The business that you started in question 1 above has taken off, and the demand for some of your products is growing beyond your ability to source them. You are therefore investigating the possibility of starting to manufacture some of the products under license from the original manufacturers. You do not have more capital to put into the business so you will be approaching potential investors for funding of the expansion. a)

Prepare a business proposal which you will be presenting to the potential investors to attract funding from them. The proposal must include a budget. A monthly budget for 12 months plus a further 2 years.

Income Statement Budget of Wathiqa Omar for the FY2024	Year 1	Total Year 1
Financial Year23	Feb-23	Mar-23	Apr-23	May-23	Jun-23	Jul-23	Aug-23	Sep-23	Oct-23	Nov-23	Dec-23	Jan-24
Revenue	116,385	116,385	116,385	116,385	116,385	116,385	116,385	116,385	116,385	116,385	116,385	116,385	1,396,620
Cost of sales	42,996	42,996	42,996	42,996	42,996	42,996	42,996	42,996	42,996	42,996	42,996	42,996	515,952
Gross profit	73,389	73,389	73,389	73,389	73,389	73,389	73,389	73,389	73,389	73,389	73,389	73,389	880,668
GP%	63%	63%	63%	63%	63%	63%	63%	63%	63%	63%	63%	63%
Overheads:	69,910	59,660	49,910	59,660	49,910	59,660	49,910	59,660	49,910	59,660	49,910	59,660	677,420
Website design	20,000												20,000
Website Maintenance	R 500	R 500	R 500	R 500	R 500	R 500	R 500	R 500	R 500	R 500	R 500	R 500	6,000
Data Costs	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	18,000
Salaries	25,000	25,000	25,000	25,000	25,000	25,000	25,000	25,000	25,000	25,000	25,000	25,000	300,000
Storage cost for products	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	96,000
Local Transportation	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	24,000
International freight costs		10,000		10,000		10,000		10,000		10,000		10,000	60,000
Accountan fees	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	12,000
Security	500	500	500	500	500	500	500	500	500	500	500	500	6,000
Repairs & maintenance	250		250		250		250		250		250		1,500
Insurance	350	350	350	350	350	350	350	350	350	350	350	350	4,200
Taxes	10,810	10,810	10,810	10,810	10,810	10,810	10,810	10,810	10,810	10,810	10,810	10,810	129,720
Net profit	3,479	13,729	23,479	13,729	23,479	13,729	23,479	13,729	23,479	13,729	23,479	13,729