Aryssa BouchardOlga Kowalewski

Grade 11Age 17

BUSINESS PROFILE

We selected this business as people in America are becoming more interested in different teas, and have their own tastes and opinions.

Type of Business: -Retail-We will provide customers with a wide arrange of homemade and customteas that they can buy online.

Legal Structure:-Partnership-We chose to be a partnership because we feel that the best way to run abusiness is by having the knowledge and resources of two people.

OPPORTUNITY

Opportunities-Increasing trend in teas and natural products.-Other tea stores don’t customize tea.-Tea has proven medical benefits.

Qualifications-Have experience and knowledge about teas.-Bilingual and currently learning a third language.-Have taken a Marketing/Entrepreneurship class.

CONSUMER PROFILE

By Location-Connecticut

By Population- Males and females aged 25 and up

By Personality-People who enjoy drinking tea-People who are willing to pay extra to have an excellent quality tea

By Behavior-People who often buy loose tea and drink it often-People who would like to purchase tea as gifts

By Income-Upper-middle to upper income families

COMPETITION

Competitive Advantage• Custom made tea to customer’s taste• Customers can seek advice about our products via the internet

Competitor Price Quality Greatest Strength

Greatest Weakness

Teavana $24.80 Excellent •Large selection•One on one customer service

•Can’t customize your own tea

The Tea Spot $19.98 Excellent •Large selection•Sells teapots and accessories

•Can’t customize your own tea•No advice given

Teascapes $18.00 Good •Customers can seek advice

•Can’t customize your own tea

MARKETING MIX

• Price: • Price reflects the quality of custom-made tea according to

customer’s personal taste• Place:

• Connecticut • Product:

• Custom made tea• Internet convenience

• Promotion:• Business cards• Website/Social networking• Tea tasting

MARKETING PLAN

Phase Method Description Cost

Awareness •Tea tasting

•Business Cards

•Word of mouth•Online Social Networking

•Weekly event located at Whole Foods.•Handed to customers at events and given with each purchase.•Customer will share with others if satisfaction is met. •Facebook and website

•Sampling Tea- $30.00/mo.•$0.22/business card•Free•Free

Purchase •Free Shipping

•Quality Products

•Customers will be aware of this on our website.•We guarantee superior quality with every purchase.

•Free

•Free

Retention •15% discount on next purchase if you refer a friend.•Free samples with each purchase

•Encourages customer to spread the word about the business.•Encourages customer to buy more of our products.

•$4.50/person

•$0.46/sample

COST OF MATERIALS/DIRECT LABORDefinition of One Unit 4 oz. Can White Jasmine Pomegranate Tea

Cost of Sales Per Unit

Direct Labor(Labor Cost per Hour)

Time (in hours) to make 1 unit Direct Labor Cost Per Unit

$8.25 per hour 5 min or .08 hours $0.66

Total Direct Labor Per Unit $0.66

Material Description Cost/Total Quantity Cost Per Unit ($)

3 oz. White Tea $36.50/80 oz. $1.37

0.5 oz. Jasmine Tea $41.24/80 oz. $0.26

0.5 oz. POM Pomegranate Juice $9.76/60 oz. $0.08

1 4 oz. Tin Can with Label $61.00/100 cans $0.61

1 box and packaging materials $50.00/100 boxes with materials

$0.50

Total Material Cost Per Unit $2.82

Variable Costs Per Unit (shipping + handling) $1.50

Cost of Sales Per Unit $4.98

ECONOMICS OF 1 UNIT

Definition of One Unit 4 oz. Can Loose Tea

Selling Price per Unit $30.00

Direct Labor Per Unit $0.66

Materials Per Unit $2.82

Total COGS Per Unit $3.48

Variable Costs Per Unit (shipping +handling) $1.50

Total Cost of Sales $4.98

Gross Profit Per Unit $25.02

TIME MANAGEMENT PLAN

Business Schedule for a Typical Week (Aryssa)

Entrepreneurship 10 hrs.

School Hours 55 hrs.

Volunteer Service 4 hrs.

Sleep 56 hrs.

Free-Time Hours 43 hrs.

Business Schedule for a Typical Week (Olga)

Entrepreneurship 10 hrs.

School Hours 50 hrs.

Volunteer Service 3 hrs.

Sleep 56 hrs.

Free-Time Hours 49 hrs.

AVERAGE MONTHLY FIXED COSTS

Type of Fixed Cost Monthly Cost

Entrepreneurial Stipend $50.00

Utilities(cell phone, internet, electricity, gas)

$99.50

Advertising (business cards, taste testing, website)

$63.34

Rent (Home) $140.00

Liability Insurance ($.25M worth) $37.50

Depreciation (laptops, phone, oven, tea dispenser)

$17.86

Total Monthly Fixed Costs $408.20

MONTHLY SALES PROJECTIONSMonth Units

SoldJanuary 55

February 67

March 84

April 88

May 92

June 103

July 105

August 112

September 118

October 124

November 131

December 150Total = 1,229

Monthly Break-Even Units

16 units

PROJECTED YEARLY INCOME STATEMENTSelling Price Per Unit $30.00

# of Units Sold 1,229

Total Sales $36,870.00

Total COGS $4,276.92

Other Variable Costs $1,843.50

Total Variable Costs $6,120.40

Gross Profit $30,749.60

USAIIRD (yearly) $4,898.40

Other Costs/Unforeseen $2,500.00

Total Fixed Costs $7,398.40

Profit Before Taxes $23,351.20

Less Estimated Taxes at 25% $5,837.80

NET PROFIT $17,513.40

RETURN ON INVESTMENTRETURN ON SALES

(ROI) 825%For every $1 dollar invested, my business earned :

$8.25

(ROS) 48%For every $1 dollar of sales, my business earned: $0.48

START-UP INVESTMENTEntrepreneurial hours needed

for start-up Wage I pay myself Total start-up

time investment

24 hours $8.25 $198.00

Item Where I will buy this? Cost of Item

Two Laptops Best Buy Already Owned

Two Cell Phones Verizon Wireless Already Owned

Oven Bernie’s Already Owned

Inventory Internet $500.00

100 4 oz. Tins with Labels Container and Packaging Supply $61.00

100 Shipping Boxes with packing materials

ULINE $48.00

4 Gallon Tea Dispenser Coffee Wholesale USA $69.65

100 Business Cards Zazzle $21.80

CASH RESERVE $1,224.60

Estimated TOTAL START-UP INVESTMENT $2,123.05

FINANCING STRATEGYFOR TOTAL START-UP INVESTMENT

Source Amount Debt Equity Gift

Personal Savings (already saved)

$1500.00 X

Relatives/Friends $623.05 X

Total: $2,123.05

SOCIAL RESPONSIBILITY PLAN

Teassentials will donate 7% of our annual net profits to the Vitamin Angels charity.

Consumers will be aware of this on our business cards and website.

-To improve our website socustomers will be able topurchase items with creditcards.

-To open a store to sellproducts by the third year.

BUSINESS & EDUCATIONAL GOALS

- To graduate top of our class with exceptional grades, while meeting the needs of our business.

- To attain a bachelor’s degree and be accepted into an accredited medical school to begin a career in medicine.

Business Educational

Thank you for your consideration of

Please visit our website athttp://www.wix.com/teassentials/teassentials

YOUR TASTE IS KEY, SO YOU’LL LOVE OUR TEA!