TEF Business Plan/Proposal Summary Template to Prepare your TEF $5000 Grant Business Plan and Pitching for 2022

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Something for ATTENTION of all

1. The deadline for your business summary submission is June 25th

2. Your business summary must be 4 pages maximum

1 page for cover

And

3 pages for all other

Pls, don’t let you write up exceed 4 pages. If you do, then you are already out of the competition because you have violated the Tef instructions and requirements.

Business Forecasting and Planning – Required for Pitching 

Tell us what stage you are in your business. Is it still an idea, or do you have a prototype? Are you testing your markets with surveys or a pilot version of your offerings? Or have you started manufacturing / offering your services? If so, tell us how long you have been in business and what are your key business achievements till date. Not more than 150 words

1. What is the problems I am trying to solve

2. When and where does the problem arise

3. What causes the problem

4. List some symptoms of the problems

When you seat down, and you do this exercise, you will then really understand the problem you want to solve.

So, when you begin to form idea in your mind about the business you want to do, the first thing  you should do is

1. to immediately identify who and who are your potential customers. After that

2. It is critical to understand a specific problem that is experienced by your potential set of customers

You may have the perfect solution already, but it is unlikely that your customers we want your already design solution.

Most start up fail because they commit to a particular product or service (Solution) to early before the founders really understand their customers, or the size of the market

3. Now, you need to first identify the problem you want to solve, and focus on it, later we will focus on solution

To know the problem your business want to solve, answer the following questions.

You could say, I expect to sell my product or service to 1000 users in a year

Cost of operations per year could be $2000

Total revenue (total sales) per year could be $ 3000

Net income = total sales-total cost of operations

Net income= 3000-2000=1000

Profit margin =net income/ net sales

1000/3000= 0.3*100

Profit margin = 30%

SOLUTION 

This class will focus on how to provide a solution to the problem you have identified . I.e. problem your potential market is facing and need urgent solution to.

PROFITABILITY in 50 words

Tell Tef how many customers you are assuming or projecting would have bought your product or service in a year.

To a tailor, you could say 500 customers would have patronized you

To shoemaker, you could say, you projected 200, 000 people would have bought shoes from your company.

What is the price of one pair of shoe, let say $500

So now, draft your answers for Tef in this format

Sales projection: 200, 000 customers per year. Price per product is $500. My total sales per year is 200,000 * $500= $100, 000,000

Assume total cost of production is $56, 000, 000

Note: 

this cost include cost of everything such as raw materials, rent, utilities, salary, etc

Net income = total sales – total expenses

$(100,000,000-56,000,000)=$44, 000,000

Profit margin= net income/total sales

44,000,000/100,000,000= 0.44

In percentage, 0.44*100=44%

In your company, your profit margin over a period of one year is 44%.

In my own Market,

Population Size – 1,000,000

Target Market Area Size- 120,000

Then I said if I sell to at least 15% of my target market = 14, 400

(if your price of product/service is $20)

it means 14,400 * 20 = *$288,000* (this is your size of market in currency)

MARKET SIZE in Dollars

Your market size could be big or small, but what is asking you is market size in dollars, meaning how much would you have made in the market space over a period of one year.

So, go about it in the manner

Tell TEF

I assume the price per product or service tender by my company in the market will be $200

And if I sell my service or product to 20, 000 customers per year

This means your company has a market size of ($200 * 20,000)= $4,000,000

So, your market size in dollars per year is then $4,000,000.

PRICING

Draft your pricing 20 words like this

I charge 1 dollar (#460) per product. This low price is because we are new in the market space and to gain market-share

This sample pricing above can be adapted to your state.

What is important is let TEF know why you are charging the price you are charging. Yours price charging could be because you are the monopoly to your market, maybe you over values others don’t over.

Whatever is the reason you are charging your current price, state it. Remember price will always change, but why you are charging your current price, just state for TEF because that is the question they asked you.