Business Plan for Biodegradable Boxes

My business will deal with biodegradable boxes. I will be offering three kinds of services. The first one will involve an option of selling directly to customers on bulk, the second one will be to give a chance to organisations who need boxes to subscribe so as to use them for a month, and to other organisations, I will offer lease services where I will provide a 3D printer to the individual organisation so that they can create their own biodegradable boxes. With a start-up of, I’m $ 20 000, I will create a business which deals the above-aforementioned services. Exhibit 1.3 shows a complete set of revenue anticipated from each item.  My idea about this business is to replace the traditional cardboard boxes all companies are currently using. I would like the boxes to be biodegradable and recyclable so they can be used multiple times and save the company’s money and spent so much on the purchase of traditional cardboard boxes. I will ensure my business is profitable through widespread first-month advertisement.

 With a grant of $ 10 000 and my own contribution of $ 10 000, I will be able to purchase the first stock totaling $2640 and other upfront expenses totaling $ 6285.Exhibit 1.4 and Exhibit 1.5 shows the forecasted initial costs for the business.  From the projections, I look forward to finding this business profitable with the first years Net profit of $170 642. I will be able to pay back the grant of   85321.05 which would be 50% of my profits for the year. I will focus retail and wholesale shops because am sure their customers need a lot of packaging materials. What at is unique about my products is that they are recyclable, they will provide services to the customers more than once.

Financial and Break-Even Analysis

            I anticipate that my business will make substantive daily, weekly and monthly sales that will generate enough revenue to meet both current and fixed expenditure items. Exhibit 1.1 shows daily weekly and monthly sales per item.

I am looking forward that given the periodic promotions advertisements at cost of $ 1000, the business will be able to generate enough sales so that my business will break even at the month of August during my first year of Operations. Exhibit 1.3. shows the total costs and revenues per month for the whole year and the month in which the business will break even.

Exhibit 1.

Forecasted Daily Single Item Revenue

Expected .no of Customers per day

Item

Average units  per customer

Price per unit

Mon

Tue

Wed

Thur

Fri

Sat

 Weekly No. of Cus

Weekly Revenue

Monthly Revenue

Corrugated  folding re-usable paper

10

0.5

5

4

4

6

3

3

25

125

500

Design Paper

5

0.79

10

9

9

7

8

7

50

197.5

790

Personalized Clear curragated material

8

1.15

6

4

7

5

7

2

31

285.2

1140.8

Rolling Paper

6

0.1

7

5

7

7

9

6

41

24.6

98.4

Food Grade Disposable Recyclable custom

8

0.1

5

5

4

5

7

5

31

24.8

99.2

Total Single Item Revenue per week

37

2.64

33

27

31

30

34

23

178

657.1

2628.4

Exhibit 1.2

Costs

January

February

March

April

May

June

July

August

September

October

November

December

Totals $

Upfront Costs

6285

6285

6285

6285

6285

6285

6285

6285

6285

6285

6285

6285

75420

Product Revenue Costs

11560

11560

11560

11560

11560

11560

11560

11560

11560

11560

11560

11560

138720

Hired Help Costs

360

360

360

360

360

360

360

360

360

360

360

360

4320

Advertisement Costs

0

0

0

1000

0

0

1000

0

0

0

1000

0

3000

New equipment Supplies

0

0

350

0

0

0

48

0

0

65

0

0

463

Forecasted Revenue

13294

13294

13294

15288.1

17581.32

20218.51

23251

26739

30749.8298

35362.304

40666.6499

46766.64742

296505.6

Total Costs

6645

6645

6995

7645

6645

6645

7693

6645

6645

6710

7645

6645

83203

Forecasted Profits

6649

6649

6299

7643.1

10936.32

13573.51

15558

20094

24104.8298

28652.304

33021.6499

40121.64742

213302.6

Break Even Point

6649

13298

19597

27240.1

38176.42

51749.93

67308

87402.2

Break Even Point

Exhibit 1.3

Single Bulk Sales

Item

Unit Price $

No. of Units  to be purchasedd

 Total Amount$

Curruagated  folding re-usable paper

2.5

1000

2500

Desig Paper

1.58

1000

1580

Personalized Clear curragated material

3.45

1000

3450

Rolling Paper

0.3

1000

300

Food Grade Disposable Recycable custom

0.15

1000

150

Total single Costs

7980

Monthly Subscriptions Revenues

Organisation A

500

Organisation B

350

organisation C

600

Organisation D

450

Total estimate montly subsciptions Revenue

1900

Forecasted Montly Lease Revenues

Yearly Lease Agreement $

Lease Services

Montly Lased revenues $

Organisation E

1440

Biodegrable boxes

480

Organisation F

1920

Biodegrable boxes

640

Organisation G

1680

Biodegrable boxes

560

Total lease revenue

1680

Total Estimated Revenue

11560

Costs

January

February

March

April

May

June

July

August

September

October

November

December

Totals $

Upfront Costs

6285

6285

6285

6285

6285

6285

6285

6285

6285

6285

6285

6285

75420

Product Revenue Costs

11560

11560

11560

11560

11560

11560

11560

11560

11560

11560

11560

11560

138720

Hired Help Costs

360

360

360

360

360

360

360

360

360

360

360

360

4320

Advertisement Costs

0

0

0

1000

0

0

1000

0

0

0

1000

0

3000

New equipmement Supplies

0

0

350

0

0

0

48

0

0

65

0

0

463

Forecasted Revenue

13294

13294

13294

15288.1

17581.32

20218.51

23251

26739

30749.8298

35362.304

40666.6499

46766.64742

296505.6

Total Costs

6645

6645

6995

7645

6645

6645

7693

6645

6645

6710

7645

6645

83203

Forecasted Profits

6649

6649

6299

7643.1

10936.32

13573.51

15558

20094

24104.8298

28652.304

33021.6499

40121.64742

213302.6

Break Even Point

6649

13298

19597

27240.1

38176.42

51749.93

67308

87402.2

Break Even Point

Exhibit 1.4

Other First Months Expenses

Item

Estimated Cost $

Expected montly Rent

1200

Electricity

200

Water

150

Hired help salary

360

Employees salaries

360

Purchase of furniture

375

Advertisement Cost

1000

Total other First Months Costs

3645

Total Upfront Costs

6285

Works Cited

“Raw Material For Corrugated Boxes, Raw Material For Corrugated Boxes Suppliers And Manufacturers At Alibaba.Com”. Alibaba.Com, 2018, https://www.alibaba.com/showroom/raw-material-for-corrugated-boxes.html. Accessed 10 Mar 2018.