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

Brandalism Cafe

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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