*
Financial Plan : “Bottom Line”
Presented by Sheryl Nolen, CEA 4-H
WebEx Houston4HCEO4 October 22, 2015
* Career & Entrepreneur Options (CEO)
* Learn about running a business
* Tapping into your talents
* Work hard and make money
* Grow your creative genius
* Presentation and communication skills
* Trade Show exhibit and contest
* A chance to dream BIG
*
Mission
Statement for
your Business
* Ideas - “next big idea” constantly thinking
* Dreams - thoughts, images, hopes
* Vision – idea and dream in great detail
* Concepts-summary of the idea, how it will work
*
Your business is
defined by your
thing!
What are your dreams?
What things do you like to do?
What are you good at?
What things do other people think you are good at?
What would you like to be good at?
Do you know why you want to be good at it?
What do other people think you should do when you
start working?
Can you make money at your thing?
*
http://www.teachingkidsbusiness.com/resource-center-whats-your-thing.htm
*
Have you what
it takes to start
a business?
What is an
Entrepreneur?
Houston 4-H Career & Entrepreneur Options (CEO)
Top 10 Traits of Entrepreneurs
1. Confidence
2. Persistence
3. Integrity
4. Creativity
5. Enthusiasm
6. Determination
7. Risk-taking
8. Hard-working
9. Adaptable
10.Independence
Reference: You’re The Boss Lifeskills & Entrepreneurship Program/2000 YoungBiz
Media by Bonnie Drew - ISBN 1-56688-565-5
Lesson 3 . Pp.15-18
1. Week 1- 9/29 “All About the Business Plan”
2. Week 2-10/3
4-H CEO Orientation Workshop
3. Week 3-10/7
Marketing 101 Introduced
Incentives “Bonus Buck Plan”
4. Week 4- 10/12 Products & Services “Price It Right”
5. Week 5- 10/22 Finance Plan “Bottom Line”
6. Week 6- 11/7 4-H CEO “Boot Strap” Workshop
7. Week 7-11/9
Get ready for Trade Show
8. Week 8 -11/16 4-H CEO Business Plan Review
9. Trade Show Applications Due November 20th
10. Dec. 5th 9:00 am- Noon Houston 4-H CEO Trade
Show and Minnow Tank at Extension Office
*
*
*
*
*
*
Complete a Marketing Plan
Describe the product
Identify Customer needs
Calculate Cost and Profit per unit
Describe marketing strategies (distribution
and promotion)
* Philanthropy efforts
* Calculate marketing cost
* Develop a Business Card and flyer
*
* Marketing Plan
* New logo
* Sign
* Business cards
* Facebook marketing
* Sending Christmas Cards
* Philanthropy
*
* Packaging Supplies
* Business Cards
* Supplies to produce product
* Cards & postage
* Philanthropy 5% annual sales
* Promotional samples?
*
*
*
*
Learning to adjust and adapt to the market
Conducting a customer survey
learning from experience
*
http://bizkids.com/clip/profile-vashon-farmers-market
* Managing
money the revenue
.
* Accounting “keeping the books” in balance
* Statement of debit and credits
* Balance Sheet =assets, liabilities and equity
* Success of business is measured by profit
* Financing getting the money needed to start
or expand the business
* Start up capital or seed money
*
http://www.teachingkidsbusiness.com/business-basics-finance.htm
* Start Up Costs _______ Total
List out all the items needed to produce the
product or perform the service including supplies
and marketing items
* Fixed Costs per month ________ Total
Utilities, advertising, salaries, insurance, rent,
miscellaneous
*
Monthly Income Statements
* Revenue generated
* Variable costs
* Gross profit
* Fixed Costs
* Profit before taxes
* Taxes 20%
* Net Profit
Calculate Return on investment =Net Profit
Divided by Start up Costs X 100 = %
The business has a return on investment of ____%
*
* Number units can you sell in an hour? ___ Units per hour
* Number units can you sell each day? ___ Units per day
* Number days do you plan to sell each week? ___ days a week
* Number weeks you will work each month? ___ weeks a month
*
Selling
Price
Sales
Sales per
per Hour Day
Sales per
Week
Sales
per
Month
Revenue
per
Month
Calculate Sales per Day by multiplying units per hour by # hours you
work each day
Calculate Sales per Week by multiplying sales per day by # of days
you work each week
Calculate Sales per Month by multiplying sales per week by the
number of weeks you work each month
Calculate Revenue per month by multiplying sales per month by the
selling price per unit
*
Monthly Fixed Costs Divided by
Gross Profit per Unit
The business needs to sell ______ (#) units
each month to reach the break even point.
*
Total Start-Up Capital required __________
* Personal savings
* Profit generated from established business
* Family & Friends
* Debt Financing
* Equity Financing
* Business grant Total Financing
I am requesting $ ______________ to be used s start-up
capital in the formation of my business
*
Financial Records
* Ledger
* Quick Books
* Checking or Banking
* Receipts
* Deposits
* Expenses & Bills
*
* Includes date
* Describe the item
* Debit money received
* Credit money paid out
* Balance
*
www.aplos.com/Guide-To-Accounting-For-KidsAndTeens.jsp#sthash.1Am88OmL.dpuf
* Estimate expenses for the business variable
costs and fixed costs
* Estimated revenue from sales
* Pro forma Profit & Loss = projected in future
* Subtract expenses from revenue to get profit
*
* Complete a Financial Plan
* Forecast Sales
* Complete Venture Capital Request
* Set up Recordkeeping system
* Complete Break Even Analysis
* Build the business portfolio
*
http://www.dwmbeancounter.com/BCTutorSite/BCInsights/CheatSheet
/DrCrTChart.pdf