Entrepreneurship Business Plan for Mate Consultants - Mate for Life

This business plan is for Mate Consultants, a company that provides expertise in proactive oriented and market opportunity seeking company that is required to develop and enter in the distribution of the new product as well as new market segments in new market. The plan includes mission goals and objectives, background information, market opportunities, value proposition, marketing plan, market segmentation, and financial plan.

Running head: ENTREPRENEURSHIP BUSINESS PLAN
Entrepreneurship Business Plan
Name of the Student
Name of the University
Authors Note
Course ID

1ENTREPRENEURSHIP BUSINESS PLAN
IDEA TITLE
Mate Consultants – Mate for Life

2ENTREPRENEURSHIP BUSINESS PLAN
Executive Summary:
The business plan is positioned to create the online sales for Myer in the rapidly growing
industry. The service of Mate Consultants would be positioned to tailor the needs of the
clients in order to enable them to undertake the correct decision of making the sales and
leading to growth of their sales revenue. The Mate Consultants would provide the service that
would enable the company to stay ahead of the other competing firms. Mate Consultants
would offer expertise that would be marketing oriented in creating opportunities for the
company for entering the new market as well as setting up the new branches that would
increase their customer base. The marketing strategy for Mate Consultants would mainly to
make sure that the customer needs and wants are fulfilled and providing the correct
information for right target customer. Mate Consultants intends to adopt the market
penetration strategy through reduced prices and differentiation in products by taking into the
consideration the picture and every aspects of the customer behaviour.

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Table of Contents
Mission Goals and Objectives:...................................................................................................5
General Description of Business:...........................................................................................5
Mission Statement:.................................................................................................................6
Goals and objectives:.............................................................................................................6
Background Information:...........................................................................................................7
Background Industry Information:.........................................................................................7
Analysis of Possible Market Opportunities:..........................................................................7
Value Proposition:......................................................................................................................8
Marketing Plan.........................................................................................................................10
Marketing and Channel Strategy:.............................................................................................10
Market Segmentations:.............................................................................................................11
Target Market Segmentation Strategy:....................................................................................12
Market Needs:..........................................................................................................................12
Service business Analysis:.......................................................................................................13
Competitive strategy and Positioning:.....................................................................................13
Positioning Statement:.........................................................................................................14
Promotional strategies..............................................................................................................14
Public Relations:..................................................................................................................14
Advertisement......................................................................................................................15
Strategy Implementation:.........................................................................................................15

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PESTLE Analysis:...................................................................................................................16
SWOT Analysis:......................................................................................................................17
VRIO Analysis:........................................................................................................................19
Financial Plan:..........................................................................................................................20
Start Up Costs:.....................................................................................................................20
Sales Forecast:......................................................................................................................21
Cash Flow Forecast:.............................................................................................................21
Profit and Loss forecast:.......................................................................................................22
Breakeven Analysis:.............................................................................................................23
Balance Sheet:..........................................................................................................................24
Financial Assumptions:............................................................................................................25
References:...............................................................................................................................26

5ENTREPRENEURSHIP BUSINESS PLAN
Mission Goals and Objectives:
General Description of Business:
Mate Consultants is a comparatively new company that would be providing higher
level of expertise in the local development of business for Myer, market identification and
development, development of channel, strategies of distribution and marketing strategies for
Myer.
Melbourne has a highly competitive business environment and provides the ease of
doing business that supports profitability as well as taxability. There are world’s top
performing companies situated in Melbourne (Scarborough, 2016). Melbourne provides a
stable taxable environment for businesses and allows them to expand through government
funding. Mate Consultations would offer Myer with the central source of information.
Mate Consultations provides expertise in proactive oriented and market opportunity
seeking company that is required to develop and enter in the distribution of the new product
as well as new market segments in new market. Mate Consultations intends to offer its
customers with number of necessary services for the business community and to the public as
well. These can be summed up under two main divisions namely the business and training
services (Schaper et al., 2014). The business services include market research, preparing
research report, project based consultation, business and marketing plans for MYER. Mate
Consultations would be maintaining the membership files for specialized advisors in the
neighbouring areas by listing the chain of retail services and expertise offered. From the
perspective of consultant’s, the need for network and communication is clearly evident.
Mate Consultations is in the stage of development, however once the company is
stable, there is a wide scope for expansion. The services of networking might be offered to
the consultants that are outside Melbourne and would expand into the surrounding regions

6ENTREPRENEURSHIP BUSINESS PLAN
which would demonstrates the entrepreneurship of Melbourne city (Burns & Dewhurst,
2016). Upon standardizing the system of contact and follow-up Mate Consultations may
expand to all regions with the operations left in the hands of executive directors.
Mission Statement:
Mate Consultations is the full service consulting company that would specialize itself
in facilitating the relationships between the small businesses that seeks professional, quality
services and professional consultants that are seeking new clients (McKenzie, 2015). Mate
Consultations aims to offer personalized service, by exhibiting genuine concerns for all the
customers and reflect ethical behaviour advancing the business success as well as the success
of the clients.
Goals and objectives:
Mate Consultations is in the development stage. Mate Consultations has numerous
goals associated to growth, quality and survival. These goals are as follows;
a. To provide selected set of consultancy with proactive approach in seeking market
opportunity, developing new products and entering in the distribution of new products
and new market segments in the new market (Burns, 2016).
b. The goal is to suggest MYER to bring into more branches with lower price and
increasing more number of customers that would help in increasing more customer by
translating the demand to income.
c. Obtain profit within 12 months of business operations.
d. To perform the feasibility study in every regions of eighteen months in advance of
entering into the market.

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Background Information:
Background Industry Information:
Mate Consultations is in the breaking ground as the industry that has presented a
higher amount of growth and success inside the last twenty years. The business of
consultancy has developed because of the corporate downsizing, development in technology
and outsourcing of commercial purposes (Robson, 2015). The industry has experienced a
growing demand for professionals consulting services which has originated from the small
and medium businesses to outsource the independent contractors as the measure of saving
money. Through the help of outsourcing, business avoid costs related to employee benefit
and taxes which is quite attractive for the small business as they may not need the service of
profession service for full time basis (Hill, 2017). The consulting business can be a large
team of professionals or the one-person office. Size is regarded as irrelevant to the quality of
service and promotes the start-ups which further encourages the growth of consulting
business.
Analysis of Possible Market Opportunities:
As the consultancy market continues to expand there may be an in situation when the
market becomes saturated. Adelaide is regarded as the excellent place of business to perform
the consultancy business since it has good number of small to medium size firms. However,
any similar industry, given the supply of services goes past the demand the industry would
present the signs of change (Hill et al., 2014). Consultants might reduce their fees or may
look for work out of the instant areas and simultaneously forcing the less successful
consultants to move out of the business.
Presently, profit margins in the consultancy industry is relatively higher. The
operational and the start-up expenditure is less and therefore based on the fee a consultancy
business can attain higher level of profit margins (Hitt & Duane, 2017). The profit margin is

8ENTREPRENEURSHIP BUSINESS PLAN
obtained by assuming that the setting up a consultancy proves a lucrative business and this
serves up the fact that there is an ample amount of incentives for start-up which encourages
continuity of growth.
The present drive and focus placed by the government on the diversification of the
industrial base away from the mineral sector offers an opportunity to Mate Consultations in
making a valuable contribution towards attaining such goals. This would lead to application
of modern marketing research tools and transferring of knowledge (Wheelen et al., 2017). By
undertaking a detailed and inclusive research of market it is understood that there is need for
specific market research and business development firm that emphasis on research reports
custom-made to meet the needs of the clients. Even though there are business consulting
firms presently available in the market some of the firms are in existence for a very long time
period.
The industry is presently experiencing a strong growth in the unsurpassed economy.
With the relaxation of overseas exchange policies and macro-economic policies are directed
towards attaining overseas investment in the country (Meyer et al., 2017). For Mate
Consultants the business fits well in the industry of business development consultancy
because of the increased in quantity of consultants that are available in the market and the
quantity of small and medium enterprise business that chose to locate or expand in Adelaide.
Value Proposition:
Value proposition can be defined as the business or statement of marketing that is
used by the company to summarize why the customers should purchase and use the service.
The value proposition statement provides the consumers that a particular product or services
would add high value or may solve the problems than any other identical offerings will
(Rothaermel, 2015). The value proposition for Mate Consultants is stated below;

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a. Customer focus and cooperation: Mate Consultants aims to offer customers with
the integrated and holistic designs business solutions that results in optimal technical
and economic results. Mate Consultants designs is not performed in isolations. Mate
Consultants believes in maintaining a close collaboration with Myer.
b. Engineering Excellence: Mate Consultants services would be engineered in better
understanding of the multiple design discipline and believes in vitality of working
closely with all the team members on a project (Goworek et al., 2015). This enables
both the customers and the business consultant to completely understand each other’s
requirement and optimizing the business results.
c. On time delivery: Mate Consultants would employ consultants with working
experience on large scale business projects and have witnessed how fast the project
scopes and costs can rise due to the unforeseen complexity (Malhotra & Peterson,
2014). Similarly, the consultancy services would be so designed that the objectives of
business is attained.
d. Cost effectiveness: Mate Consultants believes in delivering excellent value for
money to its customers. Under the competitive nevertheless challenging industry,
Mate Consultants believes that its business consultancy expertise and customer
service provide its clients with true value for money service. The company believes
that it is willing to walk an extra mile wherever and wherever required by its clients.

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Figure 1: Figure showing Value Proposition
(Source: As created by Author)
Marketing Plan
Marketing and Channel Strategy:
One of the core elements of Mate Consultants strategy would be differentiation from
its competitors. Based on marketing strategy, Mate Consultants aims to sell its company as
the separated strategic ally and not simply its services. In terms of price the company aims at
offering reasonable and competitive prices in comparison to its competition and Mate
Consultant’s need for sustaining that. Mate Consultants would look employ the market
penetration through the lower prices and where required it would also implement premium
pricing in situation of higher quality services primarily targeted for upper level of market
(Chernev, 2018). Serving and creating long standing relationship with customers would form
vital to its future service marketing. Mate Consultants primarily aims in selling its
relationships more than the service.
Customer
focus and
cooperation
Engineering
Excellence:
On time
delivery
Cost
effectiveness

11ENTREPRENEURSHIP BUSINESS PLAN
The service marketing of Mate Consultants would place an emphasis on the benefits
of carrying out sufficient planning and appropriate use of quality information to identify the
window of opportunity. Mate Consultants aims to sell access to quality and market
knowledge. This would emerge in its advertisement, delivery and business cards (Philip et al.,
2017). For Mate Consultants the consultancy marketing would be challenging as the business
may face the problem of both being accepted and appreciated in the market as the business
development consultancy provider in the areas of new venture development, marketing and
accounting. The business not only intends to meet the client’s anticipations but to surpass
them as well.
Market Segmentations:
Mate Consultants would be placing focus on the local businesses. This would consist
of the small, medium and companies of large size that are looking for a complete service and
quality of work.
Especially in the rapidly growing market segment looks to offer Myer with business
and marketing plans to enter in the new or current markets (Weinstein & Pohlman, 2015).
Mate Consultants would be offering attractive alternative to the company that is facing the
problems of management constraints and are unable to meet the opportunities in the new
market as well as the segments of new market.
Melbourne is increasingly competitive and are turning out to be very much cautious in the
market when these small firms seek to enter and create a new marketing opportunities.
Henceforth, the most likely services that Myer are very much likely to use the service of
Mate Consultants is stated below;
a. Content Marketing that would appeal the target audience with the objective of
attractive visitors to the website

12ENTREPRENEURSHIP BUSINESS PLAN
b. Media marketing services that would make big effect on the sales figures.
c. Creation of personal relations.
d. Introduction of new product and services
Target Market Segmentation Strategy:
The marketing strategy of Mate Consultants would be based on particularly on the
making of right information that are available to the right target customer. Mate Consultants
makes sure that price of service takes into the consideration the budgets of the people and that
the customers appreciate the services (Marshall, 2014). The market strategy of Mate
Consultants would convey the sense of quality in every picture, every promotion and every
type of publication. By this time there are some segments in a way that define Mate
Consultants target market. Mate Consultants is choosing to compete in the local regions and
channel the areas that meet its strength and avoid the business weakness.
The target market strategy for Mate Consultants is demands creation of relationships
among the women and men regarding the beauty, toys, home and electrical components
(Foxall, 2014). Evidences gained from market survey suggest that there is a need for
professional firms to assist the client’s in development of comprehensive and concise
business and marketing plans.
Market Needs:
Mate Consultants aims to offer its clients with better than the general market
information. We aim to offer accurate, relevant, specific and timely information which would
enable its customers to frame better decisions. Such information would intend Mate
Consultants to be available to its customers at competitive rates (Sargeant & Jay, 2014). The
business understands that its target market requires more than just the info but the
information would enable them to make more informed decisions. The target clients of Mate

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Consultants require information which is relevant to the needs and easily understandable in
order to undertake correct decisions.
Service business Analysis:
The industry of consulting is pulverized by smaller consulting companies and
individual consultants for each of the well-known companies. These companies usually
provide service that are not in the direction of client’s satisfaction (Ingram et al., 2015). The
consulting participants ranges from major international brand and one the challenges for the
Mate Consultants is to establish itself as the real consulting firm that specializes itself in
marketing research.
The mainline service of Mate Consultants for Myer would include marketing
research, research identification undertaken with the help of advertisement, direct mailing
and referrals. Fundamentally, it would be customized to meet the needs of clients.
Competitive strategy and Positioning:
Companies develop and implement numerous strategies every day to attain or work in
in the direction of attaining the short term and long term objectives. The competitive
strategies for Mate Consultants would allow the business to successfully launch competition
successfully against the other rivals in the industry (Schaltegger et al., 2017). The competitive
strategy for Mate Consultants is stated below
Low cost product strategy: The low cost product strategy would be based on the product or
services at the lowest conceivable price. This kind of strategy provides the business with the
cost advantage relative to its customers. The cost advantage originating from the business
provides the Mate Consultants with two options namely where Myer can cut down the
competitors and thereby increase their market share (Kerzner & Kerzner, 2017). This would
enable Mate Consultants in providing Myer with the strategy that would help them to

14ENTREPRENEURSHIP BUSINESS PLAN
constantly sell their product or services at the costs that are in line with the competing firms
and receiving greater sales margin. The lower cost producer strategy would allow Myer to
function well in the industry where the customers are sensitive to change in prices. In
addition, this strategy is successful for industries where customers can easily move to another
supplier of product or service.
Differentiating strategy: The differentiating strategy is employed when the customers’
needs, wants, interest and desires are in accordance with the standardized product. In other
words, the differentiating strategy is based on the learning the necessary features and
attributes that are vital to the most the consumers and later adding those attributes in the
product (Baker, 2014). Making such additions to the product or services is important,
desirable and valuable for attracting consumer. Mate Consultants would use the
differentiating strategy to gain competitive advantage over the current set of operators that
are operating in the industry.
Positioning Statement:
Even though there are numerous professionals that help in providing valuable services
in the areas where they specialize themselves, but often lacks the imaginations of writing the
comprehensive and impact creating business plans (Rowley, 2016). The expertise of the Mate
Consultants lies in the capability of listing into the business owners and perceiving their
visions for the company over the period. Mate Consultants can envision what the Myer is
looking for in the future and then pen down the same in writing at a certain cost on which
they can meet.

15ENTREPRENEURSHIP BUSINESS PLAN
Promotional strategies
Public Relations:
Public relations and networking is regarded as the crucial for the success of the Mate
Consultants because these are the services that Mate Consultants would be offering to Myer
as its customer in boosting up their sales (Leiber et al., 2018). Mate Consultants would plan
to implement public relations and networking activities accordingly. The company would
request for written testimonial with the best customers and publish the same in the broachers
as the promotional strategies for developing public relations. Mate Consultants believes that
better public techniques are vital for the success of the Myer in boosting up their sales.
Advertisement
Mate Consultants would make a limited fund available in advertisement. As the
measure of increasing online sales for Myer it would target advertisement venues as the
worth for targeting large set of customers. Mate Consultants as the attempt to increase the
sales for Myer would publish an ad in the daily newspaper (Bull et al., 2016). The business
would advertise in the front range publications namely the “Business Report and Today’s
Business. A weekly advertisement will be made in the Journals and Magazines as the
measure of improving the sales revenue for Myer.
Strategy Implementation:
Primarily, Mate Consultants would create a focus on the local market and marketing
research. The company would primarily target the Myer online customers to increase the
sales of the company (Abdel-Basset et al., 2018). The Mate Consultants would primarily
implement the below stated strategies;
a. The company is presently building the image and awareness with the help of
constancy and uniqueness in its service provision.

16ENTREPRENEURSHIP BUSINESS PLAN
b. Mate Consultants aims to provide quality service and end product that would in turn
boost up the online retail sales of Myer and ultimately generate revenue.
c. Mate Consultants aims to also implement the relatively heavy personal selling
elements to its marketing (Hatten, 2015). Therefore, Mate Consultants aims to always
be active in the personal relationships with the Myer clients and strategic allies that
would keep abreast of the customer needs and wants.
d. Additionally, the company would implement the strategy of advertising in numerous
social media as well.
PESTLE Analysis:
The PESTLE analysis tools is used by the marketers to assess and monitor the macro-
economic factors that create effect on the Myer retail selling strategy.
Political Factors:
The political factors are about to what extent the government creates an intervention
in the economy. This generally comprises of the political stability or instability in the retail
trade marketing. It is understood that government policy of taxation might have created an
impact on the retail trade environment for the Myer and how they perform business (Read et
al., 2016). The company is required to take into the consideration the political factors by
respond to the present and future legislation by adjusting the marketing policy consequently.
Economic Factors:
The economic factors for online retail company such as Myer can be broken down
into the macro-economic and micro-economic factors. The government taxation policy and
interest rate control are the main mechanisms that can be used. Micro-economic factors is
regarding the way the customers spend their income (Hatten, 2015). This creates a large
impact on the business to consumer sale of Myer.

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Social Factors:
The social factors include the growth in population, consumer trends and age
distributions. These factors are of particular interest as they create a direct impact on how the
Myer understands the customers and what drives them to increase their sales.
Technological factors:
The technological factors that impacts the Myer marketing and management in three different
ways which is stated below;
a. Ways of producing their goods and services
b. Ways of distribution of goods and services
c. Ways of communication with their target market
Environmental Factors:
The environmental factors usually come to the forefront in the last decade
(Schaltegger et al., 2017). This includes the issues such as demands for consumer goods that
purchase the products that ethically sourced and from the sustainable source.
Legal Factors:
The legal factors for Myer includes the advertisement standards, rights of the
consumers labelling of the product and product safety. On a general note it is clear that
companies must understand things that can be traded legally or successfully.

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SWOT Analysis:
Mate Consultants believes that it is operating currently in the rapidly increasing
market. It foresees its strength as the capability of responding in time to the market by
dictating and providing custom designed market research services to its client for increasing
their sales revenue. With the help of aggressive marketing and quality management the
company intends to be the well respected leader in respect to its industry. Nevertheless, Mate
Consultants acknowledge the fact that there are certain companies that are aware of the vital
market research and contribute entirely to the business strategy. The strength, opportunity,
weakness and threats of Mate Consultants is stated below;
Weakness:
a. There is lack of deep-rooted marketplace network under the market research arena.
b. Introducing the new organizational practices and personnel that have not worked
previously together lay down the challenge for the organization.
c. Creating an internet would produce a technological challenge.
Opportunities:
a. The present growth of economy in the economy as compared to the other economies
lay down the opportunity for Mate Consultants to increase number of customers for
the overseas investors to make an investment in the market.
b. The present drive towards localization would result an increase in the number of local
customers.
c. Marketing through internet and sales is still in the beginning stage.
Threats:

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The current growth in the economy might result in increase in the number of business
consultants as well giving rise to increase in competition and confusion among the potential
clients The company may face competition from wide range of sources which is stated below;
a. New market strategies and tactics for the developed and established firms.
b. Threats from the prevailing competition
c. Available and deep-rooted government companies that are dealing directly with the
aspiring entrepreneurs both in the neighbourhood and overseas.
Strengths:
a. The strength lies in the strategic segmentation of market and application of strategies.
b. Diversified segments in the market. Ensuring that there is a lack reliance on the one
particular market.
c. The strength for Mate Consultants lies in the aggressive and focussed campaigns in
marketing.
d. The marketing plan with the clear goals and strategies.
VRIO Analysis:
Important resources and capabilities of Myer
Brand image and equity: Myer customer focus image is the main source of competition for
the brand. However, the company has of late not been able to create higher level of trust
depending upon the product and service that it sells.
Customer Base: The customer base for Myer is low and this could be viewed as the major
disadvantage for the e-commerce band.
Market presence: The market presence of Myer is also viewed as the source of major
disadvantage.

20ENTREPRENEURSHIP BUSINESS PLAN
Customer Loyalty: The lower level of customer loyalty towards the company is the possible
reason for lower sales revenue as the company has not able to retain the customers base to
maintain the sales revenue.
Product range: The company sells wide range of products and services and the number
ranges to hundreds of products for different categories of companies.
VRIO Analysis of Myer
Resource/capabilities Value Rare Inimitable Exploited Implication
Brand Equity Yes No Yes Yes Competitive advantage
Base of Customers Yes No Yes Yes Temporary disadvantage
Market Presence Yes No Yes Yes Temporary disadvantage
Customer Loyalty Yes No Yes Yes Temporary disadvantage
Product range Yes Yes No Yes Competitive advantage
As evident from the above stated VRIO analysis a suggestion can be bought forward
by stating that more number of branches can be bought set up by Myer and offering the
products at a reduced price. Increasing the number of branches would help in increasing the
customer base as with increased number of customer would contribute to the revenue as well.
Setting up the branches in other parts of the cities would help in developing the distribution
and supply channel for internet selling.
Financial Plan:
Start Up Costs:
Start-up Requirements
Start-up Expenses
Fixed Costs Particulars Amount ($)
Premises (RENT & RATES) $2,000
Salaries $50,000
Interest on loan 10% $5,000
Accountant Fees $12,500
Payroll Tax $1,750
Retainer contracts $2,500

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Sales and Marketing $3,400
Postage & Telephone $2,200
Broachers $1,300
Logo Designs $1,250
Market survey $1,750
Preliminary expenses $1,100
Capital Improvements Expense $15,250
Total Fixed Costs $1,00,000
Average Monthly Costs
Rent $167
Capital Improvements Expense $1,271
Interest on loan 10% $417
Postage & Telephone $183
Repairs and Maintenance $108
Salaries / Wages $4,167
Total Average Monthly Costs $6,313
x Number of Months: 12
Total Monthly Costs $75,750
Total Startup Expenses $1,75,750
Start-up Assets
Owner Funding
Owners Fund $1,50,000
Total Owner Funding $1,50,000
Loans
Bank Loan $50,000
Other $0
Total Loans $50,000
Total Start-up Funds $2,00,000
Assets
Equipment’s $15,000
Computers $20,000
Other Fixed Assets $5,000
Furniture’s $10,000
Total Fixed Assets $50,000
Total Start-up Assets $2,50,000
Sales Forecast:
(1) SALES FORECAST
Year 0 1 2 3
Projected Sales 1,25,000 1,37,500 1,51,250
Cost of Goods Sold 0 0 0

22ENTREPRENEURSHIP BUSINESS PLAN
Cash Flow Forecast:
(2) CASHFLOW FORECAST
Preop
Year 0 1 2 3
CASH INFLOWS
Cash from Sales 1,25,000 1,37,500 1,51,250
Directors loans 50,000 50,000 50,000 50,000
Capital Employed 1,00,000 1,50,000 1,50,000 1,75,000
Other cash inflows
TOTAL CASH INFLOW 1,50,000 3,25,000 3,37,500 3,76,250
CASH OUTFLOWS
Payments for materials 0 0 0
operating expenses ( ) 0
Business Insurance 0 2,000 2,200 2,420
Salaries 0 50,000 55,000 60,500
Accountant Fees 0 12,500 13,750 15,125
Payroll Tax 0 1,750 1,925 2,118
Occupancy Expenses 0 2,500 2,750 3,025
Sales and Marketing 3,400 3,740 4,114
Postage & Telephone 2,200 2,420 2,662
Broachers 1,300 1,430 1,573
Logo Designs 1,250 1,375 1,513
Interest on loan 10% 5,000 5,000 5,000
General and Admin Expenses 1,750 1,925 2,118
Preliminary expenses 1,100 1,210 1,331
Capital Improvement Cost 15,250 16,775 18,453
Corporation Tax 6,150 11,798 12,977
Loan repayments 5,000 10,000
TOTAL CASH OUTFLOWS 0 1,06,150 1,26,298 1,42,927
Cash flow summary
NET CASHFLOW FOR PERIOD 1,50,000 2,18,850 2,11,203 2,33,323
OPENING CASH BALANCE 0 1,50,000 3,68,850 5,80,053
CLOSING CASH BALANCE 1,50,000 3,68,850 5,80,053 8,13,375

23ENTREPRENEURSHIP BUSINESS PLAN
Profit and Loss forecast:
(4) PROFIT AND LOSS FORECAST
Preop
Year 0 1 2 3
Revenue 0 1,25,000 1,37,500 1,51,250
Cost of sales 0 0 0 0
Gross profit 0 1,25,000 1,37,500 1,51,250
Gross Margin 1,10,650 1,09,973 1,20,970
Expenses/overheads
Business Insurance 2,000 2,200 2,420
Wages and salaries 50,000 55,000 60,500
General expenses 12,500 13,750 15,125
Accountant Fees 12,500 13,750 15,125
Payroll Tax 1,750 1,925 2,118
Utilities 2,500 2,750 3,025
Sales and Marketing 3,400 3,740 4,114
Postage & Telephone 2,200 2,420 2,662
Repairs and Maintenance 1,300 1,430 1,573
Preliminary expenses 1,100 1,210 1,331
Capital Improvement Cost 15,250 16,775 18,453
Total expenses/overheads 1,04,500 98,175 1,07,993
Profit before tax 20,500 39,325 43,258
Tax @ 30% 6,150 11,798 12,977
Before tax net margin 16% 29% 29%
Profit after tax 14,350 27,528 30,280
Transfer to reserves 20,500 39,325 43,258
ROC 14% 18% 20%
Breakeven Analysis:
Revenue
Contributio
n
Fixed
Cost Profit
125000 62500 62133.5 366.5
137500 68750 62133.5 6616.5
155333.75 77666.875 62133.5
15533.3
8
186400.5 93200.25 62133.5 31066.7

24ENTREPRENEURSHIP BUSINESS PLAN
5
1 2 3 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
125000 137500 155333.75 186400.5
62500 68750 77666.875 93200.25
62133.5 62133.5 62133.5 62133.5
Break-Even
Profit
Fixed Cost
Contribution
Revenue
Axis Title
Axis Title
Figure 1: Figure illustrating Break-Even
(Source: As Created by Author)
Balance Sheet:
Balance Sheet
Assets FY-1 FY-2 FY-3
Current Assets
Cash $1,29,000 $1,43,350 $1,47,075
Accounts receivable $1,25,000 $1,37,500 $1,51,250
Total current assets $2,54,000 $2,80,850 $2,98,325
Fixed (Long-Term) Assets
Equipment’s $15,000 $16,500 $18,150
Computers $20,000 $22,000 $24,200
Other Fixed Assets $5,000 $5,500 $6,050

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Furniture’s $10,000 $11,000 $12,100
(Less accumulated depreciation) $8,000 $7,200 $6,810
Total fixed assets $42,000 $47,800 $53,690
Total Assets $2,96,000 $3,28,650 $3,52,015
Liabilities and Owner's Equity
Current Liabilities
Bank Charges Payable $5,000 $5,000 $5,000
Income taxes payable $6,150 $11,798 $12,977
Accrued salaries and wages $50,000 $55,000 $60,500
Total current liabilities $61,150 $71,798 $78,477
Long-Term Liabilities
Long-term debt $50,000 $45,000 $35,000
Less: Loan Repayment $5,000 $10,000
Total long-term liabilities $50,000 $40,000 $25,000
Owner's Equity
Owner's investment $1,50,000 $1,50,000 $1,75,000
Net Profits $14,350 $27,528 $30,280
Reserve and Surplus $20,500 $39,325 $43,258
Total owner's equity $1,84,850 $2,16,853 $2,48,538
Total Liabilities and Owner's Equity $2,96,000 $3,28,650 $3,52,015
Financial Assumptions:
The financial viability of the venture is entirely reliant on the owners. The cash
receipts from the business would be deposited on weekly basis and accounts receivable
would be maintained on monthly basis. Payroll taxes would be implemented on quarterly
basis and the expenditure that would be incurred would be maintained on daily basis. The
breakeven analysis is based on the service prices. The business has subtracted 20% of the
costs from the revenue for administrative expenses.

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