Every business needs a written financial plan. A written financial plan acts as a roadmap that guides a company towards fulfilling its financial goals (Молчанова, 2020). Potato Craze’s financial plan is as follows:

1. Projected sales

The cost of one bag of Potato Craze chips shall cost $3.00. Within the first month of business, the company expects to sell at least 10,000 bags of potato chips. By the end of the second year of business, the company expects to make sales worth $1,000,000.

2. Personnel overview

The company’s CEO shall receive a total of $5,000 monthly income during the first year. Potato Craze intends to employ an administrative personnel who will receive a monthly salary of $2,000 during the first year. Additionally, the company’s employee responsible for sales and marketing shall be paid $1,800 each month. Additionally, the company shall have 3 productions employees who will receive and average monthly salary of $1,500. Also, the company shall utilize part time employees who will receive an hourly rate of $15.

3. Financing to date

Currently, the business has a total of $95,000. Out of this amount, $30,000 is a loan that was obtained from friends and family. $50,000 was given to the business as a gift by a close relative.

4. Use of funds

The company plans to buy two vans which shall be used to distribute the products. Each van shall cost $15,000. Additionally, the company shall purchase 2 potato chips making machines, each costing $10,000. Potato Craze shall also buy 3 computers each costing $1,400; a printer costing $500 and a task management software costing $500.

5. Breakeven analysis

The average breakeven point for the company during the first year is $146,348. This mean that the company shall have to make sales above $146,348 each month to make profits.

References

Молчанова, С. М. (2020). Elements of the development of the financial plan of the organization. Ответственный редактор, 52.