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Group 11 - Basic Financial Plan
Group 11 - Basic Financial Plan
Group 11 - Basic Financial Plan
Use the Template given in the next tab to create your Basic Financial Plan.
Keep the following points in mind while using the template:
• The Template given has been created for a Smoothie business.
• To create the Basic Financial Plan for your venture, replace the values entered in black with your ve
• Please do not enter any data in the red cells. Those will be calculated automatically by the formula
Key terms, what they mean and how they are calculated
Fixed Costs You incur these costs irrespective of whether y
that is purchased
These are costs that you incur only if you prod
Variable Costs produce e.g. contractual payments for addition
Average cost per unit of product sold; ideally if
difference in pricing, you will calculate this sep
Price per unit
Purchase frequency Avg. no. of times your customers are expected
Your costs per unit calculation = (fixed cost / total units) + Your actual per unit is a sum of your fixed cost
variable cost
Price per unit = the price at which you will sell the product Ideally your price per unit should be higher tha
Sometimes, your investment upfront is very hi
reach a certain capacity of production and or w
Break-Even Point (Units) Fixed Costs ÷ (Revenue per Unit – Variable Cos
Break-Even Point (currency sales) Fixed Costs ÷ Contribution Margin
Contribution Margin = Price of Product – Variable Costs Contribution margin is what goes towards fulfi
is your profit
s irrespective of whether you produce something or not e.g. salaries, rents, equipment
you incur only if you produce something and even then against the units that your
tual payments for additional workers, raw materials, rentals on equipment
t of product sold; ideally if you have more than one type of product with a vast
you will calculate this separately for each product type
ur customers are expected to or actually buy your product or service
is a sum of your fixed cost divided by your total units and your variable costs
r unit should be higher than your cost per unit - otherwise you will make a loss.
estment upfront is very high and your price per unit will only make sense when you
city of production and or when you have sold a certain no. of products.
BASIC FINANCIAL P
Startup Costs PHP
Manufacturing Equipment ₱ 10,000,000.00
Building ₱ 15,000,000.00
R&D ₱ 10,000,000.00
Insurance ₱ 7,500,000.00
Office supplies ₱ 1,500,000.00
Office Equipment ₱ 3,600,000.00
Start up Tax
Building / Fair Market Value ₱ 15,000,000.00
Metro Manila Property Tax Rate 2%
Assesed Indutrial Property Percentage 50%
Real Property Tax: ₱ 150,000.00
Water 237,000.00
Internet 80,000.00
Advertising 2,500,000.00
Machineries Depreciation 100,000.00
Oil 4,500.00 50 90
Glass 5,280.00 80 66
Paint 3,600.00 15 240
Auto Shipping cost/unit 38,213.00 1 38,213
For WDG Motor (4):
Steel 7,300.00 100 73
Rubber 2,610.00 20 131
Aluminum 11,680.00 80 146
neodymium magnets 8,000.00 4 2,000
Copper 99,200.00 200 496
Total 375,098.00 1930
SUMMARY
Revenue PHP
Sales 21,750,000.00
Others
Total 21,750,000.00
Profit 7,236,530.00
Breakeven 8.27
* This is the amount of "cash" you have at your disposal that you decided to spend
on the venture at the time of starting up.