The assumptions and estimated revenue forecast are as follows for Hydro Services.
Rephase this paragraph as best as possible
The assumptions and estimated revenue forecast are as follows for Hydro Services. The price of our bottled product ( 24 units/500ml case) will be $1000.00 JMD and a single 5-gallon unit will cost 700.00 JMD. Additionally, The cost of our atmospheric generator will be 200,000.00 JMD. It will consist of a sealed plastic package and an instructions manual. The expected revenue margin per bottled product is expected to be 60% while for our atmospheric generator is expected to be 75%. It is assumed that the company will obtain a business license for the distribution of products and services as well as accreditation from the Jamaica Bureau of Standards. As it relates to the finances of the company, it is assumed that Hydro Air will acquire capital for its start-up through low-interest rate loans from local banks as well as from investors. It is also assumed that Hydro Air will be successful in making partnerships with the government in providing them with logistical resources and integral connections in exchange for the services provided by Hydro Air. It is assumed that a physical facility will be acquired by Hydro Air to be used as the store. It would be leased to the company with monthly installments as a method of payment. This facility would be inclusive of an office, a storage unit, and space for expansion if needed in the future. In addition to the above-mentioned, some of the company’s financing and start-up costs will be covered by joint financing of both CEO. The company will hire individuals who are qualified to work at base level and management level positions who have managerial degrees and base level workers who have csec certificates. The individual must have certificates to show that they are qualified. It is assumed that the generators and bottled products will see major profits from sales for the initial year of the business generating grossly $ 35 million.
Based on the analysis, it can be concluded that Hydro Air will be needing some capital in order to venture into the opening of this company. This venture will take on the expenses of staff, licensing, legal fees, insurance, shipping fees, rent, beginning inventory, promotion fees as well as packaging fees. Below is a table that summarises the company’s financial needs.
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