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The task of writing a finance plan for a business idea to raise at least £100 for charity has been assigned to me. The particular business idea that I shall be assessing is that of setting up and running a sweet stall.

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Introduction

Robin Dru Unit 3 Portfolio- The Financial Plan Introduction The task of writing a finance plan for a business idea to raise at least �100 for charity has been assigned to me. The particular business idea that I shall be assessing is that of setting up and running a sweet stall. The purpose of this finance plan is to evaluate and argue the case for the business idea, taking into account; costs, source of funds, recommended price of product, etc. The profit will be acquired by selling bags of sweets, in school, at lunch times and break times to the students of Sir William Borlase's Grammar School. Methodology To help determine whether or not the proposed idea of a sweet stall was feasible, a questionnaire was drawn up. The questions asked were selected so that they would benefit both the financial plan and marketing plan. To gather information from a range of year groups, 25 questionnaires were handed to each year group from the following: 7, 8, 9 and 10. The questionnaires were given out via the morning register, and collected back from Matron at break time. We thought that having a sample of 100 pupils, spread evenly across the years would be sufficient data to analyse and calculate projected revenue. At first, a questionnaire was drafted with only questions relevant to the finance section of the plan. ...read more.

Middle

645 visits per day Price and Revenue Having estimated the number of visits that I would get, both in one day and in the entire week, I can now determine a suitable value for the price of the sweets. The variable and fixed costs of the project must first be worked out before I can argue a price for the product. The cost of the sweets In the local shop, they sell 1000 sweets for �6.00. If one bag contains 25 sweets, and there are 645 bags to be sold, then: = 645 x 25 = 16,125 sweets per day To determine the price of the sweets, we must first discover how many times �6.00 has to be multiplied by. = 16,125 � 1000 = 16.125 = 16.125 x �6.00 = �96.75 The bags Obviously, we cannot merely give the sweets away without packaging them. It is for this reason that we decided to put them in paper bags. These have a cost of 1p each; therefore calculating the cost was simple: Total cost of bags = Cost of one bag x no. of bags required per day =�0.01 x 645 = �6.45 The rent The cost of renting the premises had to be calculated as a fixed cost. The cost was in half-hour slots, �5.00 for 30 minutes. That meant one slot for break-time and two for lunch-time. ...read more.

Conclusion

Cash Flow Chart Day 1 Day 2 Day 3 Day 4 Day 5 Sales 161.25 161.25 161.25 161.25 161.25 Loan received 100.00 0.00 0.00 0.00 0.00 Retained Profit 0.00 123.05 146.10 169.15 192.20 Total Income 261.25 284.30 307.35 330.40 353.45 Sweets 96.75 96.75 96.75 96.75 96.75 Bags 6.45 6.45 6.45 6.45 6.45 Rent 15.00 15.00 15.00 15.00 15.00 Loan Payment 20.00 20.00 20.00 20.00 20.00 Total Costs 138.20 138.20 138.20 138.20 138.20 Balance 123.05 146.10 169.15 192.20 215.25 From this table, you are able to see that from the loan + retained profit; we are able to buy all of the products at the beginning of the day, instead of relying on profit at the end of the day. Conclusion Contrary to my original beliefs that this business idea would not work, it seems that the questionnaire revealed some interesting figures. With clever 'bargain' hunting for the best price for sweets and paper bags, coupled with a tax-free loan and you are left with an intelligent business idea, capable of raising more than enough money to cover all the costs and raise �100.00 for charity. If allowed to go ahead with this plan, I propose to raise approximately �215.25. Obviously, this figure could be far less or far more, as a result of poor reception and lack of advertising leading up to the crucial first day, but, having analysed the findings from the questionnaire and by introducing the product at a reasonable price, I am left with the conclusion that we will raise �215.25 for charity. ...read more.

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