Read: Shark Pond is a Rotary service project in the form of an entrepreneur pitch show like Shark Tank…but friendly. Budding entrepreneurs are trained and then “pitch” (present) their business ideas to Rotarian guest judges who award them with start up grants to fund their business. The show takes place over video conferencing. Watch the video below and think about what the sponsors might be looking for when choosing an entrepreneur to support.
Discuss: Why do you think the sponsor in the video (Rich) choose to fund this entrepreneur (Agnes) instead of one of the other entrepreneurs who pitched at the event?
Your Business Presentation
Read: Next week you will be asked to give a 5 minute presentation on your business. Pretend you are making this presentation to a group of investors. You can decide how to organize and deliver your presentation, but it needs to include the following items:
- The unmet customer need that you will solve
- The service or product you will offer
- Your competitive advantage that is hard to copy and makes you different
- Your target customers
- Your plan for finding customers and selling to them
- How exactly will you spend the loan money
- Evidence that your business can be profitable (past sales)
- Next steps for your business
Homework Assignment:
Create your own business proposal using the Business Plan Template found at the link below. Save a copy to your phone or computer. Then answer the questions about your own business. Finally, email it to your area supervisor (class leader) so they can give you helpful suggestions and make sure it is complete. https://docs.google.com/file/d/1JaY6CHGextM0Sl3mMRmNPR7tyg_PK9H1/edit?usp=docslist_api&filetype=msword
An EXAMPLE of a good written business proposal is shown below:
EXAMPLE: Laundry Service Business Plan
By Richard Awuku of Ashimain, Ghana
Describe your business: Laundry Services, (washing and ironing every kind of garments). I have 85 regular customers. If given a grant, I will buy a washing machine combined with a dryer, (high capacity 18kg) for 9500ghc ($950 USD). This will help me get my work done faster and also because I don’t have a dryer now and the washing machine am using now is 13kg, so I am not able to work on comforters (duvets). Every month I get more than 90 duvets and always I pushed them to competitors with such facilities and they take 80 percent of the charges. This alone will add an additional $630 dollars in net income.
For every $1.45 in revenue the business spends $.82 in expenses which leaves $0.63 in net income (44% margin) after all expenses including self salary.
2022 Income Statement (with loan repayment added to show impact to financials).
MISSION
My mission is to make laundry hassle-free for our customers, with a commitment to quality, efficiency, and exceptional customer service. I strive to be the go-to choose for laundry services in my community, and to build lasting relationships with our customers based on trust, reliability, and professionalism.
SERVICES DELIVERABLE
- Wash and fold service: This is my basic laundry service that involves washing and folding customers’ clothes, linens, and other items.
- Dry cleaning: A dry cleaning service typically involves cleaning garments and other items that cannot be washed in water, such as delicate fabrics, suits, or leather.
- Pressing and ironing: The business offers pressing and ironing services to customers who want their clothes to be professionally pressed and free of wrinkles.
- Pickup and delivery: I offer pickup and delivery services to customers who don’t have the time or means to drop off their laundry in person.
- Garment preservation: My business offers garment preservation services for customers who want to preserve valuable or sentimental items, such as wedding dresses or vintage clothing.
- Rug cleaning: My business offers rug cleaning services for customers who want their area rugs or carpets to be professionally cleaned.
Describe your best customer – Cledox suits, a hotel located at Sakumono Village, I wash the hotel bed sheets and comforters (duvets). Because most of my customers or clients are people working, some in the government sectors and other doing their own business, I save them time with my service. I also make them look outstanding and elegance in a classic way or style this gives then the confidence to go out doing their business without worried about what to wear the next day.
Why do your customers do business with you rather than the competition (how are you different or better)?
Apart from the good services we provide, I also make loyalty my priority. For example, there are a number of times I found things in my customers items, and I return them back eg. wallets, pens, credit cards, Id cards, money, etc. I pick up and deliver laundry. And above all, I don’t fade their items because I make sure I use the right cleaning products on their garments.
Prices to customers (10 ghc = $1)
- Suit = 50 ghc
- Shirt = 10 ghc
- Jeans = 12 ghc
- Duvet / blanket = 80 ghc
- Wedding gown = 150 ghc
- Robe = 25 ghc
- caftan is 25 ghc
How do your current customers know you exist? Most of my customers knew my existence by visiting my shop. My shop is by a road side. I have mounted a giant billboard to advertise my services
Why did you choose this business? I choose laundry business because I developed the passion for it 15 years ago when my formal boss would always ask me to come assist him on weekends to do his laundry at his residence. I was doing it so perfectly, and one day he encourage me to go into the laundry business. I also realised laundry is a business that will forever stay because the more people get busy at their various works, they will always be eager to look for people to assist then with their laundry.
Name your top ways to find new customers
- Most of my customer sees the giant billboard and get me connected,
- By referral
- A flier I drop every week at people residency in targeted areas
My business has already started, and I have been in business for more than 1 year. My business is my only source of income.
- WhatsApp phone number XXXXXXXXXXX
- Email Address XXXXXXXXX@gmail.com
- Course facilitator is Lovina Chizoba Mensah, email XXXXXXXXXX@gmail.com
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What Entrapov Sponsors Want and How to Attract Them
As you write your own business plan, it is important to think about who will be reading it…the Sponsors. Entrapov provides interest free loans from Angel Investors using the Shark Pond competition as part of the application process.
Q: Who are Entrapov sponsors?
A: Americans or Europeans who believe in God. They are not rich but have enough money and feel blessed. They like to travel and learn about new cultures.
Q: Why do sponsors want to help an entrepreneur?
A: They want to feel like they are changing someone’s life for the better. They want to make a friend. They want to get videos and messages showing your successes. They think startup businesses are interesting. They like to travel and want to learn about new cultures. In America we have a saying, “A picture is worth 1000 words.” Sponsors want to see photos of you and your family and of your business. They want to know about you and feel like they are helping someone. They think your life, family, and business is interesting. They want to be confident that your business will succeed. They will choose to support a business that has high profit margins, low risk of failure, and lots of demand from customers who can afford to buy.
Q: How can entrepreneurs get a sponsor to provide them with an interest free loan?
A: Work with your self reliance facilitator to complete the Entrapov Loan Application packet. The packet must include the following:
- Business proposal using the Entrapov template in Word or Google Docs format
- Revenue & Expense logs for the past 60 days (any format is fine)
- Income Statement in Google Sheets or Excel format
- Cash Flow Statement in Google Sheets or Excel format
- Recorded 1 to 2 minute pitch video
Read: Below are some important financial words or terms that you will want to include in your requests to investors. Investors and grant sponsors use these words to compare businesses that they might want to invest in. It would be helpful for you to understand these words as you present your business in Chapter 12.
Group Activity:
Each class member takes a turn reading the financial word and its definition shown below. After a word is read and defined, the person next to the reader will use the word to describe their own business. For example, if Brother Mensah reads, “Revenue is money that a business receives from customers for selling services or products. It comes from total sales made during the month or year.” Then the person sitting next to him might say, “My egg farm has made $100 in revenue so far this month.” Then this person reads the next word and its definition (Revenue and expense logs…).
Revenue is money that a business receives from customers for selling services or products. It comes from total sales made during the month or year.
Revenue and expense logs are forms used to record revenue and expense transactions.
Expenses are money that a business spends to create services or products. They include all costs associated with your business. It is important to keep money from the business separate from money from your household. Expenses can be Fixed Costs or Variable Costs.
Fixed costs are expenses a business has regardless of how much it produces or sells. Examples of fixed costs might include rent payments and employee salaries.
Variable costs are business expenses that vary based on how much a business sells or produces. A variable cost could be the amount of money spent on raw materials or commissions paid for selling a product.
Income statements subtract expenses from revenues over a defined period of time. It states whether a business has achieved a profit or loss.
Cash flow is a measure of the amount of money that moves in and out of a business during a defined period of time.
Competitive advantage is a condition or circumstance that allows a business to operate more efficiently, offer higher quality, or provide greater benefits than other businesses. A competitive advantage enables a business to gain or keep more customers.
Demand means that customers are willing and able to buy at a high price.
Self salary is what you pay yourself as an employee of the business. This helps you keep the business’ budget separate from your personal budget.
Net profit is the difference between sales revenue and all costs (both variable costs and fixed costs). Also referred to as net income or the bottom line. Net profit is shown on an income statement. The percentage of money a business keeps after both the variable costs and the fixed costs are subtracted from its sales revenue.
Net profit margin is the percent of sales revenue that is re-invested into your business each month as savings for future unplanned expenses or growth. Net profit margin is important because it allows a sponsor or investor to compare businesses and see which have the highest potential for success.
Inventory includes the value of all products or materials on hand that a business can sell or use.
Market test means selling simple products or services to people that could be your customers. The simple product tests if this customer really wants the product and has the ability to pay the price to purchase it. This happens before an entrepreneur invests lots of time and money in creating a business.
Wholesalers are businesses that sell large quantities of products to retailers.
Next Week’s Business Presentation
The purpose of your business presentation is to clearly communicate the value that your business offers. Next week you will have the opportunity to practice your business presentation, called a “Pitch.” The class facilitator, guests, and group members will tell you what they like about your presentation next week. They will also provide ideas to improve. They will be kind, but also helpful so you can be prepared to explain your business to sponsors.
ASSIGNMENT
Prepare your written business presentation using the template found at the link below. Save a copy to your phone or computer. Answer the questions about your business. Then email the business plan to your area supervisor (class leader) so they can make sure it is complete and provide feedback. https://docs.google.com/file/d/1JaY6CHGextM0Sl3mMRmNPR7tyg_PK9H1/edit?usp=docslist_api&filetype=msword
MY COMMITMENTS
Ⓐ I will practice my business presentation so I am ready for next week.
Ⓑ I will begin writing my business plan
Ⓒ I will continue to use a revenue and expense log every day to track the sales and expenses from my business or the test products I am selling to learn more about the market and customers I plan to serve. Use the template below.
