Marketing Plan-Budget of AT&T Sync Phone

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Table of Contents

Purpose of This Business Plan
Projected Net Sales and Net Income
Basis for Financial Projections

Purpose of This Business Plan

This business plan is to provide vital information to potential investors or lenders such as projection of revenue, profit, and capital requirements for decision making. The failure rate for small businesses is extremely high, often because the entrepreneur underestimated the amount of capital that would be required. The Cash Flow Statement in the form of will shows the cash position of our company.

The management decisions will have long-term effects and it is important that they should be based upon a true understanding of the past with a logical estimate of the future. In the business of AT & T Sync phone, detailed knowledge of the business and its environment will be possessed by perhaps finance and administration managers. It is likely that there will be a host of factors that could adversely affect the company’s future or, alternatively, which could be exploited if the company was prepared in advance to take advantage of them.. The main purpose here is not to consider forecasting at length but to relate it to budgeting. Basic problems will be highlighted and two major areas of forecasting them considered, i.e. sales and production.

Projected Net Sales and Net Income

The duty of a company manager doesn’t end in ensuring that his/her company produces some high-quality products/services, but also includes the burden of apportioning the right prices to the costs to the point of break-even. The product prices depending on the primary purposes of the organizations: whether to make a lot of profits or to serve the society justifiably.

Projected Sales

Sales increased from year one to year two as shown by the chart above. The profits also increased as the sales increased. This means the increase in profits was due increase in sales not the charge of gross profit margin.

Basis for Financial Projections

Sales projections: Sales have been projected to be 500,000 units in the first month which will increase at a rate of 1850 per month and 6,122,100 units in the first year. This will bring revenue of equivalent to $ 10,713,675 at unit prices of $ 1.75. Cost of sales AT & T Sync phone will be $1.34 per unit. This will be 76.6% of the revenue generated in the first year. Cost of sales will consist of all cost that brings AT & T Sync phone into the consumable state.

Payroll:-As of right now, the AT & T Sync phone production unit doe not need more than 50 employees. Also, the AT & T Sync phone is not going to yield massive profits in the first few years. When the brand starts to grow and make profit then he will be able to generate enough money to be independent.

Depreciation expense: The depreciation is charged at 20% on straight line. That is 110,000/20% which is 22,000 per year.

Insurance Expense: Insurance costs will be paid by the earnings of the business. Fire, theft, injury, liability and other coverage are needed. So far no particular insurance company has been selected but this cost is estimated to be 150 pounds per year for building. This cost is an estimate.

																					Schedule B-1


																									Total
					Feb		Mar		Apr		May		Jun	Jul		Aug		Sep	Oct		Nov		Dec		1st Year
Sales (per Sched. B-2)					878,238		881,475		884,713		887,950		891,188	894,425		897,663		900,900	904,138		907,375		910,613		10,713,675
Cost of sales (Sched. B-3)					672,479		674,958		677,437		679,916		682,395	684,874		687,353		689,832	692,311		694,790		697,269		8,203,614
	Gross Profit				205,759		206,517		207,276		208,034		208,793	209,551		210,310		211,068	211,827		212,585		213,344		2,510,061
	Gross Profit %				23.4%		23.4%		23.4%		23.4%		23.4%	23.4%		23.4%		23.4%	23.4%		23.4%		23.4%		23.4%
Operating expenses:
	Officers salaries				1,000		1,000		1,000		1,000		2,000	2,000		2,000		2,000	2,000		2,000		2,000		19,000
	Other payroll (Sched. B-5)				35,000		35,000		35,000		35,000		35,000	35,000		35,000		35,000	35,000		35,000		35,000		420,000
	Payroll taxes			14%	5,040		5,040		5,040		5,040		5,180	5,180		5,180		5,180	5,180		5,180		5,180		61,460
	Employee benefits			4%	1,440		1,440		1,440		1,440		1,480	1,480		1,480		1,480	1,480		1,480		1,480		17,560
	Advertising (Sched. B-6)				17,565		17,630		17,694		17,759		17,824	17,889		17,953		18,018	18,083		18,148		18,212		214,274
	Commissions			0%	0		0		0		0		0	0		0		0	0		0		0		0
	Depreciation				1,833		1,833		1,833		1,833		1,833	1,833		1,833		1,833	1,833		1,833		1,833		22,000
	Insurance – liability				100		100		100		100		100	100		100		100	100		100		100		1,200
	Insurance – casualty				150		150		150		200		200	200		200		200	200		200		200		2,200
	Legal and accounting				300		300		300		300		300	300		300		300	300		300		2,300		5,600
	Rent				2,000		2,000		2,000		2,000		2,000	2,000		2,000		2,000	2,000		2,000		2,000		24,000
	Supplies				400		400		400		400		400	400		400		400	400		400		400		4,800
	Telephone				200		200		200		200		200	200		200		200	200		200		200		2,400
	Utilities				400		400		400		400		400	400		400		400	400		400		400		4,800
	Other				1,000		1,000		1,000		1,000		1,000	1,000		1,000		1,000	1,000		1,000		1,000		12,000
	Other				0		0		0		0		0	0		0		0	0		0		0		0
Total operating expenses					66,428		66,493		66,558		66,672		67,917	67,982		68,047		68,111	68,176		68,241		70,306		811,294

Profit before interest and taxes					139,330		140,024		140,718		141,362		140,875	141,569		142,263		142,957	143,650		144,344		143,038		1,698,767

Less: Interest expense					(2,700)		(2,200)		(1,700)		(1,200)		(700)	(200)		(200)		(200)	(200)		(200)		(200)		(13,400)

Profit before taxes					136,630		137,824		139,018		140,162		140,175	141,369		142,063		142,757	143,450		144,144		142,838		1,685,367

Less: income taxes				35%																			589,879		589,879
Net profit					136,630		137,824		139,018		140,162		140,175	141,369		142,063		142,757	143,450		144,144		(447,041)		1,095,489
Net profit %					15.6%		15.6%		15.7%		15.8%		15.7%	15.8%		15.8%		15.8%	15.9%		15.9%		–		10.2%

																											Schedule C-1

						Jan		Feb		Mar		Apr			May		Jun			Jul		Aug		Sep		Oct	Nov	Dec

		Net profit [per Income Statement]				134,937		136,630		137,824		139,018			140,162		140,175			141,369		142,063		142,757		143,450	144,144	(447,041)
		Add:
			Depreciation			1,833		1,833		1,833		1,833			1,833		1,833			1,833		1,833		1,833		1,833	1,833	1,833
		Less:
			Increase in receivables ( – )			(1,750,000)		(3,238)		(3,238)		(3,238)			(3,238)		(3,238)			(3,238)		(3,238)		(3,238)		(3,238)	(3,238)	(3,238)
			Increase in inventory ( – )			(2,593,548)		(9,596)		(9,596)		(9,596)			(9,596)		(9,596)			(9,596)		(9,596)		(9,596)		(9,596)	(9,596)	(9,596)
		Add:
			Increase in accts payable			690,050		2,544		2,544		2,544			2,594		2,544			2,544		2,544		2,544		2,544	2,544	4,544
		Total cash from operations				(3,516,728)		128,174		129,368		130,561			131,755		131,719			132,913		133,606		134,300		134,994	135,688	(453,497)


			Office equipment			(60,000)
			Computer network			(10,000)
			Other depreciable assets			(40,000)
		Total cash for investment				(110,000)		0		0		0			0		0			0		0		0		0	0	0


			Capital paid in by owners			3,000,000		85,000		80,000		68,000			55,000		50,000			35,000		20,000		15,000		5,800	5,800	145,000
			Long-term borrowing (repaid)			48,000		0		0		0			0		0			0		0		0		0	0	0
			Short-term borrowing (repaid)			700,000		(200,000)		(100,000)		(100,000)			(100,000)		(100,000)			(100,000)		0		0		0	0	0
		Total cash from financing				3,748,000		(115,000)		(20,000)		(32,000)			(45,000)		(50,000)			(65,000)		20,000		15,000		5,800	5,800	145,000

			Net increase (decrease)			121,272		13,174		109,368		98,561			86,755		81,719			67,913		153,606		149,300		140,794	141,488	(308,497)

			Cash – beginning balance			0		121,272		134,445		243,813			342,374		429,130			510,848		578,761		732,367		881,668	1,022,461	1,163,949
			Cash – ending balance			121,272		134,445		243,813		342,374			429,130		510,848			578,761		732,367		881,668		1,022,461	1,163,949	855,452

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Marketing Plan-Budget of AT&T Sync Phone

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