Startup costs
Office Equipment 55,000
Computer Equip. 89,000
Legal fees 2,150
Total 146,150

 

Monthly Recurring
Internet 25
Misc 100
Phones 432
Salaries 100,000
7.7% Taxes 7,604
Office Supplies 500
ADP payroll 39
Internet access 240
Total 108,940

 

Yearly recurring
Christmas party 13,000
Benefits 56,500
Reference & Periodicals 5,000
Games (eval) 500
Bus. Insurance 12,000
Life insurance [k] 1,485
Total 88,485

 

Product startup
Box 28,000
CD 250
PM Budget 5,000
Testing 50,000
Total 83,250

 

Product Revenue
Units
Internet 10,000 x $50 - $7.10 = 429,000
Retail 90,000 x $25 - $7.10 = 1,611,000
Total 100,000
SubTotal 2,040,000
-Sales Commissions -10% -204,000
-Advertising -20% -408,000
Total 1,428,000

Schedule

Months 1-12 (Development)
Net Revenue 0
Startup expenses 146,150
Monthly x 12 1,307,280
Yearly 88,235
Promotion 100,000
Product startup 83,250 1,724,915
-1,724,915
Months 13-16 (Development)
Net Revenue 0
Monthly x 4 435,860
Yearly / 3 29,412 465,272
-465,272
Months 17-20 (First release)
Net Revenue 952,000
Monthly x 4 435,860
Yearly / 3 29,412 465,272 Profit on investment
486,728 -1,703,459
Months 21-24 (Second release)
Net Revenue 1,071,000
Monthly x 4 435,860
Yearly / 3 29,412 465,272
605,728 -1,097,731
Months 25-30 (Third release)
Net Revenue 1,666,000
Monthly x 6 653,790
Yearly / 2 44.118 697,908
968,092 -129,639
Months 31-37 (Fourth release)
Net Revenue 1,666,000
Monthly x 6 653,790
Yearly / 2 44.118 697,908
968,092 838,453