Business Report: Launch Of A New Business Selling Goods To UK Markets (Essay).

Produce a formal business report regarding the launch of a new business selling goods to UK markets.  To support your choice of business, you will select to sell one product you wish to make.  State any assumptions you feel necessary to support your report.

The word count of 2,500 words excludes appendices. You must include within the appendices all relevant supporting business planning calculations.  

• State your chosen business type, its trading name and what product (ideally manufactured but not necessarily) you intend to sell.  
  Provide in your own words, background as to the general price of similar goods available in the market, known competitors, assumptions about quantities and cost prices based on research in the market.
  Clearly identify a target selling price for your company’s product, using supporting arguments from your research of the current market and any other source.
  Your product cannot be a service and may be either manufactured or bought fully made ready to sell. (Max 700 words).      
  
• Provide in the main body of the report any assumptions you have made about costs, revenue, demand and supply in order for the reader to understand your calculations contained in your operational budgets. This will involve explaining how you calculated the unit costs elements.
  Also, provide a brief description of any manufacturing process (supply chain process) you need to go through to get the product to market.
  Explain your assumptions about any credit facilities you will use, timing of cash flows and any assumptions to support your Cash flow budget.
  
• Provide in the main body of the report an explanation of the assumptions and interpretation for your Break-even point with supporting calculations.                                                              

• Provide a suitable conclusion highlighting the favourable points from your business idea.                                       
• Marks will be awarded for innovation, originality of approach, report format, relevant references and quotations from suppliers and all business expenses, their websites, etc., competitive benchmarking and supporting calculations. You will need to show your research in this area. Clear citations and referencing in the Harvard Style.
• Produce a per unit cost statement for your product, include selling price and a breakeven point in units and pounds.  

• Prepare a one year Operational budget for each of the cost elements and the production/sales budgets. 

This business report has been prepared to assess the market and accounting element of Ruj’s Wipes. The main feature of this product is that it is a 2 sided wipe, in which first of its side has moisturizer and on the other side, cleanser is there. It is a unique product in the market. It would help the customer to remove the make up easily. In this report, sales budget of the company, purchase budget of the product, selling price of the product, profit, market condition, industry analysis, manufacturing process, cost element, credit policies, cash flows, timing of collection etc has been assessed.

This report will depict the user about the new start up business and its market and finance feasibility. This would help the user to make the best decisions about the business. More, through this report, user could take the help to start the business in the state. It has been found through the analysis, that there are no competitors in the market with such a unique product which is a wipe which have 2 sided cleanser and moisturizer. For this product 5 pound has been set as a selling price.

Business type:

This report depicts the user about the ruj’s wipes that it is a 2 sided wipe, in which first of its side has moisturizer and on the other side, cleanser is there. It has been assessed that this business is of cosmetic industry. In this business, ruj’s wipe would be bought from the suppliers and sold it to the customers through e-business. So basically, it is an e-store business. In this report, the entire elements related to buying and selling through internet has been assessed and found that the business could perform very well in the market.

Selling business is a business in which products are bought with an intention to use the goods as a final good to sell it to its customers. In this business, the product has directly bought from the manufacture and sells it to the final customers through e-portal.

Buying cost:

This report depicts the user about the ruj’s wipes which that it is a 2 sided wipe, in which first of its side has moisturizer and on the other side, cleanser. It has been assessed that for buying the Ruj’s wipes, the total product cost of the company is   £1802.50 for a year. It has been found that company has directly bought it from the manufacturer so the material cost is quite lower.

More, it has been assessed that the variable cost of the company is quite higher than the fixed cost of the company. Product cost of the company is different in each year. It directly depends upon the purchase of the company. Further, it has been assessed that the demand of the product will never be same in every month due to many internal and external factors (Bhimani et al, 2008).

Selling Price:

This report depicts the user about the ruj’s wipes which are two sided, on one side, it has moisturizer and on other side, there is cleanser to remove the makeup. It has been assessed that for Ruj’s wipes, the total selling price of the company is £24,500.00 for a year. It has been found that sales price per unit would be £ 5. It has been assessed that this price has been set by the business after evaluating all the other elements, market condition and competitor assessment (DRURY, 2013).

Business Type

More, it has been assessed that the selling price of the company is quite higher than the COGS of the company. Selling price is always the same of the product, whether it is off season or peak season. It does not depend upon the production of the company. Further, it has been assessed that the demand of the product will never be same in every month due to many internal and external factors.

Variable cost:

This report depicts the user about the ruj’s wipes which are two sided, on one side, it has moisturizer and on other side, there is cleanser to remove the makeup. While assessing over the product, it has been found that the product would be directly bought from the manufacturer to sell it directly to the customers through online portal. Further, it has been found that pound 5,550 are paid as fixed cost for the website maintenance and website hosting and 1.76 pound per unit is given as the total variable cost of the product (DRURY, 2013).

More, it has been assessed that the website creation, website hosing, website maintenance cost of the company is quite higher. Fixed cost of the company is £5,550.00 whether it is off season or peak season. It does not depend upon the production of the company. Further, it has been assessed that the variable cost of the company is £ 8,671.00.

Profit:

This report depicts the user about the ruj’s wipes which are two sided, on one side, it has moisturizer and on other side, there is cleanser to remove the makeup. It has been assessed that for Ruj’s wipes, the total profit of the company is   £10,279 for a year. It has been found that profit per unit would be £ 2.1. It has been assessed that this profit has been set by the business after evaluating all the other elements, market condition and competitor analysis.

More, it has been assessed that the profit price of the company is quite higher than the other firms in the industry. Profit price is always the same of the product, whether it is off season or peak season. It does not depend upon the production of the company. Further, it has been assessed that the demand of the product will never be same in every month due to many internal and external factors.

Website creation and maintenance:

This report depicts the user about the ruj’s wipes which are two sided, on one side, it has moisturizer and on other side, there is cleanser to remove the makeup. It has been assessed that for selling the Ruj’s wipes through online portal, company need to make a website. It has been analyzed through a market study that the total amount of £1,000 will be required to create the website and for hosting and maintaining the website 200 and 200pound would be required respectively.

More, it has been assessed that the profit price of the company is quite higher than the other firms in the industry. Profit price is always the same of the product, whether it is off season or peak season. It does not depend upon the production of the company. Further, it has been assessed that the demand of the product will never be same in every month due to many internal and external factors.

Buying Cost

Break Even Analysis:

This report depicts the user about the ruj’s wipes which are two sided, on one side, it has moisturizer and on other side, there is cleanser to remove the makeup. It has been assessed that for Ruj’s wipes, the breakeven point of the company is 1718 units for a year. It has been found that BEP of the product would be £ 8,590.25. It has been assessed that the variable cost of the company is quite higher than the fixed cost of the company and thus the BEP of the company is quite less. It has been found that the variable cost of the company is competitive for the company and assist it grows in a better way (Horngren, 2009).

More, it has been assessed that the BEP of the company is quite lower than the other competitors of the company. It has been found that company is in a good position right now. BEP analysis of the company also depict that the start up of Ruj’s wipes will perform very well in the market and the business will grow up rapidly.

Current Market:

Currently the market condition of the company is in the favor of the company. Market analysis and economy analysis of the state depict that the market is in the favor of the company as clients like the product and they are shifting towards Ruj’s Wipes. More, the economy of the state is also in the favor of the company. The ruj’s wipes which are two sided, on one side, it has moisturizer and on other side, there is cleanser to remove the makeup offers the best product to the clients with lesser price. It has been assessed that for Ruj’s wipes, the total profit of the company is £10,279.00 for a year (Hansen, Mowen & Madison, 2010).

More, it has been assessed that the profit price of the company is quite higher than the other competitors of the company. Profit price is always the same of the product, whether it is off season or peak season. It does not depend upon the production of the company. So it could be said that company would perform very well in the market.  

Credit policies:

Credit policy of the company has been assessed and found that company offers a great policy to its client to enhance the sales of the company if the client of the company paid the whole amount at the time of order than the client would be able to avail many services of the company (Hansen, Mowen & Guan, 2007).

This policy helps the company to enhance the sales as well as make the goodwill in the market.

Cost element:

. It has been assessed that for Ruj’s wipes, the total selling price of the company is £24,500.00 for a year. It has been found that sales price per unit would be £5. It has been assessed that this price has been set by the business after assessing all the other elements, market condition and competitor analysis.

Selling Price

Further, it has been assessed that for Ruj’s wipes, the total profit of the company is £                      10,279.00 for a year. It has been found that profit per unit would be £ 2.09. It has been assessed that this profit has been set by the business after evaluating all the other elements, market condition and competitor analysis.

More, it has been assessed that for Ruj’s wipes, the breakeven point of the company is 1718 units for a year. It has been found that BEP of the product would be £ 8,590.25. It has been assessed that the variable cost of the company is quite higher than the fixed cost of the company and thus the BEP of the company is quite higher.

While evaluating over the product, it has been found that the product would be directly bought from the manufacturer to sell it directly to the customers through online portal. Further, it has been found that pound 5,550 are paid as fixed cost for the website maintenance and website hosting and 1.76 pound per unit is given as the total variable cost of the product.

Timing of cash flows:

As the credit policy of the company has been assessed and found that company offers a great policy to its client to enhance the sales of the company if the client of the company paid the whole amount at the time of order than the client would be able to avail many services of the company. Thus the cash flow of the company is also raised accordingly.

Thus it could be said after the credit policy and the reports analysis that the cash inflow of the company happens at the time of selling the product while the cash outflow take the place while buying the product, wages to labor, delivery charges and the packaging charges at the time of paying other expenses of the company (Hopper, Northcott, & Scapens, 2007).

Interpretation:

Through the reports, the total selling price of the company is £24,500.00 for a year. It has been found that sales price per unit would be £ 5. It has been assessed that this price has been set by the business after evaluating all the other elements, market condition and competitor assessment.

Total profit of the company is   £10,279.00 for a year. It has been found that profit per unit would be £ 2.0978. More, it has been assessed that for Ruj’s wipes, the breakeven point of the company is 1718 units for a year. It has been found that BEP of the product would be £ 8,590.25.

While assessing over the product, it has been found that the product would be directly bought from the manufacturer to sell it directly to the customers through online portal. Further, it has been found that pound 5,550 are paid as fixed cost for the website maintenance and website hosting and 1.76 pound per unit is given as the total variable cost of the product.

Recommendation and conclusion:

Through assessing the business report of the company, it has been found that the business could be performed very well in the nation. If it made some changes into its credit policy than the sales of the company could also enhance more. Further, company is required to spend more money on the marketing to enhance the sales of the company.

Further, it has been assessed that the company is required to make some changes into its process so that the more products could be sold to the customers. Thus it could be concluded that this business could perform very well into the nation.

References:

Bhimani, A., Horngren, C. T., Datar, S. M., & Foster, G. 2008. Management and cost accounting (Vol. 1). Pearson Education.

DRURY, C. M. 2013. Management and cost accounting. Springer.

Garrison, R. H., Noreen, E. W., Brewer, P. C., & McGowan, A. 2010. Managerial accounting. Issues in Accounting Education, 25(4), 792-793.

Hansen, D. R., Mowen, M. M., & Madison, T. (2010). Cornerstones of cost accounting. Issues in Accounting Education, 25(4), 790-791.

Hansen, D., Mowen, M., & Guan, L. 2007. Cost management: accounting and control. Cengage Learning.

Hopper, T., Northcott, D., & Scapens, R. 2007. Issues in management accounting. Pearson education.

Horngren, C. T. 2009. Cost accounting: A managerial emphasis, 13/e. Pearson Education India.