Question

You are an entrepreneur who is starting their own business. Devise a short “business” plan which describes your product, and your first year of operations. Your goal is to break even within your first year, how much of your product and at what cost do you need to sell it in order to achieve your goal?

my product is leaf cleanup machine $115.00 a piece

Answer 1

Business Plan to describe your product

1. The first Important thing to describe your product leaf cleanup machine is how far better from competitor's product.
2. You have to differentiate your leaf cleanup machine from the all other product available in the market. What are the similarities it have with all other product and which are the unique features and thing its have from all other product available in the market.
3. If you own any patent, copyright, trademark you have to describe it.
4. If your leaf cleanup machine is new and not established in the market to the market you have to describe its usefulness to the market.
5. You have to talk about price of the product & services you are going to charged and breakup of it. If there is lower price leaf cleanup machine available in the market you have to compare quality of product provided by you and your competitor and justify your price in compare to quality you provided.
6. You have to mention special technology if any used by you which enable your product more capable & efficient.
7. You have to focus on the benefit you are passed to customer through your product.

First Year of Operation concentrate following thing

• During first you you have to concentrate on mainly customer feedback of the product.
• Which types of difficulty customer faced during use of the product.
• Which type of addition they required? And how it affects your costing
• Maintenance required by product during one year.

Break Even Point - Break even point is describe situation where company situated at no profit and no loss.

• For achieving break even point we have to sell the product which cover the cost equal to total cost of the product.
• Total cost of the product contain two part fixed cost and variable cost. Variable cost is the cost which directly related to every unit of production where as fixed cost is fixed for the period irrespective of number of units you produced.
• Here Leaf clean up machines cost is $115 a piece so you have to sell the number of product that fetch cost of the machine $115 at least to rich at break even.