Southern New Hampshire University Food Truck Business Proposal Analysis Overview You work in the Product Development Department of ACME Widget Company. To

Southern New Hampshire University Food Truck Business Proposal Analysis Overview

You work in the Product Development Department of ACME Widget Company. To incentivize innovation and creativity within the organization, ACME has announced the first annual ACME InvenTank, a contest in entrepreneurial spirit. Contestants will generate and develop their own original idea for a product or service, test the concept’s feasibility, develop a business plan and, finally, deliver a final presentation to a panel of judges with the potential of earning funding to bring the concept to life.

Directions

Part 1—Narrow It Down: Before developing a business idea, you will need to think of one unique product or service to sell. Entrepreneurship is often driven by an entrepreneur’s own passions and interests. Take some time to consider which of the business ideas you developed in your brainstorm from the previous project you would most like to pursue, and try to select something that you are passionate about. If you have decided not to pursue any of your initial ideas from the Business Idea Brainstorm, or you are struggling to develop a final idea, revisit the Business Idea Center in project resources.

Once you have narrowed your business ideas down to a single, final idea, create and submit a document in which you identify and explain your final business idea and discuss why you believe it could be a viable business concept. Also in the document, answer the first eight questions from the 20 Questions Before Starting page in project resources. Explain why you selected this business idea, and respond to each of the eight questions. As you answer these questions, you will need to make some assumptions and educated guesses. In your answers, be sure to explain your rationale for each response, and cite any research that influences your answers.

Keep in mind that the process of entrepreneurship is an iterative one. Throughout the development of your business idea, you will receive feedback and suggestions to improve its viability. You should expect your business idea to go through many changes along the way. This isn’t a bad thing; no successful business got to where it is today without reacting to feedback and adapting.

Part 2—Provide Feedback: Since creating a business plan is one of the most important aspects of entrepreneurship, ACME has planned a series of workshops to provide InvenTank contestants the opportunity to learn more about the structure and contents of a business plan. During these workshops, you will examine sample business plans for companies in various industries and identify their strengths and weaknesses.

At the beginning of the first workshop, Winnie Widget hands out a packet containing documents about formatting and writing business plans, and some of the most common mistakes made when writing business plans. Also included in the workshop packet is a Sample Business Plan for a start-up smartphone vendor, which includes the company’s pro forma income statement and breakeven analysis, and a Market Intelligence Report filled with information, data and analysis on the smartphone market and industry. Working with industry experts, ACME’s marketing team has developed this report to help you provide clear, informed feedback. You can find these documents in the project resources.

To provide effective feedback on the Sample Business Plan’s credibility, be sure to do the following:

As you read through the Sample Business Plan, pay close attention to detail, looking for any inconsistencies or errors in the plan’s logic.
Use the information in the Market Intelligence Report to help determine which aspects of the Sample Business Plan are accurate or flawed.
Review the plan’s accompanying Breakeven Analysis and Pro Forma Income Statement. Since you will need to develop a breakeven analysis and pro forma income statement for your own business, ACME has included some questions in the Business Plan Feedback Form that you will need to answer about these documents to get you thinking about the financial aspect of starting a business.
Once you have read through the Sample Business Plan, Breakeven Analysis, Pro Forma Income Statement and all other project resources, complete the Business Plan Feedback Form, answering each question completely. Be sure to provide specific examples from the plan to support your feedback.

RESOURCES

Business Plan Feedback Form

Once you have read through the Sample Business Plan and analyzed the data in the Market Intelligence Report, complete this feedback form, commenting on the elements that could use improvement and those that are working well.

***This resource is attached as a file***

Sample Business Plan

Read through this sample business plan, paying close attention to details. Keep in mind that you will be providing thorough feedback on each element of the plan, so consider what is working well and which areas could use improvement.

http://cfaresources.s3.amazonaws.com/BA%20Manageme…

Market Intelligence Report

Use this resource as a reference as you provide feedback on the credibility of the Sample Business Plan. Reference the data, information and analysis in this report in your feedback as you address elements of the Sample Business Plan.

http://cfaresources.s3.amazonaws.com/BA%20Manageme…

20 Questions Before Starting

In 50 to 100 words, answer the first eight questions in this resource.

http://web.archive.org/web/20150905190359/https://…

Example Complete Business Plan

Review this example of a well conceived business plan for a telephone sales company.

https://www.bplans.com/telephone_sales_business_pl…

Top 10 Business Plan Mistakes

Read through this list of some of the most common mistakes in business plans. As you provide feedback on the Sample Business Plan, consider whether any of these mistakes were made.

https://www.entrepreneur.com/article/81188

Creating Your Start-Up Strategy

While you are still developing ideas for your business, you will need to become acquainted with the entrepreneurial start-up process. Read pages one through six, paying particular attention to the key questions in “Entrepreneurial Management Practices” and the stages of the “Entrepreneurial Life Cycle.”‘

This is a SNHU Library resource. Consult the SNHU Library Resource Guide in project resources for instructions on how to access SNHU Library resources.

https://web-b-ebscohost-com.ezproxy.snhu.edu/ehost…

Pro Forma Income Statement (Sample Business Plan)

This pro forma income statement should be read as a part of the Sample Business Plan. Review this document before you complete the Business Plan Feedback Form.

***This resource is attached as a file***

Breakeven Analysis (Sample Business Plan)

This breakeven analysis should be read as a part of the Sample Business Plan. Review this document before you complete the Business Plan Feedback Form.

http://cfaresources.s3.amazonaws.com/BA%20Manageme…

Breakeven Analysis: How to Know When You Can Expect a Profit

Read through this resource for information about the purpose of breakeven analyses. You will be reviewing a completed breakeven analysis as a part of your feedback on the Sample Business Plan, and you will develop your own when you conduct a feasibility study.

https://www.sba.gov/business-guide/plan-your-busin…

Boundless: Pro Forma Income Statement

Read through this resource for information about the purpose and contents of pro forma income statements. Pay particular attention to the “Pro Forma Income Statement” section of this resource. You will be reviewing a completed pro forma as a part of your feedback on the Sample Business Plan, and you will develop your own when you create your business plan.

http://web.archive.org/web/20150601201032/https://…

Business Idea Center

If you are having trouble finalizing your business idea, consider revisiting this resource to review potential business concepts.

https://www.entrepreneur.com/businessideas

CfA Citation Guide

This resource helps to explain how citations should be used in CfA Projects including formatting guidelines and where to get help.

http://cfaresources.s3.amazonaws.com/General%20Res… FutureFone
Pro Forma Income Statement
(000’s)
Unit Sales
Avg. Selling Price
Gross Revenue
Cost
ofProfit
Goods
Sold Discount
Avg.
Retail
Channel
Gross
Operating Expenses
General and Administrative
Research/Design
Operations
QA/Warranty Reserve
Call Center
Retail Operations
Marketing
Sales/Distribution
Promotion/Advertising
Total Expenses
% of Head
gross count
30%
50%
Year 1
10,000
$99.00
$990,000
$297,000
$495,000
$198,000
Q1
1,000
$99.00
$99,000
$29,700
$49,500
$19,800
Q2
2,000
$99.00
$198,000
$59,400
$99,000
$39,600
4.0%
3.0%
6
8
$39,600
$29,700
$3,960
$2,970
$7,920
$5,940
3.0%
2
35
12
$29,700
1,880
704
$2,970
470
176
$5,940
470
176
5
900
250
$102,734
225
50
$10,821
225
50
$20,721
Income Before Taxes
Taxes (25% effective rate)
25%
$95,266
$23,817
$8,979
$2,245
$18,879
$4,720
NET PROFIT
7.2%
$71,450
$6,734
$14,159
Q3
3,000
$99.00
$297,000
$89,100
$148,500
$59,400
Q4
4,000
$99.00
$396,000
$118,800
$198,000
$79,200
% of Head
gross count
28%
50%
Year 2
100,000
$99.00
$9,900,000
$2,772,000
$4,950,000
$2,178,000
Q1
10,000
$99.00
$990,000
$277,200
$495,000
$217,800
Q2
20,000
$99.00
$1,980,000
$554,400
$990,000
$435,600
Q3
30,000
$99.00
$2,970,000
$831,600
$1,485,000
$653,400
$11,880
$8,910
$15,840 3.0%
$11,880 2.0%
12
8
$297,000
$297,000
$29,700
$19,800
$59,400
$39,600
$89,100
$59,400
$8,910
470
176
$11,880 3.0%
470
176
4
75
24
$297,000
3,700
1,408
$29,700
925
352
$59,400
925
352
$89,100
925
352
225
50
$30,621
225
100 12.0%
$40,571
15
2,700
$1,188,000
$2,086,808
675
$118,800
$199,952
675
$237,600
$397,952
675
$356,400
$595,952
$28,779
$7,195
$38,629
$9,657
25%
$91,192
$22,798
$17,848
$4,462
$37,648
$9,412
$57,448
$14,362
$21,584
$28,972 0.7%
$68,394
$13,386
$28,236
$43,086
Q4
40,000
$99.00
$3,960,000
$1,108,800
$1,980,000
$871,200
% of Head
gross count
25%
50%
Year 3
195,000
$99.00
$19,305,000
$4,826,250
$9,652,500
$4,826,250
Q1
40,000
$99.00
$3,960,000
$990,000
$1,980,000
$990,000
Q2
45,000
$99.00
$4,455,000
$1,113,750
$2,227,500
$1,113,750
Q3
50,000
$99.00
$4,950,000
$1,237,500
$2,475,000
$1,237,500
Q4
60,000
$99.00
$5,940,000
$1,485,000
$2,970,000
$1,485,000
$118,800 2.8%
$79,200 2.0%
24
10
$530,888
$386,100
$108,900
$79,200
$122,513
$89,100
$136,125
$99,000
$163,350
$118,800
$118,800 2.0%
925
352
6
100
32
$386,100
5,000
1,944
$79,200
1250
486
$89,100
1250
486
$99,000
1250
486
$118,800
1250
486
675
$475,200 12.0%
$793,952
25
4,500
$2,316,600
$3,631,132
1125
$475,200
$745,361
1125
$534,600
$838,174
1125
$594,000
$930,986
1125
$712,800
$1,116,611
25%
$1,195,119
$298,780
$244,639
$61,160
$275,577
$68,894
$306,514
$76,629
$368,389
$92,097
$57,936 4.6%
$896,339
$183,479
$206,682
$229,886
$276,292
$77,248
$19,312
Innovate Like an Entrepreneur, Workshopping
Business Plan Feedback Form
Business Plan Feedback Form
Once you’ve read through both the Sample Business Plan and Market Intelligence Report,
answer all of the below questions, providing thorough feedback on the viability of each element
of the plan. Be sure to explain your answers, providing your reasoning and, where appropriate,
evidence from the Market Intelligence Report for your answer.
1. Company Description: Is the description of the company clear? Does the business plan
give a clear enough sense of the company’s purpose?
2. Company Goals: Does the plan outline clear goals for the company? If so, what are
they? Do these goals seem reasonable? Why or why not?
3. Industry: Based on your research using the Market Intelligence Report, does this
business plan accurately describe trends in the industry?
4. Products and Services: What product or service is being offered? Is the product or
service clearly described?
5. Competitive Advantage: According to the business plan, what is the company’s
competitive advantage over competing firms? Do you think that the company has
adequately set itself apart from the competition? Why or why not?
6. Benefit: Does the plan effectively explain the benefit that the product offers to its
users? Is the benefit great enough for customers not to buy from a competitor instead?
7. Market Research: Does the plan present a substantial amount of market research to
support the business model? Is any key research omitted?
© Copyright 2015 College for America at Southern New Hampshire University. All rights reserved.
Innovate Like an Entrepreneur, Workshopping
Business Plan Feedback Form
8. Competition: Does the business plan provide a thorough analysis of the company’s
competition? Is the product or service distinguished adequately from the competition?
Why or why not?
9. Marketing: Does the business plan contain a reasonable marketing strategy given the
marketing budget? Is the marketing budget sufficient to earn the projected revenue?
Why or why not?
10. Breakeven Analysis: How many units will need to be sold for the company to break
even?
11. Pro Forma Income Statement: What are the sales projections for each of the first three
years of operation? Do sales revenue projections in the pro forma income statement
seem reasonable? Why or why not?
General Questions:
1. Overall, what is your assessment of this business plan? Does this company seem viable
and capable of competing successfully in its current state?
2. What three areas do you believe could use the most improvement in this plan? Explain
why.
3. What do you believe are the strongest areas in the plan?
© Copyright 2015 College for America at Southern New Hampshire University. All rights reserved.

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