ACCOUNTS//BOOK KLUB PROJECTED FOOTFALL Calculated according to University student populations UNIVERSITY OF LEEDS= 33, 585 LEEDS METROPOLITAN= 29,000 LEEDS COLLEGE OF ART= 640 TOTAL= 63, 225 Average of 10% visiting the shop each week= (63, 225/100) x 10 (%) = 6, 332.5 visitors per week= 6,332.5/5 (amount of days shop is open per week)= 1264.5 visitors per day AVERAGE SALE PER CUSTOMER £292 (total product sales x 1 unit)/30 (number of products for sale) = £9.73 > round up to £10.00 median/average sale 1,264.5 customers per day 25% are buyers= 316.125 x £10 (average sale)= £3161.25 BOOK KLUB makes 20% commission (minimum)= (£3161.25/100) x 20= £632.25 made per day x 214 business days (shop open)= £135, 301.50 (annual income from shop stock). CONSIDER… New living wage costs as Sarah and I go part-time in the shop (each getting additional part-time jobs to help reduce the cost of the living wage). New living wage (combined) total= £85, 696.70 £85, 696.70/214 (business days/store open)= £400.41 to be made for combined living wage total per day (£100.10 each). OVERHEADS (revised for lower costs- see s/sheet notes…) £46,016/214 = £215.03 overheads cost per day + £400.41 living wage costs per day= £615.44 REQUIRED for living/business wages per day (to come from retail sales)
EXHIBTIONS/SALES EVENTS COSTS Cost of events (x15 throughout 2012, as blogged) N/A £50 £40 FREE N/A £70 £20 £20 £1,422 N/A N/A N/A £160 £160 £160 = ex. N/A total= £2,102 stall fees Median cost of stall= 2102/10 (stalls with £ info) = £210.20 (estimated price of N/A stalls) £210.20 x 5= £1051 (5x N/A stalls) + £2102 (10 stalls)= £3153 TOTAL FOR 15 x EXHIBITIONS Per exhibitition we would have to make an average of £210.20 to cover costs At 20% commission, we would have to sell £1168 worth of stock per event (x4 each designer’s work unit from £292 stock x1 unit total) (1168/100) x 20= £233.60 (total that the company would make on 20% commission basis). PROJECTED INCOME FOR YEAR 1 £351 (events= £233.60 per event with 20% commission subtracted x 15 events)= £3504- £3153= £351 BOOK OF THE YEAR ZINE SALES £5 each (print 250 units- cost to print covered in business overheads) £5 x 250 = £1,250
RETAIL SHOP SALES £632.25 x 214 (working/business days)= £135, 301.50 (total annual shop income) Retail+ Zine + Events Sales= £135,301.50 £1,250.00 + £351.00= £136, 902.50 (income before costs and taxes) COSTS Living wages total= £85, 696.70 Overheads= £46, 016.00 + £131, 712.70 total costs before taxes £136, 902.50 (income before costs and taxes) – £131, 712.70 (total costs before taxes)= £5, 189.90 PROFIT BEFORE TAXES LTD. COMPANY INFO -
Liability for debts % by company ownership. We are the sole employees. Corporation tax paid on profits. 100% shares. AGM (Annual General Meeting) meetings to approve accounts. Register with Companies House. £10,000 tax free holiday for new businesses.
LIABILITIES -
NIC payments (12% living wage of employees/wages) VAT (20% annual income) Corporation TAX payments (20% profit)
TO DO -
Register with Companies House NIC VAT Corporation TAX
Annual income before TAX= £136, 902.50
TAXES= living wage (12% NIC)= (£85,696.70/100) x 12= £10, 283.60 VAT (20% income)= (£136,902.50/100) x 20= £27, 380. 50 Corporation TAX (20% profits)= (£5189.90/100)x 20= £1, 037.98 Total= £38, 702.08 total taxes Overheads + Living wages= £131, 712. 70 + Taxes= £38, 702.08 = £170, 414.78 £136, 902. 50 (Annual income)£170, 414.78 (Total costs) = - £33, 512.28 A loss… need to make PROFIT. CHRIS & MATT ALSO take on part time jobs- working on a rotational basis (2 employees in the shop at any given time) LIVING WAGE= £85, 696.70 - £15,000 (£7,500 each for Matt & Chris)= £70, 696.70 (reassessed total living wage). Living wage + Overheads= £70, 696.70 + £46, 016.00 = £116, 712.70 + Taxes at £36, 819.74= £153, 532.44 (costs total). £136, 902.50 (income) – £153, 532. 44 (costs) = - £16, 629.94 end of year one. STILL at a loss- profits need to be made. REDUCE Sophie’s living wage (living with partner) REDUCE Sophie’s living wage (living with partner)
With initial living wage at £26, 656 Reduce to £15, 288 (see s/sheet for savings) -
£7, 500 from part time job =
£15, 288 £7, 500 = (already accounted for in living wage costs) £7, 788 (total revised living wage costs for SOPHIE) £70,696.70 (combined living wage) – £7, 788 = £62, 908.70 revised living wage total TAX (revised) VAT = £27, 380.50 NIC = £7, 549.04 CORPORATION TAX= £955.64 Total tax amount = £35, 828.18 COSTS Living wage= £62, 908. 70 Overheads= £46, 016.00 Taxes= £35, 882. 18 Total costs= £144, 806.88 £136, 902.50 (income) – £144, 806.88 (costs) = -£7, 904. 38 STILL in a loss for the first year, re-assess working days Working days changed from 214 (original) to 239 Reassess income £632.25 retail income per day x 239 business days = £151, 107.74 annual retail income (shop) Total income before costs and taxes (retail, events and zines)= £152, 708.75
Living wage and overheads= £108, 924.70 TAXES (revised) VAT (20% income)= £30, 541.75 NIC= £7, 549.04 CORPORATION TAX (20% profit)= £8, 756.81 Combined tax total= £46, 847.60 total tax PROFIT CALCULATIONS £152, 708.75 (income before costs and tax) – £108, 924.70= £43, 784.05 total profit before tax £43, 784.05 (total profit before tax)£46, 847.60 (total tax) = -
£3, 063.55
STILL making a loss- amend working days further. WORKING DAYS (now 251- see s/sheet amendments) £632.25 retail income per day made x 251= £158, 694. 75 + zines = £1,250 + events = £351 £160, 295. 75 (total annual income before costs and tax) Living wages £62, 908.70 Overheads £46, 016.00 + = £108, 924.70 (total costs before tax) £160, 295.75 (income before costs and taxes) £108, 924.70 (costs before taxes) = £51,371.05 total profit before taxes TAXES VAT (20% income)= £32,059.15 NIC (12% wage)= £7,549.04 CORPORATION TAX (20% profit)= £10,274.21
Tax total= £49,882.40 £51,371.05 (total profit before taxes) – £49, 882.40 (tax total) = £1,488.65 TOTAL PROFIT YEAR 1 BARCLAYS LOAN -
8.9% APR Six month repayment holiday £25,000 loan with 8.9%= £27, 225 (/10 year repayments= £2, 722.50 repayments per year)/4 = £680.62 per year per person = £56.72 per month, per person
6 MONTH PLAN/START UP COSTS Living wages for 6 months SOPHIE= £3894 CHRIS= £8490 MATT= £9007.85 SARAH= £8272.50 £29, 664.35 total living wage(s) for 6 months- living wage paid from units/retail sales OVERHEADS (6 MONTHS & START UP) Rent= £6,250 Electric= £2,500 Gas= £500 Water= £250 Repair= £125 Security= £125 Land Line= £125 Mobile= £75 P&P/Correspondance= £50 Software= £750 Paper= £200 Computer repair= £100 Cartridges= £3,769.80 Printer= £3594
Books and magazines= £100 Travel= £100 Legal advice= £35 IP costs= £100 Advertising= £250 Print= £125 PR= £50 Samples= £125 Websites= £25 Signage= £125 Shop fitting= £5000 Computer= £1500 Peripherals= £100 Camera= £200 S/Print= £3, 758.30 Tools= £100 Furniture= £500 OVERHEADS TOTAL= £30, 734.10 £30,734.10 (overheads) – £25,000 (loan) = £5, 734.10 overheads excess still to pay -£744.325 (6 months profits) = -£4989.77 (/4= £1247.44/6= £207 per month to be paid by each of us personally for start up costs, to be claimed back in Year II profit) YEAR II COSTS OVERHEADS Rent= £12,500 Electric= £5,000 Gas= £1,000 Water= £500 Repair= £250 Security= £250 Land Line= £250 Mobile= £150 P&P/Correspondance= £100 Software= £750
Paper= £400 Computer repair= £200 Cartridges= £7,593.60 Books & Magazines= £200 Travel= £200 Legal Costs= £70 IP Costs= £200 Advertising= £500 Print= £250 PR= £100 Samples= £250 Website= £50 Peripherals= £200 Camera= £200 Tools= £100 TOTAL OVERHEADS= £31,266.60 Living wage= £62, 908.70 + Overheads= £31, 266.60 = £94, 174.30 costs total before taxes + 20% sales increase in income for Year II= (£160, 295.75 (income for 251 working days) /100) x20 (%)= £32, 059.15 + 160, 295.75= £192,354.90 income for Year II before costs and taxes £192,254.90 (income for year II before costs and taxes) £94, 179.60 (living wage plus overheads) = £98,179.60 INCOME/PROFIT YEAR II BEFORE TAXES TAXES NIC (12% living wage)= £7,549.04 VAT (20% income)= £38, 470.98 CORPORATION TAX (20% profit)=£19,635.92 Tax Total= £65,565.44 £98,179.60 income before tax – £65, 565.44=
£32,614.16 PROFIT FOR YEAR II £32,614.16 - £4989.77 (personally paid overheads in 6 month start up costs)= £27,624.39 – £2,722.50 (loan repayments) = £24,901.89£15,000 (for x2 employees/MATT & SOPHIE/ to work full time) = £9,901.89 PROFIT FOR YEAR II