Free Sample Essays > Management
Business Idea: Discount Audio Store
competition.
Financial Figures Prediction:
Estimated Turnover:
As the products to be sold are fairly expensive, and the volume expected to be sold rather large due to the market niche, and demand, I am going to estimate the turnover to be around Ј800,000 per annum. This figure is however, jus an estimate and is likely to change.
Here is a list of the expected costs:
Salaries and Wages
Warehouse staff: 15
Of which full time: 10
The remaining 5 being part time.
All of the warehouse staff are to be on an hourly rate of Ј5.50.
For the 10 full time staff, the expected cost will be:
9 hour days (9-5) x 7 day week = 63 hours. The 10 full time staff will each be contracted to work 40 hour weeks, while the part time staff working 23 hours a week.
40xЈ5.50= Ј220 per week for each full time member of staff
23xЈ5.50= Ј126.50 per week for each part-time member of staff
To arrive at final figures for full and part time staff:
Ј220x10 + Ј126.5x5 = Ј2832.5
To arrive at a yearly figure for all warehouse staff:
Ј2832.5 x 50 (weeks open each year) = Ј141625
Admin and other staff (on salaried pay):
There are to be:
1 x receptionist: Ј13,000
1 x IT technician: Ј20,000
2 x admin staff (sorting out orders, putting through to warehouse): Ј15,000 (x2)
1x operation manager: Ј35,000
Total being: Ј98,000
The total cost for salaries and wages, for all staff is therefore: Ј141625 + Ј98,000 = Ј239625
Rent and Rates
This will be dependant and the location, and size of the warehouse.
Heat and Light
As the operation is to be run 50 weeks of the year, it can be expected to be relatively high.
Telephone
Being an internet company, telephone bills will be rather small.
Postage and stationary
This will be a large cost as all items are to be posted out to the customer.
General Expenses
Maintenance
The main maintenance bill will be from the computer equipment, hard to estimate the actual cost.
Depreciation
Computer equipment will be the biggest depreciative item. As long as the company gets good use of out it, this cost will be cancelled out.
Recommendations:
I believe that the potential for this business proposition to be successful is very high. It produces maximum profit, with relatively few overheads in comparison to a retail outlet; it also conforms to the brief which has been set.