Introduction
This website is created for an exam question for BCIT‘s OPMT4438 Final. In BCIT’s Operations Management program, we took the OPMT4438 course and learned to create our own e-portfolio, how having a personal business can save us tax money, the importance of having intellectual property in our personal business, and what is critical to being a successful entrepreneur.
As students are coming up on graduation, a job/income becomes an immediate need. For those with a job, a personal business is a great way to create some side income and save on taxes. For those without a job, a personal business is a way to show a potential employer what kind of person they are hiring.
With help from BCIT we aim to give students that extra boost to create their new business by starting off on the right foot.
Business Goals
Short Term Goal (1 year):
- Have a total of at least 500 students’ attendance at biweekly workshops
- Have actually helped 50 businesses start up
- Reach a revenue of $30,000 including advertisement from local companies and successful entrepreneur businesses
Mid Term Goals (5 years):
- Annual total attendance of biweekly workshops at 1000
- Annual start ups of 100+
- Annual revenue of $200,000
Long Term Goals (5 years):
- Annual attendance of biweekly workshops at 1500
- Annual startups of 150+
- Annual revenue of $500,000
Business Description
The business name is BCIT Student Ventures.
We look to help BCIT students or recent graduates with the entrepreneur spirit in workshops to:
-education in entrepreneurship
-fleshing out ideas
-market research
-startup funds
Business Model
BCIT Student Ventures will make money through successful student ventures by taking a 10% cut of their yearly income through their entrepreneur business or a $1000 annual fee whichever is lower.
We will also seek advertisement from local businesses such as Staples, Grand & Toy, and Future Shop for students to use their products in starting out their business. We will charge between $250 – $500 per month based on the size of the company’s advertisement in the first year. We will adjust the cost of the advertisements in the future according to how many businesses we have helped and are helping at the time.
Marketing Plan
Free biweekly workshops teaching the basics of entrepreneurship from either instructors with a passion for helping others start out or by an alumni who has done well in the business world with their ideas.
Advertise in The Link which is BCIT’s monthly student newspaper.
Make sure introduction to the service on the day of orientation to both full time and part time students.
Create the website as part of BCIT and BCITSA.
Advertise in the BCIT Alumni Newsletters.
Show the stats as part of the ad as entrepreneurs with help and mentoring is more successful(Link 1, Link 2, and research paper)
Market Size is currently around 16,625 full-time students, and 31,599 part-time students as of 2009 based on Wikipedia information.
Seeing as how BCIT usually get older students, the students know what they want to do and why they are at BCIT. This makes it more likely the students already has an idea in mind but just not sure how to implement it or go about creating their own business. This is an opportunity for Student Ventures to help mentor interested students on their possible endeavors.
SWOT Analysis
Strengths:
has support of BCIT’s resources(staff, SIFE)
Tailored to help entrepreneurs start or grow their business
Weaknesses:
Smaller market segment
New to the scene of entrepreneurship organization so not as well known
Opportunities:
BCIT’s fast turnover of students, where most programs are 2 years long so new students flow in every year.
BCIT students have a stronger drive for success and believes in what they are doing
Less jobs out there, more time for possible entrepreneurs to take up their idea and go with it
Threats:
Local organizations listed in competitors
Current economy’s down, less capital funding to work with for entrepreneurs
Competitors
Vancouver Entrepreneur Organization
EO Vancouver promotes the personal and professional growth of its diverse young entrepreneurial members through a varied calendar of high quality educational events combined with a vibrant, meaningful forum experience.
Vancouver Entrepreneurs Toastmaster Club
Located in Vancouver in beautiful British Columbia, Canada, the Vancouver Entrepreneurs Toastmaster Club caters to our local entrepreneural community. We provide a friendly and energetic environment where both budding and seasoned small business owners co-mingle.
The Network Hub was established 2006 after observations of first time entrepreneurs struggling to find fundings from angel investors and venture capital companies. The Network Hub is a special kind of venture capital firm and incubator that care more about your idea than your age, resume and your business plan.
Ownership Structure
The business will be a partnership between BCIT and myself.
I will receive a yearly base salary of $25,000, with 30% of profits going to myself and the rest goes to BCIT.
BCIT will provide 80% of the resources in starting the business while I am the main contributor in terms of workload and implementation of ideas.
Decision making powers will be spread 60% to myself and 40% to BCIT as I will be working on most projects with some BCIT input and support.
Financial Plan
- Startup Costs
| Startup Costs | |
| Owner’s Salary | $ 25,000 |
| Employee’s | $ 5,000 |
| Office Furniture | |
| Office Desk(2) | $ 1,000 |
| Office Chair(4) | $ 400 |
| Filing Cabinet(2) | $ 500 |
| Computer(2) | $ 1,500 |
| Printer/Scanner/Fax | $ 500 |
| Small Business Owner Insurance | $ 1,000 |
| Telephone Line | $ 50 |
| Cellphone Charge(1) | $ 50 |
| Supplies | $ 100 |
| Legal Fees | $ 90 |
| Tax | $ 400 |
| TOTAL | $ 35,590 |
- Monthly Costs
| Monthly Costs | ||
| Salaries | $ 2,500 | Primary Owner(me), 1 part time student worker |
| Utilities | $ - | Office is on campus, so no extra charges |
| Advertisement | $ 250 | Advertise on campus along with BCIT ads to start, expansion based on future earnings |
| Insurance | $ 300 | General business liability insurance |
| Supplies | $ 50 | General office supplies, paper, paper clips, staples, folders |
| Unexpected | $ 150 | Estimated possibilities |
| TOTAL | $ 3,250 | Per Month |
- Projected Income Statement
|
Income Statement |
|
|
BCIT Student Ventures |
|
|
31-Dec-10 |
|
| REVENUE | |
| Successful Startups(50) | $ 30,000 |
| Advertisements(5) | $ 24,000 |
| TOTAL REVENUE | $ 54,000 |
| Gross Profit | $ 54,000 |
| Less Fixed Costs | |
| Salaries | $ 2,500 |
| Utilities | $ - |
| Advertisement | $ 250 |
| Insurance | $ 300 |
| Supplies | $ 50 |
| Unexpected | $ 150 |
| Monthly | $ 3,250 |
| TOTAL COSTS | $ 39,000 |
| Profit before Tax: | $ 15,000 |
| Tax(20% estimated) | $ 3,000.0 |
| NET INCOME | $ 12,000.0 |
- Breakeven Time and Payback Period
| Fixed Cost | $ 39,000 |
| Contribution Margin | $ 54,000 |
| Breakeven(years) |
0.722 |
| Breakeven(months) |
9 |
| Start-up Costs | $ 36,290 |
| Project Income | $ 12,000 |
| Payback Time(years) |
3 |
Funding Source
BCIT will fund 80% of the business starting out, $60,232, and I will fund the rest $15,058.
Implementation Plan
After completion of the initial business plan and having a trusted colleague or instructor read through and ensure everything is in order, a meeting with both the BCITSA and BCIT Board of Governors. I will deliver the elevator pitch making note of the importance of encouraging the entrepreneur spirit and guiding them would be another strong point to what BCIT already offers students. The importance of having student entrepreneurs would allow BCIT to advertise themselves on a different stage than just providing industry with ready to work employees.
After BCIT agrees to work with us, we will create our website http://www.bcitstudenventures.com, which will be linked to BCIT and BCITSA websites. The website will provide online contact to students who can’t come to the Burnaby campus to do in person consultations. We would also request to be part of BCIT advertisement strategy as we could be another selling point for students to come to BCIT.
By utilizing the BCIT brand, we can attract local business in advertising within Student Venture’s office along with providing discounts to new entrepreneurs. As mentioned earlier, we will charge from $250 – $500 monthly per company to advertise with us. BCIT students would not be charged anything to use our service until they have successfully started their business. Prior to starting their business, a contract has to be signed with Student Ventures for them to agree to pay us either 10% of their annual revenue or $1000, whichever is lower.
We will provide consultation through our biweekly workshops, in person consultation at the office, and online consultation through our website http://www.bcitstudentventures.com. We will network our program with the local organizations to ensure our services are top notch and up to industry standards.
Business Slogan
Grow your business through our support!