Shark Tank Business Project
Task: You and your partner(s) will create a new
business idea concept that you will present to a “Shark” (an investor/venture capitalist). You want this “Shark” to invest their money
into your business. This is the end
product and you must keep this in mind as you go through the entire process.
The following are elements you need to include in your business project:
I) The Business
Plan:
In order, to create a successful business, you need to have a plan to
follow. Develop a business plan that
outlines what your business will do, your staffing needs (labor), your sales
and marketing approach and how much start-up financing you will need (how much
$$ to start everything). Once you have your business plan, you can follow it to
create your successful business and use your business plan to interest
investors in your company (The “Sharks”)
Business Plan resources: (just some places to start)
2) Type
of Business: What type of
business do you and your partner(s) plan to create? Spend some time researching the different
types of businesses to see the advantages and disadvantages of each. Then, based on what you discover about the
different business types (there are 3 main categories) decide what type of
business you will create and explain the reasoning behind the decision.
3) Market, Industry, and Competition Analysis: When you start a business, you need to look
at the market in which you are entering.
If there are already a lot of competitors in your market, it may be hard
to start a new business in that market.
Also consider what makes your product/service stand out compared to others
(what sets it apart from the rest?) so that people will demand your products or
services. Your task for this element is
to analyze your industry (if you want to produce beer you are in the beer
market, if you want to create a store that sells designer clothes you are in
the retail market) and your competition.
What kind of competition exists in the market and what would you need to
get your business started in this market?
Include this in your final product
4) Financing: How much money do you need to start this
business venture? After the initial
money (which you hope to get from the “Shark”) to receive, how else are you
going to finance your business? Research
all the different options you have to finance your new business and keep it
sustained for the long-term. Also,
determine how profitable your business is going to be.
5) Marketing, Advertising, and Product
Distribution: How will you get people to
know your business exists, how will you market your product/service and
advertise it to your target audience?
This could be part of your business plan but if it is not you MUST
include some marketing and advertising strategies in this project. Here are a couple of resources (you can
research more) and some vocabulary words you need to know for this section.
6) Operation :How is your business
going to be set up. Will your business
be set up in a specific location or will it be online (Ecommerce)? Questions such as who will be
hired, how much will you pay them, what hours will you be open, who will manage
your inventory/finances, how will people pay for products/services, etc. (there are more) are ones to focus on to
figure out how your day to day operations are going to work (your investors
will want to know this to see if you are prepared). Also, you need to be prepared for the unknown
and operational “pitfalls” so that if something happens that hurts your
business you have a plan to bounce back and recover (investors also want to
know about this).
7) YOUR BUSINESS PROPOSAL (the END
product): You and your
partner(s) will be creating a business proposal. In this proposal you will include all of the
elements (#1-5) listed above. You have a
few options of how you can present your business proposal to the “Shark”:
·
Present your business
proposal via Powerpoint
·
Your Final Business Proposal
is due MARCH 17, 2017
- you will be evaluated based on self-evaluation, peer
evaluation, and teacher/”Shark” evaluation.
Teacher evaluation will be based
on:
a) ability to
collaborate (work together); this
includes in class and outside of class collaboration
b) knowledge of the
business world and business competition (based on what you have learned/researched)
c)
quality of presentation and business proposal (does it make the “Shark”
want to invest in your business?). Is it
interesting, does it make the audience want to buy your product or want to know
more about your business ideas and ventures?
General Help Articles/Resources to Read on Business
Practices
SAMPLE DOCUMENTS + REQUIRED WORKSHEETS
Written Business Plan Requirements
- Cover
Page
The cover page of your business plan
should include important contact information about the business.
- Executive
Summary
Your executive summary is
a snapshot of your business plan as a whole and touches on your company profile
and goals. Read these tips about what to include.
- Company
Description
Your company description
provides information on what you do, what differentiates your business from
others, and the markets your business serves.
- Market
Research
Before launching your
business, it is essential for you to research your business industry, market
and competitors.
- Product/Service
Line
What do you sell? How
does it benefit your customers? What is the product lifecycle? Get tips on how
to tell the story about your product or service.
- Marketing
& Sales
How do you plan to market
your business? What is your sales strategy? Read more about how to include this
information in your plan.
- Financial
Projections
Since you need funding,
providing financial projections to back up your request is critical. Find out
what information you need to include in your financial projections for your
small business.
*** DO NOT USE
THE 4 FINANCIAL PAGES ON THE SBA.GOV WEBSITE ***
Use the 2 Financial Worksheets
linked to my webpage:
1. Total Project Costs
Worksheet
2. Business Financial
Projections Worksheet
- Appendix
An appendix is required for your final
project. It is a useful place to include
pertinent supporting documents such as property listings, equipment and
inventory purchases as well as resumes, permits and leases.
Final Project –
Business Plan
The Business Plan
What are the key elements of a business plan?
From market analysis to your company financials, this guide walks you through
the essential components of your plan, including how to develop a funding
request.
Your cover page should include the name of
your company, its address, telephone number, and list of the principals or
majors stockholders (if applicable).
The executive summary is often considered the
most important section of a business plan. This section briefly tells your
reader where your company is, where you want to take it, and why your business
idea will be successful. If you are seeking financing, the executive summary is
also your first opportunity to grab a potential investor’s interest.
The executive summary should highlight the
strengths of your overall plan and therefore be the last section you write.
However, it usually appears first in your business plan document.
What to Include in
Your Executive Summary
Below are several key points that your
executive summary should include based on the stage of your business.
If You Are an
Established Business, be sure to include the following information:
- The
Mission Statement – This explains
what your business is all about. It should be between several sentences
and a paragraph.
- Company
Information – Include a short statement
that covers when your business was formed, the names of the founders and
their roles, your number of employees, and your business location(s).
- Growth
Highlights – Include examples of
company growth, such as financial or market highlights (for example, “XYZ
Firm increased profit margins and market share year-over-year since its
foundation). Graphs and charts can be helpful in this section.
- Your
Products/Services -- Briefly describe
the products or services you provide.
- Financial
Information – If you are seeking
financing, include any information about your current bank and investors.
- Summarize
future plans – Explain where you would
like to take your business.
With the exception of the mission statement,
all of the information in the executive summary should be covered in a concise
fashion and kept to one page. The executive summary is the first part of your
business plan many people will see, so each word should count.
If You Are a Startup
or New Business:
Since you are just starting a business, you
won't have as much information as an established company. Instead, focus on
your experience and background as well as the decisions that led you to start this
particular enterprise.
Demonstrate that you have done thorough market
analysis. Include information about a need or gap in your target market, and
how your particular solutions can fill it. Convince the reader that you can
succeed in your target market, then address your future plans.
Remember, your Executive Summary will be the
last thing you write. So the first section of the business plan that you will
tackle is the Company Description section.
This section of your business plan provides a
high-level review of the different elements of your business. This is akin to
an extended elevator pitch and can help readers and potential investors quickly
understand the goal of your business and its unique proposition.
What to Include in
Your Company Description
- Describe
the nature of your business and list the marketplace needs that you are
trying to satisfy.
- Explain
how your products and services meet these needs.
- List
the specific consumers, organizations or businesses that your company
serves or will serve.
- Explain
the competitive advantages that you believe will make your business a
success such as your location, expert personnel, efficient operations, or
ability to bring value to your customers.
In this section, you should illustrate your
industry and market knowledge as well as any of your research findings and
conclusions. This section is usually presented after the company
description.
What to Include in
Your Market Analysis
Industry Description
and Outlook – Describe your
industry, including its current size and historic growth rate as well as other
trends and characteristics (e.g., life cycle stage, projected growth rate).
Next, list the major customer groups within your industry.
Information About Your
Target Market – Narrow your
target market to a manageable size. Many businesses make the mistake of trying
to appeal to too many target markets. Research and include the following
information about your market:
Distinguishing
characteristics – What are the
critical needs of your potential customers? Are those needs being met?
What are the demographics of the group and where are they located? Are there
any seasonal or cyclical purchasing trends that may impact your business?
Size of the primary
target market – In addition to
the size of your market, what data can you include about the annual purchases
your market makes in your industry? What is the forecasted market growth for
this group? For more information, see our market research guide for
tips and free government resources that can help you build a market profile.
How much market share
can you gain? – What is the
market share percentage and number of customers you expect to obtain in a
defined geographic area? Explain the logic behind your calculation.
Pricing and gross
margin targets – Define
your pricing structure, gross margin levels, and any discount that you
plan to use.
When you include information about any of the
market tests or research studies you have completed, be sure to focus only on
the results of these tests. Any other details should be included in the
appendix.
Competitive Analysis – Your competitive analysis should identify your
competition by product line or service and market segment. Assess the following
characteristics of the competitive landscape:
- Market
share
- Strengths
and weaknesses
- How
important is your target market to your competitors?
- Are
there any barriers that may hinder you as you enter the market?
- What
is your window of opportunity to enter the market?
- Are
there any indirect or secondary competitors who may impact your success?
- What
barriers to market are there (e.g., changing technology, high investment
cost, lack of quality personnel)?
Regulatory
Restrictions – Include any customer
or governmental regulatory requirements affecting your business, and how you’ll
comply. Also, cite any operational or cost impact the compliance process will
have on your business
This section of your business plan is where
you describe your service or product, emphasizing the benefits to potential and
current customers. Focus on why your particular product will fill a need for
your target customers.
What to Include in
Your Service or Product Line Section
A Description of Your
Product / Service
Include information about the specific
benefits of your product or service – from your customers' perspective. You
should also talk about your product or service's ability to meet consumer
needs, any advantages your product has over that of the competition, and the
current development stage your product is in (e.g., idea, prototype).
Details About Your
Product’s Life Cycle
Be sure to include information about where
your product or service is in its life cycle, as well as any factors that may
influence its cycle in the future.
Intellectual Property
If you have any existing, pending, or any
anticipated copyright or patent filings, list them here. Also
disclose whether any key aspects of a product may be classified as trade
secrets. Last, include any information pertaining to existing legal agreements,
such as nondisclosure or non-compete agreements.
Research and
Development (R&D) Activities
Outline any R&D activities that you are
involved in or are planning. What results of future R&D activities do you
expect? Be sure to analyze the R&D efforts of not only your own business,
but also of others in your industry.
Marketing is the process of creating
customers, and customers are the lifeblood of your business. In this section,
the first thing you want to do is define your marketing strategy. There is no
single way to approach a marketing strategy; your strategy should be part of an
ongoing business-evaluation process and unique to your company. However, there
are common steps you can follow which will help you think through the direction
and tactics you would like to use to drive sales and sustain customer loyalty.
An overall marketing strategy should
include four different strategies:
- A market penetration
strategy.
- A growth strategy. This
strategy for building your business might include: an internal strategy
such as how to increase your human resources, an acquisition strategy such
as buying another business, a franchise strategy for branching out, a
horizontal strategy where you would provide the same type of products to
different users, or a vertical strategy where you would continue providing
the same products but would offer them at different levels of the
distribution chain.
- Channels of
distribution strategy. Choices for distribution channels could include
original equipment manufacturers (OEMs), an internal sales force,
distributors, or retailers.
- Communication strategy.
How are you going to reach your customers? Usually a combination of the
following tactics works the best: promotions, advertising, public relations,
personal selling, and printed materials such as brochures, catalogs,
flyers, etc.
After you have developed a comprehensive
marketing strategy, you can then define your sales strategy. This covers how
you plan to actually sell your product.
Your overall sales strategy should
include two primary elements:
- A
sales force strategy. If you are going to
have a sales force, do you plan to use internal or independent
representatives? How many salespeople will you recruit for your sales
force? What type of recruitment strategies will you use? How will you
train your sales force? What about compensation for your sales force?
- Your
sales activities. When you are defining
your sales strategy, it is important that you break it down into
activities. For instance, you need to identify your prospects. Once you
have made a list of your prospects, you need to prioritize the contacts,
selecting the leads with the highest potential to buy first. Next,
identify the number of sales calls you will make over a certain period of
time. From there, you need to determine the average number of sales calls
you will need to make per sale, the average dollar size per sale, and the
average dollar size per vendor.
***DISREGARD THE 4 FINANCIAL PAGES ON THE SBA.GOV WEBSITE ***
You ONLY need to complete the 2 Financial
Worksheets linked to my webpage including:
1. Total Project Costs Worksheet
2. Business Financial Projections Worksheet
This section is one of the most important
sections of the business plan. You must
base your facts and figures on historical and/or industry information in order
for your projections to be accurate.
The questions
loan officers will ask are:
- Can
you repay the loan?
- Are
you a good risk?
- What
do you have for collateral
Since you are a start-up or new business, it
is understood that your financial history is somewhat limited. In such a case, it becomes even more
important that you research the industry and use those industry figures as a
base for your projections. BE CONSERVATIVE.
The key is to obtain realistic estimates for
expenses, equipment, sales, etc. so that your projections are as accurate as
possible. You must be able to prove that
you will be able to repay your loan and turn a profit within a reasonable
amount of time.
This section should be clearly written so
anyone (from the loan officer to a potential investor) can fully understand how
your figures were derived.
- You
will be expected to provide two years of historical financial data;
business income tax returns; as well as interim income statement and
balance sheet (less than 2 months old).
- New
or start-up business owners would need to obtain copies of their personal
income tax returns for the past three years and do a personal net worth
statement.
- Create
projected income, cash flow, and balance sheets for a two year time
frame. The figures should reflect
any historical or industry data, trends, or expected innovation.
- A
list of assumptions should accompany your financial statements to clarify
your data and answer any questions that may arise.
- Since
you are seeking a loan, a summary of how you plan to use the funds should
accompany your financial statements.
This section should include documents that
‘back up’ your case and support the assumptions made by the business plan. Each document should be cross-referenced to
the narrative portion of your plan.
Pertinent supporting documents include:
- Historical
financial information: income, cash flow, and balance sheets.
- All
patents, permits, licenses, or certificates.
- Real
estate appraisals.
- Market
or industry statistics and magazine/newspaper articles that support your
claims.
- Marketing
materials including your business card, brochures, or advertisements.
- Product
line brochure or pictures of products/services.
- Lease
agreement or estimates.
- Letters
if reference or letters of intent to do business.
- List
of key suppliers and any letters of intent to extend credit.
- Estimates
on equipment and machinery.
- Insurance
estimates.
