Reference no: EM132291921

This major assignment will require you to develop a complete business plan. You may use the Honest Tea example (or other sources) as guides to be sure to include all the components, but the work must be your own. Develop an idea you already have or are working on; or come up with something completely new. Upload your plan in a Word doc by the due date indicated. This assignment is worth 100 points. No late work will be accepted. The assignment will be graded as follows: Originality, completeness and presentation-80 points; Correct spelling, grammar and citations-20 points.

Guidelines for business plan

Your business plan can be for a product or service you are currently developing or one you plan to develop soon. If you have no plans to become an entrepreneur, you can “invent” a service or a product. You might get some ideas from friends or family member who would like to become entrepreneurs. Each section should be at least half a page long clearly demonstrating research and rigor. Include a cover sheet and submit by the due date in the syllabus. The business plan assignment is a mechanical one, designed for you to go through the steps and flesh out what investors and potential clients would like to know about your business and how you plan to make money. (Remember if you are not making money, it is a hobby.) The components of the business plan that you should include for this assignment are:

1. Executive Summary In this section you will show you have done the research to show that a product or service is “missing” and that your idea could fill that gap. Do not underestimate the need to do the research. For example, if you want to open a daycare center, show why that would be needed in the neighborhood where you would open the center. How many children live in that area? How many working/single parents? (You will have to “invent” some of these figures, but at least be familiar with the market.)

2. Complete description of the product or service, intended market and limitation. Following the Daycare Example, “This would be an afterschool program in my home designed to support working parents in my neighborhood in Pembroke Pines. Children will receive on-site tutoring, a snack, and support for homework completion. Parents with children between the ages of 6-12 would be the intended market.” Only ten children would be admitted to the program. Elaborate as much as possible.

3. Manufacturing or Staffing If it is a product, describe the prototype or how you plan to develop and produce a prototype. Who can manufacture it? How much might it cost to produce? If it is a service, describe the people who would be delivering the service and under what conditions. What skills, attitudes and experience would be required? What educational background, if appropriate would be needed?

4. Market Opportunity including Competitors (Direct and Indirect) Describe the market where you plan to sell or provide your product or service. Who else provides that product or service in that area? How do they promote the product/service? What is their pricing like? What do you know about the quality? Describe your competitive advantage in detail. What would make potential customers leave their current supplier and go to you?

5. Market Research Here you will fully develop what you presented in your Executive Summary. Describe the unmet need, describe the locations, the services or products that are currently available. Show how your service or product will serve a growing need; not something for right now. Your investors will want to see that you are thinking about stable and deliberate growth, not just a “flash in the pan” idea.

6. Packaging and Pricing What will set your product apart from the competition? What kind of pricing strategy will you use to over the barriers to entry in the market? Will you be offering discounts or “introductory offers?” How did you calculate your price point? Do you know what your breakeven point is? How soon will it take you to reach it?

7. Promotion Where will you advertise your product/service? How much will it cost? Will you be giving out “free samples” or “trials” to entice new customers? How much will you depend on social media? How will your market find out about you?

8. Financial Statements Do a projection for one year based on expected revenue and costs/expenses. Have you considered all the costs, including seed money, to get started? Do you know what your fixed costs, and variable costs are? Calculate your COST of GOODS SOLD based on expected sales. (You will have to do some estimates here-this is the mechanical part.) How will you establish your business? As an LLC? A Partnership or Sole Proprietor?

9. Return on Investment How will you support yourself while you are getting your business off the ground? You will need to consider that you will be earning no salary for several months until the product and service is well-established, and sales become more stable. What level of return can you offer your investors? Be as conservative as you can to avoid overpromising. Why should an investor take a chance on you?

10. Exit Strategy What if the business fails? How will you “close shop?” Is there a plan to sell if you do well and things get too big to handle for you? What if you keep losing money? What will you do to change the course of the finances? When will you know it is time to move on?