Urban Innovation21 Small Business Grant Competition

Info Session 3Your Application

Deadline

April 13th , 2013 The Business Plan Summary Due.

Homewood Library 10:00 AM to 12:00 PM

If you need assistance your business plan summary please book an appointment today.

The Cover Letter

Concise. Who, What, Where, When, Why and How

Clear. Use language that everyone understands. Don't use

fancy words. Make it easy for you reader to understand you.

Powerful. Use action words. Grab your readers attention!

Visual. Use words that create a visual image in your readers

mind. This will make your message memorable.

The Cover LetterTell a Story. A short story, that is. A good story is essentially this: someone with a problem either finds a solution or faces tragedy. Either type of story can be used to illuminate what you do.

Targeted. Your readers are judging the logic of your business plan and your argument for our investment.

Goal Oriented. Your cover letter has one purpose in mind, for our judges to remember you and consider your business plan summary.

Has a Hook. This is the element that literally snags your readers interest and makes them want to know more. This is the phrase or words that strike a chord in your readers.

Cover Letter Pitch Practice

• Form small groups of three;• Pitch your business;• Tell each other what was good and what could

be better;• Pick one pitch to present to the whole group

Questions and Answers

Marketing Strategy Example

What a participant submitted:“will create a marketing mix that includes competitive price packaging; incentive referral promotions; website TIPS registration, repeat promotions through social media tools including LinkedIn, Facebook, YouTube and Twitter. Effort will be made to reach the seven touch rule with potential customers.”

Marketing Strategy Example

Be Specific / Simplify / Substantiate / OrganizeCustomers can purchase our services as a package for example 7 days for $250 and receive discounts based on frequency, for example, 8th day is free;If a customer sends a referral that becomes a customer than they can choose to receive one free day or 25% on the package of their choice;

Product, Place, Price, Promotions

Operations ExampleBe Specific / Simplify / Substantiate / Organize

Examples:Our inventory will begin with 400 gowns.

We will purchase a high quality point of sales equipment to track inventory, payments and establish a customer database.

Demonstrate that your operations support your sales growth and business viability.

Capitalization and Finance

• Explain sources of capital;• Explain the use of capital;• State important assumptions;• What are you business assumptions?

– Sales forecast– Operating costs assumptions– Profit assumptions

Capitalization and Finance

Example:Our grant request is for x dollars. Our project budget is x dollars. The projected sources of capital are, personal equity %, loans or line of credit % and grant funds %. Sales will improve by amount of % or $$;Operations new equipment, repairs to existing, what are the costs? Benefits?We will reach break even point after number of units or customers; Our profit margin is estimated at % or $$.

Capitalization and Finance

You will need to:• Set a grant budget;• Project your revenues;• Identify your fixed costs;• Identify your variable costs;• Complete a break even analysis

Capitalization and Finance

Other sources of capital:• Bridgeway Capital• URA Small Business Loan Programs• Credit Unions for example,

– Hill District Credit Union• Zip Kiva https://zip.kiva.org/• You will need personal tax returns and a

personal financial statement

Questions and Answers

Please complete workshop evaluation form