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Business Plan for Implementation of Job Exchange Program

Executive Summary

The globalization and technological advancement have provided the world with the exposure of new business revenue streams. Where globalization has broadened the style of business no matter the what is the nature of the business, but there are a number of elements which greatly influence the performance and derive the limitations for small and medium enterprises. In accordance with market research, it has been observed that around 80% of the small business does not expand the business due to limited financial resources, insufficient market knowledge, and access to the global world.

The current business plan developed to align the all necessary activities that can help to enhance the success of the job exchange program.  Keeping the perspective, the management of the program has identified its key objectives and mission statement to gain the reportable imagine the market.  In order to visualize the future perspective, we have conducted the market research and also developed the marketing plan to introduce our innovative service to achieve the financial stability of the company.

This business plan explains the strategy for implementing a new job exchange program being a website that will provide the target market of former students from this private university in Mexico a way to find suitable jobs that match their needs and abilities.

The main benefit from this job exchange program is the fact that many of its university students struggle with finding a job that suits them. This way we can provide help and guidance as to what jobs are really out there and help them with getting in contact for an interview. Companies also will be benefited because joining us in this program will help them get suitable candidates for their opening job positions.

To become fully operational, we have forecasted our financial resources and evaluated the total required budget for our project. The management of the job exchange program has estimated the required capital of $30,000 for the development of the office, equipment installation, and other operational expenses. Therefore, $30,000 will help us to initiate the job exchange project. We will be investing this ammount so there is no need to factor any loan payments.  With additional revenue structure, we are expecting to achieve the profit target of $15,000 after excluding all the operational expenses. In accordance with industry forecast, we are expecting to achieve the growth of 25% each year which will enable by reaching the net income $104,405 after three years of business operations.

Based on our skills, leadership capabilities, and skilled human resource we are confident to drive success in the future. We are progressive, dynamic, and exceptional in everything we do. We possess a strong desire to serve our clients through providing excellent independent services. Experts in the local area and an integral part of the community we serve, we strive to build a strong reputation with our customers and want to recognize in the locality for our transparent, caring, client-centered approach, our reputable, friendly teams, and our outstanding successes.

Business Overview

As Mexican Private University central job exchange program, we will be offering services to all former students from all faculties, universities, and departments at all levels from graduates to postdocs and recent alumni, are also eligible to opt into our services. The program is distinctive among Mexican Private University services in that we will be supporting former students in terms of seeking jobs and submitting an application at the spot.

For the job exchange program, we will be collaborating with staff & units across campus, faculty and having ongoing partnerships with employers and community organizations. Furthermore, the website will be developed for the students to update their former studies record, job preference and also available for advertising to generate revenue. We will be contributing to improving the personal and professional development of the former students by offering them academic, work and cultural opportunities across the state, which will be complementing their professional profiles and have expanded their horizons and professional expectations.

Mission Statement

“our mission to deliver high-quality career and job exchange programs, resources and events and to develop a supportive network where students will be able to enhance their career development.”

Vision Statement

“Our vision is to see every other former student get to engage in career exploration in a manner that enhances their career development and enable to achieve their career goals and make a positive contribution to the society.”

Benefits and Unique Selling points

The key benefits of this job exchange program are as follows:

  • A job exchange program will help the former students to find career opportunities and offers flexible registration process.
  • Students will be able to find their desired jobs and salaries by updating their profile on the website.
  • The job exchange program offers employment counseling and training suggestions, and skilling and training opportunities.
  • Easy job search between jobs in companies and candidates as the all the data will be stored in one place.

Below is the list of job exchange program’s unique selling points offering competitive advantages among other organization offering similar services:

  • The program offers registration for both employers and job seekers as this ICT based program being developed to connect opportunities with the students.
  • The website will provide the detailed information of the employment offices, vacancies across the state.
  • The students registered with this program will be able to submit the application or sharing their resume on the spot, unlike other organization that only refers the client to the specific location to meet the further requirements or to follow steps for submitting an application for their desired jobs.
  • Core unique selling point of this program is that the website will be generating revenue from advertising only which means the other discussed services are free for both the students and the employers.

Target Audience and Sales Channel

Based on the research, the unemployment rate in Mexico has always been averaged at 3.77 percent from the year 1994 till date whereas the jobless rate remained unchanged from past few years. Accordingly, in Mexico, the young and educated professionals have the highest unemployment rate as the government economic development policies have failed. The government’s neo-liberal economic model has resulted in limited investments, restricted wage growth as the priority of the model was only on stabilizing the price. According to Mexico’s national institute, IT and geographic the unemployment rate of 4.9% was recorded among economically active people aging 20-24 years.

Basically, the people we intend reaching out to be youths of diverse race and culture who live in Mexico. Those who are unemployed seeking jobs and the employers who are not willing to invest in recruiting can have the benefits from our job exchange program. Furthermore, we will be collaborating with the organizations that we know will be interested in working with us to achieve our ultimate goal.

As we are providing services through website platform, therefore, we want to callously refuse to accept the old way as the only way and focus on doing what needs to be done and create great art, our work is our art, and we will do it with such precision that we create a legacy. Below are the sales channels we will include as they heavily rely on our ability to tell stories that our target audience will relate to.

Method Detail
Call, Text message and email
  • Tele calling online classified customers and converting
  • Bi-monthly newsletters and seasonal promotions/campaign
  • SMS/Email campaigns
Social media
  • Content marketing and management
  • Social media pages management & administration, creative marketing
  • Member and community engagement
  • Web Traffic driving campaigns – SEO, Ad Sense & SEM
Events
  • Events and campaigns (Community-driven initiatives)
  • Whiteboard animation videos on all SM
  • FM radio
Internal marketing
  • Daily & weekly promotion boards
Print Media
  • Use of 300 to 600 oversized flyers & mailers monthly
  • University magazine
  • Professionally written Press release’s
  • Door & wall hangers within the campus
  • Newspaper Ads

Operational Plan

Since our organization has taken the initiative relatively early in the development of the website for providing the career and business development opportunities through an online platform for the students and employers of Mexico where we’re able to source professionals with hands-on, real-world experience. However, a considerable amount of investment of financial resources is needed to develop operation of the organization on which company will offer services through effective channels of advertising.

At first, our services are not new because it already exists in the market. However, we want to achieve that impact through advertising and the image of our services, and so people remember it in a very peculiar way. The company will be hiring qualified and experienced staff to provide extraordinary services to our students and employers as we are also concerned with profitability and efficiency of the company which will make us different from all competitors that are already operating in the same segment of the business. Considering the case, to achieve our objective, we have derived our operational plan to start our operations.

  • Development and evolution of the website’s features (enhancing existing features of the site, creating new sections, updated information, new channels, new events services, customer satisfaction surveys, etc.)
  • The opening of the new Departments
  • Constant updating and improved technology and technical skills of the staff.
  • Legal and licensing documentation
  • Implementation of advanced performance and management reporting standards to maintain the operational process in an effective manner.

Moreover, the human resources policy aims to participative management, both in terms of task delegation and decentralization, as the notification of the result. The goal is to be a competent team and committed to the business. Our business model will mainly focus on the following elements to enhance the productivity and performance of the job exchange program.

  • Hiring the labor Resource
    • Website development
    • Designing & approval of Infrastructure.
    • Completion of Project
    • Finalization of Project
  • Recruitment &Partnership
  • Procedures, project management team; documentation
  • Partnership with Advertising agencies and subscription with major companies or organization operating in the same segment of the business
  • Allocating the resources
  • Professional supervisor arrangements
  • Full contracts acquisition, because full contract provides more opportunities to support the business financially.
  • Marketing and Sales
    • Advertising, promotions, development of new channels and new partnerships

Timeline Development

  1. Website Development:Customized Designing, functions, Hosting & Domain.
  2. Business Development Center:Acquiring space to administer its operations and to maintain functionality
  3. Advertising Contracts:Contracts with agencies that will advertise on our behalf
  4. Online Payment Gateway Integration:Credit & Debit Cards (advertising for small business)
  5. Consumer Groups:Identifying consumer group through effective marketing Strategy
  6. Marketing Campaign: Social media & E-advertisement 
 Milestones Month 1 Month 2 Week-7 Week-9 Week-10
Website launch
Business Development Center
Service  contracts
Online Payment Gateway for Credit and Debit Cards
Consumer groups
Marketing campaign

Promotion & Strategy

To build a market presence that truly expresses a brand’s voice; we are planning to introduce the social and digital media to promote our products & services for the people of Mexico. For better communication with our customer and key stakeholders, we aim to build a website to display our services and answer the queries of our clients. To achieve the sales objective, Social media and targeted ads will engage potential customers at exactly the right moment and on the correct platforms. In due course, we will derive our unique target pitch and online platform for better communication with our customer. To promote our services, we will promote our website through social media and through a digital medium we will develop a unique message with our capabilities.

Market Analysis

Target market

As we are also offering advertising services for small businesses, we aim to target small businesses within Mexico and the United States. The definition of small business varies, as Small Business Administration also includes companies with 100 employees as small businesses. By definition, our primary target market will include business with less than 30 employees; the market analyst states that there are more than 55.8 million small businesses in Mexico and the United States operating their business with less than 30 employees. Considering the facts, we aim to convert .1%of the total market at the end of our first financial year, and we expect to grow with the average growth of 10% each year.

Competitive Edge

  • Competitive Prices for advertisement
  • High-Quality Services Policy
  • Payment security structure
  • Business Development Executive
  • Promotional campaigns
  • Digital and Media presence
  • A highly skilled workforce with extensive market knowledge and trends
  • Updated research & development
  • Customer orientation policies

Marketing Strategy

To introduce our website for Job Exchange program and advertising for small business, the managing team of the program will use Social media strategy at the initial stages to gain the customer attention. For further development of the marketing strategy and promotion plan, the 7 P’s marketing model included driving the intentions with precise details of the process (“CatalinZorzini,” 2017).

Product

The sale of the advertisement services represents a profitable business opportunity. The daily demand is high and increases during times of the year such as holidays and festivities. It is one of the businesses that benefit from the 4 seasons. Accordingly, along with job exchange services the company will be offering advertisement services to generate revenue.

Price

The pricing strategy is another important variable to position the business in the highly competitive market. Through our website, we will be offering competitive pricing strategy for our customers. Though the company is offering its services to all small business across the state and United States but based on the market research and competitor’s profile, the company management has intended to set the lowest possible transaction fee to get a maximum market share. In accordance with the need of the customer, the management has developed some competitive market prices against the services the company is offering. These prices are market competitive. We ensure delivery of quality services to our clients, and we have set the price according to the market rate after analyzing the cost and budget.

Place

As we are introducing job exchange program and being funded by the Mexican Private University, therefore we will be positioning our office in the university premises.

Promotion

In accordance with our marketing strategy model, initially, we will opt Facebook, Twitter, and other major social media pages by creating our own page on each platform. Moreover, we will discuss our marketing process on a monthly basis after receiving the response from the target market, because effective marketing is all about knowing yourself and setting standards. The platform we use to convey our message might change as technologies evolve, but we want to make sure that our message remains same with the evolution of our services. We strive to be consistent across all platforms, communicating our brand in a clear, strong voice. 

Processes

Our website will be easy to use and user-friendly which can be accessed from almost all of the search engines such as Google, Bing, Safari, etc.

People

For the operational needs, our management includes CEO who will lead the team with its leadership capabilities, skills, and market exposure. Our hierarchy will follow the director operations, and  the director will supervise all operations and provide guidelines for organizational objectives.

  • Chief Executive Officer (Owner)
  • Sales and Marketing Manager
  • Information Technologist
  • Accountants

Physical Location

Our company will feature primarily sell through its web by providing the range of promotional services. In this case disclosure of physical location is not ethically necessary. However, to perform technological, operational and administrative channels of the web, we will set our head office or service center in Mexico to gain the trust of our valued stakeholders. Along with that, the web presence will help to enhance the communication between the customer and the company. Based on the location requirements, we have selected a location where we can arrange sufficient resources to support our operations.

Program Environment Analysis

Industry analysis

The most affected by unemployment in Mexico are young people. Official figures show that the majority of those who do not find work are people between 14 and 29 years of age. Despite the problem, the country does not have effective public policies to incorporate young people into the formal work environment. Specialists explain that the Mexican state socially and economically wastes a quarter of its population. In Mexico, a tenth of young people does not have a job. The problem is more serious when one in four people in the country is young, and one-third of the economically active population (PEA, calculated at 47 million 131 thousand 536 individuals) is also young.

Mexico Labor Force Participation Rate

Source: https://tradingeconomics.com/mexico/labor-force-participation-rate

And it is that of the more than 112 million Mexicans, 30 million are young. Of these, at least 1 million 512 thousand do not find employment. According to the International Labor Organization (ILO), during the economic crisis of 2009, young people were the most affected by unemployment. The National Occupation and Employment Survey (ENOE) shows that in Mexico more than half of the currently unemployed are between 14 and 29 years of age and that this problem is most present in the age group of 20 at 24 years old

Source: https://www.statista.com/statistics/263702/unemployment-rate-in-mexico/

With this, the demographic bonus of the country -which occurs when the population of working age is greater than the dependent population and, therefore, increases the productive potential-, instead of being taken advantage of, it is being diluted in phenomena such as the migration of young people, their incorporation into informality or organized crime, or their total unproductively.

Pest Analysis

The management to conduct PESTEL analysis exceeds its services by hiring an expert HR and Business Analyst and to help us create a business model that will help us to achieve our business goals and objectives (Yuksel, 2012). This is the summary of the PESTEL analysis that was conducted for the job exchange program;

Political

  • Support: Our organization will abide by the existing legislation and regulatory bodies of government there will be complete ban illegal usage of the services that we are offering to small business.
  • Stability: Our company has more political stability as in one aspect we follow the rules, and we will establish this in main growing cities of the country which has aided us to connect to high-speed internet networks. There will be no illegal use of the website and benefit us from a tax deduction, subsidies, and loans that will lead to our stability to exceed our business plan.

EconomicOur Company has an economic review about its services, but there are some revenues which have to be paid as per service there is taxation and charges for the organization annually due to extra use of electricity, gas, and exchanges. Due to our reliable advertising services, we will have a tendency to cooperate with multinational companies too.

Social: Our Company has resolved the social problem to a great extent as are the main goal is to contribute towards the society in terms of employment. Our job exchange program also plays a role for the employers or organization that don’t have enough budget for hiring recruitment agencies. In accordance with social and ethical issues, there are some solutions we are providing to our former students such as cutting-edge matching technology that will transform the recruitment process and connect candidates and employers with each other.

Technological: Our services will be available on our online platform as we are going to develop a website for this purpose and there will be facility signing up free of cost. There will be advertisement through online pages and make groups on Facebook and Twitter. Our company will facilitate an upgraded an efficient channels for the advertisement. Taking into account for our industry technology is used to improve the quality of used ingredients.

Legal: Our organization has promoted the legal performance of every step as advertising. Our services are legal because we are helping both the students and the employers and our contribution towards the society. Our job exchange policies with employers fall under government policies, so there is no change of tax evasion.

Porter’s 5 Forces Analysis

Threats of New Entrants

The threats of new competitor refer to the potential entry of new companies that produce or sell the same type of product or services (David, 2011). Our business model relates to the online job exchange platform, therefore, access to multinational carry lot of strong barriers that most of the times develop hesitations among the businesses with limited financial and human resources. In our target market, we have observed the following entry barriers for other business.

  • Need to obtain technology and specialized knowledge.
  • Lack of experience and research about the organizations and employers
  • Strong consumer loyalty to certain brands
  • Capital needs.
  • Government regulatory policies
  • Saturation of the market

The threat of Substitute Products

  • Risk: after developing an industry an organization is always at risk, but our company has its services made in controlled conditions where there are least chances of being rejected in the society.
  • Brand loyalty: our brand is reliable, and we will make our trust in the community after a few applications of services of our company. There will be complete customer care, and we have a convenient manual to use our website. Our company keeping in view the needs of the customer will provide higher service as return and exchange policies.

The Power of Buyers

  • High Number: the high quality of our services is proud of our company will lead to its more sales in customers. Our company is just a few of them who have facilitated the buyers of online advertising, so this strategy has led to more production of our services.
  • Competitors: there are many competitors who have made its name but now on after being the inauguration of our company all other organization will lag us. Because we have a standard of our management and most important of our employees in order to have more favor of our products

Power of Suppliers

  • High Number: our company has every service which is of unique type and has its own type such kind of suppliers with reliable services are least, and our organization will make itself distinct from it.

The level of revelry

  • Direct competitors: due to new entrants in business our company has to face many challenges, but we have faced this challenge by making our services convenient for customers which will lead to high rate of our company. 

SWOT Analysis

The managing team is highly concerned about the risk associated with the company and the market. In due course, the strength, weaknesses, opportunities, and threats have been recognized to compete in the market.

Strengths:

  • Competitive advantage – personal component
  • R&D investment
  • The short time frame required in order to find the desired job for students
  • Complete sales and marketing facility for member companies
  • A Strong workforce with the prior knowledge of Marketing and Management techniques is the strength of this company.
  • Aggressive advertising strategy is a source of competitive edge for this Mexican based consultancy firm.

Weakness

  • Possible website functionality – needs to be easy to use, navigate, find what you want
  • Overhead cost allocation and recognition at the initial stages of the business
  • Lack of resources is one of the major weaknesses of the online job exchange platform.

Opportunities

  • Already overcome any barriers to entry through the extensive investment of time, equity, capital, business managers and extensive research and development
  • Unique personal component offer differentiating opportunity from competitors (difficult to duplicate on a global scale)
  • The average growth of 12-16% Annually provide and open the door to enjoy a profitable business

Threats

  • Other job exchange websites will copy if successful – need to protect our members from being stolen by up and coming competitors.
  • Presence of strong market players

Financial Plan

Start-up Plan

The management of the job exchange program has estimated the total budget needed to capture market share. In due course, the management is intending to spend the amount $5,000 to develop the fixed assets including Short and Long-term assets and operating expense such as licenses of the company. Based on the apparent expenses and market research the management of the company has allocated the total amount of $25,000 for the operating, marketing, advertising and pre-opening payrolls expenses for the first financial period. However, the company will allocate the funds by a further sales forecast of the company. Below is the table presented with the detailed description of the expenses and utilization of funds to enter the market. The initial expense has been forecasted with the amount of $30,000.

Required Start-Up Funds Amount   Totals
  Fixed Assets
  Equipment $2,000.00
  Furniture and Fixtures $1,000.00
  Office Renovation $1,000.00
  Other Fixed Assets (Equipment) $1,000.00
  Total Fixed Assets $5,000.00
  Operating Capital
  Pre-Opening Salaries and Wages $11,500.00
  Website Development $5,000.00
  Advertising and Promotions $5,000.00
  Licenses $1,000.00
  Networking and IT $2,500.00
  Total Operating Capital $25,000.00
Total Required Funds $30,000.00
Sources of Funding Amount Totals
  Owner’s Equity 100.00% $30,000.00

Financial Forecast and Assumptions

Income Statement

Considering the sales forecast for the company, it is estimated that the company will earn the total revenue of $90,720 during the first financial year. At the initial stages of the company financial operations, the forecasted figures have shown the average gross profit of $5,248 during the first 4 months, but with the passage of time, the higher turnover of sales unit will help to generate the profit during the first financial year. Accordingly, the total salaries of the organization have been estimated with the amount of $22,172, and the fixed operating expenses are forecasted with the amount of $12,120 for the first financial year. Additionally, the company intends to generate the net profit target of $15,316 by the end of the year 2018.

        Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Income
  Advertising $6,300 $6,300 $9,450 $7,020 $7,020 $7,200 $7,290 $7,560 $7,560 $8,550 $8,100 $8,370 $90,720
Total Income $6,300 $6,300 $9,450 $7,020 $7,020 $7,200 $7,290 $7,560 $7,560 $8,550 $8,100 $8,370 $90,720
Total Cost of Sales $1,750 $1,750 $2,625 $1,950 $1,950 $2,000 $2,025 $2,100 $2,100 $2,375 $2,250 $2,325 $25,200
Gross Margin $4,550 $4,550 $6,825 $5,070 $5,070 $5,200 $5,265 $5,460 $5,460 $6,175 $5,850 $6,045 $65,520
Total Salary and Wages $1,848 $1,848 $1,848 $1,848 $1,848 $1,848 $1,848 $1,848 $1,848 $1,848 $1,848 $1,848 $22,172
Fixed Business Expenses
  Bank Charges $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $600
  Book Keeping $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,200
  Automobile Expenses $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $1,800
  Website Domain $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $600
  Miscellaneous $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,200
  Repair and Maintenance $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $1,800
  Office Expenses & Supplies $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,200
  Telephone and Internet $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $1,320
  Utilities $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $2,400
Total Fixed Business Expenses $1,010 $1,010 $1,010 $1,010 $1,010 $1,010 $1,010 $1,010 $1,010 $1,010 $1,010 $1,010 $12,120
Other Expenses
  Amortized Start-up Expenses $694 $694 $694 $694 $694 $694 $694 $694 $694 $694 $694 $694 $8,333
  Depreciation $139 $139 $139 $139 $139 $139 $139 $139 $139 $139 $139 $139 $1,667
  Taxes $311 $311 $766 $415 $415 $441 $454 $493 $493 $636 $571 $610 $5,912
Total Other Expenses $1,144 $1,144 $1,599 $1,248 $1,248 $1,274 $1,287 $1,326 $1,326 $1,469 $1,404 $1,443 $15,912
Net Income $548 $548 $2,368 $964 $964 $1,068 $1,120 $1,276 $1,276 $1,848 $1,588 $1,744 $15,316

Cash Flow Statement

Based on the total cash flows of the business, although, the management has retained no amount as working in hand capital and this has affected the organizational financial strength due to low profits in the first four months of operations. In accordance with the financial statement, the total inflow has been estimated with the amount of $89,046 during the second financial period. Accordingly, the total outflows are estimated at the amount $65,404 which includes salaries, depreciation, taxes and all other operating and variable expenses during the first financial year. The operating profit of the company was low during the first year, but with the efficient management, the company has retained the ending balance of $23,642 during the year 2018.

        Mon1 Mon2 Mon3 Mon4 Mon5 Mon6 Mon7 Mon8 Mon9 Mon10 Mon11 Mon12 Totals
Beginning Cash Balance $0 $432 $2,125 $4,075 $6,773 $8,986 $10,022 $12,411 $14,960 $16,123 $19,242 $22,325
Cash Inflows
  Income from Sales $5,040 $5,040 $7,560 $5,616 $5,616 $5,760 $5,832 $6,048 $6,048 $6,840 $6,480 $6,696 $72,576
  Accounts Receivable $0 $1,260 $1,260 $1,890 $1,404 $1,404 $1,440 $1,458 $1,512 $1,512 $1,710 $1,620 $16,470
Total Cash Inflows $5,040 $6,300 $8,820 $7,506 $7,020 $7,164 $7,272 $7,506 $7,560 $8,352 $8,190 $8,316 $89,046
Cash Outflows
  Investing Activities
  Cost of Sales $1,750 $1,750 $2,625 $1,950 $1,950 $2,000 $2,025 $2,100 $2,100 $2,375 $2,250 $2,325 $25,200
  Operating Activities
  Salaries and Wages $1,848 $1,848 $1,848 $1,848 $1,848 $1,848 $1,848 $1,848 $1,848 $1,848 $1,848 $1,848 $22,172
  Fixed Business Expenses $1,010 $1,010 $1,010 $1,010 $1,010 $1,010 $1,010 $1,010 $1,010 $1,010 $1,010 $1,010 $12,120
  Taxes $0 $0 $1,387 $0 $0 $1,270 $0 $0 $1,439 $0 $0 $1,816 $5,912
Total Cash Outflows $4,608 $4,608 $6,870 $4,808 $4,808 $6,128 $4,883 $4,958 $6,397 $5,233 $5,108 $6,999 $65,404
Cash Flow $432 $1,692 $1,950 $2,698 $2,212 $1,036 $2,389 $2,548 $1,163 $3,119 $3,082 $1,317 $23,642
Operating Cash Balance $432 $2,125 $4,075 $6,773 $8,986 $10,022 $12,411 $14,960 $16,123 $19,242 $22,325 $23,642
Ending Cash Balance $432 $2,125 $4,075 $6,773 $8,986 $10,022 $12,411 $14,960 $16,123 $19,242 $22,325 $23,642

Balance Sheet

While estimating the financial strength of the company, it is estimated that company has increased its current assets to $41,983 whereas the total fixed assets accumulate the total worth of $5,000 at the end of the first financial year. As the business is founded on the basis of owner equity, so, the balance sheet has observed the outstanding amount of liabilities of the company. After the addition of retained earnings of first financial year, the total equity of the company has been observed with the amount $45,315.

          Base Period     End of Year One
Assets
  Current Assets
  Cash                                           –                                  23,642
  Accounts Receivable                                           –                                    1,674
  Prepaid Expenses                                  22,500                                  15,000
  Other Current                                    2,500                                    1,667
  Total Current Assets                                  25,000                                  41,983
  Fixed Assets
  Equipment                                    2,000                                    2,000
  Furniture and Fixtures                                    1,000                                    1,000
  Office Renovation                                    1,000                                    1,000
  Other Fixed Assets (Equipment)                                    1,000                                    1,000
  Total Fixed Assets                                    5,000                                    5,000
  Less:  Accumulated Depreciation                                           –                                    1,667
Total Assets                                  30,000                                  45,315
Liabilities and Owner’s Equity
  Owner’s Equity
  Common Stock                                  30,000                                  30,000
  Retained Earnings                                           –                                  15,316
  Total Owner’s Equity                                  30,000                                  45,316
Total Liabilities and Owner’s Equity                                  30,000                                  45,315

Three-Year-End Summary  

          The year 2017 % The year 2018 % The year 2019 %
Income
  Advertising $90,720.00 $136,080.00 $238,140.00
Total Income $90,720.00 100.00% $136,080.00 100.00% $238,140.00 100.00%
Total Cost of Sales $25,200.00 27.78% $37,800.00 27.78% $66,150.00 27.78%
Gross Margin $65,520.00 72.22% $98,280.00 72.22% $171,990.00 72.22%
Total Salary and Wages $22,171.80 24.44% $15,105.30 11.10% $16,542.33 6.95%
Fixed Business Expenses
  Bank Charges $600.00 $612.00 $636.48
  Book Keeping $1,200.00 $1,224.00 $1,272.96
  Automobile Expenses $1,800.00 $1,836.00 $1,909.44
  Website Domain $600.00 $612.00 $636.48
  Miscellaneous $1,200.00 $1,224.00 $1,272.96
  Repair and Maintenance $1,800.00 $1,836.00 $1,909.44
  Office Expenses & Supplies $1,200.00 $1,224.00 $1,272.96
  Telephone and Internet $1,320.00 $1,346.40 $1,400.26
  Utilities $2,400.00 $2,448.00 $2,545.92
Total Fixed Business Expenses $12,120.00 13.36% $12,362.40 9.08% $12,856.90 5.40%
Operating Income (before Other Expenses) $31,228.20 34.42% $70,812.30 52.04% $142,590.77 59.88%
[EBITDA]
Other Expenses
  Amortized Start-up Expenses $8,333.33 $8,333.33 $8,333.33
  Depreciation $1,666.67 $1,666.67 $1,666.67
Total Other Expenses $15,912.31 17.54% $23,829.13 17.51% $38,184.82 16.03%
Net Income $15,315.89 16.88% $46,983.17 34.53% $104,405.95 43.84%

Financial Ratios 

    Year 1   Year 2   Year 3
SG&A to Sales 37.8% 20.2% 12.3%
Net Profit Margin 16.9% 34.5% 43.8%
Return on Equity 33.8% 50.9% 53.1%
Return on Assets 33.8% 50.9% 53.1%


References

Industry

https://tradingeconomics.com/mexico/unemployment-rate

https://www.statista.com/statistics/263702/unemployment-rate-in-mexico/

CatalinZorzini. (2017). E-commerce Platforms. Retrieved 13 January 2018, fromhttps://ecommerce-platforms.com/ecommerce-selling-advice/10-easy-steps-to-establishing-an-online-retail-store

Yüksel, İ. (2012). Developing a multi-criteria decision-making model for PESTEL analysis. International Journal of Business and Management7(24), 52.

David, F. R. (2011). Strategic management: Concepts and cases. Pearson/Prentice Hall.

Grundy, T. (2006). Rethinking and reinventing Michael Porter’s five forces model. Strategic Change15(5), 213-229



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