One of the most essential things to note concerning a new business is the fact that it should be in a position to break even between the first and the sixth month. This will ensure that it is able to start making profits by the start of the seventh month, in order to not only pay back, for example the employees, but also make substantial profit, which is necessary in any business corporation or organization with a profit-making agenda. Considering this, therefore, it should be noted that the business should be in a good position to break even by the 6th month.
In this case, therefore, below is a breakdown of the revenue that the business should plan to collect in three years.
Expenses Annual Amount in US$1000
Raw material 40
Total Expenditure 59
Therefore, considering the fact that the corporation will have spent US$59,000 in a year’s expenditure, this means that it should make revenue six times the expenditure, in a period of three years. However, it is necessary to note the fact that this is the minimum amount of revenue that the corporation should collect.
Total collected revenue = 59,000X6
Considering that this is a new business that is being established, it will be necessary to resister the business for taxing with the city of Chico as the first step, and this will involve filling of Business License Tax Application at the City of Chico's Finance Department. This department is located along the 411 Main Street. Upon this completion, the Finance Department of the city will issue the business entity with a working permit and a license. This business entity will require a flat rate tax. One of the most essential things to note concerning licensing, however, is the fact that renewal for the working permit and the consequent license will be done annually. This means that the company will be required to renew the license at the same offices every year, in order for it to legally operate (Betrand, et. Al, 2009).
Advertisement is the best strategy to use in getting the product to the market. However, there are several aspects that are necessary to consider, especially, when advertising the product to the market. Firstly, it is necessary to note the fact that advertising should be necessarily done to the right market. As a result, the corporation will be in a good position to save finances, since advertising the products to the right market will not only make sure that as minimal resources as possible is possible, but also make sure that the advertising is effective. At the same time, it is necessary to note the fact that Chico California is a middle level residence. In this case, therefore, this should be put into consideration, especially when pricing our drink products. It should be ensured that the products’ prices fit in Chico’s economy. This will ensure that the products target the same market that is in the region, and consequently, this will lead to recording of higher sales (Goldin, 2008).
At the same time, advertising is one of the most essential factors to put into consideration, even with quality products being the main goal that Blind-It has. Marketing and advertisement plays a major role in not only accessing the target market, but also ensuring that the advert convinces, encourages and motivates the target customers to not only check out, but also, actually purchase the products. In this case, therefore, it will be necessary to target the specific market that will be interested in our products through the lifestyle and informal magazines, as well as the audio and visual media in Chico (Sherrill, 2010). Lastly, it is necessary to note that other marketing and advertising methods such as the internet and social media are some of the ways through which we can access the market, especially, considering the fact that these are the mediums through which the young people, who constitute a large percentage of our markets can be accessed. With this in mind, therefore, some of the mediums to use in advertising include SPIN Magazine, KZFR Community Radio, Northstate Public Radio and The InSideOut Magazine. This is due to the fact that these are not only the mediums through which we will be able to communicate with as many people as possible, but also based on the fact that they target the same market that we target with our products (The Economist, 2011).
Acquisition of raw materials
Lastly, acquisition of raw materials for production are accessible from the city, considering the fact that the city of Chico is a metropolitan, and one of the cities in the state of California that has raw material for food and beverages, as well as textile. This is necessary, since it will reduce the amount of resources that would have been otherwise used to purchase products from other markets and cities beyond, such as Las Vegas and Los Angeles, which are the main cities in the state (Wood, 2003).
Bertrand, M., Goldin, C. & Katz, L. (2009). Dynamics of the gender gap for young professionals in the financial and corporate sector. New Jersey: Prentice Hall, pp. 89-92.
Goldin, C. (2008). Gender difference in careers, education and games. New York: McGraw-Hill, pp. 116.
The Economist. (2011). Women and work: Special report, November 2011. New York: Prentice Hall, pp. 112-134.
Sherrill, A. (2010). “Women and Management: female managers’ and pay,” United States’ Accountability Committee, 2010.
Wood, R. (2003). “Pay differences among the highly paid: The male-female earnings gap in lawyers’ salary.” Journal of Labor Economics, Vol. 11 (3), 1993.