Financial Plan : “Bottom Line”

*Houston 4-H CEO

Presented by Sheryl Nolen, CEA 4-H

WebEx Houston4HCEO4 October 22, 2015

*Houston 4-H CEO

*Career & Entrepreneur Options (CEO)

* Learn about running a business

*Tapping into your talents

*Work hard and make money

*Grow your creative genius

*Presentation and communication skills

*Trade Show exhibit and contest

*A chance to dream BIG

*Ideas, Dreams. Visions and

Concepts

*Ideas - “next big idea” constantly thinking

*Dreams - thoughts, images, hopes

*Vision – idea and dream in great detail

*Concepts-summary of the idea, how it will work

Mission Statement for your Business

*What’s Your Thing?

What are your dreams?What things do you like to do?What are you good at?What things do other people think you are good at?What would you like to be good at?Do you know why you want to be good at it?What do other people think you should do when you start working?Can you make money at your thing?

http://www.teachingkidsbusiness.com/resource-center-whats-your-thing.htm

Your business is defined by your thing!

*Are you ready to be the Boss

Houston 4-H Career & Entrepreneur Options (CEO) Top 10 Traits of Entrepreneurs1. Confidence2. Persistence3. Integrity4. Creativity5. Enthusiasm6. Determination7. Risk-taking8. Hard-working9. Adaptable10.Independence

Reference: You’re The Boss Lifeskills & Entrepreneurship Program/2000 YoungBiz Media by Bonnie Drew - ISBN 1-56688-565-5 Lesson 3 . Pp.15-18

What is an Entrepreneur?

Have you what it takes

to start a business?

* Schedule up date

1. Week 1- 9/29 “All About the Business Plan”2. Week 2-10/3 4-H CEO Orientation

Workshop3. Week 3-10/7 Marketing 101 Introduced

Incentives “Bonus Buck Plan” 4. Week 4- 10/12 Products & Services “Price It

Right”5. Week 5- 10/22 Finance Plan “Bottom Line”6. Week 6- 11/7 4-H CEO “Boot Strap”

Workshop7. Week 7-11/9 Get ready for Trade Show8. Week 8 -11/16 4-H CEO Business Plan Review 9. Trade Show Applications Due November 20th

10. Dec. 5th 9:00 am- Noon Houston 4-H CEO Trade Show and Minnow Tank at Extension Office

*Review Assignments

* Complete a Marketing Plan

*  Describe the product

*  Identify Customer needs

*  Calculate  Cost and Profit per unit

*  Describe marketing strategies (distribution and promotion)

* Philanthropy efforts

*  Calculate  marketing cost

* Develop a Business Card and flyer

*C&D Bath Products

*Marketing Plan

* New logo

*Sign

*Business cards

* Facebook marketing

* Sending Christmas Cards

* Philanthropy

*Calculating Costs

* Packaging Supplies

* Business Cards

* Supplies to produce product

* Cards & postage

* Philanthropy 5% annual sales

* Promotional samples?

*Money Moves

* Learning to adjust and adapt to the market

* Conducting a customer survey

* learning from experience

http://bizkids.com/clip/profile-vashon-farmers-market

Be willing to change

*What is Finance? Bottom Line

*Managing money the revenue

* Accounting “keeping the books” in balance

* Statement of debit and credits

*Balance Sheet =assets, liabilities and equity

* Success of business is measured by profit

* Financing getting the money needed to start or expand the business

* Start up capital or seed money

.

http://www.teachingkidsbusiness.com/business-basics-finance.htm

*Cost of doing business

* Start Up Costs _______ Total

List out all the items needed to produce the product or perform the service including supplies and marketing items

* Fixed Costs per month ________ Total

Utilities, advertising, salaries, insurance, rent, miscellaneous

*Established business

*Revenue generated

*Variable costs

*Gross profit

*Fixed Costs

*Profit before taxes

*Taxes 20%

*Net Profit Calculate Return on investment =Net Profit Divided by Start up Costs X 100 = %The business has a return on investment of ____%

Monthly Income Statements

*Sales Forecast

* Number units can you sell in an hour? ___ Units per hour

* Number units can you sell each day? ___ Units per day

* Number days do you plan to sell each week? ___ days a week

* Number weeks you will work each month? ___ weeks a month

*Formula

Selling Price

Sales per Hour

Sales per Day

Sales per Week

Sales per Month

Revenue per Month

Calculate Sales per Day by multiplying units per hour by # hours you work each day Calculate Sales per Week by multiplying sales per day by # of days you work each weekCalculate Sales per Month by multiplying sales per week by the number of weeks you work each monthCalculate Revenue per month by multiplying sales per month by the selling price per unit

*Break-Even Analysis

The business needs to sell ______ (#) units each month to reach the break even point.

Monthly Fixed Costs Divided by Gross Profit per Unit

*Venture Capital Request

Total Start-Up Capital required __________

* Personal savings

* Profit generated from established business

*Family & Friends

*Debt Financing

*Equity Financing

*Business grant Total Financing

I am requesting $ ______________ to be used s start-up capital in the formation of my business

*Recordkeeping

Financial Records

* Ledger

* Quick Books

* Checking or Banking

* Receipts

* Deposits

* Expenses & Bills

*General Ledger

* Includes date

* Describe the item

* Debit money received

* Credit money paid out

* Balance

Business Portfolio

www.aplos.com/Guide-To-Accounting-For-Kids-AndTeens.jsp#sthash.1Am88OmL.dpuf

*Profit and Loss

* Estimate expenses for the business variable costs and fixed costs

* Estimated revenue from sales

* Pro forma Profit & Loss = projected in future

* Subtract expenses from revenue to get profit

*Assignment

* Complete a Financial Plan

* Forecast Sales

* Complete Venture Capital Request

* Set up Recordkeeping system

* Complete Break Even Analysis

* Build the business portfolio

http://www.dwmbeancounter.com/BCTutorSite/BCInsights/CheatSheet/DrCrTChart.pdf