SBM 1000

the project is to create a company

project the Mask with the name True Barrier 

( We are looking for this issue due to the circumstance in which we are and that would be a high demand for the market)

I am sending an example of a classmate and the other two is what the teacher wants us to do

Wooden Grain Toy Company

Business Plan

Andrew Robertson, Owner

Created on December 29, 20

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6

Executive Summary

Product

Wooden Grain Toys manufactures high-quality toys for children aged 3-10. All toys are made from solid hardwoods including maple, beech, birch, cherry, and oak. The toys are built to be long lasting with sufficient moving parts to engage each child’s interest, but not limit his or her imagination. 

Customers

The target audience for Wooden Grain Toys is adults, specifically parents and grandparents who wish to give their children or grandchildren the opportunity to play with a toy that is not only durable and aesthetically pleasing, but also foster the child’s creativity.

Future of the Company

Although the toy manufacturing business is highly competitive, we believe that there is a place for high-quality, attractive, durable, and affordable toys. Our goal is to build and market toys that will entertain children and stand the test of time.

Company Description

Mission Statement

To build and sell high-quality toys that will be cherished and handed down from generation to generation.

Principal Members

Andrew Robertson — owner, designer and primary builder

Jane Robertson — business manager/bookkeeper

Bill Williams and Houlin Lee — builders, assemblers, and painters

Mickey Soukarin — web master and handles shipping for web, mail, and special orders

Legal Structure

Wooden Grain Toys is a sole proprietorship.

Market Research

Industry

Built-Rite Toys will be a part of the toy manufacturing industry. Currently, wooden toys are considered a niche market, comprised of different sized companies. The largest companies, such as Plastique Toys and Metal Happy Toys, have large inventories of products that are offered internationally. The smallest companies sell locally either in shops, at craft fairs, or online.

This industry is currently suffering from the economic recession as consumers are spending less on non-essentials. However, industry revenues increased by $1.2 million in the 2nd quarter of 2012. This means there is a potential for growth as the economy recovers.

Detailed Description of Customers

The two groups that the company plans to market to are parents (age 18-30) of young children and grandparents (age 60-75) of young children with an income range of $35,000 – $80,000 a year. Our target customers are interested in giving durable, well-made toys to their children and grandchildren to help foster creativity. They value quality and they research the products they buy. Our target customers are willing to spend more money on products that are of higher quality and last longer.

Company Advantages

Wooden Grain Toys has the following advantages compared to competitors:

· Basic, practical designs.

· Safe, non-toxic paints, parts, and accessories.

· Easy-to-assemble parts.

· All components are manufactured in America and made with grade-A wood, high quality steel, and rubber.

· Quick, 48-hour delivery since our goal is to keep at least 50 units of each toy in stock.

· High-quality, interactive website.

· Face-to-face interaction with customers at craft shows over a three state area.

Regulations

Wooden Grain Toys must meet all federal and state regulations concerning toy manufacturing. Specifically, Code of Federal Regulations in Title 42, Parts 1234 and 9876.50, 51, 52 and 89 C.F.R. 5555.18(a)(9); Consumer Product Safety Improvement Act of 2008; Lead-Free Toys Act; and Title 99.9 of the Code of Oregon.

Service Line

Product/Service

Wooden Grain Toys will sell wooden toys made from solid hardwoods (maple, beech, birch, cherry, and oak) and steel rivets. The toys are handcrafted and designed for small children to easily use. Our line currently includes the following nine models:

· All-Purpose Pick-Up Truck w/movable doors and tailgate

· Dump Truck w/functioning dumping mechanism and box

· Biplane (two-seater) w/movable propeller

· Steam engine with coal tender – additional cars available separately:

· Caboose, flat car w/logs, box car, tank car, coal car

· City Bus

· Tow Truck

· Flat-Bed Truck w/logs

· Sports Car

· Sedan

Pricing Structure

Wooden Grain Toys will offer its products for the following prices:

· All-Purpose Pick-Up Truck w/movable doors and tailgate – $25

· Dump Truck w/functioning dumping mechanism and box – $30

· Biplane (two-seater) w/movable propeller – $20

· Additional train cars (single car) – $5

· Additional train cars (three cars) – $12

· City Bus – $12

· Tow Truck – $18

· Flat-Bed Truck w/logs – $35

· Sports Car – $20

· Sedan – $20

Product Lifecycle

All current Wooden Grain Toys products are in production and inventory is being accumulated.

Intellectual Property Rights

Wooden Grain Toys is a trademarked name in the State of Oregon.

Research and Development

The company is planning to conduct the following research and development:

· Include a feedback mechanism on the website for ideas, suggestions, and improvements

· Provide comment cards for distribution at craft fairs

Review available market research to identify top children’s toys and reason(s) for their popularity

Marketing & Sales

Growth Strategy

To grow the company, Wooden Grain Toys will do the following:

· Sell products at craft fairs in California, Oregon, and Washington.

· As business grows, advertise in target markets, especially in advance of the holiday season.

Communicate with the Customer

Wooden Grain Toys will communicate with its customers by:

· Providing an email newsletter with company news, product information, and craft fair schedule.

· Using targeted Google and Facebook advertisements.

· Utilizing social media such as Twitter, YouTube, Facebook, LinkedIn, Pintrest and Tumblr.

· Providing contact information on the company website.

· Adding labels on toys that include company name, contact info, and web address.

How to Sell

Currently, the only person in charge of sales for Wooden Grain Toys is the owner, Andrew Robertson. As profits increase, Wooden Grain Toys will look to add an employee to assist with social media and online marketing. The target demographic for the company will be parents of children aged 3-10. The company will increase awareness to our targeted customers through online advertising and attending craft fairs.

This example business plan is provided by the Small Business Administration.

Get help starting and running your small business at SBA.gov.

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WOODEN GRAIN TOYS

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Business Plan
Presentation Format

The investor presentation must be clear, concise and compelling to:
Generate investor interest and build confidence
Lead to additional investor meetings
Should be 20-30 minutes in length
Charts, graphics, pictures and verbiage should be simple and easily read (no “eye tests”)
Each slide should have between 3 and 6 bullets that are succinct (no paragraphs, uncluttered)
Presentation format may vary depending on the company but the following format provides a reasonable order and flow –it is but one approach to making investor presentations.

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Order of Presentation
Introduction
Problem
Solution
Market, Customers
Competitive landscape
Business and Revenue Models
Management Team
Financial Projections Funding
Timeline
Summary

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Introduction
Briefly introduce yourself and your company
Company name and company logo
Presenters names (give titles if pertinent)

Slide time: approximately 30 seconds

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Introduction–continued
[this is a very important slide that requires lots of time to create because it must be succinct, comprehensive and COMPELLING]
Brief overview of company (elevator pitch)
What exactly the company does (stated succinctly)
What products or services are offered
What problem is being solved, and
Why these products or services are compelling, e.g., “…the only product that enables [solution] to [the problem]…”
Slide time: approximately 1 minute

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The Problem/Opportunity/Need
Define the problem or need in the market
Describe how significant or prevalent the problem may be
If appropriate, describe why now is the right time for a solution
Provide a “problem” scenario that provides a basis for your company’s product or service

Slide time: 60 to 90 seconds

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The Solution
(1 to 2 slides)
Clearly and succinctly describe the company’s product or service that will address the problem
Illustrate the company’s solution with graphics, pictures or videos as necessary (keep this very simple)
Provide brief list of features, benefits and advantages
What is the value proposition for the customer (How well will the product or service solve the problem)?
Cost savings, convenience, reliability, etc. (be specific)
Describe “barriers to entry” created by your product (e.g., patents)

Slide Time: Approximately 01:30 (May require more than one slide)

The Solution
Provide an understandable, practicle example of how your product/service works or what it does.
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Sample Feature-Benefits Table
Slide Time: Approximately 60 seconds
Features Benefits

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Company Status/Progress
Build investor confidence in your company
Domain expertise of management and staff
Customers and contracts established (letters of intent)
Strategic partnerships established
Product development status—describe milestones achieved to reduce risk (e.g., alpha or beta testing)
Other significant information to validate or reduce risk
Slide Time: Approximately 60 seconds

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The Market
(2 to 5 slides)
Describe market size, growth, trends and maturity
Industry and market segment data (see sample, next slide)
Market challenges
What market segment(s) are served by the company?
What is the company’s potential in the market?
Estimated Revenue Growth in graphic or tabular form (see next slides, for examples)
Market share projections are optional
Slide Time: Approximately 90 seconds
(More than one slide may be required)

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Global Market for [your product]
Slide Time: Approximately 60 seconds
Region Demand (US $ MM) % Globe
Asia 1700 32
Europe 1500 30
North America 1300 25
Latin America 415 8
Africa 200 4
Others 64 1

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US Market with key segments
Slide Time: Approximately 60 seconds
City World Rank US $ MM % Country % World
New York 1 865 22.8 5.3
Los Angeles 3 300 8.3 1.9
Chicago 4 285 8 1.8
Dallas 21 105 2.8 0.64
San Jose 22 104 2.8 0.63
San Francisco 23 103 2.7 0.62
San Diego 26 100 2.6 0.61

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Customers
Describe the company’s current and potential customers
Profile of the optimal customer
Value proposition to customer
Validation of Customer Acceptance
Customer Feedback, Survey Data, Testimonials
Purchases, Letters of Intent
Partners
Example of customer

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Competition and Advantage
(2 TO 3 SLIDES)
Competition
Describe the direct (competing product or service) and indirect competition (alternative solution) for your company and its product or service.
Describe specific strengths, weaknesses, and opportunities related to competition.
Describe how your product, technology or service differentiates itself from the competition? [very important]

Competitive Advantage
What is the company’s competitive advantage?
Why will customers buy your product or service over the competition?
Show a competitive matrix to illustrate differentiation (see next slide)
Subject Time: Approximately 2 minutes (more than 1 slide)

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Competitive Comparison
(see next slide for optional approach)
Product Advantages Disadvantages
Product A
~$12/100 units
Product B
~$30/100 units
Product C
~$17/100 units

My Company Product
~$9/100 units

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Competitive Matrix
Product Feature A Feature B Feature C Feature D Feature E
MY PRODUCT ● ● ● ● ●
Product 1 ● ●
Product 2 ● ● ●
Product 3 ● ● ●
Product 4 ● ● ●
Product 5 ● ● ●
Product 6 ● ●

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Competitive Positioning

Your Company, Inc.

Gizmo

Gadget.com

Yippee
Flexibility
Functionality

Yikes

Zowie

Thingamabob

End First Section

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Business Model and Marketing Plan
(2 TO 5 SLIDES)
Describe the company’s business and revenue model
What is the overall business strategy?
How will you sell your product or service (distributors, internet)?
How will the company generate revenue for its product or service?
Describe the sales cycle for the company’s product or service
Describe the Marketing Plan (if appropriate)
What is the go-to -market strategy?
What is the pricing model? Gross margin?
How will you access customers? (including advert. and promo.)
How will your product or service be distributed?
What customer support will be needed?
Note any commitments from partners, distributors, granting agencies, etc. regarding benefits of your product
Slide Time: Approximately 90 seconds

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Regulatory Issues
(not necessarily included in all investor presentations)
Include pertinent info regarding FDA, FTC, or other pertinent government agency

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Management Team, Advisors
Build investor confidence with team
Credentials, proven track record, domain experience (do not include weak credentials )
Describe skill and experience gaps to be filled
List the company’s leadership team
Include name, position, experience (abbrev.)
These are credentialed experts
List of company Directors and Advisors
Include name, summary of experience

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Financial Projections
Provide 3-5 year financial projections for the company (abbreviated chart or graph—see next slide)
Include financial projections to show year-to-year growth (show a basic income statement table—see next slide for an example)
Is the company overstating or understating market share and/or growth?
Can the company scale its operations as it grows?
List major facts and assumptions
Are the assumptions believable and achievable?
Slide Time: Approximately 90 seconds

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Financial Projections:
Income Statement Summary
  2008 2009 2010 2011 2012
Revenue 500 5,207 12,203 25,565 51,894
COGS 402 3,270 7,179 14,395 29,145
Gross Profit 102 1,937 5,024 11,170 22,749
Oper Exp 4,318 3,572 4,229 8,165 16,445
Net Income (4,216) (1,635) 795 3,005 6,304

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Financial Projections:
Break Even Analyis
B/E(Quantity) =
Total Fixed Cost
Price per Unit – Var. Cost per Unit
Break-Even
TR = TC
Units Sold
Revenue
[
]
}
Variable Cost

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Funding
What funding has the company received to date?
Amounts and sources
How will the company be financed?
How much money is the company currently seeking from Investors?
How will the funds be used? (use tabular format—see next slide for an example)
What key value-building milestones will be achieved with funds (market test, market expansion, etc.)
Anticipated future funding needs
What are the exit strategies for the company? (when?)
What is the expected ROI for investors
Slide Time: Approximately 2 minutes (this section is more than one slide)

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Startup Budget/Use of Proceeds
First year Budget Cost
Salaries 510,000
Repairs & maintenance 8,400
Local Advertising 5,000
Marketing 51,400
Accounting and legal 5,000
Rent 17,798
Internet & Telephone 5,940
Equipment 48,000
Domain Name 10
Total $651,548

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Use of Proceeds Breakdown

Chart1

Salaries (includes payroll taxes)

Repairs & maintenance

Local Advertising

Marketing

Accounting and legal

Rent

Internet & Telephone

Taxes (Real estate, etc.)

Depreciation

Equipment

Domain Name

Miscellaneous expenses

Use of Funding Proceeds
510000
8400
5000
51400
5000
17797.56
5940
0
0
48000
10
0

use of funding

Use of Funding Proceeds

Salaries (includes payroll taxes) $ 510,000

Repairs & maintenance $ 8,400

Local Advertising $ 5,000

Marketing $ 51,400

Accounting and legal $ 5,000

Rent $ 17,798

Internet & Telephone $ 5,940

Taxes (Real estate, etc.) $ –

Depreciation $ –

Equipment $ 48,000

Domain Name $ 10

Miscellaneous expenses $ –

Total Expenses for Yr 1 $ 651,548

Total will be calculated automatically.

use of funding

Use of Funding Proceeds

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Timeline
Use a Gantt Chart for key milestones or use the preferred model shown on the next slide.

Timeline of Milestones

JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
Idea
Primary Research
Feasibility Analysis
Relationships Secured
Business Plan
Prototype Install (Fall Gardens)
Funds Raised
Neighborhood Mkt.
Initial Contracts

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2007
2008
Beta Test
Milestone
Break-even
Milestone
July
Development
Milestone 1
December
2nd Product
Development
Milestone
Sept.
Sales Milestone
December
Value-Added Milestones Timeline (Sample)
Product 1
Partnered*
* Company retains co-dev./co-promotion rights
Product 1
First Sales
1st Financing
$660K
2nd Financing
$1Million

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Summary
What do you want your audience to remember about the company?
Unique and Sizeable Opportunity
Unique product or service
Competitive Advantage, Strengths
Marketing Approach, Customers, Sales Pipeline
Intellectual property
Management team
Other…

0
200
400
600
800
1000
1200
020406080100
Fixed Cost
Total Cost
Total Revenue
Use of Funding Proceeds
78%
1%
1%
1%
7%
0%
0%
0%
1%
8%
3%
0%
Salaries (includes payroll taxes)
Repairs & maintenance
Local Advertising
Marketing
Accounting and legal
Rent
Internet & Telephone
Taxes (Real estate, etc.)
Depreciation
Equipment
Domain Name
Miscellaneous expenses

Business Proposal Presentation

Course Objectives

 

· Create your business proposal

· Prepare and plan your Business Proposal Presentation

Initial Planning

 

Preparing to become an entrepreneur and running your own agency will take commitment and focus.  First-time business owners often don’t understand that good planning is critical to making things happen and getting things done. In business, planning is often overlooked. In looking more closely at becoming a Business Owner/Entrepreneur, think about these topics and how you would address them in running your own business.

Vision

 

•How do you want to be perceived by your customers?

•How do you want your staff to treat your customers?

•What should your office facility look like to your customers?

•What will distinguish the level of service you provide to your customers?

•How should your office systems and procedures function?

•How will you build the Business brand?

Market Research

 

Begin by researching the local market area where you are thinking of pursuing a business opportunity.  The research does not need to be included in full, in your proposal.  Include select facts and figures if they support specific sections of the proposal.  Clearly outline how this market research affects the Business.  Relevant data may include some of the following:

Population Size

· Median income

· Job market

· Population growth rates

· Unemployment rates

· Housing costs

· Primary languages(s)

· Median Age

· Major competitors

· Demographic make-up

· Local business environment

· Total households

Market Analysis

 

· Evaluate Internal/External Market Opportunities.

· What customer segments or needs present opportunities?

· Competitive Review – Who are the toughest competitors? Why?

· Do you provide better value than competitors? Which ones? Why? How?

· How accessible are you to customers?

· Are you staffed adequately? Are you considering adding staff?

· Is your office environment customer friendly?

· What skills and competencies do you and staff possess?

· What skills and competencies need further development?

· Who do you consider role models to help you improve your Business?

· What knowledge does your staff need to do a better job?

Goal Setting

 

· What marketplace trends will you address in your plan?

· How will you maximize the return on your marketing investment?

· What customer segments will you pursue for which products?

· Do you have plans to improve the marketing atmosphere of your office?

· What is your staffing goal?

· Do you have systems to ensure proper customer service, claim handing, and marketing?

· What skills/abilities of yours and your staff need to be developed to meet your goals?

· What are your personal financial goals?

· What drives your happiness?

· How to accomplish a work/life balance?

Budget

 

· Estimate the fixed and variable costs running in your Business to determine the amount to be invested

Required Documents

 

· Legal documents and licenses needed to run your business

Introduction

 

The entire Business Proposal Presentation session should take about 10-20 minutes.  Plan to spend 10-15 minutes presenting the business proposal and 3-5 minutes answering questions about it.  Separate presentation materials are not needed for the BPP.   The written business proposal will suffice.  The presentation should conform to the general structure presented below

1.   Local Market Context

2.   Proposed Business Structure

3.   Sales and Marketing Strategy

4.   Production Goals

5.   Compensation

Local Market Context (approximately 5 minutes)

 

1.   Local Market Context (approximately 5 minutes)

a.   What resources did you consult to complete your market research?

b.   What opportunities and threats emerged from your market research?

c.   How will this market research affect your agency?

Proposed Business Structure (approximately 5 minutes)

2.   Proposed Business Structure (approximately 5 minutes)

a. Capital Investment

i. How much capital do you anticipated investing in the first 6 to 24 months?

ii.   How much debt do you anticipate incurring over the first 24 months?

b. Team Development

i.    How do you plan to structure, hire, and develop your team?

ii.   What skill sets and experiences will you look for in team members?

c. Operating Budget

i.    What is your operating budget for the first five years (including start up)?

Sales and Marketing Strategy (approximately 5 minutes)

 

3.   Sales and Marketing Strategy (approximately 5 minutes)

a.   How do you plan to tailor your sales and marketing strategies to meet the needs of the market?

b.   What are some specific examples of sales and marketing tactics that you would employ?

c.   How would you market specific Products/Services?

Production Goals (approximately 5 minutes)

 

4.   Production Goals (approximately 5 minutes)

      a.   What are your production goals over the first two years?

      b.   How do your production goals relate to your local market research?

c.  your team development plan, and sales and marketing strategy?

      d.   How will you ensure your production goals stay on track?  What will you

            do if your production results are below goal set forth?

Compensation (approximately 5 minutes)

 

5.   Compensation (approximately 5 minutes)

      a.   When do you anticipate reaching your break-even point?

Proposal Evaluation

 

The business proposal presentation will be evaluated on the technical performance dimensions listed below as well as on non-technical dimensions, such as your communication and interpersonal skills.

 

 

Definition

Strategic Marketing

Demonstrates understanding of the industry, the competitive position, customer demographics, and buying habits of target customers.  Develops a marketing plan.

Goal Driven

Identifies goals for the business and team members, develops business plan to attain goals and monitors progress toward those goals.

Business Acumen

Demonstrates knowledge of business management and financial principles

Tactical Marketing

Executes the marketing activities needed to carry out the strategic plan.  Uses effective tools, channels, and tactics to deliver the message to target customers.

Business Proposal Presentation Leading Practices

Here are some tips for preparing for the BPP presentation:

· Wear business-appropriate attire

· Incorporate your personal and professional experiences into the presentation

· Be prepared but do not over rehearse the presentation

· Your business proposal contains the what of your business plan, your presentation should explain why

· Anticipate the types of questions Investors might ask

· Based on your geographical location, be prepared that the presentation may set up virtually and plan accordingly

Here are some tips for the BPP presentation:

· Don’t read directly off your notes

· Display confidence in your business plan

· At the end of each of the five sections above, pause to allow for questions

· Do not get flustered by questions – treat the question and answer period like a discussion

Resources:

· F.  Small Business Administration Website

· G.  Zipskinny.com, Realtor.com, and Census.gov