Albert Felix

Opportunity Recognition & Business Structure

1.1 Business Opportunity
Berts Shirts opportunity is to start selling graduation year t-shirts from Berts shirts to the
students of San Leandro and to other high schools as well. The problem Bert's Shirt's is solving is
the lack of creativity that the school needs. Students will have the opportunity to get a t-shirt
representing their graduation year. They will want these t-shirts because of their pirate pride and
the shirts will remind them of their high school days.

1.2 Type of Business

Berts Shirts is a retail business that will sell t-shirts with graduation year designs to
individuals who like buying them. It will be at a profitable yet affordable price.

1.3 Type of Business Ownership

Berts Shirts is owned by an entrepreneur who is a sole proprietor. This business will be a sole
proprietor business which means that the boss will make his own hours and his own decisions on
where the future of the company will go.

1.4 Mission Statement

Our mission is to bring a t-shirt pride into San Leandro High School students as well as other
high schools and present their year of graduation. As well as to raise some money for Salvation
Army which is an international movement, its an evangelical part of the universal Christian
church. They help people of many backgrounds and they help people to get back on track.

1.5 Social responsibility

Bert's Shirt's will donate 10% of my profit to The Salvation Army which is a shelter for
adults and kids located in Oakland as well as in a variety of cities in the U.S.
1.6 Qualifications
I believe that I have the qualifications to establish and run my own business. These qualities
include determination, ambition, and I'm enrolled in the San Leandro High School Academy of
Business and Finance so I have been getting educated in knowing how to run my own business.

Albert Felix

Market research
2.1 Market Research
The market research is targeting people of all nationalities between the ages of 15-20.
2.2 Target Market
Demographic information: My business will be targeting people of all nationalities between the
ages of 15-30.
Geographic Information: My business will be in San Leandro, California.
Psychographic Information: My business will be targeting people who love their school, buy
clothes for school spirit, and like to contribute money to help others in need in the world.
2.3 Competitors
Direct competitors: Shirt designing companies including Uber Prints and Custom Prints.
Indirect competitors: Wal-Mart, Target, Sears, including stores that sell shirts.

2.4 Competitive Advantages

1. Easier access to customers during the day
2. Location (school kids aren't being targeted at school)
3. Great Customer Service
4. Lower price and Great quality

2.5 Business Growth

Short-term Business Goals: My short-term goal is to get business flowing good and making
profit. To do that it will take work on advertisement to make my business exposed to other
people.
Long-term Business Goals: My long-term goal is to see my company become a well known and
profitable business, gain loyal customers, and expand to locations.

2.6 Challenges
Short-term Business Challenges: Hone my presentation skills and negotiating skills.
Long-term Business Challenges: The main long-term business challenge is to see that I gain all the
tools and skills to succeed in the business world.

Albert Felix

Promotion & Sales

3.1 Marketing Plan
1. Get great deals on the creative/unique shirts.
2. Expand wardrobe to greater potential.
3. Have great taste in clothes.
4. It shows what the customer values in life.
5. It shows that the customer values education and reminds them of how good their lives could be
with education.
3.2 PROMOTION
1. Company website: Berts Shirts will create an organized website, which will provide all the
information about the company, including locations and price. This site will offer our customers a
way to obtain the information they need in order to buy our products. Also, the website provides a
way for customers to buy our shirts online from the comfort of their home. Another benefit from
purchasing a shirt from the company website is there are coupons available like getting half off on
your next purchase.
2. Internet promotion: posting advertisement on Berts shirts Facebook wall as well as the public
wall will spread its popularity amongst the people of San Leandro, C.A.
3. Flyer's will be distributed to the public which will spread information about Berts Shirts.
4. Strategies for retaining current clients: Berts Shirts would like to reward Mystery prizes to
their loyal customers by giving customers discounts and other secret prizes.
5. Coupons: coupons that give deals like buy three get the fourth free can also be distributed at
local events at shopping malls, cultural fairs, and other public events.
3.3 Sales Methods

Albert Felix

1. Personal selling
2. Website sales by shipment
3. Social networking (company website)
3.4 Sales Estimates
Factor

Influence on sales

Market Analysis: I have observed by my survey that males between the ages of 15-20 will most
likely buy my shirt.
Maximum capacity: My maximum capacity is approximately 48ooo people are eligible to buy my
shirts.
Break Even Units: 5 units
Seasonality: Berts Shirts shirts have year round designs.

Month

Unit (approximately)

Revenue

January

96

$1,920.00

February

84

$1,680.00

March

88

$1,760.00

April

92

$1,840.00

May

96

$1,920.00

June

84

$1,680.00

July

96

$1,920.00

August

92

$1,840.00

September

92

$1,840.00

October

96

$1,920.00

November

88

$1,760.00

December

96

$1,920.00

Annual total

1,100

$22,000.00

Albert Felix

4.
4.1

FINANCIAL INFORMATION & OPERATIONS

Definition of One Unit

One unit is defined as one of Berts Shirts.

4.2

Variable Expenses
Materials
Material Description

Plain shirt

Bulk Price Bulk Quantity Quantity per Cost per Unit

Unit
1.49
1
$1.49

Spray paint (white)

0.97

$0.97

Spray paint (variety of colors)

3.77

$3.77

Spray paint (variety of colors)

3.77

$3.77

Total Material Costs per Unit

$10.00

Labor
Cost of Labor per Hour
$20

Time to make one unit

15 minutes

Total Labor Costs per Unit

$5

Material Costs

Labor Costs

TOTAL EOU

$10.00

$5.00

$15.00

EOU

4.3

Economics of One Unit

Selling Price per Unit

Variable Expenses per Unit
Costs of Goods Sold
Materials
Labor
Total Cost of Goods Sold

$20.00

$10.00
$5.00
$15.00

Albert Felix

Other Variable Expenses

Commission
Packaging
Other
Total Other Variable Expenses
Total Variable Expenses
Contribution Margin per Unit
4.4

$0.00
$0.00

Time
5 min
15-30
15 min
45 min
1-30 min
5 min

Cost
$0.00
$0.00
$20.00
$0.00
$0.00
$0.00

Fixed Expenses for One Month

Expense Type
Insurance
Salary
Advertising
Interest
Depreciation
Utilities
Rent
Other Fixed Expenses
Total Fixed Expenses
4.6

$15.00
$5.00

Production Process OR Delivery of Service

Description of Step
Consult with potential client to determine what types of colors is
he/she high school are.
Go home
Create shirt
Come to school
Meet client and do trade
Go to class
4.5

$ 0.00

Monthly Cost
Explanation
$0.00 Business is incapable of having insurance, too small
$0.00 no salary
$0.00 Facebook page, and advertise on Facebook wall.
$0.00 Not getting a loan
$0.00 No major materials to replace
$5.40 Only paying phone and PG&E for a couple of hours a
month.
$15.00 I'm using 20% of my room for my business
$0.00 there is none
$20.40 thats the total

Income Statement for First Year of Operations

REVENUE
$22.000
Gross Sales
$22,000
Sales Returns
$0.00

Albert Felix

Net Sales
$22,000
VARIABLE EXPENSES
Costs of Goods Sold
Materials
$10.00
Labor
$5.00
Total Cost of Goods Sold
$15.00
Other Variable Expenses
Commission
$0.00
Packaging
$0.00
Other
$0.00
Total Other Variable Expenses
$0.00
Total Variable Expenses
$0.00
CONTRIBUTION MARGIN
$5.00

FIXED OPERATING EXPENSES

Insurance
$0.00
Salaries
$0.00
Advertising
$0.00
Interest
$0.00
Depreciation

Albert Felix

$0.00
Utilities
$ 5.40
Rent
$15.00
Other fixed expenses
$0.00
` Total Expenses
$ 20.40

PRE-TAX PROFIT
$1,466.66
Taxes (15%)

NET PROFIT
$ 20,533.34

4.7

Startup Investment
Item

Why Needed

Vendor

Cost

t-shirt

Primary detail

$1.49

Spray paint (white)

In case of mistakes

$0.97

Spray paint (colors)

School color (secondary)

$3.77

Spray paint (colors)

School color (secondary)

$3.77

Albert Felix

Total Startup Expenditures

Emergency Fund (1/2 of startup expenditures)
Reserve for Fixed Expenses (covers 3 months of fixed expenses)
Total Startup Investment
4.8

$10.00
$5.00
$61.20
$76.20

Financial Ratios

Return on Sales (ROS):

Annual Net Profit
Total Annual Sales

$20,533.34
$22,000

93%

$0.93

$20,533.34
$76.20

13.12%

$13.12

$20.40
$5.00

4.08

5 units

Return on Investment (ROI):

Annual Net Profit
Total Startup Investment
Breakeven Units (Monthly):
Fixed Monthly Expenses
Contribution Margin