Upload
jbull08
View
130
Download
2
Embed Size (px)
DESCRIPTION
SY12 Business Plan
Citation preview
Shaquiesha DavisSophmore ;10th
15
Created by Adapted for
The Problem
• The Significant Problem in the MarketAnxiety of leaving the child with a strangerSingle working mom
• The Size of the ProblemAnyone with children under the age of 18
116 million households 12.9 million one-parent households
Source:2010 us census fact finder
• A mobile phone app that provides:• A way for parents to oversee
caregivers activities• A mobile emergency contact list• Easy communication for parents and
caregivers through text and video.• No camera necessary to install• A real time chart update – update
from care provider about your child sent directly to your phone
The Solution: Baby b4 Me
Mission Statement & Business Profile• Mission Statement
• To give a sense of knowing all the time and help working parents become more organized and creative .
Type of BusinessBaby b4 Me is a retail business because you have
to pay to download it.
Legal StructureBaby b4 Me is a sole proprietorship due to the
ease of set up and because I can keep all the profits.
Business Idea & Qualifications Briefly describe the inspiration for your idea
• I want to do this because I know being a baby sitter I’m very nervous when sitting a child for the first time. I know that it is different with every parent so I don’t know what to expect
I’m qualified to run this business because:
I have experience in child care
I am learning how to make mobile application
I am taking an entrepreneurship class to learn how to write a business plan
Market Analysis
Industry Name
Productivity software publishing market
Industry Size $48 billion
Total Population
Chicago, IL 60608
Target Market Single working adults both male and female with children under the age of 18
Potential Market Size
Out of 20 parents surveyed, 15 parents said they would use my product.
92,472
10,374
13,833
Total Population
Target Market
Potential Market Size
7
Target Market Segment Demographics
20 to 32 year old females, working, with a college degree. Making about 30,ooo a year, single, with one or more children.
Geographics Most likely live, work, go
to school, and shop in the city.
Psychographics My consumers don’t have
much free time but, if they did have any they would spend it with their family
Buying Patterns These consumers are
constantly spending money on how to make things better for their child/children. Most of the consumers are always looking for a sale to stretch their money. These people like to keep up with the latest brands.
Competitive Advantage
Baby b4 me Nanny Cam
Summer Infant 02000
Baby Touch Digital Video
Monitor
Factors
$9.95
Quality of Product/Service
Price
Location
Reputation/Brands
Unique Factors/Knowledge
$180.00 $195.00
No battery required
Expensive and limited
functions
Battery doesn’t last
long
Has a real time chart up
date a support net
list and video texting
hidden video camera system,
power supply, and a RCA
cable
Pan, scan, and zoom in
on baby’s room with
one touch of the screen
App Store/Online
web site
Sold Online Sold Online
New to market
Well know and used
#2 in baby monitors
Marketing Mix
People Product Place Price Promotion
Single parents Advertise on sittercity.com which is a web site that connects parents and baby sitters.
Online and App store
Allows parents to have a peace of mind away for their children.
$9.95 for a one time download.
Promotional Mix
Issue press releases for parenting blogs
Advertising
Publicity
Public Selling
Technology
Total Monthly Promotional Expense
Flyers and demos at daycares
Use social network to communicate with potential customers, website
$0.00
$15.00
$42.00
$15.00 Post ads on social networks and sittercity.com
Promotional Expense MonthlyAmount
$12.00
Marketing Plan for Target Customer
Method 1:post ads on social
networks
Method 2: issues press releases
for parenting blogs
Method 3:Pass out flyers and do presentations at daycares
Method 4:Discounts on and free trial on any new releases
Cost of Materials/LaborMaterials
Material Description Cost/Total Quantity Cost per Unit
--- --- ---
--- --- ---
--- --- ---
--- --- ---
Total Material Cost per Unit ---
LaborLabor Cost per
HourTime (in Hours)
to Make One UnitLabor Cost per
Unit
$8.00 .25 $2.00
Total Labor Cost per Unit $2.00
COGS (per Unit)
$2.00
Economics of One Unit
Selling Price (per Unit) $9.95
COGS (per Unit) $2.00
Other Variable Expenses (per Unit) ---
Total Variable Expenses (per Unit) $2.00
Contribution Margin (per Unit) $7.95
Description of One Unit of Sale:
One download of my app on my web site
Average Monthly Fixed Expenses
Fixed ExpenseAverage Monthly
Expense
Insurance $100.00
Advertising $42.00
Depreciation (computers) $27.78
Utilities (internet, Electric, Telephone)
$300.00
App store subscription fee $8.25
Website costs (server, domain name)
$200.00
Total Average Monthly Fixed Expenses
$678.03
Monthly Sales ProjectionsFirst Year
0
100
200
300
400
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Units So
ldTotal Units
Sold
2,304
Projected Yearly Income StatementFirst Year
A Selling Price per Unit $9.95
B Number of Units Sold 2,304
C Total Sales $22,924.80
D Variable Expenses $4,608
E Contribution Margin $18,316.80
FFixed Operating
Expenses$8,136.36
G Pre-Tax Profit $10,179.64
H Taxes @ 15% $1,526.95
I Net Profit $8,652.69
Start-Up InvestmentStart-Up Expenditures
Item Where Will I Buy This? Cost
Mac desktop computer
On-line $1,199.00
Total Start-Up Expenditures $1,199.00
Cash ReservesEmergency Fund $1,000.00
Reserve for Fixed Expenses $4,508.34
$6,707.34Total Start-Up Investment
Monthly Break-Even Units
In an average month, the company will begin to make a profit after selling
units.85
Fixed exp. $678.03
Contribution margin $7.95
= Break – Even Units 85
ROS & ROI
ROS: Return on Sales
Formula:
For My Business: Dollar
Equivalent:$0.38
Annual Net profitX100 = ROS%
$22,924.80X100 =
ROI: Return on Investment
Formula:
For My Business: Dollar
Equivalent:$1.29
Annual Net profit
Start-up investmentX100 = ROI%
$8652.69
$6707.34X100 =
Total sales
$8,652.69
Financing Strategy
Source Amount Debt Equity Gift
Personal Savings
$107.34
Relatives/Friends $3,000 --- $2,000 $1,000
Investor $3,600 --- $3,600
Partner(s) --- --- ---
Totals$6,707.3
4 --- $5,600 $1,000
$6707.34Total Start-Up Investment
How to Scale Our Business • How will our company be expanded?
• Allow users to be able to connect through the website• Partner with day care businesses• Create an app for the Ipad
• As you grow your business, list 2-3 additional ways you can make money.
• Q&A for babysitters and mothers at home on my website• Offer customers to upgrade to a new version of the app that
contains multiple functions, activities and capabilities• Offer warranties for the products to customers
• How will you use technology to enhance/grow your business?
• I would need a computer with a lot of space to allow all the data to come through.
Technology Snapshot
• An example of my mobile application:
Business Responsibility& PhilanthropyBusiness Responsibility
• Offer a discount to low income families• Give business discounts to daycares• Provide around the clock customer service
Philanthropy• I am planning on giving one percent of my
business’s profit to an local shelter for children and mothers.
Time-Management PlanSchedule for a Typical Week
Total Hours in a Week = 168
0 20 40 60 80
School
New Business
Work
FreeTime
40
60
0
68
Hours
Business & Education GoalsI need to start working
on making my application.
To improve and maintain my product I will always take in criticism and make corrections to make my application better.
Develop computer programming and marketing skills
One person I could seek out as a mentor is Mr. Johnson, my computer science teacher
Business Personal
Grow my business to an international brand
Continually improve and expand my business to meet consumer demand
Sh
ort
-Te
rmL
on
g-T
erm
I am planning on running my business for as long as I can.
My business can prepare me for my future career as a
Peace of mind is one tap awayCreated by Adapted for