B@by B4 Me

transcript

Shaquiesha DavisSophmore ;10th

Created by Adapted for

The Problem

• The Significant Problem in the MarketAnxiety of leaving the child with a strangerSingle working mom

• The Size of the ProblemAnyone with children under the age of 18

116 million households 12.9 million one-parent households

Source:2010 us census fact finder

• A mobile phone app that provides:• A way for parents to oversee

caregivers activities• A mobile emergency contact list• Easy communication for parents and

caregivers through text and video.• No camera necessary to install• A real time chart update – update

from care provider about your child sent directly to your phone

The Solution: Baby b4 Me

Mission Statement & Business Profile• Mission Statement

• To give a sense of knowing all the time and help working parents become more organized and creative .

Type of BusinessBaby b4 Me is a retail business because you have

to pay to download it.

Legal StructureBaby b4 Me is a sole proprietorship due to the

ease of set up and because I can keep all the profits.

Business Idea & Qualifications Briefly describe the inspiration for your idea

• I want to do this because I know being a baby sitter I’m very nervous when sitting a child for the first time. I know that it is different with every parent so I don’t know what to expect

I’m qualified to run this business because:

I have experience in child care

I am learning how to make mobile application

I am taking an entrepreneurship class to learn how to write a business plan

Market Analysis

Industry Name

Productivity software publishing market

Industry Size $48 billion

Total Population

Chicago, IL 60608

Target Market Single working adults both male and female with children under the age of 18

Potential Market Size

Out of 20 parents surveyed, 15 parents said they would use my product.

92,472

10,374

13,833

Total Population

Target Market

Potential Market Size

Target Market Segment Demographics

20 to 32 year old females, working, with a college degree. Making about 30,ooo a year, single, with one or more children.

Geographics Most likely live, work, go

to school, and shop in the city.

Psychographics My consumers don’t have

much free time but, if they did have any they would spend it with their family

Buying Patterns These consumers are

constantly spending money on how to make things better for their child/children. Most of the consumers are always looking for a sale to stretch their money. These people like to keep up with the latest brands.

Competitive Advantage

Baby b4 me Nanny Cam

Summer Infant 02000

Baby Touch Digital Video

Monitor

Factors

Quality of Product/Service

Location

Reputation/Brands

Unique Factors/Knowledge

$180.00 $195.00

No battery required

Expensive and limited

functions

Battery doesn’t last

Has a real time chart up

date a support net

list and video texting

hidden video camera system,

power supply, and a RCA

Pan, scan, and zoom in

on baby’s room with

one touch of the screen

App Store/Online

web site

Sold Online Sold Online

New to market

Well know and used

#2 in baby monitors

Marketing Mix

People Product Place Price Promotion

Single parents Advertise on sittercity.com which is a web site that connects parents and baby sitters.

Online and App store

Allows parents to have a peace of mind away for their children.

$9.95 for a one time download.

Promotional Mix

Issue press releases for parenting blogs

Advertising

Publicity

Public Selling

Technology

Total Monthly Promotional Expense

Flyers and demos at daycares

Use social network to communicate with potential customers, website

$15.00

$42.00

$15.00 Post ads on social networks and sittercity.com

Promotional Expense MonthlyAmount

$12.00

Marketing Plan for Target Customer

Method 1:post ads on social

networks

Method 2: issues press releases

for parenting blogs

Method 3:Pass out flyers and do presentations at daycares

Method 4:Discounts on and free trial on any new releases

Cost of Materials/LaborMaterials

Material Description Cost/Total Quantity Cost per Unit

--- --- ---

Total Material Cost per Unit ---

LaborLabor Cost per

HourTime (in Hours)

to Make One UnitLabor Cost per

$8.00 .25 $2.00

Total Labor Cost per Unit $2.00

COGS (per Unit)

Economics of One Unit

Selling Price (per Unit) $9.95

COGS (per Unit) $2.00

Other Variable Expenses (per Unit) ---

Total Variable Expenses (per Unit) $2.00

Contribution Margin (per Unit) $7.95

Description of One Unit of Sale:

One download of my app on my web site

Average Monthly Fixed Expenses

Fixed ExpenseAverage Monthly

Expense

Insurance $100.00

Advertising $42.00

Depreciation (computers) $27.78

Utilities (internet, Electric, Telephone)

$300.00

App store subscription fee $8.25

Website costs (server, domain name)

$200.00

Total Average Monthly Fixed Expenses

$678.03

Monthly Sales ProjectionsFirst Year

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Units So

ldTotal Units

Projected Yearly Income StatementFirst Year

A Selling Price per Unit $9.95

B Number of Units Sold 2,304

C Total Sales $22,924.80

D Variable Expenses $4,608

E Contribution Margin $18,316.80

FFixed Operating

Expenses$8,136.36

G Pre-Tax Profit $10,179.64

H Taxes @ 15% $1,526.95

I Net Profit $8,652.69

Start-Up InvestmentStart-Up Expenditures

Item Where Will I Buy This? Cost

Mac desktop computer

On-line $1,199.00

Total Start-Up Expenditures $1,199.00

Cash ReservesEmergency Fund $1,000.00

Reserve for Fixed Expenses $4,508.34

$6,707.34Total Start-Up Investment

Monthly Break-Even Units

In an average month, the company will begin to make a profit after selling

units.85

Fixed exp. $678.03

Contribution margin $7.95

= Break – Even Units 85

ROS & ROI

ROS: Return on Sales

Formula:

For My Business: Dollar

Equivalent:$0.38

Annual Net profitX100 = ROS%

$22,924.80X100 =

ROI: Return on Investment

Formula:

For My Business: Dollar

Equivalent:$1.29

Annual Net profit

Start-up investmentX100 = ROI%

$8652.69

$6707.34X100 =

Total sales

$8,652.69

Financing Strategy

Source Amount Debt Equity Gift

Personal Savings

$107.34

Relatives/Friends $3,000 --- $2,000 $1,000

Investor $3,600 --- $3,600

Partner(s) --- --- ---

Totals$6,707.3

4 --- $5,600 $1,000

$6707.34Total Start-Up Investment

How to Scale Our Business • How will our company be expanded?

• Allow users to be able to connect through the website• Partner with day care businesses• Create an app for the Ipad

• As you grow your business, list 2-3 additional ways you can make money.

• Q&A for babysitters and mothers at home on my website• Offer customers to upgrade to a new version of the app that

contains multiple functions, activities and capabilities• Offer warranties for the products to customers

• How will you use technology to enhance/grow your business?

• I would need a computer with a lot of space to allow all the data to come through.

Technology Snapshot

• An example of my mobile application:

Business Responsibility& PhilanthropyBusiness Responsibility

• Offer a discount to low income families• Give business discounts to daycares• Provide around the clock customer service

Philanthropy• I am planning on giving one percent of my

business’s profit to an local shelter for children and mothers.

Time-Management PlanSchedule for a Typical Week

Total Hours in a Week = 168

0 20 40 60 80

School

New Business

FreeTime

Business & Education GoalsI need to start working

on making my application.

To improve and maintain my product I will always take in criticism and make corrections to make my application better.

Develop computer programming and marketing skills

One person I could seek out as a mentor is Mr. Johnson, my computer science teacher

Business Personal

Grow my business to an international brand

Continually improve and expand my business to meet consumer demand

I am planning on running my business for as long as I can.

My business can prepare me for my future career as a

Peace of mind is one tap awayCreated by Adapted for