Course Project Wireless World essay

In the pursuit of opening a great venture with my business partner we are hoping to capture a share this booming industry of high tech wireless devices in the 21st century. Our goal is to open up a store (Wireless World LLC) in the high end area, most probably in Millenia Mall shopping center; for the purpose of meeting our budget demands. In which our product line would include high tech devices such as: phones, wireless eBook readers, high-end notebook and netbook computers, iPads, and other wireless computing devices.

Our initial plan is to market our products to the wealthy individuals anging from the age group of 22-49.For the purpose of their consistency in trying to stay up to date with the latest fashion or trying to make their work more productive with the capabilities of the devices. In the duration of our starting point we are going to incur several startup cost internally and externally in order to operate our day to day operations. That’s why my business partner and I are going to take out loans and use our personal funds to handle our business expenses. In the process of getting supplies and producing sales; we are going to create a credit line with our uppliers and charge all other expenses on credit.The giving expenditures in our budget include the Renovation cost ($25,000), Business Insurance ($1 ,OOO per year), Health and other benefits of of the salaries of the managers, Initial Investment in Inventory ($20,000), Legal costs ($ 160) In our analysis of our Cash-flow budget sheet for the upcoming 5 years of our business venture we managed to drive some the necessary information to project our NPV, IRR, Payback Period and our Pro-Forma projections. In our in-depth research of our data we manage to come up with our Net Present Value of our company which was $857,149.

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3 which indicated a good sign to go through with this venture. The Internal Rate of Return that we came up was a 6. 88% that would be given to us as a profit on our investment.

The payback Period for our loans to be paid off given Our revenues and expenditures in each year would result for our debit to be paid back in approximately 2. 24 years. Our Pro-Forma analysis configured the total population of the previous years with the percentage of growth each year. Given this factor we implemented the same percent for the upcoming years 2. 5%).In which case we got our projected sales of our regular analysis of this company in from our cash flow for each given year and added a 2.

5% increase in the total number of sales in dollars. The most logistic assumption of such an increase in this given area and in our sales was for regions factor of being such a famous tourists attraction, with its’ major theme parks and vacations getaways and also the given fact that our location is right in the center of all the State which makes a favorable factor in such business. 2. 1 Course project. xlsx Year 1 Year 2Year 3 Year 4 Year 5 Sa les 2,223 2,416 2,608 2,801 2,993 Analysis: Sales are expected to steadily increase over the next 5 years in this metropolitan area for the reason that more and newer versions of these high tech devices make this products’ a hot commodity.

The reason though that we don’t see a skyrocketing increase in sells is that there are many substitutes for this products. 2. 2 Methods and Assumptions – In the process for calculating the regression forecast for the next 5 years, I had to first calculate the population of Orlando Florida and the market trend or the demand for of high tech devices in this region.The process of gathering this information was quiet difficult and thats why we decided to take an alternative route in determining this numbers.

First of we got the total population of the U. S. from the Census and then the percentage of people having smartphones for given years in which from that point we got the total population of Florida and the total percentage of the market age group that Was specified . In which we than got the total from both calculations and divided them and that’s how we got the number of sales for smartphones. In he process of calculating the sales of iPads we got the number of iPads sold for given years in the U.

S. in which we then multiplied that number by the percent of Florida market share. We finally got the total sales from Net pads form a websites that estimated that they sale approximately 600 of their products each year. When we final got all the total calculations for each individual device we than added them up and that was our number for the market share for high tech devices in Florida. The next step was to get the total number of high tech devices and multiply it by two for the given factor hat we also have the exterior market (potential customers outside Florida).

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