About the work
Business plan for setting up an enterprise for automated popcorn sales (vending)
Project summary
1. Introduction.
The introduction is expected to provide an overview of the industry in which the project is to be implemented, the market size, and development prospects.
2. Product
This section contains a description of the product and its main consumer characteristics.
3. Marketing data.
This section defines:
• The main consumer;
• product pricing options;
• the list and cost of the required components (ingredients);
• the cost of the required primary and additional equipment;
• sales volume options.
Based on the defined product pricing and sales volume options, revenue volume options are forecast and a baseline option is determined.
An overview is provided of the regulatory documentation that must be taken into account when implementing the project.
4. Company description.
This section presents a proposed company structure for implementing this project, with a staffing schedule and the definition of the payroll fund taking into account taxes and fees.
The form of organization and the taxation regime are determined.
5. Cash flow (CF).
CF is calculated over a defined time interval, for example, 1 year.
As a result of the CF calculation, one can see the increase in profit volume and determine the project's payback period.
6. Financial ratios.
Financial ratios are calculated showing the feasibility of implementing the project and its attractiveness for investment.
7. Risks
Possible risks are listed, and measures to minimize them are provided.
Main calculated project data
Payback based on discounted cash flow (NPV) occurs ~ 18 months after the company starts operating.
The bank loan rate for legal entities, 16%, is taken as the discount rate (r).
The return on investment index PI is 1.8 (calculated for the second year), PI >1.
The internal rate of return of the project (IRR) is ~ 140%, a fantastic figure, calculated by trial and error, bringing NPV close to 0, and there is no reason not to believe it.
In addition, it can be said that the net profit amounts to sums far greater than the interest on a bank deposit over a comparable period.
An appendix is expected for the business plan — a cash flow calculated over 15 months.
Project summary
1. Introduction.
The introduction is expected to provide an overview of the industry in which the project is to be implemented, the market size, and development prospects.
2. Product
This section contains a description of the product and its main consumer characteristics.
3. Marketing data.
This section defines:
• The main consumer;
• product pricing options;
• the list and cost of the required components (ingredients);
• the cost of the required primary and additional equipment;
• sales volume options.
Based on the defined product pricing and sales volume options, revenue volume options are forecast and a baseline option is determined.
An overview is provided of the regulatory documentation that must be taken into account when implementing the project.
4. Company description.
This section presents a proposed company structure for implementing this project, with a staffing schedule and the definition of the payroll fund taking into account taxes and fees.
The form of organization and the taxation regime are determined.
5. Cash flow (CF).
CF is calculated over a defined time interval, for example, 1 year.
As a result of the CF calculation, one can see the increase in profit volume and determine the project's payback period.
6. Financial ratios.
Financial ratios are calculated showing the feasibility of implementing the project and its attractiveness for investment.
7. Risks
Possible risks are listed, and measures to minimize them are provided.
Main calculated project data
Payback based on discounted cash flow (NPV) occurs ~ 18 months after the company starts operating.
The bank loan rate for legal entities, 16%, is taken as the discount rate (r).
The return on investment index PI is 1.8 (calculated for the second year), PI >1.
The internal rate of return of the project (IRR) is ~ 140%, a fantastic figure, calculated by trial and error, bringing NPV close to 0, and there is no reason not to believe it.
In addition, it can be said that the net profit amounts to sums far greater than the interest on a bank deposit over a comparable period.
An appendix is expected for the business plan — a cash flow calculated over 15 months.
Nikita
Denis M.
