Aryssa Bouchard Olga Kowalewski Grade 11 Age 17

BUSINESS PROFILE We selected this business as people in America are becoming more interested in different teas, and have their own tastes and opinions. Type of Business: -Retail -We will provide customers with a wide arrange of homemade and custom teas that they can buy online. Legal Structure: -Partnership -We chose to be a partnership because we feel that the best way to run a business is by having the knowledge and resources of two people.

OPPORTUNITY Opportunities -Increasing trend in teas and natural products. -Other tea stores don’t customize tea. -Tea has proven medical benefits. Qualifications -Have experience and knowledge about teas. -Bilingual and currently learning a third language. -Have taken a Marketing/Entrepreneurship class.

CONSUMER PROFILE -People who enjoy drinking tea By Location -Connecticut By Population - Males and females aged 25 and up By Personality -People who enjoy drinking tea -People who are willing to pay extra to have an excellent quality tea By Behavior -People who often buy loose tea and drink it often -People who would like to purchase tea as gifts By Income -Upper-middle to upper income families

COMPETITION Competitive Advantage Custom made tea to customer’s taste Competitor Price Quality Greatest Strength Greatest Weakness Teavana $24.80 Excellent Large selection One on one customer service Can’t customize your own tea The Tea Spot $19.98 Sells teapots and accessories No advice given Teascapes $18.00 Good Customers can seek advice Competitive Advantage Custom made tea to customer’s taste Customers can seek advice about our products via the internet

MARKETING MIX Price: Price reflects the quality of custom-made tea according to customer’s personal taste Place: Connecticut Product: Custom made tea Internet convenience Promotion: Business cards Website/Social networking Tea tasting

MARKETING PLAN Phase Method Description Cost Awareness Tea tasting Business Cards Word of mouth Online Social Networking Weekly event located at Whole Foods. Handed to customers at events and given with each purchase. Customer will share with others if satisfaction is met. Facebook and website Sampling Tea- $30.00/mo. $0.22/business card Free Purchase Free Shipping Quality Products Customers will be aware of this on our website. We guarantee superior quality with every purchase. Retention 15% discount on next purchase if you refer a friend. Free samples with each purchase Encourages customer to spread the word about the business. Encourages customer to buy more of our products. $4.50/person $0.46/sample

COST OF MATERIALS/DIRECT LABOR Definition of One Unit 4 oz. Can White Jasmine Pomegranate Tea Cost of Sales Per Unit Direct Labor (Labor Cost per Hour) Time (in hours) to make 1 unit Direct Labor Cost Per Unit $8.25 per hour 5 min or .08 hours $0.66 Total Direct Labor Per Unit Material Description Cost/Total Quantity Cost Per Unit ($) 3 oz. White Tea $36.50/80 oz. $1.37 0.5 oz. Jasmine Tea $41.24/80 oz. $0.26 0.5 oz. POM Pomegranate Juice $9.76/60 oz. $0.08 1 4 oz. Tin Can with Label $61.00/100 cans $0.61 1 box and packaging materials $50.00/100 boxes with materials $0.50 Total Material Cost Per Unit $2.82 Variable Costs Per Unit (shipping + handling) $1.50 $4.98

ECONOMICS OF 1 UNIT Definition of One Unit 4 oz. Can Loose Tea Selling Price per Unit $30.00 Direct Labor Per Unit $0.66 Materials Per Unit $2.82 Total COGS Per Unit $3.48 Variable Costs Per Unit (shipping +handling) $1.50 Total Cost of Sales $4.98 Gross Profit Per Unit $25.02

TIME MANAGEMENT PLAN Business Schedule for a Typical Week (Aryssa) Entrepreneurship 10 hrs. School Hours 55 hrs. Volunteer Service 4 hrs. Sleep 56 hrs. Free-Time Hours 43 hrs. Business Schedule for a Typical Week (Olga) Entrepreneurship 10 hrs. School Hours 50 hrs. Volunteer Service 3 hrs. Sleep 56 hrs. Free-Time Hours 49 hrs.

AVERAGE MONTHLY FIXED COSTS Type of Fixed Cost Monthly Cost Entrepreneurial Stipend $50.00 Utilities (cell phone, internet, electricity, gas) $99.50 Advertising (business cards, taste testing, website) $63.34 Rent (Home) $140.00 Liability Insurance ($.25M worth) $37.50 Depreciation (laptops, phone, oven, tea dispenser) $17.86 Total Monthly Fixed Costs $408.20

MONTHLY SALES PROJECTIONS Units Sold January 55 February 67 March 84 April 88 May 92 June 103 July 105 August 112 September 118 October 124 November 131 December 150 Monthly Break-Even Units 16 units Total = 1,229

PROJECTED YEARLY INCOME STATEMENT Selling Price Per Unit $30.00 # of Units Sold 1,229 Total Sales $36,870.00 Total COGS $4,276.92 Other Variable Costs $1,843.50 Total Variable Costs $6,120.40 Gross Profit $30,749.60 USAIIRD (yearly) $4,898.40 Other Costs/Unforeseen $2,500.00 Total Fixed Costs $7,398.40 Profit Before Taxes $23,351.20 Less Estimated Taxes at 25% $5,837.80 NET PROFIT $17,513.40

RETURN ON INVESTMENT RETURN ON SALES (ROS) 48% For every $1 dollar of sales, my business earned: $0.48 (ROI) 825% For every $1 dollar invested, my business earned : $8.25

Entrepreneurial hours needed for start-up START-UP INVESTMENT Entrepreneurial hours needed for start-up Wage I pay myself Total start-up time investment 24 hours $8.25 $198.00 Item Where I will buy this? Cost of Item Two Laptops Best Buy Already Owned Two Cell Phones Verizon Wireless Oven Bernie’s Inventory Internet $500.00 100 4 oz. Tins with Labels Container and Packaging Supply $61.00 100 Shipping Boxes with packing materials ULINE $48.00 4 Gallon Tea Dispenser Coffee Wholesale USA $69.65 100 Business Cards Zazzle $21.80 CASH RESERVE $1,224.60 Estimated TOTAL START-UP INVESTMENT $2,123.05

FINANCING STRATEGY FOR TOTAL START-UP INVESTMENT Source Amount Debt Equity Gift Personal Savings (already saved) $1500.00 X Relatives/Friends $623.05 Total: $2,123.05

SOCIAL RESPONSIBILITY PLAN Teassentials will donate 7% of our annual net profits to the Vitamin Angels charity. Consumers will be aware of this on our business cards and website.

BUSINESS & EDUCATIONAL GOALS -To improve our website so customers will be able to purchase items with credit cards. -To open a store to sell products by the third year. - To graduate top of our class with exceptional grades, while meeting the needs of our business. - To attain a bachelor’s degree and be accepted into an accredited medical school to begin a career in medicine.

Thank you for your consideration of Please visit our website at YOUR TASTE IS KEY, SO YOU’LL LOVE OUR TEA! Thank you for your consideration of Please visit our website at http://www.wix.com/teassentials/teassentials