Analyzing Eden Inc.'s Financial Performance and Strategy for Growth

Eden Inc., as part of the Eden Group, is strategically positioned in India with a focus on becoming the leading company in its segment. The business has set ambitious goals for revenue growth, targeting Rs 1,000 crore by 2025 from an existing base of Rs 40 crores. With a strong financial foundation backed by paid-up capital totaling Rs 50 crores and an additional authorized share capital of Rs 1000 crores, Eden Inc. is well-equipped to expand its operations. The company has already shown promising growth with turnover increasing by 60% over the past four years and profitability rising from 10% to 20%. This growth trajectory aligns with their strategic objectives and reflects effective financial management and market positioning. To further support these ambitions, Eden Inc. is implementing a comprehensive business plan that emphasizes both short-term gains and long-term sustainability. The analysis of its financial statements reveals a robust balance sheet and consistent income generation which are critical to achieving the set targets. Additionally, Eden's strategic initiatives focus on innovation, customer engagement, and operational efficiency. This detailed summary underscores Eden Inc.'s potential for continued success through strategic planning and sound financial practices.

Running head: BUSINESS PLAN
Design business plan for Eden Ventures
Name of the Student:
Name of the University:

1BUSINESS PLAN
Executive Summary
The business plan is based on Eden Ventures who is investing into technology for providing of
training and education to the rural small business owners. The organization is invested into
telecommunication software, digital media, internet, mobile sectors, enterprise software, social
media and SaaS. This particular technology business plan is based on helping to formalize the
business strategies. The company is developed the business by helping the small business owners
to use of innovative technology for raising the higher market share.

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Table of Contents
Introduction......................................................................................................................................4
1. Business concept..........................................................................................................................4
1.1 Value Proposition..................................................................................................................4
1.2 Business Offer.......................................................................................................................5
1.3 Ownership Structure..............................................................................................................6
1.4 Mission, Aims and Objectives...............................................................................................7
1.5 Legal Formalities...................................................................................................................8
2. Marketing Strategy......................................................................................................................8
2.1 Customer segment.................................................................................................................8
2.2 Customer relationship............................................................................................................8
2.3 Distribution channels.............................................................................................................9
2.4 Marketing analysis using 7Ps................................................................................................9
3. Operational plan.........................................................................................................................10
3.1 Key activities.......................................................................................................................10
3.2 Key resources.......................................................................................................................11
3.3 The people plan....................................................................................................................11
4. Finance plan...............................................................................................................................12

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5. Timeline.....................................................................................................................................12
6. Research.....................................................................................................................................13
6.1 Macro environment analysis – PESTEL..............................................................................13
6.2 Company’s Industry analysis - Porter’s Five Forces Analysis............................................14
6.3 Internal Company Analysis and External collaborations....................................................15
6.4 SWOT Analysis...................................................................................................................16
6.5 Financial Status Analysis.....................................................................................................18
Bibliography..................................................................................................................................35

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Introduction
Eden Ventures is an organization which is invested into technology companies within the
telecommunication software, digital media, internet, mobile sectors, enterprise software, social
media and SaaS. The company has it’s headquarter in London, United Kingdom and was
founded in the year 2002. The organization founded that they need huge amount of underserved
rural small businesses which are required of technological consulting as well as experience. The
company brings investment into the technology in rural small business owners. The purpose of
the investment business plan is to help into formalizing of business strategies. The company
decides to develop their business by helping rural small business owners to use of technology.
1. Business concept
1.1 Value Proposition
By use of Ansoff’s Matrix, the business is categorized to provide of new services into the
new market, as the services are satisfied with new set of client’s requirements. The business is
able to bring performance value into the business as it improves the way businesses are operated.
The technology services are customizable to the requirements of small business owners as they
are not have set services. The target market of the organization is that they want to provide
training and provide education to the small business owners located in rural Europe. The clients
are chosen based on lack of knowledge on technology, as well as inability to reach higher
productivity throughout technological innovation. Mainly, the organization gains business value
by investing into internet, enterprise software and digital media. The organization is focused on

5BUSINESS PLAN
developing their business process. The organization is developing efficient methods to procure
the services and products.
According to Ansoff Matrix, Eden Ventures can determine the product as well as market
strategy. The four sections of this matrix are:
Market penetration: It is about selling of existing products to the existing markets. In
order to grow as well as penetrate the customer based in the existing market, the organization
cuts their price, improve the business process, and invest into technology an increase into
existing production. Eden Ventures spend into technology to penetrate the markets.
Product development: It is about development of new services and processes into
existing markets. The organization tries to provide training and education to the small business
owners to use of technology. The modifications into existing business processes provide an
increase value to the customers for develop of new services.
Market development: It develops of existing products in new markets. Eden Ventures
provide technology investment services to the European countries only. The organization should
require developing their technological services into other countries also so as to gain a new
market value in other countries.
Diversification: It is about enter of new markets with development of new products. The
organization should enter into new markets with development of their business process. The
organization starts to train the small business owners about new technological usage.

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1.2 Business Offer
Eden Ventures invested into higher growth European technology companies. The
company provides of technological services such as internet, big data analytics, digital media,
and telecommunication software. Eden Ventures offers some of the technological services on
sourcing of procurement. It determines the technological suppliers and manages sourcing and
recommends upgrades of business process.
1.3 Ownership Structure
The competitive advantage of Eden Ventures is to run small rural business and make it
successful in the European countries. The organization consists of some owners those have deep
knowledge of the internet infrastructure. The deep knowledge of the members helps to shape
way people are working. The share of the company is to be divided into five partners who help to
take and manage right decisions for the company. Each of the organizational partners should
bring £10,000 to invest into development of business process. They invest to provide training on
technology to the rural business owners.
EdenVenturesProjectManagerBusinessPlannerOperationsManagerMarketingManagerMarketConsultant

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Figure 1: Ownership structure
(Source: Created by author)
1.4 Mission, Aims and Objectives
Mission: Eden Ventures was created to invest in technology and help the rural business
owners to use of technology. The evidence is based on the fact that the rural small business
owners have no such resources and connections to use the technology. The mission of the
organization is to provide training and educating the small business owners to utilize the
resources. The organization should fulfill their mission when the clients are satisfied and
achieved growth rate at 20%.
Aims: The aim of the company is to provide high value to the small business and
business development by investing in technology. The technological services provided by the
organization are internet, enterprise software and digital media. The organization provides
training to the small business owners to use of those technological services.
Objectives: Following are the business objectives of Eden Ventures such as:
 To grow the business as per requirements of the clients and customers
 To provide training and education on innovative technology to the small business
owners
 To keep revenue cost on the services below 20%
 To increase net revenue by 350%

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1.5 Legal Formalities
Legal compliances related to the management of the property that the company is
standing on. The application of the law term is in the market for the proper management of the
working process in the company. The company should keep in mind that any drawback in the
form of legal application can cause the drop of their reputation in the market and thus can cause
them to lose a lot of money for the company. Apart from this there are need to be a looking after
the deals that needs to be developed between the company as well as their clients.
2. Marketing Strategy
2.1 Customer segment
The customer segment of Eden Ventures is the business owners of European country. The
customers are selected based on their lack of knowledge to use of technology for their business.
As the organization is investing into technology, therefore lack of technical knowledge of the
small business owners reduces the level of productivity throughout technological innovation of
the business processes as well as methods. The non-primary potential clients are small
businesses. It is an ongoing business which starts to make growth into their technology.
Therefore, the customer segment is small business owners have lack of knowledge on how to use
the technology for benefit of the investment business.
2.2 Customer relationship
Eden Ventures have close relationship with the customer to create loyal value. A better
customer relationship is gained by providing personalized as well as customized approaches to
the customers. Customer Relationship Management (CRM) system is used to track the details of

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customers and how much customers are attracted towards their business. In order to maintain
better customer relationships, Eden Ventures meet with the customer expectations and on time
delivery to the customer’s products. It is done throughout social media and provides good
approaches to the customers. Integration of the technology will enhance the experiences of
customer and it will become a cost effective process.
2.3 Distribution channels
The new technological services are distributed to the small business owners throughout
online, advertising into the company’s website and use of social media channels such as
Facebook, Twitter. It helps Eden Ventures to aware the customer and promote their services
among the users.
2.4 Marketing analysis using 7Ps
Following are the components of 7Ps to analyze the market of Eden Ventures such as:
Product: Eden Ventures provides training and education to the small business owners
located in rural Europe on how to use of technology for the business process. The organization
gains business value by investing into internet, enterprise software and digital media
Price: The price model for innovation of business processes are based on project based
pricing by estimation of how mach of both time as well as resources are required to conduct the
plan. The organization provides training services to the customers to educate them on how to use
technology; therefore the price of the training program should be £20000.
Place: The places on where the training program is conducted are small rural areas of
Europe.

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Promotion: Promotion is done by use of social media channels such as Facebook,
Twitter. Social media networks promote the services among the customers by conducting any
event planning with the clients.
People: People involved into the business plan are small business owners working into
rural countries. There are five partners those are involved into the plan are project manager,
marketing manager,, business planner, operations manager and marketing consultant.
Processes: The processes which are taken to deliver the services to the customers are
client meeting, start the project work, exchange of emails with the clients and final meeting.
Finally, final project report is written and submitted.
Physical Evidence: The client documentation is the deliverable of the business plan.
3. Operational plan
3.1 Key activities
1. The key activities related to the working process of the company are to hire the better
skilled workers who will be able to work according to the daily work pressure that
will be assured to them.
2. The company needs to get access to more companies where they would be able to
invest and make a mark in the market.
3. They should also follow a process in which the company would be able to keep their
grip on the acquired company for a longer time in the market.

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3.2 Key resources
1. The resources to use for the operation of the company would be the selective majors
of the technological background who would be able to assess the betterment of the
technology that they would be investing in.
2. They should also invest in acquiring of investors for their company.
3. The use of proper connectivity for the company would help in the processing of data.
4. The use of proper technology in the market would be able to help the company for the
process of assessing the strength of the company they would be investing in.
5. The skill level of the company employees are of the top grade for their proper
working in the market.
3.3 The people plan
The key people in the plan are the investors and the companies in whom the company
would be investing their money. They should be kept in perfect shape to minimize the risk of
anything related to the drop of the working deal between them. The company should also be able
to make proper deals with the new company they would be investing in and make their relations
better in the future for the proper holding of the company.

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4. Finance plan
Funding: Eden Ventures should be managed by the five partners those will bring
20,000£ each for the capital into the company.
Forecast financial status: The selling price is forecasted as £250 and the break even
sales are 12,483. The breakeven month is taken as June with margin of safety is to be estimated
as £ 12,517.
5. Timeline
Activities of the business plan Total Duration Start Date
Start to develop the business process of
Eden Ventures
2 days 17th January, 2018
Start the business plan 3 days 20th January, 2018
Meeting with the client 1 days 23rd January, 2018
Investigate the issues of client 2 days 26th January, 2018
Start the technical work 3 days 29th January, 2018
Start the training program 4 days 1st February, 2018
Update CRM to review the customer 2 days 3rd February, 2018
Use of social media channels 5 days 9th February, 2018
Hosting of the client event 2 days 12th February, 2018
Update of the CRM system 3 days 15th February, 2018
Final business plan report 3 days 18th February, 2018

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6. Research
6.1 Macro environment analysis – PESTEL
Political – there is reduced cost in the process of working in the market. The company also
receives the support from the government. They are able to receive the trade agreements for the
international grounds. They also have a low amount of restriction in the trade market.
Economical – the company has a competitive market, as there are other companies who have
the similar objective of working. Though they have a high productivity because of their working
process, they should follow their process of economic stability and a concrete structure.
Social – the company would be able to target the young generation of entrepreneur who are
able to develop their own company in the market competition. There is also a high demand of the
form of company for the making of the investment in the new companies. They have a growing
economy in the market, which helps them to thrive in the end.
Technological – For the company selected for the report would be able to collect as much as
help possible from this section due to their investment in the main working process of the work
to be in the technological department of the market. There has been a high rise in the automation
of the process of business in their system.
Environmental – The main factor, which would be affected due to the environmental factor,
would be the lowering of the telecommunication services in the company. If the main link to the
whole internet falls for the company, the company would suffer a huge loss in the market.
Legal – The legal aspect of the company would be the improper activity with the other
companies that they are acquiring. The companies need to set up a legal bonding document,

14BUSINESS PLAN
which would make the deal that they have made true and binding. Otherwise, any of the parties
may go back on their word.
6.2 Company’s Industry analysis - Porter’s Five Forces Analysis
1. Threat of new entrants – The domain of their work is an ever increasing process
which attracts many of the new entrepreneurs for the development of their own
company in the same domain. Though it has been seen that the old companies are not
stopping the new companies and the old companies are always being preferred over
the newer companies.
2. Threat of substitutes – The substitutes in this market domain are the corporate
venture capitalist companies or bootstrapping. They would be able to change the
process that has been followed by the traditional venture capitalist companies.
Corporate venture capitalist companies have a very corporate form of approach for
the working of their company. however it has been often identified that the
bootstrapping companies should be accepted to make a change in the deal that has
been put forward by the new companies.
3. Bargaining power of customers–The customers in this case of the venture capitalism
are the full on investors and exits for the company. They help the company under the
venture capital company to buy themselves out of the deal that had been made and go
into a full on investment for the company.
4. Bargaining power of suppliers – The companies in this domain has to always be in
competition to access the best companies in the market. The competition should be
made positive in nature and should be accepted by the bargainer with a positive

15BUSINESS PLAN
attitude. To make the progress of the company for the profit of the company there
needs to be addressing of the challenges that are being faced by the company.
5. Industry rivalry – The venture capitalists know that they are in a competitive market
in the industry. The main rivals of the company are the ones who are working the
process to win themselves out of the deal with a secure support from the investors.
More the company is acquainted with other investors the more rivalry in increased in
the market.
6.3 Internal Company Analysis and External collaborations
Resource Base View:
 Valuable – The company works by investing in the projects of technology related
working company. The theme of their working can be said to be one of the best
investment area in the market. The technological sector in increasing every day and
new technologies are coming out every day. This would help the company to invest
their money on most of the new startup companies and help them thrive in the market.
 Rare – The acquisition of expert in the field of technological aspect. This is because
no employee would be able to understand the process of their working and thus would
not be able to understand the aim of this company.
 Inimitable – There are many companies in the similar domain and working for the
acquisition of the technological domain of the market. This can be come their
working fight between them which might become hard to process their loyalty base in
the market.

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 Non-substitutable – Some of the resources being used by the company would be
able to be substituted by the company in some way or the other.
Resources and Capabilities through Collaboration
The company has the requirement of some of the commonly required workers who would
be able to help the company to flourish further in the market race. They can be listed as website
developers, lawyers, graphic designers and content writers.
6.4 SWOT Analysis
Strengths Weakness
 The effort has been initiated from within
the process.
 There is an increased awareness about
the use of venture capitalist
 There are new and more experienced
venture capitalist who would be able to
work for the company
 There is also a rise in the number of
foreign-trained professionals in the
similar working ground.
 The company would be able to move
into an international trend in the market
 The company is new in the market and
not many people know about the
working process of the company
 Uncertainty of the working process of
the company
 The taxation policy of the government
 Smaller funds will not be able to be
liquidated.
 There can be difficulty in the domestic
fund raising process.

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 There is a position for the addition of
valuation in the company
 The company follows the regulatory
framework for the processing of their
information and projects.
Opportunities Threats
 The capital collected would help the
company to set up their other ventures,
which would help in the expansion of
the working of the project undertaking.
 The acquisition of medium and small
companies.
 The valuation of the pre monetary
activity of the company
 There can be a huge turnaround of the
collection of MBO and MBI
 The change in the governmental
regulatory policy will be directly impact
the working process of the company.
 The explosive expansion of the working
industry of the similar type of
companies would affect the work.

18BUSINESS PLAN
6.5 Financial Status Analysis
Cash flow budget:
Cash Flow
Budget:
Jan-
18
Feb-
18
Mar-
18
Apr-
18
May-
18
Jun-
18
Jul-
18
Aug-
18
Sep-
18
Oct-
18
Nov-
18
Dec-
18 Total
Receipts:
From Customers
67,50
0
70,87
5
74,41
9
78,14
0
82,04
7
86,14
9
90,45
6
94,97
9
99,72
8
1,04,7
15
1,09,9
50
1,15,4
48
10744
06
Loans
1000
0
1000
0 10000 10000 10000
1000
0
1000
0 10000
1000
0 10000 10000 10000
12000
0
Owner Capital
2500
0
5000
0 50000 50000 50000
5000
0
5000
0 50000
5000
0 50000 50000 50000
57500
0
Total receipts
1025
00
1308
75
13441
9
13814
0
14204
7
1461
49
1504
56
15497
9
1597
28
16471
5
16995
0
17544
8
17694
06

19BUSINESS PLAN
Payments:
Administrative
Expenses
2550
0
2550
0 25500 25500 25500
2550
0
2550
0 25500
2550
0 25500 25500 25500
30600
0
Wages and Salaries
3500
0
3500
0 35000 35000 35000
3500
0
3500
0 35000
3500
0 35000 35000 35000
42000
0
Rent and Rates
1750
0
1750
0 17500 17500 17500
1750
0
1750
0 17500
1750
0 17500 17500 17500
21000
0
Accountant
2250
0
2250
0 22500 22500 22500
2250
0
2250
0 22500
2250
0 22500 22500 22500
27000
0
Total payments:
1005
00
1005
00
10050
0
10050
0
10050
0
1005
00
1005
00
10050
0
1005
00
10050
0
10050
0
10050
0
12060
00
Net Cash Flow: 2000 3037 33919 37640 41547 4564 4995 54479 5922 64215 69450 74948 56340

20BUSINESS PLAN
5 9 6 8 6
Opening bank
balance
1000
00
1020
00
13237
5
16629
4
20393
3
2454
80
2911
29
34108
6
3955
65
45479
3
51900
8
58845
8
Closing bank
balance
1020
00
1323
75
16629
4
20393
3
24548
0
2911
29
3410
86
39556
5
4547
93
51900
8
58845
8
66340
6
Sales budget:
Sales Forecast
and Budget Jan-18
Feb-
18
Mar-
18
Apr-
18
May-
18
Jun-
18
Jul-
18
Aug-
18
Sep-
18
Oct-
18
Nov-
18
Dec-
18 Total
Mar
gin
Sales revenue
Digital Media 15,000
15,7
50
16,5
38
17,3
64
18,23
3
19,1
44
20,1
01
21,1
07
22,1
62
23,27
0
24,43
3
25,65
5
2,38,75
7
Internet 25,000 26,2 27,5 28,9 30,38 31,9 33,5 35,1 36,9 38,78 40,72 42,75 3,97,92

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50 63 41 8 07 02 78 36 3 2 8 8
Enterprise
Software 27,500
28,8
75
30,3
19
31,8
35
33,42
6
35,0
98
36,8
53
38,6
95
40,6
30
42,66
2
44,79
5
47,03
4
4,37,72
1
Total sales 67,500
70,8
75
74,4
19
78,1
40
82,04
7
86,1
49
90,4
56
94,9
79
99,7
28
1,04,7
15
1,09,9
50
1,15,4
48
10,74,4
06
100
%
Direct Costs
Travelling Cost 7,250
7,61
3
7,99
3
8,39
3 8,812
9,25
3
9,71
6
10,2
01
10,7
12
11,24
7
11,80
9
12,40
0
1,15,39
9
Consumer
Supplies 16,500
17,3
25
18,1
91
19,1
01
20,05
6
21,0
59
22,1
12
23,2
17
24,3
78
25,59
7
26,87
7
28,22
1
2,62,63
3
Sales
Commissions 15,550
16,3
28
17,1
44
18,0
01
18,90
1
19,8
46
20,8
38
21,8
80
22,9
74
24,12
3
25,32
9
26,59
6
2,47,51
1
Total Direct 39,300 41,2 43,3 45,4 47,76 50,1 52,6 55,2 58,0 60,96 64,01 67,21 6,25,54

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Costs 65 28 95 9 58 66 99 64 7 6 6 3
Gross Profit 28,200
29,6
10
31,0
91
32,6
45
34,27
7
35,9
91
37,7
91
39,6
80
41,6
64
43,74
7
45,93
5
48,23
2
4,48,86
3 42%
Indirect Costs
Web Hosting
Expenses 5,500
5,72
0
5,94
9
6,18
7 6,434
6,69
2
6,95
9
7,23
8
7,52
7 7,828 8,141 8,467 82,642
Public Liabilities 6,750
7,02
0
7,30
1
7,59
3 7,897
8,21
2
8,54
1
8,88
3
9,23
8 9,607 9,992
10,39
1
1,01,42
4
Advertisement
Costs 2,850
2,96
4
3,08
3
3,20
6 3,334
3,46
7
3,60
6
3,75
0
3,90
0 4,056 4,219 4,387 42,824
Total Indirect
Costs 15,100
15,7
04
16,3
32
16,9
85
17,66
5
18,3
71
19,1
06
19,8
71
20,6
65
21,49
2
22,35
2
23,24
6
2,26,89
0
Total Costs 54,400 56,9 59,6 62,4 65,43 68,5 71,7 75,1 78,7 82,45 86,36 90,46 8,52,43

23BUSINESS PLAN
69 60 80 4 29 72 70 29 9 7 2 3
Net Operating
Profit 13,100
13,9
06
14,7
58
15,6
60
16,61
2
17,6
20
18,6
84
19,8
10
20,9
99
22,25
5
23,58
3
24,98
6
2,21,97
3 21%

24BUSINESS PLAN
Profit and Loss for Three Years:
Year 1:
Profit & Loss Summary Year 2018
Sales Revenue Total
Digital Media 2,38,757
Internet 3,97,928
Enterprise Software 4,37,721
Total Sales 1074406
Direct Costs Total
Travelling Cost 1,15,399
Consumer Supplies 2,62,633
Sales Commissions 2,47,511
Total Direct costs 625543.1
Gross Profit 448863
Indirect costs

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Web Hosting Expenses 82,642
Public Liabilities 1,01,424
Advertisement Costs 42,824
Total Indirect costs 226889.7
Total Nett Profit 221973.3
Year 2:
Profit & Loss Summary Year 2019
Sales Revenue Total
Digital Media 262633
Internet 437721
Enterprise Software 481493
Total Sales 1181847
Direct Costs Total
Travelling Cost 122323

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Consumer Supplies 278391
Sales Commissions 262362
Total Direct costs 663076
Gross Profit 518771
Indirect costs
Web Hosting Expenses 86774
Public Liabilities 106495
Advertisement Costs 44965
Total Indirect costs 238234
Total Nett Profit 280537
Year 3:
Profit & Loss Summary Year 2020
Sales Revenue Total
Digital Media 288896
Internet 481493

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Enterprise Software 529642
Total Sales 1300031
Direct Costs Total
Travelling Cost 130886
Consumer Supplies 297878
Sales Commissions 280727
Total Direct costs 709491
Gross Profit 590540.4
Indirect costs
Web Hosting Expenses 91980
Public Liabilities 112885
Advertisement Costs 47663
Total Indirect costs 252528
Total Nett Profit 338012

28BUSINESS PLAN
Balance Sheet:
Eden Ventures: For Period ended 31 December 2018
Current Assets Current Liabilities
Cash £2,21,881 Income Tax Payable £2,14,881
Accounts Receivable £2,50,000 Accounts Payable £1,15,000
Total Current Assets £4,71,881 Total Current Liabilities £3,29,881
Non-Current Assets Long Term Debt
Land & Buildings £1,00,000 Bank Loans £1,20,000
Fixtures and Equipment £75,000
Vehicles £45,000
Less Accumulated
Depreciation £22,000
Total Non-Current Assets £1,98,000 Total Liabilities £4,49,881
Other Assets Owners Equity
Copyrights, Patents etc £1,05,000 Paid-in Capital £3,00,000

29BUSINESS PLAN
Other £0 Retained Earnings £25,000
Other £0
Total Other Assets £1,05,000 Total Equity £3,25,000
Total Assets £7,74,881 Total Liabilities and Equity £7,74,881
At the end of the projected financial of year 2018 the total amount of asset that is
reported is equal to the total liabilities and the amount of paid in capital contributed by the
owners. Under the column of assets depreciation has been considered for determining the actual
value of the asset at the end of the financial year. Assets include the current assets which
comprises of the cash and accounts receivable. On the other hand the current liabilities include
the income tax payable by the firm along with the accounts payable. The income tax rate payable
by the firm includes the total amount of sales reported during the projected financial year.
The non-current assets include the land and buildings of £100,000 with furniture and
fixed of £75,000. The other non-current assets include the vehicle of £45,000 with accumulated
depreciation of £22,000 that is charged on annual basis. The rate of depreciation is 10% based on
the straight line method. The non-current liabilities include the long-term debt of bank loans that
is undertaken by the owners of business for financing their business. Eden ventures additionally
incur expenses on copyrights and patents of £105,000. Under the section of owners’ equity the
contributed capital includes the owners contribution of £300,000 for funding their business. On

30BUSINESS PLAN
the other hand, under the owners the reportable anticipated amount of £25,000 is for the retained
earnings. The total amount of equity is anticipated to be £325,000 for Eden Ventures.
Break-even:
The total amount of break-even sales is anticipated to be £12,483 and the business anticipates
that the anticipated value of sales can be attained during the month of June. The anticipated
amount of margin of safety is arriving at £12,517 for each of the month. The derive the break-
even value there are numerous fixed costs such as;
a. Consumer supplies
b. Sales commission
c. Advertisement cost
d. Expenditure on Web hosting
e. Public Liabilities
The variable costs includes the
a. Cost of goods sold
b. Cost incurred in direct labour
c. Overhead
Therefore, the cost that is incurred by the firm is anticipated to be covered within the span of
six months from the operations.

31BUSINESS PLAN
Selling Price
(P):
£
250.00

32BUSINESS PLAN
Break-Even
Sales (S):
£
12,483.63
Break Even Month June [42]
Margin of Safety
£
12,517.00
Fixed Costs
Consumer Supplies
£
2,62,632.59
Sales Commissions
£
2,47,511.32
Advertising and Sales Promotion
£
42,823.55
Web Hosting Expenses
£
82,641.93
Public Liabilities
£
1,01,424.19
Total Fixed Costs (TFC)
£
7,37,033.57

33BUSINESS PLAN
Variables Costs based on Dollar Amount per
Unit
Cost of Goods Sold
£
100.00 per unit
Direct Labor
£
25.00 per unit
Overhead
£
10.00 per unit
Sum:
£
135.00
Variables Costs based on Percentage
Commissions 5.00% per unit
Sum: 5.00%
Total Variable Cost per Unit (V)
£
147.50
Contribution Margin per unit (CM)
= P - V
£
102.50
Contribution Margin Ratio (CMR) =
41.0%

34BUSINESS PLAN
1 - V / P = CM / P
Break-Even Point
Break-Even Month (X) June
Break-Even Sales (S) S = X * P = TFC / CMR
£
1,49,803.57
Targeted Net Income
Targeted Net Income Before Taxes (NIBT)
£
50,000.00
Units required to reach targeted NIBT, X =
(TFC + NIBT) / (P-V) 7,679 units
Sales required to reach targeted NIBT, S =
(TFC + NIBT) / CMR
£
19,19,594.07
Rate of return on sales before taxes
= NIBT / S 2.6%
Tax Rate (T) 25%
Net Income After Taxes (NIAT) =
(1-T)*NIBT
£
37,500.00

35BUSINESS PLAN
Rate of return on sales after taxes =
NIAT / S 2.0%
Break-Even Chart:
0 50 100 150 200 250
$(1,500)
$(1,000)
$(500)
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
BEP
Profit (Loss)
Total Revenue
Total Cost
Break-Even Point
Total Cost
Total Revenue
Profit (Loss)
Units (X)