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Feasibility Report EssayThe company testament sell custom-made barrooms, cupcakes and coffee. The grosss from the dividing line exit come from the sale of decorated cakes and cupcakes, as well as coffee for customers who visit the shop. The business leave raise revenue from service cake decoration and creation of the centerpieces of many of the most remarkable occasion of the lives of clients. Service revenue exit come from different customized cake designs, decoration and bake creations. The business will use many different designs as discussed by Graham (2007) and Wilson (2011). The major revenue source during the initial year will be service revenue, including drink, cakes, and cupcakes sales. The business embroils walk-in service. It will have two decree delivery channels phone orders and via online ordering. In addition, parking bays will be provided at a fee. The communicate revenue from parking bays will be $75000 per year. The revenue from the sale of cupcakes, cakes and drinks is projected to be $100000 yearly. The revenue from custom-making service will be $50000 annually. Therefore, the total projected revenue will be $225000. Cost DriversThe business will consider the salutes in order to stay in business (Marron, 2014) (Kidder, 2012 ). a) direct courtSince the business is new, there will be several starting costs beforeofficial opening. Upfront costs consist of the purchase of furniture and fittings (table, chairs, coffee machines, installation of EFTPOS (electronic funds transfer at promontory of sale) and computers, cutlery, and front decoration (Ilasco and Seto, 2012 ) (Spencer, 2010). Advertising expenses will consist of the advertise campaign in the initial year. The advertising drive will be geared towards increasing sales to cater for the other(a) costs (Marquis, deal Media, 2014). Materials for shop decoration will be used to attract new customers. The total cost will include the cost of employing an interior designer. I n addition, the business will consider the bond for the rent. This is because the expense must be paid prior before the business is opened. There will be other direct costs that will include the certificates and legislations required for the business opening (Department of Health, 2014). b) Fixed CostsOwing to the beautiful area of Melbourne, the high cost of rent must be receden into account. Utilities desire lighting, heating, telephone lines, net income router and air conditioning have to be considered before the official opening. The business will choose a cheap electricity supplier. There are many to choose from (Smart Utilities, 2014). For an attractive design of the display in the shop, an interior designer with experience will be sought once per year. The cost associated with this will be recorded as expenses for design. Besides, the parking bays rental will be a yearly fixed cost paid to Melbourne City Council (Hamer, Currie and Young , 2011). The parking bays will be provided to increase revenue. The business will take legislations into consideration, because set annual fees will have to be paid to the relevant bodies to ensure business continuation. c) variant CostsThese are the expenses that will change with the output of the business. The main variable cost in the cake and cupcake shop is raw materials used in the production of cupcakes, coffee and cakes such as lollies, vegetables, fruits, flour, milk, coffee beans and hot chocolate (Leach and Melicher, 2014). The cost of vegetables and fruits will change depending on seasonal and weather changes. There will be other variable costs like package expenses boxes, bags, staff wages and utilities. The workers in the shop will include1 baker1 decoratorJunior casual staffWages will be paid fortnightly. Additionally, the business will offer staff uniforms and training opportunities.There will be modification of discount expenses owing to the high-inventory turnover and the need to supply fresh p roducts. On special occasions, the business may have deals or offers that will reduce the unit profit. There will be other expenses like machinery maintenance, new fittings and insurance. These will be required as the business grows. imaging Requirements/MappingHuman ResourceIt will be very easy to get the key employees as it will only have-to doe with placing adverts on the street notice boards. There will be an added cost of interviews, as well as paying the Melbourne City Council (City of Melbourne, 2014).Physical ResourceProperty for lease is available in the area identified. cod to the scenery of the area, the cost of lease is high. However, the expected returns are high. The business premises will be gotten infra a one-year lease. This will save the cost that may be incurred in paying monthly costs. Similarly, it will avoid the costs associated with monthly rent increases. Financial ResourceThe total inaugural cost is $130000. The business will raise $30000 and $100000 will be obtained from the bank as loan. Costs for maintenance will be catered for by the revenue from the business. Investment SizeThe business plans to raise $130000 to meet its startup cost. The funds will be used for Developing the companys cupcake and cakes store location financial backing for the first year of operationCapital to buy baking equipment and ovensThe company will contribute $30000 to the venture. The be $100000 will be financed by the bank as loan. Projected Startup Costs sign Lease Payments and Deposits$20000Working Capital$60000Security Deposits$20000Opening Supplies$10000Company Vehicle and Lease Deposits$2000 trade Budget$10000Miscellaneous and Unforeseen Costs$8000Total Startup Costs$130000ReferencesAaron Marquis, Demand Media , 2014. The just Profit Margin for a Cake Bakery. Online Available at http//smallbusiness.chron.com/average-profit-margin-cake-bakery-14214.html Accessed 11 05 2014.Department of Health, V. A., 2014. Starting a food business. Online Av ailable at http//www.health.vic.gov.au/foodsafety/bus/foodbus.htm Accessed 11 05 2014.Graham, J., 2007. The Crabapple Bakery Cupcake Cookbook. Print ed. capital of the United Kingdom Penguin host (USA) Incorporated. J. Leach, Ronald Melicher, 2014 . Entrepreneurial Finance. 5 ed. Stamford Cengage Learning. Kidder, D., 2012 . The Startup Playbook Secrets of the Fastest-Growing Startups from Their Founding Entrepreneurs. Illustrated ed. San Francisco Chronicle Books. Marron, D., 2014. Cupcake Economics. OnlineAvailable at http//dmarron.com/2009/11/28/cupcake-economics/ Accessed 11 05 2014.Meg Mateo Ilasco, Catherine Seto, 2012 . Mom, Inc. The Essential Guide to Running a Successful Business Close to Home. Illustrated ed. San Francisco Chronicle Books. Melbourne, C. o., 2014. range and valuations. OnlineAvailable at https//www.melbourne.vic.gov.au/buildingandplanning/ratesandvaluations/Pages/RatesandValuations.aspx Accessed 11 05 2014.Paul Hamer, Graham Currie, William Young , 2011. Parking Price Policies A survey of the Melbourne congestion levy. Australasian Transport Research Forum 2011 Proceedings , 1(1), pp. 1-16. Spencer, P., 2010 . Start a Cupcake Business Today. London InformationTree Press. StartupBizHub, 2014. Starting a Cake Business. OnlineAvailable at http//www.startupbizhub.com/starting-a-cake-business.htm Accessed 11 05 2014.Utilities, S., 2014. Compare Electricity Rates in Victoria. Online Available at http//www.smartutilities.com.au/electricity-comparison-victoria/ Accessed 11 05 2014.Wilson, D., 2011 . Bakers Field Guide to Cupcakes. Unabridged, reprint ed. New York City Houghton Mifflin Harcourt.