Learn and Earn Project

Stacie CulverMaddie Hartle

Sketch It UpBlackman High School DECA

Blackman High School3956 Blaze Drive

Murfreesboro, Tennessee, 37167

April 27, 2011

TABLE OF CONTENTSI. EXECUTIVE SUMMARY I

II. INTRODUCTION 2

III. ANALYSIS OF THE BUSINESS SITUATION 4

A. Trading Area Analysis 4

B. Market Segment Analysis 8

IV. PLANNED OPERATION OF THE PROPOSED PROJECT 11

A. Proposed Organization 11

B. Proposed Product/Organization 15

C. Proposed Marketing Strategies 17

D. Projected Budget 191. Projected Operating Budget 192. Rationale for Projected Budget 20

V. OUTCOMES 21

A. Project Implementation 21

B. Learning Outcomes 24

C. Earning Outcomes 25

D. Recommendations for Improving the Project 261. Recommendations for Future Projects 262. Plans for Improving Learning and Earning Outcomes 27

VI. BIBLIOGRAPHY 29

VII. APPENDIX 30

I. EXECUTIVE SUMMARY“Ohana means family. Family means no one gets left behind. Or

forgotten”

—Walt Disney’s Lila & Stitch

Wow. We GRADUATE this j’ear! This exciting thought consumes us as we think of the futureand what awaits us. However, as our excitement rises, we can’t help but be saddened by what we willbe leaving behind: our ‘Ohana’ in Sketch It Up. As said by Stitch, Ohana means family. Our familyis not the usual type; there are fifteen brothers and sisters in our family with one amazing DECAadvisor and personal mentor (who, in reality, has become a second mother to us). Together we haveencountered many trials and tribulations, but most of all, we have persevered. To be a family is topersevere. Each time we felt as if we could not continue, we found strength in one another. With thisstrength, we continued toward our goal of making Sketch It Up as successftal as possible.

We must admit; it has been a brutal learning process. We were students thrown into thebattles of entrepreneurship without a realization of the dedication and work that this project woulddemand. However, as the year has progressed, we have learned many things that we can carry withus into our future. We have learned the art of communication, compromise, dedication, and mostimportantly, how to run a business. While Sketch It (io is definitely an extremely successfulenterprise created by students, we feel that it should be regarded as something much more: a family.We take pride in being a part of this family and will always remember our ‘Ohana’.

- Maddie ilartle and Stacie Culver

Sketch It Up is a student-run business that provides coffee, cappuccinos, and smoothies tostudents and teachers within Blackman High School. Other than providing the fttel behind thisinstitution’s productivity, we also supply teacher and students with unique, quality graphics anddesigns in the form of posters, charts, and a range of other creative project facilities. Sketch It Up isuseful and luxurious in offering the tools and energy to students and teachers throughout their day.We are a complete, one-stop Kinko’s/Starbucks enterprise with all you necd for a successful day. Areyou in need of some creative project administration? With our Chamber of Commerce membership,Sketch It Up is now open to the public, and has begun serving the Blackman community.

Such successes of Sketch It (4i have not gone unnoticed; After our debut ribbon cuttingceremony, Sketch It Up has worked hard to become a pace-setter learning facility in Blackman’smarketing and business program. As a result, we are proud to have earned an award from theTeimessee State Board of Education in December 2010. Although Sketch It Up is still in its youth, itwill continue to be a staple within Blackman High School, and the surrounding community, for yearsto come.

MISSION STATEfrNT:At Sketch It Up, design has no limits.

Where graphics and supplies meet your style and expectations.With a purpose to provide teachers and students with artistic consultations;

students manage and create divine graphics for the Blackman family.We are a reliable business that creates designs for you, by you.

As you read about our business, we hope that you can include yourselfin our passions and achievements and become a part of our ‘Ohana’.

II. INTRODUCTION

Sketch It Up is an innovative student run business located in the heart of Blackman High School

in Murfreesboro, Tennessee. Established and employed by Entrepreneurship II students, this café!

Kinico’s hybrid offers creative project administration,

school supplies, and freshly brewed coffee products for

students and teachers alike. The inspiration for Sketch It

Up was brewed fiom two very succcssftil business

proposals from previous written events. This initial idea

expanded into the desire for the Blackman DECA

entrepreneurship program to obtain a functioning

business in which students could gain knowledge and

experience.

During the creation of Sketch It Up, students worked to prepare the store for the upcoming

school year and established a store handbook, rules, and procedures for both the coffee production

and design center. Ann Stewart is the DECA advisor and teacher of Sketch It Up, Entrepreneurship

II students. She has worked all year alongside the students in order to make Sketch It Up the

successful business it is today. Mrs. Stewart has been an influential and crucial leader in the

establishment process, and contributed greatly to Sketch It Up’s success. After the class spent a

majority of the summer creating the store, the opening of Sketch It Up brought with it a great amount

of interest from the student body and Blackman community.

Sketch It Up operates before school and during all three rotations of lunch during the school

week. We directly serve students and teachers their desired coffee products on the café portion of the

store. Also, during operating hours, students directly meet with teachers and students in designing

bulletin boards, posters, and other creative projects from the Design Center. All other time spent in

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the store is used to carry out Design Center orders, in creating promotional incentives, and in the

general cleaning and maintenance of the store. All profit from these two aspects of Sketch It Up go

directly back into operating the store with all additional profit returning to Blackman DECA for

competition fees for State and National conventions.

The store operates under a rotating management and position schedule that appoints a

manager, assistant manager, and department employees every six weeks. Additionally, students take

six week shifts in operating the store before school opens from 7:OO-8:l5am. Our advisor and the

store’s Senior Executive Consultant, Mrs. Stewart, appoints the manager and assistant manager.

These individuals have attained this position from a clear dedication to the store, from organization

skills, and the ability to supervise his or her peers effectively. The assistant manager then takes on the

role of manager for the six weeks following his or her original shift. Employees likewise rotate in

and out of each of the three departments: Café, Project, Finance, and Promotion. This cyclic position

process was chosen to allocate as many divcrse positions to each of the sixteen students in order to

attain the frill experience of running a busincss (For position chart and management rotation

overview, see pages 13 and 15).

By the end of the first semester of the school year, Sketch It Up had successfully paid all

initial start up fees and contributed an estimated $1,754.44 towards DECA competition fees By the

end of the school year in June, Sketch It Up is expected to have made $5,273.38 in profits. In

addition, Sketch It Up was fornally invited to become a part of the Rutherford County Chamber of

Commerce and had the privilege of hosting a ribbon cutting ceremony in October. These immediate

accomplishments not only surpassed our expectations, but also inspired the class as a whole to

continue our efforts and persist in making Sketch It Up a staple at Blackman High School.

“I think that the biggest achievement of Sketch It Up is shown in your success;kids our age being able to make a tangible and functional business is truly uniqueand inspiring.” —Natsumi Mariner, Customer

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III. ANALYSIS OF THE BUSINESS SITUTATION

A. TRADING AREA ANALYSIS

Sketch It Up is located immediately outside of the Blackman High School cafeteria.

Positioned in the center ofBlaclanan, the store is a focal point of all students throughout each day.

Because of this, Sketch It Up is easily accessible and well known throughout the Blackman

population of roughly 2,200 students. Blackman High School in Murfreesboro, Tennessee is one of

seven high schools in Rutherford County and is approximately twenty five miles from Nashville, the

state’s capital.

Because Sketch It Up is a smdent run business located within Blackman, the target market is,

for the most part, aged 14-18. In addition to students, Sketch It Up also caters to the needs of

teachers and staff. We have found that generally the café department caters to the student market,

while the project department serves the teacher populous. However, both teachers and students enjoy

the services and products we offer.

Entrepreneurship II is responsible for Sketch It Up ‘s productivity and success.

Entrepreneurship IT is a new class for the 2010-2011 school year that is an exciting addition for the

business and marketing programs. Marketing courses at Blackman High School are run with the idea

that students learn best from hands on experiences and implementing their own projects. Throughout

all four years of high school, students have the opportunity to take Marketing courses. These courses

include: Travel and Tourism, Exploration of Marketing, Marketing I and 11, Organizational

Leadership, Sports Entertainment, Hospitality and Management, Retail Operations, and

Entrepreneurship I and II.

In addition to Marketing Courses, Blackman High School has a multitude of Advanced

Honors and Advanced Placement courses available. Advanced Placement courses include, but are not

limited to AP English III and IV, AP United States History, AP US Government and Politics, and AP

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Chemistry. Furtheimore, the BHS Honors Program is a program devoted to preparing students for the

highest level of post-secondary education. To gain acceptance, students must talce a minimum of

three classes at the honors level or above for each of their four years at Blackman, have no out of

school suspensions, and pass all Gateway Exams before entering theirjunior year. Students that

graduate are recognized with Summa Cum Laude, Magna Cum Laude, and Cum Laude honors based

on their GPA from highest to lowest, respectively.

Blackman High School is also a High Schools That Work Site (HSTW). This program

believes that students learn better if they are motivated to make an effort to succeed. With this project

in place, Blackman High School is instituting a culture of high expectations for students and aims

toward continuous improvements. The implementation of HSTW at Blackman brought about the

advancement of two grade levels in reading and mathematics and three grade levels in science

between 2002 and 2004. These great strides have been made through Grade Recovery Programs as

well as the creation of a Freshman Academy. Through HSTW, Blackman High School has earned

one of only twenty-five Pacesetter Awards distributed nationally on two separate occasions. Also, in

2003 Blackman was named a National Model because of the successful implementation of the High

Schools That Work program. To achieve this honor, Blackman had to have 35% of students meet at

least one HSTW readiness goal, complete on or more parts of the HSTW curriculum, and achieve

‘high implementation’ status. Blackman goes above and beyond the criteria by having a graduation

rate of9l.8%.

Along with Blackman students, the Blackman community is proud of the fact that we, as a

whole, are extremely successful. Blackn5an High School is surrounded by a multitude of

communities and welcoming families. The Blackman community is well known in Rutherford

County as a superb place to raise a family. Children start as Embers at the Blackman Community

Daycare and work their way through Sparks, Flames, and eventually become a Blaze at Blackman

High School. Along with a wholesome environment, the Blackman community has taken many great

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strides throughout the past decade. Rutherford County is the fifth largest county in the state and the

20(h fastest growing county in the nation. Mur&eesboro is accountable for 100,798 of the 255,239

residents in Rutherford. With over one third of Rutherford County residents living in Murfreesboro,

the community is growing rapid!y. In 2007, a new shopping center opened. The Avenue,

Murheesboro is a $140 million, 808,000-square-foot open air retail center featuring big-name

retailers such as Barnes & Noble, Best Buy, Dick’s Sporting Goods, Belk, New York & Company,

Talbots, Jos. A Bank, and more. When opening Sketch It Up, The Avenue was both a threat and a

prospect. With over one hundred stores, the idea of opening a small printing and coffee business in

such close proximity was intimidating to the students of Entrepreneurship II. On the other hand, we

were very hopeful that this close proximity would allow a profitable business relationship with such a

strong partner Our fears of a rival diminished as we found The Avenue to be a great partner with

Sketch It Up and with our school. As the outdoor shopping center held a contest for Blackman

teachers, we found ourselves busy with the promotion of the event. The Avenue bought 250 flyers

and posters from Sketch It Up. The publicity of our student-run, in-school business brought new

business from all over the county. As a direct result of

this publicity, we expanded even larger to include

making signs for other schools and institutions within

Rutherford County.

With this undertaking, the target market of - •

Sketch It Up also expanded. In the beginning of our endeavor, we had a goal of serving all students

and teachers of Blackman. All mass promotions were aimed towards teenagers aged 14-18.

Simultaneously, we ran small promotions that were aimed towards pulling in faculty and staff of

Blackman High. As Sketch It Up expanded and began selling to outside customers, the target market

also grew to include companies and other schools within Rutherford County.

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Present competitors include On The Run, a gas station located down the street from

Blackman High School. At this gas station, Cappuccinos and Iced Coffees are sold at a competitive

price. The comparison chart (below) outlines these price differences:

Products Sketch It Up Price On The Run Price

Iced Coffee $2.00 $1.95

Smoothies $3.00 $1.19

Coffee $1.00 $1.09

Cappuccino. $2.00 $1.19

Although our prices tend to cost more, our products have a great advantage over those of the

local gas station. For example, the smoothies provided by Sketch It Up are not continuously churned

slushies in an industrial machine but rather real fruit smoothies made to order. After opening Sketch

It Up and viewing the successes we encountered over the first

two weeks of business, we realized that competition from On

The Run is virtually nonexistent. Although some students still

choose to buy their coffee products from outside sources, an

overwhelming majority of students purchase their morning

beverages from Sketch It Up. This can be attributed to the fact

that the store is located within the school. Customers do not

have to make extra stops on their commute to school and can

grab a cup ofcoffee while waiting for school to begin.

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SWOT Analysis:

Strengths: Weaknesses:-Affordability -Lack of Experience-Accessibility -No Community Storefront

-Customer Relations -Lack of Upper-level Organization-Die Cut Variety -Limited Sales

-Chamber of Commerce Membership

Opportunities: Threats:

-Make a profitable income -Econoi3y

-Expand target market -Recession

-Add to promotions -Local Business Competition

-Expand product line Kinko’s Variety

-Captive Market -On The Run lower prices

B. MARKET SEGMENT ANALYSIS

i. Customer SurveySketch It Up CUSTOMER Survey!

What is your favorite drink? A survey was distributed to customers who enter

____________________________

Sketch It Up on a regular basis. The surveys were placed on

Howmariytimesaweekdoyoucometo the ordering counter so that customers may choose if they wishsketch it tip

__________________________

to complete one. The objective of the survey directed toward

On a scale of 1-10 with 10 being highest, customers is to discover buying behaviors of students. Thewhat would you rate the service of

Sketch it lip? surveyors hoped to discover what the most common drink1 2 3 4 5 6 7 B 9 10

bought was out of the three types: Iced Coffee, Cappuccino, or

Smoothie. Questions included “What is your favorite drink?” and “How many times a week do you

come to Sketch It Up?” These questions are geared toward discovering the most popular type of

drink, as well as the popularity of the store.

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The population of this survey is all customers of Sketch It Up. The purpose of this survey is

to discover buying behavior, in turn helping supply our enterprise with vita! information that can be

used when ordering products and planning promotions. Upon ordering a drink, customers were asked

if they would like to complete a survey while their drink was being prepared. The surveys were

completed on a voluntary basis to ensure that all comments represent what all students think of

Sketch It Up.

The first question on the survey asked each what his or her favorite drink is; the results can

be viewed in the table below:

Type Of Drink Overall Popularity

‘ French Vanilla 5%

LWhite Chocolate Caramel 25%

Caramel-Pecan 5%

S’mores 15%

Iced Vanilla Coffee 10%

Iced Caramel Coffee 10%

[Iced Mocha Coffee 10%

Strawberry Smoothie 20%

As viewed in the table, the majority of patrons prefer the White Chocolate Caramel cappuccino.

This fact supports the data accumulated within the store: on average, the White Chocolate Caramel

section of the Cappuccino machine is refilled twice as much as the other beverages. The second-most

preferred beverage is the S’mores Cappuccino. This item was added to our beverages in November

of 2010 and became an instant success. The two top items being White Chocolate Caramel and

S’mores are of no surprise due to the fact that one is a staple item in Sketch It Up and the other is a

novelty drink that has been a sensation throughout Blackman High School.

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ii. Student Population Survey

This survey was directed toward all sdents at fl*etchItupscHoouwloEsucy!

Do you know what Sketch It Up is?

Blackman High School; these surveys were given to a (circle One)

YES/NO

randomized group of students. The general population survey Have you ever been to Sketch It Up?

(circle one)

asked questions such as: Do you know what Sketch It Up is? YES / NO

Describe Sketch It Up in your own words

Describe Sketch It Up in your own words, and have you ever

_______________________

been to Sketch It Up? This survey was given to fifty students

and it is a great pleasure to announce that 100% of students

_______________________

could correctly identi’ what Sketch It Up is and over 65% of I -

__________

students have purchased products from Sketch It Up. Some examples of the open response question

“Describe Sketch It Up in your own words” include:

‘Great experience evety time you visit!”And

‘The best place to buy a strawberty smoothie!”iii. Survey Analysis

In the future, managers of Sketch It Up plan to continue adding and shifting novelty drinks to

include Jamaican Me Crazy, Mocha Extreme, and Cinnamon Roll. With these additions, the plan of

Sketch It Up is to continue interest of customers by consistently giving them new, interesting reasons

to visit our store.

Additionally, 70% of customers surveyed gave Sketch It Up a 10 out of 10 regarding service:

100% surveyed gave service a rating of 8 or better. Sketch It Up employees work diligently to create

a welcoming atmosphere for all clientele so this amazing approval rating definitely rewards the

efforts put in by the staff. Likewise, the success of the enterprise is proven through the amount of

times a week students visit our store. On average, 75% of customers come to Sketch It Up 2 or more

times in the 5 day school week. This is an accomplishment because out of the many things teenagers

can spend their limited budgets on, they choose to indulge in products offered by Sketch It Up.

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IV. PLANNED OPERATION OF THE PROPOSED PROJECT

A. PROPOSED ORGANIZATION

The idea of establishing a store came to us from the combined business plans from last year’s

written events. The first business plan was Aesthetic Studios, an art gallery and café hybrid that

offered coffee products and art lessons to its customers. The second was Auto Evolution, a car decal

business that was run out of Blackman High School, and that catered to the student and teacher

populous. Hence, the plan for our own, individual “Starbucks/ Kinko’s” blend was imagined in its

most basic form. The first stcp included choosing a name and slogan for our business. Names such as

“The Pink Flamingo” and “The Firehouse” are some examples of the creative

brainstorming that occurred, but after weeks of debating, “Sketch It Up” was

chosen. This name, above all others, represented our ability to create unique

products for our customers, and the slogan “Where Your Inspiration Is Brewed,”

paired with the name harmoniously to incorporate the café

servwes of the business.

After the groundwork was set out for this endeavor,

the real work began. The location for Sketch It Up was

appealing in its highly trafficked hallway and easy

accessibility from the cafeteria. Other than the highly desirable location, this room is perfect for

Sketch It Up because of the three-compartment sink and water lines already engineered into the wall

that allow us to serve beverages in accordance with the Rutherford Country Health Department. In

order to secure the room, an entire department of teachers had to be displaced; in a true team effort,

the class volunteered to help clear out the location of books, shelves, desks and equipment. This was

soon followed by the cleaning stage that required extensive dusting, sweeping, mopping, and

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scrubbing. Next a paint color was decided upon and the walls became a light charcoal gray that

contrasted the green and blue of the Sketch It Lip logo.

The fourth step in making Sketch It Up a reality was to attain

chairs, tables, and counters to furnish our Café. This was a huge

challenge due to the severely small budget of $350 we had to entirely

furnish the store. To work with these funds we turned to one of the most

popular websites for buying and selling junk: Craigslist. After calling,

ernailing and generally harassing multiple local sellers, we were able to

find all of the furniture needed. In this process bargaining was a new skill

students learned while finding competitive prices. While searching, some

potential sellers wanted to help our cause and donated items we needed. For example, Melanie

Davenport at Sprint donated two counters and a hutch to our

cause in the name of education. This donation exceeded S4,000

in value. Over the course of the summer students would manage

the budget as each piece was bought. After these pieces were

purchased, they were painted and decorated. Upon completion of

each item they were brought into the school and accumulated to create the design of the store.

Meanwhile, the grant team searched for and applied to multiple local grants from Wal-Mart,

Sam’s Club, and the Richard Siegel Foundation. Sketch It Up received the Siegel Grant worth

$4,900 that paid for all items needed to begin the café portion of Sketch It Up. All other funds for

Sketch It Up were given by the Rutherford County Board of Education which allowed us to purchase

our two-color printer, full color printer, die-cut machine, and plaque maker for the design center.

As the teacher of Entrepreneurship II, Ann Stewart is the Senior Executive Consultant (SEC)

of Sketch It L’p. She is in charge of administering advice and coaching students in the various

applications of Entrepreneurship. Mrs. Stewart is a key support in running the business as smoothly

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Rebecca ThomasWes Thompson

Blake Doyle

The structure of Sketch It Up places the General Manager as student leader of the store. The

General Manager is the head of each department and meets with each in discussing issues and

offering advice. Due to the new state of the store, the departments must be flexible in the jobs they

cover and the procedures they use to achieve such designated jobs. The business in a sense is a

living, breathing entity that requires constant maintenance and renovation. The General Manager

position is a rolling position that rotates throughout the year. He or she holds this position for a six-

and efficiently as possible. The management chart (Sec below) outlines the structure of Sketch It Up.

This includes manager positions and each of the four departments needed to operate the functions

within the store.

I I

Cafe DepartmentManager

.Maddie Hartle

Product Qualityand Inventoiy

:.flijudej. tAój IWPi

:ttootiófrManager:

Chris Russell

Chad RussellChelsea Hoag

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week grading period and assumes a large responsibility in managing the store. The General Manager,

along with the Assistant Manager, works to improve the inner functions of the store, such as

finalizing student-working rotations (including the assignment of morning shift workers).

Additionally, students are elected for these positions by the Senior Executive Consultant, and rotate

from assistant to general manager after each six-week term. Sketch It Up will therefore have six total

managers every year.

The Assistant Manager is in charge of helping the General Manager in his or her endeavors

for the store. The Assistant Manager works closely with all employees, and often assumes the role of

an employee whenever another hand is needed. The Assistant Manager is responsible also for filling

a morning shift if an empioyce fails to show up, then, if the Assistant Manager is incapable, the

General Manager assumes this responsibility, respectively. The management of the employees falls

directly under the duties of the Assistant Manager. As a result, he or she handles all minor complaints

and dilemmas that are faced on a daily basis.

With this store structure, the General and Assistant Manager overlook each of the three

departments. In Sketch It £v, there is a café department, a printing and project department and a

finance department. Each department has a leader with whom the Assistant Manager meets with

weekly on the progress and production. The project department head is responsible in administering

jobs to each of the five employees and keeping up with project deadlines. The café department head

works closely with the product quality and inventory assistant in ordering products, checking

expiration dates, and ensuring the best product for our customers. The finance department uses

QuickBooks software and logs daily invoices of profits. The café and product departments report

their profits to the finance manager. In addition, they work with the finance department when

ordering more coffee product or supplies.

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As the ycar progresses, more managers and assistant managers are appointed to these

positions. Because of the diversity of students in Sketch It Up, this is beneficial to the store in

allowing many great minds analyze business issues that lead to new and unique solutions.

Some examples of the process of management rotation are as follows:

/Chris

:RusselIft

Assistant Managerto Rebecca Thomas

and consistentopening manager

for three sx weeks

/4

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Jesse McKay4

AssistantManager to

Maddie Hartle andco-creator of the

inventoty andprodtict quality

B. Proposed Product/Service

Sketch It t’ provides coffee products to Blackman High School and offers project services

to BHS and the surrounding community. On a wall in the store, we have a hand-made blackboard

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...

Final manager ofSketch ft Up 2010-

20t year

Lake Summar: FirstGeneral Managerand creator of the

lunch rotationschedule

Assistant Managerto Jesse McKay

Ann Stewart:Senior Executive

Consultant ofSketch It Up

Assistant to LakeSutumar duringfirst rotation and

Genera! Managerdurine the ribborctitting ceremony

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menu with each of our products and prices listed for customers. Additionally, the cappuccino

machine visually represents tile flavors of our regular and seasonal drinks for walk-in customers

interested in purchasing a beverage. The café offers two flavors of coffee (Rainforest and

Guatemalan). up to five Cappuccino flavors, Smoothies, Iced Coffee, and Frappuccinos. The

machine that dispenses Cappuccinos holds five different flavors: year round, Hot Chocolate and

French Vanilla are available while the remaining three are rotated on a six-week basis. Additionally,

Sketch It Lip provides Strawberry Smoothies and on occasion provides Strawberry-Banana

Smoothies. This way, Sketch It Up can provide consistency in our most popular flavors, while also

offering new and exciting flavors that invites

both regular and new customers into the store.

Also, we provide three flavors of Iced Coffee

(Mocha, Vanilla, and Caramel) that can be

sold blended or unblcnded to the customer’s

preference. Both the iced coffee and the

smoothies have the option of having whipped

cream and chocolate topping that is provided upon customer request.

Sketch It Up orders all of the coffee products from S&D Coffee

Company. The eappuecino machine and iced coffee containers are also

of their making. Sketch It Up also works closely with the Institutional

Wholesale Company (IWC) to order strawberries, milk, and whipped

cream. This ordering process was a learning experience for the café department. We had to solidi’ a

schedule that would both allow the products to arrive in time before we ran out of stock, and also in

perfect quantity to ensure the usage of all that we ordered before it expired. Additionally the café

department ensures that all of their products are of the finest quality and has a 100% satisfaction

guarantee.

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The products and service prices for the Design Center are posted in freestanding displays on

the glass counter opposite the café and above the school supplies hub. To help customers understand

the diverse products the Design Center can produce, prototypes of two-color and ftill-color posters

arc exhibited all around the perimeter of the store. Other products, such as designs from the die-cut

and decal machines are likewise presented in various locations. The two-color printer, the die cut

machine, and the cold laminator are all from the VariQuest product line of the Brady Corporation.

The twenty-five inch and the thirty-six inch thermal paper rolls that the two-color printer uses are

also products from VariQuest. The full color printer is from Canon.

The service Sketch It Up provides stems directly from the Design Center. We can help

studcnts and teachers make posters or displays for personal or academic use. For example, we have

both made posters for students in AP English IV and also for Mr. Ledford, the Computer Technology

teacher, as a gift for his son’s birthday. A particularly profitable service in the beginning of the year

was bulletin board designs for teachers in their room.

As the year progressed, we were able to reach out to Rutherford County and attainjobs from

places such as The Avenue, Murfreesboro Toy Company, Lavergne High School, and Smyrna West.

Jobs similar to these are expected to increase, especially with Sketch It Up’s involvement with the

Rutherford County Chamber of Commerce.

C. Proposed Marketing Strategies

Sketch It Up has a promotional team that works within the class structure. This team is

dedicated to creating public awareness of Sketch It Up both within Blackman High School and

throughout Rutherford County. The promotion team’s productions have been shown throughout the

year on BSPN. BSPN is the student run television station at Blackman High School. Everyday,

BSPN broadcasts the morning announcements to each classroom in Blackman High. This way,

Sketch It (/p has been able to remind students and teachers of the products and services we offer, as

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well as any updates on new flavors or product deals. The initial, most informative commercial was

shown during the first six weeks of Sketch It Up’s opening. This commercial began in front of the

store and followed Maddie 1-lartle around the inside parameter of the store and café. She walked

around the store and explained each of the services of the design center, brought attention to the

school supplies, and stopped in front of the café menu, where all of the drink flavors were clearly

posted. The purpose of this commercial was to introduce the Blackman High School population to

Sketch It Up, give a clear location of the store, and outline exactly what the enterprise offers in its

services and products.

Promotion for Sketch It Up outside of Blackman High School is mainly through the

Rutherford Chamber of Commerce The Chamber’s monthly newspaper. PULSE, is distributed to all

members of the Chamber and had honorable mentions of Sketch It Up in the November addition. On

their website, www.ruthcrlordchamber.oru, Sketch It Up is listed under Advertising and Media, and

has a listing that includes our namc, telephone number, email, and Blackman High School’s address.

Also, our web address is located on the Chamber’s website that links potential customers directly to

our page.

Sketch It Up’s website is a useftil center of product infonintion, prices, pictures and recent

events. Not only is this used to ftirther our involvement with Rutherford County, but it also is a page

that outlines our accomplishments and goas as a class and as an organization of students. The main

page mtroduees viewers to Sketch It Lip with our logo, slogan, contact information and multiple

informative links. The links include: The Design Center, Café, Accomplishments, and The Class.

The Design Center link takes viewers to a page with explanations of the design services we can offer,

paired with prices and exampLes. This link has a separate photo gallery so that customers are able to

see the quality and creativity that Sketch It Up employees can create with a variety of projects and

materials. The Café section shows pictures of the station, the menu with prices, and the employees

18

serving beverages to customers. Both of these links give tribute to our vendors: Varitronics, Canon,

S&D Coffee, and the Institutional Wholesale Company (IWC).

The following links, Accomplishments and The Class, highlight the undertakings of the store

and the achievements of the students. Tius adds a personal aspect to Sketch It Up and allows our

customers to be included in our accomplishments and successes. Events such as our ribbon cutting

and award acceptance from the Termessee Board of Education are especially highlighted in our links.

Additionally, the website is a growing, living piece that will be maintained this year until the next

year of Entrepreneurship IT students take it over in the fall of 201 I.

Presently, Sketch 11 Up is a staple in Rutherford County and will continue to be so in the

progression of Blackman High School. This is an entity that we believe should be shared with

Blackman High School and the Blackman community because it is homage to the fitture of small

businesses and should be taken pride in by all.

D. Projected Budget

1. Projected Operating Budget

FIRST YEAR INCO

July August1400 S 3.28575

$ 821.005 S 9.50

S $ 4,116.25

S S 2,607.92S S 63.29S S 2.67121

S $ 1,445,04

ME STATEMENT (JULY-JANUARY)

November December JanuarySalesCoffee SalesPrinting SalesOffice Supply Sales

Total Gross Sales

Coffee ExpensePrinling ExpenseCosi of Good Sold

Gross Profit

Variable Expenses

AdvertisingLisensing ExpenseOffice Supplies Expense

Total variable Expenses

Net Profit

114.00

1,364.971,656.883,021.85

(2,907.85)

40.00

(2,907.85)

September October5 3,265.40 5 1,393.75 SS 597.00 $ 10.00 SS 6.00 5 . S

$ 3,868.40 $ 1,403.75 $

S .235.70 S 385.14 5S 152.96 5 4405: S5 1.38866 5 325.65 $

S 2,479.74 $ 578.10 S

20.00 5 20.00 S210.00 S 105.00 S

- 5 247.18 S

210.00 S 352.18 S

2,269.74 5 225.92 S

1,185.75 5118.00

$

1,303.75 S

5d9.7Q S- S

64970 $

654.05 S

55.40 SSS

- S

654.05 S

SS$

S

S

247.25 5S

- S

247.25 5

179.71 S- S

/79.71 S

67.54 S

20.00 S- $- S

- S

67.54 S

SSS

S

S

750.00100.00

850.00

627.50

62 7.50

222.50

20.00

222.50

20.00 5- S- S

- S

1,445.04 S

19

FIRST YEAR INCOME STATEMENT (FEBRUARY- JUNE)

Sales February March April May June Annual Total 2011-2012 2012-2013Coffee Sales $ 1,086.44 $ 1,376.93 S 925.23 S. 845.73 S 14,476.33 S 15,923.96 S 17,516.36Punting Sales S 64.00 $ 46.00 S 30.00 $ 115.00 S 1,951.00 5 2,146.10 S 2,360.71Office Supply Sales S 3.00 $ - S 12.00 $ - S 5 35.50 S 39.05 S 42.96

Total Gross Sales S 1,158.44 5 1,422.93 S 1,017.23 S 960.73 5 $ 16,462.83 S 18,109.11 S 19,920.02

Coffee Expense S 234.51 $ 689.72 S 83.93 S - S 5 8,158.85 $ 8,974.74 $ 9,872.21PrinUng Expense S 54.78 $ - S - $ - S S 2,468.42 S 2,715.26 $ 2,986.79Cus, of Good Sold S 389.29 S 689.72 S 183.98 5 - S S 10,627.27 $ 11,690.00 S 12,859.00

Gross Profit S 769.15 S 733.26 S 833.25 5 960.78 S S 5,835.56 5 6,419.12 5 7,061.03

Variable Expenses

Advcrtisir S 20.00 S 20.00 S 20.00 S 20(X) S - $ 275.40 S 240.00 S 240,00LscnsingExpense S - S - S - S . S - S 3:5.00 S 210.00 S 210.00Office Supphes Expe:ise S - S S - S - S S 2’7.18 5 271.90 S 299.09

Total Variable Espenscs S - $ - S - S - S S 562.18 S 721.90 S 749.09

Net Profit S 769.15 S 733.26 S 833.25 S 960.78 S S 5,273.38 S 5,697,22 S 6,311.94

2. Rationale for the Projected Budget

This first year income statement covers Sketch It Up’s months of business from August 2010

— May 2011. This chart graphs the total amount of money that our enterprise will have in Savings at

the end of the 2010-2011 yeai-, as well as the following two years. As seen in the graph (above), after

the first month of business, Sketch It U was almost S3,000 in debt. This was due to the severe start

up fees of creating our coffee stock and buying all of our machinery. Additionally, we only had a

SI 14.00 profit for the month to offset this defleit. However, as soon as the school year began in

August, Sketch It Up was instantly successful and was able to repay all debts by the end of

September.

Sketch It lip continued to be extremely profitable throughout September but was soon faced

with several variable expenses, such as licensing fees and large office supply orders. As expected, in

addition to these expenses, Sketch It Up became less of a novelty as the winter months approached.

The lowest monthly income thus far is the $67.54 net profit in December. This can be attributed to

the two and a half week Winter Break where there was no profit made and expenses for the

20

continuation of the store remained. Despite these challenges, Sketch It Up has been proactive in

earning more profits for DECA. We have added two new products, Turtle Fiappuecino and the

Birthday Cake Iced Latte that has sparked new interest in our store. In addition, the Promotion

branch (see chart on page 13) was created to create awareness of our products and services within

Blackman High School.

The first year income statement has been completed for 20 10-2011 school year. with the

exception of May. Previous projections were based from the first semester of business profits earned

through Sketch It Up. We have succeeded in continuing our success up until the entire

Entrepreneurship II class graduates in May. For this reason, the projections for May are modest

because Sketch It (4i will discontinue business in preparation for a new year. The combination of the

current budget and the projected budget places the net profit for Sketch It Up to be $5,273.38 by the

end of the year. A majority of this profit will assist in DECA national competition fees in April, with

the remaining returning back into the functions of the storo.

V. OUTCOMES

A. Describe project implementation, unusual or unforeseenchallenges or successes and the methods of handling them.

Sketch It Up is open from 7:00-8:30 AM every weekday as well as during all three lunches

on every weekday excluding Wednesday. All workersiclass

members get a grade for being in the Entrepreneurship II

class as well as for being active participants in the success of

the store. With the overwhelming need for a beverage and

poster store within the Blackman High population, the

success of Sketch It Up was imminent, The grand opening of

Sketch It Up brought with ita profit of 54,1 16.25 by the end

21

of the first week of school. Additionally, on average 70 customers enter Sketch It Up on a daily

basis. Along with the steady flow of business from students and teachers, Sketch It Up has been

tbrtunate enough to create a working relationship with The Avenue in Murfreesboro. After creating

posters and flyers to promote an event held by The Avenue. Lindy

Mullins, marketing manager with The Avenue, approached our

teacher, Mrs. Ann Stewart, about sponsoring Sketch It Up. On

behalf of the Avenue, she offered to pay for the 1 year

membership fee for the Rutherford County Chamber of

Commerce as well as to sponsor the ribbon-cutting: Lindy Mullins

was present at the ribbon cutting ceremony for Sketch It Up to

‘Ibecome a member of the Rutherford County Chamber of

Commerce. To enable the membership, class members worked diligently preparing our store for

visitation. Steps to prepare the store included; creation of goody bags, pamphlets, as well as other

individualized items to give to guests. The ribbon cutting ceremony occurred on October 26th, 2010,

making Sketch It Up the l student-run business to be a full member of the Chamber of Commerce.

At the ceremony, presentations were made

about the trials and tribulations of beginning

decisions, financial implications, and work

schedules. After guests were given an overview

of our hard work and our dedication to Sketch

It L’, time was given for store tours. On that

day we met many high profile business men and

women that we now have the prospect of

working with on future design projects.

22

As Rutherford County Chamber members, we are given the opportunity to attend networking

events once a month. At these events we present Sketch It Up as well as hear fiom other businesses.

As it is called, the “NET” allows Sketch It Up to have an outlet in which representatives are able to

share the great experiences and successes we encounter through our business endeavor. After the

meeting, a time is allotted for all Chamber members to interact and learn in what ways we can help

each other. Through presenting Sketch It Up at the “NET”, we have made ties with the owner of

MKG StzifJwhich focuses on putting logos and monograms on banners, magnets, coffee mugs, and

other household items. Although in other situations, MKG Shiffcould be considered a competitor, a

product that he provides will be very useful to Sketch It Up’s productivity; Sketch It Up can act as a

middle man to provide our customers with extra products. In addition to creating a relationship with

41KG Stuff becoming a member of the Rutherford County Chamber of Commerce has continue to

allow Sketch It Up to expand with Rutherford Cotinty.

Additionally, the Tennessee School Board Association

presented Rutherford County with an Award of Excellence in

Education Programs to Rutherford County in recognition of

Sketch It Up’s successes. The award is one of only two ever

presented to Rutherford County. This recognition allows a new

pride in Sketch It Up and Blackman High School; it has not

only rewarded our hard work but has also propelled our store

to continue growing and expanding.

Unforeseen challenges of Sketch It Up include organization. As seniors in high school, the

store employees have a multitude of responsibilities. In addition to running Sketch ft Up,

eiployeesstudents also have homework, after-school activities, and college searches. These

additions create an atmosphere that is not seen in everyday business life. Disorganization comes from

the differences in each day. Sketch It Up is open each morning before school begins; each morning

23

shift requires four employees to arrive at 7:00 AM. To solve the issue of nonattendance, managers

derived a way for each person to ftulfill one six-week shift throughout the ycar. Problems arose

through sicknesses, field trips, and other obligations. For this dilemma, an organizational system was

set in place in which the missing person is responsible for finding a replacement employee. Upon this

action, the position must be filled and the six-week manager will bc notified.

B. Learning Outcomes

Sketch It Up began as a simple plan

to provide students and staff of Blackman

High School with coffee beverages and

design elements, yet quickly turned into a

whirlwind of endeavors that is the pride of

Blackman High School, Murfreesboro, and

even Rutherford County.ft 11

Coopetation and team building weie learned fiom out 1’

experiences beginning Sketch It Up. As store employees, students, and active DECA members, we

have found ourselves spending vast quantities of time together. To continue to succeed and thrive in

such a close environment, collaboration was necessary. We have learned the preferences, dislikes,

and attitudes of each member of our store ‘family’ This has become very practical and worthy within

Sketch It Up; employees know what their

responsibilities are as well as what to expect from

others. The collaboration found within Sketch It Up

is unparalleled; we pride ourselves in being a group

of diligent teenagers with little need of extensive

supervision.

24

C. Earning Outcomes

CASH FLOW

Beginning Cash Plow

Cash Inflows:Start-Up FuidsGrant Funding

Coffee SalesPrinting SalesOffice SuppliesTotal Cash Inflows

Available Cash Balance

Cash Outflows:Store FurnitureStore EquiptmentPrinting ExpenseCoffee ExpenseOfffice SuppliesAdvertisingMiscellaneousLicensing Expense

Total Cash Outflows

Ending Cash Balance

July August September October November December JanuaryS - S (2897.85) 5 (1,472.81) S 776.93 $ 5,888.73 S 6,487.38 S 6,53492

S 350.00S - S - S - S - S -

S 4,905.88S 114.00 S 3,285.75 $ 3,265.40 5 1,393.75 5 1,185.75 S 247.25 S 750.00

5 821.00 S 597.00 5 10.00 S 118.00 $ 100.00S - S 9.505 6.005 - S - S - S -

S 464.00 S 4,t16.25 S 3,868.40 S 6,309.63 $ 1.303,75 S 247.25 S 850.00

5 464.00 5 1,218.40 S 2,395.59 S 7,086.56 5 7,192.48 $ 6,734.63 5 7,384.92

S 300.00$ - $ - S - S - S - $ -

S - S - S - S - $ - $ - S -

5 1,656.88 $ 63.29 S 52.96 5 440.51 S - S - S -

S 1,364.97 S 2,607.92 5 1,235.70 S 385.14 S 649.70 S (79.71 S 627.50S - S - S - S 247185 - S - $ -

S 40.00 5 20.00 S 20.00 S 20.00 S 20.00 5 20.00 S 20.005 - $ - $ . S - S 35.40$ - $ -

5 . S - 5 210.005 105.00$ - S - 5 -

S 3,361.85 S 2,691.21 S 1,618.66 S 1,197.83 S 705.10 5 199.71 5 647.50

S (2,897.85) S (1,472S1) S 776.93 S 5,888.73 S 6,487.38 S 6,534.92 S 6,737.42

Beginning Cash Flow S

Cash Inflows:

5 (4,246.85) 5 (3,533.59) 5 (2,720.34) $ (1,074.46) 5 36,724.06

Cash Outflows:

Feburary March April May June

Stats-Up FundsGrant FundingCoffee SalesPrtnung SatesOffice SuppliesTotal Cash Inflows

Available Cash Balance

First Year

S -

5 1,086.44

S 64.00

5 8.00

S

SS

$

S

S

S

S

(376.98

46.00

S

S

SS

925.2380.00(2.00

S

$

845.78115.00

$ 1,15844 S 1,422.98 $ 1,017.23 $ 960.78 $ -

S (2,823.87) S (2,5(6.36) S (1,759.56) 5(1074.46) 55 ((58.44

S -

5 4,996.00

S (54.78

S 234.51

$S 20.00

S -

S -

Store FurnitureStore EquiptmentPrinting ExpenseCoffee ExpenseOfftice SuppliesAdvertisingMiscellaneousLicensing Expense

Total Cash Outflows

Ending Cash Balance

S 350.00

S (4,476.33

5 1,951.00

$ 35.505 18,035.65

58,442.77

S 300.00$ 4,996.00

$ 2,468.425 8,158.85$ 247.18S 240.00

S 35.40

S 315.00

S

S

SS

SS

S

S

- S

- S- S

689.72 5- $

20.00 S- S

- S

- S- S

S83.98 5

- S20.00 S

- SS

- S- $- $- S- $

20,00 S(705.10) 5

- S

5 5,405.29 S 709.72 5 203.98 S (685.10) $ - S 16,760.85

5 (4,246.85) $ (3,53339) $ (2,720.34) S (1,074.46) 5 - S 1,274.80

25

This is the cash flow chart for Sketch It Up for the 2010-2011 school year. In the months of July

and August, the cash outflow was greater than the inflow which caused a negative balance. Thankftilly,

Sketch It Up has been very successful and by September, our enterprise was financially gaining. A point

of interest on our chart comes in the Outflow Section of February under Store Equipment. A balance of

54,996.00 is projected to be spent in February. This money will purchase iPads with the help of the Siegel

Grant that Sketch It Up attained prior to opening. These eight iPads were budgeted for in February,

however, they where not attainted until mid-April and will be left, untouched, as a welcoming addition to

Sketch It Up for our successors. We believe that with this new equipment, the potential for Sketch It Up

will become accessible though the creative and talented minds of these ffiture business and

entrepreneurship leaders.

0. Recommendations for Improving the Project

1. Recommendations for Future Projects

The current employees of Sketch It Up will graduate, but the enterprise will continue to be a

staple within the Blackman community for many years to come. It is for this reason that the current

Entrepreneurship II class would like to recommend a few things for the upcoming students. First, it is

recommended that the class be handpicked by Mrs. Ann Stewart by an application and interview

process. Processing applicants from the Entrepreneurship I class will allow the store to continue to be

run with the love and personal dedication that it began with. Also, it is recommended that applicants

be considered from all upper-level Marketing classes in addition to the Entrepreneurship class.

Additional applicants will give an increased pool of talent to operate Sketch It Up in years to come.

Second, it is recommended that candidates apply for the specific position they hope to fill in

the store. Employees are needed to run the coffee machines, Varitronics design center, and 4-color

posters’ design elements. To specifically accept students to complete these tasks gives a solid

foundation for Sketch It Up to start on each school year. Once a solid foundation is made, students

with no knowledge of InDesign, Postermaker, Photoshop, or the Varitronics design center may be

26

trained. Processing employees ira this way allows there to be no organizational dilemmas when

opening the store each year. Also, training existing employees on all aspects of production, service,

management, and accounting throughout the year gives students an opportunity to get real world

experiences within a school environment.

Finally, we recommend that each person take positions and tasks as they are needed. If each

person shares in the work load, the team will gain the balance needed to create an efficient

atmosphere. Balancing is definitely an asset needed for the success of the business. Each student

should complete the Entrepreneurship IT course with understanding and knowledge of the real

business world that he or she may use throughout all aspects of life. Each year, the goal of Sketch It

Up is to produce promising potential business owners into Rutherford County in order to contribute

to society as fundamental job-creators within the local economy.

2. Plans for Improving the Learning and Earning Outcomes of the Project

LEARNING

To improve thc learning outcomes of the project, students entering Entrepreneurship II will

be asked to create a short business plan. This

business plan will include the student’s personal

view of where the store is at publicity and

successfully, as well as his or her idea of where

the store should be and proposals on how to get

there. If all students come with their own.-

:

- r-—-J: .-:-

viewpoints and ideas written down, the process of increasing learning will be greatly amplified.

These business plans will be reviewed and combined to create an agenda for the year. Additionally,

on a six weeks basis students will be asked to update their business plans. Through this process,

students/employees will learn how to uphold responsibilities, as well as how to create tangible goals.

27

EARNING

To increase earning outcomes, future employees of Sketch It Up will expand the target

market of the store to outside sources. Currently, the store welcomes and encourages business from

outside sources as it comes, however, there is no focus on attracting business outside of Blackman

High School, aside from our Chamber membership. To increase earning, the future employees will

focus on outside target markets. The current managerial staff urges the future staff to begin their

school year in mid-July. Beginning at this time will allow the staff to target Blackman Elementary

School teachers. A service that Sketch It t4 currently provides for teachers is bulletin board

decoration; this service has the potential to receive a lot more business from elementary teachers that

need innovative, colorful boards.

Dear Reader,

As you can see, this endeavor has brought with it many learning and earning opportunities to

the Entrepreneurship II class. Lessons of perseverance, skill, and business administration have all

been crucial within Sketch It L’. but also will apply to our lives as futurc business leaders and

entrepreneurs. However, we are only the first class to experience and learn from Sketch It Up; as our

lives continue, our legacy remains. The heart of this store and the spirit of the students will be shared

and enjoyed for each new generation of students. It is our biggest hope that future students will feel

the camaraderie and endearment that Sketch It Up is based upon. We have persevered through every

obstacle that we have encountered. Beginning our enterprise, we had to overcome adversity and

prove that seventeen students could create and operate a successful business. And now the most

colossal obstacle stands in front of us: leaving Sketch It Up. Although reluctant, the opportunities we

have gained this year will forever be a part of us. We have learned, we have eamed, but most of all,

we have made our dream a reality.

“If you can dream it, you can do it” —Walt Disney

28

VI. BIBLIOGRAPHY

Advisory Committee:

Banyai, Berkley. Senior Advisor. Blackman High School. Murfreesboro, Tennessee.

Deibridge, Renee. Marketing Education and DECA Advisor. Blackman High School.Murfreesboro, Tennessee.

Stewart, Ann. Marketing Education and DECA Advisor. Blackman High School.Murfreesboro, Tennessee.

Internet Sources:

About BHS” Blackman High School. Rutherford Co. Web. 28 November 2010.<http://www.bhs.rcs.kl 2.tn.us/>

“Business Directory” Rutherford County, Tennessee. Rurhetford €‘ounty Chamber ofCommerce. Rutherford Co. Web. 29 November 2010.<http://www.rutherfordchambcr.org/>.

“Demographics’ Rutheiford County, Tennessee. Rutheiford County Chamber ofCommerce. Rutherford Co. Web. 29 November 2010.<http://www.rutherfordchamber.org/>,

“Technical Support”. VajiQuest kv Varitionics. Web. 4 December 2010.<http://www.variquest.com/>

29

6.

I

[ . .

.

FL..? .

30

VII. APPENDIX

!ceI .

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p1I N•,