Start adding to your papers from last week… some will go in order, but you will notice some things get added at different times.
Introduction
Market environment :Summarize specifically where you will advertise. Use the media kits to show these are the correct audiences.
Television – what programs/channels does your target customer watch?
Radio – what type of music does your target customer listen to?
Magazines and newspapers – what does your target customer read?
Out-of-home – Where will you place your ads?
Digital – don’t just say “Facebook” or “Instagram.” What targeting factors will you use to place your ads?
Which specific retail outlets will you use to sell your product?
Check their vendor requirements page and summarize what you will need to do in order to get your product on their shelf.
Confirm that this is a product or service people will be willing to buy in that particular way.
Economic environment
Make sure these numbers align with what you learned in technology (below).Startup costs – estimate the main assets you will need to start your business
Cash – 1 year’s expenses
Inventory
Property and equipment
Estimate your first year’s profit and loss
Sales
Cost of goods sold (make sure it ties to inventory)
Gross profit
Selling expenses (check against your one year’s expenses)
General expenses (check against your one year’s expenses)
Check these numbers against common industry standards, and show your work.
Create a 5-year plan for
Startup
Operating
Capital
Projects
Social environment
Legal and regulatory environment :Now that you know more about finance and your startup costs, research what it will take to get that much money.
Will you do debt or equity?
What are the terms you will need to meet?
Technological environment
If you are a product, from where will you source 3 key ingredients or inputs? Will you go directly to the factory/farm or work with a distributor? Find the actual
suppliers and estimate your cost per unit.
If you are a service, how will you manage the unique challenges (p. 239)? Estimate your costs to create this structure of management.