Bookaholics

Budget as at March 31, 2022

Estimated number of units to be sold in Year 22-23

Particulars Amount
Direct Materials 500,000
Direct Labour 1,440,000
Direct Expenses 350,000
Prime Cost 2,290,000
Promotional activities 700,200
Initial PPE requirement 560,000
Insurance 80,000
General administration costs 20,000
Packaging 20,000
Total Cost 3,670,200
 10,000

Remarks
Requirement of initial stock of 1,000 books taking an average of Rs. 500 per book
Salary of sales personnel (5) - 2 for general sales promotion, 1 for customer service & 2 for fulfilling orders
Web development, Pickrr delivery charges, Legal charges and Warehouse rent

Cost of advertising on social media platforms and offline methods (reaching out to established bookstores)

Insurance for 5 years to cover 60% of book value and salary of employees of 2 months
Financial requirements

Funding required:
Particulars Amount
Salary 1,440,000
Promotional activities 700,200
Initial inventory requirement 500,000
Initial PPE requirement 560,000
Miscellaneous expenditure 470,000
Total 3,670,200

Methods of raising funds:

Particulars Amount
Capital contributed by partners 670,200
Individual loans taken by partners 3,000,000
Total 3,670,200
Financial projections

1 2
Particulars
Units Units
Opening Stock 0 1,200
Budgeted Sales (estimated growth rate for this market at 20%) 10,000 12,000
Closing Stock Required (10% of next year sales) 1,200 1,440
Units to be Produced during the year 11,200 12,240
 3 4 5
Units Units Units
1,440 1,728 2,074
14,400 17,280 20,736
1,728 2,074 -
14,688 17,626 18,662