UD Coolbacks Business Plan

8/13/2019 UD Coolbacks Business Plan

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BUSINESS PLAN

UD Coolbacks

Cooler Backpacks

President:Matt Packard

Accountant:Reese Eckenrode

Marketing and Sales:Ian Palin

Logistics:Casey Lebrun

Crotty Center for Entrepreneurial Leadership

University of Dayton

300 College Park

Dayton, OH 45409

Tel: 207-329-8408

[email protected]

Date Prepared:

November 20131.0 Table of Contents:.........................................................................................................................22.0 Executive Summary......4


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2.1 Mission Statement....4

2.2 Venture Description.....4

2.3 Venture Objectives and goals...5

2.4 Venture Market....6

2.5 Venture Operations..8

2.6 Venture Organization...92.7 Venture Financing9

3.0 Management and Organization Plan....10

3.1 Management Team........10

3.2 Compensation and ownership.....10

3.3 Board of directors/Advisory Council..............10

3.4 Infrastructure......11

3.5 Contracts and franchise agreements...11

3.6 Insurance12

3.7 Employee stock option plan and other incentives....12

3.8 Organization charts.....12

4.0 Product/Service Plan.......13

4.1 Purpose of the product.......13

4.2 Unique features..13

4.3 Stage of development.....13

4.4 Future research and development .........14

4.5 Trademarks, patents, copyrights, licenses, royalties....14

4.6 Product/Service limitations.........14

4.7 Product/Service liability......15

4.8 Production......15

4.9 Suppliers.....15

5.0 Marketing Plan...........155.1 Industry profile.......15

5.2 Growth Potential........16

5.3 Industry Location...........16

5.4 Industry Trends......16

5.5 Seasonality Factors............17

5.6 Profit Characteristics.........17

5.7 Distribution Channels.........17

5.8 Basis of Competition......18

5.9 Competitive Profile........18

5.10 Customer Profile..........19

5.11 Target Market Profile...20

5.12 Pricing Profile...........20

5.13 Gross Margin on Product..20


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5.14 Break-even Analysis.21

5.15 Distribution Channels........21

5.16 Sales Representatives...22

5.17 Direct-sales Force.22

5.18 Advertising and Promotion....23

5.19 Package and Labeling...235.20 Service and Warranties ....23

5.21 Future Markets.........23

6.0 Financial Plan......24

6.1 Projected Income Statement..........24

6.2 Projected Cash Flow Statement......25

6.3 Projected Costs...25

6.4 Sales Projections.....25

7.0 Operating and Control Systems Plan......26

7.1 Receiving orders.....26

7.2 Billing customers.....26

7.3 Paying suppliers..26

7.4 Reporting to management.......27

7.5 Staff development...27

7.6 Inventory control.....27

7.7 Handling warranties and returns.........28

7.8 Monitoring the company budgets....28

7.9 Security systems.....28

8.0 Planning Chart.....29

8.1 Timeline plan......29

9.0 Growth Plan....35

9.1 New offering to market......359.2 Capital requirements...........35

9.3 Personnel requirements...35

9.4 Exit strategy....36

10.0 Appendix36

10.1 Invoice and Order Quote......36

10.2 Works Cited..37

10.3 Matt Packards resume....38

10.4 Casey LeBruns resume...39

10.5 Ian Palins resume....40

10.6 Reese Eckenrodes resume......41

10.7 Advertisement Example....42

10.8 Copy of Invoice..........43


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2.0 Executive Summary

2.1 Mission Statement

As aspiring entrepreneurs, UD Coolbacks will do our best to plan, organize, and

create a complete, efficient micro-company using sound business tactics we have learned in our

time in the University of Dayton business school thus far. We will strive not only to meet our

marginal goals throughout the life of the business, but to undertake any and all issues on the way

to ensuring a profit return on our investments. UD Coolbacks is an honest company, and will

treat all customers fairly and equally on the way to our goals. Lastly, we hope to learn from our

successes and failures throughout the venture and to gain knowledge on how to handle future

business opportunities.

2.2 Venture History and Description

Our company has a short and brief history on campus. However, we did have the

advantage of receiving our product very early on in the process. We made our first sale on

September 28, during parents weekend. This was a key selling point for our company, and

showed us just how important it was to get the product in early. UD Coolbacks has been around

since the middle of September, and is set to disintegrate in April, 2014.

UD Coolbacks is a micro-company created and limited to the University of Dayton

campus. However, we are more than just a project. We are four individuals with unique

responsibilities that comprise a team with a common goal of selling our product to any and all

customers who are interested. We are not limited to selling only to students, and have a goal of


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selling to diverse customer segments. An important aspect of our company is the name. It is a

combination of our school, and the description of our product. The words cooler and

backpack are mixed together to create a name that pops, and gains customer intrigue. This fact,

along with the Flyers logo attached to our product combine to make the product sell itself. Our

team is constantly thinking of more ways to sell, and different markets to hit in order to achieve

the largest profit possible. Our product is unanimously relevant, and can be used by and gender

or age.

2.3 Venture Objectives and Goals

Over the duration of our business venture, we have set weekly goals to keep the team

focused and productive. Our weekly tasks include goals for sales, completion of the business

plan, and further marketing ideas. These weekly tasks are the basis of our company and help us

deal with ongoing issues and opportunities to further the success of UD Coolbacks. Our goals

will change as the months go on to coincide with our sales forecast and strategies pertaining to

the time of year. Long term goals include keys to success in a business venture in general. These

include:

1. Attention to Detail. Each and every task is to be fully completed and every aspect is to be

thoroughly examined before completion

2. Communication is paramount. Weekly meetings are the time to communicate any issues,

concerns, or ideas! Constant communication is open via group text and e-mail.

3. Persistence. When selling, and when completing tasks, persistence is key in order to get a

sale or to create the best end result.


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4. There is always work to be done. Group members should never be without a task during

the venture. There is always something to be done, and we need to be proactive in completing

those tasks.

5. All actions in line with the company must ultimately be in the best interests of UD

Coolbacks

If and when all of these goals are achieved, UD Coolbacks will be unified for the entirety

of the venture. We will also be very successful, selling out our entire inventory and gaining a

profit that is near the top of the class. Learning from failures and issues, and ultimately gaining

success will provide our group with the most business knowledge possible, and set us up for our

future.

2.4 Venture Market

Via observation and extensive thought, the Coolback marketing team concluded that they

would market at first to parents and alumni, and then later to students and faculty. With this

said, we have chosen the demographics of our venture market.

Alumni and parents belong together in our marketing outlook because both alumni and

parents attend the University of Dayton tailgates. Alumni may attend more on a regular basis,

however, big selling opportunities, like family weekend for example, attract large crowds of

parents as well. Our Coolback team believes strongly that parents are an ideal customer of our

product, largely because of the higher cost it carries amongst other products. Most obviously,

parents contain significantly more money than their children and furthermore, much more money

they will be inclined to spend. We believe at these family outings students and siblings will find


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an interest that parents will fulfill upon impulse. These transactions are a crucial goal of our

marketing strategy. Alumni, like parents, possess a higher income that will also accept a yes to

our product. Unlike parents, however, we feel that alumni will purchase our product because of

the UD logo, rather than the product itself. With this said, we believe that we should market our

product in a way that shows benefit to the University. For instance, we could go into a greater

depth about the micro businesses we are running and the charities that the proceeds are going

towards.

Retaining now to the University of Dayton students that most certainly fit into our

marketing vision, we plan to target the freshman on campus after headway has been achieved in

our teams sales. Freshman surely will be inclined to buy our product because of their new

energy and passion of the school that they now attend. Freshman, however, will not be our only

student target. With 7,843 undergraduates and 3,202 graduate students, we cannot diminish

ourselves from the masses. With a product so favorable to tailgates, we will aim to target

students of all ages at University sporting events. Furthermore, because our product is more

attached to warm weather, we will aim to sell our product as soon as possible and after the

holidays. Unlike many other groups, we believe that selling to the freshman is the easiest way to

go about getting sales, and therefore, we should target them later, rather than sooner, when our

sales are slowing down.

2.5 Venture Operations

Due to our target market existing heavily amongst UD sports fans, our sales schedule

depends largely upon the schedules of sports teams here at the University of Dayton. Because


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each member of our team is a highly dedicated entrepreneurship student, we all are constantly

busy with schoolwork and outside activities. Because of this issue, sales is so important within

our Operations. One of our members is actually on the UD football team, and therefore, cannot

possibly attend any tailgates related to football. In order to solve this, our team has done its best

and will continue to do its best to make up for any missed selling opportunities either during the

week or at separate times other than what our team has planned.

In order to remain organized and in tune with our actual sales, our team has a Google

Docs page that team members can update whenever they make a sale. On the page, members

can record how many were sold and on what date they were sold, and all members can view each

others submissions. This page is a huge help to the accountant as he records the teams monthly

income and cash flow on a separate excel worksheet.

As well as documented evidence, our team president hosts meetings every Monday night

to clarify the submissions and to reflect our standing upon the sales projections we envisioned

earlier on. These meetings also are used as a time for team members to discuss any difficulties or

successes they have found while working with our target markets.

Within our operating plan are illustrations of inventory transportation (from vendor to the

University), money management, development, from start to exit, documentation, planning, and

any assistance that was needed along the way.

2.6 Venture Organization

UD Coolbacks is operated under the guidance and education of the Crotty Center for

Entrepreneurial Leadership and the University of Dayton School of Business Administration. UD


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Coolbacks is led by the President, Matthew Packard. Mr. Packard ensures the timely completion

of class assignments and business goals, group cohesiveness, and overall business success. Ian

Palin serves as the Vice President of Marketing by identifying target markets and developing

marketing plans. Casey LeBrun, the VP of logistics, heads all things related to inventory and

dealing with the supplier. Reese Eckenrode handles financial activity and records sales. As the

VP of Accounting, he ensures the books are kept. Prof. Robert Chelle is our main business

advisor who serves as counselor for major business decisions.

2.7 Venture Financing

In 1998, Bill Crotty gifted the University of Dayton $1 million to establish the Crotty

Center for Entrepreneurial Leadership. In September 2013, UD Coolbacks was formed with the

educational direction of the Crotty Center and was approved for a $5,000 no interest loan from

the Center. This start-up loan was received by UD Coolbacks and deposited in a Day Air Credit

Union checking account to be used for inventory and operations of our micro-company. UD

Coolbacks VP of Accounting and other members of the Coolbacks team will analyze financial

statements to determine the overall financial success of the company. Income statements, cash

flow statements, inventory, and budget cohesion will all be analyzed.

3.0 Management and Organization Plan

3.1 Management Team

In our company, we have four members, all contributing to the operation of UD


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Coolbacks. First is Matthew Packard, the president. His job is to oversee operations of the

company, keep up our reputation, and keep team morale high. Also, he keeps in contact and

maintains a relationship with our supplier. Next is Reese Eckenrode, the Accountant. He keeps

detailed, accurate records of the income, expenses, and expected profits incurred by our

company. Next is Ian Palin, in charge of Marketing/Sales. He takes care of setting up times and

venues to sell, and also constantly promoting our product. Last is Casey LeBrun, the logistics

manager. He is in possession of our inventory, and stays on top of product count, as well as

online order forms. Each member of the team has a resume attached to the appendix.

3.2 Compensation and Ownership

Our micro-company is operated entirely under the name UD Coolbacks. We are a

partnership, consisting of four people who share a common interest of gaining valuable business

experience as well as earning a profit. Each member hopes to learn all aspects of running a

business, with a specialty in their respective fields. The team with the most profits receives a

prize, and all profits are given to charity, providing a sense of pride to the winning team as well.

3.3 Board of Directors/Advisory Council

As a micro-company constructed on the campus of the University of Dayton, we have no

acting board of directors. However, members of the UD community could be helpful as an

advisory council. Professor Timothy Wood could help in case of a legal question. He has been a

respected lawyer for years. Professor Robert Chelle, an entrepreneur himself, has extensive

knowledge when it comes to business activities. He owned and operated a company for twenty-

seven years. Geeta Shankar, a long-tenured Accountant, could help us straighten out our books


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and financial statements if need be. Lastly, we have a JEM (Junior Entrepreneurship Mentor) that

has been through the same process we are currently going through, who could help us with any

questions.

-Timothy Wood [email protected] Timothy wood is a

MGT 201 professor at the University of Dayton, as well as a local lawyer/judge.

-Robert Chelle [email protected] Robert Chelle is an

ENT professor at UD, and retired after 27 years of business ownership.

-Geeta Shankar [email protected] Geeta Shankar is an ACC

207 professor at UD.

-Kelly Muskat [email protected] Kelly Muskat is a

JEM for the ENT program.

3.4 Infrastructure

Key advisors include Professors Wood, Shankar, and Chelle. Their compensation is

helping student become successful, which is fulfilling for teachers. Also, our parents, with

extensive business experience, have helped throughout the process. However, most of the

business analysis and decision making falls on the four members of the team. We rely on

constructive criticism, substantial effort, and attendance at all team meetings.

3.5 Contracts and Franchise Agreements

We are a unique company in the Dayton area, and we do not present a legitimate threat to

any other companies. We have no non-compete statute, no franchisees, andno limitations.


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However, we are under two contracts. The first is with the universitys athletic department. We

are expected to uphold and maintain the integrity of any UD logos we use in our marketing or on

our products. Our product was cleared before the order process. Second, we consulted with

Camille Espinola of Branders.com, and engaged in a verbal agreement to purchase 100 logoed

cooler backpacks at a price of $9.93 per.

3.6 Insurance

Our micro-company is bound and owned by the University of Dayton. Any legal issues,

including insurance, personal liability, including any situation involving compensation for a

specified loss or damage that may arise over the duration of our venture, will be covered under

the University of Daytons indemnity policy.

3.7 Employee Stock Option Plan and Other Incentives

The main incentive for our micro-company is to have the most profit in comparison to

other micro-companies in the ENT program. This would allow us to give the most money to

charity, and also reimburse the full loan we received upon starting the venture. Also, UD

Coolbacks has set up an incentive plan to ensure we sell out our entire inventory. The highest

seller at the close of the company gets an all-expenses paid dinner at the Brown Street restaurant

of his choice.

3.8 Organizational Chart


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4.0 Product/Service Plan

4.1 Purpose of the Product

The purpose of our product is to provide an insulated bag that keeps food or beverage

items cold on the go. The customer is benefited in multiple ways. Firstly, as stated before, the

bag keeps items colder than a non-insulated backpack and it is also waterproof. Secondly the bag

provides an alternative to using a more expensive backpack for the storage of cold items. Price is

an advantage because it is less expensive than all competitors. It addresses the student need of a

bag that is designed to keep items cold when moving from place to place, something that a

regular backpack does not provide. Our bag is not a necessary item to most consumers. It is a

luxury for the consumer to have a colder beverage on the go than the average bag provides.

4.2 Unique Features

The insulation and waterproof aspects of our bag are what makes it unique. The risk of a


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beverage sweating through the heat-sealed PEVA lined cooler is completely wiped out. It can

hold up to 18 cans so it is fairly large. Our bag is emblazoned with the red Dayton Flyers logo

with blue accents on various parts of the black backpack, making it more valuable to those with

connections to UD. There are 3 exterior pockets, along with an adjustable elastic cord that can

hold larger items. The backpack straps are padded and adjustable to fit, and there is also a

carrying handle at the top of the pack.

4.3 Stage of Development

After multiple phone conversations with our manufacturer, Branders.com, we were able

to get an image of our finalized product design. Once all the group members approved it was

what we wanted, we sent in the final image to Al Tomlinson, the Assistant Director of Corporate

Relations at UD. Mr. Tomlinson approved our product design and we contacted our

manufacturer and were able to place an initial order of 100 backpacks with an agreed upon

shipping date. The backpacks arrived on time and as planned. After deciding on a price of 20$

we began the selling stage that we are currently still in.

4.4 Future Research and Development

Our future R&D will be limited to ordering more of the same product if the demand

proves to be high. Because we initially ordered a relatively small amount and sales have been

high, it is not unlikely for us to make another order. It is also possible for our next order to be a

different color or different design, but with the same general product.

4.5 Trademarks, Patents, Copyrights, Licenses, Royalties

The Dayton Flyers logo that we used is a trademark of the University of Dayton. We got


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permission from the University to use their logo. The final design was approved by one of the

Universitys marketing representatives. Our Dayton Flyers logo contains a registered logo in the

top right corner to show it is official.

4.6 Product Limitations

The biggest limitation of our product is that the zipper is not waterproof. If the bag was

filled with water and turned upside down, the water would seep out through the zipper. This is

not a major concern of ours because the likelihood of that happening is small. Another limitation

is that our product is more of a hot weather item. This is also not a major concern because its

functionality is not affected and usage of it during cold months will most likely only slightly

decrease.

4.7 Product Liability

Product liability is very minimal. There is no insurance cost. A potential liability would

be if the zipper breaks or the material tears. We are not liable for the product once a sale occurs.

Also, the 100 coolbacks we received were guaranteed to be functional by the supplier. If we had

a problem with that, they would have been replaced at no charge.

4.8 Production

All of our backpacks are produced and shipped to us by Branders.com. We decided on

our vendor after looking around at different companies able to produce the type of product we

wanted. We chose Branders.com because they offered the highest quality product in our price

range. Branders.com lowers their price if the number of backpacks ordered increases. These


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increments start at 50 backpacks priced at $12.32 each. If you order 100 they are $9.93 each,

which is what we went with. There was an initial artwork setup charge of 50$. We also had to

pay for shipping which was 126$. No sales tax was added onto the order, and our shipping fee

was cheap considering how quickly we received the product.

4.9 Suppliers

Our manufacturers are in charge of having suppliers of the raw materials needed to make

our product.

5.0 Marketing Plan

5.1 Industry Profile

The backpack manufacturing industry will continue to recover over the next five years

because of constant innovation and better quality backpacks. Domestic producers will continue

to feel the pressure of foreign manufacturing since it is cheaper to produce in other countries. But

fortunately for domestic manufacturers, there is a continual a focus on backpack quality. The

industry for cooler backpacks is not a large one. The product we ordered is mainly used for

promotional activities by companies.

5.2 Growth Potential

UD Coolbacks has started out, selling forty backpacks, on our first two outings at the

University of Dayton football games, selling to alumni and parents. We are now in our growth

stage and constantly searching for new ways to sell, improve and change the look of our cooler

backpacks. Dorm storms, alumni events, and selling over holiday breaks to family are a few


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other ways to drive up sales. Other growth potential includes the possibility of placing a second

order and selling those out in order to create extra profit.

5.3 Industry Location

The backpack industry is located both domestically and foreign. Backpack manufacturers

are found throughout the USA, China, and Mexico. UD Coolbacks obtained our backpacks from

Mountain View, California from Branders.com. This was a unique vendor, considering they are

cooler backpacks, which are basically only found on promotional websites. A cooler backpack is

not a common household item, so we have to look at the backpack industry in general for the

most part.

5.4 Industry Trends

Cooler backpacks are higher in quality, more durable, and directed towards people who

love the outdoors. Some new features have been added to cooler backpacks continuing the trend

towards innovative quality products.

5.5 Seasonality Factors

Cooler backpacks sell the most during the warmer months, as people are not as concerned

about keeping their food and beverages cold during winter. Also, the UD Coolbacks can be used

to keep food warm and protected from cold winter weather. Therefore, our group needs to do a

good job of emphasizing the usefulness of our product throughout the year, no matter what the

weather is. We can use the warmth factor to our advantage in advertising during colder months,

and the cool factor to our advantage in warmer months.

5.6 Profit Characteristics


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The average profit margin for the industry is 40-75 percent. The backpacks are relatively

cheap to make but the consumer is willing to pay up to sixty dollars for a cooler backpack. With

all of our costs accounted for, each product costs $11.70, and our profit margin comes out to

41.5%. There are a few reasons why our margin is on the low side. First, we got our product

from a supplier who is selling the products for a profit for themselves. They undoubtedly got

them for a lower price, but drove that price up to earn a profit. Second, we could have chosen to

charge more for each product, but we decided on a flat $20 rate because it is simple and easy for

people to pay.

5.7 Distribution Channels

Some of the distribution channels consist of drug stores, sporting goods stores, and

outdoor activity oriented stores. Another main distribution channel nationwide is the internet,

where many promotional websites sell a similar product. UD Coolbacks is focusing on selling

the Coolbacks directly on campus to provide convenience for our customers. The furthest off

campus we have ventured is to Welcome Stadium, with the products in hand to sell at football

games.

5.8 Basis of Competition

The cooler backpack industry competes on both price, and purpose. Some cooler

backpacks are cheaply made and they compete by having a lower price. Others are just directed

towards different audiences, for instance: fisherman or for a family picnic. UD Coolbacks will

beat its competitors by having a low price and the convenience of being located right on campus

making them easy to purchase. Also, our University of Dayton athletics logo is what sets us apart


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from competition outside of campus.

5.9 Competition Profile

UD Coolbacks is in competition with coolers, backpacks, and other means of transporting

beverages or cold items. Coolers appeal to tailgaters but are often expensive and a load to carry

around. Almost everyone has a quality backpack but very few have a backpack that is also a

cooler. Our coolbacks combine both the backpack and the cooler functionality for a low-priced

quality product. Below is a chart showing our competitive analysis.


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5.10 Customer Profile

The profile of the intended customer is a University of Dayton college student who needs

a cooler backpack for beverages on the go, or for bringing back groceries to their room. Also,


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alumni or parents anywhere from age 35-65 who enjoys tailgating and attending University of

Dayton sporting events.

5.11 Target Market Profile

The target market size is approximately seven thousand undergraduate students plus their

parents and alumni from the University of Dayton. UD Coolbacks have the potential to change

the design of the backpack to appeal to broader markets as well.

5.12 Pricing Profile

The price of the Coolpack is $20. This is an easy amount to pay for in cash, and an

amount customers are willing to pay on the spot.

5.13 Gross Margin on Product

Projected Sales Projected Expenses Projected Gross

Profit

September $800.00 $1170.92 $(370.92)

October $600.00 $0.00 $600.00

November $160.00 $0.00 $160.00

December $0.00 $0.00 $0.00

January $140.00 $0.00 $140.00

5.14 Break-even Analysis


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5.15 Distribution Channels

On campus there are many distribution channels that UD Coolbacks is able to access. Our

most successful distribution channels consist of: sports tailgates, freshman dorms, UD

Coolbacks' Facebook group, and outside of Kennedy Union.

Other means of distribution will be to alumni and parents. A graph is shown below of the

projected sales numbers to each distribution channel.


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5.16 Sales Representatives

UD Coolbacks will be sold by Matt, Reese, Casey and I equally, with a goal to sell 25

coolbacks per person. We will share the profits equally. We will also all take part in making the

flyers, brochure, and other promotional activities. Another important form of advertisement is

word of mouth. Our representatives are expected to constantly endorse the product, and take any

opportunity to sell or drive up our exposure on campus. Each representative is not required to

sell a certain amount, but incentives will be installed for the highest sellers.

5.17 Direct-sales Force

The four-team members including myself are each responsible for selling 25 coolbacks.

Although we each are responsible for selling 25 Coolbacks, we go out and sell as a team. We

have found that being in a group together has helped our charisma and increased the chances of

potential customers agreeing to buy. Coolbacks can and will be transferred between team

members if opportunities come up, or if a team member has sold all of their inventory. Everyone


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started with 25 coolbacks, and was asked to at least attempt to sell all of them.

5.18 Advertising and Promotion

UD Coolbacks has set up a Facebook group, a Twitter profile, and a gmail account. We

can be reached at all of these accounts at any time. Another means of promotion is our class

brochure, including a picture of our team and an advertisement for our product. This has been put

on the Crotty Center website, and has led to some sales for our team. We feel our time is best

spent going out and selling the product, and hopefully gaining more word of mouth from the

satisfied customers who have purchased a coolback.

5.19 Packaging and Labeling

UD Coolbacks are not sold in any packaging or wrapping because we want the product to

be showing at all times. Also, we like the idea that as soon as the transaction occurs, the

customer can immediately use the product.

5.20 Service and Warranties

UD Coolbacks stands by its product as a quality product that will last; however we do not

have any warranties. Service is not required.

5.21 Future Markets

UD Coolbacks has the ability to change its backpack design to appeal to different

markets. For instance we could change the school logo on the backpack to appeal to different

schools. UD Coolbacks has the ability to adapt and progress into new markets.


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6.0 Financial Plan

6.1 Projected Income Statement

UD Coolbacks

Income Statement (Projected)

September 1, 2013 - April 30, 2014


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6.2 Projected Cash Flow Statement

UD Coolbacks

Cash Flow Statement (Projected)

September 1, 2013April 30, 2014

6.3 Projected Costs

The projected costs are based off an original inventory purchase of 100 units. UD

Coolbacks does not plan on ordering anymore cooler backpacks at this time, however, if a

second inventory purchase is needed, UD Coolbacks will coordinate as a team and decide upon a

reasonable second inventory investment.

6.4 Sales Projections

Our sales projections were based upon an original purchase of 100 cooler backpacks.

These projections align with the sales and marketing sections of our business plan, and because

of this, we feel they are attainable. We plan on selling our entire inventory before April 30,


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2014.

7.0. Operations and Control Systems Questions

7.1. Receiving orders

Orders that are received are normally hand to hand direct exchanges. Whoever is making

the sale is responsible for handing over the product. For any online orders, Casey LeBrun

contacts the customer and finds a time and place to make the exchange. Any major decisions will

be discussed by all members of UD Coolbacks before becoming final. Anything that cannot be

agreed upon will ultimately be decided by the President. Casey LeBrun is in charge of Excel

spreadsheets to keep track of orders.

7.2. Billing Customers

Customers have the opinion of paying with cash, check, or Flyer Express. The sales date,

amount received, and inventory on hand for each person will be updated after every sale. UD

Coolbacks makes sure every sale is complete and final.

7.3. Paying Suppliers

The suppliers, Branders.com, were paid via debit card by our President. The total fee was

$1,170.30 for one hundred coolbacks. In turn, we wrote a company check to reimburse the team


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president who originally incurred the cost. The purchase was recorded into all the financial

statements as expenses to the business. Involved in the exchange were two other payments that

helped equal the total. They consisted of a $50 fee for a one time printing charge, and $126 for

shipping from California.

7.4. Reporting to Management

Any issues pertaining to UD Coolbacks are to be communicated to our president,

Matthew Packard. The President is responsible for discussing the issue with the team. Regular

weekly meetings are scheduled by the President on Monday nights, in accordance with

everyones schedule. Everyone is required to attend each meeting, as we discuss business

operations. No formal reports are used for issues or communication.

7.5. Staff Development

Through the creation of UD Coolbacks, the purpose is to learn and develop each member

of the teams knowledge of business operations and what it takes to be a successful entrepreneur.

Having weekly meetings will stress being prompt and responsible. Weekly tasks are also

distributed at each meeting, and are expected to be fully completed. Marketing and sales

techniques are also fine-tuned throughout the selling process. The entrepreneurship lifestyle is

experienced fully on a small scale.

7.6. Inventory Control

Our inventory is accounted for by using an Excel spreadsheet. We record how many

coolbacks each team member has in possession, has sold, and on what dates they were sold. This


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excel spreadsheet is manual, and available via Google Docs to all members of the company at all

times. Logistics manager Casey LeBrun is ultimately responsible for making sure the inventory

is always updated and correct.

7.7. Handling Warranties and Returns

We do not have any return policy. However, if the product is clearly defective and it is

pointed out before the transaction, we will provide a different coolback. Once a coolback is

bought, the customer cannot return it. We have had no problems with defective product or

customers desire to return items. If that comes up, we may meet as a team and decide what action

to take.

7.8. Monitoring the company budgets

We have a few systems set up to record and update our budget. First, the credit union on

campus set us up with a bank account starting with $5,000. This is equipped with online banking

that can be monitored at any time. Secondly, our inventory Excel spreadsheet also shows the

money coming in, which is added to the budget, and periodically entered into our bank account.

We also receive a monthly bank statement to ensure the numbers are all correct. Budget expenses

are to be very limited besides the original purchase.

7.9. Security Systems

We have passwords set up as security for all accounts pertaining to important info about

UD Coolbacks. Only our group has access to our inventory lists, financial statements, e-mail, and

social media. Computer info is internet based so its protected from a computer malfunction. Our


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money is protected in the schools bank with no chance of being lost.

8.0 Planning Chart

8.1 Timeline Plan


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9.0 Growth Plan

9.1 New offerings to market

UD Coolbacks is providing a lightweight, portable, cooler backpack for all of those

adventurers out there interested in keeping things cold! These things could be anything ranging

from beverages to sandwiches to the milk you bought at the dollar store; you name it!

Furthermore, our product lives in style with the ever popular Dayton Flyers logo right on the

heart of it. On both sides of the backpack lie pockets for napkins, flashlights, walkie talkies, or

whatever else our customer may need along their adventure. The straps are even adjustable to fit

the large and small so no customer shall be left uncomfortable.

If our product fails during the duration of our venture, our company will conduct further

research and try to find a cooler backpack with different features to generate profit. We feel that

our failure will be due to pricing related issues and therefore a cheaper backpack may be more

applicable.

9.2 Capital requirementsUD Coolbacks was provided a $5000.00 non-interest bearing loan in order to cover its

cost of goods sold of $1170.00. This loaned money will be used to fund any further investments

in inventory that may arise in the duration of the company.

9.3 Personnel requirements

Each member of the UD Coolbacks management team has chosen and is responsible for

either the accounting portion of the business, the sales/marketing portion, the logistics portion, or

the presidential portion. Regarding these roles, each member is expected to contribute their


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portion to the companies benefit. Time, energy, commitment, integrity, honesty, reliability,

communication, and teamwork all attribute and are expected of the management team to acquire

success. Surely all of these attributes apply to the selling of our inventory, and each member is

required to participate in the physical sales that lead to profit generation.

9.4 Exit strategy

At the end of the second semester, 2014, our company, UD Coolbacks, will close down,

as well as all of the accounts affiliated with it. Our bank account at Day Air Credit Union, our

Facebook group, Gmail account, and Twitter account will all be terminated, and our excess

inventory will be donated to the Crotty Center for miscellaneous use. Any profits made will go

towards the funding of our groups trip to Chicago for the CEO Conference, and any further

proceeds will be given to a charity of our choice.

10.0 Appendix:

10.1. Invoice and Coolback Quote

Branders.com Rep: Camille Espinola (866.296.0019)

Mountain View, CaliforniaInvoice #:651285111

Date:9/21/13

Client:UD Coolbacks

Description:Cooler lined backpacks

Production:(1) Setup Charge and Labeling/ $50.00

(100) Black and Blue Cooler Backpacks/ $994.00

(1) Shipping/ $126.92

Amount Due:$1,170.92 Total (paid before delivery)

-$0 Sales Tax


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10.2. Works Cited

Bradley III, Don B., Dr., Jeannette Thomas, Kim Stubbs, Pierre Murat, Sherryl DeVries, and

Stephanie Wheetley. "A Step-by-Step Business Plan Guidebook." Small Business Advancement

Center, n.d. Web. 5 Nov. 2013. .

Espinola, Camille.Branders.com. Branders, n.d. Web. 21 Sept. 2013.

.

"UD Bookstore | Team Apparel, Gifts & Cheap Textbooks." UD Bookstore | Team Apparel,

Gifts & Cheap Textbooks. N.p., n.d. Web. 07 Nov. 2013.


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10.3 Matt Packards Resume


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10.4 Casey LeBruns Resume


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10.5 Ian Palins Resume


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10.6 Reese Eckenrodes Resume


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10.7 Advertisement Example

10.8 Copy of Invoice


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UD Coolbacks Business Plan

Documents

Transcript of UD Coolbacks Business Plan