Year 1 Cashflow:
Assumptions:
-4% growth per month
- Owner’s salaries $2500/ month x 5- for the fist year owners would be expected to live mainly off of either their savings or from other income.
- Rent is based on a warehouse and office complex in North East Calgary
- $2700 for marketing and promotions because we will be focusing on trainers and elite athletes, so we will be using most of the budget to push towards them.
- Delivery and transportation costs would include delivering products to customers, delivering materials to the manufacturer, manufacture to warehouse this will be estimated to amount to $2500/ month
- Supplies are few as they will be office and administration supplies
- Landline and internet
- A guess that will hopefully cover any remaining.
- $2500= $1000 WCB + $1500 other insurance (Source)
- 15% corporate tax rate, 13.1% EI rate. But with no idea of the net income and hours required we will be guessing $1000/month.
- Maintenance was a guess at $1000/month
- $100 a month to cover legal costs as well as any other consulting costs
- $100/ month e-commerce (Source)
- We require flat seam machines, we have found a website that sells refurbished machines for $1000-$4000. We would want to invest in 2 to start with, and depending on sales invest further at later points. Various other fixtures and equipment would be required so we are estimating $5000.
- Some but limited remodeling would be required so $1000.
- Installation would be limited $1500.
- We would have to do an analysis to determine how much inventory to start with, as well we would have to determine how finalized our product prototype is. $5000 is our estimate.
- $1000 for legal incorporation
- $1000 for other licenses and requirements.
- We would have minimal promotional start up fees
- A/R- 0
- We would want to maintain a minimum cash balance to ensure we could cover all costs.
- $1000 would be put toward miscellaneous other start up expenses.
Cash Required To Start NYX Resistance:
Adaptions for Supply Chain Considerations:
We did already take into consideration the cost of delivery which would remain the same for year one, but after year one we maybe moving the manufacturing overseas which increase the cost of shipping. Plus we are currently accounting for an office and warehouse that would allow for manufacturing within the space; if we were to move manufacturing overseas we may be able to adapt our warehouse space.
A major aspect we would have to adapt would be our cash flow and accounts payable. We would have to ensure to fully utilize our accounts payable because we have to account for the fact we will be receiving materials but it will take 5 days to get the product to the customer. We then have to take into account that customers may be paying with credit. These aspects will greatly effect our cashflow. We would also like to always predict on the conservative side to ensure we are always prepared.