Financial Plan
- Startup Costs
| Startup Costs | |
| Owner’s Salary | $ 25,000 |
| Employee’s | $ 5,000 |
| Office Furniture | |
| Office Desk(2) | $ 1,000 |
| Office Chair(4) | $ 400 |
| Filing Cabinet(2) | $ 500 |
| Computer(2) | $ 1,500 |
| Printer/Scanner/Fax | $ 500 |
| Small Business Owner Insurance | $ 1,000 |
| Telephone Line | $ 50 |
| Cellphone Charge(1) | $ 50 |
| Supplies | $ 100 |
| Legal Fees | $ 90 |
| Tax | $ 400 |
| TOTAL | $ 35,590 |
- Monthly Costs
| Monthly Costs | ||
| Salaries | $ 2,500 | Primary Owner(me), 1 part time student worker |
| Utilities | $ - | Office is on campus, so no extra charges |
| Advertisement | $ 250 | Advertise on campus along with BCIT ads to start, expansion based on future earnings |
| Insurance | $ 300 | General business liability insurance |
| Supplies | $ 50 | General office supplies, paper, paper clips, staples, folders |
| Unexpected | $ 150 | Estimated possibilities |
| TOTAL | $ 3,250 | Per Month |
- Projected Income Statement
|
Income Statement |
|
|
BCIT Student Ventures |
|
|
31-Dec-10 |
|
| REVENUE | |
| Successful Startups(50) | $ 30,000 |
| Advertisements(5) | $ 24,000 |
| TOTAL REVENUE | $ 54,000 |
| Gross Profit | $ 54,000 |
| Less Fixed Costs | |
| Salaries | $ 2,500 |
| Utilities | $ - |
| Advertisement | $ 250 |
| Insurance | $ 300 |
| Supplies | $ 50 |
| Unexpected | $ 150 |
| Monthly | $ 3,250 |
| TOTAL COSTS | $ 39,000 |
| Profit before Tax: | $ 15,000 |
| Tax(20% estimated) | $ 3,000.0 |
| NET INCOME | $ 12,000.0 |
- Breakeven Time and Payback Period
| Fixed Cost | $ 39,000 |
| Contribution Margin | $ 54,000 |
| Breakeven(years) |
0.722 |
| Breakeven(months) |
9 |
| Start-up Costs | $ 36,290 |
| Project Income | $ 12,000 |
| Payback Time(years) |
3 |
Funding Source
BCIT will fund 80% of the business starting out, $60,232, and I will fund the rest $15,058.
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