Business Development Track - School Enterprise Challenge · 2 New Business Development Plan Template 2014 PART ONE Section A: Your Details School name Ahlcon International School

1 New Business Development Plan Template 2014

Business Development Plan Template

Stage 2

Business Development Track

This template is for schools that are developing an existing school business

IMPORTANT: HOW TO COMPLETE AND SUBMIT YOUR BUSINESS PLAN

This template should be completed by students with the support of teachers.

Please use the format provided as this is aligned to our marking scheme.

There are 2 Parts to the Business Plan template.

- Part 1: Business Plan. Please answer ALL questions.

- Part 2: Financial Plan. Please answer ALL questions in Sections A-G. Section H and I are

optional.

You can use extra pages. However, please try and keep your submission to 10 pages maximum.

The numbers in brackets e.g. (10) indicates the highest number of points that can be awarded

for that question.

Follow our top tips to score high points and increase your chances of winning a prize!

You can also earn bonus points by including supporting documents in the Appendix!

When you are ready to submit your completed business development plan to us, please follow

these instructions:-

- Log in to your account at: www.schoolenterprisechallenge.org/login

- Go to the ‘Progress Report’ on the right hand side.

- Click on 2) ‘Submit Your Business Plan!’

- Choose your file and upload your completed Template. Click SUBMIT!

http://www.schoolenterprisechallenge.org/login


PART ONE Section A: Your Details

School name Ahlcon International School

Country India

Business Name Candles ‘N’ Cakes

Business Activity (E.g. Beekeeping) Customised Gifting Solutions

Main product / service (E.g.Honey) Cakes, Decorative Candles and Flower bouquets and saplings

No. of students in business team 20

Net Profit in previous year in US $ (Actual) USD 321 (1USD= 66.6 INR)

Business Development Budget in US $ (Estimated) 1157.02 (1USD= 60.5 INR)

Additional Capital required in US $ (Estimated) 1057.9

Total Sales Income in US $ (Estimated) 2446.2

Net Profit in US $ (Estimated) 1261.1

Section C: Market Research and Target Market

1. What Market Research did you do? Please include how you did your market research and how many people you spoke to. (5) In order to understand the market and the consumer base, in- depth market research was conducted

by the following means:

MARKET SURVEY was done by means of Questionnaire. Target group consisted of 50

students, 25 teachers, 35 parents and 45 nearby community members. Purpose was to

identify the customer needs and preferences of the gifts, maximum amount they are willing

to spend, their expectations etc. (Refer Appendix for the Questionnaire)

Focus group was organized for a group of 15 members consisting of 5 students, 5 teachers

and 5 parents. The objective was to identify the changing trends in gifting solutions, major

competitors, people’s expectations, ways to cater to them etc.

OBSERVATION: Our enterprise had set up a stall on parents’ teachers meeting in the month

of July, offering variety of our products, Individuals with purchase proceeds were given a

feedback form to fill to analyze their inclination towards our product and get valuable

suggestions. (Refer Appendix for the Suggestion/Feedback Form)

2. What were the results of your Market research? Please include how your market has changed and how you will adapt. Also who is going to buy your new product or service and why? (10)

In the stall , new products ( fresh flowers and sapling and decorative candles) were

introduced along with the existing ones (cakes and brownies, greeting cards) . Surprisingly,

approximately 55% of the earnings were from the newly added products to the cart.

Our customers are school students, teachers, parents and local community members.


It was observed that people in the age group of 12- 35 years were more inclined towards our

products.

Customers considered our products valuable and worth a purchase both in terms of price and

their uniqueness.

Customers appreciated the innovative idea of ‘Customized’ gifting solutions whereby they

are given the flexibility to select both the kind and type of the gift.

Also, we found that ‘Personalized gifts’ is an increasing trend, especially amongst the

youngsters.

Section D: Competitors and Competitive Advantage

3. Who are your main competitors and what are their strengths and weaknesses? Please fill in the table below. You may add extra rows if you need to. (5)

Competitor Name

Strengths What are your competitor’s main

strengths?

Weaknesses What are your competitor’s main

weaknesses?

Malls Offer wide variety

Branded and International products.

Highly priced

Local market

gift shop

Well established

Centrally located in the

market.Share a good rapport with

customers.

Offer regular products that are

easily available.

No ‘Customization’

Online sites International variety

Wide consumer base

Services of home delivery and easy

returns.

Different payment mechanism to

suit needs of customers

Default on delivery

Default on payment

Loss of privacy and threat of

intellectual rights damage.

4. How are you going to be better than your competitors? E.g. Our competitors have a limited selection of vegetables, so we are going to sell a large range of vegetables. (5)

COMPETITOR’S ANALYSIS

We will ensure ‘online’ availability of our services through a website.

We have kept our prices low which makes them affordable.

Our products are ‘customized’ and ‘unique’ in the sense

Cakes are home -made and nutritious as they are made from fibrous ingredients.

Greeting cards are made from recycled paper and candles from ‘beeswax’ which is

environment friendly.

We are using organic manure in growing flowers and plant saplings.

Section E: SWOT Analysis

5. Complete the SWOT Analysis below. (5)

STRENGTHS

Low cost because of in-house production

Low prices

Novel idea of gifting plants and

saplings

Students get sensitized towards

environment

WEAKNESSES

Limited school time (though focus this year is

on making our school business ‘online’ so as

to make our services available even after

school time.

Products are not durable and thus, cannot be

stored for long.


THREATS

Increased competition

Recurrent price fluctuations

OPPORTUNITIES

Online availability of our services.

Tie up with local market sellers.

Located in residential hub

Frequently occurring occasions such as

festivals and PTMs resulting in high sales.

Section F: Operational Plan

6. What steps will you take to develop your business? Think about the one-off tasks you need to do to start growing your business. E.g. First, we are going to source new suppliers. (5)

The entire production department is divided into five project groups namely Trainers, creators, bakers,

packers and marketers. We have suggested our teacher mentors that on daily basis, Monday to Friday; from

8.00 am to 9.00 am (IST) in a class activity period, following activities should be initiated.

Training classes will be organized for janitors and differently abled students by our trainers for the

preparation of candles and greeting cards.

Creators will help the gardeners and potters in creating beautiful flowers vases and plant saplings in

them.

Bakers will find and create new and innovative recipes (by holding inter class contests ) and will

bake cakes and brownies as and when order is there.

Packers will ensure the packaging (using newspapers )and labeling of the products .

(Refer Appendix for ‘Mission Statement’)

PRODUCTION PLANNING

Training

Training

Creating

Creating

Packing

Baking

Preparation of

Product Packaging and

labeling

(Packers)

Sales Profit and Bank

Transfer

Marketing Baking


7. How do you produce or deliver your product or service? Use the table below. You can add rows if you need to. (5)

Task

How long?

How often?

Who?

Gardening activities

Baking and icing of

cakes

Ongoing

process

Daily While, gardening will be done by our

‘creators’, baking and icing will be done

by our’ bakers’.

Training program to

differently abled students

for the preparation of

decorative candles

Preparation of greeting

cards

Every Saturday, stalls

will be put up to display

various products.

Training will

be given in

initial 2

months

Weekly Training program was

volunteered by a parent who will

train our fellow school students

and then these trainers will teach

their skills to differently abled

students and janitors.

Greeting cards and decorative

candles will be prepared by ‘

Trainers’

Monthly meetings will be

conducted .

We will organize skill

based motivational

games for team building.

On regular

basis

Monthly Meetings will be initiated by combined

efforts of teacher mentors and the general

council.

8. How is your business team structured and what changes have you made to it? You may like to include your Organogram here. (5)

EARLIER

PRESENT

MANAGING DIRECTOR

Production

Manager

Marketing

Manager

Sales

Manager

Accounting

Manager

Operation

Manager

TEACHER MENTORS

MENTORS

GENERAL COUNCIL

President

(Shradha)

Vice President

(Sakshi)

Treasurer

(Brijesh)

Project Groups

(Devpriya)

Trainers

( Disha) Farmers

(Shubhi)

Bakers

(Ragini)

Creators

(Palak) Marketers

(Mahika)

Public

Relations

(Abhinav)


Earlier, our business organization structure was ‘centralized’ in nature, with respect to planning and

other management decisions.

This year decision making power has been decentralized through General Council.

The objective is to develop among students’ independent thinking and leadership abilities.

Various class activities like ‘Know your skills’ will be organized so that the right student can be

given the right job.

Section G: Marketing and Sales Plan

9. Tell us about your 4 P’s (Product, Price, Place, Promotion). (10) PRODUCT

DIVERSIFICTAION BUT SIMPLIFICATION: This year, plan is to diversify our products in the

areas of ‘decorative candles’ and ‘customized flower bouquets and saplings’. However, we have

simplified our products by taking a ready product directly from the Janitors and differently abled

students and paying them a price which includes their cost as well as profit.

UNIQUE SELLING POINT of our product:

Customization and environmental friendly gifting solutions.

Use of ‘homegrown’ and ‘fresh’ flowers.

Freshly made cakes on daily basis.

‘Creativity’ of our products makes them different from local product available in the market.

FEEDBACK: From the feedback, it was observed that our customers appreciate the fact that our

products could translate their emotions into reality through personalized gifts.

PRICE

Since, our products are homegrown; our cost of production is less. But as and when cost of raw

material increases, we will pay the janitors extra and we will increase the prices of our products.

We focus to increase our market share by keeping low prices and high turnover. Thus, we sell our

products at a price lower than our competitors. We are following “differential pricing strategy” by

charging higher price for those products which are not available with our competitors.

Customers find our products reasonable and worth the price they are paying.

Our profit margins are good enough because of high demand for our products. (Instance: our stalls on

PTM days are always a major hit).

PLACE

Weekly stalls on Saturday near the school gate for school students, parents and community residents.

We book orders two days in advance and supply them on daily basis to students during school hours

and to nearby residents after school hours with the help of janitors.

Our country is an abode of festivals. So, we utilize this opportunity to sell a range of differentiated

products on each festival by putting monthly exhibitions.

We have tied up with a local market seller to supply our products to increase our customer base.

PROMOTION

Advertisement on the school circulars is placed which goes out to each parent for PTM days.

Direct publicity is done for nearby community members through distribution of brochures

(Containing our contact details) and we put banners with the help of janitors.

At our stalls, we also offer various sales promotion schemes such as quantity gifts, combi packs, and

lucky draws on special occasions, festivals and exhibitions.

To, make our enterprise popular, we organize inter class competitions like ‘Design a label’ and ‘best

Nutri recipe’. This is done as a class activity and students are given grades for the same.

This year we have come up with the idea of issuing ‘Membership Cards’ to all those who make a

minimum purchase of INR 1000(USD 60.8). On each purchase, 10% of purchase amount is added as

points and on accumulation of 500 points, customers will get discount of 10% on their next purchase.

Various social media sites such as Facebook and Twitter are used for the promotion.


Section H: People, Profit, Planet

10. How does your business meet the People, Profit and Planet criteria? Please give an example for each criteria. Refer back to Question 7 in your Business Idea Template to help you. (6)

PEOPLE

We, at Candles ‘N’ Cakes not only create new memories for our customers but also get sensitize of our

responsibility towards local community. Through this,

We create opportunities of skill development and alternative sources of income for differently abled

and weaker sections of the society.

We provide them with real life experience in the field of business enterprise. This develops amongst

them a sense of independence and self confidence with better chance to socialize in the society.

Also, our customer feedback is excellent as they appreciate our idea of ‘personalized’ and

‘customized’ gifting solutions which convert their emotions into reality.

PLANET

Since the main aim of our business is to ‘Go Green’, the following points show how our business meets the

planet criteria:

Our focus is to use recycled paper for production and packaging of the products. Separate paper bins

are kept in each class of our school. We are using environmental friendly ‘beeswax’ to make candles.

Gifting plant saplings is a novel idea and sensitizes us towards environment. To grow flowers, land

has been provided by our school. The customer can get a bouquet as per his liking.

The rainwater harvesting unit present in our school premises is used for collecting the recycled water

We are using organic seeds and fertilizers, contributing our bit towards the green environment.

PROFIT

Profits not only help in growth and survival of the business but also keep its stakeholders satisfied.

Around 30% of the profit earned last year that is, 5400 INR (89.25 USD, 1USD= 60.5 INR) was

donated in an organization named ‘Amar Jyoti School’ for disabled children.

30% of the profits that is, 6000 INR (99.8USD) was reinvested into the business to continue its

development. Remaining was used to pay back the startup loan taken from the school.

This year we hope to increase our profits by:

Offering better and wide variety of products

Tie up with the local market seller

Use of various advertisements and promotional schemes

Online availability of our services

Making our services available even after the school time.

Section I: Financing Strategy

11. How much money do you have to re-invest in your business? Do you need to raise additional capital to develop your business? If so, how will you raise this money? (10) Refer back to Question 8 in your Business Idea Template to help you.

After donating INR 5400 from last year’s profits, we repaid the loan of INR 8,000 taken from school,

utilizing INR 2000 for organizing candle making workshops for differently abled children and the

remaining INR 6000 was reinvested. The remaining additional development capital INR 64,000 will be

raised from: ISSUE OF UNITS TO STAKEHOLDERS.

To raise 30,000 by issuing units of ownership of Rs 10 each (similar to a company's share)

to our stakeholders (maximum 50 ) like students, parents and teachers, minimum 10 units

(for voting rights) with no maximum limit.

The stakeholders will be given an option to sell their units at a profit. However, they will

have to register the new owner with us.

SPONSERSHIP FUNDS AT OUR EXHIBITIONS AND DIWALI FETE: We plan to raise 34,000

by organizing events at school grounds. We will put banners and sell stalls to local community


members. Tickets’ sale is also a source of revenue for us.

DONATIONS FROM SCHOOL HEADS: Impressed by our zeal and efforts, our principal and

management have also offered us funds in the form of donations but this is our last option, if the

other two sources do not generate the required funds .


Section J: Financial Management

12. What is your method of record-keeping and how are you going to improve your financial management processes? (5) E.g. We use a spreadsheet. We will aim to update our accounts on a weekly basis.

We have downloaded a free accounting software in which we have recorded the purchase price of our

stocks,expenses,estimated sales etc. Whenever a sale is made, our stocks are automatically adusted. This way

a computerised register is maintained by our treasurer on a daily basis. An example is being shown with an

imaginary sale.

Section K: Sustainability and Business Development

13. How will you keep your business running after this school year? E.g. We will mentor new students and pass the business onto them. (5)

GO ONLINE: We hope to make our business services online by building a website for our school

enterprise. This will enable us to sell our products all year round and not just when we organize some

sales event. Also, this will help us to widen our customer base.

MENTOR: We will mentor and train new students and pass the business onto them.

COLLABORATE: We are planning to join hands with schools with similar business enterprise. Also,

we can encourage other nearby schools to participate and be our partners in the same.

PARENTS: Parents will be encouraged to participate and extend their services.

SHOPPING OUTLET: We are planning to have a shopping outlet in the vicinity. This will enable

our customers to have an easy access to our products and also we will be able to compete with our

competitors.

14. Where do you see the business in 5 years? E.g. We will grow our product range to include other vegetables and we will expand our market by selling our products in 3 new districts.(5)

We will expand our markets by selling our products in the other areas of Delhi. To do this, we will

develop partnership relations with other schools.

We will ensure ‘online’ availability of our services. For this, we will build a website which will also

help in widening our customer base.

We will also have few shopping outlets in the malls in the vicinity. This will ensure easy access to

our products.

We will expand our range of products by diversifying further in the areas of ‘Event Management’.

After analyzing our product profitability, it was observed that our new products (Flower bouquets,

plant saplings and candles) are more profitable. So, we are going to concentrate more on marketing

of these products.

Appendix (OPTIONAL Bonus Points)


MARKET RESEARCH SURVEY (QUESTIONNAIRE)

CANDLES ‘N’ CAKES

Please tell the date and location of your visit:-

Date: _________________

Location: __________________

1. On which occasions do you buy gifts?

o Weddings

o Birthdays

o Festivals

o Others (Mention if any)

2. What type of gifts do you prefer to buy?

o Candles

o Cards

o Bouquets

o Chocolates

o Others (Mention if any) __________________

3. How much do you preferably spend on buying gifts (in INR)?

o Below INR 300

o INR 300-500

o INR 500-1000

o Above 1000

4. In next 6 months, how likely are you to buy gifts?

o Seldom

o Monthly

o Often

o Only on festivals

o Others (Mention if any) ________________

5. In which relations do you prefer to give gifts more often?

o Friends

o Relatives

o Colleagues

o Neighbors

o Others (Mention if any) ________________

6. From where do you prefer to buy gifts?

o Malls

o Local market Gift Shops

o Stalls in weekly markets

o Online Sites


7. What do you like the most about any gifting product that you purchase?

o Quality of the product

o Appearance

o Price



8. Do you require products in bulk on some occasions?

o Yes

o No

o Sometimes

o On festivals

o Others (Mention if any)___________________

9. Do you prefer products and services to be delivered at home?

o Yes

o No

o Maybe

10. Please fill the following details about yourself:-

o Name- _______________

o Age- _______________

o Email- _______________

o Gender- (M / F)

o Residential Area

Thank you for your time and concern.

…………………………………………………………………………………………………….

SUGGESTION/FEEDBACK FORM

Thank you for visiting CANDLES’N’CAKES. We strive to fulfill all the demands of our customers.

Tell us about yourself

Date: __________

Location: ___________

Name:

Date of Birth:

Gender: M / F

E-Mail ID:

How will you rate us? (Tick One )

Excellent Good Average Poor

Overall

Experience

Price of the

Product

Quality of the

Product

Speed Of Service

Presentation

Of the Product

Uniqueness of the

Product

How will you rate our products? (Tick One)


Excellent Good Average Poor

Cakes and

Brownies

Decorative

Candles

Greeting Cards

(Photo frames and

Gift Boxes)

Bouquet and

Saplings

Do you prefer our products to ‘Archies’ Gift shop?

o Yes

o No

Have you bought this product before?

o Yes

o No

How often do you buy our products?

o Seldom

o Monthly

o Often

o Only on occasions/ festivals

o Others (if any)

How did you get to know about our Enterprise?

o Friends

o Relatives

o Brochures

o Internet

o Others ( Mention If Any )

Any comments, suggestions or questions

Would you like to visit us again?

……………………………………………………………………………………………………..

MISSION STATEMENT (QUESTION 6)

“Being part of our customer’s celebrations, sensitizing them towards environmental friendly gifts and in the

process, providing new sources of income for differently abled and economically weaker sections of the

society”.

…………………………………………………………………………………………………….


My Business

My BUSINESS

Competitor A

MALLS

Competitor B

LOCAL

MARKET

GIFT SHOP

Competitor C

ONLINE SITES

Where is

the

competitor

located?

We offer our

business services and

products within the

school premises.

Wave, Noida

Great India Place, Noida

Archies, Market

of Mayur Vihar

Phasi-1

Cyber space

What

product/ser

vice do

they sell?

Cakes and

brownies

Greeting

cards and

photo frames

Decorative

candles

Fresh flower

bouquets and

saplings

Greeting cards,

photo frames,

decorative

candles and

chocolates

Greeting Cards.

Photo frames,

candles and

chocolates.

All types of gifting

solutions.

What are

their

operating

hours?

Would you

benefit from

being open

at a

different

time?

We operate

during the

school time

but we are

planning to

offer our

services after

the school

time as well.

Also, focus

is on online

availability

of our

services.

11.00 am in the morning

till 10.00 pm in the

evening

From 10.00 am

till 8.00 pm in

the evening

They work for 24

hoursx7 days X 365

days a year.

Who are

their

customers?

-Our main customers

are students,

teachers, parents and

members of local

community

-People in the age

group 12-35 years

have inclination

towards our products.

Their customers are

people of all age groups.

People who can afford

‘big fat’ gifts have

inclination towards

them.

Customers are

people living in

the nearby

residential

areas.

-People of all

possible age groups

-Also, only those

with access to

internet and computer

and with knowledge

of e-transactions are

found to have major

share.

COMPETITOR’s ANALYSIS TEMPLATE


What

methods of

marketing

do they

use?

Do your

competitors

have

adverts,

events or

run

promotions

?

Direct

publicity

through

advertisemen

ts in

circulars,

brochures

and flyers

Various

promotional

schemes

such as

discounts,

combi gifts

etc.

Use of Social

Media

Offer discounts

only on festive

or special

occasions.

Offer

discoun

ts on

special

occasio

ns.

Offer heavy

discounts on

weekends.

Offer

concessions

on bulk

purchases.

Offer low

price

products.

Do they

have a

good

reputation

locally?

Why or why

not? What

could you

learn from

their

business?

We share a good

rapport with our

customers.

Yes, they have a well

established brand name.

also, they are known for

their good quality

products and services.

Yes, they share

good rapport

with their

customers

because of their

centrally

location and

good quality

services.

-

Do they

offer any

extra

services?

Are these

things you

should

consider for

your

business?

We offer

‘personalized’ and

customized’ gifting

solutions with special

focus on ‘freshness’

of the product..

They make branded and

international variety

available.

- They offer ‘easy

return’ feature.

Low price of

products and they

offer ‘heavy

discounts’.

They make


available.

They also offer

‘Home Delivery’

Services.

What are

their

strengths?

Can you

learn from

these

without

copying

them too

closely?

-Low cost because of

in-house production

-Low price

-Feature of

‘Customized’ gifting

solutions

-Novel idea of gifting

plants and saplings

-Students get

sensitized towards

environment

-Offer wide variety

-Branded and

International products.

-Well

established

-Centrally

located in the

market. Thus,

share a good

rapport with

customers.

-International variety

-Wide consumer base

-Services of home

delivery and easy

returns.

-Different payment

mechanism to suit

needs of customers

-Low price


What are

their

weaknesses

?

Your

competitors

’

weaknesses

can become

your

strengths!

-Limited school time

(though focus this

year is on making our

school business

‘online’ so as to

make our services

available even after

school time).

-Products are not

durable and thus,

cannot be stored for

long.

-Highly priced

-Less affordable

-Offer regular

products that

are easily

available.

-No

‘Customization’

-Default on delivery

-Default on payment

-Loss of privacy and

threat of intellectual

rights damage.

What is

their

Unique

Selling

Point? What is

unique

about their

business?

-Customization

-Use of ‘homegrown’

and ‘fresh’ flowers.

-Freshly made cakes

and brownies on

daily basis.

-‘Creativity’ in

candle making makes

them different from

local product

available in the

market.

-Offer branded products

-Good quality

-Make international

variety available

Share good

rapport with the

customers.

-Branded and


available

-Low price of the

products.

-Home delivery of

the products

available.


PART TWO Financial Plan

This section will be awarded a total of 20 Points. These 20 Points will be allocated as follows:- Section A (5), Section B+C+D (5), Section E+F+G (5), Section H+I (5).

TOP TIP! You may complete your Financial Plan using your local currency. Please tell us what this is, E.g. Indian

Rupees. In the template we will ask you to convert your TOTALS into US $. You can use this website to do this: http://www.xe.com. Remember to write down the exchange rate you are using in the box below!

Please add any extra rows to the tables where necessary.

Local Currency used (E.g. Indian Rupees)

Indian Rupees

Exchange rate to US Dollars (E.gIndian Rupees) 1 US $ = 60.5 INR

Period of time budgeted for (E.g. 3 months)

3 months

Section A: Business Development Budget (Estimated)

TOP TIP Your Business Development Budget is the costs of the additional Equipment and Supplies that you will need to develop your business. Please note: if you do not need to buy extra equipment or supplies to

develop your business, go directly to Question 2.

1. Please list all your Business Development Costs.

Business Development Equipment

Quantity Unit Cost Total Costs of your Equipment (Quantity x Unit Cost)

Hand tools for

gardeners

10 50 500

Business Development Supplies/Expenses

Quantity Unit Costs Total Costs of your Supplies/ Expenses (Quantity x Unit Costs)

Cakes 200 kg 200 per kg 40,000

Cards 200 35 7,000

Candles 500 10 5,000 Flower bouquets 80 30 2,400

Plant saplings with

Pots

100 20 2,000

Advertising expenses

(Discount schemes,

printing of banners,

membership cards )

3,000

Packaging 1,100

Labor cost (to janitors) 4,000

Event organizing

expenses

5,000

Total Business Development Budget (Add your Total Costs Together)

Local Currency 70,000

In US Dollars $

1157.02

Section B: Income (Estimated)

http://www.xe.com/


2. Please list all the products or services that your business will sell during the budget period. Please tell us the amount you think you will sell and the price at which you will sell them.

Name of Product or service

Quantity Sales Price Sales Income (Quantity x Sales Price)

Cakes 200 kg 500 1,00,000 Cards 200 60 12,000 Candles 500 40 20,000 Flower bouquets 80 100 8,000 Plant saplings with

Pots

100 80 8,000

Total Income (Add all the ‘Sales Income’ together)

Local Currency

1,48,000

In US Dollars $

2446.2

Section C: Direct Costs (Estimated)

3. Please list all of the items you will need to buy in order to make or provide each product or service.

Name of Item Quantity Unit Cost Total Costs (Quantity x Unit Cost)

Product/Service 1 Please tell us what this product or service is here: Cakes 200 200 40,000

Product/Service 2 Please tell us what this product or service is here

Cards 200 35 7,000

Product / Service 3 Please tell us what this product or service is here: Candles 500 10 5,000

Product/Service 4 Please tell us what this product or service is here: Flower bouquets 80 30 2,400

Product/Service 5 Please tell us what this product or service is here:

Plant saplings with Pots 100 20 2,000

Total Direct Costs (Add up all the Total Costs)

Local Currency

56,400

In US Dollars $ 932.2

Section D: Gross Profit (Estimated)

4. Please calculate your Gross Profit in your Local Currency and then convert it to US Dollars $.

Calculation

Local Currency US Dollars $

Total Sales Income 1,48,000 2446.2

Total Direct Costs 56,400 932.2

Gross Profit (Total Sales Income – Total Direct Costs)

91,600 1514.4


Section E: Indirect Costs (Estimated)

Top Tip Indirect costs are items that you need to spend money on to run your business. However, they are not

related to the making of your product or service. E.g. Marketing or transportation costs involved in getting your product to market.

5. Please list all of your Indirect costs

Name of item Quantity Unit Cost Total Costs (Quantity x Unit Cost)

Cakes 200 kg 40 8,000 Cards 200 6 1,200 Candles 500 5 2,500 Flower bouquets 80 10 800 Plant saplings with

Pots

100 11 1,100

Total Indirect Costs (Add up all the Total Costs)

Local Currency

13,600

In US Dollars $

224.8

Section F: Net Profit (Estimated)

6. Please calculate your Net Profit in your local currency and convert this to US Dollars.

Calculation Local Currency US Dollars $

Gross profit

91,600 1514.4

Total Indirect Costs

13,600 224.8

Net Profit (Gross Profit – Total Indirect Costs)

78,000 1289.3

Section G: Additional Capital Required

7. Please calculate how much, if any, additional capital you need to raise to develop your business. Please note: you may not need additional capital if your Business Development Budget is less than the profit you have available to fund your business development.

Calculation

Local Currency US Dollars $

a. Net Profit last year

21,400 353.7

b. Profit from last year used for other purposes e.g. donation to charity

15,400 (5,400 as

donation to Amar jyoti

school, 2,000 for candle

making workshop for

differently able

children and 8000 in

repayment of loan)

254.5

c. Profit from last year available to fund business development (a-b)

6,000 99.2


d. Business Development Budget 70,000 1157.02

e. Additional Capital Required ( d-c ) 64,000 1057.9

Section H: Pay Back Period (OPTIONAL)

8. Please calculate the Pay Back Period for your Business Development Budget

a. Budget Period E.g. 4 months 3 months

b. Net Profit 78,000

c. Average Net Profit per month ( b / a ) 26,000

d. Business Development Budget 70,000

e. Pay Back Period ( d / c ) 2.7 months

Section I: Product Profitability (OPTIONAL)

9. Please complete the following Product Profitability Worksheet for each Product or Service you are selling. We have provided you with two worksheets, however please add additional sheets if necessary. For this section ‘Product’ refers to the Product or Service that you are selling.

Product / Service 1

Name of product Cakes

Sales price of product 500

Predicted Amount of Sales 200

Total Sales Income of product (Sales Price x Amount)

100,000

We cannot bifurcate direct cost as we are taking products per piece from the makers and paying them a price which includes their cost and profit.

Profitability

Gross Profit of Product (Total Sales Income for Product – Total Direct Costs for Product)

60,000

Direct Cost per Product Item (Total Direct Cost for Product ÷ Amount produced of Product)

300

Percentage Profitability (Sales price for Product – Direct Cost per Product Item) x 100 ÷ Sales Price

60%


Product / Service 2

Name of product Greeting Cards




12,000

Profitability


5,000


25


41.6%

Product / Service 3

Name of product Decorative Candles




20,000

Profitability


15,000


30


75%

Product / Service 4

Name of product Flower Bouquets




8,000

Profitability


5,600


70


87.5%

Product / Service 5

Name of product Plant Saplings with pots





8,000

Profitability


6,000


60


75%

Documents

Business Development Track - School Enterprise Challenge · 2 New Business Development Plan Template 2014 PART ONE Section A: Your Details School name Ahlcon International School