A gift shop is a small business that sells unique and decorative products.

It requires a financial
plan to ensure its success and longevity. This financial plan involves the analysis of fixed costs,
variable costs, and total sales prices of products.
Fixed costs are expenses that remain constant regardless of the level of sales or production. In
this gift shop, the fixed cost is 3 322 $, which includes rent, insurance, and utilities. Variable
costs, on the other hand, change with the level of sales or production. In this gift shop, the
variable cost is 5680$, which includes raw materials, labor, and shipping costs. The total sales
price of products in this gift shop is 9 360$, which includes the cost of goods sold and the
markup.
The gift shop has five members, and the wages for each member is 470$. Therefore, the total
wage cost for all five members is 2350$. This cost will vary depending on the level of production
and sales. The products sold in the gift shop include candles, pyrography of three different
sizes, embroidery, and resin work.
A starting capital of 10 000$ was required to start this gift shop. 5000$ was obtained from a
bank loan, while the other 5000$ was obtained from funding members. The bank loan was
obtained through submitting a business plan and presenting the financial plan to the bank. The
founding members were friends and family members who invested in the business, believing in
its potential for success.
In conclusion, the financial plan of a gift shop is crucial for its success. A well-constructed
financial plan will help the business to understand its costs, revenue, and profit margins. The
combination of bank loans and funding members helped the gift shop to start operations and
secure a starting capital of 10 000$. With the addition of wages for members and the sale of
unique and decorative products, this gift shop is poised for success.