We have created a business, design a product, marketed it, sold it and now…how much is in the till?
Let’s count it. Get on the computer’s calculator and, very carefully:
1) Add up all the money you got from the sales of your product.
2) Count the number of items sold and divide them by 10.
3) Multiply the result by the cost x 10 units we gave you (5 ib for food and drink, 20 ib for clothes and complements, 10o ib for technological products)
4) The result is what you have to pay the bank as production costs, so you have to subtract that amount from your total earnings (the money you got on step 1)
5) The result is your total net profit. Divide it by the number of people in your company and you will know how much you have made.
Now imagine you sell just as much as in school if your product is sold in one shop in every city in Spain, around 165 shops. We could imagine aproximately the same sales in every shop in one full month, so take the total in step 1 and multiply it by 165= ________ib per month, a lot of money, isn’t it?
Explain your results at the end of the business plan and answer:
A) Was your business a success? How much money did you make?
B) If the bank lend you 150.000 ib to set up your first factory, at 5% interest, you would have to repay that money monthly. How long would it take you to return the total of 157.500 ib?
*Remember, you have to keep some money to live on, try not to repay with more than 1/3 of your money.
C) Finish your business plan explaining what has worked well and what would you change.
Finally, read the business plan through, save it and hand it in to the teacher together with your yellow accounts.
YOU ARE NOW A QUALIFIED BUSINESS ENTEPRENEUR! Congratulations