In your group you are the management team of a successful start up business, focusing on...

 

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In your group you are the management team of a successful start up business, focusing on specialist wear for Motorbike riders, sold through the internet. You have survived the first two years and are now generating £40,000 per month in sales, achieving a 30% net profit margin. You expect to grow by 35% a year. The business is also looking to introduce a new line in up-market products, with expected sales to achieve £30,000 in the first months and growing by 50% per annum after the first year. You are looking at moving to larger premises and need to think through the resource implications of doing so, you are also looking to develop a broader range of high end products that you expect to achieve a higher margin of 50%. Identify the resources needed and using your sales forecasts identify what funds you will have generated internally over the next 3 years. Prepare a short report covering the following issues: 1. Sales forecast 2. Identify the resource implications that will be needed to support your growth 3. What would be the key risks you might need to prepare contingencies for? In your group you are the management team of a successful start up business, focusing on specialist wear for Motorbike riders, sold through the internet. You have survived the first two years and are now generating £40,000 per month in sales, achieving a 30% net profit margin. You expect to grow by 35% a year. The business is also looking to introduce a new line in up-market products, with expected sales to achieve £30,000 in the first months and growing by 50% per annum after the first year. You are looking at moving to larger premises and need to think through the resource implications of doing so, you are also looking to develop a broader range of high end products that you expect to achieve a higher margin of 50%. Identify the resources needed and using your sales forecasts identify what funds you will have generated internally over the next 3 years. Prepare a short report covering the following issues: 1. Sales forecast 2. Identify the resource implications that will be needed to support your growth 3. What would be the key risks you might need to prepare contingencies for?

Answer rating: 100% (QA)

Sales forecast for the new lineup next year Year 1 300001215 4500012 ... View the full answer