Expands its markets to the other regions we will

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expands its markets to the other regions, we will adopt the intermediaries into our distribution channel to ensure that the products reach the customers more efficiently. These include the retailers and wholesalers. The company will also require the effort of the sales agents to help in the sales and distribution of its products to the customers. 10.0. Financial Plan Initial Set-Up The initial business set-up will require an approximate of $500,000, which will include both the registration and set up costs for the company. As a limited liability company, the registration process for the company will require the services of an attorney who is expected to facilitate the registration. It is estimated that the professional costs in the business establishment will be approximate $50,000. The remaining funds will be used in the acquisition of the brewing machinery and renting a business space for the first year of operations. The following table presents a summary of the start-up costs that the company will incur to get the company running at the initial stages of business existence. Cost Element Amount Registration $50,000 Renting Expenses $100,000 Facilities $350,000 Total $500,000 Sales Forecast It is expected that there will be a significant growth in the company sales due to the increased number of customers in the market as well as the enlarged market share. As the company grows bigger into the industry, it expands its operations to newer markets and attracting more customers. This translates into a high revenue and profits in the next three years. Based on the sales forecast, it is expected that the sales for the beers, wines and spirits products will rise by 3% over the next three years, an indication of an improved financial performance. Assuming that the sales prices will remain constant over the same period, the company will realize a significant growth in the number of sales units due to the enlarged market share. The number of customers due to the good customer service, low pricing, high-quality, and high customer satisfaction will increase translating to high sales revenue. The cost of sales will, however, rise by 5% for the same period as presented in the forecasted income statements presented in the table below. Finally, the net earnings reported by the firm is expected to rise over the next five years due to the growing sales volume and market share. The chart bellows reports both a forecast of the company’s income statement and balance statement over the next three years of operations. Income Statement 2018 2019 2020
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Surname 16 ('000) Dollars ('000) Dollars ('000) Dollars Income 256,875 264,581 272,519 Cost of Sales 141,281 148,345 155,763 Total Income 115,594 116,236 116,756 Operating Expenses Salaries And Wages 45,860 46,777 47,713 Bank Charges 11,540 11,771 12,006 Travelling And Accommodation 8,960 9,139 9,322 Communication 2,500 2,550 2,601 Utility Expenses 3,520 3,590 3,662 Vehicle Running Expenses 2,100 2,142 2,185 Repairs And Maintenance 2,300 2,346 2,393 Rent Expenses 1,200 1,224 1,248 Depreciation 600 612 624 Professional Costs 1,800 1,836 1,873 Licensing and Permits 5,800 5,916 6,034 Total Expenses 86,180 87,904 89,662 Surplus/(Deficit) For The Period 29,414 28,332 27,094 Table 1: Forecasted Income Statement for the company
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  • Summer '16
  • Dr. Willy
  • Marketing, ........., Thrillers Breweries Company

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