Planning the Live Project
things to consider in the
beginning
time available ** local health
department regulations **
what kind of product is
feasible (feasibility analysis)
Before beginning
project ...
consult with school principal
(falls under heading of 'never
surprise your boss'
Entreprenuer
person who runs, manages
and owns a small business;
they must be willing to take
and accept risk
Demand
the desire or need for a product;
entrepreneurs should make sure there
is a demand for their product or
service before starting a business
Automation
machines that do repetitive work (like
stamp out cookies) expensive, but
increases production time, reduces
errors and simplify production
Market
Analysis
a report that tells about the
economy, existing businesses,
infrastructure and prospects for a
product and/or area
Sales
projections
Report that predicts how
much sales should be made
in future. It is based on a
Market Analysis.
Policy
general statement of intent
that guides business
practices and work
Feasible
means something is possible or has a
chance of working; a study of whether
a business idea is feasible can lead to
a decision to open or not open a
business
Niche
is a smaller segment of a
larger market. Niche markets
meet the needs and desires
of their specialized markets
Example of
niche markets
Skateboarders are a
niche market in the larger
market of teenagers
Target
customers
the people MOST LIKELY to buy
a product or service (teenagers
with acne are target customers
for pimple cream)
Feasibility
analysis
tests the business idea or business
concept to see if it will work ** it
shoudl include information on any
competition (businesses already
providing your good or service)
Product
selection
high schoolers running a foods-based
business should select a product that
is inexpensive and easy to make (you
only get 90 minutes a day)
Prototype
a working model of a product, in
the Live Project it is the products
you make to taste and package
to see if your idea will work
Entrepreneurs
should have
good self-confidence; good math
and communication skills; a clean
well-groomed personal
appearance; good people skills
Business
concept
it is the idea that will form the basis for
a new business (this is the very first
thing an entreprenuer needs -- a solid
workable business concept
Product
standards
the rules and requirements that allow
each product to be the same (You
don't want the smaller cookie do you?)
They benefit the consumer.
Gross Profit =
Cost of goods sold
from revenue
Packaging =
the covering, wrapper, or
container in which
merchandise is placed for
retail sale
Markup =
the amount over what it costs to make
or produce something so that the
business can make money **
generally expressed as a percentage
To calculate
markup ...
A cake costs $10 to make and gives 20 slices. Divide
the total cost by the number produced to get the cost
per slice. Each slice costs 50 cents. Take a
percentage of the cost and add it on to reach the retail
price. 100 percent of 50 cents is 50 cents. The retail
price of your cake slice is $1 at a 100 percent markup.
Business plan:
the first step
Create a business
descriptions
Marketing
Objectives are ...
goals that
businesses set for
sales
The Marketing
Mix in general
Often businesses describe
the strategy for advertising
and selling their products as
the Marketing Mix
The Marketing
Mix is ..
The 5 Ps -- Product,
Price, Place,
Promotion, People
Balance
sheet
an accounting document that tells
the business owner (and anyone
else including banks) what the
business is worth at a given time
A value or worth to
the consumer can be
promoted as a ...
benefit
Consumer
Profile
a picture of the customer and
his/her needs that businesses
use to plan marketing
Demographics
a person's income level, age,
address and other information
that can be used as a part of
a consumer profile
Break-even
point
when the company has made
enough money to pay costs,
debt and salaries and begins
to make a profit
Sales
projections
for new products should be
conservative (or low) to control
expenses because in the beginning
there is a lot of risk and uncertainty
Visual
Inventory
a quick check of the most
used items to see what needs
to be ordered; used in small
businesses
OSHA
Occupational Safety and Health
Adminstration -- a federal goverment
agency that makes laws and inspects
businesses to keep workers safe
Live Project
target customers
faculty and
students
Inventory
Management
is required to keep costs
down. Poor management
will increase costs
Vendors
those who sell stuff to
businesses -- if there is a
problem with a shipment
contact the vendor
General
expenses
other than materials and supplies -the stuff you have to buy or use to run
a business. General expenses add to
production costs.
Cash Flow
Statement
a document that shows the
flow of money into and out of
a business (like a checking
account register)
Vendor
options
local vendors typically provide
good customer service -- larger
or national vendors generally
market based on low pricing
Business
Plan
a detailed document that outlines the
business concept, feasibilty, market
analysis, consumer profiles and all
other information available about a
proposed business