We believe that sufficient financing is mandatory to start up the operations. We plan to remain a “Seed” to “bridge” to “IPO” progression for franchise Geed Squad. This will serves as a most successful strategy for computer business to starts. Initially the capital required for the operations are restricted to the funding lane. Once we start our operations and our systems are up and got enhanced, they continue to bring high yields and profits for the company. In the software making business, it is extremely important measure to calculate and identify the cost per available software mole and system utilization factor. If the cost per software is less than 7 cents and utilization is 50% or more, then there are high chances to operate with high returns.
Further more; we have to take out all operational costs for software making which is fixed overhead and systems leases. We can break even our first six programming systems by maintaining sales over $ 2 million per month. It is less than 25% of our projected sales of franchise Geed Squad. Our profit will improve with low percent sales in first year to reticent percent of sales in proceeding years. It is expected that profit will be at peak in next three years and there after. Cash flows reflect positive signs from the initial combination of investment. As long as the sales targets are high and achieved, it produces cash constantly. In case of seasonal fluctuations borrowing may only be needed for the purpose of expansion. Further more there will be a growth in the net worth of business and the values of stocks will multiply in future.
Conclusion
Establishing a new business is not easy it requires an ad hoc commitment of an individual and hard working. We have made this report by considering that we are planning to establish a franchise Geed Squad. We have included the financial and business strategy of the business and have also declared the Human Resources requirement. We are quite optimistic that the report is quite comprehensive in nature which will certainly unearth a number of relevant concepts regarding the establishment and will be equally beneficial even for the non technical readers as well.
