Financial Statement and overview
fyjames
Overvieww_comments.docx
FINANCIAL PLAN
Financial Overview
We project to break even in the first year. The program will work on minimizing expenses to ensure higher returns. The revenues in the first year are projected to be at $2,384,253.20. This shows that the company would have recovered the 2,000,000 initial investments. However, the growth of the revenue is slow from one year to another. The revenue change between the first and the second year is projected to be at 0.67%. In the second year and third year, the revenue growth will be 0.87. Therefore, there will be small increases in revenue over the entire period with the difference between the first and fifth year revenues being 3.3%.
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The main expenses will be attributed to the marketing and promotion expenses which will be $27,692.00 at the end of first year. xpenses are expected to grow over the years due to an increase in client base. We project that by the fifth year there will be a significant increase in the Chinese students enrolled in the program and a marked increase in the interested fields we will have introduced. Increasing the number of students should lead to increase in the administrative expenses, mainly the cost from planning and facilitating workshops that attract more customers. These workshops are expected to help grow the institution and show the importance of apprenticeship, and eventually lead to a strong increase in apprenticeship programs established as well as career options offered.
We project that the program is going to experience a fluctuation in the costs. The only fixed cost is from the rent of facilities. However, all the other expenses are var. ach year a revision will be done to increase competitiveness through reduction of expenses.otal expenses are$760,785. This is a high for the businessremain $61,016.
