Cost Structure
To set up our business we need enough capital to cover ours first five
year’s costs.
Revenue Projection for the next five years
Since the Uni2Go team is currently based in Portugal, we will start establishing our business in Lisbon and other portuguese cities . Expected Sales Projections for Uni2Go are:
However, Uni2Go plans tu expand its operations in the next five years in other European Cities:
Expenses
Fixed Costs
1. Domain: The domain for Uni2Go has a cost of 2.00€ per month. This cost is expected to be constant throughout the five years.
2. Telecommunication (telephone, mobile phones, internet): Also the telecommunication costs remain constant throughout the five years - 16€ per month.
3. Payment Processing: The system will process, verify, and accept or decline credit card transactions on our platform. The costs equal 30€ per month and are constant throughout the five years.
4. Server: The capacity of the platform needs to be increased within the five years as the Uni2Go website will generate more traffic. This is why the server costs are expected to increase throughout the five years.
5. IT-Employee: An IT-guy is required to establish and maintain the platform.
6. Salaries of Founders: The founders of Uni2Go will only be paid after the 1st year of operation.
Variable Costs
1. Marketing Campaign Costs: The marketing expenses vary depending on the revenues of Uni2Go.
1. Domain: The domain for Uni2Go has a cost of 2.00€ per month. This cost is expected to be constant throughout the five years.
2. Telecommunication (telephone, mobile phones, internet): Also the telecommunication costs remain constant throughout the five years - 16€ per month.
3. Payment Processing: The system will process, verify, and accept or decline credit card transactions on our platform. The costs equal 30€ per month and are constant throughout the five years.
4. Server: The capacity of the platform needs to be increased within the five years as the Uni2Go website will generate more traffic. This is why the server costs are expected to increase throughout the five years.
5. IT-Employee: An IT-guy is required to establish and maintain the platform.
6. Salaries of Founders: The founders of Uni2Go will only be paid after the 1st year of operation.
Variable Costs
1. Marketing Campaign Costs: The marketing expenses vary depending on the revenues of Uni2Go.
Investments
In order to establish a fully operating business, Uni2Go needs to make several investments:
Uni2Go Platform: 15'000.00€
European Trademark: 2'500.00€
Total: 17'500.00€
Uni2Go Platform: 15'000.00€
European Trademark: 2'500.00€
Total: 17'500.00€
Funding
The team will contribute part of the funding needed to build of the business.
Uni2Go Team Funding:7'500.00€
Venture Capital: 10'000.00€
Total: 17'500.00€
Uni2Go Team Funding:7'500.00€
Venture Capital: 10'000.00€
Total: 17'500.00€
Break Even Analysis
The break-even point indicated how many business services Uni2Go should target so that costs and revenues are equal (i.e. = 0)
To calculate the break-even point, we have to divide total fixed expenses by the contribution margin*.
*Contribution margin (%) = sales per unit** minus all variable expenses
**Sales per Unit = 63% x 15€ (Basic Package Price) + 30% x 30€ (Regular Package Price) + 7% x 40€ (Premium Package Price)
= 21.25€ X 12 months = 255€
To calculate the break-even point, we have to divide total fixed expenses by the contribution margin*.
*Contribution margin (%) = sales per unit** minus all variable expenses
**Sales per Unit = 63% x 15€ (Basic Package Price) + 30% x 30€ (Regular Package Price) + 7% x 40€ (Premium Package Price)
= 21.25€ X 12 months = 255€
Break-Even Points in Sales
Year 1 BEP = 78 Businesses
63% x 78 units x Basic Package Price = 708.75€
30% x 78 units x Regular Package Price = 702€
7% x 78 units x Premium Package Price = 218.4€
Break-Even Sales = 1'629.15€
Year 2 BEP = 303 Businesses
63% x 303 units x Basic Package Price = 2'863.35€
30% x 303 units x Regular Package Price = 2'727€
7% x 303 units x Premium Package Price = 848.4€
Break-Even Sales = 6'438.75€
Year 3 BEP = 339 Businesses
63% x 339 units x Basic Package Price = 3'203.55€
30% x 339 units x Regular Package Price = 3'051€
7% x 339 units x Premium Package Price = 949.2€
Break-Even Sales = 7'203.75€
Year 4 BEP = 78 Businesses
63% x 423 units x Basic Package Price = 3'997.35€
30% x 423 units x Regular Package Price = 3'807€
7% x 423 units x Premium Package Price = 1'184.4€
Break-Even Sales = 8'988.75€
Year 5 BEP = 78 Businesses
63% x 498 units x Basic Package Price = 4'706.1€
30% x 498 units x Regular Package Price = 4'482€
7% x 498 units x Premium Package Price = 1'394.4€
Break-Even Sales = 10'582.5€
Year 1 BEP = 78 Businesses
63% x 78 units x Basic Package Price = 708.75€
30% x 78 units x Regular Package Price = 702€
7% x 78 units x Premium Package Price = 218.4€
Break-Even Sales = 1'629.15€
Year 2 BEP = 303 Businesses
63% x 303 units x Basic Package Price = 2'863.35€
30% x 303 units x Regular Package Price = 2'727€
7% x 303 units x Premium Package Price = 848.4€
Break-Even Sales = 6'438.75€
Year 3 BEP = 339 Businesses
63% x 339 units x Basic Package Price = 3'203.55€
30% x 339 units x Regular Package Price = 3'051€
7% x 339 units x Premium Package Price = 949.2€
Break-Even Sales = 7'203.75€
Year 4 BEP = 78 Businesses
63% x 423 units x Basic Package Price = 3'997.35€
30% x 423 units x Regular Package Price = 3'807€
7% x 423 units x Premium Package Price = 1'184.4€
Break-Even Sales = 8'988.75€
Year 5 BEP = 78 Businesses
63% x 498 units x Basic Package Price = 4'706.1€
30% x 498 units x Regular Package Price = 4'482€
7% x 498 units x Premium Package Price = 1'394.4€
Break-Even Sales = 10'582.5€
Download the full Financial Plan.
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uni2gobp_v2.xlsx | |
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File Type: | xlsx |