consumers we
have brought down from 2,660 students on Marians campus to the number of students in our
target market at around 700 students that participate in clubs and school organizations. The
elasticity of demand for our product is very elastic and our product is a luxury because it is not
something that our target market needs. The macroeconomic that have an effect on our business
are the GDP which is at a good level, the unemployment rate which is fairly high at the moment
but does not greatly affect our sales because our target market is in college and the clubs are not
greatly influenced by unemployment, the last CPI which is in favor of our business. The product
pricing that we have analyzed has led us to an estimated sales of 400 t-shirts. The fixed cost per
unit is $0.86 and variable cost per unit is $4.97. Also the accounting profit per unit is $6.17 and
all of these things are at the estimated sales mark of 400 t-shirts. We calculated our product
pricing and estimated level of sales based on our scenario analyzes and macroeconomic climate.
The way we will divide up our income during is the person that physically makes the individual
t-shirts will be paid fifty cents per shirt; when we decide to end our operation of the business we
will keep a record of the amount of work put in, whether that be marketing, making, or meeting
with our customers, and then divide the profit by the percent of work put in by each individual.
The reasons that we will succeed is that we have two preorders that put us past the breakeven
point and have an existing relationship with our customers. So remember “don’t debate, simply
create.”
Introduction
Simply Creative is the place to go for custom t-shirts. It's fun, convenient, and easy to
print your t-shirts with Simply Creative. The company wants to serve club, intramural and other
events on Marian University’s campus. We will do this by purchasing a heat press and printer in
order to make these t-shirts on campus at a lower price that does not require shipping and
handling. It is localizing the business of t-shirt buying to a company you know and trust and can
go directly talk to.
Currently our clubs go to outside t-shirt printers such as Custom Ink, Bright Ideas and
other online t-shirt making vendors. We want to offer them the same, if not better quality, t-shirts
that they are getting from these current vendors at a more local and cost efficient price. We are
going to personally meet with each club leader to discuss what they would like to see on their
club shirts. If all of the club t-shirts work out we hope to expand our business to individuals on
campus and possibly online where each person
Opportunity Analysis
Target Market
To break down our target market, we would have to start with the number of students that
attend Marian University. There is 2,660 students that attend Marian University. Of the 2,660
students there is over 700 of them that are in clubs. There is 30 clubs in total at Marian
University that are involved in SGA (Student Government Association). As a business we stress
clubs and are targeting potential customers in clubs because that is where we will generate most
of our profit from. We have taken into account as well that some of these students may be in
more than one club. The demand is there for our product already. This is shown through a
survey that we took at one of the SGA (Student Government Association) meetings. There was
24 clubs present at the SGA meeting. The amount of clubs interested in our product was 16, 4
were maybes, and 4 were not interested at all. To provide the number of t-shirts for those
interested then we will need to make 692 t-shirts which is well over our break-even point.
Survey and Pie chart
SWAT Analysis
Strengths: One strength that we have is our knowledge of our targeted market. Our
business separates ourselves from the other businesses because we know exactly where we need
to go to meet with our target market. That meeting place is every other Thursday in the Ruth
Lily Center located on Marian’s campus. Another strength is that our team works as one and
divides up tasks to complete a common goal very well. A third strength is that two of our team
members Tony Neari and Elizabeth Ortlepp have experience using Photoshop, a program needed
for the designs on the t-shirts. Another strength that we have is that we are a face to face
company and this separates us from our competitors because they are all online.
Weaknesses-The main and only weakness that our group has is lack of experience. None
of us have had experience in running a business and at times it may be more of a learning
process. Also none of us have made t-shirts before, so that just reiterates that at times it is going
to be a learning process.
Opportunities- One opportunity that we have with this business is to sell it to Marian
University. We would give them our heat press, printer, printing paper, hanging racks, and
hangers at a price that would be beneficial for us. Another opportunity that our business has is to
branch off into individual sales and to target individuals on Marian’s campus, rather than just
clubs.
Threats-The threats for our business is outside competitors. These outside competitors
include companies like Custom Inc. that sells shirts at $20-$22 for 1-5 t-shirts, UniversiTees that
sells t-shirts at $22.49, and Vistaprint sells their t-shirts at $6-$17.99. Another threat to our
business is the marketing department at Marian University because they could disapprove
designs that are created by the clubs which could lead to a longer process of making the t-shirts.
Consumer Income
Consumer income for our business is well off. This is because clubs at Marian University
get half of their t-shirt prices paid for by Student Government Association (SGA) the other is
paid by the students and they have a very low income because they are college students. It also
varies on certain factors. These factors are whether or not the college student has a part-time job,
how much money they are receiving from their parents, and how the budgets the clubs. But we
are only asking our end user, which is the students to pay $6!!
Products Need to Operate
There are multiply products that Simply Creative needs to start operations. First we need
a heat press which will be 15in by 15in. This will be used to actually put the images on the t-
shirts. The second thing we need is a computer program which will be photo shop and it will be
used to either tweak clubs designs or make designs for clubs. The next products are printer,
paper, and ink. Simply creative will also need hangers, racks, money box, and boxes. The
hangers and racks will be used to dry the shirts after the image is pressed to the shirt. The final
product that we will need is of course t-shirts which will be Gildan heavy cotton adult active
wear.
Location, Size, Type Layout
Our business Simply Creative is an on campus and off campus service meaning that we
will meet, market and sale on campus in the library but the off campus location we will do the
production of our actually product. We considered a vast amount of locations to start operations
in such as Clare, Doyle, and 5126 North College Lane and also 3536 Leathearbury Lane but we
eventually came to a mutual agreement on 5126 North College Lane. The reason this location
attracted us and was very convenient was because it was a spacious place to operate from
without distractions; it has a lot of storage space and its close enough to campus that we could
operate our on campus service from there without any hassle or setbacks. The best part about our
meeting marketing and sales location we can changer it in a moment’s notice considering the
environment in the library that day. If it’s too loud or too crowded we can move the meeting to
one of the many halls on campus that provide the privacy and comfort that we would need to seal
the deal with are customer.
Our business believes we can succeed at our current locations for an abundant amount of
reasons. The production location that we’ve chosen has a minimum amount of distraction
considering it’s an alternate location to where we are actual conducting are transactions and our
customer meetings. Our production location has little to no foot traffic meaning our working
space and conditions should be the perfect environment to produce our shirts; package them up
and ship them out. The location for meeting, marketing and sales is also ideal because it’s never
too loud and there’s never too many people around considering the library has 4 floors. The
library also has conference rooms within it that we can conduct our business with the club leader
in a professional and effective manner. Our business Simply Creative is set up in the same place
as our target market which makes our location excellent to operate in. We believe by placing our
business exactly where our target market is this should maximize our sales produce a great profit
for the business.
Competitive Analysis
The reason our target market will prefer our product over our competitors is because we
provide the same if not better quality than our competitors. We have a fair price at twelve
dollars for our customers. Plus we personally meet with our customers rather than just order
online so that they know what their product will look like each step of the way. The price of
other goods and services that our customers may go to instead of us are Custom Inc. that sells
shirts at $20-$22 for 1-5 t-shirts, Bright Ideas makes you call for pricing, UniversiTees sells
them at $22.49, and Vistaprint sells their t-shirts at $6-$17.99.
As far as our competition goes as a business we are ahead. We are a better choice for our
value, the personal sale, and we have standing trust with our target market. We have greater
value due to our prices being lower, while still offering equal quality. The personal sale is met by
being able to meet with each of our individual consumers and answers any of the questions they
have. Our target market consists of the heads of each individual clubs through the annual SGA
(Student Government Association) meetings.
As far as the value of our product goes we are a superior choice due to a lower price
being offered. The price we are offering to the club heads is $12, this is to meet with SGA
guidelines, and with the SGA budgeting for the cost of T-shirts the price that each club pays,
50% would be paid by SGA. As a result the final price per person in a club would only be $6.
The quality of our shirts are equal if not greater to the current shirts bought by each club. The
shirts are Gildan, which are one of the best selling t-shirts, Heavy cotton blend.
The greatest thing sets us apart from our competition though is the ability of our
consumers to meet with us and for our production being the only thing that is off-campus. We
want to rely heavily on our ability to personally meet with each consumer that has taken and
interest in our company. The production of our shirts may be off campus but the marketing,
delivery, and even our residence is on-campus, which gives our consumers plenty of ways to
come and meet with us.
The SGA is the association that runs and regulates each and every one of the clubs on-
campus. They meet every other week and are open to Marian university students. This is a huge
benefit so we can meet with each club head and create a personal relationship. This will be done
by each member speaking to different groups and answer all questions they might have about our
business. We have talked about even bringing a box of donuts or pizza just to show our
commitment to this business and to our consumers.
Macroeconomic Climate
The elasticity of demand for our product is that our product is very elastic. The reason
for this is that if we were to raise the price of our t-shirt then our customers would not purchase
it. Our product is also a luxury because it isn’t something that is a necessity for people to have.
When it comes to product demand for our product, if it falls then our customers will go to other
t-shirt providers like Vistaprint, UniversiTees, and the on campus Bookstore that provides shirts.
Macroeconomic Climate
Unemployment rate is the percentage of total workforce who is unemployed and is looking to
for a paying job. Unemployment rate is the most closely watched statistics because a rising rate
is seen as a sign of a weakening economy that may call for a cut in interest rate. A falling rate
indicates a growing economy which is usually accompanied by higher inflation rate and may call
for increase in interest rates. The unemployment rate as it is right now is around 8%. This is
better than where it was at which was around 10%. According to the graph the unemployment
rate looks like it is going down which can be good for our business. The way a high
unemployment rate would affect our business is by having higher federal and state taxes.
Another way is it weakens consumer buying because people do not have spare money to buy
goods or services. High unemployment rate could also encourage more people look in to
entrepreneurship. That can hurt our business by creating more competition. A low
unemployment would help our business because people will have spare money to buy more
goods and services.
Gross Domestic Product or GDP represents the value of all goods and services produced
in a country. GDP is used to measure the economic output of a country. The growth of GDP is
monitored heavily by the Federal Reserve to determine if the economy is growing too slowly, if
at all, or too quickly. The term recession refers to two consecutive quarters of economic
contraction in GDP. The GDP figures in the U.S. are released quarterly, that is every 3 months.
Over the last 5 years GDP has gone from 14219.3 in 2008 to 15684.8 in the present day.
This represents an average increase rate of 3% over the next year. The GDP at the time that we
would open our business in January is estimated at 17098.27. This is a positive for our small
business from a financial and a sales stand point. With these figures I am confident in our
success chance in marketplace.
For small businesses, such as ours, GDP is an important measure of current business prospects.
With GDP on the rise as it is projected to in the next year small businesses profitability has a
greater probability of occurring. From a financial view our business looks more profitable and is
more likely to succeed, prospective investors and even banks are more confident in our ability to
pay back our loans. As GDP is on the rise it is a factor showing that there is enough economic
growth to ensure our continued profitability. GDP increasing will result in our planning for a
brighter future filled with expansions.
The Consumer Price Index or CPI is published by the bureau of labor statistics. It
measures the change in prices paid by consumers for a representative group of products and
services, such as transportation, food, and medical care, to give a few examples. The CPI is used
to measure inflation at a consumer level. The Consumer Price Index is used as the economic-
wide measure of inflation and is used to determine annual cost of living adjustments to social
security payments and employee paychecks.
This year the CPI reached an all-time high of 233.94 Index Points in September. At the
start of 2008 the CPI was at a level of 213 Index points. At an estimated average of 232 Index
points with increase from last year at 228.618 and gives an increase percentage of 2.27%. With
rate of increase CPI is expected to increase to 236.5 as of January 2014.
The United States Bureau of Labor Statistics measures two kinds of CPI, CPI for urban
wage earners and clerical workers (CPI-W), and the chained CPI for all urban consumers (C-
CPI-U). Of the two types, the C-CPI-U is a better representation of the general public, because it
accounts for about 87% of the population. This would add to the understanding of our consumers
and how it will be in the future.
CPI is one of the most used statistics for labeling periods of inflation or deflation. This is
because large rises in CPI during a short period of time typically denote periods of inflation.
While large drops in CPI during a short period of time usually show periods of deflation. This
would provide our business with a report of how well our supplies prices would change and if
other alternative products prices would fall.
Opportunity Cost
The other business ideas that we had come up with seemed to be either unreasonable or
not as profitable as the one that we have now. One business idea that we had was breakfast carts.
That idea failed with us because we thought that we lacked the experience with food and no one
had much passion towards this idea. The second idea that we had was to start a Pawn Shop.
This idea failed because we didn’t believe we could make it apply to just college students. A
third idea that we had was starting a Laundry service. This idea we thought had potential to be
profitable because we thought we could use the free washing machines and dryers that Marian
provides us. The downfall of this idea is that we didn’t think college students would feel
comfortable with us handling their clothes. Also we believed that since our university provides
the use of a washer and dryer for free that most students would be frugal with their money and
not spend it on our service.
Financial Analysis
Product Price
The estimated level of sales is 400 t-shirts. The fixed cost per unit is $1.52 at the
estimated sales mark of 400 t-shirts. Which includes the heat press, printer and other fixed costs.
The variable cost per unit at the estimated sales mark of 400 t-shirts is $5.72. This includes the
price of t-shirts, ink, paper and pay role. The accounting profit per unit is $4.76 at the estimated
sales mark of 400 t-shirts. Our breakeven point is at 97 shirts.
Reason for Price
Simply Creative is a business that has to be flexible with our prices and the demand for our
product based on our consumer market, so if the macroeconomic climate for our business states
that our business will not be successful in the current climate we will have to adjust our estimated
level of sales or decrease our price.
Stated in our product pricing it cost of $5.72 in variable costs to make a t-shirt with a design
printed on it. We have different scenario analyses based on the quantity we believe we will sell
and the price we think that we can sell our product.
Scenario Analysis
In our Scenario Analysis chart below we see that if we price our t-shirts at a low price of
$10 our break-even point, this is when we have paid of our fixed cost per unit, is at 143 shirts. If
we only sell 200 shirts we would only pay off 72% of our loan off. In contrast if we sell the same
amount of shirts but it is mid-priced at $12 we would break-even at 97 shirts and would pay back
our loan 116.3% which would mean that we would have a profit to slit among the five of the
owners of the business. If we did this at a mid-quantity we would be able to pay off our loan and
accrue revenue in all pricings low, mid, and high.
ScenarioAnalysis Quantity Low Price $10 Mid Price $12 HighPrice $14
BreakEven Low Quantity 143 Shirts 97 Shirts 74 Shirts
Total Profit 200 Shirts $663.04 $1063.04 $1463.04
Percentof Loan paidoff 72% 116.3% 160%
BreakEven Mid Quantity 143 Shirts 97 Shirts 74 Shirts
Total Profit 400 Shirts $1669.04 $2469.04 $3269.04
Percentof Loan paidoff 182.6% 270% 357.7%
BreakEven HighQuantity 143 Shirts 97 Shirts 74 Shirts
Total Profit 600 Shirts $2675.04 $3875.04 $5075.04
Percentof Loan paidoff 292.5% 423.9% 555%
Startup Capital
To begin Simply Creative, we need a loan or startup capital of $750 to help get our
business started. This money will allow us to purchase all of our fixed cost including our heat
press and printer.
Financial Statements
Income Statement
The process of creating Financial begins with the creation of an Income Statements
which is a summary of our revenue, expenses and our net income or loss for a specific period of
time. The Income Statements we created were at the beginning of the competition as of the
month ended May 10, 2014. The Income statement is a useful tool since it reports the change in
financial condition due to the operations of the company. It also shows the major reason why
business operations occur, to gain revenue, first.
The Revenue section of the Income Statements is listed as sales. The Sales line is found
by multiplying the price paid by your consumers by the total number of units sold, which in our
case is 12 multiplied by 400 T-shirts sold. The Expenses section of the Income Statements is
listed as Cost of merchandise sold, production expense, interest expense, and advertising
expense. The Cost of merchandise sold is found by multiplying the variable cost per unit, which
involves ink, printer paper, pay, and the t-shirt, by the total number of units sold, which in our
case is 5.72 multiplied by 400 T-shirts sold, which is $2288. The production expense which
involves the equipment needed for production such as heat press, printer, hangers and racks,
boxes, money box, and the program Photoshop, which comes up to $611. Interest expense takes
into account the interest paid for our $750 loan for three months, which is $15. Advertising
expense is the last expense in our statement at a total of $10 due to our use of social media. This
brings our total expenses up to $2924 with our net income of $1876.
Copy of the Simply Creative Income Statement
Retained Earnings
The follow up to the income statement is the Retained Earnings Statement which reports changes
in financial condition due to changes in financial condition due to changes in retained earnings
for a period. The Retained Earnings are the portion of a corporation’s net income that is retained
in the business. The Retained Earnings are the earnings retained as the net income added from
the income statement minus the dividends. The increase in retained earnings are added to the
earnings retained for the corporations for the entire life of the business.
The Retained Earnings Statements is followed by the Statements of Cash Flows which
reports the change in financial condition due to the changes in cash during a period. The
Statements of Cash Flows is organized around the three business activities of financing,
investing, and operating. Any changes in cash must be related to one or more of these activities.
Copy of the Simply Creative Retained Earnings Statement
Our Statement begins with our Operating Activities which consist of the three major parts
of our Income Statement. The accounts are re-defined to show the flow of cash more accurately,
such as Sales being renamed as Cash received from customers which equals out to $4800. The
total operating activities account is renamed as the Cash payments for operating activities which
equals $2909. The interest expense is shown separately to show the amount of loans and interest
on rentals. The net income account from the income statement was renamed as the net cash flows
from operating activities.
The follow up to the Operating activities was the Investing activities which shows the
loan needed to be paid, the sale of common stock, and the payment of dividends. The entirety of
our loan, which is labeled as Cash received from short-term loans, is $750 with an interest of
only $15. The sale of Common Stock is labeled as the Cash received from the sale of Common
stock and is equal to $5 a dollar for each member of our group. The payment of dividends is
labeled as the Cash payments for Dividends is shown as $5 which pays back our shareholders to
reward them for our commitment. The Net cash flow from financing activities is equal to $750
due to receiving of capital stock being equal to the dividends paid out, with the only other factor
taken into account being the amount of the short-term loan, which is equal to $750.
Cash Flow
The final section to the Statements of Cash flows is the Net increase in cash which is
equal to $2626. This section shows the changes in cash over the course of the all the businesses
operations. The total change in Cash for the operation of our business is $2626 due to the lack of
a starting balance.
Copy of the Simply Creative Statements of Cash flows
Balance Sheet
The last Financial Statement used by our business is the Balance Sheet. The Balance
sheet is divided up to the three key parts of the Accounting Equation, which are Assets,
Liabilities, and Stockholders Equity. The Balance sheet reports the financial condition as of a
point in time. This is in contrast to the income statement, retained earnings statement, and
statement of cash flows, which report changes in financial condition for a period of time. The
balance sheet, sometimes called the statement of financial condition, is prepared using the
accounting equation.
The Assets sections of the statement starts with the Current assets sub-section. Which
only consists of Cash and is equal $2626, this means that the total current assets is equal to
$2626. This is the only account in our Assets section and this results in our Total assets being
equal to $2626.
The Liabilities Section of the statement starts with Current liabilities sub-section. Which
only consists of the loans payable and is equal $750, this brings the total Current liabilities is
equal to $750. The only account in the Liabilities is the loans payable so the total liabilities equal
to $750. The Stockholders Equity section of this statement is the largest individual part of the
Statements of Cash flows. The statements sub-section consists of Dividends which equals $5 and
the retained earnings, shown in the retained earnings statement, which is $1871. The total
Stockholders equity is then brought to $1876, which then makes our total Stockholders equity
and Liabilities account equal to $2626 which balances out our accounts.
Copy of the Simply Creative Balance Sheet
Operations Plan
Forms of Organization
Our companies plans to pay ourselves in two ways. The first way is while we are
producing our shirts, we plan on paying ourselves 50 cents for every shirt a team member makes.
There will be a system put in place that will keep track of how many shirts everyone makes. We
will pay ourselves every week. At the end of the semester we will split the profit left over. The
profit will be split on how much work and time each member puts towards our company,
whether that be marketing. For example if Nathan decides to put in very little time and effort in
to the company then he will get a small part of the profit.
Time Sheet
Operation Plan
The operations plan is everything that we need to do before our business starts. We have
already been making flyers and attending SGA meetings every other Thursday. Our advertising
is an ongoing process though, so those things will continue when our business is up and running.
Once when we receive the loan, which we expect to receive sometime before January 3, 2013.
We will then order our equipment on January 3 and expect it to be here by January 10. The day
that we plan to set it up and get everything ready to start running is January 13.
Gantt Chart
Organization of Company
We all do not have specific job descriptions because we should all be able to perform
every task in the process of making a t-shirt. One job is being the designer. The designer has to
use a program called Photoshop. This will help us get the designs on the computer so that we
could print them out on the special heat press paper that we have. Then the task is to make the t-
shirt, in order to do that you have to place the design on the t-shirt which is on the heat press and
then use the heat press to get the design on the t-shirt. Those are the two things that we need to
be able to do in order to make a t-shirt. It is not a complicated process so there is not a need to
divide certain job titles to individuals, since we all will be able to do this process.
Process Flow
Simply Creative process flow is steps that we will be taking every time we have an order
for shirts. The first step will to meet with the club heads individually and get preorders. This will
help us to know how many shirts the club will need, what colors and design they want on the
shirts, and what sizes they need. After that our next step will be to order the shirts, ink, and
paper. While we are waiting our supplies to arrive we will check in with Marians marketing
office to make sure that clubs logo was approved. Once the shirts, ink, and paper arrive we will
start actually making the shirts. But this steps time varies depending on the size of the clubs shirt
order. The final step will be delivering the finished product to clubs. This whole process should
only take about ten days to finish.
Marketing Plan
Promotion
Our marketing plan is unique from other businesses because we know exactly where our
target market is. Our target market meets every other Thursday each month at meetings called
the SGA (Student Government Association). The SGA is where all the club heads meet. All 30
club heads are present to represent their own club. So we are selling to 30 people. We will do
this by being present at the meetings like we have been to develop a trust and good relationship
with the customer. The awareness, intent, and purchase is there for our product. Simply Creative
already has two pre-orders that come to about 107 shirts that we need to make. The demand for
our product is clearly there and it is shown in the survey.
Logo and Motto
Don’t debate, Simply Create!
Preorder Form
Flyer
Guaranteed Sales
Simply Creative already has two preorder! The company has gotten two of the clubs at
Marian University to promise to buy from us if we ever decide to open this business. This is very
awesome for our company because we will have already have broken our breakeven point so all
of our fixed costs are paid off as soon as we open up our business.
Don’t debate, simply create
Conclusion
Simply Creative is a very profitable business. We only need a loan of $750 and will be
able to pay it back 100% plus interest by the end of the quarter. Our profit which is our revenue
minus our expenses would end up to be $1876 will be split up at the end of the quarter based on
our hours that each individual put forth towards the business. As you can see it is very
profitable, but it is also easy to run. Once when you have t-shirt design done, it takes about a
minute and thirty seconds to complete one t-shirt. So, time wise this will be a very manageable
operation. The reasons that we will succeed is that we have two preorders that put us past the
breakeven point and have an existing relationship with our customers. So remember “don’t
debate and simply create.”

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Simply Creative Written Business Plan

  • 1. Simply Creative Business Plan Tony Neari, Tyree Purham, Elizabeth Ortlepp, Nathan Komlanc, and Cole Goodman 3200 Cold Spring Rd Indianapolis, In 46222 p. 513-504-7890 simplycreative@gmail.com Simplycreative.org
  • 2. Table of Contents I. Executive Summary...................................................................................3 II. Introduction...............................................................................................4 III. Opportunity Analysis.................................................................................4 Target Market...................................................................................................................4 Survey and Pie chart........................................................................................................5 SWAT Analysis................................................................................................................6 Consumer Income...........................................................................................................6 Products Need to Operate.............................................................................................7 Location, Size, Type Layout..........................................................................................7 Competitive Analysis......................................................................................................8 Macroeconomic Climate................................................................................................9 Opportunity Cost..........................................................................................................11 IV. Financial Analysis.................................................................................... 11 Product Price..................................................................................................................11 Reason for Price............................................................................................................11 Scenario Analysis...........................................................................................................11 Startup Capital................................................................................................................12 Financial Statements.....................................................................................................12 Income Statement.........................................................................................................12 Retained Earnings.........................................................................................................13 Cash Flow.......................................................................................................................15 Balance Sheet..................................................................................................................15 V. Operations Plan.......................................................................................17 Forms of Organization.................................................................................................17 Time Sheet......................................................................................................................18 Operation Plan...............................................................................................................18 Gantt Chart.....................................................................................................................19 Organization of Company...........................................................................................19
  • 3. Process Flow..................................................................................................................19 VI. Marketing Plan........................................................................................20 Promotion.......................................................................................................................20 Logo and Motto.............................................................................................................20 Preorder Form...............................................................................................................21 Flyer .................................................................................................................................22 Guaranteed Sales ...........................................................................................................22 VII. Conclusion...............................................................................................23
  • 4. Executive Summary Simply Creative is a t-shirt design company that produces t-shirts specifically for the use of clubs and intramural sports. Our goal is to be passionate about what we do as well be successful in means of being profitable by providing our service and product to clubs. The product demand for our club includes many variables. Variables such as that our targeted consumer which is clubs college students will most likely have a generally low income. The consumer preference for our targeted market is that they want high quality for low price. We provide both of those. The price of our product from other companies is something that we match up well with at $12 dollars and are below the price range of most of our competitors, but still don’t raise questions with quality of the shirt at that price. The number of consumers we have brought down from 2,660 students on Marians campus to the number of students in our target market at around 700 students that participate in clubs and school organizations. The elasticity of demand for our product is very elastic and our product is a luxury because it is not something that our target market needs. The macroeconomic that have an effect on our business are the GDP which is at a good level, the unemployment rate which is fairly high at the moment but does not greatly affect our sales because our target market is in college and the clubs are not greatly influenced by unemployment, the last CPI which is in favor of our business. The product pricing that we have analyzed has led us to an estimated sales of 400 t-shirts. The fixed cost per unit is $0.86 and variable cost per unit is $4.97. Also the accounting profit per unit is $6.17 and all of these things are at the estimated sales mark of 400 t-shirts. We calculated our product pricing and estimated level of sales based on our scenario analyzes and macroeconomic climate. The way we will divide up our income during is the person that physically makes the individual t-shirts will be paid fifty cents per shirt; when we decide to end our operation of the business we will keep a record of the amount of work put in, whether that be marketing, making, or meeting with our customers, and then divide the profit by the percent of work put in by each individual. The reasons that we will succeed is that we have two preorders that put us past the breakeven point and have an existing relationship with our customers. So remember “don’t debate, simply create.”
  • 5. Introduction Simply Creative is the place to go for custom t-shirts. It's fun, convenient, and easy to print your t-shirts with Simply Creative. The company wants to serve club, intramural and other events on Marian University’s campus. We will do this by purchasing a heat press and printer in order to make these t-shirts on campus at a lower price that does not require shipping and handling. It is localizing the business of t-shirt buying to a company you know and trust and can go directly talk to. Currently our clubs go to outside t-shirt printers such as Custom Ink, Bright Ideas and other online t-shirt making vendors. We want to offer them the same, if not better quality, t-shirts that they are getting from these current vendors at a more local and cost efficient price. We are going to personally meet with each club leader to discuss what they would like to see on their club shirts. If all of the club t-shirts work out we hope to expand our business to individuals on campus and possibly online where each person Opportunity Analysis Target Market To break down our target market, we would have to start with the number of students that attend Marian University. There is 2,660 students that attend Marian University. Of the 2,660 students there is over 700 of them that are in clubs. There is 30 clubs in total at Marian University that are involved in SGA (Student Government Association). As a business we stress clubs and are targeting potential customers in clubs because that is where we will generate most of our profit from. We have taken into account as well that some of these students may be in more than one club. The demand is there for our product already. This is shown through a survey that we took at one of the SGA (Student Government Association) meetings. There was 24 clubs present at the SGA meeting. The amount of clubs interested in our product was 16, 4 were maybes, and 4 were not interested at all. To provide the number of t-shirts for those interested then we will need to make 692 t-shirts which is well over our break-even point.
  • 7. SWAT Analysis Strengths: One strength that we have is our knowledge of our targeted market. Our business separates ourselves from the other businesses because we know exactly where we need to go to meet with our target market. That meeting place is every other Thursday in the Ruth Lily Center located on Marian’s campus. Another strength is that our team works as one and divides up tasks to complete a common goal very well. A third strength is that two of our team members Tony Neari and Elizabeth Ortlepp have experience using Photoshop, a program needed for the designs on the t-shirts. Another strength that we have is that we are a face to face company and this separates us from our competitors because they are all online. Weaknesses-The main and only weakness that our group has is lack of experience. None of us have had experience in running a business and at times it may be more of a learning process. Also none of us have made t-shirts before, so that just reiterates that at times it is going to be a learning process. Opportunities- One opportunity that we have with this business is to sell it to Marian University. We would give them our heat press, printer, printing paper, hanging racks, and hangers at a price that would be beneficial for us. Another opportunity that our business has is to branch off into individual sales and to target individuals on Marian’s campus, rather than just clubs. Threats-The threats for our business is outside competitors. These outside competitors include companies like Custom Inc. that sells shirts at $20-$22 for 1-5 t-shirts, UniversiTees that sells t-shirts at $22.49, and Vistaprint sells their t-shirts at $6-$17.99. Another threat to our business is the marketing department at Marian University because they could disapprove designs that are created by the clubs which could lead to a longer process of making the t-shirts. Consumer Income Consumer income for our business is well off. This is because clubs at Marian University get half of their t-shirt prices paid for by Student Government Association (SGA) the other is paid by the students and they have a very low income because they are college students. It also varies on certain factors. These factors are whether or not the college student has a part-time job,
  • 8. how much money they are receiving from their parents, and how the budgets the clubs. But we are only asking our end user, which is the students to pay $6!! Products Need to Operate There are multiply products that Simply Creative needs to start operations. First we need a heat press which will be 15in by 15in. This will be used to actually put the images on the t- shirts. The second thing we need is a computer program which will be photo shop and it will be used to either tweak clubs designs or make designs for clubs. The next products are printer, paper, and ink. Simply creative will also need hangers, racks, money box, and boxes. The hangers and racks will be used to dry the shirts after the image is pressed to the shirt. The final product that we will need is of course t-shirts which will be Gildan heavy cotton adult active wear. Location, Size, Type Layout Our business Simply Creative is an on campus and off campus service meaning that we will meet, market and sale on campus in the library but the off campus location we will do the production of our actually product. We considered a vast amount of locations to start operations in such as Clare, Doyle, and 5126 North College Lane and also 3536 Leathearbury Lane but we eventually came to a mutual agreement on 5126 North College Lane. The reason this location attracted us and was very convenient was because it was a spacious place to operate from without distractions; it has a lot of storage space and its close enough to campus that we could operate our on campus service from there without any hassle or setbacks. The best part about our meeting marketing and sales location we can changer it in a moment’s notice considering the environment in the library that day. If it’s too loud or too crowded we can move the meeting to one of the many halls on campus that provide the privacy and comfort that we would need to seal the deal with are customer. Our business believes we can succeed at our current locations for an abundant amount of reasons. The production location that we’ve chosen has a minimum amount of distraction considering it’s an alternate location to where we are actual conducting are transactions and our customer meetings. Our production location has little to no foot traffic meaning our working space and conditions should be the perfect environment to produce our shirts; package them up and ship them out. The location for meeting, marketing and sales is also ideal because it’s never too loud and there’s never too many people around considering the library has 4 floors. The
  • 9. library also has conference rooms within it that we can conduct our business with the club leader in a professional and effective manner. Our business Simply Creative is set up in the same place as our target market which makes our location excellent to operate in. We believe by placing our business exactly where our target market is this should maximize our sales produce a great profit for the business. Competitive Analysis The reason our target market will prefer our product over our competitors is because we provide the same if not better quality than our competitors. We have a fair price at twelve dollars for our customers. Plus we personally meet with our customers rather than just order online so that they know what their product will look like each step of the way. The price of other goods and services that our customers may go to instead of us are Custom Inc. that sells shirts at $20-$22 for 1-5 t-shirts, Bright Ideas makes you call for pricing, UniversiTees sells them at $22.49, and Vistaprint sells their t-shirts at $6-$17.99. As far as our competition goes as a business we are ahead. We are a better choice for our value, the personal sale, and we have standing trust with our target market. We have greater value due to our prices being lower, while still offering equal quality. The personal sale is met by being able to meet with each of our individual consumers and answers any of the questions they have. Our target market consists of the heads of each individual clubs through the annual SGA (Student Government Association) meetings. As far as the value of our product goes we are a superior choice due to a lower price being offered. The price we are offering to the club heads is $12, this is to meet with SGA guidelines, and with the SGA budgeting for the cost of T-shirts the price that each club pays, 50% would be paid by SGA. As a result the final price per person in a club would only be $6. The quality of our shirts are equal if not greater to the current shirts bought by each club. The shirts are Gildan, which are one of the best selling t-shirts, Heavy cotton blend. The greatest thing sets us apart from our competition though is the ability of our consumers to meet with us and for our production being the only thing that is off-campus. We want to rely heavily on our ability to personally meet with each consumer that has taken and interest in our company. The production of our shirts may be off campus but the marketing, delivery, and even our residence is on-campus, which gives our consumers plenty of ways to come and meet with us.
  • 10. The SGA is the association that runs and regulates each and every one of the clubs on- campus. They meet every other week and are open to Marian university students. This is a huge benefit so we can meet with each club head and create a personal relationship. This will be done by each member speaking to different groups and answer all questions they might have about our business. We have talked about even bringing a box of donuts or pizza just to show our commitment to this business and to our consumers. Macroeconomic Climate The elasticity of demand for our product is that our product is very elastic. The reason for this is that if we were to raise the price of our t-shirt then our customers would not purchase it. Our product is also a luxury because it isn’t something that is a necessity for people to have. When it comes to product demand for our product, if it falls then our customers will go to other t-shirt providers like Vistaprint, UniversiTees, and the on campus Bookstore that provides shirts. Macroeconomic Climate Unemployment rate is the percentage of total workforce who is unemployed and is looking to for a paying job. Unemployment rate is the most closely watched statistics because a rising rate is seen as a sign of a weakening economy that may call for a cut in interest rate. A falling rate indicates a growing economy which is usually accompanied by higher inflation rate and may call for increase in interest rates. The unemployment rate as it is right now is around 8%. This is better than where it was at which was around 10%. According to the graph the unemployment rate looks like it is going down which can be good for our business. The way a high unemployment rate would affect our business is by having higher federal and state taxes. Another way is it weakens consumer buying because people do not have spare money to buy goods or services. High unemployment rate could also encourage more people look in to entrepreneurship. That can hurt our business by creating more competition. A low unemployment would help our business because people will have spare money to buy more goods and services. Gross Domestic Product or GDP represents the value of all goods and services produced in a country. GDP is used to measure the economic output of a country. The growth of GDP is monitored heavily by the Federal Reserve to determine if the economy is growing too slowly, if at all, or too quickly. The term recession refers to two consecutive quarters of economic contraction in GDP. The GDP figures in the U.S. are released quarterly, that is every 3 months.
  • 11. Over the last 5 years GDP has gone from 14219.3 in 2008 to 15684.8 in the present day. This represents an average increase rate of 3% over the next year. The GDP at the time that we would open our business in January is estimated at 17098.27. This is a positive for our small business from a financial and a sales stand point. With these figures I am confident in our success chance in marketplace. For small businesses, such as ours, GDP is an important measure of current business prospects. With GDP on the rise as it is projected to in the next year small businesses profitability has a greater probability of occurring. From a financial view our business looks more profitable and is more likely to succeed, prospective investors and even banks are more confident in our ability to pay back our loans. As GDP is on the rise it is a factor showing that there is enough economic growth to ensure our continued profitability. GDP increasing will result in our planning for a brighter future filled with expansions. The Consumer Price Index or CPI is published by the bureau of labor statistics. It measures the change in prices paid by consumers for a representative group of products and services, such as transportation, food, and medical care, to give a few examples. The CPI is used to measure inflation at a consumer level. The Consumer Price Index is used as the economic- wide measure of inflation and is used to determine annual cost of living adjustments to social security payments and employee paychecks. This year the CPI reached an all-time high of 233.94 Index Points in September. At the start of 2008 the CPI was at a level of 213 Index points. At an estimated average of 232 Index points with increase from last year at 228.618 and gives an increase percentage of 2.27%. With rate of increase CPI is expected to increase to 236.5 as of January 2014. The United States Bureau of Labor Statistics measures two kinds of CPI, CPI for urban wage earners and clerical workers (CPI-W), and the chained CPI for all urban consumers (C- CPI-U). Of the two types, the C-CPI-U is a better representation of the general public, because it accounts for about 87% of the population. This would add to the understanding of our consumers and how it will be in the future. CPI is one of the most used statistics for labeling periods of inflation or deflation. This is because large rises in CPI during a short period of time typically denote periods of inflation. While large drops in CPI during a short period of time usually show periods of deflation. This would provide our business with a report of how well our supplies prices would change and if other alternative products prices would fall.
  • 12. Opportunity Cost The other business ideas that we had come up with seemed to be either unreasonable or not as profitable as the one that we have now. One business idea that we had was breakfast carts. That idea failed with us because we thought that we lacked the experience with food and no one had much passion towards this idea. The second idea that we had was to start a Pawn Shop. This idea failed because we didn’t believe we could make it apply to just college students. A third idea that we had was starting a Laundry service. This idea we thought had potential to be profitable because we thought we could use the free washing machines and dryers that Marian provides us. The downfall of this idea is that we didn’t think college students would feel comfortable with us handling their clothes. Also we believed that since our university provides the use of a washer and dryer for free that most students would be frugal with their money and not spend it on our service. Financial Analysis Product Price The estimated level of sales is 400 t-shirts. The fixed cost per unit is $1.52 at the estimated sales mark of 400 t-shirts. Which includes the heat press, printer and other fixed costs. The variable cost per unit at the estimated sales mark of 400 t-shirts is $5.72. This includes the price of t-shirts, ink, paper and pay role. The accounting profit per unit is $4.76 at the estimated sales mark of 400 t-shirts. Our breakeven point is at 97 shirts. Reason for Price Simply Creative is a business that has to be flexible with our prices and the demand for our product based on our consumer market, so if the macroeconomic climate for our business states that our business will not be successful in the current climate we will have to adjust our estimated level of sales or decrease our price. Stated in our product pricing it cost of $5.72 in variable costs to make a t-shirt with a design printed on it. We have different scenario analyses based on the quantity we believe we will sell and the price we think that we can sell our product. Scenario Analysis
  • 13. In our Scenario Analysis chart below we see that if we price our t-shirts at a low price of $10 our break-even point, this is when we have paid of our fixed cost per unit, is at 143 shirts. If we only sell 200 shirts we would only pay off 72% of our loan off. In contrast if we sell the same amount of shirts but it is mid-priced at $12 we would break-even at 97 shirts and would pay back our loan 116.3% which would mean that we would have a profit to slit among the five of the owners of the business. If we did this at a mid-quantity we would be able to pay off our loan and accrue revenue in all pricings low, mid, and high. ScenarioAnalysis Quantity Low Price $10 Mid Price $12 HighPrice $14 BreakEven Low Quantity 143 Shirts 97 Shirts 74 Shirts Total Profit 200 Shirts $663.04 $1063.04 $1463.04 Percentof Loan paidoff 72% 116.3% 160% BreakEven Mid Quantity 143 Shirts 97 Shirts 74 Shirts Total Profit 400 Shirts $1669.04 $2469.04 $3269.04 Percentof Loan paidoff 182.6% 270% 357.7% BreakEven HighQuantity 143 Shirts 97 Shirts 74 Shirts Total Profit 600 Shirts $2675.04 $3875.04 $5075.04 Percentof Loan paidoff 292.5% 423.9% 555% Startup Capital To begin Simply Creative, we need a loan or startup capital of $750 to help get our business started. This money will allow us to purchase all of our fixed cost including our heat press and printer. Financial Statements Income Statement The process of creating Financial begins with the creation of an Income Statements which is a summary of our revenue, expenses and our net income or loss for a specific period of time. The Income Statements we created were at the beginning of the competition as of the month ended May 10, 2014. The Income statement is a useful tool since it reports the change in financial condition due to the operations of the company. It also shows the major reason why business operations occur, to gain revenue, first. The Revenue section of the Income Statements is listed as sales. The Sales line is found by multiplying the price paid by your consumers by the total number of units sold, which in our case is 12 multiplied by 400 T-shirts sold. The Expenses section of the Income Statements is
  • 14. listed as Cost of merchandise sold, production expense, interest expense, and advertising expense. The Cost of merchandise sold is found by multiplying the variable cost per unit, which involves ink, printer paper, pay, and the t-shirt, by the total number of units sold, which in our case is 5.72 multiplied by 400 T-shirts sold, which is $2288. The production expense which involves the equipment needed for production such as heat press, printer, hangers and racks, boxes, money box, and the program Photoshop, which comes up to $611. Interest expense takes into account the interest paid for our $750 loan for three months, which is $15. Advertising expense is the last expense in our statement at a total of $10 due to our use of social media. This brings our total expenses up to $2924 with our net income of $1876. Copy of the Simply Creative Income Statement Retained Earnings The follow up to the income statement is the Retained Earnings Statement which reports changes in financial condition due to changes in financial condition due to changes in retained earnings for a period. The Retained Earnings are the portion of a corporation’s net income that is retained in the business. The Retained Earnings are the earnings retained as the net income added from the income statement minus the dividends. The increase in retained earnings are added to the earnings retained for the corporations for the entire life of the business.
  • 15. The Retained Earnings Statements is followed by the Statements of Cash Flows which reports the change in financial condition due to the changes in cash during a period. The Statements of Cash Flows is organized around the three business activities of financing, investing, and operating. Any changes in cash must be related to one or more of these activities. Copy of the Simply Creative Retained Earnings Statement Our Statement begins with our Operating Activities which consist of the three major parts of our Income Statement. The accounts are re-defined to show the flow of cash more accurately, such as Sales being renamed as Cash received from customers which equals out to $4800. The total operating activities account is renamed as the Cash payments for operating activities which equals $2909. The interest expense is shown separately to show the amount of loans and interest on rentals. The net income account from the income statement was renamed as the net cash flows from operating activities. The follow up to the Operating activities was the Investing activities which shows the loan needed to be paid, the sale of common stock, and the payment of dividends. The entirety of our loan, which is labeled as Cash received from short-term loans, is $750 with an interest of only $15. The sale of Common Stock is labeled as the Cash received from the sale of Common stock and is equal to $5 a dollar for each member of our group. The payment of dividends is labeled as the Cash payments for Dividends is shown as $5 which pays back our shareholders to reward them for our commitment. The Net cash flow from financing activities is equal to $750 due to receiving of capital stock being equal to the dividends paid out, with the only other factor taken into account being the amount of the short-term loan, which is equal to $750.
  • 16. Cash Flow The final section to the Statements of Cash flows is the Net increase in cash which is equal to $2626. This section shows the changes in cash over the course of the all the businesses operations. The total change in Cash for the operation of our business is $2626 due to the lack of a starting balance. Copy of the Simply Creative Statements of Cash flows Balance Sheet The last Financial Statement used by our business is the Balance Sheet. The Balance sheet is divided up to the three key parts of the Accounting Equation, which are Assets, Liabilities, and Stockholders Equity. The Balance sheet reports the financial condition as of a point in time. This is in contrast to the income statement, retained earnings statement, and statement of cash flows, which report changes in financial condition for a period of time. The
  • 17. balance sheet, sometimes called the statement of financial condition, is prepared using the accounting equation. The Assets sections of the statement starts with the Current assets sub-section. Which only consists of Cash and is equal $2626, this means that the total current assets is equal to $2626. This is the only account in our Assets section and this results in our Total assets being equal to $2626. The Liabilities Section of the statement starts with Current liabilities sub-section. Which only consists of the loans payable and is equal $750, this brings the total Current liabilities is equal to $750. The only account in the Liabilities is the loans payable so the total liabilities equal to $750. The Stockholders Equity section of this statement is the largest individual part of the Statements of Cash flows. The statements sub-section consists of Dividends which equals $5 and the retained earnings, shown in the retained earnings statement, which is $1871. The total Stockholders equity is then brought to $1876, which then makes our total Stockholders equity and Liabilities account equal to $2626 which balances out our accounts.
  • 18. Copy of the Simply Creative Balance Sheet Operations Plan Forms of Organization Our companies plans to pay ourselves in two ways. The first way is while we are producing our shirts, we plan on paying ourselves 50 cents for every shirt a team member makes. There will be a system put in place that will keep track of how many shirts everyone makes. We will pay ourselves every week. At the end of the semester we will split the profit left over. The
  • 19. profit will be split on how much work and time each member puts towards our company, whether that be marketing. For example if Nathan decides to put in very little time and effort in to the company then he will get a small part of the profit. Time Sheet Operation Plan The operations plan is everything that we need to do before our business starts. We have already been making flyers and attending SGA meetings every other Thursday. Our advertising is an ongoing process though, so those things will continue when our business is up and running. Once when we receive the loan, which we expect to receive sometime before January 3, 2013. We will then order our equipment on January 3 and expect it to be here by January 10. The day that we plan to set it up and get everything ready to start running is January 13.
  • 20. Gantt Chart Organization of Company We all do not have specific job descriptions because we should all be able to perform every task in the process of making a t-shirt. One job is being the designer. The designer has to use a program called Photoshop. This will help us get the designs on the computer so that we could print them out on the special heat press paper that we have. Then the task is to make the t- shirt, in order to do that you have to place the design on the t-shirt which is on the heat press and then use the heat press to get the design on the t-shirt. Those are the two things that we need to be able to do in order to make a t-shirt. It is not a complicated process so there is not a need to divide certain job titles to individuals, since we all will be able to do this process. Process Flow Simply Creative process flow is steps that we will be taking every time we have an order for shirts. The first step will to meet with the club heads individually and get preorders. This will help us to know how many shirts the club will need, what colors and design they want on the shirts, and what sizes they need. After that our next step will be to order the shirts, ink, and paper. While we are waiting our supplies to arrive we will check in with Marians marketing office to make sure that clubs logo was approved. Once the shirts, ink, and paper arrive we will start actually making the shirts. But this steps time varies depending on the size of the clubs shirt
  • 21. order. The final step will be delivering the finished product to clubs. This whole process should only take about ten days to finish. Marketing Plan Promotion Our marketing plan is unique from other businesses because we know exactly where our target market is. Our target market meets every other Thursday each month at meetings called the SGA (Student Government Association). The SGA is where all the club heads meet. All 30 club heads are present to represent their own club. So we are selling to 30 people. We will do this by being present at the meetings like we have been to develop a trust and good relationship with the customer. The awareness, intent, and purchase is there for our product. Simply Creative already has two pre-orders that come to about 107 shirts that we need to make. The demand for our product is clearly there and it is shown in the survey. Logo and Motto Don’t debate, Simply Create!
  • 23. Flyer Guaranteed Sales Simply Creative already has two preorder! The company has gotten two of the clubs at Marian University to promise to buy from us if we ever decide to open this business. This is very awesome for our company because we will have already have broken our breakeven point so all of our fixed costs are paid off as soon as we open up our business. Don’t debate, simply create
  • 24. Conclusion Simply Creative is a very profitable business. We only need a loan of $750 and will be able to pay it back 100% plus interest by the end of the quarter. Our profit which is our revenue minus our expenses would end up to be $1876 will be split up at the end of the quarter based on our hours that each individual put forth towards the business. As you can see it is very profitable, but it is also easy to run. Once when you have t-shirt design done, it takes about a minute and thirty seconds to complete one t-shirt. So, time wise this will be a very manageable operation. The reasons that we will succeed is that we have two preorders that put us past the breakeven point and have an existing relationship with our customers. So remember “don’t debate and simply create.”