Reference no: EM132165718

Assignment

a. identify what "Industry" area your business is located. It must be a commercial recreation business, not a facilitator.

b. What type of business are you starting? Give a brief description and a location (City or closest metropolitan area) where the business will be located.

c. Write a "mission statement" for your business (usually 2-3 sentences). Be sure to include the name of the business in the mission statement.

d. List (bullet list) & briefly describe what services you "will" and "will not" offer. Be specific. If you offer tours/activities/classes list each type.

e. List (bullet list) and briefly describe what "differentiates" your business. What are you trying to do better or differently?

f. Identify the "most appropriate" legal entity for your business organization and WHY you chose it.

Section 2. Marketing

a. Identify the market area (city, etc.) and population and growth of your market area (all socio-economic and demographic factors) U.S. Census (2010)(Type the name of your City in the Quick Start (Geography) box and Click Go; then select: total population, median income, educational attainment levels - 25 years and over- for high school graduate; bachelor's degree; graduate/professional degree, gender-total population, ethnic groups-total population, and maybe age groups-total population); then Click View (located at the top of the page).

b. Identify and list other competitive services in your market area. In a bullet list include: the name of every competitor, their pricing structure, and their advantages over your business?

c. Include your Demand calculation from Assignment 2 Business Demand Total Demand = ________________________

d. Identify the local ordinances, zoning regulations and type of trading area affecting your business.

NOTE: The answer to this question is "your business will be located in a business or commercially zoned area."

Unless you are operating an aquatic facility or have food preparation at your business then you would have to address local health codes.

e. Identify your building needs (NOTE: you are required to have an office, but you may NOT use a home office):

What is the square footage needed for office, dock, equipment warehouse etc., (estimate)

How many parking spaces are needed, (estimate)

What is the availability and proximity of public transportation,

What is the labor supply (labor supply is the unemployment rate),

What entity provides fire and police protection.

f. Identify if you will build your own facility or rent and why.

Section 3. Advertising Plan

a. Identify, your pricing strategy(ies), and why you selected them?

b. Describe where in the Product Life Cycle your products or services are located. This refers to the industry not your specific business.

c. Identify the form(s) of advertising, be sure to include all of the following:

Specific type of media such as newspaper, radio, tv, web site, rack cards, magazines, etc.).

Include the cost of each type of media used.

You HAVE to include the cost for a web site. You DO NOT develop one.

Section 4. Business Expenses

a. Create a Start-up Expense table (use the table format, and DO NOT include this as an Excel file) of your start-up costs (fixtures; specific equipment; specific inventory; office supplies; remodeling; utility deposits; legal fees; and license/permit fees. Be sure to include the Total Start-up amount $_____.

b. Describe the funding source(s) for financing your business. YOU MUST PROVIDE 20% (NO MORE OR LESS THAN 20%) OF THE TOTAL

REQUIRED FUNDING FROM PERSONAL/FAMILY/FRIENDS/PARTNERS. No grants or donations may be used as a funding source. Provide the following information for your business loan:

1. The name of the financial institution

2. Terms of your bank loan (number of years to repay);

3. Total amount borrowed (this is 80% of your total start-up costs);

4. Interest rate;

5. Monthly payment (This is also a line item in your Overhead and O&M budgets); and

6. You must cite your source for the financial institution in this section AND in the References

NOTE: You can also check for information at Small Business Administration

Section 5. Overhead Table & O&M Budget

a. Create a one month Overhead Table (you MUST use the sample table format) listing all MONTHLY overhead expenses; rent/mortgage, utilities,benefits and payroll taxes, payroll wages (even if you are the owner, you have to list yourself as an employee for wages and payroll taxes), etc. for one month (overhead line items are the same as the line items in your 12 month O&M expenses) listed as line items.

b. Estimate your business's first twelve months income and expenses . A 12 Month Operations & Maintenance (O&M) budget format is required. Your revenue is calculated using the information from your demand. The expenses are the same line items as in the Overhead table. (See item 5a).

To calculate your pro forma (projected) revenue, take your "demand" number from assignment 1, then determine your average price for your service and multiply that by the demand.

Example: 24,000 jeep tour customers (demand from item 2c) x (your jeep tour company offers 1 hour tour - $55/person and 3 hour - $85/person so to get the average $55 + $85=$140/2=$70) so 24,000 x $70=$1,680,000 total revenue. Then it is up to you how to divide it up in to the 12 months revenue for the two revenue line items (1 hour tour and 3 hour tour) but the total revenue should still show $1,680,000.

Sample 12 Month O&M Budget - You MUST use this O&M Budget format.

Section 6. Per Unit Cost & Capital Budget

a. Determine the "Per Unit Cost," show all calculations, from the 12 month O&M budget, use the Total Expenses amount / divided by your total demand (See item 2c).

b. Prepare a separate capital budget (Capital items are planned to enhance or expand the business and are usually one time purchases of expensive (over $1,000) and long lasting 3+ years (i.e.: computer, vehicle(s), buildings, etc.). Start-up items are NOT capital items. Start-up items and capital items DO NOT appear in the O&M budget. You MUST use the Capital Budget format.

Note: You must include at least four capital line items and use the sample Capital Budget format.