Transcript Slide 1
Samantha Figueroa & Marisa Stolting
Grade 11
Age 16 & 17
Mission Statement
will provide active diabetics with a customizable band
that will secure their insulin pumps. This will allow our customers
security and freedom.
Opportunity
300,000 people, worldwide that currently use an insulin pump
60,000 from USA
We plan to expand our product line (i.e. pockets for asthma pumps,
etc.)
Type of Business
Retail
is a business which provides active
diabetics with a customized band that secures
and protects their insulin pump while engaging
in any physical activity
Legal Structure
Partnership
Share the finances
Share responsibilities
Share the time
We’re qualified to run this business because:
One partner has been a part of our target market for
13 years
We will have completed an Embroidery/Art class
We’ve completed a Marketing and Entrepreneurship
course
Market Analysis
Industry Name
Medical Equipment & Supplies Manufacturing
Industry Size
$85 billion
Total Population
U.S. population of people using
insulin pumps
Total Population
60,000
Target Market
Target Market
Active Males and Females ages 5-24
that use insulin pumps
15,420
Potential
Market
Potential Market
90% of our target market we
surveyed said they would be willing
to purchase a customized body band
online
13,878
Demographics
Active Males and Females
Ages 5-24
Psychographics
Active diabetics who do not
allow their medical situation
to impact their physical
activity
Geographic's
United States
Buying Patterns
Willing to spend money on
customizable bands to show
their individuality while
providing safety and security
Pump Wear
Inc.
Bands 4 Life
$17.99$44.99
$10.00$24.00
$19.99
Quality of
Product/Service
Satisfactory
Great
Excellent
Location
Online
Online
Online
Reputation/Brands
Good
Great
Excellent
Unique Factors/
Knowledge
Pocket Bands
Kid Oriented
Customizable
Factors
Price
Active Males and
Females ages 5-24
People
Product
Customizable
body bands to
cover and secure
insulin pumps
•Word of mouth
•Business Cards
•Website/Social
Networks
Online
Place
Price
Competitive
Promotion
Promotional Expense
Advertising
Business Cards
Monthly
Amount
$12.50
Publicity
Facebook, Twitter, Website, Word of Mouth
$0.00
Personal
Selling
Wear our product publicly
$0.00
Sales
Promotion
For the month of November 20% discount
Total Monthly Promotional Expense
$50.00
$62.50
Description of One Unit of Sale: 1 Embroidered Arm Band
Materials
Material Description
Cost/Total Quantity
Sewing Thread
Embroidering Thread
Spandex Fabric/Body Bands
Packaging Boxes
Cost per Unit
$47.37/52 colors(400
yards)
$0.91
$ 99.99/60 pieces
$1.67
$5.79/9 meters
$0.64
$22.92/50 boxes
$0.46
Total Material Cost per Unit
$3.68
Labor
Labor Cost per Hour
Time (in Hours) to Make
One Unit
$8.25
3min or .05/hr
$0.41
Total Labor Cost per Unit
$0.41
COGS (per Unit)
Labor Cost per Unit
$4.09
Description of One Unit of Sale: 1 Embroidered Arm Band
Selling Price (per Unit)
$19.99
(plus shipping and handling)
COGS (per Unit)
$4.09
Other Variable Expenses
$0.00
Total Variable Expenses (per Unit)
$4.09
Contribution Margin (per Unit)
$15.90
Fixed Expense
Average Monthly Expense
$280.00
Salary
Advertising
$62.50
Depreciation (Cell Phone, Computer, Sewing/
$29.00
Utilities
$50.00
Embroidery Machine)
Rent
(Gas, Electric, Telephone)
(From home)
Total Average Monthly Fixed Expenses
$20.00
$441.50
Total Hours in a Week = 168
93
Free Time
50
School
25
New Business
0
50
Hours
100
Total Units
Sold
Units Sold
781
200
150
100
50
0
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Monthly Fixed Expenses
=
Monthly Break-Even Units
Contribution Margin per Unit
$441.50
$15.90
=
38 Monthly Break-Even
Units
In an average month, the company will begin
28
to make a profit after selling
units.
Selling Price per Unit
$19.99
Number of Units Sold
781
$15,612.19
Total Sales
Variable Expenses
$0.00
$15,612.19
Contribution Margin
Fixed Operating Expenses
$5,298.00
$10,314.19
Pre-Tax Profit
Taxes @ 15%
Net Profit
$1,547.13
$8,767.06
Start-Up Investment
Start-Up Expenditures
Item
Where Will I Buy This?
Cost
DBA
New Britain, CT
$10.00
Partnership Agreement
Weber & Myers, LLC
Laptop/Cell Phone
Best Buy/Sprint
Art/ Embroidery class
Joanne Fabrics
$45.00
Sewing & Embroidery
Machine
Joanne Fabrics
$900.00
Sewing & Embroidery
Thread
Ali Express
Spandex Fabric
Ali Express
Shipping/Packaging Boxes
Amazon.com
$150.00
Already own
$150.00
Total Start-Up Expenditures
Emergency Fund
Reserve for Fixed Expenses
Total Start-Up Investment
$6.00
$22.92
$1,284.00
$642.00
$1,324.50
$3,250.50
ROS: Return on Sales
For My Business:
$8767.06
$15,612.19
X 100 = 56%
Dollar
Equivalent = $0.56
ROI: Return on Investment
For My Business:
$8,767.06
$3,250.50
X 100 =270%
Dollar
Equivalent = $2.70
Total Start-Up Investment
Source
Amount
Personal Savings
$3,250.50
Relatives/Friends
$0.00
Totals
$ 3,250.50
$ 3,250.50
Debt
Equity
Gift
Philanthropy
will donate 5% of our net profits to the
Ronald McDonald House Charities in New Haven, CT.
Business Responsibility
We will make our customers aware of this cause by
having the logo on our website.
Short-Term
To get a website up and
running
Long-Term
Business
To move the business out of
the house and into a store
front
Take a class to learn how to
promote our business better.
• We hope to double our sales
in the second year
Personal
To graduate from SMSA
and get accepted to the
college of our choice
S: Have a secured job in
the Business field
M: Have 4 more years left
to become an
Endocrinologist
Thank you for your consideration.
Our website is currently under construction:
http://www.pumpitup-bodybands.webs.com/