Introduction

One way to start learning about how businesses operate in the economy is to actually develop a business idea and "pitch" it to potential investors for financial support. You will consider what it might take to start a "for-profit" enterprise from the ground-up.

Note: You WILL be considering different ideas that might become a good product or service. Almost anything can be considered. I am only asking that you keep your ideas REASONABLE, POSSIBLE, and APPROPRIATE.

Objective The purpose of this activity is for you to get a "feel" for some of the analysis and decision-making that characterize business operations. As an entrepreneur, you will confront basic issues of starting a business, including determining the type of business organization, product development, marketing, and financing.

Overview of the Process

1. Business Organization: Decide what type of business you want to run (sole proprietorship or partnership), delegate responsibilities, and choose a company name/logo.
2. Market Research: Generate ideas for a possible product/service, identify "target" consumers, assess demand and earnings potential, and develop a marketing plan (who are you going target and how are you going to reach them-in other words: advertising.).
3. Cost Analysis: Research and estimate the costs of production and pricing.
4. Ground Rules

• You may NOT market any products/services related to the following: sex, drugs, gangs, and alcohol. Anything not school appropriate. Disciplinary action may be taken if an inappropriate choice is made so please check with your teacher if you are unsure.
• If your business involves a PRODUCT, your company must develop a product to which you have ADDED VALUE. If it is a SERVICE, you must show how it is different from everything else out there.

Business Report Questions (Written Work)

In order to receive full credit, the following must be answered with a reasonable amount of detail.

1. What is the name of your business, and why did you choose it? Create and include a picture/copy of a logo of your design with this answer.
2. List the company's owners (you and, if applicable, your partners) and their roles, jobs and responsibilities. For example: Who is the president, finance manager, marketing manager, and/or production manager? These can be people you know like family or friends or people you think would be good in these positions. Please include the duties of each (advertising, personnel, sales, customer service, etc.).
3. What type of business organization have you formed (sole proprietorship or partnership) and why did you choose this form of organization? What are the advantages and disadvantages of your type of business organization?
4. What type of product/service are you proposing to sell (What exactly are you doing)? Why? Describe the product/service. Include a photo or drawing of your product(s) and/or the equipment needed to carry out your services.
5. If you are proposing to sell a product: How did you add value to your product? If you are proposing a service: How is your service different from all of the other similar services (your competition) out there?
6. What variety of products did you brainstorm to sell? In other words, what did you consider doing before you settled on your final idea?
7. What specific land, labor, and capital will you need to produce, sell and distribute your product?
8. Where and how will your product be PRODUCED? Where will you primarily SELL your product?
9. If you were to decide to go forward with this idea and start an actual, on-going business, what steps would you need to take? What government approvals are necessary (Business licenses, environmental regulations)?
10. What kind of market research could you perform?
11. In what kind of market structure will your company compete? Is it a market, monopolistic competition, oligopoly or monopoly? What are the characteristics and barriers to entry in your market structure?
12. If you will face some competition, who or what is your competition?
13. Explain how you set the price for your products/services.
14. Describe your customer base, or target. In other words, what is the age, gender, personality...of your ideal customer?
15. What will you use for advertising? (Some type of commercial; either a radio commercial, television/YouTube commercial or print advertisement for your company or your products/services, or some other idea). Explain the strategy behind your advertisements/commercials.
16. Include a "detailed" financial report that shows your estimated revenues and costs. In other words, what do you estimate it will cost to start this thing? Give some details; break down the "major" costs. This can be accomplished through some minor research on the Internet, through some short interviews with business owners or possibly even with your boss at work or parents. Also include an estimate of how much you think you can bring in (revenue) with this idea. You can "guesstimate" this from your market research (see number ten above).
17. How much money will you need to start the business?