* Business Plan Assignment Mrs.

Cindy Olson Tuscola Technology Center, Caro, MI This assignment will take most students four to six weeks to complete but can be adjusted to fit individual needs. Upon completion students will complete a working business plan that can be created alone or in groups. Students wishing to become sole proprietors should work alone, while others considering partnerships and corporations should work in groups with one to three participants. This lesson plan is in line with Marketing Education esource Standards where several performance indicators are met. !dditionall", the lesson is also in line with core academics. English #anguage !rts $ Students will work to complete a polished plan that will re%uire extensive research and revision. The entire process will re%uire man" drafts. &nstructors should meet with students one on one and suggest spelling and grammar changes until the work is of professional %ualit". Students will also place their finished work into a 'ower'oint project that the" will deliver to the class where the" will demonstrate professional literac" and communication skills. Math $ Students will learn about pricing, markup, and advanced financial statements such as income statements, balance sheets, and cash flow. (ne re%uirement will be to complete a working ) month income statement.

Each section of the lesson plan includes performance indicators and specific assignments that students must master before completing each written section of the business plan. This is an excellent assignment which will help students to understand the work that goes into a business plan. (nl" professional %ualit" work will be accepted.

Business Plan Assignment Part One: Introduction Teacher Notes: Provide examples online or in print of executive summaries. Have students evaluate the effectiveness of each summary. Have students keep their favorite summaries to use for later. Explain that the executive summary appears first but is written last. A: Executive ummary: +reate a one page summar" for "our plan. !ppears first but is done last. This is a ver" important part of "our plan and should include details about marketing, finance and operations. Teacher Notes: Performance Indicator: rite persuasive messa!es.

In class cooperative learnin! assi!nment: Have students work in pairs to write a mission statement for school store or "E#$ chapter. %efore writin! their own mission statement for their plan. B. Business Philoso!hy"Mission tatement: Example ,ull Service -air Salon. .e will offer a variet" of hair care and skin care services that our customer will find superior to the competition. (ur business will have a famil" friendl" atmosphere that will meet the needs for ever"one in the home. (ur customers are our number one priorit". The salon experience will include competitive prices, an excellent staff and a wide variet" of service offerings for our target customer to choose from. Ever" customer will be completel" satisfied or she/he will be entitled to a full refund. Teacher Notes: Performance Indicators: "etermine needs for venture creation& Explain tools used by entrepreneurs used for venture plannin!& "evelop and or provide provide'service. In class cooperative learnin! assi!nment: "ivide students into !roups of three and have them !enerate a list of ten current societal needs and or wants. Then have them exchan!e their list with another team who will create a correspondin! business idea for each need or want. (tudents can then use these ideas to !enerate product and service plans. Individual $ssi!nment: P) *ap ++& Identify methods'techni,ues to !enerate product ideas.

C. Product" ervice #escri!tion: #escri$e the products and/or services "ou will be providing. Tell about the consumer benefits and wh" "our chosen product/services will be successful. 1ou must also include retail prices in this section and estimate how man" units "ou will sell for each product on a monthl" basis. Please see a!!endix one %or a &or'sheet. Exam!le %or a Full ervice alon 2 3alue 'rice !dult +ut4 ! lower priced offering for conservative adults. +ustomer will have the option to leave without st"ling. 2 'remium !dult -air +are (ption4 ,ull service option will include consultation, wash, cut, deep conditioning and st"le. +ustomer will be offered coffee or small beverage 2 5id6s +ut 2 !dult Set 2 .edding/,ormal -airst"le 2 Tanning 7eds 2 Manicures 2 'edicures 2 +hildren6s To"s in wait area 2 efreshments

Teacher Notes: PerformanceIndicator: Prepare a resume. Individual Assignment: Studentsshould first developa resumeand then use what is on the resumeto create a narrative for the next section. #. el% Analysis: Explain wh" "ou are a good candidate for starting up "our business. &deas to ponder4 reliabilit", creativit", teamwork skills, education 8what "ou have done thus far4 relevant courses such as Marketing and 7usiness Management9 also explain "our future plans for education such as college etc.:, list special talents such as computer skills, discuss success in sports or organi;ations. This shows that "ou are a team pla"er and that "ou follow through on "our commitments.

? Part II. Mar'eting (esearch

Teacher Notes: Performance Indicator: Explain the nature of market research. #lass activity: Have students !o to census site and find statistics for their home town. (tudents should make a verbal report on the statistics for a summation activity at the end of the class period. Individual $ssi!nment: I) *ap A. )o to www.census.!ov to descri$e the %ollo&ing econdary (esearch: a. )eogra!hic #ata: 'opulation description that tells how man" people live in a certain area. $. #emogra!hic #ata: Statistics such as age, gender, income and marital status, famil" si;e. 1ou will want to include the data that will have a direct impact on "our business. ,or example, in our salon example we are creating a famil" atmosphere so "ou would want to show that there are families with spending power in "our area. B. Primary (esearch: Explain what methods of marketing research "ou will be rel"ing on such as surve"s, focus groups or both. 'lease include a cop" of "our marketing research surve". C. Com!etition: !s a new business owner, "ou must anal";e "our competition. a. <irect +ompetitors4 7usinesses selling similar products and services. 8Mc<onald6s vs. 7urger 5ing: $. &ndirect +ompetitors4 7usinesses selling different products while fighting for a customer6s disposable income ( bowling alle" vs. movie theatre: state wh"/how "ou will do a better job than "our competitors. &deas to ponder4 product offerings, better service, better pricing philosoph". Etc. #. Mar'et egment Analysis Target Customer: - Using the secondar" data collected previousl", help the reader to understand exactl" who "our target customer is and wh" this customer would want to purchase "our product/service. Example4 The target customer who will be fre%uenting the salon is a )=>== "ear old mother. She is ver" bus" with her job and with her children and needs to have choices about the service offerings based upon her schedule. She cares about her appearance because she is a professional person who needs to look the part at her job. She sometimes brings her children with her, so it is important that there are product offerings for the entire famil", including something for the children to do while the" wait. She is price conscious, "et exceptional service is the ver" important factor to her. She expects high %ualit" service and will take her business elsewhere if the staff does not meet her expectations.

= E. Analysis o% Potential *ocation4 'lease include the following information in narrative form. *. Exact location of the business. +it", state, etc4 1ou ma" need to use a commercial real estate site. 'lease include mortgage or rent pa"ments as "ou will need to know this latter on. 0. .ill "ou rent or bu" the propert"@ ). !re "ou in a mall, free standing building, home garage, or virtual space. ?. .hat will "our hours of operation be@ =. .hat do the parking facilities look like@ A. &s the neighborhood safe@ B. .ill "ou be near a complimentar" business@ . Part III. Organi+ation and Personnel Plan Teacher Notes: Performance Indicators: Explain types of business ownership. (elect form of business ownership. Individual $ssi!nment: %$ *aps . and /. A. O&nershi! Choices: 2 Sole proprietorship4 eas" to open and close. Unlimited liabilit". 2 'artnership4 !re all of the partners general partners or is an"one a limited partner@ Ceneral partners share all of the ownership/liabilit", while limited partners normall" act as investors. 2 +orporation 4 More paperwork and government intervention. #ess liabilit". 2 Explain wh" have "ou chosen this t"pe of ownership@ Teacher Notes: Performance Indicators: "etermine hirin! needs& harmoni0e tasks and pro1ects. *esson :"emonstrate how to create an or!ani0ational chart usin! )icrosoft office.

B. Personnel ,eeds: State who will do what and who will report to whom. +reate an organi;ational chart that will show working relationships. This will need to be done using Microsoft office.

A Part I-. Mar'eting Plan Teacher Notes: Performance Indicators: Explain marketin!2s importance in a !lobal society. Explain the concept of marketin! strate!ies. Explain types of advertisin!. Explain the role of promotion as a marketin! function. Explain nature and scope of pricin!. Explain the nature of channels of distribution. Individual $ssi!nment: P3 *ap 4& I) *ap .& P3 *ap .& PI lap 5& )6 *ap + and )% *ap 4. A. Pro!osed Product or ervice Plan: <escribe "our business and "our products in detail. ,or example, "ou will want to stress wh" "our proposed products/services will be successful. .hat are "ou going to do that will set "ou apart from "our competitors@ emember that successful product marketing goes be"ond a list. .hat intangible product offerings will "ou be providing such as warranties and/or services@ B. Pro!osed Pricing Policy: 2 'roposed markup to over costs 4 0DE, )DE, ?DE etc. 2 elationship to competitors4 below, above, the same 2 .ill "ou do an" introductor" discounting to attract customers@ 2 !re "ou going to drive profits through volume 8small profit margins where "ou will sell a lot of product, or are "ou going for a prestige appeal@: C. Pro!osed Promotional Plan : Personal !romotion: .ho will be doing the personal selling@ ,on>!ersonal !romotion: (verall advertising strateg" and short term promotional events to create enthusiasm. #. Place .distri$ution/ #escri$e your location in detail4 .hat will it look like@ &nclude a description about the parking facilities and other amenities that will make "our business outstanding. #istri$ution Plan: -ow will "ou get "our product into "our customer6s hands@ .ill "ou make and sell "our products on site 8direct distri$ution/ or will "ou include other intermediaries such as manufacturers or producers .indirect distri$ution/. Most service businesses will use direct distribution 8think of a hair salon for example:. Most retail businesses will use indirect distribution, as the business owner will need to rel" on manufacturers and suppliers for his or her products.

B Part -. 0inancial Plan Teacher Notes: Performance Indicators: Explain the nature of cash flow statements& Explain the nature of balance sheets& "escribe the nature of income statements. Individual $ssi!nment: 7I laps 8 and 9. ,inancial 'lans are ver" important and cash flow, income statements and balance sheets are all necessar" for all plans that would be presented to a banker. ,or this plan an income statement will be re%uired. 1ou will use "our revenue forecasts, and other expenses to format "our income statement. 'lease see appendix two for a worksheet that "ou ma" use. !dditionall", please include a narrative about "our abilit" to make pa"ments and "our financial histor".

A!!endix I 1 Product ervice 2or'sheet Product"service (etail Cost Adult -alue cut Premium et 3! do"0ormal Cut co%%ee !o! donuts 45.66 85.66 86.66 :6.66 47.66 ,"A ,"A ,"A ,"A ,"A

3nits Per Month"totals 76 9 9 ; 45

<ids (e%reshments

totals

A!!endix T&o: Income tatement 2or'sheet: Month * Month 0 Month ) (evenue ales *ess: (eturns ,et ales Cost o% )oods old Beginning Inventory Add: !urchases Total )oods *ess: Ending Inventory Total C) )ross Pro%it .,et ales 1 Total C) / O!erating Ex!enses Advertising .a!rox. 5= o% revenue/ Pro!erty taxes Insurance alaries Payroll taxes .45= o% salaries/ Total Ex!enses ,et Income or *oss.)ross Pro%it 1 Ex!enses/

Totals