minnesota state of mind loan presentation revised

MinnesotaState of MindUNITED PRAIRIE BANKINTEGRATED BUSINESS EXPERIENCE 2016

Mission StatementMinnesota State of Mind’s mission is to inspire Minnesota pride through the sale of unique, trendy spring and summer outdoor accessories at an

affordable price.

Organizational chartCEO/President Connor Martin

CFO Janice

Chen

Cash Managers Jay / Salma

CMO Gavin Dick

IT Manager

Tien

COO Olivia Robinson

Inventory Managers

Breonna / Tony

Vice President Precious Akaya

Secretary/Charity Coordinator

Nikki Theobald

Company Goals Pay off Loan by April 29, 2016 Sell 100 Hats by April 27, 2016 Sell 100 Sunglasses by April 27, 2016 Sell 100 Towels by April 27, 2016 Sell 300 Promo Cards by April 27, 2016 Complete 250 Volunteer Hours as a Company by April 29th, 2016

Products

Market Research Target market

Market Research Target market

Market Research Cont.

Target MarketsPrimary Market:

Students

Secondary Markets:

MNSU Alumni

Families of Students

MNSU Faculty and Staff

Residents of Mankato

Local Businesses Consumers

Key Competitors

S.W.O.T.Planning

Internal ControlConsumer Focus

Lack of ExperienceTime

LocationPromotional Techniques

Lack of DifferentiationSupplier Locations

S W

O T

Product Strategy and Suppliers

Unique products with self-created logo

Convenient to target market

All Suppliers within the United States of America◦ Towels: Rally Towels◦ Hats: Visionary Manufacturing◦ Sunglasses: LogoLenses◦ Promo Cards: PrimoPrint

Product Pricing Sunglasses- $5.00

Promotional Card- $5.00

Hat- $15.00

Beach Towel- $20.00

• Our prices derived from online survey results

• Survey sample consisted of 85 individuals who live in the Mankato area between the ages of 18 and 35

Marketing Mix – Promo Strategy

Social Media Flyers Personal Selling Word of mouth

Loan Amount needed: $2,480.20

Breakdown:

Sunglasses: $218.20

Towels: $850

Hats: $695

Cards: $117

Shipping cost: $100

Marketing & Promotion: $300

Square: $150

Website Expenses: $50

Forecasted Scenarios

Projected Units

Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 80

20

40

60

80

100

120

140

Units

Projected Sales ($)

Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 $-

$200.00

$400.00

$600.00

$800.00

$1,000.00

$1,200.00

$1,400.00

Sale

s

Projected Amounts Explained

Information we used to expect these numbers◦ Survey◦ School Calendar◦ When we expect students to be at school◦ Events (Ex. Basketball, and other school planed events)

Best Case 100% Sales on Normal prices

Sales ProfitPercent of

Profit

Sunglasses $500.00 $281.80 7.78%

Towel $2,000.00 $1,150.00 31.77%

Hat $1,500.00 $805.00 22.24%

Card $1,500.00 $1,383.00 38.21%

Total $5,500.00 $3,619.80 100.00%

Break EvenBreak Even Cost

Sales in Units Percentage

Per Week

Sunglasses $218.20 44 43.64% 6

Towel $850.00 43 42.50% 6

Hat $695.00 46 46.33% 7

Card $117.00 23 7.80% 3

Total 22

Late Shipment

Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Total Average

Total $- $1,325.00 $850.00 $475.00 $375.00 $500.00 $775.00 $1,200.00 $5,500.00 $687.50

Percentage 24.09% 15.45% 8.64% 6.82% 9.09% 14.09% 21.82% 100% 13%

Withdrawing a Product

*This is if all units are sold

Total Cost Percent of Profit

Percent of Total Costs

Sunglasses $218.20 7.78% 11.61%

Towel $850.00 31.77% 45.21%

Hat $695.00 22.24% 36.96%

Card $117.00 38.21% 6.22%

100.00% 100.00%

Contribution MarginContribution

MarginSunglasses 56.36%

Towel 57.50%Hat 53.67%Card 92.20%Total 64.93%

ProfitNon ship

Cost QuantityShipping

costCost per

Unit Selling GrossTotal Cost Sales Profit

Sunglasses $2.182 100 $- $2.182 $5.00 $2.82 $218.20 $500.00 $281.80

Towel $8.50 100 $- $8.50 $20.00 $11.50 $850.00 $2,000.00 $1,150.00

Hat $6.95 100 $- $6.95 $15.00 $8.05 $695.00 $1,500.00 $805.00

Card $0.39 300 $- $0.39 $5.00 $4.61 $117.00 $1,500.00 $1,383.00

$18.02 $45.00 $26.98 $1,880.20 $5,500.00 $3,619.80

Other Costs $749.80

Total $2,630.20

Financial Ratios

Inventory Control • Storage site: Company member's house• Located just north of MSU campus• Secured by lock and key• Only accessible by the two Inventory Managers• Homeowner's Insurance

• Distribution and Transportation• Inventory Managers

• Return Policy• Excess Inventory - DreamCloset

Cash Management (Cash) •Deposits made into United Prairie Bank account

•Change: Start each day w/$100

•Develop spreadsheet w/Inventory Management to record cash and credit

transactions.

•Cash box will be stored at the residence of the cash manager

•Cash box will only be accessible to the cash managers

•Deposits will be made daily by the President and VP

Cash Management (Credit Cards)•Using Square Reader technology to complete debit and credit transactions

•Square Reader is a system that sends the money from purchases to our UPB

account and record each transaction

•Using the spreadsheet created with the management team to double-check

the transactions/ record

•Will teach team at large meeting how to use Square Reader System

Checks and Website Not accepting checks

Website will be informational only, no sales will be made through it

www.mnstateofmind.com

Charity GoalsProjecting to donate

approximately $2870 to St. Jude Children's Research

Hospital That amount is going to be matched by Abdo, Eick &

Meyers, LLP. (Up to $2500.00)

Volunteer Hours• 250 Total Volunteer Hours• 10 per person

• Volunteer opportunities include• Mankato Home Fire

Campaign• Pedal Past Poverty• Backpack for Food Program• Noon Feeding Program

Thank you

We look forward to your questions and concerns!