UNIT 2, Section C - PowerPoint PPT Presentation

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UNIT 2, Section C. Easy Start. Discuss and explain your expenses from Section B. Try and add detail. If you are just repeating yourself make a reference to the section where I can find it. 3. Describe and explain your expected income / revenue for your chosen business.

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UNIT 2, Section C

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UNIT 2, Section C

Easy Start

Discuss and explain your expenses from Section B. Try and add detail. If you are just repeating yourself make a reference to the section where I can find it

3. Describe and explain your expected income / revenue for your chosen business.

• What is or are the prices of your products?

• Create a price list, explain the level (quality, quantity)

• What are your expected sales per week or per month?

• Find your average price

• Average price x Expected sales (per month) = Monthly Income

• Explain how you decide on that demand

• Explain if your demand changes throughout the year

4. Open up ‘unit 2 accounts’

Receipts (Income)

• Cash sales – number sold x unit price

• Credit sales – Do you plan on allowing any purchasers to buy now pay later

• Capital Introduced – Your money that you are investing

Expenses

• Drawings – How much are you going to pay yourself?

• Wages – How much are you spending on staff per month

• Rent

• Rates – £150 Council tax

• Insurance – Business, car, shop. If you are paying yearly not monthly just enter the yearly sum in the month you are paying it.

• Bank Charges – Usually charges for exceeding overdraft limit or other services you have requested

• Loan Repaid Capital – How much of your loan are you paying off each month

• Loan Repaid Interest – How much do you pay in interest each month

• Bank Overdraft interest – If you have an overdraft it usually has an amount of interest

• Opening Stock – How much stock (finished products) do you have left over from last month

• Trade Purchases – How much you are spending on raw materials for the next month. Bear in mind you should buy a couple of months ahead and you need to have enough stock to meet demand

• Energy – Gas, Water, Electricity – Atleast £100 per month and more if you are operating machinery

• Advertising and Promotion –

• Equipment – Probably costly in first month, includes tills etc

• Motor Vehicles – Purchasing of motor vehicles

• Leasing – Are you leasing (specific method of buying something) anything? Could be car, equipment

• Petrol/oil/maintenance – Think about how much transport you require and the cost of fuel. Allow some contingency for vehicle repairs etc.

• Print/ Stationary/ Phones – Everyone will need a business phone line and printer