This are the pictures for knowing about Frank!!
You will be assisting Frank as he manages his business. This will encompass a wide array of business decisions and will include an emphasis on helping Frank understand and manage his finances.
The project will have 3 parts and will have both individual and class-wide contributions. The group activities will take the shape of broad thinking, brainstorming and collaborative efforts. The individual activities will be more focused and will build on previous knowledge from your own personal/academic/professional experiences.
Part I
As a class: Brainstorm the assets Frank will need, and the expenses Frank will likely incur to start, run and maintain his hot dog cart business. This will take the form of a group discussion forum and will be due during this week.
As an individual: Frank is going to pursue additional financing from the local bank. The bank will require some insight into how Frank’s business will be successful and sustainable. Prepare a short write up (approximately 1 page) explaining to the bank why your (Frank’s) business will be viable. Submission could include (but are not limited to) location, time of year, target consumer, pricing, anticipated sales volume, and what makes your hot dogs special.
The completed draft of Part I will be submitted as an individual assignment by the conclusion of week 6.
For example: “I take night classes at a university so I can make myself available for my target consumer – the ever-hungry college student. These students are voracious hot dog connoisseurs and are looking for the next level of pork perfection. This is where my business stands out. I will provide a high quality, low cost weenie that will leave the consumers satisfied. For less than $5, I will give the taste buds of my customers an experience to remember and leave them clamoring for the next connection with my carnivore’s dream. That is not all, I have also secured a vendor partnership with a local tofu-doggery where I can provide the means to satiate the appetite of the vegan population as well. My cart is earth conscious and is powered by recycled hot dog leftovers. This new composting technology, coined “dog-posting” also creates an aroma of hot dog deliciousness that will draw the crowds from afar.”
This brief writes up is an exaggeration and can be scaled back or built out to demonstrate where you want to differentiate your submission. This was meant to show you that this can also be a fun exercise and you can get creative with your (Frank’s) new business.
In addition, prepare DRAFT estimated financial statements for the bank to consider.
Use this template: Hot Dog Cart Financials.xlsx
The financial statements are going to be basic and will build on your fundamental knowledge from the first three chapters of the book. You will provide
-
- A basic income statement showing your expected sales and expenses (less than 1 page in total).
- A partial balance sheet that will list the types of assets you need (less than 1 page in total). You should include the following items [cart, hot dogs, buns, mustard, ketchup]and add up to 5 more of your own choosing.
You can use the assets and expenses that were discussed during the week 3 group brainstorm on part I of the project. You may also want to refer to the following sites or do research on your own to get some idea of basic pricing.
- http://www.viennabeef.com/hot-dog-university
- http://amazingribs.com/recipes/hot_dogs_and_sausages/starting_a_hot_dog_stand.html
Part II
Assess your business:
Fast forward a few months…Your friend asks you how your business is doing and you are unsure how exactly to answer. In fact, you are not necessarily sure how your business is going since you are so new to this! This part will help you organize your thoughts and come up with a more formalized process and financial reporting can help you demonstrate your success (or lack thereof!). More details on Part II in the upcoming weeks.
Part III
Next Steps:
You had a successful first year. What would you have done differently? This part will allow you to reflect and propose a “next phase” transition – such as do you expand, change pricing, or continue as you have been. More details on Part III in the upcoming weeks.
All in 5 pages
