Budget
Budget:
Financial budget for the total projected cost of ACME Home Improvements de Mexico, SA de CV is set at $35,193,654 for the 12 month period.
The purchased of the land has already been factored in with the cost. 100,000 sq. ft. Indoor store, a 10,000 sq. Ft. garden outdoor space and two-story parking garage.
The cost of construction and inventory figures are based on researched cost of similar stores in Mexico City and inventory goods of stores such as Home Depot and Lowes in the United States. The cost of licensing, newly construction of all phases, zoning and land cost, from ground up structural construction to finished work such as plumbing, electrical wiring, dry wall installation, roofing and finish work is $12,888,494.
Cost Summary:
Consulting and legal fees: $1,850,000 for two attorneys and two consultants for their expertise in the local governments in and hardware.
License and permit: $2,209,112 for two-year permit and license.
Joint Venture fees: $647,715.
Reliable local human resource, marketing, and construction companies: $2,000,000 for 3 bilingual (English and Spanish speaking) local human resource contractors to help with the facilitation of hiring and training local staff members and 2 (English and Spanish speaking) local Marketing experts to develop a marketing and communication plan. $1,850,736 for construction organizations such as electrical, mechanical, and I.T software (POS Systems $100,000 and software packages Microsoft Word, Excel, Access, Outlook, and Project).
Inventory cost for the stocking of products and materials sold (40,000 plus products and 5,000 plus vendors worldwide): $7,528,088
2 ACME corporate management executives: The cost for 2 U.S. corporate managers to oversee the Mexico City ACME store project is $255,000 for the cost of living (room and board), wages, and overseas incentive pay.
Three month training Cost: A total of 75 employees store employees, includes 35 sales employees on the sales floor at all time,
Financial budget for the total projected cost of ACME Home Improvements de Mexico, SA de CV is set at $35,193,654 for the 12 month period.
The purchased of the land has already been factored in with the cost. 100,000 sq. ft. Indoor store, a 10,000 sq. Ft. garden outdoor space and two-story parking garage.
The cost of construction and inventory figures are based on researched cost of similar stores in Mexico City and inventory goods of stores such as Home Depot and Lowes in the United States. The cost of licensing, newly construction of all phases, zoning and land cost, from ground up structural construction to finished work such as plumbing, electrical wiring, dry wall installation, roofing and finish work is $12,888,494.
Cost Summary:
Consulting and legal fees: $1,850,000 for two attorneys and two consultants for their expertise in the local governments in and hardware.
License and permit: $2,209,112 for two-year permit and license.
Joint Venture fees: $647,715.
Reliable local human resource, marketing, and construction companies: $2,000,000 for 3 bilingual (English and Spanish speaking) local human resource contractors to help with the facilitation of hiring and training local staff members and 2 (English and Spanish speaking) local Marketing experts to develop a marketing and communication plan. $1,850,736 for construction organizations such as electrical, mechanical, and I.T software (POS Systems $100,000 and software packages Microsoft Word, Excel, Access, Outlook, and Project).
Inventory cost for the stocking of products and materials sold (40,000 plus products and 5,000 plus vendors worldwide): $7,528,088
2 ACME corporate management executives: The cost for 2 U.S. corporate managers to oversee the Mexico City ACME store project is $255,000 for the cost of living (room and board), wages, and overseas incentive pay.
Three month training Cost: A total of 75 employees store employees, includes 35 sales employees on the sales floor at all time,
References: Doing Business in Mexico (2015). CPAAI CPA ASSOCIATES INTERNATIONAL. Retrieved January 2015. http://www.cpaai.com/latinamerica/DoingBusinessInMexico.pdf FRANCHISE DIRECT (2015). Ace Hardware Franchise Cost & Fees. Retrieved January 23, 2015. http://www.franchisedirect.com/retailfranchises/ace-hardware-corporation-06448/ufoc/ BANCO DE MEXICO (2015). CPI Consumer Price Index and UDIS. Retrieved January 23, 2015. http://www.banxico.org.mx/SieInternet/consultarDirectorioInternetAction.do?accion=consultarCuadro&idCuadro=CP150§or=8&locale=en DOING BUSINESS (2015). Dealing with construction permits in Mexico. Retrieved January 23, 2015. http://www.doingbusiness.org/data/exploreeconomies/mexico/dealing-with-construction-permits/ Ace Hardware Corp. (2015). Franchises/Retail/Hardware. Retrieved January 23, 2015. http://www.entrepreneur.com/franchises/acehardwarecorp/324961-0.html