SHARK TANKSPRING 2014 Economics

How it will be graded• 60% Business Plan• 40% Presentation

BUSINESS PLAN• 1. What are you going to make, who is going to buy it, why will it work in today’s economy? • 2. Is there an existing business that has done this already? Why is yours better, different or suited for your market? • 3. What would be a good location choice and why? What type of consumer are you targeting? Where do they shop?

Explain… • 4. Find a real place that is on the market, its price, sq ft, and address. Include photos in your ad. • 5. How much would you charge for your product or service? What is your cost, markup% and projected annual profit? • 6. How would you advertise it? Describe the way you would advertise, how much it would cost and a sample. • 7. How will the profits be shared? Goes with the type of business you selected. What are your payout percentages? • 8. Will your business have to pay taxes? Will you have individual income taxes? • 9. How are you going to fund it? Loans? A silent partner? A venture capitalist? Going Public? • 10. What is the collateral going to be? What will you risk? • 11. Will you need workers? How many workers? Are you the manager? Provide a sample schedule for your

employees. • 12. What legal paperwork or documents are needed to get started? Sole Proprietorship, Partnership or Inc.? • 13. Does it require any certifications or licensing? TABC? HVAC? ATF? • 14. Add more stuff that I couldn’t think of….sell this thing!

ANSWER THE FOLLOWING QUESTIONS

Business Plan RubricCATEGORY 4 3 2 1

Organization Information is very organized with well-constructed paragraphs and subheadings.

Information is organized with well-constructed paragraphs.

Information is organized, but paragraphs are not well-constructed.

The information appears to be disorganized. 8)

Sources All sources (information and graphics) are accurately documented in the desired format.

All sources (information and graphics) are accurately documented, but a few are not in the desired format.

All sources (information and graphics) are accurately documented, but many are not in the desired format.

Some sources are not accurately documented.

First Draft Detailed draft is neatly presented and includes all required information.

Draft includes all required information and is legible.

Draft includes most required information and is legible.

Draft is missing required information and is difficult to read.

Paragraph Construction All paragraphs include introductory sentence, explanations or details, and concluding sentence.

Most paragraphs include introductory sentence, explanations or details, and concluding sentence.

Paragraphs included related information but were typically not constructed well.

Paragraphing structure was not clear and sentences were not typically related within the paragraphs.

Internet Use Successfully uses suggested internet links to find information and navigates within these sites easily without assistance.

Usually able to use suggested internet links to find information and navigates within these sites easily without assistance.

Occasionally able to use suggested internet links to find information and navigates within these sites easily without assistance.

Needs assistance or supervision to use suggested internet links and/or to navigate within these sites.

Amount of Information All topics are addressed and all questions answered with at least 6 sentences about each.

All topics are addressed and most questions answered with at least 5 sentences about each.

All topics are addressed, and most questions answered with 4 sentence about each.

One or more topics were not addressed.

Quality of Information Information clearly relates to the main topic. It includes several supporting details and/or examples.

Information clearly relates to the main topic. It provides 1-2 supporting details and/or examples.

Information clearly relates to the main topic. No details and/or examples are given.

Information has little or nothing to do with the main topic.

CATEGORY 4 3 2 1Background Background does not detract from text or

other graphics. Choice of background is consistent from card to card and is appropriate for the topic.

Background does not detract from text or other graphics. Choice of background is consistent from card to card.

Background does not detract from text or other graphics.

Background makes it difficult to see text or competes with other graphics on the page.

Originality Presentation shows considerable originality and inventiveness. The content and ideas are presented in a unique and interesting way.

Presentation shows some originality and inventiveness. The content and ideas are presented in an interesting way.

Presentation shows an attempt at originality and inventiveness on 1-2 cards.

Presentation is a rehash of other people's ideas and/or graphics and shows very little attempt at original thought.

Content - Accuracy All content throughout the presentation is accurate. There are no factual errors.

Most of the content is accurate but there is one piece of information that might be inaccurate.

The content is generally accurate, but one piece of information is clearly flawed or inaccurate.

Content is typically confusing or contains more than one factual error.

Text - Font Choice & Formatting Font formats (e.g., color, bold, italic) have been carefully planned to enhance readability and content.

Font formats have been carefully planned to enhance readability.

Font formatting has been carefully planned to complement the content. It may be a little hard to read.

Font formatting makes it very difficult to read the material.

Sequencing of Information Information is organized in a clear, logical way. It is easy to anticipate the type of material that might be on the next card.

Most information is organized in a clear, logical way. One card or item of information seems out of place.

Some information is logically sequenced. An occasional card or item of information seems out of place.

There is no clear plan for the organization of information.

Presentation Time Presentation is 7 minutes long Presentation is 6 minutes long Presentation is 4-5 minutes long Presentation is 1-4 minutes long

Preparedness Student is completely prepared and has obviously rehearsed

Student seems pretty prepared but might have needed a couple more rehearsals.

The student is somewhat prepared, but it is clear that rehearsal was lacking.

Student does not seem at all prepared to present.

PowerPoint Presentations

CATEGORY 4 3 2 1Required Elements The poster includes all required elements

as well as additional information.All required elements are included on the poster.

All but 1 of the required elements are included on the poster.

Several required elements were missing.

Graphics -Clarity Graphics are all in focus and the content easily viewed and identified from 6 ft. away.

Most graphics are in focus and the content easily viewed and identified from 6 ft. away.

Most graphics are in focus and the content is easily viewed and identified from 4 ft. away.

Many graphics are not clear or are too small.

Graphics - Relevance All graphics are related to the topic and make it easier to understand.

All graphics are related to the topic and most make it easier to understand.

All graphics relate to the topic. Graphics do not relate to the topic.

Content - Accuracy All content throughout the presentation is accurate. There are no factual errors

Most of the content is accurate but there is one piece of information that might be inaccurate.

The content is generally accurate, but one piece of information is clearly flawed or inaccurate.

Content is typically confusing or contains more than one factual error

Title Title can be read from 6 ft. away and is quite creative.

Title can be read from 6 ft. away and describes content well.

Title can be read from 4 ft. away and describes the content well.

The title is too small and/or does not describe the content of the poster well.

Graphics - Originality Several of the graphics used on the poster reflect a exceptional degree of student creativity in their creation and/or display.

One or two of the graphics used on the poster reflect student creativity in their creation and/or display.

The graphics are made by the student, but are based on the designs or ideas of others.

No graphics made by the student are included.

Presentation Presentation is 7 minutes long Presentation is 6 minutes long Presentation is 4-5 minutes long Presentation is 1-4 minutes long

Preparedness Student is completely prepared and has obviously rehearsed

Student seems pretty prepared but might have needed a couple more rehearsals

The student is somewhat prepared, but it is clear that rehearsal was lacking

Student does not seem at all prepared to present.

TRIFOLD POSTER PRESENTATION

DOING YOUR HOMEWORK• The following slides are going to be your biggest asset

in helping you develop your product or business.

ANALYZE THE MARKET• Consider which segment of the local (and/or

international) population will be seeking to use your products or services. This needs to be more than mere guesswork and involves doing accurate and intelligent research. You need to analyze secondary research collected by outside observers, as well as getting primary research that you collect yourself, with your own methods and observations.

ANALYZE THE MARKET• Is there a viable market for the product or service you

want to sell?• How old are your potential customers?• What do they do for a living?• Is your product or service attractive to a particular

ethnic or economic population?• Will only wealthy people be able to afford it?• Does your ideal customer live in a certain type of

neighborhood or area?

Establish the size of your potential market.

• It's important to be as specific as possible in regard to your market and your product. If you want to start a soap business, for example, you may believe that every dirty body needs your product, but you can’t start with the entire world as your initial market. Even if you’ve developed such a universally needed item as soap, you need to identify a smaller, more targeted customer group first, such as children under eight who might like bubblegum scented bubble bath, or soap made for mechanics.

Establish the size of your potential market.

• How many car mechanics are in need of soap in any given community?

• How many children in the United States are currently under the age of eight?

• How much soap will they use in a month or a year?• How many other soap manufacturers already have a

share of the market?• How big are your potential competitors?

Identify company needs• What will you require to get started? Whether you

want to buy an existing company with 300 employees or start your own by adding an extra phone line to your home office desk, you need to make a list of the materials you’ll need. Some may be tangible, such as five hundred file folders and a large cabinet in which to store them all. Other requirements may be intangible, such as time to create a product design or to do market research on potential customers.

Prepare product samples. • If you’re going to build a better mousetrap, you may

have constructed a prototype out of used toothpaste tubes and bent paperclips at home, but you’ll need a sturdier, more attractive model to show potential investors. What exactly will your mousetrap look like? What materials will you need? Do you require money for research and development to improve on your original toothpaste tube and paper clip construction? Do you need to hire an engineer to draw up accurate manufacturing designs? Should you patent your invention? Will you need to investigate federal safety standards for mousetraps?

Research possible locations for your business.

• Call a real estate broker and look at actual retail spaces in the neighborhood where you’d like to open your restaurant. Make a chart of the most expensive and least expensive sites by location and square footage. Then estimate how much space you require and how much money you’ll need to allow for rent.

Determine your start-up cost.•  Make a list of all the tangible and intangible resources you need to get

your business going. The total estimated price of all of these items will become your start-up cost whether you’re buying highly sophisticated computers or simply installing a new telephone line on your desk. If there’s any item in your estimates that seems unreasonably high, research other alternatives. But keep in mind that it’s better to include every element you truly need along with a reasonable estimate of the cost of each item, so you don’t run out of money or default on your loans.

Be honest and conservative in your estimates, but also be optimistic.Don't aim for the best of everything at the beginning. You can forgo the expensive trimmings of an office of a more well-established company and stick to the basics at the beginning. Get what is affordable, works and is actually needed and don't buy frills.

Put yourself in the shoes of potential investors.

• Ask yourself, “If I were going to invest X amount of dollars into a concept or idea, or even a product, what would I want to know?” Gather as much helpful and credible information as you can. Depending on your product, you may need to search long and hard for relevant information.

Identify potential investors.• Banks and other funding sources don’t lend money

because people with interesting business ideas are nice. They follow specific guidelines, such as the Risk Management Association (R.M.A) database, which are designed to ensure that they will make money by investing in or lending to your business. Lenders will typically look to the company's Capital, Capacity, Collateral, Conditions, and Character or what is known as the 5C's of lending when underwriting a loan. You'll need to have covered all these bases well before seeking funding.