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How will you attract customers away from them? 4) How will your business make money? How much will it cost you to make, purchase or deliver your products or services? What price will you be selling your products or services at? How much profit will you make per sale? How many sales do you plan to make in the first year of operations? What evidence do you have that this is achievable? Note: Social ventures still need to have income. There’s a saying; “Just because you are non-profit doesn’t mean you are for-loss”.
How can your social venture make enough money to cover its operating expenses? 5) How much will it cost to launch your business and keep it running? How much money will you have to spend to start your business? Think of things like website, store fit-out, marketing etc. How much money will you have to spend on an ongoing basis to keep the business running? Think of things like rent, wages, phone bills etc 6) How many sales will it take for your business to become profitable? How long will it take you to achieve this many sales?
Otherwise known as the break- even point, this is when you have made enough profit to cover the amount you invested to launch the business. Use the following formula to figure out how many sales you need to make: Unit Sales Required to Break Even Fixed Costs / (Unit Sale Price – Unit Variable cost) 180,000 = O / (3,000 – 150) = $2850 X 20 = $57,000 180,000 = O / (6,000 – 150) = $5,850 XII = $58,500 180,000 = / (15,000 – 150) = $14,850 M = $59,400 $174,900 P. A With this calculation we will need apron. 13 months to B. E and for the company to start making money.
Where: Fixed Costs = all the expenses your business will incur regardless of making any sales Unit Sale Price = the price you are selling each product or service at 3,00 Unit Variable Cost = how much it costs you to make and deliver the product or service Finally, explain how long you think it will take to achieve this many sales. 7) What are the three most important things you need to do to make your business work? For every business there are hurdles that must be overcome to cake it a success. What three things are critical for the success of your business? How will you overcome these hurdles? ) Why do you think Jacques Chesterfield should invest in your idea? How much money would you want her to contribute and what are you going to give her in return? If Jacques were to invest in your idea, how much money would you need and how much of the business would you be willing to give her in return? How would she then make money on her investment? If you don’t need Jacques to invest in your idea explain how you will secure enough money to launch the business on your own. Note: Social ventures explain why Jacques should invest even if she isn’t going to get financial return.
SECTION 2: PROTOTYPING Length: No set length – mainly pictures Contribution to total assignment mark: 25% For this section you need to create and document a prototype of your products or services. For product ideas you should make a physical prototype and provide pictures of that prototype. For service ideas you should at least create a storyboard of how the service will be delivered to customers. Also consider creating visual mock-ups of you brand, website and / or store. The objective of a prototype is to make your idea as real as possible.
Your audience should be able to see your prototype and understand exactly what your business concept it about. SECTION 3: LAUNCH CAMPAIGN Contribution to total assignment mark: 20% For this section you need to think of a launch campaign that will get your business maximum exposure for minimum expense. Using what you learned in the Marketing lecture develop a guerrilla marketing campaign that will really showcase your business to potential customers. Provide visual mock-ups of how this campaign will look. Provide details on how, when and where you will launch he campaign and what sort of reaction you are hoping for from customers (e. . How many sales enquiries the campaign will generate). BONUS MARK: Although not necessary, a bonus mark will be given to any team which can also come up with a great Absurd Alternative or Extreme Consequence ad for their product or service. SECTION 4: IDEA PRESENTATION Length: N/A – In class activity during exam period Contribution to total assignment mark: 10% For the final part of this assignment you will have to stand up in class and present your idea. You’ll have a maximum of 6 minutes to present your business concept, prototype and launch campaign.