KnightSeats 1

KnightSeatsGroup 5 Business Plan

Peyton BalazsMontanez FowlerAnastacia Kirby

Amber Thompson

KnightSeats 2

Table of Contents

Business Description………………………………………………………………………………3

Macroeconomic Climate………………………………………………………………………...3-6

Unemployment…………………………………………………………………………….4

Consumer Income…………………………………………………………………………5

GDP……………………………………………………………………………….............6

Competitive Analysis…………………………………………………………………………...6-8

Mission Statement………………………………………………………………………………...8

Job Description………………………………………………………………………………...9-12

Marketing Strategy…………………………………………………………………………...12-13

Four P’s Of Marketing………………………………………………………………………..13-15

Product Demand………………………………………………………………………………....16

Form Of Organization………………………………………………………………………..16-17

Scenario Analysis…………………………………………………………………………….18-20

Financial Statements…………………………………………………………………………21-23

Loan……………………………………………………………………………….......................24

Costs……………………………………………………………………………….................24-26

Fixed………………………………………………………………………………..........24

Variable………………………………………………………………………………......25

Mixed……………………………………………………………………………….........25

Charity………………………………………………………………………………………..25-26

Opportunity Cost……………………………………………………………………………..26-27

Executive Summary…………………………………………………………………………..27-28

Exit Strategy……………………………………………………………………………….....28-29

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Business Description:

Seats and bleachers can be hard, annoying, or just plain uncomfortable. Marian

University is made up of 45% athletes and as the athletics continue to grow, so does our fan base.

With very few options on and around campus, a necessity arose and we met it. KnightSeats will

offer back support, comfortability, convenience, and the opportunity to support a growing

community. Our custom designed stadium seats will make games more fun and enjoyable by

alleviating many annoyances caused by the hard bleacher style seating available at Marian

athletic events. The seats will have one basic design with a Marian University Logo on the

inside back area. Marian University Stadium Seats also offers the option of renting. With the

rental option, fans are given the opportunity to rent the seat for one game ($15 per game) with a

system of checking out and returning the seat at the completion of the game. The seats will be

numbered and checked out with the renter’s name and phone number which allow us to track a

seat down to a specific person if the seat isn’t returned. This option allows for the customer to

try the seat before they reach into their pockets and purchase a KnightSeat. In addition to the

trial of the product, this option also allows the occasional fan to see one game in comfort without

making a full purchase. This will give parents, grandparents, and fans a sense of pride for their

loved ones in their new KnightSeat.

Macroeconomic Climate:

Since 2007 the unemployment rate has increased rapidly, it has more than doubled. For

example, the employment rate was 4.6% in 2007 and rose to 9.6% in 2010. More likely than not,

the employment rate has increased so rapidly because of the increase in wages. Because

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minimum wage has gone up employers can no longer afford to keep so many employees’,

resulting in them having to lay people off. In 2007 minimum wage was $5.15 and because it is

no longer tolerable for people to live on that amount, so minimum wage has now increased to

$7.25. However, the unemployment rate has fallen to 7.3% since 2013 and expectantly will

continue to decrease in 2014. This positively affects our product because now that there are more

people beginning to receive jobs, they will now have the money to spend on luxury and amenity

items, being our product.

www.MilesFrank.com

Although unemployment has decreased, the average consumer income from 2007 to 2013

has decreased. In 2013 the average consumer income dropped by a little over $5,000. That

number is compelling considering that minimum wage went up by a little over $2 since 2007.

This is due to people getting laid off, and having to find lower paying jobs because of the

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recession. Average consumer income affects our business because it assists us in knowing how

much our target market makes, as far as yearly income. Although the decrease in overall

consumer income seems to negatively affect our product, we plan to sell our product at an

affordable price so that our consumer can afford our product. It is our overall goal to make our

product affordable for our consumer so that they can purchase our product to better support

Marian.

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www.Slate.com

Although the GDP hasn’t reached its potential GDP, the real GDP has significantly

increased since 2010. This positively affects the selling of our bleacher seats because if the

economy is thriving it helps our business. The real GDP is projected to continue to increase

throughout 2014; this is also positive for our business. GDP measures the quality of one’s

economy and since the economy is thriving because the real GDP is increasing would infer that

people have more money. Furthermore if people have more income they have the money to

spend on leisure products, such as our KnightSeats. As the real GDP continues to increase it will

hopefully reach the potential GDP; increasing the productivity of our business. Overall as long as

the GDP continues to increase or remain steady it is positive for our business.

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http://bilbo.economicoutlook.net/

Competitive Analysis:

When starting a business it is very common you are not the only business selling a

product, stadium seats in our case, but after doing research we found that there are not any stores

that sell the seat we are offering. We took the time to find places locally that sell stadium seats

and we only found one Dick’s Sporting Goods. Dick’s Sporting Goods has two stores here in

Indianapolis; one is located about 16 miles from the school and is about a 22-minute drive. The

other store is 10.3 miles away from the school, which is a 14-minute drive. The chair that Dick’s

offers while comfortable and even durable are made up with metal bars and no straps which

make the chair more difficult to carry. During the summer months the metal bars get hot and can

potentially burn you or whoever might be using the chair. The only thing about Dick’s is that

they do sell stadium seats with NFL (National Football

League) teams on them but none that depict local colleges. In

saying that, the stadium seat at Dick’s costs $24.99 after

finding a place that would be able to print Marian University on

the seat you will be paying well over the $35 we are asking for

our seats. The reason for this is because there is always an

artwork set up fee and most places will not only print on only one chair you would have to buy

and print on multiple chairs. Here is a picture of the seat Dick’s offers below:

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The bookstore here on campus also sells a stadium seat but theirs has no back support to

it. These seats do have Marian University on them but no one can see it because you’re sitting on

it the whole time during sporting events. The bookstore does make these seats accessible at and

during games for those who like to purchase them. The seat sold in the bookstore has a handle

making it easier to carry. The only downfall of the seat is that the durability and quality is not as

high as the seat we are offering. Pricing for the seat the bookstore sells is $11.95, but as stated

before it does not have back support, and also there is no option to only rent these seats they are

purchase only. For only $3.05 more if you do not want to purchase one of our seats you have the

option to rent one. Here is a picture of what the bookstore offers below:

Other stores you can purchase stadium seats are all

online and they do not offer the option to customize a stadium seat for any reason. And all the

seat you buy online you would still have to go and pay to have Marian University on the seat

which as stated before will be more than what we are offering our seats for. In purchasing

anything online you will have to wait for it, and if it is damaged or lost you will have to send the

seat back and either get a refund or wait for another chair. With our business we will be on

quality control making sure that the seat you get is suitable for the buyer to purchase. And if

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something is wrong with the seat we will replace the stadium seat as soon as you bring it back to

us or refund your money on spot no delay and no complications.

Mission Statement:

Our mission for KnightSeats is to satisfy Marian sports supporters and other sports

fanatics at Marian University hosted events with a product, KnightSeats, which will make their

time watching sporting events enjoyable with the use of our KnightSeat. Our team is dedicated to

making our encounters with our customers an experience that will be both social and friendly as

well as relatable with the background knowledge that each of us posses through our athletic

participation as athletes here at Marian University.

Job Description:

Our company sells a stadium seat, which are designed to fit Marian University’s seating

arrangements at all sporting events. Our mission for KnightSeats is to satisfy Marian sports

supporters and other sports fanatics at Marian University events with a product, KnightSeats,

which will make their time watching sporting events enjoyable with the use of our KnightSeat.

Our team is dedicated to making our encounters with our customers an experience that will be

both, social and friendly as well as relatable with the background knowledge that each of us

possess through our athletic participation as athletes here at Marian University.

Sales representatives for KnightSeats will be the original group which includes Amber

Thompson, Anastacia Kirby, Peyton Balazs, and Montanez Fowler. For each home sporting

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event only two people will be working at a time and they will be paid according to the number of

units they sell, and will be paid once we finish selling our entire inventory of stadium seats. Also,

the two working the event will be in charge of setting up the table for selling our seats and

monitoring the rental and return of seats. One person will be standing at the table throughout the

sporting event while the other person walks through tailgating areas before the game. We do not

find it necessary to hire any extra employees because we are all committed to contributing our

time to the business.

Amber is the head of the accounting and finances department for our business. She keeps

the books balanced and makes sure we are staying on track for buying and selling seats. She is

also a sales representative and will work at the events at Marian University to promote and

advertise KnightSeats.

Anastacia is the head of the communications department. She is the person who keeps in

contact with the company that we buy our seats from and the company that does the screen-

printing for our chairs. She is also a sales representative because she too will help sell our

product at various Marian University athletics.

Peyton is the head of the marketing department, which involves doing advertising and

watching the economy and getting our product to the public. He also is a salesmen, he will be

selling our product at games or to groups among the Marian community, such as the M-Club,

who may show interest in our product.

Montanez is the head of the human resources department and makes sure that our

customers are pleased with our product and that our employees are using proper methods for

doing business. He will also be a salesman at sporting events.

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Operation hours will vary depending on the sporting event and if the event starts on time or if

it happens to be cancelled or postponed. We will be located during home events in the places

highlighted on the map below:

1

2

34

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As shown on the graph above, each number corresponds to a location in which we will have

access to sell at all athletic events here on campus.

1. Is the P.E center where Men and Women’s basketball games are played as well as

Women’s volleyball. We will have a table set up inside the P.E Center before you enter

the court area.

2. Is the Baseball Field and the Softball Field we will have two different set up spots for

these games but since they a relevantly close they are marked as the same. (These events

are played on separate times or day.)

3. Are the entrances to both the tennis matches and the main entrance to St. Vincent Health

Field, which is the football and soccer field. (These two events are played on different

days.)

4. Is the Major Taylor Velodrome or the Indy Cycloplex and this is where Marian’s cycling

team competes. We will be located inside the gate between the entrance and the stands,

an easy access point for us to reach our target market as they walk by.

Marketing Strategy:

For our business advertisement we have taken multiple tactics to promote our product.

One of the strategies that we have taken is we created a survey. Our survey consisted of

questions asking our possible target market if they would consider buying our product, do they

attend sporting events, are they comfortable at sporting events on the hard bleachers, etc. The

purpose of the survey is to get feedback, from hopefully, a future customer. Another step that we

are going to take is to create business cards. As fans are attending sporting events we plan to

KnightSeats 13

hand out our business cards to them in hopes that it catches their attention, furthermore resulting

in them wanting to purchase one of our chairs. Aside from giving them out at sporting events, we

plan to walk around campus to hand out our business cards to people here on campus. In addition

to our survey and business cards, we plan to make a flyer. The purpose of the flyer is to give us

extra advertisement by hanging them up around campus and possibly local businesses in hopes

of catching the possible consumers’ attention.

Four P’s Of Marketing:

Product:

As we have previously discussed in this business plan, KnightSeats is a business that will

sell an exclusive Marian University stadium seat. The high quality black seat that we are selling

(pictured below) will offer a variety of luxury features. These features include a trademarked

Marian University logo on the back of the seat, a convenient pocket to store small items,

adjustable side straps for personalized comfort, and sturdy handles for carrying to and from your

vehicle. A KnightSeat sits comfortably on bleachers of all sizes and in addition to the features

previously mentioned, the most desirable feature is the back support that our seat provides to all

customers.

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Pricing:

A KnightSeat is a luxury item for families and fans of Marian University athletics. A

KnightSeat will come with a two purchasing options. The first option offered to customers is a

straight purchase for $35. The second option is a one game rental for a $15 per game rental fee.

KnightSeats has decided these prices with many factors in mind. As a business we competitively

priced our product with other seating options that are available for potential customers. The

competitive analysis compares our stadium seat to those from Dick’s Sporting Goods and the

eFollet Bookstore that is on the Marian University campus. The cost of a KnightSeat is higher

than a basic, but similar stadium seat from Dick’s Sporting Goods. A KnightSeat will also be

more costly than the small bottom cushion from eFollet Bookstore. What makes a KnightSeat

$35 is the Marian University heat transferred logo and the additional luxury features. The rental

price of a KnightSeat is a fair, one game use price. Rental items typically come at a lower price

than a retail-purchasing price. A one game rental will cost $15, which is less than half of a

straightforward purchase and also allows the customer to try the product before they decide to

make the purchase.

Place:

KnightSeats is a business that targets families and fans of the Marian University athletic

teams. KnightSeats will have a long conference table; complete with a large tablecloth sign, set

up outside the gates of the St. Vincent Health Field for track, soccer and football games. During

the volleyball and basketball games KnightSeats will set up inside the Marian University

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Physical Education Center. Lastly, during the very few cycling events at the Major Taylor

Velodrome, there will be a KnightSeats table set up upon entering the seating area. These

locations allow the KnightSeats business to display the seats to all fans walking into the sporting

events at Marian University. In addition to our stationary set up at the entrance of games, we

have four enthusiastic employees that will alternate walking through tailgating areas to offer our

product to those eager customers wanting a KnightSeat before everyone else.

Promotion:

KnightSeats will be conducting one to one sales for the most part. However, in order to

get the name and our product out for people to see, we have created our own professionally

designed fliers and business cards. These two items will direct attention to our business and

more specifically to our specialty stadium seat. Our fliers and business cards have contact

information for customers to use when they want to purchase a seat at any time other than game

time. KnightSeats is a customer friendly business that is geared towards customer satisfaction

and we feel that our fliers and business cards will add ease and convenience to a customers

buying experience. The KnightSeats flier and business card are pictured below.

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Product Demand:

The product that our group has chosen is a stadium seat. There is a high demand for our

product here on campus due to all of the sporting events as well as other events held here on

campus. Often time’s fans complain about back pain or being uncomfortable at sporting events

as a result of the hard bleachers or no back support, and with our product it will solve both.

There are no other seats like ours sold here on campus; this is another reason why our product is

in high demand for those who attend sporting events like basketball, football, baseball, softball,

etc. Our seat will be in higher demand than other products because they will be sold at an

affordable price. We plan to sell our product at a price that is reasonable for anyone who would

like to purchase a stadium seat. Our group is offering a rental option to aid in the sales of the

seats. Once you rent a seat and experience the comfortability and support offered by our

product, we expect demand to be on the rise. Lastly, our product is in high demand because our

seats are customizable. With our product one would be able to add labels such as names,

numbers, and teams; whatever they would prefer to make the seat more personable. Getting our

product and brand out to the consumers will create an increasing demand.

Form Of Organization:

In order for our business to start up and actually be a business we need to win the

competition. In order to do this, we have prepared a Gantt chart in order to show the most crucial

steps to us starting our business come next fall. As I said previously, we must first and foremost

win the competition, which will be done by May 2, 2014, the day of the finals for the business

competition. Secondly, we would want to finalize our loan that we would receive from our

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business partner who will help us to start the business. We hope to accomplish this step one week

after we win the competition on May 9th. Over the summer, since none of our group members

will be here on campus, we will not be doing any further organization for our business until the

month in which we plan to return for the 2014 fall semester.

August 8th we plan to place our first bulk order of KnightSeats to our provider, Branders.

This will give us plenty of time to receive our order by August 13th, plenty of time before the first

day of school. Receiving the order before school starts is important since it will allow us to

complete our inventory check of our product to make sure each individual unit is to the quality

and standard that we wish to provide our consumers. Order confirmation will be complete the

day after we receive our order. Next, we plan to begin our marketing projects by posting our

KnightSeats fliers around campus on billboards, hallways of the dorms, the library and the

student center on August 15th. Also, in each of the buildings, we will place our business cards for

individuals to grab and take with them. Both our fliers and business cards provide contact

information including our very own company email address and specified details of our product

accompanied by a picture of what our product looks like. Finally, we will have our first business

assignment ready to sell our seats by the first home sporting event held at Marian University, a

Women’s soccer game held at St. Vincent Health Field. Below is a visual of our Gantt chart to

clarify what was just stated above.

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Scenario Analysis:

Our business has many different possibilities to be successful. In our scenario analysis

chart shown below, we have 8 different price ranges that complement our three order sizes. Also

included in each of the scenario’s is our breakeven point is units sold of each of the order sizes.

For instance, at our order size of 50 units sold at our middle price of $30, our breakeven point

would be to sell 37 units of the 50 total units to hit $0.00. Sales from the remaining 13 units sold

at $30 each would give us our profit of $392.43. The same explanation goes for each of the other

scenarios that will be mentioned in the next paragraph below.

Our first scenario includes an order size of 25 units at our low price of $25 sold to our

consumers. As you can see, this is obviously not the scenario that we will be conducting as it is

the only scenario that puts our business at a loss of net profit. However, all the others provide

with a net profit in each of the analyses shown. Low price ($25) sold at our middle or high price

of either ($30 or $35) will have a profit of $93.97 and $218.97 respectively. Looking at our

scenarios for our middle order of 50 units at each of the three prices ($25, $30, $35) we show a

net profit after all units are sold at $142.43, $392.43 and $642.43 respectively. For our last three

scenarios, we will take a look at our largest order size of 115 units. Both the low and middle

price scenarios show significant profit of $877.72 if we were to sell at $25 and a profit of

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$1452.72 sold at $30 each. Now lets take a closer look at the scenario at which we will be

deciding to go with for our business.

Go big or go home, as they like to call it, our group is deciding to purchase our large bulk

order of 115 units and sell them at our high price of $35 to accumulate our largest net profit

potential. You can see this scenario in the large chart above by the highlighted sections. By

selling all 115 units at $35, we will make a net profit of $2027.72. We feel that this is the best

possible scenario for our business to maximize our profits. As you can see in this refined

scenario shown above, we have added the price per unit that it would cost us per seat ($17.37) as

well as our profit per unit ($17.63). How we figured these numbers is from an equated total of

our fixed costs multiplied by the total units at the high price of $35 sold to our consumer. With

the price break we are receiving for our bulk order of 115 units, we pay $15.50 per seat.

However, with all our fixed costs calculated in, which included advertisement costs for our

product, shipping and the charges for the screen printing per seat, it brings our total cost per seat

to the $17.37. The different from our selling price of $35 per KnightSeat subtracting the cost per

unit of $17.37 gives us our profit per unit sold of $17.63.

Finally, for our total breakeven for the scenario that will we carry out, the breakeven

analysis chart shown below shows the total costs line in red with our profit potential shown in

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blue. The intersection of these two lines shows the breakeven point of 58 units for our order of

115 total units. Across the x-axis shows the units amount reaching the 115 total units. Displayed

on the y-axis is the dollar amount for each unit sold as the blue line rises from left to right.

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Financial Statements:

Income Statement:

The income statement for KnightSeats is fairly simple. Starting from the top, Net Sales =

($35x90 seats)+($15x25 seats rented twice) and Rental Revenue = ($15x25 seats) rented

twice. Our expenses are exactly as they are listed. The merchandise expense includes

the seats, set up fees for printing, and shipping fees. Marketing expenses will include the

printing of fliers and business cards as needed. The donation expense will come at the

completion of the semester and will be a $500 donation to a charity of our choice.

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Balance Sheet:

The balance sheet cash total comes from the statement of cash flows as net sales, loan,

and capital stock combined. The loan amount is how much we are requesting in order to start the

business in August 2014. Capital stock is a combination of $40 that comes from the team

members, $10 from each person. The retained earnings comes from the income statement as the

amount that of profit that we will create.

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Statement Of Cash Flows:

The statement of cash flows is very simple. We get the cash from sales from the income

statement. The cash from sales less all of the expenses leaves us with our profit. The loan

amount and our capital stock brings us to the cash balance at the end of the year.

Retained Earnings:

This number comes from our balance sheet as the amount of profit we will have earned at the end of the year.

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Loan:

When starting a business it is essential to have start-up funds in order to get the business

going. Thus, KnightSeats is requesting a loan in the amount of $2,000. This money would go

towards the first order of 115 seats which cost $1,782.50, estimated shipping for the seats of

$100, set up fees for printing the seats of $65, and marketing expenses for our business cards and

fliers of $50 for a grand total of $1,997.50. A loan of $2,000 in addition to the $10 from each

business partner would allow KnightSeats to make an initial order as well as have some reserve

money in case of emergency. As with any loan there will be interest on the loan that we receive.

Noted in our financial statements we estimate

about $40 in interest on our $2,000 loan. This interest

amount is 2% of the $2,000 that we are requesting to

get KnightSeats up and running. KnightSeats

plans to repay the loan completely with the first $2,040 that we make in revenue through the

rental option and sales of our stadium seats. To possibly better understand where the loan money

will be spent, we have included a small chart to break down the requested funding.

Costs:

Fixed Costs:

Our businesses fixed costs are set from each of our 3 bulk order shipment possibilities.

We can either order in bulk, 25 at $603.50, 50 for $995, or 115 seats at $1867.50. Per unit cost

for each seat respectively is $20, $18 and $15.50 if we were to sell all seats in each of the orders.

Seats . . . . . . . $1,782.50Shipping . . . . . . . $100.00

Set Up for Printing . . . . . . . $65.00Marketing . . . . . . . $50.00

Total . . . . . . . $1,997.50

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Shipping charges are also fixed for each of our bulk orders. Respectively, fixed shipping costs

are $29, $51, and $96. A second fixed costs section includes our screen-printing for our stadium

seats. We have a $65 set up fee for the use of a single color of our seats. If we wanted to use

multiple colors, an additional $50 fee for each added color will be added to the original $65 for

the first color. (e.g. if we wanted to have a two color logo, the setup fee would be $115.) For

renting purposes, we will purchase an order of 25 seats at $500 for the seats also including the

fixed shipping cost for an order of 25 seats of $29, bringing the total fixed costs for our renting

supply to $529.

Variable Costs:

In the future, we are considering having more than one color printed on our seats. This

would give us variable costs of an additional $0.95 fee for each additional color per seat. (e.g. the

total variable costs come in when an order of 25 seats is ordered, with two colors it would

consists of the ($0.95x25).) Charity variable costs are dependent upon the amount of profit we

receive from sales. We are donating 20% of our profits at the end of each month. (e.g. a profit of

$200 would result in $40 charity donations to select organization).

Mixed Costs:

We currently have no mixed costs that are implicated within our business plan.

Charity:

A very unique part to our business plan that we would like to incorporate is our business

is to give back to the community and Marian University. We have decided to pick a new

organization each month while our business is open to donate 20% of our profits for charity. One

organization that we have in mind would be the IPS school system to help those in grade school,

KnightSeats 26

middle school and high school to receive better aid in enhancing their knowledge. A second

option we have is to donate to a research foundation such as breast cancer awareness or autism

awareness. We feel that helping the less fortunate is a great way to not only gain support but

more importantly to show support. Ideas are open as to which and what kinds of organizations

will be donated to. We plan to donate to a different organization or research awareness each

month to expand and reach out to as many people we can.

Opportunity Cost:

We, as a group, explored a plethora of ideas for our business. All of the ideas that we

explored were certainly good ones but each of them had a drawback that would cause our

business not to thrive in a profitable fashion. The first product that we brainstormed was Class T-

shirts. This idea was something that we planned to sell to students here on campus according to

their class in regards to graduation. This was a great idea for a business, but the T-shirt is only a

limited use item. Once the student is no longer a freshman in college they may not feel that the

purchase is worth the cost. In addition to getting a useful product for your money, the shirt

would eventually fade and become worn, and we want our customer to have a product that will

be durable for a number of years. The second business idea that we explored was a Marian

University cell phone case. We planned to create a customized Marian cell phone case with the

university logo on it. This idea was a “no-go” because we would be in direct competition with

the bookstore. With the bookstore being the contracted business that sells Marian University

products here on campus, we would not be able to compete with their sales. Along with

competing with the bookstore, we took into account that there are many different styles of

phones. Creating one or two different cases would still leave out a vast majority of our potential

KnightSeats 27

customers. Lastly, we explored the idea of creating a putt-putt golf course. We contemplated this

idea because we wanted students on campus to have a leisure activity to do when other activities

were not available. As we continued to explore this option we realized that the costs of creating,

maintaining and improving would be outrageous. Purchasing the materials, rental fees, and labor

wages would not allow the business to be very profitable and able to grow. Also, we recognized

that there is not enough space here on campus to put a putt-putt course with the new and existing

buildings. These restrictions and limitations left us with our current business idea and plan.

Executive Summary:

KnightSeats is a business that will be purchasing stadium seats from Branders, a bulk

wholesale company located in California. From Branders, KnightSeats has a plethora of

ordering options for added convenience when making bulk purchases. The ordering options start

at a basic small order of 25 seats at $20 per seat. The middle size quantity is 50 seats at $18 per

seat. The largest bulk order size is 115 seats that cost us $15.50 per seat. In addition to the

pricing of the seats there is a one-time fee of $65 for the setup of printing the Marian University

logo. KnightSeats will have a table setup outside the entrance of the St. Vincent Health Field as

well as all the other athletic events held on campus to promote our product to all Marian

University fans and supporters that attend the home sporting events that are located outside.

Along with selling at the outdoor sporting events, we will also provide our products to fans that

attend indoor events such as women’s volleyball. During the winter sports such as basketball

and indoor track and field, we intend to display our product in the same fashion. Also offered to

those who may not want to purchase a seat but wish to sit in style, our easy and convenient

KnightSeats 28

renting option featuring our product for $15 per game will also be offered. If the consumer

would like to purchase the seat at the end of the event due to their wonderful experience using

our product, the difference will be credited to the purchase of their seat to ensure that our

consumer gets the same quality product at the same price as others who purchase our product.

With our product, we are offering the fans an opportunity to sit comfortably while they watch

their favorite Marian University athletes. Our business is creating awareness currently by

displaying fliers on bulletin boards around campus. Our business will open on the day of the

very first sporting event in August 2014 and close on the final game in December. All remaining

seats will be sold at a discounted price to clear all inventory for the current semester. We are

expecting to sell our inventory of 115 seats for a total revenue equaling $4025.72 while our total

profit will be $2027.72 over period of the semester of August to December of 2014.

Exit Strategy:

In every business it is imperative to have an exit strategy; in other words it is vital that

there is a plan if it is decided to withdrawal from the business. Our first strategy is to keep the

business going! We plan on selling all of our seats in our first order of 115 and then some!

However, with fads and with some consumers being on a tighter budget, this could always not

happen. In that case, our second strategy would be that we could sell our left over units at the end

of the semester to the bookstore here on campus. If our business thrives and does well but can’t

quite sell all 115 units within the first semester and we want to discontinue the business, this will

hopefully catch the eye the bookstore to be interested in buying our seats at a discounted price

from us directly. After the bookstore purchases our seats, the profit that we make from selling the

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remaining seats to the bookstore will be divided up between the four of us involved in the

partnership based on total units sold per person. Another exit strategy that we considered is to

pass the business on to another group of students on campus that share the same ideas and

positive outlook of our product. This could be a result of us graduating or other reasons. If the

business is thriving well enough to continue and the bookstore is not interested, selling it to other

individuals would be a positive outcome. We would sell the remainder of our seats to them, if

there are any, and also necessary information to continue the business. Lastly, and the easiest

way to exit the business is to simply sell all our seats at a liquidation price and split the profit we

make accordingly per unit that each person sells. After the profits are divided we would be

finished with the business.

“Discomfort have you beat? Grab a KnightSeat!”