Business Calc
Over the Moon Toys: A Business Proposal
The following pages contain a financial overview and qualitative description of a proposed retail venture. A need for an independent toy store located within the confines of the municipality has been identified, with a growing number of consumers seeking alternatives to the "big-box" retailers and lower-quality merchandise. The project description provides greater detail regarding the focus of Over the Moon Toys, the proposed business, including the impetus for the creation of this business, market and sales expectations based on a qualitative analysis of the local consumer base, and a discussion of the physical location within the community that might best serve this community and the proposed business. Following this project description, a work schedule breakdown and related financial details and estimates of the project are provided. A series of relatively simple yet highly interconnected and dependent tasks will lead to the establishment of the business, which can be started for capital costs of less than $50,000 based on current estimates. A more detailed financial analysis of the proposed business costs based on advanced estimation techniques is also provided, to provide greater assurance of the reliability of the quantitative information used. Finally, projected revenues over the next five years are provided in order to establish some record of the expected profitability and likelihood of success for the venture. With this information, it is concluded that the proposed venture is likely to meet with a high level of success so long as costs are properly controlled.
Project Description
Over the Moon Toys is a proposed small- to medium-sized retail establishment to be operated somewhere within the confines of the local municipality. A growing number of consumers, especially educated members of the middle- and upper-income levels, are actively seeking higher-quality toys manufactured in the United States or Europe as alternatives to the lower-quality offerings manufactured in certain Asian countries and other developing parts of the world. This trend is fueled by safety and ethical concerns, as well as by image and perception; not only are there greater levels of regulatory oversight and more stringent safety standards in place in the United States, Europe, and other nations than in countries such as China, but human rights concerns regarding employment in the manufacturing sector in developing nations are also becoming increasingly prevalent and this is driving many consumers away from such products. Offering these consumers high-quality toys that meet or exceed more stringent safety standards and are ethically manufactured will satisfy this need, and such spending practices and products have also become something of status symbols among certain consumers. Emphasizing the image of quality, the interconnectedness of manufacturing issues and consumer choices, and the real attempt to build an ethically and financially viable business will help to brand Over the Moon Toys.
Because of the specific emphasis Over the Moon Toys is aiming for, it is acknowledged that only a specific demographic will be especially interested in making purchases at the business. For this reason, location will be an especially important aspect of ensuring the success of the store; while there are several well-established and appealing retail areas within the municipality, some might be more supportive of a middle- to higher-income clientele. The downtown area contains several shops with similar intents and emphases, yet without any store focusing primarily or even extensively on toys. Several stores do offer certain toy goods for sale, but selection is limited and there are currently several vacant storefronts in this heavily trafficked area. At a downtown retail establishment, it is estimated that approximately $3,000 in sales revenue can be made in a typical day, though there is likely to be considerable variance between weekend and weekday sales. Retail prices are typically at a 100% markup from wholesale costs, not including shipping (which varies considerably from distributor to distributor and based on order amounts, promotions and sales, etc.), for gross profits from sales equaling approximately $1,000. Along with full-time presence by the owner manager, a total of 80 employee hours over the 60 hours of business operation each week at a rate of $9/hr (total $720/week, $2,880/month); rent and utilities in the downtown area are expected to run a combined total of $7,500/month, for total operating costs of $10,380 each month and total revenue (after the cost of goods sold) of $30,000 (30 x $1,000/day). Additional expenses, product loss, and other issues will likely decrease the projected profits by as much as several thousand dollars a month, and the remaining profits will cover both business improvements and growth and represent the sole income of the owner/manager of the business as well.
Work Schedule Breakdown
EMBED Excel.Sheet.8
Cost Estimate
Advanced Cost Estimate
More detailed cost estimates have been constructed using the method proposed by the U.S. General Accounting Office (GAO). For each estimate, a specific purpose is identified and a plan developed, followed by obtaining the data, conducting a risk and uncertainty analysis, and documenting the estimate. The following estimates are for rent, and employment costs.
Rent Estimate:
Purpose for estimate: Rent will form a considerable portion of the fixed operating costs of the business, and must be adequately planned and prepared for prior to forming any realistic estimate for the project's initial and ongoing costs.
Plan: Call vacant properties and receive price quotes. Call comparable retail establishments and make inquiries as to rent amounts paid.
Data obtained: Rents in the downtown area seem to average approximately $7/sqft. For 900 sqft of retail space, rent should be approximately $6,300.
Risk analysis: Variance in the downtown area ranges within $3/sqft in either direction, meaning total rent for 900 sqft could fluctuate from $3,600 to $9,000 (or space would need to be...
Journal Writing "a Modest Proposal" by Jonathan Swift As the name suggests, this is a proposal put forth by the writer on the way to help Ireland out of the problem of beggars along the streets and an ever increasing population of poor people within the nation. Indeed, he not only views his suggestions as viable towards decreasing the population of the poor, but to also earn the country foreign money that
Abortion A Modest Proposal: Abortion for Two Perhaps the most significant debate of recent decades on a political, religious, and social level is that of abortion. Many questions are raised about whether this is a justified right inherent to any fertile woman, or an inhumane practice fostered by a barbaric society. Those who believe it is not right to abort the unborn struggle to make it as difficult as possible for anyone
Modest Proposal for Preventing the Children of Poor People in Ireland from Being a Burden to Their Parents or Country, and for Making Them Beneficial to the Public, tells the conditions of poor, rural Irish families facing starvation and desolation caused by brutal oppression from their neighboring and bullying country England in 1729. The length of the title of this essay introduces the satirical form that Swift uses in
Johnathan Swift's "A Modest Proposal" is a work of satire in which Swift suggests, as a solution to the problem of famine in Ireland, that the starving Irish should eat their babies. This, he states, is a way to cope with the problem of both hunger and overpopulation. Swift makes deliberate use of hyperbole throughout his essay. He uses some of the most common, racist criticisms about the Irish leveled
The primary reason for this is the fact that people like Swift's projector and various politicians like him are far too successful in manipulating language to their own advantage. While Orwell did not live in our day, he was truly a visionary and he is not far off the mark when it comes to politics and the power of persuasion. Swift reinforces this notion with his proposal, which is
Modest Proposal" by Jonathan Swift is satire? The combination of the bland mealy-mouthed title attached to a horrifying vision of mass-murder might at first seem inherently ironic. But this is no guarantee of satirical humor: after all, when the bureaucratic-sounding title attached to a monstrous plan is the "Final Solution," we have left the realm of ironic satire and entered the realm of actual atrocity. The notion that Swift's
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now