Aryssa Bouchard
Olga Kowalewski
Grade 11
Age 17
BUSINESS PROFILE
 We selected this business as people in America are becoming more interested
in different teas, and have their own tastes and opinions.
 Type of Business:
-Retail
-We will provide customers with a wide arrange of homemade and custom
teas that they can buy online.
 Legal Structure:
-Partnership
-We chose to be a partnership because we feel that the best way to run a
business is by having the knowledge and resources of two people.
OPPORTUNITY
 Opportunities
-Increasing trend in teas and natural products.
-Other tea stores don’t customize tea.
-Tea has proven medical benefits.
 Qualifications
-Have experience and knowledge about teas.
-Bilingual and currently learning a third language.
-Have taken a Marketing/Entrepreneurship class.
CONSUMER PROFILE
 By Location




-Connecticut
By Population
- Males and females aged 25 and up
By Personality
-People who enjoy drinking tea
-People who are willing to pay extra to have
an excellent quality tea
By Behavior
-People who often buy loose tea and drink
it often
-People who would like to purchase tea as
gifts
By Income
-Upper-middle to upper income families
COMPETITION
Competitor
Teavana
Price
$24.80
Quality
Excellent
Greatest
Strength
Greatest
Weakness
•Large selection
•Can’t customize
•One on one
your own tea
customer service
The Tea Spot
Teascapes
$19.98
$18.00
Excellent
Good
•Large selection
•Can’t customize
•Sells teapots and
accessories
your own tea
•No advice given
•Customers can
•Can’t customize
seek advice
your own tea
Competitive Advantage
• Custom made tea to customer’s taste
• Customers can seek advice about our products via the internet
MARKETING MIX
• Price:
•
Price reflects the quality of custom-made tea according to
customer’s personal taste
• Place:
•
Connecticut
• Product:
•
•
Custom made tea
Internet convenience
• Promotion:
•
•
•
Business cards
Website/Social networking
Tea tasting
MARKETING PLAN
Phase
Awareness
Method
•Tea tasting
•Business Cards
•Word of mouth
•Online Social Networking
Purchase
•Free Shipping
•Quality Products
Retention
•15% discount on next
purchase if you refer a friend.
•Free samples with each
purchase
Description
Cost
•Weekly event located at Whole
Foods.
•Handed to customers at events
and given with each purchase.
•Customer will share with others
if satisfaction is met.
•Facebook and website
•Sampling Tea$30.00/mo.
•$0.22/business
card
•Free
•Free
•Customers will be aware of this
on our website.
•We guarantee superior quality
with every purchase.
•Free
•Encourages customer to spread
the word about the business.
•Encourages customer to buy
more of our products.
•$4.50/person
•Free
•$0.46/sample
COST OF MATERIALS/DIRECT LABOR
Definition of One Unit
4 oz. Can White Jasmine Pomegranate Tea
Cost of Sales Per Unit
Direct Labor
(Labor Cost per Hour)
Time (in hours) to make 1 unit
$8.25 per hour
5 min or .08 hours
Direct Labor Cost Per Unit
$0.66
Total Direct Labor Per Unit
$0.66
Material Description
Cost/Total Quantity
Cost Per Unit ($)
3 oz. White Tea
$36.50/80 oz.
$1.37
0.5 oz. Jasmine Tea
$41.24/80 oz.
$0.26
0.5 oz. POM Pomegranate Juice
$9.76/60 oz.
$0.08
1 4 oz. Tin Can with Label
$61.00/100 cans
$0.61
1 box and packaging materials
$50.00/100 boxes with
materials
$0.50
Total Material Cost Per Unit
$2.82
Variable Costs Per Unit (shipping + handling)
$1.50
Cost of Sales Per Unit
$4.98
ECONOMICS OF 1 UNIT
Definition of One Unit
4 oz. Can Loose Tea
Selling Price per Unit
$30.00
Direct Labor Per Unit
$0.66
Materials Per Unit
$2.82
Total COGS Per Unit
$3.48
Variable Costs Per Unit (shipping +handling)
Total Cost of Sales
Gross Profit Per Unit
$1.50
$4.98
$25.02
TIME MANAGEMENT PLAN
Business Schedule for a
Typical Week (Aryssa)
Entrepreneurship
10 hrs.
Business Schedule for a
Typical Week (Olga)
Entrepreneurship
10 hrs.
School Hours
55 hrs.
School Hours
50 hrs.
Volunteer Service
4 hrs.
Volunteer Service
3 hrs.
Sleep
56 hrs.
Sleep
56 hrs.
Free-Time Hours
43 hrs.
Free-Time Hours
49 hrs.
AVERAGE MONTHLY FIXED COSTS
Type of Fixed Cost
Monthly Cost
Entrepreneurial Stipend
$50.00
Utilities
(cell phone, internet, electricity, gas)
$99.50
Advertising
(business cards, taste testing, website)
$63.34
Rent (Home)
$140.00
Liability Insurance ($.25M worth)
$37.50
Depreciation
(laptops, phone, oven, tea dispenser)
$17.86
Total Monthly Fixed Costs
$408.20
MONTHLY SALES PROJECTIONS
Month
Units
Sold
January
55
February
67
March
84
April
88
May
92
June
103
July
105
August
112
September
118
October
124
November
131
December
150
Total = 1,229
Monthly BreakEven Units
16 units
PROJECTED YEARLY INCOME STATEMENT
Selling Price Per Unit
# of Units Sold
$30.00
1,229
Total Sales
$36,870.00
Total COGS
$4,276.92
Other Variable Costs
$1,843.50
Total Variable Costs
$6,120.40
Gross Profit
$30,749.60
USAIIRD (yearly)
$4,898.40
Other Costs/Unforeseen
$2,500.00
Total Fixed Costs
$7,398.40
Profit Before Taxes
Less Estimated Taxes at 25%
NET PROFIT
$23,351.20
$5,837.80
$17,513.40
RETURN ON INVESTMENT
RETURN ON SALES
(ROS)
For every $1 dollar
of sales,
my business earned:
48%
$0.48
(ROI)
For every $1 dollar
invested,
my business
earned :
825%
$8.25
START-UP INVESTMENT
Entrepreneurial hours needed
for start-up
Wage I pay myself
Total start-up
time investment
24 hours
$8.25
Item
Where I will buy this?
Two Laptops
Best Buy
Already Owned
Two Cell Phones
Verizon Wireless
Already Owned
Oven
Bernie’s
Already Owned
Inventory
Internet
$500.00
100 4 oz. Tins with Labels
Container and Packaging Supply
$61.00
100 Shipping Boxes with packing
materials
ULINE
$48.00
4 Gallon Tea Dispenser
Coffee Wholesale USA
$69.65
100 Business Cards
Zazzle
$21.80
$198.00
Cost of Item
CASH RESERVE
$1,224.60
Estimated TOTAL START-UP INVESTMENT
$2,123.05
FINANCING STRATEGY
FOR TOTAL START-UP INVESTMENT
Source
Amount
Debt
Personal Savings
(already saved)
$1500.00
X
Relatives/Friends
$623.05
X
Total:
Equity
Gift
$2,123.05
SOCIAL RESPONSIBILITY PLAN
 Teassentials will donate 7% of our annual net profits to the
Vitamin Angels charity.
 Consumers will be aware of this on our business cards and
website.
BUSINESS & EDUCATIONAL GOALS
Business
Educational
-To improve our website so
customers will be able to
purchase items with credit
cards.
- To graduate top of our class
with exceptional grades,
while meeting the needs of
our business.
-To open a store to sell
products by the third year.
- To attain a bachelor’s
degree and be accepted into
an accredited medical school
to begin a career in
medicine.
YOUR TASTE IS KEY, SO YOU’LL LOVE
OUR TEA!
Thank you for your consideration of
Please visit our website at
http://www.wix.com/teassentials/teassentials