The sales of SG will total $425,200 with $93,600 from subscriptions and $331,600 from sales of gardens. Revenue for year two raises to $756,800 with $280,800 from subscriptions and $476,000 from sales of gardens. Revenue of the third year increases to $1,109,800 with sales of gardens increasing to $595,000 and subscription revenue to $514,800. Year one to two experiences a 77.8% growth and year two to three experiences 46.7% growth. These numbers are reasonable based on how diligently SG invests in marketing and sales. The reason growth fades from 77.8% down to 46.7% is due to the unlikeliness that extremely high and consistent growth will be sustainable for long periods of time.
The three largest expenses of SG include marketing and selling costs, material costs, and labor costs. The capital spent by the business per square foot is $9.24 (corrected from the original pricing plan), $3 per square foot for a contractor, $3 per square foot of cement, and $3.24 per square foot for sales. Since 17,000 square feet are predicted to be remodeled in the first year, marketing expenses for year one total $55,080. Expenses in the second and third years total $110,160 and $137,700 respectively. For contractors and materials, the first year costs are $51,000 each, $102,000 each for the second year, and $127,500 each for the third year.
The capital needed to fund SG to the point where it would generate positive income would be $3,500,000 (which is the approximate sum of all fixed