Prepare a simple business plan (2-3 pages) for a new business that youare opening. The plan will cover the first three years of business in which you are attempting to make a profit. The business plan must be written in a professional manner with complete sentences, correct grammar, and an easy-to-follow format. You may search for business plans on the internet, but these will be more detailed and lengthy than you will need for this assignment. However, internet searches will provide good examples of professional formatting and content.
The following is a list of issues that you must address. You mayprovide additional information as you see fit.
Overview of your company: Name, type of business, the productsand services that it will sell. Students with last names beginning with A-M choose from the following types of businesses: grocery stores, bakeries, restaurants, caterers, or anything else related to food. Students with last names beginning with N-Z choose from the following types of businesses: clothing stores, shoes stores, bridal boutiques, book stores, car dealerships, or other retail establishments selling apparel, accessories, or consumer electronics. If there is something that you would rather write about, ask Dr. Mullin.
Market analysis: the geographic markets that you will serve (Phenix City, the state of Alabama, the U.S.?), and the customer markets that you will serve (who is your target market?), the typeof market that you are in (oligopoly? competition? etc). Describe how you determined your market type.
Start-up capital: How much will come from a small business loan and how much from your own savings? Include your debt financing into your calculations of profit and loss, assuming a 2% annual interest on your loan. To keep things simple, we will assume that you will only have 3 interest payments, due at the end of years 1, 2, 3 based on the debt that you have outstanding at the end of those years.
Types of resources: What types of resources do you need in order to run your business? You dont have to list everything that you will need, but be specific about the types of resources. For example, if you are opening a restaurant, you will need several different types of human resources as well as different general categories of capital resources, such as food, drinks, tables, ovens, etc. You will need this information when you prepare your profit/loss statement. How will you determine how many of each kind of resource you will need and how much money you will pay for each resource?? This is where our MRC and MRP analysis comes in. Think about how much each resource is contributing to your business.
Revenue generation: How will you earn the money to pay for the resources? You already have your start-up capital, but you need to earn revenue to pay for your resources and pay back your loan to the bank and to your savings account. Keep things simple by determining your average revenue per customer and then multiply how many customers you think you will serve in years 1, 2, and 3. This will give you your estimated total revenue per year.
Profit/Loss analysis: provide a simple P/L chart that outlines your revenue, your costs split into human resource costs, other operating costs, fixed costs, and interest costs, and your profit and/or loss in years 1, 2, and 3. Keep things simple and dont worry about depreciation costs. There is no one right answer in each of these areas. Your business plan will depend on the individual business that you have chosen.
Save your document in a Word or RTF file and upload it in the BlackBoard drop box. Put your name on the document as well as in the title of the document (what you name it when you save it). This extra credit is worth up to 10 points and is due on the day prior to the final exam.
Your work must be your own. Do not copy from another student. Even if you change a few words throughout the document, it is still plagiarism and Dr. Mullin can always spot a plagiarized document. You will be reported to the dean and receive a zero on the assignment. Please do not risk it. Write your own document and do not copy from anyone else.
