Detailed Business Plan: XYZ Cosmetics Financial Goals 2015-2019

This document presents the business plan for XYZ Cosmetics from 2015 to 2019. It outlines the company's financial goal of raising $450,000 as seed capital through a bank loan and projects the company's profit over three years, showing increasing sales revenues and net profit. The plan details the company's products and services, noting the need for a database-driven e-commerce website with social media functionality, payment processing, and CRM and accounting system links. The project's justification is based on an initial cost of $450,000 and a net present value of $888,790.87, making it a worthy investment. The document also includes lecture notes on gathering data to identify business requirements, covering topics such as identifying key information sources, reviewing organizational documentation, and developing critical questions for stakeholders, along with activities to define problem statements and differentiate between open and closed questions.

XYZ Cosmetics Business Plan
2015 - 2019
Contents
1. Financial Goal.................................................................................................................2
2. Projected Profit................................................................................................................2
3. Products and Services Plan.............................................................................................3
1. Financial Goal
Business Plan for XYZ Cosmetics – V1.0 | Page 1 of 3

The objective of XYZ Cosmetics is raising $450,000 as seed capital through a bank loan. The
developed business plan and financial projections assumes the loan will be payable over 20
years at a fixed interest rate of 9.5%.
2. Projected Profit
XYZ expects a solid grow in few years and increase profit whose three year estimates are
depicted in the chart below.
Projected Annual Profit and Loss
1st Year 2nd Year 3rd Year
Sale Revenues 880500 929900 1089500
Operating Expenses 383265 400089 425156
Earnings before Tax, Interest, Depreciation 497235 529811 664344
Expenses (Tax, Interest, Depreciation ) 99900 101000 109045
Net Profit 397335 428811 555299
Year 1 Year 2 Year 3
0
200000
400000
600000
800000
1000000
1200000
Sales
Operating Expenses
Earnings before Tax, Interest,
Depreciation
Expenses (Tax, Interest,
Depreciation )
NetProfit
Year 1 Year 2 Year 3
0
100000
200000
300000
400000
500000
600000
Estimated Profit Yearly
NetProfit
0
400000
800000
1200000
Year 1
Year 2
Year 3
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3. Products and Services Plan
The XYZ cosmetics company uses a ‘static’ website that lists products in detail plus their
prices but does not allow customers to make direct purchases. Purchases through the webs
site require a registered user making a phone call and getting the order taken down by a sales
representative. Non-registered customers must visit any of the physical stress to buy a
product. The interview has revealed the company wants a database driven e-commerce
website with social media functionality, payment processing, and CRM and accounting
system links using its existing IT resources; this will require additional virtualization and use
of a cloud backup system to ensure business continuity. The project is justified based on the
intended initial cost of $ 450,000 that is will fully be able to pay for in the second year. A
calculation of its Net present value using the projected cash flows shows it is a worthy
investment with an NPV of $888,790.87
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