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For this area of the Business Plan I would like to know that you understand what it will take to start the business

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For this area of the Business Plan I would like to know that you understand what it will take to start the business.

 

While I don't make this harder than I am asking, I do want you to do some research and really delve into what it takes to start and run a business. This means including all elements/purchases/expenditures that a business makes for their daily operations.

 

Your final submittal will include each of the following with a comprehensive analysis of each:

 

1) A breakdown of necessary costs for your business

 

2) Your fixed cost (percentage),

 

3) The amount of profit desired,

 

4) The amount of sales necessary to generate profit desired.

 

What I would like to see for the breakdown of costs to start the business is the list of items and an estimated cost per item.

 

Example:

Location (rent) $500 per month

Advertising $300 per month

Start up Inventory $5,000 (one month supply)

(this could be multiple items)

 

First month salary $4,000

First month payroll $1,600 ($8.00 an hour times number of hours)

Etc . . .

 

Fixed cost percentage: 100% of total cost minus the percentage of variable costs equals the percentage of fixed costs.

 

Breakeven: Take your fixed costs dollars and divide that by your fixed costs percentage to determine your break-even.

 

If you have question, PLEASE email me as this is usually the more difficult part of the plan for many individuals.

 

 

20 points