Company x USA, Inc. Business Plan
Company X USA, Inc. Business Plan
May, 2010
1
Company x USA, Inc. Business Plan
- Table of Contents - 1.0 Executive Summary
1.1 Objectives
1.2 Mission
1.3 Keys to Success
2.0 Company Description
2.1 Company Profile in Japan
2.1 Company Profile in US
3.0 Product
3.1 Product Description
3.2 Product Features
3.3 Competitive Comparison
3.4 Product Line-up
3.5 Present Sales Situation
3.6 Inputtool Sales Performance Chart
3.7 Sales Literature
4.0 Market Analysis
4.1 Market Demand
4.2 Target
4.3 Market Demand
2
Company x USA, Inc. Business Plan
4.4 Market Trends
4.5 Competition and Buying Patterns
4.6 Market Positioning
4.7 Strong Points - Products and Company
5.0 Sales Strategy
5.1 Who We Will Target
5.1.2 Methods of Promotion/Strategy in an Expanding Market
5.2 Value Proposition
6.0 Financial Analysis
6.1 Financial Goals
6.2 Starting Cost
6.3 (The following 6.4) Table details
6.4 Financial Analysis Table
8.5 Solutions to Financial Problems
7.0 Schedule Table
3
1.0 Executive Summary
Company X, Inc. is a for-profit business venture based in [redacted], Japan. We have been in operation and enjoying steady growth since our establishment by [redacted] in 1998.
Our company specializes in software and hardware development and sales of our most innovative product, the Inputtool. We are also engaged in the service and maintenance of
software solutions for a wide-range of customers. Company X has consistently provided our customers with a high quality product at a reasonable price, and these facts are
reflected in the stability and consistency of our growth, as well as a high rate of customer satisfaction. The Inputtool is the product we are most excited about, a device that
collects and inputs digital measurement information easily into the user’s preferred digital technology. The software is user-friendly, and built according to the highest possible
standards. Company X is continually acquiring new customers, and we feel that we can make our presence felt in the American market, that there is a profitable niche, and it has
our name on it. We believe we can capture at least 10% of the long-term market during the next four years.
1.1 Objectives
Our objectives are as follows:
1. Complete the VISA application process by the end of June or beginning of July, and hit the ground running immediately thereafter.
2. Create a monthly profit of at least $10,000 within five years.
3. Increase the number of employees to at least six.
4. Through our already existing business relationships, grow our influence in the Oregon business community and with an aggressive marketing campaign, capture at least 10%
of our market niche within four years.
5. The continual solicitation of new customers and the deepening of business relationships in the Oregon business community.
1.2 Mission
Company X is a software and hardware development, manufacturing and resale company that produces high quality, value-added, feature enriched, user-friendly products and
delivers sincere customer support. With a highly efficient and visionary management team responsible for a solid history of consistent growth, market knowledge and product
improvement, we are sure to deliver a long-term profit and top placement in an expanding market niche. Our mission is to provide the consumer with the best possible product at a
reasonable price, and we are in a unique position to ensure that this happens with every order to Company X.
1.3 Keys to Success
The keys to success at Company X are:
1. Aggressive marketing to introduce distributors, retailers and customers to our product.
2. The continuation of a highly valued relationship with our business partner, Company Y.
3. Product quality, ease of operation, world class customer service and support.
4. Price competitiveness.
5. Market knowledge, sales expertise and effective management.
2.0 Company Description
2.1 Company Profile in Japan (referred to as COMPANY X JPN)
Company Name Company X Co., Ltd.
Business Services PC software development, hardware sales/maintenance, various interface development, manufacturing, sales
Address 157-39 Komatsu-Kaisaku Suo-Ohshima Ohshima Yamaguchi, Japan 742-2105
Phone (81)820-74-3887 Fax (81)820-74-2187
URL http://www.orangehousejapan.com/
Established In September, 1976 Incorporated in June, 1988
Capital 20,000,000 Yen Bank Yamaguchi Bank, Ohshima Branch
Company Representative CEO [redacted] Number of employees7 (May, 2010)
2.1 Company Profile in US (referred to as COMPANY X)
Company Name Company X USA, Inc.
Business Services PC software, hardware sales/maintenance, various interface sales
Address [redacted]
Phone [redacted] Fax [redacted]
URL http://www.orangehousejapan.com/
Incorporated in April, 2010
Capital $20,000 Bank [redacted]
Company Representative [redacted], President Number of employees [redacted] (May, 2010)
3.0 Product
3.1 Product Description
Inputtool: The Inputtool is a device capable of reading in to a personal computer measurement values from a digital measurement tool as a data document, leaving an
automatically input record. Until recently, due to the fact that measured values were managed by visual inspection, inputting and input mistakes took an
enormous amount of time and energy. With the use of an Inputtool, data processing and labor time has shrunk, and a reduction in mistakes has become
possible. The Inputtool has been designed to efficiently connect and output digital data in Digimatic format from a variety of measurement tools to
computers and personal digital assistants, with the capability for automatic input. This format, created by Company X Corporation, outputs standardized
data from the measurement tool. Our Inputtool is compatible with this format and also with non-Digimatic measurement tools from other manufacturers.
3.2 Product Features
・The Inputtool is fully compliant with the European Union’s Restriction of Hazardous Substances Directive (RoHS Web site: http://www.rohs.gov.uk/)
・USB - IF certified compliant - Our products have passed this USB compliance program
・For the USB series, dedicated software and drivers are not necessary
・Our products are easy to use and connect to a PC
・For the C series, multiple measurement tools can be connected
・Operates with a conveniently interchangeable SPC cable
3.3 Competitive Comparison
-A Similar Product MarConnect USB Interface "Data Connection Cable" by Mahr Co. (Germany)
3.4 Product Lineup
Inputtool USBIW-B012U IW-B014UT IW-BM012U IW-BM012UTB IW-C012U5 IW-C012U10
Mahr Products’ MarConnect USB Interface has quite similar features to the Inputtool. The MarConnect USB interface also reads inputted data from Mahr brand measurement tools and transfers it to a PC. Mahr's market share is mainly European. Our company is able to provide the Inputtool for just 10,290 Yen, while the Mahr product is 18,500 Yen in Japan. See more under Competition and Buying Patterns, 4.5.
13,335 Yen (tax included) Approx. € 200 10,290 Yen (tax included) 13,335 Yen (tax included) 39,900 Yen (tax included) 59,850 Yen （tax included)
(Sold by Mitutoyo) Measurement
values are input once the data
button is pressed.
With a similar look and design
as the IT-012U, data is actually
input using ten-key code.
Geared toward the European
market through Mitutoyo.
Classic model (IT-012U) now
with a stainless steel case and
reduced size. The button is now
larger and easier to press.
A product geared for the web.
Measured values are entered
with TAB.
Five measurement tools can be
connected and used at the same
time. Data is entered by pressing
the appropriate switch on the
device itself.
Ten measurement tools can be
connected and used at the same
time. Intended for users of
multiple measurement tools.
Inputtool RS-232C Inputtool DOS/V
IW-B007R IW-BM007R IW-BM007RS IW-C007R5 IW-C007R10 IW-B005D
25,200 Yen (tax included) 25,200 Yen (tax included) 28,350 Yen (tax included) 68,250 Yen (tax included) 89,250 Yen (tax included) 10,395 Yen (tax included)
(Sold by Mitutoyo)Our classic
resin case model.
Classic model (IT-012U) now
with a stainless steel case and
reduced size. The button is now
larger and easier to press.
For use with sequencers. With
the addition of a power adaptor,
an external power source can
now be supplied.
Five measurement tools can be
connected and used at the same
time. With setup on a PC or on
the device main unit, multiple
input methods are possible.
Ten measurement tools can be
connected and used at the same
time. Connect many
measurement tools, various
automatic measurements are
possible.
(Sold by Mitutoyo)With resin
case. Measurement data entered
with just a press of the data
button.
AccessoriesIW-SF202 IW-SF102 IW-ST102 IW-SC102
8,400 Yen (tax included) 4,200 Yen (tax included) 3,150 Yen (tax included) 1,470 Yen (tax included)
High Endurance Footswitch Standard Footswitch Thumbswitch General Purpose Switch Cable
3.5 Present sales situation
The Inputtool has already made its presence known on the US market. Here are just a few example websites that sell the Inputtool. In addition to these, there are many other online
stores selling the Inputtool. It is also being sold outside of the US market: Europe, Asia, South America and other countries. The recent increase in number of this type of website
on the internet and their success is a definite contributor to and a positive indicator of an increased demand for the Inputtool and related devices.
3.6 Inputtool Sales Performance Chart
（Price unit: 1,000Yen）
Type 005D 006N 007R
Zaurus
* winCE* PDA* 012U 014UT Yearly total
Year # Sold Price # Sold Price # Sold Price # Sold Price # Sold Price # Sold Price # Sold Price # Sold Price # Sold Price
1998 3,947 15,709 896 4,032 510 3,738 500 4,500 5,853 27,979
1999 1,979 7,876 491 3,599 2,470 11,475
2000 1,000 3,980 490 2,205 991 7,264 2,481 13,449
2001 4,000 15,920 2,500 18,325 6,500 34,245
2002 3,290 13,032 1,995 14,224 210 1,914 5,495 29,170
2003 3,200 12,032 500 2,950 40 220 2,610 12,600 6,350 27,802
2004 4,800 17,088 3,500 17,700 4,500 21,825 12,800 56,613
2005 2,000 7,120 500 2,950 90 353 6,000 29,100 500 2,425 9,090 41,948
2006 2,000 7,120 3,000 17,700 6,500 31,525 1,500 7,275 13,000 63,620
2007 2,000 7,120 4,000 22,760 7,000 33,950 2,000 9,700 15,000 73,530
2008 2,000 11,380 24 1,200 7,000 33,950 1,000 4,850 10,024 51,380
2009 1,000 5,690 7,000 33,950 500 2,425 8,500 42,065
2010 1,000 3,940 2,000 11,380 6,500 31,525 1,000 4,850 10,500 51,695
Cumulative
total** 29,216 110,937 1,386 6,237 22,987 139,660 500 4,500 250 2,134 114 1,553 47,110 228,425 6,500 31,525 108,063 524,971
* 006N, Zaurus, winCE, and PDA are no longer sold
** Cumulative total for 2010 is from January 1 through July 1
3.7 Sales Literature
4.0 Market Analysis
4.1 Market Demand
The measurement process is vital to almost every manufacturing operation in existence. It is an integral part to many business ventures. This of course includes the automobile
industry, making the Inputtool potentially very valuable to many companies.
When a tire or automobile manufacturer needs to measure tread depth, he or she will most likely go with a product that helps decrease human error, shortens work time and measures
accurately. This is exactly what the Inputtool does better than the competition.
4.2 Target Business
Not only large-scale enterprises, but also small to medium size companies are attractive candidates.
- Manufacturers of vehicles, paper, steel, tires, conductors, machinery parts and cable
- Educational institutions; especially those with laboratories (dental schools, chemistry and physics labs; technological labs, woodshops, vocational training centers, etc.)
- Those that carry out product inspection, quality control; housing and building construction and contracting, goods transport
- Businesses associated with agriculture, timber, natural resources, forestry, forestry management and fisheries
- Any business or industry that routinely makes precise measurements
4.3 Market Demand
- Accuracy and precision
- Ease of operation
- A reasonable price
4.4 Market Trends
- A complete introduction of the Inputtool to a large percentage of consumers will likely take time, but once we have penetrated the market and move closer to maximum capacity
and more consumers know or hear of the quality of our product and their usefulness, we are sure to gain repeat customers. We anticipate the subsequent spread in similar
markets to other companies and customer bases. We also hope to eventually reduce transactions with wholesalers and capture their value-added costs as profit. We anticipate
that this effort will begin approximately three years into operation of this new venture.
4.5 Competition and Buying Patterns
- Mahr Corporation’s MarConnect USB Interface “Data Connection Cable”
Mahr (Germany): Market share: approximately 60% of European markets
Price: 18,500 Yen
Target: Manufactures that are mainly in Europe proper - this overseas sales price tends to skew high
4.6 Market Positioning
4.7 Strong Points- Products and Company
*Product
・The major difference between our products and Mahr products is that theirs is fused into one unit. The disadvantage is that the cable between Mahr’s measurement tool and the
device body is non-detachable.
・On the other hand, Company X Inputtools are not composed into one unit. This creates the opportunity for many types of connecting cable attachment, all interchangeable. Mahr
and Mitutoyo products require specified Inputtools depending on each cable connector type. This can be quite costly and wasteful, as many customers who already have cable
do not want or need to spend the extra money, especially in today’s unpredictable economy. ・Another setback suffered by Mahr products is that they do not enjoy compatibility
with other measurement tools. Our Inputtool can be much more profitable because our products have compatibility with Mitutoyo products and its US subsidiaries. This is a well-known brand with a good reputation in the U.S., Europe and Asia. By maintaining relationships with this established corporation, we have an already open alternative market with existing distribution channels.
*Experience
*Costsetting
・We strive to provide high quality at a low price.
- We strive to provide a lower price than both Mahr and Company Y.
- The reason we have enjoyed a 12 year history selling the Inputtool is that the quality of our product is extremely high.
5.0 Sales Strategy
5.1 Who we will target
*Wholesalers and distributors
* Retailers and end-users
・Company X has been successfully selling the Inputtool since 1998 through Company Y as an OEM supplier, in addition to our own direct sales.
- We have gained much knowledge about customer needs, pricesetting, and products.- Consumers have consistently shown trust in our products. -We enjoy top sales in Japan.
- Our products are environmentally friendly.
5.1.2 Methods of Promotion/Strategy in an Expanding Market
- Participation in trade shows
IMTS: International Machine Tool Show; participation in trade shows so as to inform the public in regards to the activities of COMPANY X and what we provide.
Opportunities for marketing, networking and the establishment of new business contacts.
* 2010: Participated in the IMTS (Chicago, Illinois), and researched other companies’ products, activities, pricing, trends and markets
* 2011: We also plan to maintain a presence
- Magazine/Newspaper approach
SME (Society of Manufacturing Engineers)
* Ads run in the magazine publication, Manufacturing Engineering
* Ads also have been run since 2009 in Japanese economic periodicals and regional newspapers, and we plan to run a similar ad campaign in US publications
* We plan to integrate marketing in print format as part of our long-term marketing strategy
- Approach as Mitutoyo distributors in the U.S.
*We plan to at least partially follow in the footsteps of this corporation, whom with our relationship is firmly established
*Company X plans to continue this relationship in practice through sales promotion, distribution, wholesale and dealing in Company Y products
- Internet Marketing and Sales
*Currently, Company X Japan is working on a new commercial website in Japanese, with an English version to be worked out soon after
*Company X is also in the process of setting up eBay and Amazon online stores to provide additional sales
5.2 Value Proposition
Company X’s competitive advantage comes from several angles. The first is that we have a superior product, and are able to position ourselves firmly here in the US in an
expanding market. The second important fact is that we have an established relationship with successful large business and are able to reap benefits from it in the form of
security and a business model that is worth proven to be worth following.
- Initial price
* The initial selling price from Company X Japan (60% of list price)
- Sales Price * Direct purchasing from COMPANY X to US customers: this will typically
be at the list price * Shopping from commercial websites (to be opened in the coming few
months): min 5% - max 35% discount sales * COMPANY X JPN/COMPANY X will be putting a great deal of effort into
selling items as part of a set, to provide customers with the feeling of buying at a value
ex: Inputtool list prices - IW-B012U: 12,700 (Yen) Initial selling price - 7,620 (Yen)
IW-B007R: 24,000 14,400
IW-B005D: 9,900 5,940
IW-BM012U: 9,800 5,880
IW-BM012UTB: 9,800 5,880
IW-BM007R: 24,000 14,400
IW-BM007RS: 27,000 16,200
IW-C007R5: 65,000 39,000
IW-C007R10: 85,000 51,000
6.0 Financial Analysis
6.1 Financial Goals
- Top priority - COMPANY X, Inc.’s monthly profit is to reach $10,000 within five years
- Increase the number of employees to at least six
6.2 Startup Cost
$6,000 (as of May, 2010)
- Lawyer fees and VISA application: $5,000
- Office lease: $1,000
6.3 Financial Analysis Details (refers to Table 6.4, below)
Sales Goals
- Products: A: Inputtool BM series
B: Inputtool C series
C: Other devices
- Total sales: sales of A, B and C
- Gross margin: Total cost－Initial cost
Expenses
- Initial cost: the initial selling price through COMPANY X JPN (60% of list price)
a. Employee expenses: A: example
B: example
C: example
b. Office lease
c. Postage, phone, internet expenses
d. Transportation expenses
e. Housing expenses
f. Shipping fees (5% of the monthly total sales)
g. Other/Miscellaneous
- Total (expenses)= Initial cost + a+b+c+d+e+f+g
- Profit= Gross margin－Total expenses
6.4 Financial Analysis Table
2010 1 (Jan) 2 3 4 5 6 7 8 9 10 11 12 Total
products A 3,000 3,000 3,000 4,000 4,000 4,000 21,000
products B 1,000 1,000 1,000 1,500 1,500 1,500 7,500
products C 1,000 1,000 1,000 1,500 1,500 1,500 7,500
sales Total 0 0 0 0 0 0 5,000 5,000 5,000 7,000 7,000 7,000 36,000
initial cost 60% 0 0 0 0 0 0 3,000 3,000 3,000 4,200 4,200 4,200 21,600
gross margin 0 0 0 0 0 0 2,000 2,000 2,000 2,800 2,800 2,800 14,400
employees A 2,000 2,000 2,000 2,000 2,000 2,000 12,000
expenses B 0
C
expenses office 500 500 500 500 500 500 500 500 4,000
postage 150 150 150 150 150 150 150 150 1,200
transportation 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 8,000
housing 500 500 500 500 500 500 500 500 4,000
shipping 0 0 0 0 0 0 250 250 250 350 350 350 1,800
other 100 100 100 100 100 100 100 100 800
Total 0 0 0 0 2,250 2,250 4,500 4,500 4,500 11,600 4,600 4,600 31,800
Profit 0 0 0 0 -2,250 -2,250 -2,500 -2,500 -2,500 -8,800 -1,800 -1,800 -17,400
2011 1 2 3 4 5 6 7 8 9 10 11 12 Total
products A 5,000 5,000 5,000 6,000 6,000 6,000 7,000 7,000 7,000 8,000 8,000 8,000 78,000
products B 1,500 1,500 1,500 2,000 2,000 2,000 3,000 3,000 3,000 3,000 3,000 3,000 28,500
products C 1,500 1,500 1,500 2,000 2,000 2,000 3,000 3,000 3,000 3,000 3,000 3,000 28,500
sales Total 8,000 8,000 8,000 10,000 10,000 10,000 13,000 13,000 13,000 14,000 14,000 14,000 135,000
initial cost 60% 4,800 4,800 4,800 6,000 6,000 6,000 7,800 7,800 7,800 8,400 8,400 8,400 81,000
gross margin 3,200 3,200 3,200 4,000 4,000 4,000 5,200 5,200 5,200 5,600 5,600 5,600 54,000
employee A 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
expenses B 1,800 1,800 1,800 1,800 1,800 1,800 10,800
C
expenses office 500 500 500 500 500 500 500 500 500 500 500 500 6,000
postage 160 160 160 160 160 160 160 160 160 160 160 160 1,920
transportation 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 13,200
housing 500 500 500 500 500 500 500 500 500 500 500 500 6,000
shipping 400 400 400 500 500 500 650 650 650 700 700 700 6,750
other 100 100 100 100 100 100 100 100 100 100 100 100 1,200
Total 4,760 4,760 4,760 4,860 4,860 4,860 6,810 6,810 6,810 6,860 6,860 6,860 69,870
Profit -1,560 -1,560 -1,560 -860 -860 -860 -1,610 -1,610 -1,610 -1,260 -1,260 -1,260 -15,870
2012 1 2 3 4 5 6 7 8 9 10 11 12 Total
products A 10,000 10,000 10,000 12,000 12,000 12,000 13,000 13,000 13,000 14,000 14,000 14,000 147,000
products B 2,000 2,000 2,000 3,000 3,000 3,000 3,500 3,500 3,500 4,000 4,000 4,000 37,500
products C 2,000 2,000 2,000 3,000 3,000 3,000 3,500 3,500 3,500 4,000 4,000 4,000 37,500
sales Total 14,000 14,000 14,000 18,000 18,000 18,000 20,000 20,000 20,000 22,000 22,000 22,000 222,000
initial cost 60% 8,400 8,400 8,400 10,800 10,800 10,800 12,000 12,000 12,000 13,200 13,200 13,200 133,200
gross margin 5,600 5,600 5,600 7,200 7,200 7,200 8,000 8,000 8,000 8,800 8,800 8,800 88,800
employee A 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
expenses B 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 21,600
C 0
expenses office 500 500 500 500 500 500 500 500 500 500 500 500 6,000
postage 170 170 170 170 170 170 170 170 170 170 170 170 2,040
transportation 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
housing 500 500 500 500 500 500 500 500 500 500 500 500 6,000
shipping 700 700 700 900 900 900 1,000 1,000 1,000 1,100 1,100 1,100 11,100
other 100 100 100 100 100 100 100 100 100 100 100 100 1,200
Total 6,970 6,970 6,970 7,170 7,170 7,170 7,270 7,270 7,270 7,370 7,370 7,370 86,340
Profit -1,370 -1,370 -1,370 30 30 30 730 730 730 1,430 1,430 1,430 2,460
2013 1 2 3 4 5 6 7 8 9 10 11 12 Total
products A 15,000 15,000 15,000 16,000 16,000 16,000 17,000 17,000 17,000 18,000 18,000 18,000 198,000
products B 4,000 4,000 4,000 4,000 4,000 4,000 5,000 5,000 5,000 5,000 5,000 5,000 54,000
products C 4,000 4,000 4,000 4,000 4,000 4,000 5,000 5,000 5,000 5,000 5,000 5,000 54,000
sales Total 23,000 23,000 23,000 24,000 24,000 24,000 27,000 27,000 27,000 28,000 28,000 28,000 306,000
initial cost 60% 13,800 13,800 13,800 14,400 14,400 14,400 16,200 16,200 16,200 16,800 16,800 16,800 183,600
gross margin 9,200 9,200 9,200 9,600 9,600 9,600 10,800 10,800 10,800 11,200 11,200 11,200 122,400
employee A 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
expenses B 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 21,600
C 1,800 1,800 1,800 1,800 1,800 1,800 10,800
expenses office 500 500 500 500 500 500 800 800 800 800 800 800 7,800
postage 180 180 180 180 180 180 180 180 180 180 180 180 2,160
transportation 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 15,600
housing 500 500 500 500 500 500 500 500 500 500 500 500 6,000
shipping 1,150 1,150 1,150 1,200 1,200 1,200 1,350 1,350 1,350 1,400 1,400 1,400 15,300
other 100 100 100 100 100 100 100 100 100 100 100 100 1,200
Total 7,530 7,530 7,530 7,580 7,580 7,580 9,830 9,830 9,830 9,880 9,880 9,880 104,460
Profit 1,670 1,670 1,670 2,020 2,020 2,020 970 970 970 1,320 1,320 1,320 17,940
2014 1 2 3 4 5 6 7 8 9 10 11 12 Total
products A 19,000 19,000 19,000 19,000 19,000 19,000 20,000 20,000 20,000 20,000 20,000 20,000 234,000
products B 5,000 5,000 5,000 5,000 5,000 5,000 6,000 6,000 6,000 6,000 6,000 6,000 66,000
products C 5,000 5,000 5,000 5,000 5,000 5,000 6,000 6,000 6,000 6,000 6,000 6,000 66,000
sales Total 29,000 29,000 29,000 29,000 29,000 29,000 32,000 32,000 32,000 32,000 32,000 32,000 366,000
initial cost 60% 17,400 17,400 17,400 17,400 17,400 17,400 19,200 19,200 19,200 19,200 19,200 19,200 219,600
gross margin 11,600 11,600 11,600 11,600 11,600 11,600 12,800 12,800 12,800 12,800 12,800 12,800 146,400
employee A 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 26,400
expenses B 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 22,800
C 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 22,800
expenses office 800 800 800 800 800 800 800 800 800 800 800 800 9,600
postage 190 190 190 190 190 190 190 190 190 190 190 190 2,280
transportation 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 16,800
housing 500 500 500 500 500 500 500 500 500 500 500 500 6,000
shipping 1,450 1,450 1,450 1,450 1,450 1,450 1,600 1,600 1,600 1,600 1,600 1,600 18,300
other 100 100 100 100 100 100 100 100 100 100 100 100 1,200
Total 10,440 10,440 10,440 10,440 10,440 10,440 10,590 10,590 10,590 10,590 10,590 10,590 126,180
Profit 1,160 1,160 1,160 1,160 1,160 1,160 2,210 2,210 2,210 2,210 2,210 2,210 20,220
6.5 Financial Problem Solution
- According to our business plan, the first and second years will be in the red. This deficit will be covered by COMPANY X JPN as an increase in capital or the paying of trust
money as market development. COMPANY X JPN will do everything in its power to keep Company X’s losses to a minimum, and losses shall be turned into profits as soon as
possible.
7.0 Schedule Table (May, 2010 – April, 2013)
Month 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4
VISA
Application
Sales (=Income)
Marketing
development
Trade Show
Magazine Ads
Employment
Increase
Online Sales
Tax Matters
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