Financial Plan : “Bottom Line” Presented by Sheryl Nolen, CEA 4-H WebEx Houston4HCEO4 October 22, 2015

* Career & Entrepreneur Options (CEO) * Learn about running a business * Tapping into your talents * Work hard and make money * Grow your creative genius * Presentation and communication skills * Trade Show exhibit and contest * A chance to dream BIG

* Ideas - “next big idea” constantly thinking * Dreams - thoughts, images, hopes * Vision – idea and dream in great detail * Concepts-summary of the idea, how it will work Mission Statement for your Business

What are your dreams? What things do you like to do? What are you good at? What things do other people think you are good at? What would you like to be good at? Do you know why you want to be good at it? What do other people think you should do when you start working? Can you make money at your thing? Your business is defined by your thing!

Houston 4-H Career & Entrepreneur Options (CEO) Top 10 Traits of Entrepreneurs 1.Confidence 2.Persistence 3.Integrity 4.Creativity 5.Enthusiasm 6.Determination 7.Risk-taking 8.Hard-working 9.Adaptable 10.Independence Reference: You’re The Boss Lifeskills & Entrepreneurship Program/2000 YoungBiz Media by Bonnie Drew - ISBN Lesson 3. Pp What is an Entrepreneur? Have you what it takes to start a business?

1.Week 1- 9/29 “All About the Business Plan” 2.Week 2-10/3 4-H CEO Orientation Workshop 3.Week 3-10/7 Marketing 101 Introduced Incentives “Bonus Buck Plan” 4.Week 4- 10/12 Products & Services “Price It Right” 5.Week 5- 10/22 Finance Plan “Bottom Line” 6.Week 6- 11/7 4-H CEO “Boot Strap” Workshop 7.Week 7-11/9 Get ready for Trade Show 8.Week 8 -11/16 4-H CEO Business Plan Review 9.Trade Show Applications Due November 20 th 10. Dec. 5 th 9:00 am- Noon Houston 4-H CEO Trade Show and Minnow Tank at Extension Office

* Complete a Marketing Plan * Describe the product * Identify Customer needs * Calculate Cost and Profit per unit * Describe marketing strategies (distribution and promotion) * Philanthropy efforts * Calculate marketing cost * Develop a Business Card and flyer

* Marketing Plan * New logo * Sign * Business cards * Facebook marketing * Sending Christmas Cards * Philanthropy

* Packaging Supplies * Business Cards * Supplies to produce product * Cards & postage * Philanthropy 5% annual sales * Promotional samples?

* Learning to adjust and adapt to the market * Conducting a customer survey * learning from experience

* Managing money the revenue * Accounting “keeping the books” in balance * Statement of debit and credits * Balance Sheet =assets, liabilities and equity * Success of business is measured by profit * Financing getting the money needed to start or expand the business * Start up capital or seed money.

* Start Up Costs _______ Total List out all the items needed to produce the product or perform the service including supplies and marketing items * Fixed Costs per month ________ Total Utilities, advertising, salaries, insurance, rent, miscellaneous

* Revenue generated * Variable costs * Gross profit * Fixed Costs * Profit before taxes * Taxes 20% * Net Profit Calculate Return on investment =Net Profit Divided by Start up Costs X 100 = % The business has a return on investment of ____% Monthly Income Statements

* Number units can you sell in an hour? ___ Units per hour * Number units can you sell each day? ___ Units per day * Number days do you plan to sell each week? ___ days a week * Number weeks you will work each month? ___ weeks a month

Selling Price Sales per Hour Sales per Day Sales per Week Sales per Month Revenue per Month Calculate Sales per Day by multiplying units per hour by # hours you work each day Calculate Sales per Week by multiplying sales per day by # of days you work each week Calculate Sales per Month by multiplying sales per week by the number of weeks you work each month Calculate Revenue per month by multiplying sales per month by the selling price per unit

The business needs to sell ______ (#) units each month to reach the break even point. Monthly Fixed Costs Divided by Gross Profit per Unit

Total Start-Up Capital required __________ * Personal savings * Profit generated from established business * Family & Friends * Debt Financing * Equity Financing * Business grant Total Financing I am requesting $ ______________ to be used s start-up capital in the formation of my business

Financial Records * Ledger * Quick Books * Checking or Banking * Receipts * Deposits * Expenses & Bills

* Includes date * Describe the item * Debit money received * Credit money paid out * Balance AndTeens.jsp#sthash.1Am88OmL.dpuf

* Estimate expenses for the business variable costs and fixed costs * Estimated revenue from sales * Pro forma Profit & Loss = projected in future * Subtract expenses from revenue to get profit

* Complete a Financial Plan * Forecast Sales * Complete Venture Capital Request * Set up Recordkeeping system * Complete Break Even Analysis * Build the business portfolio /DrCrTChart.pdf