In order for our product to produced we will need a realistic finance plan to ensure that our product goes according to plan. In order for our product to be produced we will require sponsorship. We believe that if we manage to get 10 companies to sponsor us $1000 each we will be able to produce enough capital to cover prduction costs, advertising and marketing costs and also have surplus money left over to create a profit. We have come up with some estimate figures for the costs that our company will under-go in order to sucessfully produce our advertising T-shirt:
- We believe that in order for our T-shirts to be of a good quality they will cost around $40 each, we plan to produce 100 T-shirts so this will bring our total production cost to $4000.
- Internet advertising will be used as one of our main marketing means to ensure that our product is known and becomes sucessful. We believe that our website domain will cost us $600 over the course of the year and our Web hosting costs will be $120 bringing our total expenditure on website marketing to $720.
- Transport has been estimated to cost our business $500 as we will require petrol to drive around to screen printers to see if they are able to produce our product to a high standard. The transport cost also covers and shipping, postage and courier costs that our company may require during the course of our operation.
- Printing posters and other advertising materials will cost our company $200. This cost is essential for our buisness as it helps us ensure that people are aware of our product and that it is being recognised around the community.
- We believe that in order for people to wear our product we need to provide monthly spot prizes as an incentive for people to wear the T shirts. For this reason we have decided to put an estimate of $1000 to cover these costs.
Capital Requirements:
As we are seeking sponsorship we do not require to invest any money into our business at the start. Pretty smart ay :D
Johan contributed the information in this blog.
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