This assignment consists of two sections: your final business plan and your business plan financials. Note: You must submit both sections as separate files for the completion of this assignment. You h
Running head: the financials 0
The Financials
Ayouba S. Kosiah
Strayer University
BUS 599
Dr. Andrea Banto and Dr. Alethia Gardner
August 26, 2019
The Financials
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| 2017 |
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| 2021 | ||
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | TOTAL | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | TOTAL |
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| $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ||
| $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ||
| $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ||
| $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ||
| $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ||
| $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ||
| $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ||
| $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ||
| $0 | $0 | $0 | $0 | $0 |
| $0 | $0 | $0 | $0 | $0 |
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| $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ||
| $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ||
| $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ||
| $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ||
| $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ||
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| $0 | $0 | $0 | $0 |
| $0 | $0 | $0 | $0 | $0 |
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| $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ||
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| $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ||
| $0 | $0 | $0 | $0 | $0 |
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| $5,000 | $5,000 | $5,000 | $5,000 | $20,000 | $5,000 | $5,000 | $5,000 | $5,000 | $20,000 | $20,000 | ||
| $500 | $500 | $500 | $500 | $2,000 | $500 | $500 | $500 | $500 | $2,000 | $2,000 | ||
| $1,000 | $1,000 | $1,000 | $1,000 | $4,000 | $1,000 | $1,000 | $1,000 | $1,000 | $4,000 | $4,000 | ||
| $0 | $0 | $0 | $0 | $0 |
| $0 | $0 | $0 | $0 | $0 |
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| $100 | $100 | $100 | $100 | $400 | $100 | $100 | $100 | $100 | $400 | $400 | ||
| $150 | $150 | $150 | $150 | $600 |
| $150 | $150 | $150 | $150 | $600 |
| $600 |
| $200 | $200 | $200 | $200 | $800 | $200 | $200 | $200 | $200 | $800 | $800 | ||
| $6,950 | $6,950 | $6,950 | $6,950 | $27,800 | $6,950 | $6,950 | $6,950 | $6,950 | $27,800 | $27,800 |
Sources and use of funds
The major sources of loan for the company will be family members and close friends. The company will attempt to take a loan of $20,000 with an interest rate of 5% and the duration of the loan will consist of 2 years i.e., twenty-four months. This loan will indeed be insufficient to meet the requirements of the company, therefore, the company has another plan of taking a loan from some financial institution. For this purpose, a loan of $80,000 will be taken from a country-wide bank for 5 years i.e., sixty months and the interest rate company expects will be 2.8%. The allocation of these funds will be specified to meet the costs accrued during the startup phase. For example, a major portion of these funds will be allocated for the cost of goods purchased and other operating expenses. The items such as labels, bottles, cartons, and caps will be included in supplies. The operating expenses such as rent and electricity will be used for storing the inventory at the store.
Plan Assumption
There are two product lines that the company has been operating, these include vegetable juice drinks and certified organic fruit. Both the product lines of the company have been going on successfully since 2016. The gross profit of the company for the financial year 2017 was around $2 M for both the product lines while the company projected a gross profit of $25 M for the same period.
Product Line 1
Volume of Bottles on monthly basis = 1,000 (July)
Growth of Product Line 1 on monthly basis = 50%
Unit price of bottle = $3.89
Overall sales done by agents on commission = 30%
Percentage of commission to agents (sales) = 10%
Sales Allowances and returns (Gross Sales) = 2%
Cost of Goods Sold (Gross Sales) = 10% ($0.56 per bottle)
Outsourcing of inventory on monthly basis from July 16 to June 2017
Product Line 2
Volume of Bottles on monthly basis = 1,300 (July)
Growth of Product Line 1 on monthly basis = 50%
Unit price of bottle = $3.89
Overall sales done by agents on commission = 30%
Percentage of commission to agents (sales) = 10%
Sales Allowances and returns (Gross Sales) = 2%
Cost of Goods Sold (Gross Sales) = 10% ($0.39 per bottle)
Outsourcing of inventory on monthly basis from July 16 to June 2017
Grand Total Inventory for both Product Lines
Capital Purchases
| Item | Price ($) |
| Useful Life | Salvage Value ($) |
| X2 Bottling Machine | 9,000 |
| 10 Years | 4,000 |
| X2 NAB Mixers | 25,000 | Each | 10 Years | 5,000 |
| Labeling Machine | 5,000 |
| 10 Years | 2,000 |
| X2 Distribution Van | 12,000 | Each | 08 Years | 5,000 |
| X2 Computer System (Apple) | 1,500 | Each | 05 Years | 700 |
| X2 Mobile Phone | 100 | Each | 05 Years | 50 |
| Phone (Landline) | 30 |
| 05 Years | - |
| Fax Machine | 300 |
| 05 Years | 50 |
Employment and Staffing
| Designation | No. of required staff | Starting | Till | Duration | Salary ($) | Nature |
| Administrative Assistance | 1/1/2017 | 31/12/2107 | 06 Months | 1,300 | Monthly | |
| Sales & Marketing Assistant | 1/1/2017 | On Ward | Unlimited | 1,200 | Monthly | |
| Assistant (Operations) | 1/1/2017 | On Ward | Unlimited | 1,400 | Monthly | |
| Other Staff | 1/1/2017 | On Ward | Unlimited | 1,000 | Monthly | |
| Hourly Staff (80 Hours/Month) | 1/8/2016 | On Ward | Unlimited | 11 | Hourly | |
| Hourly Staff (80 Hours/Month) | 1/1/2017 | On Ward | Unlimited | 13 | Hourly |
Budget for Marketing Department for the Year 2016 (July 01, 2016 to June 30, 3017)
| Head Count | Amount ($) |
| Professional Assistant | 3,300 |
| Merchandiser | 1,200 |
| Sampling (Assistant) | 5,600 |
| Advertising (Media) | 13,825 |
| Advertising (Specialists) | 8,160 |
| Online Advertising (Website) | 1,280 |
| Shows & Branding (Trade) | 3,650 |
| PR (Public Relation) | 8,850 |
| Marketing (Informal) | 3,600 |
| Miscellaneous | 6,505 |
Professional Services
| Head Count | Amount ($) |
| Attorney (Legal Issues) | 2,000 |
| Industrial Specialist | 2,000 |
| Professional Accountant | 1,500 |
| Auditors | 2,500 |
| Consultant (Technology) | 1,000 |
Loans and Investments (Capital)
| Head Count | Amount ($) |
| Capital from Myself | 20,000 |
| Capital from Melinda Cates | 40,000 |
| Funding (Series A) January 2017 | 100,000 |
| Funding (Series B) June 2017 | 100,000 |
| Loan from Family Members and Close Friends | 20,000 |
| Loan from Bank | 80,000 |
Miscellaneous Expenses
| Head Count | Amount ($) | Nature |
| Rent & Rates | 1,500 | Monthly |
| Rental of Equipment | 1,000 | Monthly |
| Maintenance of Equipment | 300 | Quarterly |
| Depreciation of Equipment & Vehicles | 634 | Monthly |
| Insurance Expenses | 200 | Monthly |
| Services (Telephone) | 50 | Monthly |
| Office Supplies | 30 | Monthly |
| Utilities | 900 | Monthly |
| Travelling and Tours | 400 | Monthly |
| Shipping and Postage | 30 | Monthly |
| Interest on Loans | 317 | Monthly |
Break-even Analysis
