Feb 25, 2016
Ride DaWave
Shequari Edwards and Devon Evans 17Age17
Mission Statement Mission Statement To ensure our customers the most all natural hair
product and good service. Opportunity This will give our customers a chance to have better
hair products locally.
Business Profile Type of Business
retail service We provide a natural crème based wave
lotion that has the hold of a pomade. Legal Structure Partnership Limited Liability Company We chose a partnership because their
would be more ideas between the two of us. Having a partnership would share the responsibility and work load of our company.
Qualifications I’m qualified to run this business
because:
We are a part of our target market
Natural idea for healthy hair
We have taken a Marketing and Entrepreneurship Business class
Market AnalysisIndustry Name Cosmetics, Beauty Supply & Perfume Stores
Industry Size $10 billion
Total Population Hartford county
Target Market Both man and women, ages usually range from 18-35
Potential Market Based on 25 individuals 88 percent of the people wanted an all natural wave product with no build up.
894,478
17,400
19,773
Total Population
Target Market
Potential Market
7
Target Market Segment Demographics
We plan to focus on the ages of 18-35 years of age. Male or female who have a low cut and wants 360 waves naturally.
Geographics The focus of our target market
live in Hartford, Connecticut. Our target market are people who wants to keep their healthy and natural.
Psychographics Our target market is people
who wants to develop 360 waves naturally.
Buying Patterns Our target market’s buying
patterns are people who are loyal to one product and may put the word out if or when it works for their hair.
Competitive AdvantageRide Dawave
(crème)360
Style(pomade)
WaveBuilder(Lotion)
Factors
5.19$
Quality of Product/Service
Price
Location
Reputation/Brands
Unique Factors/Knowledge
2.99$ $10.00
Excellent Great Excellent
Smooth and great hold w/ grease
Great hold and washes
out easy
All natural & all
around performanc
e
Online/ store
Online/ store
Online
Excellent Excellent Excellent
Marketing Mix
People Product Place Price Promotion
Males and females 18 - 35
• Word of mouth• Business cards• Social networks• Sale to distribution
stores
Hartford , ct Online website
An all natural crème that has the hold of a grease without the non sticky build up.
Affordable starting at $ 10 (plus shipping)Only applies to people online
Promotional Mix
Advertising Business cards $3.99
Publicity Facebook, twitter, word of mouth, website $0.00
Personal Selling 10 Free product samples $7.50
Sales Promotion
25% more of our product in the summer $12.50
Total Monthly Promotional Expense $23.99
Promotional Expense MonthlyAmount
Cost of Materials/LaborMaterials
Material Description Cost/Total Quantity Cost per UnitDouble wall plastic jar (4oz)
$ 200/$ 129.95 .65$
Pure un-refined raw shea butter
6.95/50 1 teaspoon .15$
Jamaican black castor oil
$9.50/50 1 teaspoon .20 $
Organic burdock root (samples)
$ 1.95/50 .04$
Total Material Cost per Unit 1.04$LaborLabor Cost per Hour Time (in Hours) to
Make One UnitLabor Cost per Unit
$8.25 Time 15min. 2.06$Total Labor Cost per Unit 2.06$
COGS (per Unit) one bottle: 1.04+ labor: 2.06 = $3.10
Economics of One Unit
Selling Price (per Unit)$10.00(plus shipping and handling)
COGS (per Unit) $3.10
Other Variable Expenses (per Unit) $0.00
Total Variable Expenses (per Unit) $3.10
Contribution Margin (per Unit) $6.90
Description of One Unit of Sale:
One jar of all-natural wave lotion
Average Monthly Fixed ExpensesFixed Expense Average Monthly Expense
Salary of employers $300.00
Advertising (business cards) (online advertisements) $23.99
Depreciation (freezer, phone, laptop) $25.11
Utilities (Gas, Electric, Telephone) $35.00
Rent (home) $40.00
Total Average Monthly Fixed Expenses $424.10
Time-Management PlanSchedule for a Typical Week
Total Hours in a Week = 168
School
New Business
Free Time
0 20 40 60 80 100120140
40
7
121
Hours
Monthly Sales ProjectionsFirst Year
050
100150200250300350
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Uni
ts So
ld
Total Units Sold
2,355
Monthly Break-Even Units
In an average month, the company will begin to make a profit after selling units.194
Monthly Fixed Expenses
Contribution Margin per Unit
= Monthly Break-Even Units
756.06
3.90= 194
Projected Yearly Income StatementFir st Year
Selling Price per Unit $10.00
Number of Units Sold 2,355
Total Sales $23550.00
Variable Expenses $7300.50
Contribution Margin $16249.50
Fixed Operating Expenses $5089.20
Pre-Tax Profit $11160.30
Taxes @ 15% $1674.05
Net Profit $9486.25
Start-Up InvestmentStart-Up Expenditures
Item Where Will I Buy This? CostComputer Best buy already own Cell phone T-mobile Already own
Start up supplies/ingredie
nts
Bj's or wholesale website
$279.00
DBA City of Hartford $10.00Business cards
(250)Vistaprint.com
$3.99Partners
agreement Webster & Myers, LLC
$150.00Total Start-Up Expenditures $ 442.99
Cash ReservesEmergency Fund $ 221.49
Reserve for Fixed Expenses $ 2268.18
$2932.66Total Start-Up Investment
ROS & ROIROS: Return on Sales
For My Business: DollarEquivalent =
ROI: Return on Investment
For My Business: DollarEquivalent =
$9,486.25$23,550.00 X 100 ≈ 40%
$9,486.25$2,932.66 X 100 =323%
$.40
$3.23
Financing Strategy
Source Amount Debt Equity Gift
Personal Savings xRelatives/Friends 100.00
Investor xPartner(s) 200.oo
Totals 300.00
$442.99Total Start-Up Investment
Business Responsibility& PhilanthropyPhilanthropy
Ride the wave will give 5 % of our net profit to a foundation for cancer research and also 3- 5 hours out of the week to comfort these special people and make their life’s a little better than yesterday.
Business Responsibility As our business grows we plan to use more eco- friendly
jars or bottles that our all natural product we be placed in.
Business & Personal Goals
Our short goal business plan is to double the
money we put into this business in a year.
Business Personal
To move out from selling these products out my house into selling many different products in a local store front.
Shor
t-Ter
mLo
ng-T
erm
D: To be working in the medical field as an APRN or MD.
S: I plan to be an artist or graphic designer for clothing and pictures.
• To graduate from high school and
go to 4 year college.
Taking care of your hair in everyway, everyday!
Thank you for your consideration.Ride Da
Wavehttp://Devonevans.inuitwebsites.com