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Planning a New Business

A business plan is a written description that describes all aspects of a potential new business. It includes a one-page summary of the business idea. The next section describes the company and its product or service. The marketing plan describes how, where, and to whom the product or service will be marketed. Then, there is a legal section about how the company will be organized and run, as well as a management section that gives the background of key personnel. Finally, the financial plan describes the company’s finances and financial projections.

But before any of that can be put together, there are several important questions to answer.

Pick one of the business ideas below, and answer the questions about it on the reverse side of this page.

Company Ideas

  1. A shuttle bus service that operates after school every half hour from 3pm to 8pm. The shuttle buses would follow the same routes as the area busses. Students pay $3 for one day or buy weekly passes for $10 or monthly passes for $30.
  1. An app that consolidates all your social media. Your Snapchat, Facebook, Twitter, and Instagram feeds would all be on one screen, with similar posts grouped together and duplicate posts hidden. Filters let you zero in on the posts you are most interested in, such as the snaps of your close friends. Revenue is from advertising, as well as selling certain premium features.
  1. A backpack lock. This device doesn’t just clip the zipper shut. It actually clamps all the way around the backpack, so no one can get anything out. It’s lightweight, tough, and easy to carry around, but it keeps a Chromebook and other valuables safe. It sells for $40. The premium model ($50) comes in a variety of colors and decorative options.

Questions

  1. Who are my main competitors?
  1. Why is my product or service needed?
  1. All three products are to be marketed to Pennsbury HS students. What type(s) of students are the most likely customers for my product or service? Why?
  1. What are the costs of producing my product or service (raw materials, human resources, etc.)?
  1. What physical facilities will I need to operate my business?
  1. What equipment and materials will I need to run my business?
  1. Are there any special licenses, permits, or other legal documents I’ll need in order to operate?