The goal is to write a business plan for "Stark". Stark is a virtual marketing agency that produce internet marketing products and SEO services. Location: Oman. More details of Stark and and assignment grading instructions are attached. Additional Pro

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Home>Chemistry homework help>The goal is to write a business plan for "Stark". Stark is a virtual marketing agency that produce internet marketing products and SEO services. Location: Oman. More details of Stark and and assignment grading instructions are attached. Additional Pro

Instructions

INSTRUCTIONS
Last update: 22-Dec-11
Type of company: Product sales
Input cells: Yellow ONLY ENTER NUMBERS IN YELLOW CELLS
Calculation cells: Blue DON'T PUT ANY NUMBERS IN BLUE CELLS
Protection: On
Macros: None
Hidden cells: None
Once you've completed all inputs in the following three tabs, make sure to take significant time reviewing the "Five Year Summary" tab.
Most business will begin to turn an annual profit in year 2 or 3, so pay particular attention to your EBITDA results
in those years. Remember, your asking investors to put money into your company and they will expect to see that
your business will be viable (profitable) relatively quickly so that they can remain confident that your business will be successful

&K000000VENTURE NAME &K000000E-SCHOLAR NAME &K000000DATE PREPARED

Startup Capital & Expenses

STARTUP CAPITAL AND EXPENSES : Stark Marketing Agency Asim Al Hamedi 11/12/18 15:47
Color Meaning
Yellow Cells are Input Cells
Blue Cells will calculate - no input required
DESCRIPTION COST
Depreciable Assets (useful life greater than one year; cost > $2,500)
Machinery & Equipment & Office Furnishings/Equipment $ - 0
Computer & Related Equipment $ 100
Leasehold Improvements $ 70
Other $ 100
TOTAL $ 270
Product/Service-Related Expense Items
Product Development Costs $ 80
Prototype Testing $ 100
Manufacturing Testing $ 50
IP Legal Expenses $ 100
Regulatory Compliance Testing $ 40
Other (Specify) Web Domains and Platforms $ 60
TOTAL $ 430
Non-Product Related Expense Items (short-term expendable items)
Supplies $ 100
Travel & Living Expenses $ 150 After first years of business operation
Registration Fees $ 100
Legal & Accounting $ 120
Rental, Leases, Utilities $ 110
Telephone/Communications $ 80
Temporary Employees/Contractors $ 80
Other (Specify) $ - 0
Other (Specify) Breakfast for Employees $ 120
TOTAL $ 860
Working Capital (initial current assets & current liabilities)
Supplies Inventory $ 150
Product Inventories -- Cost Goods Sold/Turn Rate $ 120
Prepaid Insurance/Deposits $ 80
Cash Reseves - 3-4 Months $ 120
TOTAL $ 470
TOTAL START-UP EXPENSES $ 2,030

Sales and Variable Costs

SALES REVENUE + Direct Cost PROJECTIONS : YEARS 1 - 5 Stark Marketing Agency
Yellow Cells are Input Cells
Blue Cells will calculate - no input required
Revenue Stream #1: Year 1 Year 2 Year 3 Year 4 Year 5 Stark Marketing Venture
Total Available Market - units 10000 15000 18000 20000 30000
Unit Sales (this business) 100 100 100 100 100
% Market Share (this business) 1.0% 0.7% 0.6% 0.5% 0.3%
Selling Price Per Unit ($) $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00
Total Sales/Revenues (Share Units x Price) $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Direct Cost Per Unit: Materials ($) * $ 2.50 $ 2.50 $ 2.50 $ 2.50 $ 2.50
Direct Cost Per Unit: Labor ($) * $ 2.50 $ 2.50 $ 2.50 $ 2.50 $ 2.50
Direct Cost Per Unit ($) * $ 5.00 $ 5.00 $ 5.00 $ 5.00 $ 5.00
Total Direct Costs (Share Units x Cost) $ 500 $ 500 $ 500 $ 500 $ 500
Total Gross Margin $ 500 $ 500 $ 500 $ 500 $ 500
% Gross Margin 50% 50% 50% 50% 50%
Revenue Stream #2: Year 1 Year 2 Year 3 Year 4 Year 5 Muscat Real Estate
Total Available Market - units 5000 10000 15000 20000 25000
Unit Sales (this business) 100 100 100 100 100
% Market Share (this business) 2.0% 1.0% 0.7% 0.5% 0.4%
Selling Price Per Unit ($) $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00
Total Sales/Revenues (Share Units x Price) $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Direct Cost Per Unit: Materials ($) $ 2.50 $ 2.50 $ 2.50 $ 2.50 $ 2.50
Direct Cost Per Unit: Labor ($) $ 2.50 $ 2.50 $ 2.50 $ 2.50 $ 2.50
Direct Cost Per Unit ($) $ 5.00 $ 5.00 $ 5.00 $ 5.00 $ 5.00
Total Direct Costs (Units x Cost) $ 500 $ 500 $ 500 $ 500 $ 500
Total Gross Margin $ 500 $ 500 $ 500 $ 500 $ 500
% Gross Margin 50% 50% 50% 50% 50%
Revenue Stream #3: Year 1 Year 2 Year 3 Year 4 Year 5
Total Available Market - units 0 0 0 0 0
Unit Sales (this business) 0 0 0 0 0
% Market Share (this business) 0.0% 0.0% 0.0% 0.0% 0.0%
Selling Price Per Unit ($) $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Total Sales/Revenues (Share Units x Price) $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Direct Cost Per Unit: Materials ($) $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Direct Cost Per Unit: Labor ($) $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Direct Cost Per Unit ($) $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Total Direct Costs (Units x Cost) $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Total Gross Margin $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
% Gross Margin 0% 0% 0% 0% 0%
Revenue Stream #4: Year 1 Year 2 Year 3 Year 4 Year 5
Total Available Market - units 0 0 0 0 0
Unit Sales (this business) 0 0 0 0 0
% Share (this business) 0.0% 0.0% 0.0% 0.0% 0.0%
Selling Price Per Unit ($) $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00
Total Sales/Revenues (Share Units x Price) $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Direct Cost Per Unit: Materials ($) $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Direct Cost Per Unit: Labor ($) $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Direct Cost Per Unit ($) $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Total Direct Costs (Units x Cost) $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Total Gross Margin $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
% Gross Margin 0% 0% 0% 0% 0%
Revenue Stream - Other: Year 1 Year 2 Year 3 Year 4 Year 5
Unit Sales (this business) 13000 20000 28000 30000 35000 Turkish Barbershop Chain
Share of Market - units (this business) 100 100 100 100 100
% Share (this business) 0.8% 0.5% 0.4% 0.3% 0.3%
Selling Price Per Unit ($) $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00
Total Sales/Revenues (Share Units x Price) $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Direct Cost Per Unit: Materials ($) $ 2.50 $ 2.50 $ 2.50 $ 2.50 $ 2.50
Direct Cost Per Unit: Labor ($) $ 2.50 $ 2.50 $ 2.50 $ 2.50 $ 2.50
Direct Cost Per Unit ($) $ 5.00 $ 5.00 $ 5.00 $ 5.00 $ 5.00
Total Direct Costs (Units x Cost) $ 500 $ 500 $ 500 $ 500 $ 500
Total Gross Margin $ 500 $ 500 $ 500 $ 500 $ 500
% Gross Margin 50% 50% 50% 50% 50%
Year 1 Year 2 Year 3 Year 4 Year 5
Total Revenues $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000
Total Direct Costs: Materials ($) $ 750 $ 750 $ 750 $ 750 $ 750
Total Direct Costs: Labor ($) $ 750 $ 750 $ 750 $ 750 $ 750
Total Direct Costs (Cost Sales) $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500
Total Gross Margin $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500
% Gross Margin 50% 50% 50% 50% 50%
Percent Revenue (Sales ) Growth per Year 0% 0% 0% 0% 0%
* We use the term "direct costs" to refer to variable costs, which are those costs that vary with changes in the number of units produced.
Examples include materials, packaging, shipping, and some labor costs.
These costs are also referred to as the Cost of Goods Sold (CSG).

Summary Income Statement

SUMMARY INCOME STATEMENT : VENTURE NAME HERE YOUR NAME HERE
(Dollars in thousands, "000") Year 1 Year 2 Year 3 Year 4 Year 5
Revenue Stream #1 0 From "Market Share/Revenue" Schedule
Revenue Stream #2 0 " " " " "
Revenue Stream #3 0 " " " " "
Revenue Stream #4 0 " " " " "
Revenue Stream - Other 0 " " " " "
Total Sales/Revenues $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 Minimums: $50,000 year 1 and $1.0 million year 5
Variable Costs:
Cost of Goods/Services Sold - 0 - 0 - 0 - 0 - 0 From "Market Share/Revenue" Schedule
Contribution Margin $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
% C. M. 40.0% 40.0% 40.0% 40.0% 40.0% From "Assumptions" Schedule - Minimun = 40%
Fixed Costs:
Selling & Administrative Expenses From "Assumptions" Schedule
Depreciation, Rent, Facilities Costs " " " "
Total Fixed Costs - 0 - 0 - 0 - 0 - 0
% Sales ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! From "Assumptions" Schedule - Generally, 20% +
Operating Margin $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
% O. M. ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0!
Interest Expense From "Assumptions" Schedule
Earnings Before Taxes $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Federal/State Income Taxes 35% - 0 - 0 - 0 - 0 - 0 From "Assumptions" Schedule
Earnings After Taxes $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
% Earnings After Taxes ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0!

Summary Balance Sheet

SUMMARY BALANCE SHEET : VENTURE NAME HERE YOUR NAME HERE
(Dollars in thousands, "000") Initial
Capitalization Year 1 Year 2 Year 3 Year 4 Year 5
Current Assets
Cash From "Assumptions" Schedule
Accounts Receivables " " " "
Inventory " " " "
Prepaid Assets " " " "
Other Current Assets " " " "
Total Current Assets 0 0 0 0 0 0
Long-Term Assets:
Furniture, Fixtures, Equipment From "Assumptions" Schedule
Computer Equipment " " " "
Intangible assets " " " "
Other Long-term assets " " " "
Total Long-Term Assets 0 0 0 0 0 0
Total Assets 0 0 0 0 0 0
Current Liabilities From "Assumptions" Schedule
Accounts Payable " " " "
Payroll Payable " " " "
Taxes Payable " " " "
Short-term debt " " " "
Other current liabilities
Total Current Liabilities 0 0 0 0 0 0
Long-Term Debt From "Assumptions" Schedule
Shareholders Equity
Capital Contributed From "Assumptions" Schedule
Retained Earnings From "Income Statements"
Total Shareholders Equity 0 0 0 0 0 0
Total Liabilities & Equity 0 0 0 0 0 0
0 0 0 0 0 0 Ck - Assets = Liabilities & Shareholders Equity

Summary Cash Flow

SUMMARY CASH FLOW : VENTURE NAME HERE YOUR NAME HERE
(Dollars in thousands, "000") Year 1 Year 2 Year 3 Year 4 Year 5
Cash Flow from Operations
Net Income
Change in Working Capital
Depreciation
Total Cash Flow--Operations 0 0 0 0 0
Cash Flows - Investments
Furniture, Fixtures, Equipment
Computer Equipment
Other
Total Cash Flow - Investments 0 0 0 0 0
Cash Flows - Financing
Stock
Debt--Loans
Other
Total Cash Flow - Financing 0 0 0 0 0
Total Cash Flow 0
Beginning Cash Balance 0 0 0 0
Change This Period
Ending Cash Balance 0 0 0 0 0

Equipment Purchases

FIVE YEAR SUMMARY Stark Marketing Agency 11/12/18 15:47
BUILDING AND EQUIPMENT PURCHASES
Assumed Year 1 Year 2 Year 3 Year 4 Year 5
Life
Machinery & Equipment & Office 8 $ 60 $ 75 $ 80 $ - 0 $ - 0
Computer & Related Equipment 3 $ 70 $ 80 $ 100 $ - 0 $ - 0
Leasehold Improvements 5 $ 100 $ 100 $ 100 $ 100 $ 100
Other 5 $ 50 $ 80 $ 130 $ 150 $ 250
Allocated Annual Equipment Purchases $ 61 $ 133 $ 222 $ 249 $ 292 (Note: Summary of information in lower cells)
Allocation of Machinery & Equipment & Office
$ 8 $ 8 $ 8 $ 8 $ 8
$ 9 $ 9 $ 9 $ 9
$ 10 $ 10 $ 10
$ - 0 $ - 0
$ - 0
Allocation of Computer & Related Equipment $ 23 $ 23 $ 23 $ - 0 $ - 0
$ 27 $ 27 $ 27 $ - 0
$ 33 $ 33 $ 33
$ - 0 $ - 0
$ - 0
Allocation of Leasehold Improvements $ 20 $ 20 $ 20 $ 20 $ 20
$ 20 $ 20 $ 20 $ 20
$ 20 $ 20 $ 20
$ 20 $ 20
$ 20
Allocation of Other Equipment Purchases $ 10 $ 10 $ 10 $ 10 $ 10
$ 16 $ 16 $ 16 $ 16
$ 26 $ 26 $ 26
$ 30 $ 30
$ 50

Five Year Summary

FIVE YEAR SUMMARY Stark Marketing Agency 11/12/18 15:47
ROUGH FINANCIAL PROJECTIONS
Year 1 Year 2 Year 3 Year 4 Year 5
REVENUES $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000
DIRECT COSTS (COST OF GOODS SOLD) * $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500
CONTRIBUTION MARGIN ($) $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500
CONTRIBUTION MARGIN (%) 50% 50% 50% 50% 50%
GENERAL ADMINISTRATIVE
Employee Salaries $ 100 $ 100 $ 100 $ 100 $ 100
Employee Benefits 15% $ 15 $ 15 $ 15 $ 15 $ 15
Outsourced Services $ 50 $ 80 $ 90 $ 100 $ 100
Rent $ - 0 $ - 0 $ 150 $ 150 $ 150
Utilities $ - 0 $ - 0 $ 100 $ 100 $ 100
Telephone $ 100 $ 100 $ 100 $ 100 $ 100
Transportation $ 100 $ 100 $ 100 $ 100 $ 80
Insurance $ 50 $ 60 $ 70 $ 80 $ 80
Bad Debt Expense $ 100 $ 100 $ 100 $ 100 $ 70
Legal & Accounting $ 80 $ 90 $ 90 $ 90 $ 60
Marketing $ 60 $ 80 $ 90 $ 100 $ 110
Office Supplies $ 70 $ 70 $ 70 $ 70 $ 70
Equipment Leases $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Equipment Purchases $ 61 $ 133 $ 222 $ 249 $ 292
Other Expenses 1 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Other Expenses 2 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Other Expenses 3 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Other Expenses 4 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
TOTAL G&A EXPENSES $ 786 $ 928 $ 1,297 $ 1,354 $ 1,327
G&A Percentage 26% 31% 43% 45% 44%
Earnings Before Interest, Taxes, & Depreciation $ 714 $ 572 $ 203 $ 146 $ 173 Most business will begin to see a positive EBITDA in the first
EBITDA (%) 24% 19% 7% 5% 6% 2 or 3 years of operations. If your data does not have a positive
EBITDA by at least year 3, review your inputs and/or explain why
BREAKEVEN ANALYSIS your business remains EBITDA negative at this point.
Year 1 2 3 4 5
Cumulative EBITDA $ 714 $ 1,286 $ 1,489 $ 1,635 $ 1,808
Cumulative EBITDA Minus StartUp Costs $ (1,316) $ (744) $ (541) $ (395) $ (222) Expectation is that most business will have positive Cum EBITDA
Breakeven Sales $ 1,572 $ 1,856 $ 2,594 $ 2,708 $ 2,654 by year 4 or 5. If your business doesn’t, explain why and/or revise inputs
Non-discounted Payback Period (in years)
* The term "direct costs" refers to variable costs, which are those costs that vary with changes in the number of units produced. These cost are also referred to as your "Cost of Goods Sold."
Venture Justification/Comments
I removed the rent and utilities during the first and second year as we will be living temporarly in our family house and run the business online while handeling the customers via phone calls. As far as equipments, we will not purchase many equipment as our business falls in the e-Commerce industry, thus everything is virtual. The EBITDA got lower after the second year beacuse this is our transformation year when we will purchase our business office in the capital city of Oman " Muscat". The employees at first years are only two, me and my brother.