Writing a
Business Plan
Developing a New or Franchised Business
The project will be divided into:

Part 1: The Written Document – 100 points

Part 2: The Oral Presentation - 100 points

Total Project Value: 200 Points
The Business Plan
A is a written document prepared to guide
the development and operation of a new
business.
 A business plan is used as a planning tool in
the creation of a new business.
 The business plan is also used to explain the
new business idea to potential investors.
 The business plan should be written as a
persuasive tool to convince potential
investors of the possibility of success for the
new business.

Step 1: New Business Idea
Decide on a new or franchised
business idea.
 The business idea can be local,
national, international, or internet
based.

DECA Competitive Events

Your project idea must fall into one of the
following categories:
 Entrepreneurship Written Project – 30 Pages




maximum
International Business Plan – 30 Pages
Maximum
Internet Marketing Business Plan – 30 Pages
Maximum
Entrepreneurship Participating – Independent
– 11 Pages Maximum
Entrepreneurship Participating – Franchising
– 11 Pages Maximum
Project Guidelines

Print and keep a copy of your project guidelines.




www.deca.org
Hold mouse over “HIGH SCHOOL”
Move mouse to “COMPETITIVE EVENTS”
Move mouse over to “COMPETITIVE EVENTS
LISTING” and click.
 Scroll down the page to “Business Management &
Entrepreneurship” events.
 Click on your event choice and a PDF document will
appear.
 Print this document, these are the guidelines for your
project.
International Business Ideas

International Projects:
 Marketing Ozarks Tourism packages to
Canadians
 Selling American recycled and reconditioned
cell phones in developing countries:
Vietnam, Bangladesh, Nigeria, Republic of
the Congo
Franchising Business Ideas
Subway is the number one franchise in the
United States, followed by McDonald’s and 7Eleven.
 Consider a less known, and less expensive,
franchise opportunity.

Procedures:
Research and decide on a business
idea that you want to develop
 Use the classroom computers for
research and for writing your project.
 Follow the guidelines for your project.

The Skills You Will Develop
Communications
 Analytical
 Critical Thinking
 Time Management
 Basic steps in starting a business
 The ability to self-evaluate
 Understanding customer needs
 Understanding basic economic concepts

Title Page
Entrepreneurship Participating Event
Franchising Business
Java’s Brewin’
Harrison High School DECA Chapter
Harrison High School
925 Goblin Drive
Harrison, Arkansas 72601
Joe Wilson
February 6, 2005
Table of Contents
I. EXECUTIVE SUMMARY ………………………………………………………….....1
II. DESCRIPTION AND ANALYSIS OF THE BUSINESS SITUATION……... 2
A. Rationale and marketing research …………………….………………... 2
B. Introduction ……………………………………………………….…..………... 2
C. Self-analysis …………………………………………………….………………...3
D. Analysis of the business opportunity,
customer and location ………………………..………………….………..4
E. Proposed organization …………………………..…………….…….………..4
III. PROPOSED MARKETING/PROMOTION PLAN ……………….….….……...6
A. Proposed product or service ………………………………..….…….……..6
B. Proposed pricing policy ……………….……………………………………… 6
C. Personal promotion …………………………………………………..…..…...6
D. Nonpersonal promotion ………………………………………………….…...7
E. Place ………………………………………………………………….…….…….... 7
IV. PROPOSED FINANCING PLAN ………………………………………………..... 8
A. Projected income/cash flow ………………………....…….……..….…... 8
B. Projected three-year plan …………………………..……..…………….... 9
C. Capital and repayment plan ……………………………….………..….... 9
I. EXECUTIVE SUMMARY


One page description of the project
Do this page last
I am proposing a loan of $75,000 for the startup of a
Java’s Brewin’ coffee house franchise. Combined with my own
$25,000 this adds up to an initial startup expense of $100,000.
The coffee industry is booming. Americans drink three
times as much coffee as they did twenty years ago. In addition,
Americans are spending less time at home than years past. This
means that people are eating more outside of the home. This is
why I believe this Java’s Brewin’ is a great opportunity for me.
Java’s Brewin’ will provide its customers with twelve different
coffee blends everyday. A dozen varieties of muffins are
available and baked fresh daily.
I will hire two employees, one part time and one full
time. I will be the manager and be at the store any time the
business is open. I plan to pay the loan over a 10-year period at
6.5% interest. This would make my monthly payment $852 a
month. With your loan this opportunity could become a reality
for me.
II. DESCRIPTION AND ANALYSIS OF THE BUSINESS
SITUATION
A. Rationale and marketing research (Tell me WHY this
business is a good idea. What research do you have
that supports this good business idea?)
One of the reasons I would like to open a coffee house is that
it has always been my dream. When I was a young child,
sipping coffee, thinking about what to do with my life it
occurred to me than Americans drink three times as much
coffee as they did twenty years ago. I am passionate about
gourmet coffees and espresso drinks. Coffee is one of the
fastest growing areas in the beverage market. In addition to
that Americans are spending less and less time at home.
Drinks and foods are often eaten outside of the home. This is
why a coffee and bakery franchise will do so well.
B. Introduction (describe the type of business, give a brief
description of the product/service offered)
The proposed business is a Java’s Brewin’ franchise.
Java’s Brewin’ is a gourmet coffee and muffin establishment based
on the east coast.
Java’s Brewin’ has over 20 varieties of gourmet coffees
from chocolate raspberry to gingerbread. A selection of twelve of
these varieties is available everyday. Each store is equipped with
a Swiss made Java Espresso machine to ensure the best quality
espresso and espresso drinks. Considering that Americans drink
three times as much coffee as they did twenty years ago, this is a
profitable business that will only continue to grow.
No coffee house is complete without quality-baked goods.
This is why Java’s Brewin’ has over thirty varieties of huge
gourmet muffins. Blueberry, Georgia peach, and carrot cake are a
few examples of the twelve daily choices. Sugar free muffins are
also offered for the more health conscience customers.
C. Self-analysis (discuss your education and aptitude and
your actual personal experience or training in the
proposed field)
I have a substantial amount of work experience
that would be of great value to me in this business
franchise. I have worked over a year at a local business
called Neighbors Mill. During my time there one of my
many jobs was barrista. I learned how to make flavored
coffees, espresso drinks, and frozen coffees. I have also
helped the bakers with the breads and muffins.
During my time at Neighbors Mill, I learned to be
a versatile employee. I have served as a cook,
dishwasher, barrista, server, cashier, and bread delivery
person. I have also learned how a food business is run,
and how to deal with disgruntled customers.
D. Analysis of the business opportunity, customers, and
location ( Discuss the geographic, demographic and economic
situation of the trading area and the customers. Also discuss the
proposed business location.)
The Java’s Brewin’ franchise is a great opportunity for me.
The customers would be the residents of Harrison Arkansas,
which is located in the South Central region of the United States.
The mean income of Harrison city residents is $43,546.
The location is 1309 Liberty Plaza F, which is located near
the Federal Express Freight local headquarters. The location is
ideal for FedEx employees to purchase Java’s Brewin’ products on
their way to and from work.
E. Proposed Organization (Discuss the type of ownership, steps
in forming the business, planned personnel, and needed
management skills
I will be the owner and sole proprietor of the franchise. The
steps to starting this business would start with gathering information
from the franchiser. Next step would be to find a location for the
business. After the location is found contact the franchise and get the
rights to open the store. The next step is to get loans for the location
and franchise expenses. The next project will be to sign the lease and
pay the rent and take care of any renovations that need to be taken care
of. The next step to starting the business is hiring employees.
Finally, advertise like crazy and open the store. The planned
personnel is myself as manager and full time worker as well as one
additional full time employee, and one part time employee. I will be a
good manager, because I posses the qualities necessary to be a good
leader. I am cool under pressure, have creative ideas, good personal
skills, good problem solving skills, and a cooperative spirit.
III. PROPOSED MARKETING/PROMOTION PLAN
A. Proposed product or service (Give details of the
product/service, suppliers, or manufacturing plans)
Java’s Brewin’ is a coffee shop first and foremost.
It also sells muffins and bagels as well. It has over 20
different varieties of coffee, and 12 of these varieties
are available daily. In addition to coffees, espresso
drinks are also served. Each store is equipped with a
Swiss made Java machine.
Java’s Brewin’ also has 30 different varieties of
gourmet muffins. Twelve of these are available
everyday. They also have sugar free muffins for the
more health conscience customers.
B. Proposed pricing policy (Discuss
costs, markups, relationship to
competitors)
All pricing would be subject to the
pricing of the franchise. The prices are
competitive with similar franchises and
local businesses in the area.
C. Personal promotion (Discuss non-media
sales plan, staffing, and merchandising
appeal.)
I will promote my business by word of
mouth. I would call all my friends and
family about the opening of my business
“Java’s Brewin’.” I would also round up a
group of friends and hang fliers around
town to announce the opening of the
business.
D. Nonpersonal promotion (Discuss the
media you will use to promote your
business, create a promotion plan)
I would place advertisements in the
local newspapers, and on billboards.
There would be radio advertising as well.
All advertisements will have the Java’s
Brewin’ logo and the location of the
restaurant. The billboards will be placed
strategically in high traffic flow areas to
increase the probability that a potential
customer will take notice of the ad.
E. Place (Discuss the channel of distribution from manufacturer to
consumer)
The business will be located at 1309 Liberty Plaza F. It is located
less than ½ mile from Fed Ex Freight, which is the biggest employer in
the area. This is a great location, because it is convenient for Fed-Ex
employees to purchase the products on their way to or from work.
IV. PROPOSED FINANCING PLAN
A. Projected income/cash flow statement
Java’s Brewin'
First Year Income Statement
Gross Sales Revenue
$ 182,000
Cost of Goods Sold
$ 30,000
Gross Profit
$ 152,000
Expenses:
Rent
$ 14,000
Royalty Fee
$ 9,000
Utilities
$ 3,600
Loan Repayment
$ 10,225
Advertising
$ 6,000
Accounting Fees
$ 1,000
Insurance
$ 1,500
Wages
$ 30,000
Taxes
$ 13,500
Miscellaneous
$ 2,500
Total Expenses
Net Income
$ 91,325
$ 60,675
B. Projected three-year plan (Describe planned
growth.)
My three-year plan for growth estimates a 5%
increase in annual sales each year. I think this is a
conservative estimate and that my actual growth will be
somewhat more than 5%.
Based on my estimate of growth, by the end of the
second year my net income should be approximately
$64,000. At the end of year three my net income should
be over $67,000. This is a substantial income and
should provide a comfortable living while the business
continues to grow.
C. Capital and repayment plan (Discuss earnings and how you will repay
loan and discuss startup expenses)
The capital needed to start the business is $100,000. I am
requesting a loan of $75,000 that I will combine with my personal assets
of $25,000.
The loan will be repaid over a ten-year period. The proposed
interest rate is 6.5%. The monthly payment will be $852.
Start-Up Expenses
Initial franchise fee
Equipment and fixtures
Inventory
Lease Deposit/Rent
Lease hold & Improvement
Grand Opening Advertisement
$ 25,000.00
$ 25,000.00
$ 8,000.00
$ 1,200.00
$ 32,400.00
$ 1,900.00
Insurance, Licensing & utilities deposit
Additional Funds (3 Months)
$ 2,000.00
$ 4,500.00
Total
$ 100,000.00
The Power Point Presentation

The following is a power point
presentation used at State DECA
Competition last year.
T.J. Seidl
Andrew Stretton
Introduction




Opening a used
power sports
dealership
Sell, repair, service,
and customize all
vehicles
Offer gear and
apparel
Offer aftermarket
accessories
Self-Analysis
We both are avid motorcycle enthusiasts
 Had much experience servicing power
sport vehicles
 We have owned multiple types of power
sport vehicles already

Trading Area Analysis
Harrison currently has four retailers of
new power sport vehicles
 No dealers specialize in used models
 Plan on arranging an agreement to buy
the used trade-in models they receive
 Currently motorcycles are more popular
than ever, 34% increase in sales since
1998

Our Goal

We would love to make sure no one in
Harrison is stuck doing this:
Market Segment Analysis
Target age group is 16-60
 Average income level of Harrison, AR is
$33,948
 Population is 13,000
 Area is full of scenic routes

Analysis of Potential Location




Old Legendary Sportsman building
Located on the highly popular Highway 7 South
Not a power sport dealership on this side of town
Building offers lots of empty space for what we need
Proposed Organization
We would take equal ownership in the
business, serving as the shop’s main
mechanics during business hours
 Hire one secretary and one salesman,
both full time
 We plan on being open from 10-6
Tuesday through Saturday, being closed
Sunday and Monday

Proposed Product/Service
Selling all types of used power sport
vehicles
 Selling after-market performance parts
 Selling apparel and riding gear
 Full service, repair, and customization of
all vehicles

Proposed Marketing Strategies
Heavily market the business during the
first few months of operation
 Large outdoor billboard
 Plenty of radio and television ads

Projected Income
Gross Sales Revenue
 Cost of goods Sold
 Gross Profit
 Total Expenses
 Net Income

$444,400
$200,000
$244,000
$132,200
$112,200
Proposed Plan to meet Capital
Needs
$100,000 total start-up money
 Each of us has $20,000 to donate
 Asking for a $60,000 loan
 Payable in 5 years with 8% interest

Bibliography






Bike World, www.webbikeworld.com
Farese, Lois and Kimbrell, Grady. Marketing
Essentials, Second Edition, Glencoe/McGraw-Hill,
1997.
Harrison Chamber of Commerce.
www.harrison.dina.org
Rue, Leslie W. and Byars, Lloyd L. Business
Management: Real World Applications &
Connections; Glencoe/McGraw-Hill, 2001.
The 100 Best Small Towns in America, published
by Prentice Hall, 2002.
United States Department of the Census.
www.census.gov