Team B

Louisa Miranda Chapman Sumner

Veronica Nicholle Alexis

Valdez

Financial Sustainability
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Graph of Quarterly Expenditures

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Dollar Dandelions Expenditures 2010

Expenses Qtr 1 Qtr 2 Qtr 3 Qtr 4

$ $ 12,922.3 12,922.3 $ $ 8 8 12,922.38 12,922.38 Payroll $ $ $ $ 3,300.00 3,300.00 3,300.00 3,300.00 Rent $ $ $ $ 1,625.00 1,598.00 1,600.00 1,545.00 Electric $ $ $ 100.00 98.00 $ 104.00 89.00 Water $ $ $ Business Insurance 750.00 750.00 $ 750.00 750.00 $ $ $ 85.00 75.00 $ 90.00 80.00 Flowers What is my average MONTHLY expenditure? $ $ $ 4/13/12 90.00 86.00 $ 98.00 95.00

Definition of Financial Sustainability:

The

degree to which an organization collects sufficient revenues from sale of its services to cover the full costs of its activities, evaluated on an opportunitycost basis. (USAID, 2002)

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How Do We Get There?

To

operate a financially sustainable business, you need to develop long term goals that outline where you want your business to stand financially in the future. The profit you want to make, your level of debt and your cash flow requirements all need to be taken into consideration. You should develop a plan that will help you to arrive at this position within a specified time frame. (NSW Trade and Investment, n.d.)

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Cost of Inventory

Louisa spends $30 per month on 2 cases of flowers, which come in cases of 75. We were able to locate a vendor that sells them in cases of 100 at $15 each. How much would she be paying for each bunch of flowers from her new vendor?

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Cost of Inventory (contd)

Louisa

buys her vases for $0.30 a piece one case at a time. 100 vases cost her $30.00. We found a vendor who will give her a better deal and sell them to her at $0.20 a vase (or $20.00 per 100) if she orders a minimum of 2 cases at a time. What is the percentage increase in her spending per order if she orders only the required minimum from the new vendor?

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Sales
The

total cost for Louisa to create one basic flower arrangement (7 bunches of flowers in one vase) is $1.25. She must also pay the fixed cost of ordering her inventory, which is $70.00. She sells her basic arrangement for $5.00. How many bunches must she sell to yield a positive profit?

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References:

NSW Trade and Investment. (n.d.). Managing for sustainability module. Retrieved from http:// toolkit.smallbiz.nsw.gov.au/part/17/83/358 USAID. (2002). Sourcebook . Retrieved from http:// www.usaid.gov/pubs/sourcebook/usgov/glos.html

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