Pennies a Day Project

By: Melissa Hernandez

Sole Proprietorship
Sole Proprietorship: Is a Business owned and managed by a single individual. Example: Local bakeries, barber shop, hair salon, bike-repair shop, and corner store. 2 Advantages: Relatively Few Regulations, a proprietorship is the least-regulated form of business. Sole Receiver of Profit, the owner gets to keep all profits after paying income taxes. 2 Disadvantages: Unlimited Personal Liability, Sole proprietors are fully and personally responsible for all their business debts. Lack of Permanence, A sole proprietorship has a limited life. Government rules, regulations or laws: Business license and zoning laws.

Partnerships
Partnerships: Is a business organization owned by two or more persons who agree on a specific division of responsibilities and profits. Example: Google, apple, and Twitter. 2 Advantages: Ease of Start-Up, partnerships is easy and inexpensive to establish. Shared Decision Making and Specialization, the responsibility for the business may be shared. 2 Disadvantages: Unlimited Liability, unless the partnership is an LLP, at least one partner has unlimited liability. Potential for Conflict, partnerships have the potential for conflict. Government rules, regulations, or laws: Articles of partnership and Uniform Partnership Act (UPA).

Corporations
Corporations: Is a legal entity, or being owned by individual stockholders, each of whom faces limited liability for the firms debts. Example: Supermarkets, high-tech companies, and machinery companies. 2 Advantages: Owners personal assets are protected from business debt and liability. Tax free benefits. 2 Disadvantages: More expensive to form than proprietorship and partnerships. More legal formality. Government rules, regulations, or laws: Certificate of Incorporation and dividends.

Business Franchises
Business Franchises: Is a semi-independent business that pays fees to a parent company. Example: Fast food restaurants (McDonalds) and day care centers. 2 Advantages: Management training and support, franchisers help inexperienced owners gain the experience they need to succeed. Financial assistance, some franchisers provide financing to help franchise owners start their business. 2 Disadvantages: High franchising fees and royalties, franchisers often charge high fees for the right to use the company name. Strict operating standards, franchise owners must follow all of the rules laid out in the franchising agreement. Government rules, regulations, or laws: Federal Trade Commission.

Nonprofit Organizations
Nonprofit Organizations: Are usually in the business of benefiting society. Example: Museums, Public School, the American Red Cross, hospitals, adaption agencies, churches, synagogues, YMCAs, and many other groups. 2 Advantages: No taxes, organizations are eligible for state and federal exemptions from corporate income taxes plus certain other taxes. Ability to receive Public and Private Donations, nonprofit corporations will be able to receive grants and donations. 2 Disadvantages: Cost, creating a nonprofit organization takes time, effort, and money. Shared control, although the people who create nonprofits like to shape and control their creations, personal control is limited. Government rules, regulations, or laws: Tax regulations

Entrepreneurs
Entrepreneurs: Is an individual who organizes and operates a business or businesses, taking on greater than normal financial risk in order to do so.

Milton Hershey
Milton Hershey, the founder of The Hershey Chocolate Company is one of the most successful businessmen and entrepreneur who fought many hardships and failures in life before creating a sweet legacy. Milton Hershey was born on September 13th of 1857 in Derry Township, Pennsylvania. Because his family had to move around a lot Hershey could not receive a proper education after 4th grade. During his teenage years he got tired of traveling and decided to settle in New York and find a permanent work. But his lack of education made it hard on him, so he moved to Denver and started working with a confectioner who taught him how to make caramels. After making a second attempt in candy business it did not succeed. In 1886 Hershey founded the Lancaster Caramel Company which was an instant success. In 1893 he bought machinery that made German Chocolate for his company. With the money he made from selling the Lancaster Caramel Company he purchased 1200 acres of land which was surrounded by dairy farms where he could get his fresh milk for his milk chocolate. In 1900 the first Hersheys Bar was eaten, and by 1907 Hersheys Kisses had become popular followed by the Hersheys Bar with almonds the next year. In 1907 he opened a Hershey Park that was a home town for his employees. Milton Hershey died in 1945.

Walt Disney
Walt Disney was born on December 5, 1901, in Hermosa, Illinois. Walt and his brother Roy co-founded Walt Disney Productions. Disney was an innovative animator and created the cartoon character Mickey Mouse. He won 22 Academy Awards and was the founder of theme parks Disneyland and Walt Disney World. Disney was one of five children, four boys and a girl. He lived most of his life in Marceline, Missouri, where he began drawing, painting and selling pictures to neighbors and family friends. He attended McKinley High School in Chicago where he took drawing and photography classes. At night, he took courses at the Chicago Art Institute. In 1925, Disney married an ink and paint artist named Lillian Bound. In 1929, Disney created Silly Symphonies, which featured Mickeys newly created friends, including Minnie Mouse, Donald Duck, Goofy and Pluto. Flowers and Trees was one of the most popular cartoons and was the first to be produced in color and to win an Oscar. IN 1937, Snow White and the Seven Dwarfs, the first full-length animated film, premiered in Los Angeles and won a total of eight Oscars. During the next five years, Walt Disney Studios completed another sting of full-length animated films like Pinocchio, Fantasia, Dumbo and Bambi. In 1939, a new campus for Walt Disney studios was opened in Burbank. Disney was among the first to use television as an entertainment medium. The Zorro and Davy Crockett, the Mickey Mouse Club, the Mouseketeers, Walt Disneys Wonderful World of Color and Mary Poppins were extremely popular with children. In 1955 Disneyland theme park opened. In 1966 Disney was diagnosed with lung cancer. He died on December 15, 1966, at the age of 65. His brother Roy carried on the plans to finish the Florida theme park that opened in 1971 under the name Walt Disney World.

Muhammad Yunnus
Muhammad Yunnus is a Bangladeshi banker, economist and Nobel Peace Prize recipient, as a professor of economics he developed the concepts of microcredit and microfinance. He established a bank that would take on risky positions, and lend out a couple of hundred dollars at a time to individuals to start small businesses. He would personally make the loans to the poor people in Bangladesh. He came up with a bank for the rural poor, he provided life changing loans to 42 people they would cost a total of 27 dollars, an average of 64 cents each. These small loans would enable the poor people to create businesses of their own.

 Microcredit is the provision of financial services such as loans to people living in poverty. The system is simple and unusual; a loan requires no collateral and no legal contract. He was awarded the Nobel Peace Prize in 2006 because Muhammad made a difference in urban communities he helped out the people living in poverty by lending them money for them to succeed. This idea helps bring peace to the world because Muhammad got many people out of poverty. He gave those people the opportunity to grow and prosper.

 The Grameen Bank is a microfinance organization and community bank that makes small loans to the impoverished without requiring collateral. The projected growth and impact of Microcredit around the world is big, now families can borrow loans and start businesses of their own. Microcredit has affected the life of women especially in Muslim societies by giving them the opportunity to make their own business and prosper on their own. A couple from Bangladesh decided to try the Grameen Bank by borrowing a loan to get more materials for their netting business. They can now make more quilts to sell, and they can easily return back the loans they have borrowed. Their lifestyle is now different, their homes are better than before. They have easy access to water and have enough food for everyone to eat. Markets can provide more items to sell. And now there is easy access to communicate with others thru a telephone. Ladies sell the minutes to people and they earn that money.

Pennies a Day Project

By: Melissa Hernandez

If I was given a microloan of $1000 I would start a small bakery business. With that money I would buy all the supplies/ingredients to make cupcakes. Labor wouldnt cost money because it would be only me and family members that would like to help out with the business. Once the business goes well they will get a small profit. I would have to get a Food Handling Card and a Food Service License to have my own business at home. I would have my business at home. I would make different types and flavors of cupcakes to sell. I would produce about 90 cupcakes a day, then depending on how much and fast I sell them I would produce more.

Costs/supplies
Cupcake wrappers- $18.99/case Ingredient Bowl- $10.49/each Display case with front door-$79.99/each Measuring cup-$8.94/each Measuring Spoons-$1.79/each Cupcake stand-$30.99/each Mixing bowl (20qt.)-$12.99/each Mixing bowl (16qt.)-$10.49/each 12 cup muffing tray-$99.99/case Cupcake plastic container (12)-$59.99/case Cupcake plastic container (6)-$49.99/pack Cupcake plastic container (4)-$9.99/pack Cupcake box 8x 8 x 4 10 pack- $9.99/pack

Swan Pastry flour (50lb)-$ 10.71/each Rainbow sprinkles(50lbs)-$7.99/each Brown Sugar (1pound)- $25.99/each Pure vanilla extract-$9.81/each 12 wooden spoon-$.99/each 10 steel French whip- $2.69/each

Total of: $457.8 Plus $500 worth of other supplies = $957.8 of supplies.

PRICING

Sizes:

Mini

Regular

Mega

Cupcake Prices Mini size Regular size Mega size

Single Standard $1.25 $2.50 $3.50

Single Gourmet $1.50 $3.00 $4.25

Dozen Standard $14.00 $27.50 $38.50

Dozen Gourmet $16.50 $33.00 $46.00

Outcomes/Expectations
In one month, I will have more costumers and will start selling more cupcakes day by day. In one year, I will have way more costumers than before. Which means I will be selling way more cupcakes. I would start to advertise my business on the radio and internet. In five years, I would have my own small bakery shop in town. I would sell more than just cupcakes, I would start selling cakes and cookies too. And have about one or two persons working for me. My shop will have its own website.