Start Up Budget For Early Bird

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Start-Up Budget:
The start-up budget for Early Bird is estimated at £10,463.78. This budget will solely be used on set-up costs which consist of initial operational costs as well as purchasing vital items for the business to run. Figure (x), located below is a monthly Set-Up cost forecast which is at Early Bird’s expected market share; alternatively, worst case and best case scenarios can be seen in the financial worksheet section.
Figure (x) The start-up budget is funded by an initial cash injection of £10,000 from a group of investors. The initial cash will be borrowed for 24 months at a competitive fixed interest rate of 7% (Government 6%). Members of the management will place covenants on personal property in order for this start-up loan to be accepted. The £463.78 excess will be covered by a business overdraft. An overdraft has been chosen as Early Bird will soon have a positive balance once trading commences.

Operational Costs:
Once EarlyBird is funded and starts trading, an operational cost budget will be used. This displays the day to day running costs of the business. The company will start selling goods in month 2, once start-up goods have been received and processing which is required to run the business has been completed. Month 2 is also when the average operational budget will be used. This budget can be seen in further detail below in figure (x).

Figure (x)

Projected Profit:
The projected profit for Early Bird in its first year of operation is
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