Business Idea Presentation: Organic Cosmetics & Financial Analysis

This presentation outlines a business idea for an organic cosmetics company. It begins with an introduction and product/service outline, emphasizing personalized product development to address customer skin and hair concerns. Statistical data, including a detailed financial projection, is provided to support the business idea, covering raw material costs, production expenses, and other operational costs. The presentation includes a profit and loss account, cash flow statement, and an analysis of why the idea is investable, highlighting a positive cash surplus in the first year. A summary of the business plan focuses on organic cosmetic products catering to health-conscious consumers. The return on investment (ROI) is calculated at 140%, demonstrating the potential for high returns. The presentation concludes by summarizing the importance of creative product development in meeting customer demands and lists relevant references.

Assessment

Table of Content
 Introduction
 Outline of the product or service idea
 Statistical data to back up the idea:
 Profit and loss account
 Why idea is investable
 Return on investment
 What the investment would be used for
 Conclusion
 References

Introduction
 Business is significant for providing different products and
services which are essential for meeting with the needs and
wants. This presentation is based new organisation which is
offering creative products or services in order to meet with the
requirements of customers.

Outline of the product or service idea
 Products and services can be describe as the offering of organisation that
is significant for meeting with the requirements of customers. Respective
organisation have initial investment of up to £ 50,000 that is effective for
creating new or innovate products which successful meet with the
requirements of customers.

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 It is providing services of developing personalized products and
services which is effective for dealing with customer issues and
problems. Products and services of respective company is
especially developed with the motive of meeting customers
requirements as well as skin or hair issues in most significant
manner.

Statistical data to back up the idea:
 In order to justify above mentioned business idea, below a detailed
financial projection is done in such manner:
Particulars Amount (£)
Raw material purchasing cost 10000
Production cost 8000
Labour charges 2000
Administration expenses 15000
Advertising cost 10000
Other expenses 5000
50000

Profit and loss account
 Profit and Loss Account
Particulars Amount (£)
Revenues (Credit+cash sales) 120000
Less: expenses 50000
Manufacturing cost (10000+8000+2000) 20000
Administration cost 15000
Advertising cost 10000
Other expenses 5000
Net profit 70000

Cash flow statement for year one
Particulars Amount
Cash receipts:
Cash sales 80000
Loan 10000
Total cash receipts 90000
Cash expenses
Raw material purchasing cost 10000
Production cost 8000
Labour charges 2000
Administration expenses 15000
Advertising cost 10000
Other expenses 5000
Total cash expenses 50000
Net cash flow (90000-50000) 40000

Why idea is investable
 The above mentioned business idea is investable because it seems
viable from perspective of financial analysis. The above data
shows that there will be surplus of cash of 40000 pounds in year
one which is a positive aspect.
Business plan summary- The business plan is based on production
of organic cosmetic products which can satisfy need of those
customers who are too aware for their skin and health.

Return on investment
 Return on investment: Net profit/cost of investment*100
 = 70000/50000*100
 = 140%
The above computed ROI shows that there is higher return during
initial year of starting of product which is of 140%. It is an indication that in
upcoming time, there will more return through such business idea.

What the investment would be used for
 There are different ways in which investment could be used so that correct
and accurate product is developed or provided to customers. Through the
interpretation of the cost sheet it has been determined that Raw material
purchasing cost is 10000. In this Production cost is 8000 and labour chargers
includes 2000.
 Administration expenses consist of 15000 and Advertising cost includes
10000. There are other cost that is also includes in development of products is
5000.

Conclusion
 From the above presentation it has been analysed that business
products and services play crucial and significant role in order to
meet with the demand of customer. It is very important that
organisation is developing products and service with creative and
innovative ideas so that requirements of customers can be
successfully meet.