Directions: You are going to create a FICTIONAL business plan. If you have an area that you are interested in then PLEASE choose a business related to that. My past students have chosen things like…
Dog Walking/Doggy Day care
Starting a Gym/Becoming a Personal Trainer
Hair Salon/Manicure Salon
Coaching for video games, schoolwork, sports, college prep
Anything else that will provide a good or a service to people in your area or online
Question #1 (2 points)
What is the business that you might be considering starting?
Question #2 (2 points)
What will you be providing a GOOD or a SERVICE? Explain why…
Question #3 (10 points)
Complete the following table to show what you will need to start your business. You must have at LEAST 6 items to get a passing grade for this section!
Resource
Fixed or Variable cost
1 time cost? Yes or No
Monthly Expense?
Yes or No
Required units?
Cost per unit?
Average cost= Required units X cost per unit)
Month One Expenses= start up cost
Month 2 expenses: no one time costs here
Example= Rent
Fixed
No
Yes
1
$1500
$1500
$1500
$1500
Example= Laptop
Fixed
Yes
No
2
$800
$1600
$1600
$0
Question #4 (2 points)
Which type of business type do you think works BEST for your functional business?
Choose ONE…
Sole proprietorship Partnership Corporation
Your choice is…
Question #5 (8 points)
In 6 to 8 sentences explain some of the pros and cons of the business type that you chose above. Type your answer in the space below
Question #1: The business I am considering starting is a meal prep and delivery service.
Question #2: I will be providing a service by preparing healthy and delicious meals for busy individuals who do not have the time to cook for themselves. This service will help them maintain a healthy diet and save time on meal preparation.
Question #3:
Resource | Fixed or Variable cost | One time cost? | Monthly Expense? | Required units | Cost per unit | Average cost | Month One Expenses
Food ingredients | Variable | No | Yes | 100 | $200 | $20,000 | $20,000
Cooking equipment | Fixed | Yes | No | 1 | $1,000 | $1,000 | $0
Delivery vehicle | Fixed | Yes | No | 1 | $15,000 | $15,000 | $0
Packaging supplies | Variable | No | Yes | 1000 | $0.50 | $500 | $500
Question #4: The business type that works best for my functional business is a sole proprietorship.
Question #5:
Some of the pros of a sole proprietorship include full control and decision-making authority, simplicity in setting up and operating the business, and the ability to receive all profits directly. Additionally, there are fewer legal requirements and formalities compared to other business types, making it easier to start and manage.
However, there are also some cons to consider. As a sole proprietor, you are personally liable for any debts or legal actions taken against the business, putting your personal assets at risk. It can also be challenging to raise capital or attract investors, since the business is tied to your personal finances. Additionally, there may be limitations on growth and scalability, as there is only one person managing and running the business.