My Business Plan
My business plan helped me to get control of my finances. It allowed me to see my sales totals and it lets me know when I need more inventory and it allows me to track my spending in terms of salaries, rent, professional services, and how much capital investment I may need to continue running my business. This plan helps me to see how many items/units I must sell to make a profit or to break-even. It also will tell me whether the business will be viable or whether I am wasting my time and money to continue or if I should be going into this business. The most important thing about a business plan is helping business owners ran their businesses.
The funding will come from personal savings, from family and friends, partners, bank loans and private equity funding.
The plan assumes that the sales projected will be higher than stated in the plan. That the monthly volumes will be 1,000 bottles sold in January and a 50% month to month growth. This is projected on the unit price of $2 per bottle. The plan helped me to assume that I will not be receiving a salary until the projected units are sold and the company is making a profit. The break-even analysis is used to determine how much income the business must earn to pay all expenses and whether the break-even point is either making the business a profit or losing money. It also provides an overview of the relationship among revenues, cost and profit.
Source and Use of Funds
Plan Assumptions
1. Monthly Volumes = 1,000 Bottles in January
2. Month on month growth = 50%
3. Unit price = $2 per bottle
4. Sales made through commission agents = 30%
5. Commission to sales agents = 15%
6. Returns and allowances = 2.5% of gross sales
7. COGS = 28% of Gross Sales ($0.56 per bottle)
8. Monthly Inventory
9. Capex
a. 2 NAB Mixers of $28,500 each with life of 5 years and salvage value of $5,000
b. 2 Bottling Machinery of $9,600 each with life of 6 years and salvage value of $1,500
c. 4 Panel Vans of $10,000 each with life
The funding will come from personal savings, from family and friends, partners, bank loans and private equity funding.
The plan assumes that the sales projected will be higher than stated in the plan. That the monthly volumes will be 1,000 bottles sold in January and a 50% month to month growth. This is projected on the unit price of $2 per bottle. The plan helped me to assume that I will not be receiving a salary until the projected units are sold and the company is making a profit. The break-even analysis is used to determine how much income the business must earn to pay all expenses and whether the break-even point is either making the business a profit or losing money. It also provides an overview of the relationship among revenues, cost and profit.
Source and Use of Funds
Plan Assumptions
1. Monthly Volumes = 1,000 Bottles in January
2. Month on month growth = 50%
3. Unit price = $2 per bottle
4. Sales made through commission agents = 30%
5. Commission to sales agents = 15%
6. Returns and allowances = 2.5% of gross sales
7. COGS = 28% of Gross Sales ($0.56 per bottle)
8. Monthly Inventory
9. Capex
a. 2 NAB Mixers of $28,500 each with life of 5 years and salvage value of $5,000
b. 2 Bottling Machinery of $9,600 each with life of 6 years and salvage value of $1,500
c. 4 Panel Vans of $10,000 each with life