3.5 Finance and Accountability
Balance Sheet:
As projected further down in our realistic projections we predicted an income of $9,000,000 based on 8 massages of in average $45,000 pesos done per day for the first month. In our liabilities we have expenses such as motorcycles and computer quotas among others that will be paid every month. The 2 motorcycles cost $4,800,000 each and we are planning to pay them in 24 quotas or before. The same happens with the computer and portable beds which are $1,200,000 and $300,000 each respectively, we will be first acquiring 3 portable beds and after a year we will buy more and change the old ones by buying upgraded ones. There will first be 4 massage suppliences acquired of $100,000 each and a couple of portable small ones.
Each employee will be paid a minimum legal wage corresponding to the Colombian government, right now its in $644,350,000 (Ministerio de Trabajo 2015) and we will be covering all the compensations stated by the law, such as health, transport subsidy, among others. The CEO will receive a 2 minimum wage which corresponds to $1,288,700 and the general coordinator will receive a wage of $966,525. This wages are a starting wage, which may increase as the firm grows and the firm acquires more capital. The CEO will be in charge of collective bargaining with unions to create alliances and receive raw material in a really low price. The operational senses such as the trainings, the rent of the office, the gas, and others will be responsibility of the coordinator.
Each employee will be paid a minimum legal wage corresponding to the Colombian government, right now its in $644,350,000 (Ministerio de Trabajo 2015) and we will be covering all the compensations stated by the law, such as health, transport subsidy, among others. The CEO will receive a 2 minimum wage which corresponds to $1,288,700 and the general coordinator will receive a wage of $966,525. This wages are a starting wage, which may increase as the firm grows and the firm acquires more capital. The CEO will be in charge of collective bargaining with unions to create alliances and receive raw material in a really low price. The operational senses such as the trainings, the rent of the office, the gas, and others will be responsibility of the coordinator.
Salaries (Ministerio de Trabajo 2015)
Projections for the first three years:
Optimistic Scenario:
In the optimistic scenario we projected on average 15 massages of $60,000 pesos each, done per day, for a month throughout the year. Each massage last one hour, so we figure that on transportation the employees will approximately spend 30 minutes so for this reason we only figure that there was going to be at least a minimum of 15 massages daily of that price.
Realistic Scenario:
For the realistic scenario we projected an average of 8 massages of in average $45,000 pesos done per day, for a month throughout the year. This is the total number of massages done by the 6 employees all together.
In this scenario its evident that it will be hard starting but in a long term we can earn enough money to improve our business and offer more value and satisfaction to our customers, in the first month its evident that we roughly earn enough to pay the initial 10,000,000 of capital, but through out the year we start earning more and paying all our liabilities.
In this scenario its evident that it will be hard starting but in a long term we can earn enough money to improve our business and offer more value and satisfaction to our customers, in the first month its evident that we roughly earn enough to pay the initial 10,000,000 of capital, but through out the year we start earning more and paying all our liabilities.
Pessimistic Scenario
For the pessimistic scenario we projected an average of 5 massages of in average $35,000 pesos done per day by all the 6 employees together, for a month throughout the year.
In this scenario we can see that this business is not rentable and we will be loosing a lot of money through out the year, this is evident from the fist month.
In this scenario we can see that this business is not rentable and we will be loosing a lot of money through out the year, this is evident from the fist month.