The Industry• Name and describe the market or industry that

you will work within—in other words, the chosen “sandbox” where you will play.

• For market or industry descriptions see the North American Industry Classification System (NAICS) at www.census.gov/naics or industries at a glance at http://www.bls.gov/bls/industry.htm

• Talk about any trends and changes in the industry.

• Talk about whether the industry is growing and, if so, by how much.

The Product• Talk about the product or service that you will

sell.• Talk about what sets the product or service

apart from what is currently being sold to customers.

• Talk about any ways you can protect the product or service from being easily copied by the competition.

• Present any product pictures, drawings, or renderings you might have (on additional slides if necessary).

The Market• The idea for a market study is to tell the “story of the market”

in numbers starting with the big picture and then narrowing down the data to a more detailed view. Use as many slides as you need and don’t clutter the information.

• Talk specifically about where your customers are located. Are they within a city, county, state, region, nation, or international place? Maps are good to use here if it makes sense.

• Talk about the numbers of customers in the market and possibly even what they spend on your kind of products and services.

• Present any community profiles for these places. The Census Bureau is a great place to find such information at www.census.gov

• If you are targeting business customers look at the Economic Census at http://www.census.gov/econ/census02/ for help.

The Targeted Customers

• Talk about your targeted customers. Remember, you can segment customers by type, buying behavior, location, and so on.

• Describe who they are by discussing some of the following things: (use multiple slides if needed)– Demographics (characteristics they share in common)– Buying Behavior (how and why they buy the product) – Size (numbers of them / dollars they spend)– Projected Sales– Trends (growth / opportunities)

Target Market Strategy• For your targeted customers, talk about how you will

customize your marketing efforts to fit their needs.• Remember, if this group of customers is really unique

then something about your strategy must be different.• Talk about…

– The Message: What slogan or positioning statement will you use for this target market?

– The Pricing: Will the pricing have to be different for this type of customer? If so, what price will you charge?

– Product Customization: Will the product or service have to be customized for this customer?

– Distribution: Will the product get to this customer?

Target Market Sales Approach• Talk about your specific sales and promotional ideas

for this target market which might include:– Contact Sphere: What other businesses or professions might

naturally refer this group of customers to your business?– Advertising: What specific types of media will you use and at

what cost?– Public Relations: What kinds of media relations, press releases,

and events might you use to reach this group of customers?– Personal Selling: Do you require a sales force to reach this

group of customers? If so, how many and at what cost?– Sales Promotions: What kinds of sales tools might you use?

Discounts, coupons, loyalty programs?

Target Market DescriptionsDescription Target Market #1 Target Market #2 Target Market #3

Name Local Market Commuting Workers & Tourists

Commercial Events

Description People and households within 7 miles of the restaurant

People migrating into Bartholomew County for work or tourism

Commercial business in Bartholomew County that need catering event services

Demographics Consumers ages 21 to 54 / $54,000 average household income

Workers and Tourists ages 21 to 54

Businesses from 20 to 300 employees

Buying Behavior Frequent but small purchases (5 times per year at about $9.00 per patron)

Infrequent but larger purchases (1 time but spends upward of $12.00 per patron)

Infrequent but very large purchases (2 events per year spending $600.00 per event)

Size (numbers/dollars) 58,600 residents / 20,000 households / $58 million local market for restaurant sales

9,000 daily commuters / 28,000 annual tourists

400 businesses

Projected Sales $400,000 $150,000 $100,000

Trends slow to moderate growth / spending less on meals away from home on average

Good growth / new arts theatre nearby should improve traffic

Excellent growth in company numbers and employment trends

Target Market StrategiesStrategy Target Market #1 Target Market #2 Target Market #3

Positioning Message The Gourmet Restaurant Where You Eat With Your Hands

Gourmet Burritos…Fast Big Burritos For Big Crowds

Pricing Entrees between $4 and $6 Entrees between $4 and $16 Per head range from $8 to $12

Product Customization Lunch time speed is largest consideration

Banquet style service

Distribution At retail location At retail location On-site catering set-up and service

Contact Sphere Visitors center, community development, tourism bureau, hotel concierges

Chamber of commerce, HR managers, event planners, public relations managers

Advertising Newspaper, yellow pages, specialty publications, website

Hotel brochures, tourism directory, billboards, restaurant guide

Direct mail, business section of newspaper

Public Relations Annual 5K charity run for diabetes assn.

Personal Selling Part-time banquet sales coordinator

Sales Promotions Discount coupons, samples Hotel referral fees 15% off first event promotion

Competitive Value Curve

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Minute Clinic Typical Doctors Office Hospital

HIGHLEVEL

LOWLEVEL

Competitive Analysis

COMPANY WE CAN DO, THEY CAN’T WE CAN’T DO, THEY CAN

Competitor X

Competitor Y

Competitor Z

The Marketing Schedule

Media Annual Cost

Yellow Pages (South Central Edition)

Category: Restaurants, Restaurant Guide $3,600.00

Newspaper (The Republic: Circulation 28,000)

Ad Design Costs $800.00

Media Costs (24 ads @ $328) $7800.00

Direct Mail (Brochures and Special Occasions)

Distribution (5,000 @ $.50 per piece @ $.27 postage) $3,850.00

Radio (QMIX 103 / Adult Contemporary & WTIU/NPR)

Media Costs (600 :30 second ads @ $6.20 per spot) $3,720.00

Total Annual Advertising and Media Costs $19,770.00

The Location• Talk about where you will be located. If you are a retailer or a

service business where access and visibility is important to the customer, talk about your proposed location. Provide the address and talk about the accessibility, the visibility, and the costs.

• Talk about the numbers and types of customers that are located near your location. These numbers are called “ring studies” because they detail the number of customers in 1,3 and 5 mile rings from your location. See www.easidemographics.com for free ring reports of your location.

• Talk about any commuting and traffic patterns around the location. Check with your state’s department of transportation for these statistics.

DELETE THIS SLIDE

Legal Structure ComparisonCharacteristics

Sole Proprietorship

General Partnership

CCorporation

SCorporation

Limited Liability Company

Formation No state filing required Agreement between two or more parties. No state filing

required

State filing required State filing required State filing required

Duration of Existence Dissolved if sole proprietor ceases doing business or

dies

Dissolves upon death or withdrawal of a partner unless safeguards are

specified in a partnership agreement

Perpetual Perpetual Dependent on the requirements imposed by the

state of formation

Liability Sole proprietor has unlimited liability

Partners have unlimited liability

Shareholders are typically not personably liable for the

debts of the corporation

Shareholders are typically not personally liable for the

debts of the corporation

Members are not typically liable for the debts of the

LLC

Operational Requirements

Relatively few legal requirements

Relatively few legal requirements

Board of directors, officers, annual meetings, and annual

reporting required

Board of directors, officers, annual meetings, and annual

reporting required

Some formal requirements but less formal than

corporations

Management Sole proprietor has full control of management and

operations

Typically each partner has an equal voice, unless otherwise arranged

Managed by the directors, who are elected by the

shareholders

Managed by the directors, who are elected by the

shareholders

Members have an operating agreement that outlines

management

Taxation Not a taxable entity. Sole proprietor pays all taxes

Not a taxable entity. Each partner pays tax on his/her share of income and can

deduct losses against other sources of income

Taxed at the entity level. If dividends are distributed to shareholders, dividends are also taxed at the individual

level

No tax at the entity level. Income/loss is passed

through to the shareholders

If properly structured there is no tax at the entity level. Income/loss is passed through to members

Pass Through Income/Loss

Yes Yes No Yes Yes

Double Taxation No No Yes, if income is distributed to shareholders in the form

of dividends

No No

Cost of Creation None None State filing fee required State filing fee required State filing fee required

Raising Capital Often difficult unless individual contributes funds

Contributions can be made from partners, and more partners can be added

Shares of stock are sold to raise capital

Shares of stock are sold to raise capital

Possible to sell interests, though subject to operating

agreement restrictions

Transferability of Interest No No Shares of stock are easily transferred

Yes, but must observe IRS regulations on who can own

stock

Possibly, depending on restrictions outlined in the

operating agreement

The Legal Structure• Talk about the legal structure you have chosen for the

business. See the preceding chart for help.• Talk about why the structure was chosen—in other

words, what advantages does the structure provide?• A sample chart like the one below might be helpful to

show the ownership structure of the business:Owner Shares Percent Owned

Jack Smith 1,000 50%Loretta Johnson 500 25%Equity Investors 500 25%

Risk Management

• Talk about the different kinds of insurance you will need and what the cost of such coverage will be.

• In general there are three basic categories of insurance:– Property: covers building and content losses– Liability: gives you legal protection– People: provides health, worker’s comp, and lost income

protection

The Core Scores

• Talk about what things you need to measure to be successful.

• These measures might be leading indicators of such things as customers, growth, innovation, internal operations, or financial performance.– Example: “The Chamber of Commerce will measure five

metrics in determining our success: annual member engagement, member retention, net member growth, market penetration, and employee engagement.

– Example: “For our restaurant to be successful, we must closely measure four activities: reservations and table turns, food costs, staff turn-over rates, and total staffing costs.”

Required Start-Up FundsItem Amount

Fixed Assets

-Building $1,000

-Land $1,000

-Initial Inventory $1,000

-Equipment $1,000

-Furniture and Fixtures $1,000

-Vehicles $1,000

Working Capital

-Salaries and Wages $1,000

-Insurance Premiums $1,000

-Leasehold Improvements $1,000

-Rent and Utility Deposits $1,000

-Advertising and Promotions $1,000

-Legal and Accounting Fees $1,000

-Supplies $1,000

-Cash on Hand $1,000

Totals $15,000

Capital Strategy

Total Amount Required $907,900

-4 Investors ($50,000 each will get 25% share of company) $200,000

-Commercial Bank Loan (Real Estate & 80% Building) $684,000

-Owners $23,900

Loan Payment Amounts

-Principal Amount Borrowed $684,000

-Projected Interest Rate 7.25%

-Term In Months 240

Total Monthly Loan Payment $5,406.17