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Start-Up Cost: (1 To 1.5 PAGES)

The document outlines guidelines for a business blueprint, including a section on start-up costs. It provides details of the estimated start-up costs totaling RM1,275,500 for establishing a business to produce CorMark Pens. This includes capital expenditures for administration like land and buildings, and operations like machinery. It also accounts for one-time costs like installation and inventory, as well as other pre-operational expenses. The document then estimates the product cost per pen will be between RM5-RM7, though they plan to start at RM5. It calculates the net profit per pen would be RM3 based on a production cost of RM2 per unit.

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Hazeq Azahar
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33 views3 pages

Start-Up Cost: (1 To 1.5 PAGES)

The document outlines guidelines for a business blueprint, including a section on start-up costs. It provides details of the estimated start-up costs totaling RM1,275,500 for establishing a business to produce CorMark Pens. This includes capital expenditures for administration like land and buildings, and operations like machinery. It also accounts for one-time costs like installation and inventory, as well as other pre-operational expenses. The document then estimates the product cost per pen will be between RM5-RM7, though they plan to start at RM5. It calculates the net profit per pen would be RM3 based on a production cost of RM2 per unit.

Uploaded by

Hazeq Azahar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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BLUEPRINT (ENT600) : GUIDELINES & TEMPLATE

6. START-UP COST (1 to 1.5 PAGES)

Financial management is crucial in making decision for marketing and controlling cost of
both expenditure and product. To ensure that the financial works well, the financial
department need to have an exact value needed as well as proper financial budget and costing
for the operations. This would be a good chance to evaluate the business venture went well or
not. By confirming the product can survive in the market based on the market survey, the
product is set for a new start but there is more things need to be settle first.

In starting up new products,there are many things need to be considered. The very beginning
of making new product require a start-up cost. This start-up cost may require many thing such
as capital expenditures for administrative, operations, one-time start-up expenditure and other
pre-operation expenditure. This aspects were important as the consideration of making new
product development for the CorMark Pen. Here are some explaination for the given
expenditures.

The administrative cost include the price for land and building for the business including
business fixture and equipment as well as office renovations and motor vehicles. Operations
cost needed for the machinery and factory renovation. One-time start-up cost is the cost for
the beginning of the operation which include installing equipments, starting inventory cost,
office supplies, legal and professional fees and advertising for opening. Lastly, other cost
involve such as deposit, business registration and lisence, insurance and road tax for motor
vehicle and other cost that can be considered.

6.1 Start-up Cost

For the start-up cost, the table below shows the list needed for the start-up cost.

START-UP COSTS RM
Capital Expenditure: Administration
Land and building 525,000
Business fixtures and equipment 100,000
Office Renovation 15,000
Motor Vehicles 55,000
BLUEPRINT (ENT600) : GUIDELINES & TEMPLATE

Capital Expenditure: Operations


Machinery (Blender,packaging and 325,000
assemble)
Factory Renovation 25,000

One-Time Start-up Expenditure


Installation of fixtures/equipment 30,000
Starting inventory cost 150,000
Office supplies 10,000
Legal and Professional Fees 10,000

Other Pre-Operations Expenditure


Deposit (Rent, Utilities, Etc) 1,500
Business Registration and Lisences 1,000
Insurance and Road Tax for Motor Vehicles 3,000
Other Expenditure (Emergency Money) 25,000
Total Cost 1,275,500.00

6.3 Product Cost

The product cost is vary from RM5.00 to maximum of RM7.00. But for starting point, we will
start with the lowest price which is RM5.00. The hardest thing need to be consider is the
making of the ink which require combination of all the coconut milk, chalk, acetone, isopropyl
alcohol and lastly opacify agent.

6.4 Net Profit

The profit will be calculated by the difference of the cost of sales minus the cost of
production.
Raw Production cost for one CorMark Pen:
Body: RM0.50 Tip: RM0.30 Ink Tube: RM0.20 Highlight Tip: RM0.20 Ink: RM0.80 (Cost
of all chemical included per 1 Liter)
Total= RM2.00
Product selling cost = RM5.00
𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑜𝑓𝑖𝑡 𝑓𝑜𝑟 1 𝑝𝑒𝑛 = 𝑃𝑟𝑜𝑑𝑢𝑐𝑡 𝐶𝑜𝑠𝑡 – 𝑅𝑎𝑤 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐶𝑜𝑠𝑡
𝑃𝑟𝑜𝑓𝑖𝑡 = 𝑅𝑀5.00 – 𝑅𝑀2.00
𝑃𝑟𝑜𝑓𝑖𝑡 = 𝑅𝑀3.00 𝑓𝑜𝑟 𝑜𝑛𝑒 𝑝𝑒𝑛
BLUEPRINT (ENT600) : GUIDELINES & TEMPLATE

9. APPENDICES

Attach any material that does nots easily fit into the body of a blueprint such as:
 Resumes of the top management team members.
 Photos or diagrams of product or prototype
 All charts, financials, visuals, and other related items can be placed here and referenced
in the report.
 Market research projections.

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