Tuesday 3 May 2011

Enterprise Presentation


Open publication - Free publishing - More enterprise

My section to talk about during the presentation (notes):
  • In order to get hold of capital we need to obtain a bank loan which requires us to put up half of the £25000 start up costs ourselves - show level of commitment to the business. 
  • As business is 4 years in future - gives us time to work for our share or borrow from family and friends (£3215).
  • Based on interest rates with Alliance and Lecister of 6.9% APR typical, a loan of £12500 payable over 3 years would be £385 a month.
  • To obtain loan - need to provide cash flow showing indirect costs - insurance, utilities etc and direct costs such as wages.
  • Whilst attracting new clients we foresee the 1st 6 months to be difficult financially.
  • We predict sales for 1st month to be £6400 and after 6 months achieve £13200 a month to break even. We envisage to have enough money left over from start up loan to cover overhead costs in the 1st 6 months. 
  • We had decided to keep track of our own accounts using a Microsoft accountancy package to cut costs of paying an accountant. 
  • We each need to work an average of 16.5 days a month - 8 hours a day to cover costs. This will be challenging in the initial stages whilst attracting new clients. 
  • To compensate we have raised our base hourly rate of a cost covering £16.40 to £25 each an hour - £800 for all 4 of us for 8 hours.

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