(BRAND)
(OVERVIEW)
(tac) will generate revenue from customer purchases of our products. Using a lean approach to launch and develop operations, (tac)’s first-year income statement illustrates a profit margin of at least fifty-eight percent, with a net income of $11,190 after taxes. Our monthly break-even point will equal no less than $20,651 in total monthly sales. We project our annual profits to reach $169,084 by year three.
Based on sales of clothing and other merchandise, (tac)’s first-year sales are projected to be $245,322, and we expect sales to surpass $1,156,400 by the end of year three. We will achieve month-to-month profitability within the first year.
Click below to learn more about our funding requirements, uses, projections and assumptions.
(tac) will need an investment of $217,556 to launch. We are currently seeking funding from outside investors and business loans.
At this time we have raised $XX,XXX in equity capital and an additional $XX,000 for a specific-use grant. The owner, Rebecca Tantillo has invested $40,000.
We are seeking investors for an additional $XXX,000 in equity investment and $XX,000 in loans.
(INVEStMENT)
(NPV Calculation)
Based on an initial investment of $217,556, (tac) can generate an Net Present Value (NPV) of $320,339 with an Internal Rate of Return (IRR) of 39 percent.
With an acquisition cost based on sales and marketing costs, (tac) can maintain an average SG&A costs of 34 percent, allowing (tac) to generate strong profits. A breakdown of the costs associated with the SG&A calculation are depicted in the table below.
It is important to note that certain costs below, such as those associated with labor and maintenance, are variable costs that increase incrementally based on the expected growth of the organization.
Click below to view our NPV calculations and Sensitivity Analysis.