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Financial Plan for New Energy Drink Essay Example

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Financial Plan for New Energy Drink

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Financial Plan for New Energy Drink. Power Health will stand as a better alternative for the existing range of energy drinks. It will contain optimum level of protein, fat, carbohydrates, energy, vitamins, fructose syrup etc that is very vital factor for enhancing the health and energy of human body. The energy drink, Power Health will be available in 250ml can and its initial selling price is £3 per 250ml can. The product packaging design and price has been determined keeping in mind the potential consumers and existing competitors.This section presents the projected financial planning for the new energy drink. In order to develop proper financial plan and to prepare an accurate and realistic financial statements, sales forecasting needs to be carried out with caution.

There are certain factors like market size and other macro economic factors that must be considered while determining the forecasted sales. These factors influence the market demand of any particular product. The sales of Health Power energy drink has been forecasted after analysing the existing market demand. The estimated sales for the year are 50000 units of 250ml can. The following table shows the projected and estimated sales and projected revenueAccording to the above table, the new venture is expected to earn £150000 from sales revenue during its first operating year. After forecasting the sales revenue, it is also very important to estimate and calculate costs like fixed cost, variable cost, capital expenditure etc. The following table shows the cost of production that includes the cost of raw materials, packaging, direct labour etc.The above table presents the estimated cost for each variable item in terms per unit. The total cost of production is £1.95 per unit. Table 3 shows the calculation of the net contribution per unit of 205ml can.Taking into account, the pre-defined selling price and total cost of goods sold, the net contribution per unit is £1. This contribution includes profit and fixed variable. For running a business, other fixed overheads are also necessary. These fixed overheads include salaries, administrative expenses etc. The following table portrays the list of expected fixed expenses.The above table includes necessary overheads and their estimated costs. For establishing manufacturing plant and opening administrative offices, the new venture will lease the necessary space in proper locations where. Financial Plan for New Energy Drink.

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Pinson, L. 2008. Anatomy of a business plan: the step-by-step guide to building your business and securing your companys future. 7th Edition. Aka Associates.
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