You made it, you advertised it and you sold it!
Now is time to draw conclussions from our Young Enterprise experience:
We are going to answer questions 5 and 6 of our Finance section and add all these information to your PPT
- PROFIT: What will be your profit? How much will you make on each sale after you subtract your expenses? (Profit = Income – Expenses)
Income: count the money you made last Friday:______SEK dollars.
Expenses: count the money you spend buying materials: _____SEK dollars
Now subtract the expenses from the income: Income-Expenses
- What will you do with the money you make? How much will you use for wages/ to reinvest in your business/ to repay your start up loan?
Start-up loan: We defined it by economic sector and you must calculate the total interest you will have to pay:
Food and drinks: 50.000$ at 5% interest = (50.000 x 5 ) / 100 = ______ Total to pay back: 50.000 + _______ =_________$
Clothes and accessories: 75.000$
Technology and entertainment: 100.000$
To make a projection of benefits, we are going to calculate how much money would you have made if you sold your product in one shop in all major towns and cities in Spain. Find out hoe many towns and cities there are in Spain over 10.000 inhabitants.
Multiply the number of towns x the money you made at the fair x average working days in a month.
From the resulting number you will know your expected monthly income.
Now calculate how much of that money you are going to use to:
-Repay the loan: How long will it take you to pay it back?
-Business running costs: rent, light, water, workers
-Wages of the company directors
-Reinvestment in the company: research and innovation, expantion (opening new factories, selling abroad, advertising…).
Analyse those figures and explain if you think your company would be financially successful. If it is not, try to find the reasons and explain what you could do to improve its viability.
Finally, answer these QUESTIONAIRE in your notebook and hand it in:
Business enterprise reflection