Jenkins Economics
T
HE
B
IG
P
ITCH
:
S
TARTING
A B
USINESS
P
ROJECT
D
O
NOT
LOSE
THIS
! Y
OU
WILL
NEED
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NOW
…
AND
LATER
.
(320 Points)
I
NTRODUCTIONOne way to start learning about how businesses operate in the American economy is to actually develop a business idea and “pitch” it to potential investors for financial support. For the next ten plus weeks, you, and your teammates (Choose
wisely! You will never see some of these people again after the end of the school year.), will consider what it might take to start a “for-profit” enterprise from the ground-up. You will then pitch your idea to a group of “investors” (us) in order
to secure financing to bring your product/service to the market.
Note: You will almost certainly NOT be developing a real business or product. You WILL be considering different ideas that might become a good product or service. Almost anything can be considered. Use your imagination. I am only asking
that you keep your ideas REASONABLE, POSSIBLE, and APPROPRIATE.
O
BJECTIVEThe purpose of this activity is for you to get a “feel” for some of the analysis and decision-making that characterize business operations in the American economy. As an entrepreneur, you (and your team) will confront basic issues of
starting a business, including determining the type of business organization, product development, marketing, and financing. In the end, you will find that this is a very “applied” type of assignment.
O
VERVIEWOFTHEP
ROCESSOnce completed, you will have covered these topics
1. Business Organization : Decide what type of business you want to run (sole proprietorship or partnership), delegate responsibilities, and choose a company name/logo.
2. Market Research : Generate ideas for a possible product/service, identify “target” consumers, assess demand and earnings potential, and develop a marketing plan (who are you going target and how are you going to reach them-in other words: advertising.).
3. Cost Analysis : Research and estimate the costs of production and pricing.
4. Team Presentation/Business Report : On an assigned day (week of _____________________), you will make a formal presentation to potential investors (the class) and turn in a written report.
Note: Your team may on occasion be able to use class time for “board meetings” to discuss your progress, BUT be aware that the majority of work on this project will be done outside of class.
G
ROUNDR
ULES You may NOT market any products/services related to (centered on) the following: sex, drugs, gangs, and alcohol… You get it. Anything not school appropriate. You WILL need approval (from me) on the product/service you decide to develop.
If your business involves a PRODUCT, your company must develop a product to which you have ADDED VALUE. If it is a SERVICE, you must show how it is different from everything else out there.
Any students who are absent for the group’s presentation or “absent” from the written work can/will receive no more than a “C” for that part of the project.
You may only work with up to TWO other people from THIS class period!
B
USINESSR
EPORTQ
UESTIONS(W
RITTENW
ORK)
A
LLMLA!
DO NOT put any of the following in a folder or binder of any type! All MLA!
1. What is the name of your business, and why did you choose it? Create and include a picture/copy of a logo of your design with this answer.
2. List the company’s owners (you and, if applicable, your partners) and their roles, jobs and responsibilities. For example: Who is the president, finance manager, marketing manager, and/or production manager? Please include the duties of each (advertising, personnel, sales, customer service…you understand).
3. What type of business organization have you formed (sole proprietorship or partnership) and why did you choose this form of organization? What are the advantages and disadvantages of your type of business organization? Note: Remember when we discussed this in class in the first few weeks?
4. What type of product/service are you proposing to sell (What exactly are you doing)? Why? Describe the product/service. Include a photo or drawing of your product(s) and/or the equipment needed to carry out your services.
5. If you are proposing to sell a product : How did you add value to your product?
If you are proposing a service: How is your service different from all of the other similar services (your competition) out there?
6. What variety of products did your group brainstorm to sell? In other words, what did you consider doing before you settled on your final idea?
7. What specific land, labor, and capital will you need to produce, sell and distribute your product?
8. Where and how will your product be PRODUCED? Where will you primarily SELL your product?
9. If you were to decide to go forward with this idea and start an actual, on-going business, what steps would you need to take? What government approvals are necessary (Business licenses, environmental regulations)?
10. What kind of market research did you perform? Note: This will almost always be in the form of a market survey that we will do as an assignment here, in class. This question will help you with numbers 13, 14, 16, and
possibly/ultimately 17. For full credit, you must prepare a demand graph for the presentation.
Use ONE of these: Demand graph template on my site, business project page (Excel document), do not change prices, or
https://www.desmos.com/calculator/51rhsvod3u
(Click on template and use your data from the market survey question, “how much would you be willing to pay?” to complete.).
11. In what kind of market structure will your company compete? Is it monopolistic competition, oligopoly or monopoly? Remember these choices from chapter 4? What are the characteristics and barriers to entry in your market structure? This is all found in chapter 4.
12. If you will face some competition, who or what is your competition?
13. Explain how you set the price for your products/services.
14. Describe your customer base, or target. In other words, what is the age, gender, personality…of your ideal customer?
15. Prepare a radio commercial (10-30 seconds), television commercial (20 seconds-2 minutes MAX!) and print advertisement (1/4 page MIN-1 page MAX) for your company or your products/services. Explain the strategy behind each of your advertisements/commercials.
17. How much money will you need to start the business?
Remember…NO folders or binders! All MLA!
B
USINESSP
RESENTATIONS(T
HEC
LASSROOMP
ITCH)
In addition to the above written part, in order to receive full credit you must present your findings to us, the investors.
As a start-up company, it is necessary that you secure financing to bring your product/service to market. Commercial banks would not be a likely source of funding, as you would be too high of a risk. Therefore, you must go before a group
of private investors, who are willing to take the risk (in exchange for a potentially high payout) and invest in your ideas. You must convince the investors that you have a viable and profitable business enterprise.
The following is a list of requirements for the presentations.
ALL teammembers involved in the business enterprise are to be present on the assigned presentation date, unless otherwise arranged and approved. All team members are to participate in the written work as well as the presentation itself.
Presentations are to be a minimum of five minutes and a maximum of ten minutes.
Presentations will include a minimum of four visual aids. This is a partial list of possible examples:
One print ad for a newspaper or magazine. You have to do this anyway. Why not show it to the group?
Your income statement/financial report. Again, you have to do anyway for full credit.
Product prototype, picture of a possible location/building, tools or machines involved in your business…
A graph (you will eventually do this anyway), logo (again…already done), chart, additional video…
PowerPoint slides with pictures/clip art.
A short promotional film in addition to your TV ad. The TV ad does NOT count as a visual.
Presentation Outline
Here is what you will do the day that you present. Remember, you have to do this in five to ten minutes.
Introduce your company and your team members (Treat the presentation like a real “pitch” for funding. Consider us as strangers. You do not know us and we do not know you.).
Give detailed answers to all of the written questions. Remember you have a certain amount of time (Ten minutes max.). Give yourself time to answer the questions in the presentation and then consider anything over and above the information and answers.
Present your estimated income statement/financial report (Question #16).
Present television commercial (radio only if you have time).
How much money will you need to start the business? Tell us how much you are asking from us today (Question #17).
Answer questions from investors.
Get to work, start now, start now, and start now! Good luck.
Business Project Proposal
(45 Points)
STOP! Before you began, you must clear your business idea with me. Do not (
NEVER
) lose any part of this
handout. The first thing that you must complete is this short form. You will give it to me with your idea on:
__________________________________ and then I will return it to you with either my “blessing” or my
denial.
Everyone must turn in one of these before moving forward with this project!
Name:
For this project, I will be working (
circle one
):
1. Alone.
2. In a group. (
You may choose up to two
others from this class.
). Name(s) of other group members:
Why did you choose this type of business? This is the justification for me giving you the points on this
assignment. (
One paragraph minimum
):
Jenkins Economics
