Objective: To create a business plan that incorporates calculations you learned this semester in MTH 132.
Requirements of the business plan:
1. Introduction: Introduce your business.
• Give an overview of your business and include information on your product and/or service.
• Write a mission statement for your business.
• Give specifics about the location of your business.
• Tell about the customers your business will serve and the problem your business solves.
2. Estimate startup expenses: Research and include information on potential startup costs for your business. Such costs
may include, but are not limited to the following:
• Security deposit(s)
• Down payment(s)
• Improvements
• Equipment/supplies
• Licenses/permits
• Legal fees
• Inventory
• Advertising/marketing
3. Estimate other expenses: Research and present on the potential recurring expenses for your business. Such expenses
may include, but are not limited to the following:
• Office/workspace
• Supplies
• Utilities
• Insurance
• Inventory
• Advertising/marketing
• Communication costs
• Other
4. Payroll expenses: Calculate expenses for all employees. (Chapter 10)
• Decide how many employees you will need and whether they will be full-time or part-time.
• Determine how often you will pay your employees.
• Calculate the gross pay and total withholding tax for all employees.
5. Pricing structure: Describe the pricing, fee, subscription or leasing structure of your product or service. (Chapter 9)
• How does your product or service fit into the competitive landscape in terms of pricing—low, mid-range or high
compared to your competitors?
• How will that pricing strategy help you attract customers?
• What is your projected profit margin?
• Will you calculate the markup based on cost or selling price? Why?
• Either calculate the markup rate based on selling price or cost and show your calculations.
6. Loans/credit: Determine how much money you will need to borrow to get your business started and keep it running.
(Chapters 11-13)
• Decide which type of loan you will take out
• Research current APR’s for this type of loan
• Calculate the total amount financed
• Calculate monthly/quarterly payments
• Determine the duration of the loan
• Calculate the total interest over the life of the loan.
Extra Credit:
7. Investments: Give a detailed plan on how you will invest your money once you begin to make a profit. (Chapter 15)
Presentation:
You may choose from a variety of ways to present your business plan.
Option 1: A written report
• The report should be at least 1500 words.
• It should include tables, diagrams, graphs, etc.
• The report should include no grammatical or spelling mistakes.
• All sources should be cited.
Option 2: A video presentation
• The video should be at least 10 minutes long.
• It should include tables, diagrams, graphs, etc.
• Calculations should either be displayed on the screen during the presentation or should be turned in separately.
• A works cited page should be submitted.
Option 3: A method of your choosing.
• Other methods of presenting will be considered.
• Please send me an email requesting a different type of presentation, and we will plan a brief meeting to discuss the requirements
