Answer EACH question. Think your answers through carefully. Think now before we spend money! New businesses that fail ( most new start-up businesses do fail ) simply had a quickly put together plan on paper, but they were not really prepared for what was coming. We want you prepared! We want you to think everything through, over and over. We say, “think it through frontwards and backwards.” And since we will be putting in money, we want you to be ready for success—or we lose our money!
If you give us a quick answer that does not show us you have thought deeply, we won’t think you are ready to do a good job managing our money. The “answer” provided below is a SAMPLE answer that was for a moto taxi business—you should put in the REAL answer that describes your situation.
#1 Will there be an actual cost for the space?
Answer: No cost for the space
#2 Who will be there to serve customers?
Answer: The Moto Driver
#3 How many hours a day will business be open?
Answer: About ten hours a day.
MARKET ANALYSIS
#4 Who will you promote to (give flyers, tell about your business, etc.)?
Answer: The moto taxi driver and me, people at church, people in my neighborhood.
#5 In relationship to your business, where are other similar businesses located?
#6 In relationship to your business, where are your potential clients located ( schools, offices, etc)?
#7 Approximately how many potential clients exist in the market where you want to start this business?
(EXAMPLE: there are 2 high schools with approximately 500 students each, and 1 university with approximately 1,000 students, and 3 office complexes with approximately 300 employees...etc.)
#8 Can you get on radio free with a “Public Service Announcement”?
#9 Can you visit local businesses and see if they will use your service?
#10 Are you planning to use any profits from the business for personal living expenses in the first year?
(the answer to # 10 should be “no”. Do not plan to “have the business feed you” in the first year. Put all money made back into the business. Later you can take out profits, but not in the first year!! There are NO exceptions to this rule)
PROJECTED CASH FLOW
#11 How much business do you plan to generate in the first week?.
Answer: USD $34
#12 How much do you plan to generate in the second week?
Answer: USD $34
#13 How much do you plan to generate in the third week?
Answer: USD $34
#14 How much do you plan to generate in the fourth week?
Answer: USD $34
#15 How much do you plan to generate in the second month?
Answer: USD $272 (2 x $136 = $272)
#16 How much do you plan to generate in the third month?
Answer: USD $408 (2 x 272 = $408) Most businesses grow and produce MORE each month than they did the previous month.
#17 How much do you plan to generate in the fourth month?
Answer: USD $544
#18 Who are these customers?
Answer: The passengers
#19 Did anyone else try a business like this? Who?
Answer: Yes, a good friend of mine
#20 What did you learn when you talked to them and asked for advice for your new business?
Answer: He encourage me get involved in that business. When I talk to him he always show me that is a profitable business and that I can generate money. Good!
#21 Can you Skype with us?
Yes, I can Skype at any time and whenever.
We will need to communicate with you—cheaply. Skype calling capacity will be a necessity. Dr. Epps speaks English and some Spanish.
#22 How many business will be near enough to you that your customers can go to your competition if they want to?
Answer: Many
#23 What will you offer that your competition does not offer? (This is about WHY will customers come to you and not to your competitors)
Answer: We will be courteous, always smiling at people, we will always wear red caps, and will always say “Thank You” when people get off the moto. In addition to getting a ride, we help them feel good.
#24 Describe your “average” customer?
(Tell us their approximate income, education level and residence location and anything else that describes them.)
#25 How will you and your partners share the work load?
#26 How will you share the profits?
#27 Make up some examples of your bookkeeping.
We want you to make a sample of how you will record income and expenses in the business and show them to us. After we see your samples, we will offer some suggestions.
#28 Who will keep your books? Have you already discussed this with them?
Answer: my wife. Yes, she has already agreed.
#29 How much time will it take each day? Each week? Each month?
Answer: about 20 minutes a day in the beginning. Later on, it could be much more.
#30 What bank will you use?
Answer: Bank Nation de Credit (BNC)
#31 Do any of you have an account there now?
Answer: Yes, I have One
#32 Are you willing to take our advice and apply the advice in your business?
Answer: Yes, I will take your advice and apply to my business.
