Individual Business Plan for Sundried Sports Company

This business plan proposes the idea of Sundried Sports, a sustainable clothing company, and includes fixed and variable costs, profit budget, cash flow statement, break even point, and key performance indicators.

Individual Business
Plan
Contents

INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Summary of Business Venture....................................................................................................3
Fixed and Variable costs to be incurred for the business............................................................5
Profit Budget for the first year of Operation...............................................................................5
Budgeted Cash Flow Statement...................................................................................................6
Calculation of Break Even Point for the company......................................................................7
Key Performance Indicators........................................................................................................7
Recommendations for the company............................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The business plan is defined as the ideas, methods and procedures followed by the management
or an organization, who wish to start a company and provide desirable products or services to the
consumers. The plan need to be precise and compatible with the management’s goals and
objectives, so as to provide top notch commodities to the public, while being in line with the
rules and regulations led down by the government and other authorities. Furthermore, the
procedures should keep in mind that the internal proceedings are beneficial to both the outsiders
as well as the employees (Jehanzeb, 2019. For understanding how a business plan works, the
following report lays down the benefits of a productive business plan and the steps followed for
the same. The business plan is proposed for Sundried Sports, a clothing company, specialising in
the manufacturing and production of sportswear, from United Kingdom. The plan consists of the
summary of business idea and the sources of initial funding, along with the fixed and variable
costs incurred and budgeted profit forecast for the upcoming year. The cash flow statements,
break-even point, margin of safety are also calculated, together with the Key Performance
Indicators and relevant recommendations which the company will require, so as to know what
their strong and weak points are.
MAIN BODY
Summary of Business Venture
The business plan is defined for the Sundried Sports Company, whose mission and vision is to
create sustainable clothing from the various resources available through recycling and reusing
the fabrics already existing. In this manner, they will be able to reduce the problems faced by the
environment due to the climate crises and furthermore, create a positive impact on the society, so
as to influence them to correctly deploy available resources and not indulge in over
consumptions (Safont Centelles, 2018). The company tends to implement and execute various
methods to create tops, bottoms, shirts and accessories to provide consumers with the top quality
products which establish them as a unicorn company and create scope for them in the share
market as well the clothing industry. The main aim of the company is to provide sustainable
clothing at a reasonable price, due to the fact that all of the clothing items manufactured and
produced from following the sustainable and conscious business practices are expensive, whilst
requiring specifically designed machinery to create the required products. The company has also

decided to raise their investments through the following methods for supporting their financial
needs, be it long or short term:
 Owner’s Equity – The management’s first and foremost task is to implement the various
funds, which they personally own, into the business, so as to avoid irrelevant interests
and charges (Navarro Manzanares, 2018). To do so, the company has already invested
$20000 which are contributions from all the individuals to wish to start the company or
those who will be charged with the responsibility of managing the major decisions of the
company.
 Angel Investors - The individuals who are involved in provision of investments for the
entities or potential start-ups and are in any kind of relationship with such individual,
who requires investments are referred to as the Angel Investors. The company proposes
to invest $14800 from their close relatives and other individuals whom they personally
know, by presenting their idea, mission and vision to them in an effective and efficient
manner, along with provision of relevant information about the internal proceedings of
the company.
 Long-term Borrowings – The management has to raise investments through this
method, when they are not capable of doing so, for the amount they require in the
business. The long term borrowings are simply referred to as the amount of money raised
by the organization, through outsider’s funds and investments (Almeida and Santos,
2018). The company has yet to adopt this method, however requires to do so for better
execution of activities.
There are various risks which could be faced by the management of the newly proposed
company due to the heavily packed clothing market, where competition is cut throat and the
demand and supply is determined by the public. Following are the various problems which the
company can face:
 Competition – The company may face problems in the clothing market due to its nature
and size, as the industry is already packed with the same kind of products or clothing
items, henceforth for the company to establish its unique selling proportion, it needs to
implement critically analysed methods and procedures (Olivas, 2021202).
 Lack of Uniqueness – The management needs to create products which are in line with
the current market requirements, however, by doing so, it may produce and sell products,

which are already existing in the market and henceforth will be incapable of garnering the
attention of the public (Isaković-Kaplan and et.al., 2021).
 The clothing industry is already growing at an immense pace and requires proper
utilization of resources along with innovative ideas to be executed, if the company in case
needs to incur consistent profits.
Fixed and Variable costs to be incurred for the business
The company is required to incur various fixed and variable costs which will benefit them in
execution of internal and external activities with ease and without wastage of resources, due to
the fact that the management has decided to pre-plan all of the necessary costs which will arise in
the future. A break up of the same costs are discussed and analysed below:
 Fixed Costs - Every company has to incur costs which remain unchanged and are not
affected by the day to day workings of the company. These costs are often recognized as
fixed costs and for the company in case, the costs are defined as amounts incurred for the
salary of staff, rent costs for the location company proposes to start their business,
furthermore the management needs to appoint experienced and trained individuals, who
will help the company develop create seamless procedures (Widyastuti and Kristiawati,
2019)
 Variable Costs – The multiple costs which are incurred in the course of furtherance of
business and change or experience deviations due to fluctuations experienced in daily
operations of the business, are referred to as the Variable costs. The variable costs
incurred for the business are characterised as the raw material costs, direct labour costs or
wages, delivery costs, packaging supplies and credit card fees.
Profit Budget for the first year of Operation
The budget statement for any year is defined as the forecasted amount for a specific set of
activities and therefore, is critically analysed for a specific year. In this manner, the management
is capable of understanding the relevant changes to be made, for the upcoming year and
henceforth can avoid mistakes or over usage of valuable resources.
PARTICULARS AMOUNT IN $ (per annum)
1. Sales (10000 units sold @ $22) 220000
2. Fixed Costs:

Rent 12300
Internet 5000
Payroll Costs 40000
Website Hosting 3400
Insurance 7000
Government and Bank fees 2500
Cell phone plan for employees 5400
Accounting Services 10800
Legal Services 12200
Total Fixed Costs 98600
3. Variable Costs:
Sales commissions 20000
Contractor wages 5000
Electricity bill 12500
Raw materials 3400
Travel and events 4000
Digital advertising costs 4600
Total Variable Costs 49500
Total Costs 148100
Net Profit (Sales – Total Costs) 76900
Budgeted Cash Flow Statement
The cash flow statement for a specific year is defined as the estimated budget made, to define the
various expenses and incomes made in cash and henceforth, requires adjustments in the financial
statements (Шенцова and Баранчеев, 2020). The Cash Flow Statement for the company is
characterised by multiple activities, which are made in cash and hold significant importance for
processing the transaction made by the company in course of furtherance of business.
PARTICULARS AMOUNT IN $

Cash Flow from Operations:
Net Income 60000
Additions in cash:
Depreciation 21000
Increase in Accounts Receivable (20000)
Increase in the Accounts Payable 10000
Increase in Inventory (32000)
Net Cash flow from Operations 39000
Cash Flow from Investing:
Purchase from Equipment (5000)
Cash Flow from Financing:
Notes Payable 7500
Net budgeted cash flow for the year 41500
Calculation of Break Even Point for the company
The break-even point or the point where the company achieves an equilibrium position, by not
incurring either profit or loss, after adjustments of all the required losses and incomes. For Axes
Sports Wear, the Break Even Point is calculated below:
Break Even Point = Fixed Costs/ Contribution per unit
B.E.P (in units) = [98600/ ((225000-49500)/10000)] = 5619 units
B.E.P (in amount) = 5619 * 22 = $123618
And the margin of safety sales, has also been calculated for the company to understand the
difference arising between the safety sales or break even sales and actual sales of the company
(Chimaliro, 2020). This difference is referred to as the margin of safety sales, which helps
managers utilize the margin calculated for safety, to know how much sales can be reduced, until
the company incurs losses. For the company in case, the Margin of Safety = 220000 – 123618 =
$96382
Key Performance Indicators
The main or most critical indicators in a business, which help identify the progress which a
business is making, while fulfilling its short and long term requirements are identified as:

 Evidences provided for the progress which has been made by the company and such has
to be legitimate and true to the best knowledge of the management.
 Measurement of such achievements and objectives, so as to provide a quantitative value
for the same, and implement it for future purposes.
 Offering relevant comparison between the goals achieved and the expected result
proposed by the company.
Recommendations for the company
By the above analysis presented through examination of the advantages and disadvantages of the
clothing industry and its pathway, the company can be able to recognize the merits along with
loop holes present in the business plan, which have been proposed above. The first and foremost,
aspect which the company needs to concentrate on is its sustainability concept, as it can be
identified as a unique merit for the company. Furthermore, it should be able to train the workers,
in making adequate and optimal usage of the resources available, due to the fact that they will be
creating conscious products (Climent Gonzalez, 2018).
CONCLUSION
From the above it is concluded that without an effective business plan the new organisations
cannot be able to survive in the competitive market for the long period of time. In this it can be
observed that there is not any business organisation in the market which did not face the risk
factor. Risk factors are always present in the business. The effective business plan helps the
entrepreneurs in minimising the risk and uncertainties. The above report also involves the
information regarding to the cost which are variable and fixed (Hartung, 2018). This is
considered most important part of the report. because by the help ascertaining the costs the
organisations can easily decide their price of the product and can earn maximum profit out of it.
Further in this report the estimated financials of the new organisation are also included. By the
help of these financial information the organisation can measure their performance and take the
right decision for the growth the business. By the help of evaluation of the performance, the
organisation can achieve their upcoming targets and take the necessary precaution so that it
cannot be happen in the future. These estimated financial statements, helps the business

organisation in motivating the employees to attain the target so they can also grow themselves
individually. The Key performance indicators helps the newly establish businesses in improving
and furnishing their business operations effectively. So at last it can be stated that the business
plan is kind of document which show the path to businesses so that they can get the success.

REFERENCES
Books and Journal
Almeida, F. and Santos, J.D., 2018. 4 Financial Plan & Viability Analysis.
Chimaliro, T.C., 2020. Digital Malawi Financial Statements.
Climent Gonzalez, C., 2018. Bollo International Fruits: analysis of its financial statements.
Hartung, S.P., 2018. Signed Financial Statements TvAIP 2017.
Isaković-Kaplan, Š. and et.al., 2021. Forensic Review of Financial Statements of Legal Entity
Tuš-Trade. Journal of Forensic Accounting Profession. 1(2), pp.64-79.
Jehanzeb, S., 2019. Feasibility study & business plan for a new online pharmacy in Pakistan.
Kusmiati, E. and Marlina, S., 2021. The quality of financial statements in the public sector.
In Synergizing Management, Technology and Innovation in Generating Sustainable and
Competitive Business Growth. (pp. 187-191). Routledge.
Navarro Manzanares, L., 2018. Business plan SITEDI SL.
Olivas, A., 2021. Creating a Marketing Plan for a Local Small Business.
Safont Centelles, A., 2018. Business plan of" Moli d'Oli Cap en Roure".
Widyastuti, R.D. and Kristiawati, E., 2019, October. Factors Affecting the Timeliness of
Compiling Cooperative Financial Statements. In 6th International Conference on
Community Development (ICCD 2019). (pp. 439-442). Atlantis Press.
Шенцова, Е.Н. and Баранчеев, М.О., 2020. Consolidation of the Financial Statements of JSC
Russian Railways: Theoretical Basis. In Непрерывное профессиональное
образование: теория и практика (pp. 353-358).