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Startup Sussex Application Process
The document provides information on starting a small business called Brandalism Cafe, including developing a business model, determining startup and operating costs, creating financial forecasts and sales plans, and identifying challenges and learning opportunities. It discusses defining the customer, pricing structure, and profit margins. Details are given around financing requirements, cost of goods sold, setting prices, and sales volumes needed to cover fixed costs.
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Startup Sussex Application Process
- 2. Key issues :FurtherResearch • Balance sheets • Profit and loss • Cash Flow Forecasting • Budgeting and Planning • Record Keeping • Credit Control Please contact me direct for more information; paulj@sinc.co.uk
- 3. Business Model Build • Who is the customer. • What does the customer value. • How do we make money in this business • What is the underlying economic logic that explains how we deliver value to customers at an appropriate cost Peter Drucker 1909-2005
- 4. Finance • How muchmoney will you need to start the business • What will it cost to make and sell your ………?. • What will everything else cost • What is the profit or surplus on each sale • What will you charge and why.
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- 6. Start with theEnd in mind • Hypothesis and Validation • Make lists • Research and Test
- 7. Brandalism Cafe START UPCOSTS • SET UP COSTS • RUNNING COSTS OR FIXED COSTS
- 8. Brandalism Cafe • Price •Variable Costs • Fixed Costs • Surplus/profit
- 9. Variable cost • PRICE£2.50 • COFFEE £ • MILK £ • SUGAR £ • TOTAL £0.50 • Gross Profit £ 2.00 (Price less production cost = gross profit) • £2/£2.50 % = 80%...80p in every £1
- 10. • Running costsfor a year £12000 • For a month £1000 • Total sales income needed to pay overheads • £1000/80% = £1250 • £1250 /£2.50 = 50O CUPS • 500/24 Working days= 21 cups a day Sales plan is 21 cups a day
- 11. Plan for aSurplus IF Fixed Costs £12000 Surplus £10000 Total now needed £22000 Divide by 80% The only way to know if this Sales £27500 stays the same is to Divide by £2.50 constantly update the costs. 11000 cups pa. 916 pm Regular reporting? 38pday (24 days in month) Sales plan.. sell 38 a day
- 12. Finance • How muchmoney will you need to start the business - £20k • What will it cost to make and sell your £0.50p • What will everything else cost. £1000 pm • What is the profit or surplus on each sale £2.00 • What will you charge and why. £2.50. (Competitive Strategy from research..)
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- 15. Award Criteria • students, staff or recent graduates (graduated within 1 year) • over the age of 16 • living in the UK for the duration of the project • who are individuals or part of an informal group
- 16. Award Criteria Projects must: • benefit the public or a community in the UK • demonstrate a connection to the Higher Education Sector • need a HE Social Entrepreneurship Award to ensure their success • offer a learning opportunity for the applicant(s) • be a new initiative – not a continuation of ongoing operations • not be part of the applicant’s paid employment • be an entrepreneurial solution to a social problem • instigate social impact or social change • not be for activities outside the law, against public policy or anything that fosters ethnic, religious or commercial disharmony
- 17. Your Vision; Pleasedescribe your business/ project when it’s successful. 100 words Max. Suggestions: • Description of the finished product or service • How will customers discover the product or service • Who is using it • When and how will revenue and profit be generated • How will it be delivered and who is involved
- 18. What is/ arethe problem/problems you are solving? 100 words Max. Suggestions; • What job are people trying to get done • How big is the problem • Why do people care about the problem, • What's the pain suffered/ difficulty experienced • What have you done to understand the problem
- 19. What are thecurrent solutions? 50 Words Max. Suggestions: • What is the current solution • What are the major failings • Who delivers the solution • How many deliver solutions • Is the solution part of something else- over developed/expensive
- 20. What is yoursolution? 100 Words Max. Suggestions: • How does your solution solve the problem • How easy is it to use will it change behaviour • Do you offer the whole solution • What are the unique features and benefits • Why hasn’t anyone found a solution before
- 21. Potential customers &market? What is the potential demand. 50 Words Max. Suggestions: • Whose a typical customer and who will buy it first. • How big is the market now and likely in 5 years • How do they buy the current solution, will that be the same for you • Is there a lot of competition in the market, who dominates the market • Is the market growing, is it a global opportunity
- 22. What costs? Whatpricing? What finance? Any evidence available 50 Words Max. Suggestions: • What will it cost to make and sell. What is the profit on each sale • What will you charge and why. • How many will you sell and when will you start selling • How much money will you need to start the business • What will you use the award for
- 23. How far haveyou come in terms of developing the proposed venture? 50 Words Max. Suggestions: • Concept / prototype/ Does it work • What research has been done or is needed to complete the project. cost? • Who have you asked for help; technical/customers/ buyers/sellers • Is this the complete offering or first feature of a larger offering • What other funding have you explored
- 24. What are thechallenges/barriers to success? Identify key milestones 50 Words Max. Suggestions; • Money needed to deliver the first sale • Market knowledge • Personal skills • Time • A working product or service
- 25. Please outline personallearning and development that you hope to gain from this project 50 Words Max. Suggestions • How to skills • Skills needed as an entrepreneur • Personal strengths and weaknesses • Team building • Creative problem solving
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- 28. http://www.sussex.ac.uk/careers/newsandevents /startupsussex
- 29. The Complete Beginner's Guide to Accounting Christopher Turner Financial Control for Non-financial Managers David. Irwin
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