Agenda for Thursday 12/20

by | Dec 20, 2018 | Agenda

Today’s agenda is:

1. Discuss the pitch process and how to invest in startups

2. No panel due to time — I will call on students to ask questions (3 questions)

3. Order of presentations

Team 1 Team 2 Team 3 Team 4 Team 5 Team 6 Team 8 Team 9 Team 10

4. Complete Investment Bid Form if you are interested in investing

From Startup Costs to Investment Request

by | Dec 19, 2018 | Uncategorized

Here is an example of the startup costs for our hypothetical startup called Just Chocolate.

I begin with asking the question: What are the costs to sell an item to a customer?

The list:

  1. Raw material to make the chocolate candies
  2. Packing Materials
  3. Space to make the candies
  4. Workers to make candies
  5. Website to process orders
  6. Website to advertise
  7. Shipping candies
  8. Sale people
  9. Video people to create videos of communities

Now that I have a list of the costs, I need to make some decisions:

I don’t want to build a factory to produce chocolates, so I will need a partner that will take care of making the candies.

I also need to hire a sales person to go out to schools and get sales.

I also need to create a website that allows customers to place orders and get information about the company?

I also need to hire a company that will create content marketing videos about the candies and the communities that the company works with.

I will add the shipping costs into the price of the product so shipping is free to customer.

Based on these decisions, its time to research the costs of each the above costs.

500 boxes of chocolate candies @ $20,000
1 sales person @ 50,000
Web development @ $4,000
Video Production @ 10,000

Total Startup Costs

$ 84,000 dollars to startup this venture

The next question is: what percentage of the startup am I will to give up to raise this investment capital?

My request to investors will be: an $84,000 equity investment for 50% of the company.

This means the startup is worth $168,000 dollars