Wednesday September 19, 2018
Social entrepreneur club notes and agenda
1. Who am I? John Sortino is the founder and former CEO of The Vermont Teddy Bear Company (VTBC). Within 15 years, John turned a peddler’s cart business - making teddy bears - into a $100 million stock public offering. During John's tenure, VTBC was named one of America’s fastest growing companies three years in a row by Inc. Magazine, “Best Customer Service in New England” by NECSR, and the “Best Company in America” by Dunn and Bradstreet, Coopers and Lybrand (now PricewaterhouseCoopers) and The National Foundation of Independent Business People. Also under his pioneering leadership, VTBC received the Yankee Award for “Best Public Relations.” John was also named to the top 100 marking people in Advertising Age. John’s book, “The Completes Idiot’s Guide to Becoming a Successful Entrepreneur” has sold over 55,000 copies. He is also the founder of The Chicago Bicycle Company and is frequently invited to share his expertise with a variety of audiences such as college and high school students. He has also developed a course in Guerilla Marketing, which he taught at the Learning Annex in New York City. John spent two semesters at a community college teaching marketing. He served as a marketing consultant to many businesses. He has 3 children, and spent 16 years as a little league baseball coach. John is currently the CEO, founder of Business Plan Pathways. Bussinessplanpathways.com
2. Why do I do this? A) I believe that students can make enough money to pay for college by doing this. B) I love teaching entrepreneurship because it is the best job you can get..in the world! C) To promote the school and make it famous.
3. What is the new company and what are we going to do with it? The new company, for now, is called ST. Joseph’s Bread Company. We are going to create 1,000,000 shares of stock, 500,000 goes to the students who participate in the company, 100,000 will be used to raise money for the new company and 100,000 shares goes to me.
You are being asked as your first task to put a pitch together in front of Business sharks from Boston in how you would run the new company. The best pitch wins and that team will run the new company. James Dowd, is the board member who suggested this idea, he is a large owner in the largest minority owned bakery in the USA, http://www.signaturebreads.com. Perfectly Par-Baked Bread Wherever You Are. Parbaking is a cooking technique in which a bread or dough product is partially baked and then rapidly frozen for storage.
I have pitched the idea to Tom Nunan to take over the storage building. He did not say, no, so I think we will get it. We will work and run the business from that building. Once we begin to make a profit, then you will decide how much to pay yourselves.
4. Stock explained. To begin, all the stock in the company has a 1 cent value. The value will go up when our profits go up, and when we put together a great board of directors. I expect the stock to be worth over 1 dollar in one year and it 5 years it can go as high was we dream.
5. one Formula
Sales – (Cogs + Marketing and sales + Administration costs) = profits Cost of goods sold will remain steady along with admin cost, but the marketing and sale cost is the hard one that is the challenge.
6. Monday meeting will mostly be to ask questions ….one on ones… Wednesday is the important meeting, with pizza or other foods.
7 Watch the 4 videos for homework…short ones..Four Point Triangle Videos,
CMO - Chief Marketing Officer, COO – Chief Operating officer, CFO – Chief Financial officer and CEO – The Boss
All four parts of the Traingle
Marketing and sales
Head of Administration
In Charge of the operations, from ordering to shipping
The Shark Tank Pitch contest
Winning team rules and runs the new company.
You must have 3 or 4 in your pitch
You must cover all areas of the 4 point triangle.
CEO starts and gives the one minute elevator pitch
CFO is next showing pro-form financials for Profit and loss, Balance sheet, and cash flow statements and number of stock in the company,
Next CMO gives the marketing and sales plan for the new company
COO is next with how the company will operate
CEO closes with closing statement like “we are confident that we can run this company and hit our goals. State goals. Then what the offer is. For example; for 15,000 we are offering 100,000 shares of stock. Then give them all a hard copy of your business plan.
You must watch the videos on the web site that explains all the 4 roles of the triangle.
You can use PowerPoint or tripod presentation and or any other props like example of the product.
When you do the actually Shark Tank Pitch look as business like as you can. Hand out business cards.
At the end give them a hard copy business plan.