Post on 29-Nov-2014
description
Key issues :Further Research
• Balance sheets
• Profit and loss
• Cash Flow Forecasting
• Budgeting and Planning
• Record Keeping
• Credit Control
Please contact me direct for more information; paulj@sinc.co.uk
Business Model Build
• Who is the customer.
• What does the customer value.
• How do we make money in this business
• What is the underlying economic logic that explains how we deliver value to customers at an appropriate cost
Peter Drucker 1909-2005
Finance
• How much money will you need to start the
business
• What will it cost to make and sell your ………?.
• What will everything else cost
• What is the profit or surplus on each sale
• What will you charge and why.
Brandalism Cafe
Start with the End in mind
•Hypothesis and Validation
•Make lists
•Research and Test
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START UP COSTS • SET UP COSTS • RUNNING COSTS OR FIXED COSTS
Brandalism Cafe
• Price
• Variable Costs
• Fixed Costs
• Surplus/profit
Variable cost
• PRICE £2.50
• COFFEE £ • MILK £ • SUGAR £ • TOTAL £0.50 • Gross Profit £ 2.00 (Price less production cost = gross profit) • £2/£2.50 % = 80%...80p in every £1
• Running costs for a year £12000
• For a month £1000
• Total sales income needed to pay overheads
• £1000/80% = £1250
• £1250 /£2.50 = 50O CUPS
• 500/24 Working days= 21 cups a day
Sales plan is 21 cups a day
Plan for a Surplus
IF Fixed Costs £12000 Surplus £10000 Total now needed £22000 Divide by 80% Sales £27500 Divide by £2.50 11000 cups pa. 916 pm 38pday (24 days in month) Sales plan.. sell 38 a day
The only way to know if this stays the same is to constantly update the costs. Regular reporting?
Finance
• How much money will you need to start the
business - £20k
• What will it cost to make and sell your £0.50p
• What will everything else cost. £1000 pm
• What is the profit or surplus on each sale £2.00
• What will you charge and why. £2.50.
(Competitive Strategy from research..)
Application Form
Award Criteria • students, staff or recent graduates (graduated within 1 year) • over the age of 16 • living in the UK for the duration of the project • who are individuals or part of an informal group
Award Criteria Projects must: • benefit the public or a community in the UK • demonstrate a connection to the Higher Education Sector • need a HE Social Entrepreneurship Award to ensure their success • offer a learning opportunity for the applicant(s) • be a new initiative – not a continuation of ongoing operations • not be part of the applicant’s paid employment • be an entrepreneurial solution to a social problem • instigate social impact or social change • not be for activities outside the law, against public policy or anything that fosters ethnic, religious or commercial disharmony
Your Vision; Please describe your business/ project
when it’s successful.
100 words Max.
Suggestions:
• Description of the finished product or service
• How will customers discover the product or service
• Who is using it
• When and how will revenue and profit be generated
• How will it be delivered and who is involved
What is/ are the problem/problems you are solving?
100 words Max.
Suggestions;
• What job are people trying to get done
• How big is the problem
• Why do people care about the problem,
• What's the pain suffered/ difficulty experienced
• What have you done to understand the problem
What are the current solutions?
50 Words Max.
Suggestions:
• What is the current solution
• What are the major failings
• Who delivers the solution
• How many deliver solutions
• Is the solution part of something else- over
developed/expensive
What is your solution?
100 Words Max.
Suggestions:
• How does your solution solve the problem
• How easy is it to use will it change behaviour
• Do you offer the whole solution
• What are the unique features and benefits
• Why hasn’t anyone found a solution before
Potential customers & market? What is the potential
demand.
50 Words Max.
Suggestions:
• Whose a typical customer and who will buy it first.
• How big is the market now and likely in 5 years
• How do they buy the current solution, will that be the
same for you
• Is there a lot of competition in the market, who
dominates the market
• Is the market growing, is it a global opportunity
What costs? What pricing? What finance? Any
evidence available
50 Words Max.
Suggestions:
• What will it cost to make and sell. What is the profit on
each sale
• What will you charge and why.
• How many will you sell and when will you start selling
• How much money will you need to start the business
• What will you use the award for
How far have you come in terms of developing the
proposed venture?
50 Words Max.
Suggestions:
• Concept / prototype/ Does it work
• What research has been done or is needed to complete
the project. cost?
• Who have you asked for help; technical/customers/
buyers/sellers
• Is this the complete offering or first feature of a larger
offering
• What other funding have you explored
What are the challenges/barriers to success? Identify
key milestones
50 Words Max.
Suggestions;
• Money needed to deliver the first sale
• Market knowledge
• Personal skills
• Time
• A working product or service
Please outline personal learning and development that
you hope to gain from this project
50 Words Max.
Suggestions
• How to skills
• Skills needed as an entrepreneur
• Personal strengths and weaknesses
• Team building
• Creative problem solving
http://www.sussex.ac.uk/careers/newsandevents/startupsussex
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