BSBESB403_ACTIVITY2

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School

Monarch Institute *

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BSBTEC402

Subject

Business

Date

May 15, 2024

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docx

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5

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P a g e | 1 Financial Plan Business Description Describe the business, how it will operate and how it will make money. Sale of coffee and associated drinks and snacks to office workers. Trading hours: 7.00am to 6.00pm Mon to Fri. Business Operator Who will operate the business and under what structure (e.g. company, individual sole trader). • GrabACoffee Sole trader - Meg Latazzo. Executive Summary A summary of key aspects of your financial plan. The office building has about 10 floors and probably 500 workers It is expected to attract each day, at least: o 40 customers for pre-work o 70 for morning coffee o 70 for lunch time and o 20 for mid-afternoon o 60% of customers prefer a regular size coffee and o 40% prefer large size coffee 30% of customers will likely order a retail product in addition to their coffee In the first year, the profit target is to reach $3,000 per month within 12 months © Copyright. Monarch Institute 2023. All rights reserved. BSBESB403 Resource – Financial Plan
P a g e | 2 Financial Plan Business Objectives and Strategies How will you achieve your overall business goals and objectives. e.g. What are your special strategies to make the business succeed. Signs around the building foyer and posters on each floor Loyalty vouchers to generate repeat business Excellent quality coffee at an affordable price Markup on costs for coffee will initially be 15% Markup on costs for the retail pre-packaged products will be 10% List your Assumptions (seasonal, economy, industry) List the assumptions that form the basis for establishing your financial plan. For example, if there are seasonal factors that typically influence sales and/or cash flow, list these here. November: peak time high sales month of the year as workers try to finish work before holiday. December: lowest sales of the year as workers mainly are on holiday. Offices are closed… Product/service Pricing, Sales Targets and Expected Profit Complete the table with your estimates. Product or Service Price Annual Sales Quantity Annual Sales Revenue Annual Total Costs Annual Profit What is your product or service? What is the price of your product or service? What is total number of sales per year of your product or service? What is the annual sales revenue} (Price x annual sales quantity. What is the total cost per year of operating your business? What is the annual projected net profit?} Regular size coffee 3.07 29,200 89,611 leave blank leave blank Large size coffee 3.61 19,200 69,262 leave blank leave blank 600mlBottled Water 2.32 3,600 8,352 leave blank leave blank © Copyright. Monarch Institute 2023. All rights reserved. BSBESB403 Resource – Financial Plan
P a g e | 3 Financial Plan 200gmBanana Cake 6.17 3,600 22,212 leave blank leave blank 200gm Carrot Cake 6.17 3,600 22,212 leave blank leave blank 200gmChocChip Cookie 6.17 3,600 22,212 leave blank leave blank TOTAL 0 0 0 Projected Profit and Loss (Revenue - Expenses) Refer to your ‘Projected Sales & Profit’ tab on the ‘Product Pricing Worksheet’. Summarise the significant aspects especially the projected Net Profit and comment on the monthly trend and any seasonal changes. Projected Net Profit monthly $1,584.34 from Jan to Oct Significant high Net Profit on Nov $4,038.96 due to peak time high demand on office work of the year. Significant low Net Profit on Dec -$233.16 due to offices are closed due to holiday. Projected Cash Flow and Working Capital Requirements Refer to your ‘Projected Cash Flow’ tab on the ‘Product Pricing Worksheet’. Summarise the significant aspects and comment on the monthly trend. Net cash flow monthly trend : $1,584 Significant aspects of first month of beginning business is -$21,432 due to start up cost . © Copyright. Monarch Institute 2023. All rights reserved. BSBESB403 Resource – Financial Plan
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