592 Technology: Engineering Our World Copyright Goodheart-Willcox Co., Inc. The class should make a brief presentation to the mentor using the short business plan. Include the following points: • State the name of the proposed company provide a brief description of the product to be made. • Explain why this type of business interests the class. • Explain the type of product and how it will be made. • Describe the advantages of the product over the competition. • Describe the qualifications class members need to operate the business. • State the proposed selling price of the item and the expenses to make it. Schedule 30 minutes after your presentation to listen to the mentor’s suggestions. Later, discuss the mentor’s ideas and modify the proposal before you begin work on the detailed business plan. Avoiding Pitfalls A detailed, well thought-out business plan is vital to avoid some of the common causes of business failure. In fact, the process of creating a detailed business plan forces you to pay attention to all aspects of the company, including possible pitfalls. One primary reason businesses fail is lack of research. It is important to learn all about the proposed product or service. Now is the time to think about unique selling points (USPs). What will set your product apart from the competition? Financial problems are a second reason for failure. They can occur if you do not have enough capital to start. They can also be caused by not having enough cash fl ow to operate the company until the product begins to make a profi t. Poor management, failure to control costs, and failure to collect money owed to the business are other reasons for fi nancial problems. If the product does not meet customer needs, it will not sell well. Research into customer wants and needs is essential to avoid this pitfall. Finally, not having enough staff or having staff without the necessary skills can result in business failure. Think Green Think Green Many opportunities exist for environmentally friendly products and services. If you select such a product for your school-based company, you can help your school and community at the same time you practice running a business. After you brainstorm product ideas, test each idea for its “green quotient” by asking the following questions: • Can the product be made from renewable resources? • Can the product be made without the use of chemicals or processes that will harm the environment? • Will the finished product be biodegradable? If not, what plans could be made for reuse or recycling? Green Product Analysis