[MUSIC] Okay, so when you're done with the basic marketing ideas, you should decide on the big question, how much money do you want? If you were writing a real business plan, you would need to include several financial documents and explain your financial situation in more detail. For this project, however, you should just decide how much money you are asking for, what you will use it for, and what you will give your investors in return. For example, you might want $10,000 so that you can increase production and sell in a different location. In return, you will offer a 20% share in profits over the next three years. If someone is going to invest their own money in your idea, they want to know if you're going to make any money for them. To persuade the investor that they will get a return on their investment, you want to show them how much you think you will earn. To prepare this information, answer these questions. Don't worry about being accurate, you can just make it up or guess. One, how much will you sell in the first year? Two, how much sales revenue will you have in the first year? You could calculate this by multiplying the price of your product for example, by the number of units you think you will sell. Three, what are your costs for the first year? For example, how much will you spend on making your product? By subtracting you total costs per year from your total sales revenue, you get your profit. You might guess that you will make a profit in the first year, but maybe you will just break even or have a loss. Now do the same for the next two years. Do you think you are going to increase sales in the next year? Do you think your sales will stay flat in the third year? Now, this is a very simple method. And in real business plans there's a bit more that you need to consider in order to make accurate predictions. And if you predict that you will have a loss during the first three years, then your pitch won't be successful, so you'll probably need to reevaluate your numbers. Okay, so we've talked about creating a simple market analysis, a marketing plan, and a financial plan. Now use some of that information to create one or two charts that you can include in your presentation. For example, you can use a pie chart to describe your target market or your competitors. Here is a simple pie chart, showing the market share of cell phone operating systems in 2015. As you can see, Android has the biggest share of the market at 50%. You can make a bar chart or line chart to show your predicted sales and profits for the next three years. In this example, you can see a bar chart showing predicted sales for the next three years. You'll see that we predict sales will increase steadily over the next three years. And here is the same information in a line chart. Remember, you can make these charts in programs like Word or PowerPoint. When you're finished creating your charts, review the lessons about reporting on data, describing graphs, numbers and trends. Then, practice describing your own charts. Okay, for this milestone, you will share your marketing ideas, price and financial information in the discussion forum. Have fun doing the research. [MUSIC]
