Your son's "first" business plan

Dear Parents;

 We are excited to share an exciting development in our mentoring program that aims to provide your sons with valuable insights into the world of business.

Over the past month, our Black Tie Guys have been learning about money, its value, how to earn it, count it, save it, and even make it grow. We believe that understanding these fundamental aspects of finance is a crucial life skill that will serve them well in the future.

His goal is to become a "billionaire." However, he has to start somewhere, so he'll begin his journey to wealth with a $100 loan from the BTG program and your help.

In our upcoming meeting on Monday, September 18, 2023, we are taking the next step in this educational project. Each participant is tasked with creating a simple one-sheet business plan for a real business venture, which will be funded with a loan provided by our program.

Your son will need your help developing a business plan to convince us to loan him $100. His plan will need to show that he has thought out his business and has a plan to repay the $100 loan.

He will need your help making his plan.

Here is an example of a sample business plan:

Business Plan for Black Tie Guys Candy Business:

• Business Idea: Candy Sales
  
  
• Budget: My business will begin with $100 borrowed from the BTGs program.
  
  
• Supply List:
  • To get started, I will need at least 100 pieces of candy to sell.
  • I will make a list of people I will contact to sell my candy.
  • My parents or mentor will help me go to places or meet people to help me make sales.

Pricing:

• I will sell each piece of candy for $1.00.

Expected Profit:

• I will sell at least 10 pieces of candy a day at $1. That means I will take in 10 X $1 or $10 a day.
• In ten days or less I will sell all of my candy.
• I will take in $100 

Revenue (Money I take in):

100 candy items x $1 per item = $100.

Expenses (How much the candy cost me):

Each piece of candy will cost me $0.60 cents, so it will cost me $60 to buy the candy I will sell (100 X $0.60). I will buy the candy from the money I borrowed from the BTG program

Total Expenses: $60.

Expected Profit: I will take in $100 from my sales. I will spend out $60 buying my candy, so I will make $40, which is my profit.

Repaying the $100 Loan:

• I will repay the $100 loan by paying back $10 a week.
• In ten weeks, I will repay the $100 I borrowed.

Paying Myself:

• I will pay myself $10 a week.

Buying More Candy and Starting Over:

• I will use $60 of my $80 to buy another 100 pieces of candy and start all over.

Summary:

• I will borrow $100 to purchase 100 pieces of candy. The candy will cost me $60. I will sell the pieces of candy for $1 each and earn $0.40 cents profit off each sale.
  
  
• When I have sold all 100 pieces of candy, I will repay $10 on my loan, pay myself $10, and use $60 of my $80 to buy more candy and start all over.

At the end of the first week, here’s the money I will have in my hand:

• $40 left from the loan
• $100 I made from selling the candy
  
  I will have $140 in my pocket
  
  
• I will use $60 to buy more candy
• I will pay $10 on my loan
• I will pay $10 to myself for my hard work
  
  
• I have $60 left after selling my first batch of candy. (Fund Balance)

Paying Off My Debts:

• At the end of selling my first batch of candy, I will still owe BTG $90. I plan to  pay back my loan as fast as possible so I won't owe anybody,

To Parents:

We kindly request your support in helping your sons put together their business plans. This hands-on experience will not only impart valuable business skills but also encourage responsibility and creativity.

We look forward to seeing your sons' business plans and witnessing their journey into the world of busines. If you have any questions or need assistance, please feel free to reach out to me or your mentor

Thank you for your continued support of the Black Tie Guys Mentoring Program.

Sincerely,

Roosevelt Wright, Jr.
Director