Financial Analysis

Our DIY’s business structure is in the form of partnership and we have raised $500,000 as for the working capital, the development of our services, as well as the setting up of the operations. The available fund is contributed equally by the partners and the company has done its financial forecast for the expected revenue and expenses.

As on the commencement of our business, the company initial start-up costs will include $240,000 for 1 year rental, $22,500 for redecoration, and $30,000 for employees’ wages paid monthly. Other fixed costs will include the stationeries, safety insurance, and the depreciation of the company’s machinery and equipment. In addition, variable costs will include $1,500 for advertising, $1,000 for gas and electricity, $500 for telephone, and $200 for internet (see Appendices for the financial figure, price lists and analysis on expected sales).

Based on our forecast, we can assume that our business will suffer losses during the first year of commencement. However, starting from the end of year 2010, our business will reach break-even and start to earn profit each month. In addition, we foresee that there is a sufficient amount of fund provided to get this business started and running. In the future, when there is a requirement for additional funds to expand the company, our company will approach the local bank for a loan.



Sales Prediction for three years