Lessons Learned 10 - Financial Plan and Processes

Lessons Learned #10

1st Dec 2014Group #4

Lean Entrepreneurship Project S4

Diana Moreira Hugo Stevens

Jan OttaJudit Kalmár

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New Fancy Logo

In order to make our logo more appealing to young people but at the same time keeping it

elegant we decided that this is the final version.

3

Financial Plan

Sales• We start our sales strictly online, we assume that we will

sell 500 units in the first month with a regular increase of 10% per month.

• After three months we would like to set up a first stand in a shopping center where we assume sales of 1000 unites per month.

• Six months from the beginning of operations we would like to add 2 more stands with same predicted sales as the first one.

Product selling price• We set out selling price at 5 Euros per pair. We would like

to provide different product lines with different sales but that will happen in a later stage of our business.

4

Financial Plan

Costs of production• We assume that the average cost of production in the first year

will be 55 cents per pair and it will decrease by 5 cents per year for the first three years due to economies of scale.

Expenses:

Web Page 1000 + 200/monthly

Staff (7 after three years) 700 monthly

Marketing 2000 yearly

5

Financial Plan

Net profit

• We hope that our sales will be growing according to our plan. If it goes as planned, SOCK IT will be a very profitable business.

YEAR SALES PROFIT

1 158,461 86,982

2 467,783 282,251

3 946,574 588,658

SUM 1,572,817 EURO 957,891 EURO

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Processes

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Processes