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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/