Business Plan_as22.0 Start up Plan and CostBecause our company is located in CAVS research center, the construction of a new building is not required. However, a place in CAVS must be rented. The below chart is the plan for start up along with the cost for each step. The assets are also found in the below chart. Startup Expenses – first yearLegal $1,500Marketing $10,000Stationary $3,000Insurance $15,000Lease at CAVS $1,000/monthOther $5,000Total: $46,500Total Start-up Requirements = $396,5002.1 Initial Breakeven ChartTo acquire this initial investment, we are using various portions of our own capital as well as investments from angel investors. The breakdown for our investments can be seen below:InvestorsPersonal investor 1 $56,500Personal investor 2 $50,000Personal investor 3 $50,000Personal investor 4 $50,000Angel Investors $90,000Bank Investors $100,000Total Investments $396,500Total investments = $396,500 Total expenses = $396,000Total Capitol = $350,000 Startup AssetsCash requirements $300,000Total Assets: $350,0002.2 Sales Forecast and AssumptionsSales 2005 2006 2007 2008Customers 50 60 72 86Project Consulting $3,000/customer $2,000 $2,000 $2,000Market research $1,000/customer $1,000 $1,000 $1,000Retainer Consulting $2,000/customer $2,000 $2,000 $1,000Equipment $10,000/customer $10,000 $10,000 $10,000Total Sales: $800,000 $900,000 $1,080,000 $1,204,000Direct Cost 2005 2006 2007 2008Project Consulting $600/customer $600 $600 $600Market research $200/customer $300 $400 $400Retainer Consulting $400/customer $400 $400 $400Equipment $6,000/customer $6,000 $6,000 $6,000Subtotal Direct Cost $360,000 $438,000 $532,800 $636,400Sales-Direct Cost Total $440,000 $462,000 $547,200 $567,6002.3 Personnel Plan 2005 2006 2007 2008President $60,000 $60,000 $80,000 $80,000Engineers *3 $150,000 $150,000 $180,000 $180,000Sales People $0 $10,000 $10,000 $10,000Angel Investors $10,000 $10,000 $10,000 $10,000Secretarial $20,000 $20,000 $20,000 $20,000Bank Investors $20,000 $20,000 $20,000 $20,000Subtotal: $260,000 $270,000 $320,000
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