Financial Analysis and Business Model for Bath Product Startup

This document outlines a business plan for a bath product company, detailing the vision statement, capital structure, and financial projections. It includes a five-year cash flow statement, sales forecasts, and an income statement, providing insights into revenue, cost of sales, and profitability. The plan also incorporates a business canvas model, highlighting key partnerships, activities, value propositions, customer relationships, customer segments, key resources, channels, cost structure, and revenue streams. The business aims to provide quality bath products to enhance customer satisfaction. Financials are based on own investment and bank loans. Projected monthly revenue is $29,167, increasing by 10% annually. The business will sell personalized bath bombs. The financial analysis includes projected sales, cost of sales, gross profit, operating expenses, and net profit after tax. The business canvas model addresses key aspects of the business, including value proposition, customer relationships, customer segments, and revenue streams.

VISION STATEMENT
“To provide quality bath products to enhance customer satisfaction and to strengthen
business position in market.”

FINANCIALS
Capital structure of firm will comprise own investment and bank loan and collected funds will be invested for start-up of production activities
and establishing business in an effective manner. Projected monthly revenue of business will be $29167 and same will be increased by 10% on
annyal basis and cost of sales will be 40%.
Cash flow statement
Year 1 year 2 year 3 year 4 year 5
Cash in the beginning $0.00 $545,307.00 $899,607.00 $1,292,407.00 $1,727,557.00
Cash inflow
Capital invested $120,000.00 $0.00 $0.00 $0.00 $0.00
Bank loan $152,000.00 $0.00 $0.00 $0.00 $0.00
Cash sales $350,000.0 $385,000.0 $423,500.0 $465,850.0 $512,435.0
Total inflow $622,000.00 $930,307.00 $1,323,107.00 $1,758,257.00 $2,239,992.00
Cash outflow
Security deposit $3,000.00
Rent $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00
Salaries $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00
Insurance $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00
Permits and licensing for
production $5,839.00 $0.00 $0.00 $0.00 $0.00
Accounting costs $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00
Ordering and payment technology $21,231.00 $0.00 $0.00 $0.00 $0.00
Signage $15,923.00 $0.00 $0.00 $0.00 $0.00
Fliers ads and coupons $7,500.00 $7,500.00 $7,500.00 $7,500.00 $7,500.00
Public relation services $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00
Total cash outflow $76,693.00 $30,700.00 $30,700.00 $30,700.00 $30,700.00

Cash in the end $545,307.00 $899,607.00 $1,292,407.00 $1,727,557.00 $2,209,292.00
Income statement
Sales forecast
In accordance with the forecasted figures average cost of product will be $5 and it is expected the business will sell approximately 70000
products on annual basis. Sales volume will be constant throughout the year as it is toiletry item to be used on regular basis. Although sale of
bath bombs will be low in winter season in comparison to summer season. Sales is expected to be increased by 10% on an annual basis. Further;
annual and monthly projection of sales is as follows:
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
$30,000 $32,000 $30,000 $38,000 $35,000 $35,000 $30,000 $30,000 $25,000 $25,000 $20,000 $20,000
Year 1 year 2 year 3 year 4 year 5
Sales $350,000.0 $385,000.0 $423,500.0 $465,850.0 $512,435.0

Year 1 year 2 year 3 year 4 year 5
Sales $350,000.0 $385,000.0 $423,500.0 $465,850.0 $512,435.0
Cost of Sales $140,000.0 $154,000.0 $169,400.0 $186,340.0 $204,974.0
Gross profit $210,000.0 $231,000.0 $254,100.0 $279,510.0 $307,461.0
Other expenses
Rent $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00
Salaries $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00
Insurance $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00
Accounting costs $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00
Fliers ads and coupons $7,500.00 $7,500.00 $7,500.00 $7,500.00 $7,500.00
Public relation services $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00
Interest $7,500.0 $5,838.8 $4,077.5 $2,316.2 $554.9
Annual misc. expenses $3,500.0 $3,500.0 $3,500.0 $3,500.0 $3,500.0
Net profit before tax $168,300.0 $190,961.3 $215,822.5 $242,993.8 $272,706.1
Tax 30% $50,490.00 $57,288.38 $64,746.76 $72,898.14 $81,811.82
Net profit after tax $117,810.00 $133,672.88 $151,075.78 $170,095.67 $190,894.26

BUSINESS CANVAS MODEL
Key Partners
Non-profit
organization
Key Activities
Produces
personalized bath
bombs
Bath bombs come in
different colours and
shapes and when put
into the bath/water they
look extremely
appealing to the eyes
which is why young
females purchase these
products.
Value Proposition
To supply a luxury at
home spa experience
Fab-Fizz is built around
the values of self-
improvement, self-
respect and dedication
to others. With each
bath-bomb purchases
you are investing in
self-love, investing in a
girl’s education and
investing in the world.
Customer
Relationships
Looking at the type of
relationship our
business is going to
have with our
customers is a
combination of self-
service and co-
creation. A
relationship based on
self-service is one that
translates from the
indirect interaction
between the company
and the clients. Here,
our business provides
the tools such as our
website which is
needed in order for
the customers to serve
themselves easily and
effectively.
Customer Segments
Female households
The first target market
is young female adults
between the ages of 16
to 25, and the second is
females between the
ages of 26 and older.
Key Resources
Own investment and
bank loan.
Capital invested
$120,000.00
Channels
Instagram, Facebook
or any other social
media network
Our strategy is to create

Bank loan $152,000.00 an online platform
where people can go
onto a website, and be
able to see a list of
colours, shapes and
scents so that that
customers can “build
their own bath bomb”.
Cost Structure
Direct and indirect costs
Cost of Sales (40% of sales)
Other expenses
Rent
Salaries
Insurance
Accounting costs
Fliers ads and coupons
Public relation services
Interest
Annual misc expenes
Revenue Streams
Base price $10 – one colour, one scent, and sphere
Colour Price
Any 2 colours + 1.00
Any 3 colours + 2.00
Any 4 colours + 3.00
Any 5 colours + 4.00