Sta tart- t-up, or not? t? Module 5 Module 5 START-UP? - - PowerPoint PPT Presentation

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sta tart t up or not t module 5 module 5 start up start up

Mar 14, 2024 232 likes •454 views

Sta tart- t-up, or not? t? Module 5 Module 5 START-UP? START-UP? Bu Business Id Idea 3. 3. Is Is it t worth th it? t? START-UP? START-UP? Is it Is t worth th it? t? Bu Business Id Idea Reve venue > Costs ts START-UP?

SLIDE 1

Sta tart- t-up, or not? t? Module 5 Module 5

SLIDE 2

Bu Business Id Idea

3.

3. Is

Is it t worth th it? t?

START-UP? START-UP?

SLIDE 3

Bu Business Id Idea

Reve venue > Costs ts

START-UP? START-UP?

Is Is it t worth th it? t?

SLIDE 4

Cost t Str tructu ture

Variable

Variable

Fixe xed / ove verheads

START-UP? START-UP?

Is Is it t worth th it? t?

SLIDE 5

Variable Cost t

Vary y proporti tionate tely y with th th the vo volume of acti tivi vity: ty:

Goods sold

Goods sold

Servi

vices rendered

Goods produced

Goods produced Measured per unit t of sales or producti tion

START-UP? START-UP?

Is Is it t worth th it? t?

SLIDE 6

Variable Cost t

Exa xamples

Finished product t

Raw mate

terial

Components

ts

Packaging

Consumables

Consumables

Direct

t labour - skilled, semi-skilled, unskilled

Piece-rate te labour

Contr

tracto tors fees

Commission

Commission

Delive

very y costs ts

START-UP? START-UP?

Is Is it t worth th it? t?

SLIDE 7

Fi Fixe xed Cost t

Remains fixe xed regardless of th the vo volume of acti tivi vity ty Measured per period Measured per period

START-UP? START-UP?

Is Is it t worth th it? t?

SLIDE 8

Fi Fixe xed Cost t

Exa xamples Direct t

Producti tion facility ty renta tal

Producti tion labour

Electr

tricity ty & wate ter

Depreciati

tion of dedicate ted machine

START-UP? START-UP?

In Indirect t

Office /warehouse renta

tal

Administr

trati tion

Bookkeeping / accounti ting / audit t

Consumables

Consumables

Compute

ters

Insurance

Marketi

ting

Moto

tor ve vehicles

Salaries & wages

Salaries & wages

Telephone

Telephone

Transport

t

Trave

vel

Is Is it t worth th it? t?

SLIDE 9

Variable Cost t Bu Budget t Trade Trade

START-UP? START-UP?

Is Is it t worth th it? t?

Purchase price 300 Delivery cost 10 Import duties 45 Other

Total

355 Variable Cost per Unit

SLIDE 10

Variable Cost t Bu Budget t Servi vice

START-UP? START-UP?

Discard labour Discard labour

n yo

your payr yroll

Is Is it t worth th it? t?

Level Rate Hours Skilled 450 2 900 Unskilled 150 4 600 Type Cost Units Lubricant 30 2 60 Rags 3 5 15 Transport 4 35 140 Total 1 715 Service Cost per Unit Direct Labour Consumables Other

SLIDE 11

Variable Cost t Bu Budget t Manufactu turing

START-UP? START-UP?

Discard labour Discard labour

n yo

your payr yroll

Is Is it t worth th it? t?

Type Cost Units kgs lts ea Level Rate Hours Skilled Semi skilled Unskilled Type Cost Units Dedicated depreciation Measurable water & electricity Product Cost per Unit Direct Material Consumables Labour Direct Labour Overheads Total

SLIDE 12

Variable Cost t Bu Budget t

In Insta talled solar wate ter heate ter

START-UP? START-UP?

Trade Trade Servi vice

Collector ST300 2 500 Hangerbolts HS-S01 x 2 150 Geyser S300ID 3 500 Cradle JBM300 250 DB board Timer DBT001 500 Expansion tank Exptnk2L 150 Redsol x 4 GLY001 x 4 300 Tempering valve TV22HP 150 Lagging LAG001 x 3 100 Product cost ex VAT 7 600 Installation Labour ex VAT 1 000 Installation Bill of Material ex VAT 1 000 Plumbing CoC ex VAT 500 Electrical CoC ex VAT 500 Selling cost & Commission ex VAT 1 000 Travel & transport ex VAT 500 Total Cost ex VAT 12 100

Thermosiphon Flat plate Indirect

Is Is it t worth th it? t?

Numbers shown are purely hypothetical

SLIDE 13

Ove verhead Cost t Bu Budget t

START-UP? START-UP?

Accounting and audit 4 000 Computer expenses 500 Depreciation 2 500 Directors fees 125 000 Electricity & water 5 000 Insurance 4 000 Repairs & Maintenance 2 000 4 000 1 500 Rent 40 000 Salaries & wages 60 000 Tools 500 Telephone 8 500 Travel 2 500 Total 260 000 Motorvehicle - license, fuel maintenance Overhead Expenses Monthly

Is Is it t worth th it? t?

SLIDE 14

Y1.04 Id Idea Descripti tion

START-UP? START-UP?

Is Is it t worth th it? t?

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

SLIDE 15

Pr Profita tability ty Revi view

START-UP? START-UP?

Sales price per unit VP cost per unit Gross Profit per unit Units sold Gross Profit for period Overhead cost for period Net Profit for period Profitability review

Is Is it t worth th it? t?

SLIDE 16

Pr Profita tability ty revi view

START-UP? START-UP?

Sales price per unit 12 000 VP cost per unit 9 000 Gross Profit per unit 3 000 Units sold 135 Gross Profit for period 405 000 Overhead cost for period 260 000 Net Profit for period 145 000 Profitability review

Is Is it t worth th it? t?

Numbers shown are purely hypothetical

SLIDE 17

Y1.04 Id Idea Descripti tion

START-UP? START-UP?

Is Is it t worth th it? t?

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

SLIDE 18

Bu Business Id Idea

3.

3. Is

Is it t worth th it? t? More th than numbers

START-UP? START-UP?

SLIDE 19

START-UP? START-UP?

Lessons Learnt t

Cost

t Str tructu ture

Profita tability ty

Moti

tiva vato tors

Can yo you fullfill th the need?

SLIDE 20

START-UP? START-UP?

Checklist t

1.

1. Is

Is th there a genuine need? 2.

2. Can yo

you fulfil it? t? 3.

3. Is

Is it t worth th it? t? 4.

4. Do yo

you have ve what t it t ta takes?

✓ ✓ ✓

SLIDE 21