industry overview
Financial Plan: Product Breakdown
Initial Personal investment: $100,000
Production cost: $8.50
Packaging cost: $1.50
Retail: $30.00
Total Profit: $20.00
The start up costs for Sweat-B-Gone totaled $100,000.00 which was obtained from a retirement savings withdraw made by the entrepreneur. Before Sweat-B-Gone went into production, the total initial investment for research to perfect the Sweat-B-Gone formula was $50,000.00. The other $50,000.00 was used to produce 5,000, 30-day supply bottles, ready to sell. The cost to produce a 30-day supply of Sweat-B-Gone is $8.50 with an additional cost of $1.50 for packaging and labels. The total production cost for a 30-day supply of Sweat-B-Gone is $10.00. Retail for Sweat-B-Gone is currently at $30.00 for a 30-day supply.
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Financial Plan: 1st Quarter revenue
5,000 30-day supplies produced
Q1: Sold out of start up batch
Sales of 150K
Use of Funds
The first batch of Sweat-Be-Gone sold out within the first three months of going on the market producing a revenue of $150,000.00. the profits will be used to produce more product to meet the current demand of sales. With $150,000.00 there is sufficient funds to produce 15,000 30-day supplies.
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Team Development
The best part about the production process is that by contracting the bottling and labeling there is significant cost savings. The contracted company’s current rate per bottle is $10.00 which includes production of the Sweat-B-Gone pill and bottling/labeling. These costs have already been factored into the product sales.
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3 Year Forecast
Pre-Orders for 6,000
Increased of 20%
Continuous increase in sales
Year 3 projections
At the start of the 2nd quarter there has been sales generated from pre-sales of products totaling 1,000. Sweat-B-Gone is currently in production of its second batch which is expected to ship out this month. We have anticipated an increase in sales by 20%. With a sales goal of 6000 products sold in the second quarter that is an anticipated net profit of $120,000.00. While it is still early in the development of this business there is clearly a demand for this product, which as of now there is nothing like it on the market. Continuous growth is expected and the first year profits are expected to be around 26,840 products sold resulting in a gross profit of $805,200.00 for the first year in production. It is anticipated to see a continued growth of 20% each year. In year 2 there is an anticipated gross sales of $996,240.00 and in year three, with continuous growth at 20% Sweat-B-Gone will see gross sales at $1,189,488.00.
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