Product MGMT Strategic Branding - Topic 10 - Financing Your Brand

Topic 10
Financing Your Brand

Resources
1. Will, Amy. (2022). Launching & Building a Brand For Dummies. Hoboken, New Jersey: John Wiley & Sons Inc.
chapter 2
2. Render, Barry. and Stair, Ralph M. JR and Hanna, Michael, E. Quantitative Analysis for Management, 10th ed. New
Jersey, NJ: Pearson Prentice Hall, 2006
3. https://www.youtube.com/watch?v=9002k78uhHI
4. https://www.youtube.com/watch?v=vI545FzcRB4
Table of contents
01 02
Financing Your Break Even
Brand Analysis
Financing
Your Brand
Budgeting Your Brand
Create a list of everything you need to make it success, research price, and so on
THIS PRESENTATION SLIDE IS PREPARED BY SYLVIA, ST, MSC FOR TEACHING PURPOSE BASED ON THE SOURCE & BOOKS LISTED IN RESOURCES SLIDE. DO NOT SHARE OR DISTRIBUTE WITHOUT PERMISSION
SELF FUNDED BRAND
Benefit:
1. Total control of all business and decisions
2. Keep 100% profit
Drawbacks:
1. You are responsible 100% for all business/ brand decisions
2. You suffer 100% losses
3. You have limited access to financing to fuel growth and pursue opportunities
Creating Biz Plan
BUSINESS PLAN
Summary Include your business/ brand is and does,
Why it is better than competition,
Your bio and experience
The product/ service you offer
Why you think your business/ brand will be successful
Strategy, goals, Your strategy is your big plan of how you will achieve your success . Goals are what you need to
objectives, activities accomplish to execute your strategy. Objectives are measurable milestones you must meet to
reach your goals
Market/ competitive Describe the industry / market and any existing competition, and to show how yr brand is
analysis different and better than what’s already available
Financial Projection Your budget to start and run business (cost)
How much money you are expecting to pull in (revenue)
Projected profit (revenue – cost)
How you plan to pay back any loans or investors
*prepare for setbacks, unexpected cost, missed goals
Getting Grants
Depending on your brand/ business, you might get grant to finance it.
Grant: free fund provided by organization/ government/ corporation to stimulate economy,
improve communities, empower certain demographics (for example: women in business)
Google Ads Grant.
Source: https://www.youtube.com/watch?v=9002k78uhHI
Estee Lauder Emerging Leader Fund.
Source: https://www.youtube.com/watch?v=vI545FzcRB4
Getting Grants
Depending on your brand/ business, you might get grant to finance it.
Grant: free fund provided by organization/ government/ corporation to stimulate economy,
improve communities, empower certain demographics (for example: women in business)
Government Demographic Corporation

Grant Specific Grant Grant
Financing with Debt & Equity
Financing with debt: borrowing money (from bank)
Financing with equity: selling a stake in your business/ brand (investor)
Break Even
Analysis
Model Building:
Break-Even Analysis (1 of 9)
■ Used to determine the number of units of a product to

sell or produce that will equate total revenue with total
cost.
■ The volume at which total revenue equals total cost is

called the break-even point.
■ Profit at break-even point is zero.

COPYRIGHT © 2010 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL. **VIDEO/AUDIO RECORDING FOR COMPUTER SOLUTION ILLUSTRATION IS PREPARED BY SYLVIA, ST, MSC. DO NOT
DISTRIBUTE OR SHARE VIDEO/ AUDIO RECORDING WITHOUT PERMISSION
Model Building:
Model Components
Fixed Cost (cf) - costs that remain constant regardless of
number of units produced.
Variable Cost (cv) - unit production cost of product.
Volume (v) – the number of units produced or sold
Total variable cost (vcv) - function of volume (v) and unit

variable cost.
Model Building:
Model Components
Total Cost (TC) - total fixed cost plus total variable cost.
TR=V.P
TC= cf + vcv
Profit (Z) - difference between total revenue vp (p = unit price)
and total cost, i.e.
Z=TR-TC
Z= vp - (cf + vcv)
Model Building:
Computing the Break-Even Point

The break-even point is that volume at which total
revenue equals total cost and profit is zero:
vp − c f − vcv = 0
TR=TC
v( p − cv ) = c f
vp=cf+vcv
The break-even point cf

v=
p − cv
Model Building:
Example: Western Clothing Company
Fixed Costs: cf = $10000

Variable Costs: cv = $8 per pair
Price : p = $23 per pair
The Break-Even Point is:
v = (10,000)/(23 -8)
= 666.7 pairs
QUIZ 4
Example: Western Clothing Company
Volume: V=1000
Variable Costs: cv = $8 per pair
Price : p = $23 per pair
Fix cost is:
Cf = ?
Model Building:
Figure 1.2
Model Building:
Figure 1.3
Model Building:
Figure 1.4
Model Building:
Figure 1.5
Break-Even Analysis: Excel Solution (1 of 5)
Exhibit 1.1
PRACTICE 1
The Willow Furniture Company produces tables. The fixed monthly cost of production is
$8,000, and the variable cost per table is $65. The tables sell for $180 a piece.
a. For a monthly volume of 300 tables, determine the total cost, total revenue, and profit.
b. Determine the monthly break-even volume for the Willow Furniture Company.
Thank You
This Presentation Slide is prepared by Sylvia, ST, MSc for teaching purpose
based on the source & books listed in Resources slide.
Do not Share or Distribute Without Permission

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Topic 10

Financing Your Brand

Government Demographic Corporation

■ Used to determine the number of units of a product to

■ The volume at which total revenue equals total cost is

■ Profit at break-even point is zero.

Variable Cost (cv) - unit production cost of product.

Volume (v) – the number of units produced or sold

Total variable cost (vcv) - function of volume (v) and unit

Computing the Break-Even Point

The break-even point cf

Example: Western Clothing Company

Fixed Costs: cf = $10000

The Break-Even Point is:

Fix cost is:

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