First Screen [PDF]

Citation preview

PK MIND JANE TIME



First Screen From “Preparing Effective Business Plans” by Bruce R. Barringer



Part 1: Strength of Business Idea For each item, circle the most appropriate answer and make note of the (-1), (0), or (+1) score. Low Potential (-1)



Moderate Potential (0)



High Potential (+1)



1.



Extent to which the idea: ● Takes advantage of an environmental trend ● Solves a problem ● Addresses an unfilled gap in the marketplace



Weak



Moderate



Strong



2.



Timeliness of entry to market



Not timely



Moderately timely



Very timely



3.



Extent to which the idea “adds value” for its buyer or end user



Low



Medium



High



4.



Extent to which the customer is satisfied by competing products that are already available



Very satisfied



Moderately satisfied



Not very satisfied or ambivalent



5.



Degree to which the idea requires customers to change their basic practices or behaviors



Substantial changes required



Moderate changes required



Small to no changes required



1. Having a sandwich shop in school helps in solving problems of student in school, moreover, it filled the gap in the marketplace in the school cafeteria. Student have a problems in having same kind of food or taste over and over everyday. We offer a sandwich shop that student can customise their sandwich themselves, give new taste and kind of food; Western, free customise and enjoy favour flavour.



2. It’s very timely to open sandwich shop in the school right now. Now MUIDS is having a potential of having more student that interested in this school and wanted to applied in the future. We can see that on the fourth generation, they had a total of nine classes while on the sixth generation they have ten classes. It shows that the school can afford more number of student each year. So, it’s a very good time to start a food shop right now in this school especially a sandwich shop that we never have it in the cafeteria. 3. It adds value since the product is an improved version of the existing similar products in the market. It helps the customers to be able to customize their own sandwich in the way that they want. Thus, if the customers want it to be more healthy, it can further assist them with their diet and muscle building or etc. more than others. 4. Student in this school didn’t satisfied with the sandwich that other shops offer. The main reason is that the sandwich that they offer didn’t have a demand in the market. Our shop can solve this problems by offering a sandwich self customisation, so, they can have things that they demand as they want. 5. The customer didn’t have to change their behavior at all in using our product. Moreover we offer more ways to behave for the end user. Other kind of food needs to be finish in the cafeteria but our product can be consumed at any places and it’s easy to clean up.



Part 2: Industry-Related Issues Low Potential (-1)



Moderate Potential (0)



High Potential (+1)



1.



Number of competitors



Many



Few



None



2.



Stage of industry life cycle



Maturity phase or decline phase



Growth phase



Emergence phase



3.



Growth rate of industry



Little or no growth



Moderate growth



Strong growth



4.



Importance of industry’s products and/or services to customers



“Ambivalent”



“Would like to have”



“Must have”



5.



Industry operating margins



Low



Moderate



High



2



Explanation: 1. There are few existing competitors in the market already, the existing stores that offer sandwich. However, they are focusing on selling other things, such as the big meals like steak, rice and others, more than the sandwich, which make them sell it in only a small amount with no variety of bread and fillings like how a solely-sandwich shop would do. Therefore, the company can still compete with those competitors in terms of selling the sandwich, major product. 2. Even though this kind of industry has always been existing in the market for quite a long time during the past history, it is still in its growth phase since there is still potential to grow due to many factors newly emerging at the present time: the trend of concerning about health, eating clean food, or even grabbing an easy meal for avoiding the chaos during the rush hour of the competitive society. 3. As prior mentioned in 2., the trends, social forces, that people tend to prioritize their health and the convenience in their daily life can help boosting the growth of the industry. Therefore, the entrepreneur can even seek for new features/selling points to the regular product to make the growth to be more rapid by drawing more attention of the prospects as well since they have already had some kind of interest towards it on the back of their mind due to the trend. 4. It does not reach the “must have” level because there are still more alternatives for the same purposes in the market. For example, the role of being an easy meal; there are many fast-food restaurants out there which consume little time similarly to what a sandwich could do. Thus, it is just an option that the customers will choose if they lean more towards the healthy choice. 5. The margin is high because the tools and ingredients required to open up a business are not a lot. Also, the ingredients, especially the vegetables and bread, if can find a good source, it will not be costly but will possess the quality which adds more value to the product further; making it more profitable.



Part 3: Target Market and Customer-Related Issues Low Potential (-1) Moderate Potential (0)



High Potential (+1)



1.



2.



3.



Identification of target market for the proposed new venture Ability to create “barriers to entry” for potential competitors Purchasing power of customers



Difficult to identify



May be able to identify



Identified



Unable to create



May or may not be able to create



Can create



Low



Moderate



High



3



4.



Ease of making customers aware of the new product or service



Low



Moderate



High



5.



Growth potential of target market



Low



Moderate



High



Explanation: 1. The target market is kind of easy to identified since the store will be opened in the school cafeteria, so the size of it will not be too big or too small due to the number of students, teachers and staffs who have stay inside the school. If wanting to, the company can narrow it down to smaller group according to the lifestyle of target prospects as well; healthy, nourishing, energized or more. 2. There are only small areas that can be improved or added some features onto in order to differentiate the product from the existing ones but still preserve the key purpose and plan. For example, the ingredients that will be put inside the sandwich can be adjusted, but not too extreme that they will make the customers find difficulties in eating it. 3. For students, since it is an international school which has a high cost of different fees, it indicates that the condition of them is probably somewhere between middle-to-high and high class, making them be able to afford high range of prices. But for the staffs, it might not be the same as they still have to use their salary received monthly. Therefore, the average purchasing power might be in the moderate level. 4. It is not difficult to introduce the product to the target market because of the same reason that the store is directly located within the school cafeteria where the prospects all have to be associated with. Also, there are not many stores in that area, which makes a newly opened one can be striking to everyone. 5. The growth might be based on the growth of the industry as well; how it can draw attention from the target market and persuade them to choose the product instead of other alternatives. However, since it’s in school, there are still boundaries of the space for recruited students and staffs into the school which might not be vast.



Part 4: Founder- (or Founders-) Related Issues Low Potential (-1)



Moderate Potential (0)



High Potential (+1)



1.



Moderate experience



Experienced



Founder or founders experience in the industry



No experience



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2.



Founder or founders No skills Moderate skills Skilled skills as they relate to the proposed new venture’s product or service 3. Extent of the founder None Moderate Extensive or founders professional and social networks in the relevant industry 4. Extent to which the Weak Moderate Strong proposed new venture meets the founder or founders personal goals and aspirations 5. Likelihood that a Unlikely Moderately likely Very likely team can be put together to launch and grow the new venture Explanation : 1. As we want to open our shop in the international school, we have a benefit of being a student in the school already. Knowing our target group and customer needs are what we familiar with. However, food industry is very new for us. We don’t have any experience in this industry before. 2. To open a sandwich shop we need various of skills and our member did have those skills. For accounting skill, calculate and record our transaction, Jane and PK have an experience in recording and doing the worksheet before as they learned in an accounting class. ​To prepare for the restaurant’s opening, we may need cooking skill as well as cashier skill, as we need to make garnishes for sandwiches and ​collecting payments from guests and giving back change.​ Our member have the skills as we did a student market for several times when we were high school student. 3. For the networks, currently not one of our founders has a connection, either personally or socially, in food industry. 4. The level of extension that we would meet our goals is strong. We, as a founders, want to provide a food that would serve a healthy diets for kids and adults, which is easy to eat and can be adjusted by customer’s test. Our goal is not only improve food choices for teenagers ,but also to give customers nwe complete view of a healthy and clean food. 5. It is very likely that our team can be put together to launch a new business. Our team members see the trend of healthy food and as a student we see a problem of food choices in the school cafe. Most of the time students don’t have any choices but to eat unhealthy food. Those food don’t only affect them in long 5



term but also causes fatigue and reduce learning ability in students if they keep eating them daily. Because of this, we choose every ingredients carefully in order to make sure that it would give them the best benefit while taste delicious as well. These are the crucial factors that would make our company success in the future.



Part 5: Financial Issues Low Potential (-1)



Moderate Potential (0)



High Potential (+1)



1.



Initial capital investment



High



Moderate



Low



2.



Number of revenue drivers (ways in which the company makes money) Time to break even



One



Two to three



More than three



More than two years



One to two years



Less than one year



Financial performance of similar businesses Ability to fund initial product (or service) development and/or initial startup expenses from personal funds or via bootstrapping



Weak



Modest



Strong



Low



Moderate



High



3. 4.



5.



Explanation 1. The investment for our shop is around ten thousands which is considered as a very small amount as it can be raised by just a few of high schoolers’ own saving. 2. The only way to deliver our product is through the shop, because that way we can maximize the efficiency by using less machine to reduce the cost of production. 3. With the price we set, 50 baht each, the revenue will reach the break even point within the serving of one month, or when 350 servings from the total of 400 are sold in the first month, or when 274 out of 400 units (68.5%) are sold for the other month. 4. Our business has low initial cost throughout the procedure as we transform the product before selling as another level of commodity, however, the cost of our 6



raw material of food is in an average that everyone can purchase at supermarket. 5. Since our shop has a low requirement of tools and materials to produce the final product, fund can be easily raised as it costs is low for startups as those who have an average income can participate. Monthly Financial Projection Revenue: The revenue of 20000 is estimated from the number of breads that we use as a base ingredient, and sell each order for 50 Baht. By doing so, the total number of bread will be reliable when predicted. **However, this calculation excludes promotions and leftovers which may affect the fall and rise of the revenue. Expense: There are two table of expenses, the first one is for the first month that included initial cost for permanent stuffs, which are two ovens,a fridge, and a knife, while the second is for the following months that one-time purchase stuffs are all excluded. Rate of return: As calculated by the dividing profit with expense as a percentage, the rate of return for the initial month is around 14.5%, and for the other months is 46%. The difference comes from only excluding the one-time purchase materials. The business idea is financially feasible as the project will be profitable even from the first month for over 14.5% as a rate of return.



Overall Potential 7



Each part has five items. Scores will range from -5 to +5 for each part. The score is a guide—there is no established rule-of-thumb for the numerical score that equates to high potential, moderate potential, or low potential for each part. The ranking is a judgment call. Score (-5 to +1)



Part 1: Strength of Business Idea



+4



Part 2: Industry-Related Issues



+2



Part 3: Target Market and Customer-Related Issues



+2



Part 4: Founder- (or Founders-) Related Issues



+1



Part 5: Financial Issues



+2



Overall Assessment



+11



Overall Potential of the Business Idea Based on Each Part High potential Moderate potential Low potential



High potential Moderate potential Low potential



High potential Moderate potential Low potential



High potential Moderate potential Low potential



High potential Moderate potential Low potential



Suggestions for Improving the Potential Everything is fine



Improving product or service function to make a product become must have



focusing on the future competitor



We can’t suggest anything other than having more experience.



Finding more ways for the business to make money.



High potential Moderate potential Low potential



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Summary​—briefly summarize your justification for your overall assessment: and After the analysis of all parts of business idea, it turns out that this business idea can be effective and feasible. Since the overall assessment score is at +11 on the first screen analysis, it shows a very good potential of working this idea out. Most parts of the business plan are also at the high potential rate that can help the entrepreneur to gain profit further. The only concern that we might have to take in to the account is the future competitors. The competitors can show up at anytime in this small market, so we want to insist in opening this business up, we have to be more careful and pay more attention on the minor details which will contribute to the strength of the business itself. We have to make sure that what is to be improved in our team and product will assure us that the business will be able to run enduringly and there will be the least gap for the competitors to enter or fit in the market.



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