It’s time for you to create a business. Let’s presume you’ll need a business plan since you’ll have to convince people to invest in your new business. Here’s your scenario: You think you can create a fashion trend by selling watch bands that fit nearly every wristwatch on the planet. You may augment your sales by also offering matching wristbands or necklaces. Your target market is both male and female.To do this, you’ll need to find a supplier or make them yourself. Describe how you’ll get or make your product.Describe how you’ll develop and get to your market. Show you’ve studied and know a lot about this potential market.Describe how you’ll fulfil orders, and whether or not you will sell through retail stores, online only, or through representatives like Mary Kay Cosmetics.Describe how you will design the initial products and then offer new products so your products don’t seem to get stale.Describe how you will try to make your products piggy-back on other products, like watches or clothing, or whether you will offer them for people with special interests like race car enthusiasts, hunters, tennis players, dog or cat lovers, etc.You will need to develop a financial plan to present to a bank for a loan, or to investors. They want hard numbers and reasonable projections. It will need to cover the first 12 to 36 months of projections, both expenses and sales. You will have to show you can make a profit at some point. When you do make a profit, you will have to show you pay taxes, but even before then don’t forget a company has to pay employment taxes and pay its share of the FICA (Social Security) taxes.You may have to figure out who is going to help you do this. You will need people and perhaps other companies, like a web hosting service, a delivery service, phone operators, a return/complaint department as well as a fulfillment department (which receives orders and ships your product). Will you have your inventory in your garage, a local warehouse, or ship directly from a manufacturer you may have chosen. Are they overseas? Will you hire a lawyer to do the paperwork to create your company? A CPA to handle your financial records and make tax filings?Will you create a corporation or will this be a sole-proprietorship or a partnership?YOUR ASSIGNMENT:Write an informal letter proposal promoting your product and describing the enterprise you are creating and how you will make it all work. Address it to your professor as if he were a potential investor or lender. Include the items above, paying attention to the detail that a banker or investor would want to see before considering making a loan to you for this enterprise.
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