4.

FINANCIAL PLANNING
4.1. Financial plan of store

Our store's revenue is derived from two primary sources: the sale of audio equipment, parts, and
accessories, as well as the sale of coffee in our café. To ensure optimal inventory management and cost
efficiency, we plan to initially procure inventory at a lower cost. As our revenue grows and demand
increases, we will strategically expand our inventory selection in subsequent months. This approach
allows us to adapt to market demand and optimize our inventory investment based on our evolving
financial performance.

4.2 Expense and amortization plans

In the initial phases, our operational expenses encompass several key areas critical to sustaining and
growing our business:

Website: This includes expenses associated with website maintenance, upgrades, and hosting, ensuring
our online presence remains effective and user-friendly.

Salary: Our workforce is vital to the smooth operation of our store, and therefore salaries for our
employees constitute a significant portion of our expenses.

Rent: Securing a physical location for our store incurs rental costs, reflecting our commitment to
providing a convenient and accessible space for our customers.

Marketing: Investment in marketing activities is essential for increasing brand awareness, attracting
customers, and driving sales growth.

These expenses are projected to grow over time in alignment with our expanding revenue and business
operations. Additionally, we will implement amortization plans for certain assets, distributing their costs
over their expected useful life. This prudent financial approach allows us to manage expenses effectively
and maintain financial stability while facilitating the sustained growth of our busines.

4.3. Financing Schedule and interest expense

We've established a financing schedule to manage our 10 million VND loan from the bank at an annual
interest rate of 5%. The loan will be repaid over a set period according to the following schedule:

Loan Amount: 10,000,000 VND

Annual Interest Rate: 5%
Loan Term: 12 months

By adhering to this financing schedule, we ensure timely repayment of the loan while minimizing
interest expenses and maintaining financial stability.

4.4 Financial indicators

Revenue indicators:

New customer count: The number of individuals or businesses who have made purchases from our
store.
Net Cumulative Customers: The total count of unique customers over a defined period, encompassing
both new acquisitions and retained clientele.

Average Transaction Value: The mean monetary value of transactions conducted within our
establishment, reflecting the typical spending behavior of our customers.

Commission Rate: The percentage of sales revenue allocated as commission to sales representatives or
affiliates for their services.

Income Statement Indicators:

Cost of Goods Sold: The direct expenses associated with acquiring audio equipment, parts, and coffee
for resale in our store.

Gross Profit: The difference between total revenue and the cost of goods sold, indicating the profitability
of our sales operations.

Gross Profit Margin: The percentage of revenue retained as gross profit after accounting for the cost of
goods sold, serving as a metric for operational efficiency.

Expense Section: A detailed breakdown of all operational expenditures including rent, utilities, wages,
and marketing costs, essential for assessing the overall financial health of our business.

EBIT (Earnings Before Interest and Taxes): A measure of operating profitability before accounting for
interest expenses and taxes, providing insight into the core profitability of our business operations.

Interest Expense: The total amount of interest paid on loans or other forms of debt utilized to finance
our business activities.

Net Profit Before Tax: The aggregate profit generated by our business before deducting tax liabilities,
indicative of our pre-tax financial performance.

Net Profit Margin: The percentage of revenue remaining as net profit after all expenses and taxes have
been deducted, serving as a key indicator of overall business profitability and sustainability.

4.5. Website operating costs

In addition to the aforementioned expenses, the breakdown of costs associated with website operation
includes:

Hosting: The fee paid to host the website on a server, allowing it to be accessible to visitors over the
internet.

Maintenance: The cost incurred for ongoing upkeep and technical support to ensure the website
functions smoothly and remains free of errors or glitches.

Upgrading: Expenses related to periodic updates and enhancements to the website's design,
functionality, or content to improve user experience and keep pace with technological advancements.

Security Implementation: Investments made to deploy and maintain robust security measures to protect
our website and users' data from potential cyber threats.
Server Renting: Costs associated with leasing or renting server space from a hosting provider to store
website files and data securely.

These detailed expenses are crucial for effectively managing the website's operational budget and
ensuring the smooth functioning, security, and performance of the online platform.

4.6. Income statement

Our revenue can be broadcasted in the first periods:

The revenue calculation method employed involves multiplying the monthly count of new customers by
the average transaction value. Subsequently, a deduction is made to account for the commission at the
predetermined rate. This approach encapsulates the essence of our business model, where the influx of
new customers and the value of each transaction collectively contribute to our overall revenue stream.

Following are income statement:

The Cost of Goods Sold (COGS) is determined using a straightforward formula: Beginning Inventory value
is added to the total Purchases made during the period, with the Ending Inventory subtracted.

Beginning Inventory value is sourced from our comprehensive item list, encompassing audio equipment
& parts as well as café inventory. As our business operates on a monthly basis, we consistently procure
additional inventory to meet demand. At the conclusion of each month, Ending Inventory is calculated
to accurately determine COGS.
The expenses including the main ones, but the Marketing expense is zero at the first periods so we can
save a bit money.

Interest expenses is 10 million VND. This indicates a substantial financial burden arising from debt
obligations. High interest expenses can significantly impact the company's ability to generate profits and
meet other financial obligations.

While achieving profitability in the initial period presents challenges, overcoming these hurdles can lead
to improved performance in subsequent months.

Total in yearly period:

4.7. Sensitivity analysis of the project

Cash flow identified throughout three years projection:

cash flow 1 (2024) : 650,400,000 VND

Cash flow 2 (2025) : 5,902,800,000 VND
Cash flow 3 (2026): 13,492,800,000 VND

With a discount rate of 10%, we got the NPV value calculated approximately 15,606,960,180 VND.
 Yearly periods income statement broadcast.

Revenue Sensitivity Analysis

2024:

Increase Scenario: If the revenue increases by 10% to 1,015,080,000 VND, the new EBIT would be:

1,015,080,000−152,400,000= 862,680,000 VND

Decrease Scenario: If the revenue decreases by 10% to 830,520,000 VND, the new EBIT would be:

830,520,000−152,400,000= 678,120,000 VND

2025:

Increase Scenario: If the revenue increases by 10% to 7,608,480,000 VND, the new EBIT would be:

7,608,480,000−804,000,000= 6,804,480,000 VND

Decrease Scenario: If the revenue decreases by 10% to 6,225,120,000 VND, the new EBIT would be:

6,225,120,000−804,000,000= 5,421,120,000 VND

2026:

Increase Scenario: If the revenue increases by 10% to 16,426,080,000 VND, the new EBIT would be:

16,426,080,000−1,320,000,000= 15,106,080,000 VND

Decrease Scenario: If the revenue decreases by 10% to 13,439,520,000 VND, the new EBIT would be:

13,439,520,000−1,320,000,000= 12,119,520,000 VND

4.8. Project Evaluation

The Harmonic project undergoes a challenging initiation phase, characterized by a lack of immediate
profitability and a pressing need for substantial investments, particularly in infrastructure. These initial
hurdles necessitate significant expenses, which may strain financial resources in the short term.
However, as the project matures and operational efficiencies are optimized, there is a strong potential
for it to rebound with resilience. With prudent management of expenses and strategic allocation of
resources, the project holds promise for future financial viability and prosperity.

Here is the outline of the project's fundraising plan:

5. CONCLUDE

Reference:

https://docs.google.com/spreadsheets/d/1j_TV9VvIvktted1cep0R6Oq2EWyZXWeKmf2svoXiBRs/edit?
usp=sharing