Financial, human and physical resource requirements

Start-up Requirements summary

Start-up Requirements Summary

Start-up expenses

• Legal $2500
• Stationery $1500
• Insurance $2000
• Rent deposits $25000
• Website development $10000
• Recruitment $10000
• Software and hardware $25000
• Marketing and advertisements $20000
• Total Start-up expenses $96000
• Start-up assets Cash required $100000
• Other current assets $25000
• Long-term assets $150000
• Total assets $275,000
• Total requirements $371,00

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Expected costs, profits and sales

As the organisational pricing strategy, Online Media Solutions will charge for its services on an hourly basis.

Expected costs to develop products and services

Following are the expected costs associated with the production and delivery of its products and services:

Expected costs for its products and services:

o Labour cost: $35/hour

o Indirect costs: $40/hour

Expected time to develop its products: 10-15 hours.

Expected sales and profits: ----

We are projecting sales of $800,000 by the end of the current year and $1.2 million in next year. We expect to attain a net profit of 18% in the current and 30% in the next year.

The majority of the expenses will be salaries, contractor payments, operating and office expenses.

Expense Summary:

Salaries will be 33% of the total expenses.

Contractor payments will be 20% of the total expenses.

Operating and office expenses will be 47% of the total expenses

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Financial Highlights by Year

Revenue Expenses & Costs Net profit Net loss $2M $1.5M $1M $500K SO 2021 2022 2023\f$80K $60K $40K Direct Costs Expenses $20K $0 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec