%2FDeliverUserData%2F#3797 - FastCart Business Plan.docx

Made the assumption that there could be more than 150

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made the assumption that there could be more than 150 customers per day before the market is fully stable and more customers start streaming for more products. This value is for the weekdays while for the weekend, the business expects a surge to more than 350 customers during the holidays or weekends hence more revenue. Since the business feature different products that could go for as little as $1 as well as others that could be as much as $4500, the company is of the thought that the daily returns from business could be as low as $23,500 for the monthly operations and as much as $450,000 after the business has already stabilized in the international market. Income Statement and Balance Sheet Monthly Income Statement YEARLY Revenue (Sales) $450,000 Gross Profit Expenses Rent 400 Salaries and Wages 2500 Supplies 10000 Advertising and Other Promotions 2500 Utilities: Heat, Electricity, etc. 3300
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FASTCART BUSINESS PLAN 15 Insurance 5000 Telephone and Internet 500 Total 68500 Net Profit $381,500 Balance Sheet Assets Fixed Assets $ Motor Bikes (50 bikes each worth $2500) 12,500 Machinery and Equipment 15,000 Furniture and Fixtures 5,000 Real Estate/Buildings Total Fixed Assets 32,500 Current Assets Cash 15,000 Prepaid Expenses (insurance) 5000 Total Current Assets 20,000 Total Assets 52,500 Liabilities & Owners’ Equity Long-Term Liabilities Bank Loans 45,000 Total Liabilities Owners’ Equity (Net Worth) $7,000 Total Liabilities and Owners’ Equity 52,000 Startup Cost and Financing FastCart
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FASTCART BUSINESS PLAN 16 The total expected expenditure for the first year $3,060,400 hence the expectation that the total funding for the first two years will be double the amount in order to be able to guarantee consumers the delivery of their products irrespective of market fluctuations. On the hand, financing the daily activities will require a minimal amount where the use of the equation total assets = total liabilities used to balance cash and assets against expenses and income. According to this case discussion, FastCart aims to balance between the cost of liabilities and total assets which will range between $52,000 and $85,000 for the first two years.
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