Sta tart- t-up, or not? t? Module 5 Module 5
START-UP? START-UP? Bu Business Id Idea 3. 3. Is Is it t worth th it? t?
START-UP? START-UP? Is it Is t worth th it? t? Bu Business Id Idea Reve venue > Costs ts
START-UP? START-UP? Is it Is t worth th it? t? Cost t Str tructu ture • Variable Variable • Fi Fixe xed / ove verheads
START-UP? START-UP? Is it Is t worth th it? t? Variable Cost t Vary y proporti tionate tely y with th th the vo volume of acti tivi vity: ty: • Goods sold Goods sold • Servi vices rendered • Goods produced Goods produced Measured per unit t of sales or producti tion
START-UP? START-UP? Is it Is t worth th it? t? Variable Cost t Exa xamples • Fi Finished product t • Raw mate terial • Components ts • Pa Packaging • Consumables Consumables • Direct t labour - skilled, semi-skilled, unskilled • Pi Piece-rate te labour • Contr tracto tors fees • Commission Commission • Delive very y costs ts
START-UP? START-UP? Is it Is t worth th it? t? Fi Fixe xed Cost t Remains fixe xed regardless of th the vo volume of acti tivi vity ty Measured per period Measured per period
START-UP? START-UP? Is it Is t worth th it? t? Fixe Fi xed Cost t Exa xamples In Indirect t Direct t • Pr Producti tion facility ty renta tal • Office /warehouse renta tal • Pr Producti tion labour • Administr trati tion • Electr tricity ty & wate ter • Bo Bookkeeping / accounti ting / audit t • Depreciati tion of dedicate ted machine • Consumables Consumables • Compute ters • In Insurance • Marketi ting • Moto tor ve vehicles • Salaries & wages Salaries & wages • Telephone Telephone • Transport t • Trave vel
Is it Is t worth th it? t? START-UP? START-UP? Variable Cost t Bu Budget t Variable Cost per Unit Trade Trade Purchase price 300 Delivery cost 10 Import duties 45 Other - Total 355
Is it Is t worth th it? t? START-UP? START-UP? Variable Cost t Bu Budget t Service Cost per Unit Servi vice Direct Labour Level Rate Hours Discard labour Discard labour Skilled 450 2 900 on yo your payr yroll Unskilled 150 4 600 Consumables Type Cost Units Lubricant 30 2 60 Rags 3 5 15 Transport 4 35 140 Other Total 1 715
Is it Is t worth th it? t? START-UP? START-UP? Variable Cost t Bu Budget t Product Cost per Unit Manufactu turing Direct Material Type Cost Units kgs lts ea Direct Labour Level Rate Hours Discard labour Discard labour Skilled on yo your payr yroll Semi skilled Unskilled Consumables Type Cost Units Overheads Dedicated depreciation Measurable water & electricity Labour Total
Is Is it t worth th it? t? START-UP? START-UP? Variable Cost t Bu Budget t Thermosiphon Flat plate Indirect Collector ST300 2 500 Insta In talled solar wate ter heate ter Hangerbolts HS-S01 x 2 150 Geyser S300ID 3 500 Cradle JBM300 250 Numbers shown are purely hypothetical Trade Trade DB board Timer DBT001 500 Expansion tank Exptnk2L 150 Redsol x 4 GLY001 x 4 300 Tempering valve TV22HP 150 Lagging LAG001 x 3 100 Product cost ex VAT 7 600 Installation Labour ex VAT 1 000 Installation Bill of Material ex VAT 1 000 Plumbing CoC ex VAT 500 Servi vice Electrical CoC ex VAT 500 Selling cost & Commission ex VAT 1 000 Travel & transport ex VAT 500 Total Cost ex VAT 12 100
Is it Is t worth th it? t? START-UP? START-UP? Ove verhead Cost t Bu Budget t Overhead Expenses Monthly Accounting and audit 4 000 Computer expenses 500 Depreciation 2 500 Directors fees 125 000 Electricity & water 5 000 Insurance 4 000 Repairs & Maintenance 2 000 Motorvehicle - license, fuel maintenance 4 000 1 500 Rent 40 000 Salaries & wages 60 000 Tools 500 Telephone 8 500 Travel 2 500 Total 260 000
Is Is it t worth th it? t? START-UP? START-UP? Y1.04 Id Idea Descripti tion ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Is it Is t worth th it? t? START-UP? START-UP? Profita Pr tability ty Revi view Profitability review Sales price per unit VP cost per unit Gross Profit per unit Units sold Gross Profit for period Overhead cost for period Net Profit for period
Is it Is t worth th it? t? START-UP? START-UP? Pr Profita tability ty revi view Profitability review Numbers shown are purely hypothetical Sales price per unit 12 000 VP cost per unit 9 000 Gross Profit per unit 3 000 Units sold 135 Gross Profit for period 405 000 Overhead cost for period 260 000 Net Profit for period 145 000
Is Is it t worth th it? t? START-UP? START-UP? Y1.04 Id Idea Descripti tion ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
START-UP? START-UP? Business Id Bu Idea 3. 3. Is Is it t worth th it? t? More th than numbers
the need? START-UP? START-UP? Can yo you fullfill th Lessons Learnt t • Cost t Str tructu ture • Pr Profita tability ty • Moti tiva vato tors
START-UP? START-UP? Checklist t 1. 1. Is Is th there a genuine need? ✓ 2. 2. Can yo you fulfil it? t? ✓ 3. 3. Is Is it t worth th it? t? ✓ 4. 4. Do yo you have ve what t it t ta takes?
THANK YOU T o l e a r n m o r e a b o u t t h e t o o l s u s e d , v i s i t w w w . s t r a t e g y z e r . c o m w w w . g r o w t h w h e e l . c o m
Recommend
More recommend
