sba business plan

sba business plan

SBA Business Plan

1. Executive Summary

The Enigma Café is a full service café located in the college district of New York. The café features a full menu of moderately priced “comfort” food influenced by college-age Americans, which is substantially different from the typical food offered in cafes in the college district. The mission of The Enigma Café is to provide a comfortable place for students to come and study, catch a meal or a snack, and hang out with friends. We will also strive to create a friendly environment where the customers can relax and escape the pressures of the day. All of The Enigma Café’s employees will be energetic and friendly, providing the customers a delightful experience each time they visit. The Enigma Café will also employ a friendly and hardworking staff which we will invest in further by providing “on the job” training which will enhance the employee’s spirit and dedication to the company.

2. Company Description

Now, with the creation of Evapo-Rust and our parent company Harris International Labs, LLC, we feel we can finally retire our past and have something we can call our own.

We started giving a few samples away for friends and family to try it. They were all amazed by it and wanted more of it. None of them had ever used a product so safe and so effective as our Evapo-Rust, and word of mouth was our best advertising. With the success of our first few samples, we decided that we were going to launch the product. We have had many years of experience in sales, marketing, and advertising which will help in the sales and consumption of our product through the retail, commercial, and industrial markets.

During research and development of Evapo-Rust, we tried many different chemicals, processes, and procedures to create an effective rust remover. But after testing many ideas, we found that an environmentally friendly solution was the best. From this, we formulated Evapo-Rust: a non-toxic, non-hazardous, environmentally safe solution to remove rust. Coming from a solvent background, we had tried many things, but nothing like this. We were fascinated by the safety and effectiveness of the product. We knew we had something going for us.

Our company Evapo-Rust was launched after months of research to form our parent company Harris International Labs, LLC. We were in desperate need of a fast working and safe rust remover that wasn’t harmful to us. After searching, we found that there were no products on the market that were safe and easy to use. This set us on a journey to create a rust remover that is safe, easy to use, and above all, fast working.

3. Market Analysis

1. What is the size of the market for your product or service? 2. What is the current sales volume in this industry? 3. What sales volume do you believe your business can achieve? 4. How do you believe you can provide your volume of sales? 5. Can you provide evidence and data to convince others? 6. What factors could prevent you from achieving your sales goals? 7. What is your pricing policy to equal or to above sales volume? 8. Can this volume of sales produce a profit maintaining your desired salary?

Key Questions

• Develop a bar chart of market sales showing how you expect to achieve your sales goals. • Identify your primary market and comment on geographic, demographic, psychographic data that you have collected on your target market. • Use research findings to support your estimate of the sales potential for your target market. Cite the sources of secondary data. Include your primary data methodology and results of relevant surveys/questionnaires. • An analysis of competition should list competitors (or potential competitors) and evaluate their strengths and weaknesses. Make sure to demonstrate how you will take this into consideration in planning to achieve your sales goals. • In the next section, you should put a dollar figure on the estimated profitability of achieving your sales goals. Consider including a copy of your pricing policy from the Pricing Strategy section of this program.

Market Analysis

Estimate the marketing/sales potential that you hope to achieve in your business’s target market. This section should include an analysis of your target market, your competition, the advantages that your business will have in the marketplace, sales potential, and policy used to price your product or service.

Market, Customers, and Industry Analysis

4. Marketing and Sales Strategy

Marketing encompasses the identification of your customer, the research of their needs and the development of a product(s) to meet their needs. Your marketing should be customer focused and specifically targeted at a demographic segment. Your aim is to move the people in your target market through the following stages; from unaware of your product, to aware of what it can do for them, to understanding how it can satisfy their specific needs.

The marketing and sales strategy details the tactics your business will utilize to sell your product. It also addresses how you will position and promote your product to take advantage of your target market. What are the specific attributes of your product that the buyers are looking for? Are you considering providing discounts? What is the best time to do promotions? These are all questions that need to be addressed.

5. Financial Projections

Market price sales revenue can be calculated using a dependent PERT distribution. With the probability, the price of the product, and estimated high, low, and most likely sales volume, we can set revenue as the sum of multiplying the estimated sales volume with the estimated product price.

Fixed pricing and inflation-adjusted pricing can be calculated using the following formulas: Fixed pricing = Price x History of sales Inflation-adjusted pricing = Price x (Current Year’s Inflation / Base Year’s Inflation)

Fixed pricing is when the product price does not change over time. Therefore, this price will be used in the revenue forecast. Market price is when the product is sold, and the price is compared to prices of similar products. Therefore, the forecasted revenue will depend on the product’s price and demand. Inflation-adjusted pricing is used when considering economic inflation over time. The projected revenue will change with the rate of inflation.

The goal of financial projections is to forecast the business’s revenues and expenses over a selected period of time. These projections are used to acquire funding for the business. Revenue projections are a straightforward element to forecast, given that they are based on customers, price, and market demand. There are three types of sales pricing: fixed pricing, market price, and inflation-adjusted pricing.