Read: Seystitches in Accra, Ghana specializes in styling, designing, and sewing clothing for all occasions. The owner, Josephine, had very specific goals when she pitched her business on Shark Pond. She told sponsors that if given a microloan she would purchase an Industrial Sewing Machine (for $265), a knitting machine (for $371), and expand her shop space and utilities to power new machines (for $364). She provided photos of the machines and a bid from a contractor to do the construction work. This helped sponsors feel confident in her plans. She explained that the new machines would enable her to sew a dress 3 times as fast. The knitting machine would save 1 to 2 hours waiting in long lines to use a rented one for finishing each dress. With these new machines she could make an additional $400 per month, tripling her revenue and increasing profit margins from 9% to 67% even after adding to employee salaries to handle the additional work (see below).

Discuss: Why does it help sponsors feel confidence in your business when you use words like Revenue, Cash Flow Statement, and Profit Margin when describing your business to them?

Discuss: Why is it helpful for sponsors to see your Revenue & Expense Logs and Income Statement when choosing who they want to sponsor?

SETTING GOALS AND MEASURING THE SUCCESS OF MY BUSINESS 

Read: Goals are steps that help us bring our vision to reality. We can work to achieve our vision if we break it down into small, incremental goals to complete over time. The acronym SMART can remind us to set goals that have the following characteristics: 

• Specific: include a detailed description of what will be achieved. 
• Measurable: include a metric or indicator to measure progress. 
• Achievable: set goals that are realistic and attainable. 
• Relevant: set goals that are important and provide motivation. 
• Time-bound: include the date when the goal will be achieved. 

As a business owner, think about your long-term vision and break it down into smaller goals that can be achieved through focus and persistence. 

ACTIVITY (10 minutes) This activity will help you learn how to create goals to achieve your vision. 

Step 1: Think about what you want your business to look like in three years. Then create smaller goals that will help you realize your vision. Review the example below to see how this might work. 

Now create your own version below. Start wherever you are most comfortable in creating your goals. Remember to use the SMART principles.

Read: As you work toward realizing your vision, be sure to maintain the following daily behaviors: 

• Be consistent by working on your goals every day. 
• Track your progress in detail. 
• Be flexible in adjusting your goals when appropriate.

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

You are welcome to use the Business Plan Template found at the link below (save a copy to your phone or computer. Go to: https://docs.google.com/document/d/1ui-zDCkJOwFVK3LwIQktMQubruZgBhBXg-gAH-nvYOM/edit?usp=sharing

It is also pasted below:

SKO 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

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 using the Presentation Feedback Forms shown below. 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 above or by going to: https://docs.google.com/document/d/1ui-zDCkJOwFVK3LwIQktMQubruZgBhBXg-gAH-nvYOM/edit?usp=sharing

MY COMMITMENTS 

Ⓐ I will practice my business presentation so I am ready for next week.

Ⓑ I will keep separate records for my business and personal money.

Ⓒ 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.