Small Business Management Project

Small Business Management Project

Project—Part one

The written portion of the project will consist of three sections and will be worth a total of 75 points.  When working on the project, assume you will have $50,000 to contribute to the business.  You may elect to create a business that manufactures a new product or offers a needed service; you may not choose purchase a franchise.  Please be creative but realistic when working through the project.

This project is meant to be a business proposal to a bank to complete the funding for your business idea, so do your research carefully and be prepared for questions when your group makes its presentation at the end of the semester.

The completed project and presentations will be due, no late projects or presentations will be accepted.  Email the project to me as an attachment.  Good luck and have fun.

1. Generate three (3) potential ideas for a business. Explain the pros and cons of each idea.

2. Choose one of the ideas and create a mission statement and explain the competitive advantage(s) of your business.

3. What form of business ownership will be used for the business? Explain the reasons for your choice.

Project—Part two

1. Please explain your target market. How many customers are in the target market?  How many potential customers will take advantage of your product or service?  Are there other target markets that may be worth exploring later?  Is the target market growing or declining in size?

2. Who are your business competitors? Where are they located? What are their strengths and weaknesses?  Do they pose a threat to your business?

3. Please explain your marketing strategies. Will your strategies reach the target market?  Will the marketing strategies be cost effective and within your budget?  How will you generate publicity for the company?

4. Explain your pricing strategies. How did you determine your price?  Will the price remain constant, rise, or decline in the future?  Will your price convey an image about your product/service?  Is your pricing similar to the competition’s pricing?

Project—Part three

1. Please project your income statements for a six month period. Compile a projected balance sheet for the first day of business.  Please be prepared to explain your numbers.

2. Where will the business be located? What is this decision based upon?

3. Will you buy, lease, or build the business? Please explain.

4. Please explain the business layout. Will the building have to be remodeled to accommodate your business?  Please explain.

5. Explain your funding strategies. How much capital was contributed by each group member?  How much money are you requesting from the bank?  Do you have or will you pursue any other sources of funding?  What will you do with the money?  Be specific.