Business Plan 2019 Final Version

Business plan
[Sleep-optic]
Location [Venlo]
Date [27.05.2019]
Written by [First name and [Student number] [E-mail address]
surname]
Paul Glunz 3579603 p.glunz@student.fontys.nl
Daniel Rodriguez d.fronth@student.fontys.nl
Dalia Sorocean dalia.sorocean@student.fontys.nl
Business plan for my business X © 2015 Noordhoff Uitgevers bv
Table of contents
Business plan..............................................................................................................................1
1 Company.............................................................................................................................2
1.1 The entrepreneur(s).....................................................................................................2
1.2 Business data...............................................................................................................2
1.3 The product.................................................................................................................2
1.4 Mission and goals.......................................................................................................3
1.5 Business premises.......................................................................................................3
1.6 Legal form...................................................................................................................3
1.7 Authorities...................................................................................................................4
1.8 Insurance.....................................................................................................................4
2 The market..........................................................................................................................5
2.1 Trade sector analysis...................................................................................................5
2.2 Customer analysis.......................................................................................................5
2.3 Competitors analysis...................................................................................................5
2.4 Supplier analysis.........................................................................................................6
2.5 Distribution analysis...................................................................................................6
2.6 Environmental analysis...............................................................................................7
2.7 Internal analysis..........................................................................................................8
2.8 Marketing strategy......................................................................................................8
3 Promotion..........................................................................................................................10
3.1 Target groups.............................................................................................................10
3.2 House style................................................................................................................10
3.3 Website......................................................................................................................10
3.4 Promotion plan..........................................................................................................11
4 Organization......................................................................................................................11
4.1 Personnel and qualifications.....................................................................................11
4.2 Production process....................................................................................................11
4.3 Information and Communication Technology (ICT)................................................12
4.4 Bookkeeping and administration..............................................................................12
5 Finances............................................................................................................................13
5.1 Estimated turnover....................................................................................................13
5.2 Investment budget.....................................................................................................14
5.3 Finance plan..............................................................................................................17
5.4 Opening balance sheet..............................................................................................18
5.5 Profit-and-loss budget...............................................................................................19
5.6 Cash budget...............................................................................................................24
5.7 Scenario analysis.......................................................................................................26
5.8 Entrepreneur(s) income.............................................................................................29
6 Appendices........................................................................................................................30
A Curriculum vitae.......................................................................................................30
B Copies of certificates.................................................................................................30
C References.................................................................................................................30
D Provisional contracts.................................................................................................30
E Division of premises.................................................................................................30
F Copy registration of Chamber of Commerce............................................................30
G Copy registration tax authorities...............................................................................30
H General conditions....................................................................................................30
I Design house style....................................................................................................30
J Press release..............................................................................................................30
www.makingabusinessplan.noordhoff.nl Roel Grit 1

1 Company
1.2 Business data
The name of our company that we have chosen is called sleep optic. The company is
called sleep optic, because our product will help our customers to have better eyes and a
better sleep during night.
There are multiple options of how we can distribute and sell our products to the
customer. The options that are possible, includes leasing space at a business centre,
renting a building/store and buying a building or constructing a business. In our opinion,
it is the best option to rent a retail store because as a start-up, we don’t have that large
financing to pay for a construction or buying a building. Furthermore, a retail store can
also have grate advantages. In city centres such as Maastricht, shops can be very
successful because there are a lot of young people studying and a lot of tourists visiting
this city. As such the customer base will continuously grow. The store should be located in
big cities which are life full, and typically have a lot of students, and stressed people.
More crowded more noise might mean worse sleep for some people. More wealthy
country might also mean more people can afford to use money to test the product,
because it is not a necessity.
1.3 The product
The product we offer represents a pair of glasses made out of recycled plastic, where the
glasses themselves are made out of a yellow/ orange type of glass in order to prevent the
blue light from devices like phones, TV, computers, to reach your eyes. These types of lights
will affect your eyes and prevent your brain from producing the hormone called melatonin
which helps with sleep. Using these glasses 1 hour before bed will kick-start the production
of this hormone which will result in a better and quicker sleep.
 We would need either labour workers making the product and/ or a machine helping
the assembly.
 It is attainable to buy purchasing recycled plastic for the frames itself while the most
expensive part are the glasses themselves. Also, a marketing budget is needed.
 This product does not break any statutory rules during production.
 This product is attainable ethically no harm is being done when producing this
product. It is also meant to help the environmental matters in the world by re-using
plastic so in the future less will end up in the nature and sea.
 It is feasible since there are competitors on the market producing similar glasses,
however no one is aiming the product to reduce plastic waste, like the one from the idea
we give.
1.4 Mission and goals
Our company, represents the type of business that does not only focus on the earnings. We can
describe ourselves as an ‘’eco-friendly’’ appearance on the market. This is because our main
goal is to satisfy the target group by providing a useful product that is going to be made up by
recycled plastic. Accordingly, the mission we spread is to save the environment, to focus on
the consumer needs and at the same time and to try to promote economic efficiency by
earning above the invested budget.
The main goal of this product is to produce an intensive replacement of the glasses made up
by glass or other non-recyclable substance. As such producing the sleep optic glasses by
recycled plastic will make our vision fulfilled. As such, we do have great expectations about
the growth of our business. Nevertheless, we hope that through the advertising tools that we
will apply, helps us so that everyone will get to know about the benefits of our product.
With our business, we want to sell our sleep improving glasses made with 100% recycled
plastic. We want to be involved in the market concerning personal development and health.
We want to control 15% of the market within the first 3 years, and to increase that to 30%
within the next 2 years after that. The three of us want to earn a minimum income of 10 000
euros the first year and gradually increase this with the rate of the company’s expansion. We
are willing to work 65 hours a week in the beginning stages of the company.
1.5 Business premises
Our business will be mainly focused on the internet retailing, but besides this we plan to find
an appropriate distributor who will place our product in the suitable glasses- chain shops. The
localization of the dealer-shops should be in the nearby of the intensive populated urban areas,
to make it possible for the product to easily reach the end user costumer. In other words, the
ideal location represents the one with a high flux of buyers. Also, the retailer should be easily
accessible without causing inconvenience for the costumers that need to get acquainted to the
new version of the glasses we produce. Moreover, for the internet-based business, we plan to
get in touch with retailers such as Amazon. The reason of choosing an internet- based
business, derives from the fact that nowadays, the transactions made through the internet, are
not time consuming and are more convenient for the majority of buyers. Other benefit of an
internet-based business is that you can communicate with your customers, and get their
feedback with the ability to respond quickly to their needs
1.6 Legal form
There are multiple legal structures that can be chosen from. It is possible to choose either
structures without or with corporate, meaning that every individual is/ is not personally
liable.
Some of the examples of incorporated companies are: private limited company, public
limited company, cooperative and foundation. In addition, setting up a legal structure
with legal personality requires, as Civil Law says, a notary to draw up relevant papers,
including the registration at the Netherlands Chamber of Commerce.
Furthermore, when using the structure of a private limited company, the owners are obliged to
deposit a minimum of €0.01 in cash or any kind.
However, when using the structure public limited company, a minimum share capital of
€45000 is required instead of a deposit.
Concluding on the information given above, the company will follow the legal structure of an
public limited company. It is due to the fact that a substantial amount of ‘’start-up’’ money has
to be invested, and the owners of the company are not personally liable in case of bankruptcy.

As such all of us three will bring 15000€ into the company, as share capital for the public
limited company we plan to set up.
Partners in a business can be very helpful to get work done in an accurate way. However,
partners do not always agree on the same tactics and methods, which is why a business can
fail at an early stage.
1.7 Authorities
The authorities sometimes require businesses to register for special permits and follow certain
rules. As such, businesses who are not being set up by EU citizens in the Netherlands have to
apply for a temporary or permanent residence permit. Furthermore, a company has to set up a
legal structure which has multiple options to choose from. A business is also required to set up
a trade name, register in the commercial register and with the Dutch tax authorities. The
founders of a business also have to register as an employee for payroll taxes and social
security. In the case of our Blue amber blocking light glasses, no certain professional
qualifications are necessary. The usefulness of the product has however, to be conducted by
specialists that have diplomas such as ophthalmologists. The company can then use the
studies and opinions given, to advertise and sell the product. In addition, Dutch authorities
require that when planning to establish the business at a particular location, this choice of
location must be in line with the municipal zoning plan. As the business will have two main
shops, it is also subjected to the Hours act. It means that there are special opening hours which
will need a permit from the city. Another important subject is the general terms and
conditions. The Dutch chamber of commerce mentions that they do not have to be drawn up,
but at the same time they are useful to be owned. Through general terms and conditions, the
company can protect itself in cases of purchasing contracts and other activities. It is possible
to file the general conditions with the chamber of commerce or the court.
Subsidies from authorities
Most start-ups may be eligible for governmental or EU subsidies. Subsidies are given when
certain requirements are meet, in order to stimulate entrepreneurship and innovation. It is not
completely sure if our company will be eligible for EU financing. Given the reason that the
company is using recycled plastic as the main production part, it should be eligible for the
LIFE programme. The LIFE programme is the European Union’s financial instrument that
supports environmental and nature conservation projects. Furthermore, from the Dutch
government, companies and start-ups may be eligible for subsidies in tax schemes, Tax relief
for new companies, SME profit exemption, and a Tax deferred retirement reserve.
Our business will also have an advantage because of the recyclable plastic used in Sleep optic
glasses. As such, the business might be able to make use of a deduction that can be used for
environmental Investment on top of the usual investment. A maximum write off of 75 percent
of the investment costs at a time the user can define.
1.8 Insurance
When creating a business, the owners and partners take a high risk. The risks that can enact on
a business can be damages to property, vehicles, and products. Furthermore, the company
requires insurances for any vehicles and buildings that it owns. Recently, Insurance
companies also started to provide a so-called Business interruption insurance. A Business
interruption insurance will be very useful for the company, since unpredictable environmental
conditions can lead to high unexpected expenses.

As such, the Company should have
1. Professional liability insurance

2. Property insurance
3. Workers compensation insurance
4. Product liability insurance
5. Vehicle insurance
6. Business interruption insurance
The costs for these insurances are unknown, as it is measured based on size and production
line of the business which is yet not measurable. The average business insurance cost for a
recent start up is known to be 1281€ per annum. It has been taken from a study of an
insurance portal.
2 The market
2.1 Trade sector analysis
We are in the sector of sales of products under the category of personal development. It is an
attractive market because there are plenty of costumers using similar products. To be more
specific, the total demand on the world market when it comes to similar products are close to
300 million people. However, there is still a part of audience that can be regarded as a
potential costumer if the concept of new product is introduced.
2.2 Customer analysis

1. Our product is called blue light blocking amber glasses and are sleep improvement
glasses. Our product will be made entirely out of recycled material. The glasses will
therefore not be using unnecessary materials and not contribute to polluting our
earth. It is made from yellow stained glass to be able to block out blue lights in our
surroundings to help increase the production of melatonin.
2. Our target group can be anyone that want a better sleeping experience, however
people that are already having problems with sleep are more likely to buy our
product.
3. The reason people will buy our product is because it is scientifically proven to be a
working method, it is also a natural and simple way of doing it. People will rather use
something as simple as glasses rather than a medicament.
4. The unique point of our product is the recycled plastic used to make it. By buying this
product for personal sleep improvement it will also hopefully give people a better
feeling about themselves knowing they did a good deed for our environment.

2.3 Competitors analysis
Some of our biggest competitors in the area of producing blue blocking amber glasses
could be considered Swannies, Duco Glasses, Duco Pro Amber, Uvex Skyper. They
manufacture an alternative version of the product that we want to sell. After making a
desk-research, we arrived at the conclusion that there are equal as many chances as
threats that we might face. Firstly, the most evident threat is that the manufacturers which
are mentioned above are already known on the glasses market, meaning that in this sector
there is great competition. Secondly, our start-up budget might not be enough in order to
expand very quickly. There is always a time needed for improvements, for making our
product familiar for the target group. On the other hand, we consider that the innovative
product we offer will possibly eliminate the threats that we will encounter. The glasses
we offer, are not only efficient for the human’s health, but also for the sustainability of
the environment. Giving the fact that instead of the glass we will use recycled plastic, it
places our item above, in terms of benefits. At the same time, the average weight of the
product will be considerably reduced as the glass will be replaced by plastic. If taken as
an example the weight of the Swannies (3,6 ounces), or the one of the Uvex Skyper (2,9
ounces) then it should be noted that the weight of our product will not exceed the weights
mentioned above. From a comfort point of view, a larger customer audience can be
guaranteed.
Lastly but not least, as a major strength to our product that we can include is a convenient
pricing policy, meaning that the value perceived by our consumers will be converted in
the spending’s for the product. So, we plan to adopt a value-oriented approach. If we go
further in investigating the pricing levels, they vary Swannies -starting 50 € Duco starting
25 € m Uvex Skyper 30 €. The prices for our product is planned to be below these levels.
2.4 Supplier analysis

The raw materials needed for our product are plastic frames, plastic screws and plastic amber
lenses. To acquire the recycled plastic, we will use the services of one of the biggest plastic
suppliers in Europe, called SUEZ Recycling & Recovery Netherlands.
This supplier had been chosen because it provides a high- quality recycled plastic and is
located in Venlo, Limburg, Netherlands. The location of the supplier will lower our transport
cost, and that represents a great benefit.
SUEZ was founded in 2014, and it has the facility of converting consumer waste into 25,000
tons of high-density polyethylene per year. The high-quality plastic is separated into different
colours to optimize recycling, the final product being of a quality equivalent to that of the
usual plastic. Another reason for choosing Suez is based on the fact that it set up the unique
Plast-lab laboratory, in order to meet some specifications. It analyses, characterises and tests
plastics in order to formulate a new range of quality to meet requirements such as impact
resistance, flexural modulus, heat resistance etc. This way, by having a high qualitative
recycled plastic, we are able to make a high-quality product in order to satisfy the customers.
The average price for a high-quality plastic is 1.28€ per pound, without the price of the
economy of scale applied. Being a cost-effective business will make our product being top
quality in relation to the selling price set.
2.5 Distribution analysis

Based on the fact that our business opts for an internet-based service combined with selling
through the physical presence of retailers, our scheme is quite complex. Mostly, we will focus
on the internet-based service, but the retailers- such as Specsavers will extend the knowledge
about our product by offering value to the service associated with the selling of the glasses we
produce. Firstly, as an internet retailer, we choose Amazon because is widely-known and has
some good deals from the financial point of view. The Professional selling plan is available
for 39.99 $ monthly fee plus per-item selling fee. This fee runs, on average, 10-15% of a
product selling price. For this, is required to set up Fulfilment by Amazon (FBA) and it
handles the storage, sales, shipping and customer support. On the other hand, Specsavers is
planned to be the shop-retailer chosen. The reason Specsavers was picked is explained by the
fact that it is considered to be one of the best-known names in optical retailing that involves
selling eye care products at the high quality and besides this, selling implies much interaction
with customers. Moreover, it sells the products through authorised sellers. Each store is part-
owned and managed by its own directors who are supported by key-specialists. Given this
fact, we contacted individual stores located through the Netherlands in order to get informed
about the costs of using their services
2.6 Environmental analysis

Demographic scanning
- People using this product are most known to be between 12 – 60 years old.
This big age group is because all of these are affected by blue light every day.
Kids are in contact with blue light when they look at their phones, play on
electronic consoles, or watch television before going to bed. The teenage and
the adult generation are also infected by blue light through there general
activities. Such as university students writing essays, watching movies, playing
on consoles and many other activities. The adult age group is mostly affected
by blue light through everyday work on computer, laptops, and phones. All of
these age groups are often in touch with blue light which damages the eyes. To
support the eyes after such activities, the blue amber blocking glasses from
sleep-optic are perfect and spread happiness and health.
Political environmental factors
- There are some factors which might be introduced due to politics. The
politicians and also health insurance companies could decide to give subsidies
or invest partially, due to the fact that it is environmentally friendly and
spreads health.
Technological environmental factors
- The technology to create such product is already available and can be created
using an easy method. Used plastic can be bought at cheaper rights. Then 3D
Printers can use the recycled plastic to print the frame and screws for the
amber blocking glasses. Furthermore, blue lenses are available cheap on the
internet market.
Find suitable personnel on the labor market
- To create the amber blue blocking glasses, a small quantity of suitable

personnel is needed. Most of the work should be done in an automatic process
to produce as efficient and profitable as possible. However, some personnel for
the assembling of glasses and frame, quality assurance, and packing is needed.
Each person working for these sectors will earn a minimum wage, since the
tasks that are given do not require a special know-how, or other qualifications.
The minimum wage in the Netherlands per person is 1615.80€ p. month.
Which trends may influence the sales

- One special trend that is set by sleep-optic, is the environmental footprint and
health factor of the product. Customers love products which are produced from
recycled materials, are cheap, and are beneficial for health.
What is the concern for the environment and the responsible use of raw materials
It is one of the most vital goals and missions to use as much recycled / non-harmful
environmental products to keep the customers satisfied. As such the company is very
environmental conscious and helps to shape more healthy production techniques.
2.7 Internal analysis

Internal analysis (strong and week points)
- Motivation
(producing environmentally friendly, help to shape future, support young kids and
aging population to have healthy eyes.)
- Educational level and experience of the personnel
(No great educational level is needed to assemble glasses from a 3D printer, pack, or
test the quality. As such the personnel will learn about the product and use its
experience to pack or judge the products’ quality. Also, the costs are tried to be kept
low, by introducing modern technology.
- Market knowledge
- (A complete analysis of the Market has been done. It has been identified that in the
sector we want to operate, there are a lot of competitors which produce likewise
glasses. However, there is no manufacture who uses recycled plastic to shape the
lenses and the frame.)
- Internal organization
- Power of innovation
- A good name and product familiarity
2.8 Marketing strategy
- Total product (The product is called Blue light blocking amber glasses. The product
ideally helps the customer to protect his eyes. The target group are, mostly, people
who work a lot on computers, laptops and tablets.
- Strengths and opportunities

Strengths to this product of our company is that its environmental conscious, recyclable,
supporting health, having this way a large demand.
- Weakness and opportunities

The usefulness of Blue amber light reflecting glasses is sometimes challenged by other
ophthalmologists, uncomfortable when used.
- Strength and threats

A clear strength of this product is that it is eco-friendly and can be assembled for a cheap
price. From the threat’s points, it can be assemblies from China or other eastern countries, this
way the usefulness of the glasses being too vague.
- Product
As already mentioned, the product sold by our company is known as Blue Amber Blocking
glasses. It is beneficial for everyone’s health, and is up to 99% environmentally friendly.
As the company is called Sleep-optic, it emphasizes how the product should be used. The
customer will therefore associate sleep-optic, with an increased level of healthy sleep.
- Place
To start as efficient as possible, we plan to rent a building for production and storage, and we
also plan to open one retail store. The production and storage building, should ideally be
situated between Venlo and Maastricht. This is because of the recycled plastic supplier
(SUEZ) which is situated in Venlo, and the first retail store in Maastricht. In this situation,
cost for transport are cut relatively to a low level.
The city of Maastricht has been chosen for our first retail store, because it is a city with a
majority consisting of young people. Maastricht is a well-known student city, and as such
many students will stare at their laptops or write essays. These are the customers we target.
Furthermore, most of these customers are in the teenage age which might mean that they
might be relatively open to discover new products or technology.
- Price
The price will depend on the costs of the business. Sleep-optic wants to sell online and via the
retail store in Maastricht 20000 pairs of glasses. This would however mean that (14222,22€)
worth of recycled plastic has to be purchased for production. This way, the cost incurred for
each blue amber blocking glasses will be 0.71€ for the production of the frames. Associated
with this price there is the cost of the lenses, labor cost, rent cost, and electricity cost still to
be added on. Based on calculations and research, producing one set of blue amber blocking
glasses can be estimated at 7€ when using relatively cheap material. Selling the glasses then
for a price of 16€ because it is environmentally friendly and health beneficial, will make a
total sales revenue of 320000€. Meaning that each of us three have made a profit of 60000€.
- Promotion
To promote our product, we will use a variety of methods. It is very important to promote
online on platforms such as Instagram or snapchat, where the product meets a huge customer
base. Furthermore, it is vital that this product is backed up with facts of a specialist such as an
ophthalmologist. Customers will be attracted by proven facts of health benefits, plus the eco-
friendly production.
- Personnel
We do not plan to hire a large number of employers for the production of blue amber blocking
glasses. This is due to owners and helpers working on this product. It is however expected
that 5 workers are needed. Due to the fact that there is no need for any superior qualifications,
it will cost the company a minimum wage. As such labor cost is expected to be around
96948€ for 5 workers. Of these five workers, one will work in the store in Maastricht, another
will transport the finished goods and the other three help with production. The worker in the
store can also be a student carrying out a student job. Workers can be attracted on the Job
market, or through the province’s employment agencies. To ensure customers are happy even
if there is an error with the product, they can complain using the formula published on the

official website. Agreements that are made with the personnel include, tasks, rules, and time
spend on production per day.

3 Promotion
3.1 Target groups
The potential customers we focus on, are mostly categorized based on criteria such as the
consumers that have troubles with sleeping schedule or the ones who want to improve their
sleeping time. Also, the teenagers represent a target point for the product we offer. The main
focus on the target group mentioned above, is explained by the fact that the glasses we
produce are blue light-blockers. They serve as a helper when our body becomes confused as a
result to exposure to LED lights, smartphones, computers, tablets, during the day. This way,
we cannot strictly categorize our target audience by age, variety in gender or financial status.
Either a young or an old person can have troubles with sleeping, and no matter if they are
female or male. It should be noticed that a well-informed customer, with a medium to high
involved interest in their health and the welfare of the environment, represents the main type
of customer we identify our product with. Also, taking in count that we will match the value
perceived with the investment made by customer, the price should not be a cause for concern
or a basis to include the customers in a specified budget group.
Moreover, based on the data we found available on the internet trusted sources, insomnia is
quite common, at any given time, around 10% of people have at least mild insomnia. The
investigation also underlines that women have twice the rates compared to men, being related
to high rates of anxiety and depression associated with insomnia. This result relates the matter
that the target group that could become our customer is quite wide. The probability of an
increased target group is high as long as the glasses are advertised using the most efficient
paths like a remarkable reviews or paid collaboration. Otherwise, it would be harder to make a
possible interaction and communicate with the consumers.
A customer that is understanding the ease he can manage his sleeping schedule without the
use of the pills or other more complex methods, will be willing to buy our product with no
doubt. Even though the glasses we offer are not linked to an emotional value they possess,
they carry an important practical role. The products ergonomics will be made of a qualitative
and durable materials, which gives the customer a durable and reliable product.
Although there are some alternative possibilities of the amber glasses on the market place,
there are some reasons why the glasses we make represent a better version. Firstly, as
mentioned in the first part of the business plan, the materials we decided to choose are eco-
friendly. So, by reusing plastic we improve the sustainability of the environment. Also, by
investigating further, the prices set for the high qualitative product delivered, will meet the
requests of our potential customers.
Another benefit for us as a company, constitute the fact that there is no special need for the
audience to test or see the product before buying it. That is a win-to-win situation when
talking about saving time. We can guarantee the quality and effect incorporated in the usage
of the product.
3.2 House style
3.3 Website
For our business, we will have a website being build up from a professional company.
Companies such as (wix.com), offer to build up a tailor suited website for the business client.
This would also include registering a domain and setting up payment and contact options
favourable to our business. It will cost us 24.50€ p. moth to have a fully working online
webpage and online store. Furthermore, our business will also use Google AdWords. Google
AdWords might be very useful to our business, because it helps us to get more attention and
more potential customers. Google AdWords will therefore place ads of our business in
websites and on the results of the search engine. In contrast, our business has to pay for every
click, phone call, or video add watched. It is unclear how much money will be spent. Google
AdWords mentions that some businesses pay a few thousands of euros and some only pay a
few hundred euros.
Furthermore, social media is key when setting up a business or a brand. The big advantage of
using social media as a business is that it also has a huge coverage of potential customers,
customers, and consumers. For us it is also very efficient, because we can create exciting, or
funny adds which can be seen by millions of people. Therefore, we should use social media as
a marketing strategy, but also as a way to build up a relationship to potential customers.
3.4 Promotion plan
As our company’s main focus is to sell glasses that are eco-friendly ideally, we would like to
attend seminars and big events concerning products with the same focus. Also, all types of
product launching events would be beneficial for us. For each meeting, we have 3 different
goals. The first is to spread the name of our company in order to create awareness and
increase the demand for the glasses we produce. Secondly, is to find costumers, related to
individuals wanting to use our product. And thirdly, would be to network with bigger
companies and store owners that would like to sell our product as part of their own inventory.
4 Organization
4.1 Personnel and qualifications
Regarding the personnel for our business, it should be noted that there will be consisting out
of a maximum of five employers and helpers. If talking about the financing and accounting
issues, we will outsource an accountant in order to have the support of a qualified person. The
qualified person will be an outsourced employee.
Furthermore, our deposits will be held in an account at the ING bank. We will open a business
bank account. It will pack all the transaction facilities into a small monthly fee. A business
account is vital for the ease of expense management and for the simplicity of tax deductions.
The facilities ING offers to its clients are adapted to different needs. A high volume of
transactions can make a monthly fee with unlimited usage the better option. Overall, most
accounts offer an internet and phone banking, chequing, B-pay, overdrafts, lockbox service
and payroll processing. The actions mentioned above, will simplify some of the
administrative issues we will deal with during the business’ activity.
As it is visible, the range of jobs in our company are not really diversified. Also, the issues
regarding administration will be solved in cooperation by us, owners.

4.2 Production process
Ideally, we would make an investment later for a machine handling the entire
production process of the glasses. However, at the beginning we would start with
doing most of the production ourselves. It will be acquired a machine that will melt
the recycled plastic and form it into the glass shaped parts (The frame front, the
bridge, temples and the small plastic screws holding the temples to the front piece).
When these parts are done, the next step is to paint them the desired colours and
then mount parts all together with the help of special glue and screws.
Lastly, a cutter will be needed to make the glasses to have the exact size. As a final
step, the glass will be mounted into the frames.
There is room for more customization by making nose pads for the glasses to be
mounted on, if desired by the costumer.
As for employees, are needed people that are able to operate the machines in case
something must be manually adjusted. When it comes the mounting itself the
employees do not need specific experience, and will be trained how to do it
correctly.
When it comes to raw materials, it is needed the recycled plastic and the yellow
coloured glass used.
4.3 Information and Communication Technology (ICT)

Firstly, we will have one main store setup in Maastricht. Secondly, it is planned to set up an
online store where we will drive traffic through ads to then be able to reach more people
around the world. As our third path, we will try to make deals with opticians, pharmacies and
life improvement stores, in order to display and sell our product due to its natural health
benefits. For this to be possible we would need to rent a local for our own store, setup a
professional website and ads, contact different store owners around the world and try to
arrange a deal that will also benefit them.
For the first period, we would not need more than 5000- 10000 pair of glasses due to the fact
that our company will own only one central store, and a part of the products will be sold using
retailers. While this store is open, we will begin the process of our online store. By the time
the online store is open we will be making a decision based on how much of the initial
inventory are sold. As we get sales in our online store we will start shipping out from our
initial amount. Depending on the speed of the sales we will ramp up our production in
advance to make sure we do not completely run out and loose costumers. When the initial
realise of both our shop and online store will be stabilized, we will shift our focus onto getting
in touch with store owners to boost the sales volume.
4.4 Bookkeeping and administration

There will be two main software`s that our business will have to use for Accounting and
Customer purpose. The accounting software used by our business is called ZOHO Books.
ZOHO Books is an online accounting software, built to suit our business. The software is easy
to use and furthermore, the online accounting software is designed for businesses or start-ups
to manage their finances and stay on top of their cash flow.
The second software being used is a customer database. The software is also an online
software and is called fresh sales. Over 15000 companies such as Dyson, Toshiba, and Doon
use their services. This is because of the ease of software usage, technological possibilities
this software provides.
Both have an unlimited space of saving. This is because all data is stored at the servers they
provide for usage of this website. Also, both are billing a monthly fee for the usage of the
software. ZOHO Accounting Books bills €29 p. month, whilst fresh-sales bills €49 a month.
5 Finances
5.1 Estimated turnover

Our product is called blue amber blocking glasses. The end product as such are glasses with a
health benefit. These glasses have a special yellow/ orange type of lenses that help our eyes
after the blue light radiation that we are exposed by every day. We are exposed to blue light
mainly throughout the day, when we work on laptops, write emails on phones, watch TV, and
many other activities. The blue lights will affect your eyes and prevent your brain from
producing the hormone called melatonin which helps with sleep. However, when using our
product one hour before sleep, the eyes can recover faster, and therefore people will
experience less sleeping issues.
Our Glasses are made up of only two materials. The first material is recycled plastic and the
second are lenses. The required plastic is bought from a nearby company in Venlo called
SUEZ. SUEZ will, therefore, supply us with the plastic material for the frame and screws that
are produced in the 3D printer. The lenses will be bought from a supplier on Alibaba. To
produce this product efficiently, our business will use five 3D printers and labour for the
assembling process.
When we thought about our product, we wanted to produce something that doesn't harm the
environment. As such we use 100% recycled plastic and try to harm the environment as less
as possible.
3D printers can assemble the frame and screws in 2-5 minutes. One of the five workers will
then screw the frame together and click the lenses inside the frame. As such every 5 minutes,
5 glasses will be produced.
Cost per blue amber blocking glasses are included in the appendix.

5.2 Investment budget
Investigate your subsidy possibilities
As has already been mentioned, our company might be able to get subsidies if we
are eligible for the requirements of Dutch and EU financing. Subsidies are given
from the European Union to stimulate the economy and increase entrepreneurship
and innovation. Our product which is a new innovation on the market is made up
of completely 100% recycled plastic. The European Union is willing to give
subsidies to companies and start-ups if they fulfil the requirements of the LIFE
program. The LIFE program of the European Union supports environmental and
nature conservative projects. However, there are also a few programs which it
might be able to get subsidies from. Throughout the Netherlands, the (Ambitious
Entrepreneurship action plan, Eurostar’s project’s, and the European programme to
stimulate research and innovation “HORIZON 2020” are the most common. To
conclude, it is possible to get subsidies from these four options, however,
requirements of each program have to be met. Before our company is able to
receive subsidies or any financial ate from government or public lenders, we have
to fulfil their requirements. Therefore, if we were to request subsidies from the
ambitious entrepreneurship action plan, the following conditions apply for setting
up our business in the Netherlands:
1. Be well-equipped
- Sufficient money to live in the Netherlands

- An innovative product or service
- A step by step plan to develop your idea into a business
- Registration with the Dutch Chamber of Commerce (KVK)
2. Submit your application
- To apply for a residence permit, you need to be sponsored by an experienced

facilitator. Submit your application at the Immigration and Naturalisation.
3. Complete your business plan

- Develop your innovative idea into a business plan within one year. You can then apply
for a residence permit for entrepreneurs.
However, there is a substantial difference of requirements that must be met between the
ambitious entrepreneurship action plan and the European Union LIFE program.

Ambitious entrepreneurship action plan

Investment budged (€) Total
Fixed assets
Premises (prepaid rent) 120,000
PPQ (tables, chairs, shelves) 4,703 €
Means of transport 0€
Machinery(production) 75,000 €
199703
Current assets
Stocks 190,800 €
Liquid asset (cash in the
bank) 404,497 €
595297
Investment total 795000
Investment budget:
Our investment budget, with a total of 795000€ will be apportioned into some main start-
up investments. Firstly, the plan is to invest an amount of 120000€ as a prepaid rent for
the first year. This figure is based on 58000€ for the space for the shop that we will rent in the
centre of Maastricht. This price was taken from the analysis of the yearly rental prices in the
area of centre of Maastricht. The space that is required to sell the product does not have to be
a large area as a car selling business would require. And the other 62000€ is the cost allocated
for the rent of a small kind of warehouse. This is because the glasses we produce do not
require a big amount of space to be allocated. We had a look through the rental yearly price
for the space that we need for the warehouse. The warehouse will be outside the area of
Maastricht, as it will be cheaper and more convenient to rent in such a place. We plan to
invest an amount from the starting finance we have in a rent sphere as this will provide a more
accurate balance for cash, as one of the main costs of the businesses will be already set up.
Secondly, the other investment will be made for tables, chairs, and shelves that are needed in
our warehouse and shop. The amount is 4703 € and this includes the following: 7 desks (of
whom five are located in the warehouse and two in the shop) at 89 €. Furthermore, seven
chairs at 40€ each and also ten assembling shelves priced at 80 €
each. In addition, we also plan to acquire five laptops for a price of 600€ each, of which three
will be located in the warehouse and two in the shop.
For the assembling / production of the glasses the plan is to acquire three of medium-
performance machineries for production of the glasses. After making a market research we
find a good priced and effective machineries costing 25000€ each. We plan to acquire three of
them for the assembly process. This in total values 75000€. Furthermore, our next investment
is 190800€ for inventories. This is the amount needed for the inventory we buy. A cost for one
glass is 4,24€ and we plan to have for the first year an amount of 45000 pieces in order to
produce 45000 glasses. A total of 5,13€ will be the amount give with the VAT, and 3,85€ for
lens for one pair and 1,28€ for plastic. This amount a total of 4,24 without VAT. As a last
investment, constitute the Cash section and that is 404,497€.

5.3 Finance plan
Financing plan (€) Total
Own capital, amongst others

Capital Invested 45,000 €
Outside capital, amongst

others
Long term loan (0% interest) 300000
Loan from bank (5%) 450000
Total capital employed 795000
Financing plan:
We plan to Finance our Company through three main means. First, we will deposit our
savings as an equity. Each of us will deposit 15000€, forming a total equity of 45000€.
Secondly, a loan from one of our parents, will be given. The amount will be 300000€. This
loan will be at a rate of 0% interest, as it is given by a parent who wants to encourage the
development of our business, with the condition of the principal to be repaid in a maximum of
seven years.
Thirdly, the main loan will be taken from a bank, at 5% interest annually, the interest being
given based on a consultation with the investors. The loan will constitute 450000€. Our total
finance will therefore amount 795000€. After having a discussion with investors, they
suggested that the amount of 795000€ will be reliable in order to set up a business in the
domain that we want to. The assembly and selling of a product, in our case the blue amber
light blocking glasses, can have a great success if advertised using the most effective means.
Based on this, we assume that our net income will be a positive figure even for the first year,
if the sales will not suffer from big marketable changes, and if the business will not incur
unexpected and unpredictable expenses.

5.4 Opening balance sheet
Opening balance sheet

(€)
Fixed Assets
PPQ 4,703 € Equity

Machinery 75,000 € common stock 45,000 €
Total fixed Retained stocks 0€
Current assets
cash at bank 404,497 €

Long-term liabilities
Inventories 190,800 € loan (0% interest) 300,000 €
prepaid rent 120,000 € Long- term loan 450,000 €
Total assets 795,000 € Total equity and loans 795,000 €
Opening balance sheet:
The fixed asset is the planned equipment (tables, chairs, laptops) at 4703€. The other fixed
asset is Machinery, which amounts to 75000€.
The current assets are divided into Cash at bank 404497€, the inventories we bought 190800€,
and the prepaid rent at 120000€. The last one is included as a current asset because it
represents an amount that will be ‘’used up’’ during the year. As such, it is a form of cash
apportioned to a yearly cost. The total assets in this way amount 795000€.
On the other hand, the equity we have is 45000€, as mentioned above it will be as a stock
deposited in equal form by the three of us, owners. As long-term liabilities, we have a loan
with 0% interest being 300000€ and a long-term loan from the bank of 450000€. Even if our
business seems to be highly geared, this is not a big cause of concern because one of the loans
requires no intermediate payments, as mentioned in the financing plan. This way, the total
right side of the balance amounts 795000€.

5.5 Profit-and-loss budget
Profit-Loss Budget Year 1 Year 2
Turnover 640,000 € 780,000 €

cost of sales 241,725 € 297,087 €
Gross profit 398,275 € 482,913 €
Costs
wages and administrative cost 9,768 € 10,656 €

Gas, water, electricity 4,320 € 4,800 €
Consequential loss insurance 1,281 € 1,281 €

Transport costs 7,502 € 9,000 €
Advertising costs 120,000 € 60,000 €
rent costs 120,000 € 120,000 €
Depreciation on investment and
PPG 7,970 € 7,970 €
other costs (website, + Internet) 1,000 € 1,000 €
R&D expense 10,000 € 10,000 €
Operating result 116,434 € 258,206 €
Interest expense 22,500 € 22,500 €

Before tax 93,934 € 235,706 €
Tax expense (25%) 23,483.50 € 58,927 €
net income 70,451 € 176,779 €
Profit loss budget: Year 1
The profit loss budget for year one includes a turnover of 640000€. This number is based on
20000 units of glasses being sold each at 12€ to retailer + 25000 units of glasses being sold
each at 16€ in the shop that we will rent. This figure is based on the fact that the retailer can
put a margin on the price that they will sell the product for, whereas our higher price results
from the fact that we rent a space for the storing and assemble/production of the glasses. Next,
the cost of sales includes 190800€ as a cost for inventory plus an amount of 50925€ as a
direct labour cost. We assume six glasses will be made per hour, that requires 7500 hours to
be worked in total for the production of 45000 glasses. Direct labour will be paid 6,79€ per
hour. The total cost of sales, therefore, is 241725€. Driving to a gross profit of 398275€.

Costs of the business that will occur :
Cost of the business that will occur are wages of 9768€ - this number is made of the wages
paid to a salesperson + accountant. We assume the accountant will be paid 50€ a month for
managing with the closing figures. The salesperson will be paid 8€/h for working 24 h a week
for 48 weeks. The total amount will be therefore 550€ + 9216€ = 9768€.
Furthermore, costs that are going to occur are gas water and electricity which will amount to
a total of 360€ per month. The electricity will represent the biggest part of the expense
incurred. This amount will equal a total of 4320€ for the 12 months.
In addition, further research according to costs such as loss insurance- was determined that it
must be annually paid consistently to the size of our business, which now represents an
estimate of 1281€.
The transport cost includes the transport of the product from the warehouse to the shop. It is
budgeted based on the number of units. Moreover, we will also keep a number of 25000 units
in the store, the cost being 0.3€ per unit.
After our market research, we found out that in order to advertise the product through the
most efficient and effective channels, an average of 120000€ is necessary if the product is
newly launched. As we plan to make our brand popular, a great investment will be needed for
this part. Otherwise, we have the risk not to gain publicity for our product.
The rent cost is included as we use up the space for business and assembling for producing the
product that will lead to a turnover. This amount equals 120000€.
The depreciation is based on the straight-line method. It represents an amount of 7500€
annually for machines. This is when it is depreciating through 10 years with no scrap value.
The other PPQ depreciates at an amount of 470€ annually. This results in an amount of 7970
allocated for depreciation.
Website and internet amount to 83,3€ per month consisting of the wi-fi for the shop and
website maintenance. The figure is based on a research made for the average annual cost for a
similar businesses size to ours. It makes a total of 1000€.
The research and development result is an investment at the beginning of the year, that helps
us to assess the things like placement of the business and also about the level and quality of
the product desired by the customers. It also includes researches that made us offer an amount
of 45000 glasses for the market in the first year. This amount equals 10000€ and will be spent
during the first month of the year.
Therefore, the Operating result is 116434€. I followed by 5% interest out of the loan of
450000€. It represents an amount of 22500€.
The company pays an amount of 25% to the Tax authorities and that is 23483.5€ in case of
the first year. The figures lead to a net income of 70451€ for the first year.
Profit loss budget Year 2:

The turnover for the second year is 780000€. It is based on an increase of production of
glasses by 10000, resulting in a number of 55000 units for the year. 25000 units will be sold
to the retailer. The other 30000 will be sold in our store. As mentioned, the price for the
retailer represents 12€ and the one for the shop is 16€. The total amount raised is 780000€.
The cost of sales includes the cost of inventory 4.24€*55000 and that is 233200€. To this
amount is added the direct labour of 63887€. Total hours needed for 55000 units is 9166 hours
paid at a rate of 6,79€. These figures will result in a gross profit of 482913€.
Costs the business will incur:
Wages and administrative cost: 50 a month paid to the accountant for 12 months. And an
amount of total of 1257 hours worked by salesman, with a rate of 8€ per hour. An average of
24 hours per week for 52 weeks.
Gas water and electricity will increase by 480€, for the 10000 units extra produced. The
electricity costs will go up by 40€ per month.
The consequential loss insurance represents an amount of 1281€ and is the same as the last
year regardless of the units produced, as it is not a big step in the volume produced.
The transporting cost will equal an amount of 9000€. This figure is based on an average of
0,3€ spending for a unit, for a total of 30000 units, we plan to sell in our shop.
The advertising cost will be halved based on the fact that the product is already on the market
and usually less support is necessary for advertising measures to be applied. This number is
based on the average reduction of advertising costs for companies that usually launch new
products and then continue with selling it through a bigger period next year, depending on the
lifecycle of the product.
The rent cost is still amounted to 120000€, as an increase by only 10000 units would not
require a bigger shop or warehouse to be rented. Maybe in the future with the further increase
in production, a step in the rent cost will be visible.
The depreciation cost represents the same amount as in the previous year, of 7970€, as the
straight-line method is used.
The costs for the website and internet stay stable as they do not vary with the amount of
output produced. This is an amount of 1000€.
The research and development expense amounts to 10000€ as always, we are looking for the
target group, the influence we might use, and also it will be used in order to discover new
target groups and improvements that should be made to our product.
Therefore, the Operating result represents an amount of 258206€. Out of this amount, interest
is paid by an amount of 22500€ based on the loan taken. The Tax of 25% is applicable,
leading to a Net income of 176779€ for the end of the second year.
Closing Balance Sheet 1st Year:

Closing Balance
1st year
Fixed Asset Equity
PPQ 4233 common stock 45000

Machinery 67500 retained earnings 70451
Long term
Current assets liabilities
cash at bank 793718 loan(0%) 300000
inventory 0 long term loan 450000
total 865451 865451
For the closing balance sheet at the end of the first year on the left side we have current assets
a non-current. As non-current asset is visible that PPQ and Machinery are written at their
book value. That means that the amount that was depreciated influenced the retained earnings
(net income) at the same time the net book value of PPQ and Machinery went down
comparing to the initial value. The PPQ went down by 470€ while Machinery by 7500€. As a
current-assets is the Cash balance at 793718€. There is no inventory in stock but starting
January the company plans to supply and pay in equal instalments during 2 months, the
amount needed for inventory for the whole year.
On the right side the common stock remained unchanged at a value of 45000€. The retained
earnings went up by the amount of net income from the first year, as no dividends were paid.
The amount of the retained earnings equals 70451€. If talking about the long-term finance, the
were no repayment of loans during the second year, so the Long-term liabilities remain
unchanged comparing to the opening balance. The loan at 0% interest of 300000€ and the
long-term loan at 5% interest of 450000€.
The right and left side therefore represent an amount of 865451€ being in balance.
Closing Balance Sheet for the 2nd year:
Closing balance Y2
Fixed asset equity
PPQ 3763 common sotck 45000

Machinery 60000 retained earnings 247230
Current asssets long term liabi

cash at bank 828467 loan 0% 300000
inventory 0 long term loan 300000
total 892230 892230
The closing balance for the second year had some changes compared to the first year. Firstly,
it is noticed that the Current assets as PPPQ and Machinery are represented at the book value
after 2 years. So, the PPQ is at the value of 3763€, that is 4233€
-470€ (annually depreciation), And the Machinery is at the value of 6000€, that is 67500€-
7500€. The retained earnings went down by the same amount, the non-current asset
depreciated. However, this is not an amount that affected cash outflow, it represents a method

of bookkeeping, Also, it does not match the market value of the assets the company owns.
Further, the change in Cash was due to an increase in retained earnings at the end of the
second year. The amount of the non-current asset, Cash represent an amount of 828467€.
On the other hand, the common stock remained unchanged, while the retained earnings
increased based on an increase in net income and based on the accumulated reserves from the
first year. That is 70451€ added to net income at end of the 2nd year of 176779€, making a
total of 247230€.
If looking at the long-term liabilities, the loan with 5% interest was repaid by one third of the
total amount, at the end of the second year. That is 150000€. Now the loan with the 0%
interest equals the amount of the loan with 5% interest, and this is the amount of 300000€.
The balance of the debt and credit side equals a total amount of 892230€.
It seems that the company is a high geared one, even at the end of the second year, but this
situation arises with start-up businesses that do not go public, or at least in the first years of
operating. An increase in profits, in the future, will redeem the situation during the next 5
years.
5.6 Cash budget

Cash flow budget 1st year
The inflow from the cash budget represents the one from the sales to the retailer and from the
sales to our shop. We do not offer credit payment. The cash inflow is in the same month in
which the sales are made. It is because the price that we sell the product for, is quite
achievable and the bad debts can negatively influence our company in the first period of
operations.
The estimated cash inflow from the retailer is 21819€ per month while the estimated cash
inflow from the store represents 36364€ monthly on average. We assume that the sales will
not vary based on the season as we sell a product that it is not influenced by the weather
conditions or some specific periods of the year. Therefore, a constant number of sales will
occur. This leads in total to revenue of 58183€ monthly. It must be noticed that sales will start
in February during the first year of operations. Nevertheless, some costs like renting and the
cost of sales will be incurred starting January.
From the cash costs incurred, there is an interest charge on the loan split through the year
(22500€/ 12 months =1875€)
The cost of sales represents the amount paid to workers for assembling the production. They
are paid in the month in which the costs incurred.
The insurance cost is paid in the first month of the year, this amounts to a total of 1281€.
Furthermore, the wages costs, that is the cost for an accountant and salesperson start during
February and amount to a total of 888€ per month.
The cost for gas/electricity represent a monthly of 360€, These are paid in the month that they
incur.
The advertising cost is spent in the first month of the year, which amounts to a total of
120000€.
The transport cost will start in February, with a total of 682€ monthly, paid the month they
incur.
The website and research and development cost are also paid in the first month of the year,
They represent a total of 1000€ and 10000€.
The tax costs are paid in the last month of the year, that is December. It amounts a total of
23483.5€
There is an opening balance for the cash of 404497€ that is introduced as the opening cash
balance for January and adjusted through the period due to the net cash inflows.
It should be mentioned that the VAT receivable and VAT payable are not included in the cash
statement as it is assumed the VAT received is passed directly to the authorities the month
they are received, therefore the inflow and outflow is not visible, as the amount of cash
received and paid is equal and does not influence any others accounts.
The closing balance for the cash in December is 793718€, which matches the balance of the
cash in the closing balance sheet at the end of the first year.
Cash flow budget 2nd year
The cash inflow from the second year will rise due to the fact that 10000 more units will be
produced during the whole year. This way, the total amount of cash receipts, with no credit
period neither for the retailer or direct customers, will amount 65000€ monthly.
The cash outflows of the business that will incur during the second year are as follows:
A repayment of 150000€ will be made on the principal of the loan that is at 5% interest in
December, end of the second year.
The inventory will be bought during the first two months, being enough for the sales that will
be generated through the second year. This amounts a total of 233200€ that will be paid in
instalments during January and February.
The simple interest for the loan taken (22500€) will be divided through the year into equal
amounts, that is 1875€ paid monthly.
The cost of sales will be paid in the month they incur and that amounts a total of 5323.9€, for
the direct labour for production. At a rate of 6,76€, 788 hours will be worked monthly.
The insurance of 1281€ will be paid during January.

The wages amount the same amount of 888€ monthly as previously, as the salesperson and
the accountant will not be required to work overtime because of the increase in the inventory
produced. However, this cost will be incurred in January as well, as the firm will operate
starting in January, during the second year.
The cost of gas and electricity will increase up to 40€ monthly because of the increase in the
level of output. This will amount an average of 400€ monthly. An increase of 0,048€ for each
extra unit produced.
The advertising cost will be paid in January and provide benefits throughout the whole year.

The transport cost will increase monthly up to 750€, due to an increase in the extra level of
units held in the storage. That is an increase of 68€ monthly.
The internet and Research and development cost will be paid during January, the first month
of operations and that amounts to 1000€, and respectively 10000€.
The Tax payment is made during December, an amount equal to 58927€.

The opening balance for the cash, that is 793718€ is written as the opening balance in
January and adjusted through cash inflows/outflows incurred during the second year.
The closing balance for the cash is 828467€ which equals the balance of the cash at the end of
the second year in the closing balance sheet.
5.7 Scenario analysis
When looking at our profit loss account we are already in the first year making a good
profit. However, as entrepreneurs we know that the first years of a start-up can be some of the
most crucial ones. Demand for the product can be different from what we anticipated, costs
can amount to much more, and other various situations can occur. Because of this it is
important to be prepared for several outcomes that might not fit with our original
plan. Therefore, we will be conducting a scenario analysis that will shed some light on what
we can change as owners to hopefully turn different scenarios in our favour. This can be
anything from labour cutting to sales price changes. We also take into consideration scenarios
that are to hard to turn positive just by adjusting numbers, and how we would want to deal
with those. Under there will be a picture of our original profit loss account and balance that
will be used as the primary mean of measurement while analysis these three different
scenarios.
Picture 1
Scenario 1
The first scenario is the one most likely to happen which is that our turnover estimation is not
met. This can be for several reasons and be handled in a number of different ways. In this
scenario, we will reduce our turnover from year one and two by 90 000€. This is a scenario
with a relatively small mistake that is fixable by adjustments.

This change will put us in a loss for the first year while still maintaining profits for the
second. As a start-up, it is not unusual to make a loss or break even the first years of
operations. Therefore, for this scenario our aim is to try and breakeven the first year by
cutting down on advertising costs and rent cost. Since these two is our biggest cost drivers
they are also for us the easiest place to make adjustments. To try and not drastically cut the
budged of these two too much we would remove the same amount for them both. For
advertising, we would shorten our campaigns in hope of it not to damage our turnover any
further. As for rent we are renting a warehouse for production and storage of the units,
however we believe that this is still manageable even by downgrading our warehouse size,
especially since the demand for our product also went down less inventory is needed. We
would try and decrease both expenses by 9774,75€ and reach a breakeven. We are also aware
that we could potentially try and make changes to our cost of goods sold, however we would
try and not do that if possible due to our already low costs, so we do not need to decrease our
quality.
Scenario 2
Our second scenario is if the cost of the product itself ends up being higher then excepted, and
in return ends up lowering our profit margin. For the sake of the scenario we will increase our
cost of goods per unit from 5 (including labour) to 7 per unit. This can be because we ended
up with a more expensive material, or that we had to increase the salary of our workers. This
makes our cost of sales change:
Which in return changes our profit:
As shown above we are no longer in profit the first year. To try and fix this there
are several different ways to go about it. One way would be to try and increase the selling
price, however we need to keep in mind that this could end up affecting our demand, but we
will not take that in to consideration in this scenario. As explained in the profit loss analysis
we will be selling 20 000 units to a retailer for 12€ each and 25 000 units sold in our own shop
for 16€. Because increasing the price we sell it to the retailer would most likely damage their
profit margin the best option would be to try and adjust our own sales price. Just by increasing
our sales price in store from 16€ to 16,5€ we would end up with a profit of 9 675,5€. In this
scenario, we took a very small loss as our example, however, would the impact have been
bigger we would still be able to adjust our selling price a couple of euros.
Our second option to adjust this would be to like in scenario one to change our advertising
cost and rent cost. Since it is only talk about a small amount, we do not think that such small
adjustment would affect us to much.
Our last option would be to adjust the wages. As explained in the profit loss analysis we do
have a sales person working in our store. This person is working 24 hours a week at an
8€/hour salary for 48 weeks. The worst-case scenario is if we are not able to adjust the other
numbers mentioned above without damaging our sales, then we as owners would have to step
in and participate in the shifts in the store. This would lead to a lower work load for that
person and would decrease our wage expense. If we in this scenario would for example half
the work week from 24 hours to 12, we would decrease the expense from 9 768€ to 5 158€.
This would also put us in profit for the year as shown below:
Since this did not put us a loss the second year, we would not conduct any major changes that
would risk using losing volume.
Scenario 3
In our last scenario, we will make the unexpected changes more impactful and try to cover our
loss as much as possible. For simplicity, we will focus on the first year only since that is the
most “unstable” year for us in terms of profit. In this scenario, we pretend that our cost of
goods increased from 5€ to 7,5€. Also, our gas, water and electricity expense went up from
4 320€ to 5500€. We also miscalculated our transportation expense and it ended up being
8 000€ instead of 7 502€. Lastly due to some unfortunate circumstances our consequential
loss went from 1 281€ to 4 000€. This leaves us with a profit loss looking like this:

We would try and make several small adjustments to salvage this to hopefully not ruin our
volume and quality. First of we would like in the previous scenario increase our store sale
price from 16€ to 16,5€ per unit better our revenue. We would also try and decrease our rent
and advertising both by 5 000€ each. A little lower advertising will hopefully not affect our
sales to much, also we can make do with a smaller warehouse. Lastly, we would again shorten
the work week for the sale employee by half resulting in the same wage expense as the
previous scenario. This would result in a profit loss account looking like this:
As we can see we did still end up with a small loss, however we think by adjusting the
expenses and selling prices to much would negatively impact our sales and therefore we
would rather take this small first year loss than potentially ruins our customer base.
5.8 Entrepreneur(s) income

Appendices
A Curriculum vitae
B Copies of certificates
C References
- https://www.biohackerslab.com/reviews/blue-light-blocking-glasses/
- https://www.suez.com/en/our-offering/businesses/what-are-you-looking-for/resources-
management-consulting/introduce-more-recycled-plastics-into-your-production
- https://www.sleephealthfoundation.org.au/pdfs/Insomnia.pdf
- https://www.indeed.com/q-Product-Assessment-Specialist-jobs.html
D Provisional contracts
E Division of premises
F Copy registration of Chamber of Commerce
G Copy registration tax authorities
H General conditions
I Design house style
J Press release

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Business plan

www.makingabusinessplan.noordhoff.nl Roel Grit 1

1.3 The product

1.4 Mission and goals

1.5 Business premises

1.6 Legal form

www.makingabusinessplan.noordhoff.nl Roel Grit 3

Subsidies from authorities

www.makingabusinessplan.noordhoff.nl Roel Grit 4

1. Professional liability insurance

2.2 Customer analysis

www.makingabusinessplan.noordhoff.nl Roel Grit 5

2.4 Supplier analysis

2.5 Distribution analysis

2.6 Environmental analysis

Political environmental factors

Technological environmental factors

Find suitable personnel on the labor market

- To create the amber blue blocking glasses, a small quantity of suitable

Which trends may influence the sales

www.makingabusinessplan.noordhoff.nl Roel Grit 7

2.7 Internal analysis

2.8 Marketing strategy

- Strengths and opportunities

- Weakness and opportunities

- Strength and threats

www.makingabusinessplan.noordhoff.nl Roel Grit 9

www.makingabusinessplan.noordhoff.nl Roel Grit 10

3.2 House style

3.4 Promotion plan

www.makingabusinessplan.noordhoff.nl Roel Grit 12

4.3 Information and Communication Technology (ICT)

4.4 Bookkeeping and administration

5.1 Estimated turnover

www.makingabusinessplan.noordhoff.nl Roel Grit 14

5.2 Investment budget

Investigate your subsidy possibilities

- Sufficient money to live in the Netherlands

2. Submit your application

- To apply for a residence permit, you need to be sponsored by an experienced

3. Complete your business plan

www.makingabusinessplan.noordhoff.nl Roel Grit 15

www.makingabusinessplan.noordhoff.nl Roel Grit 16

www.makingabusinessplan.noordhoff.nl Roel Grit 17

Financing plan (€) Total

Own capital, amongst others

Outside capital, amongst

Total capital employed 795000

www.makingabusinessplan.noordhoff.nl Roel Grit 18

Opening balance sheet

PPQ 4,703 € Equity

cash at bank 404,497 €

Total assets 795,000 € Total equity and loans 795,000 €

Opening balance sheet:

www.makingabusinessplan.noordhoff.nl Roel Grit 19

Profit-Loss Budget Year 1 Year 2

Turnover 640,000 € 780,000 €

wages and administrative cost 9,768 € 10,656 €

Consequential loss insurance 1,281 € 1,281 €

Interest expense 22,500 € 22,500 €

Profit loss budget: Year 1

www.makingabusinessplan.noordhoff.nl Roel Grit 20

Profit loss budget Year 2: