| Free Sample Business Case |
Business cases or business Plans are vital to decide when you intend to
start a new business. They differ from business to business and from tax
free to non-tax free environments. You will never find a business case that
will suit your requirements 100%. However, there are some essentials
when you develop a business case that you need to know and consider.
The fist item in a business case is the cost element. This refers to the
investment you intend to make. You will have fixed costs which are fixed
whether you sell a product or service or not. An example of fixed cost is
the rent of your shop or the monthly rental of your website. Variable costs
change as you increase the number of sold or rented items. A good
example is your electricity or water bill. If you open your shop for long
hours, you consume more power to sell more products and services. Fixed
costs are depreciated as they are used over the years. Variable costs could
change monthly or quarterly. Tax is also a cost.
Once you identify your cost, you need to set the price that sells your
products or services. The price can be set based on your cost or your
competitors. The price is what generates revenue for your project.
Now that you know your cost, estimate the sales volume. Multiple this by
the unit sales price to makeup the revenue.
start a new business. They differ from business to business and from tax
free to non-tax free environments. You will never find a business case that
will suit your requirements 100%. However, there are some essentials
when you develop a business case that you need to know and consider.
The fist item in a business case is the cost element. This refers to the
investment you intend to make. You will have fixed costs which are fixed
whether you sell a product or service or not. An example of fixed cost is
the rent of your shop or the monthly rental of your website. Variable costs
change as you increase the number of sold or rented items. A good
example is your electricity or water bill. If you open your shop for long
hours, you consume more power to sell more products and services. Fixed
costs are depreciated as they are used over the years. Variable costs could
change monthly or quarterly. Tax is also a cost.
Once you identify your cost, you need to set the price that sells your
products or services. The price can be set based on your cost or your
competitors. The price is what generates revenue for your project.
Now that you know your cost, estimate the sales volume. Multiple this by
the unit sales price to makeup the revenue.
To appreciate if your project is worthwhile, there are two important financial indicators. They take into account
the opportunity cost and the net present value of your initial investment. This investment is your initial cost (rent
for 3 years, advertisement, machines ...etc).
The attached example shows a simple business case for a project that leases two types of products A and B.
Modify the excel sheet to suit your project.
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |