Break Even Analysis: The Fixed Overheads Of Adorable Pawz
The fixed overheads of Adorable Pawz are rental, salaries, loan, utilities and insurance. Total fix fixed overheads are RM18167 each month. The variable overheads are around RM2575 each month, its depend on the price offer by suppliers and volume of service provided. From the figure 1, revenue per month is estimated as RM15375.
Figure 1: Estimated Revenue per month
7.1 Break-even Analysis
Figure 2: Break-even Analysis
Based on the break-even analysis, we have to serve 160 customers in order to break-even. Our monthly sales must hit RM20800 to cover all the costs. From the statement of cash flow, Adorable Pawz start making profit at the 7th month of operation.
8.0 Managing Risk
Potential risks will be face in our business are technology and market uncertainty.
For technology uncertainty, Adorable Pawz is reliant on the vehicle to send pet groomer to customer place and provide services. The van and it’s grooming facilities might get older and out-dated after a period. Furthermore, our banking …show more content…
Operation centre located at Mont Kiara, Kuala Lumpur. We use differentiation strategy for our service to compete with the competitors and get the materials from Petwholeseller.com. We will track the customer by their feedback after used our services. Adorable Pawz is flat organization structure and hire nine employees to start-up the business. Our marketing mediums are advertisement, social media and a professional website presence. Furthermore, we also market our service by the habits of highly successful groomer. Moreover, we will inject half of the business start-up capital and get a loan for the other half amount from bank. We have to serve 160 customers and earn RM20800 every month to achieve break-even. Lastly, we will often service the vans, collaborate with the lead user and remain flexibility to deal with the two potential
Figure 1: Estimated Revenue per month
7.1 Break-even Analysis
Figure 2: Break-even Analysis
Based on the break-even analysis, we have to serve 160 customers in order to break-even. Our monthly sales must hit RM20800 to cover all the costs. From the statement of cash flow, Adorable Pawz start making profit at the 7th month of operation.
8.0 Managing Risk
Potential risks will be face in our business are technology and market uncertainty.
For technology uncertainty, Adorable Pawz is reliant on the vehicle to send pet groomer to customer place and provide services. The van and it’s grooming facilities might get older and out-dated after a period. Furthermore, our banking …show more content…
Operation centre located at Mont Kiara, Kuala Lumpur. We use differentiation strategy for our service to compete with the competitors and get the materials from Petwholeseller.com. We will track the customer by their feedback after used our services. Adorable Pawz is flat organization structure and hire nine employees to start-up the business. Our marketing mediums are advertisement, social media and a professional website presence. Furthermore, we also market our service by the habits of highly successful groomer. Moreover, we will inject half of the business start-up capital and get a loan for the other half amount from bank. We have to serve 160 customers and earn RM20800 every month to achieve break-even. Lastly, we will often service the vans, collaborate with the lead user and remain flexibility to deal with the two potential