1. “Your Solution to Successful
Global Marketing”
Table of Contents
465 New Dorp Lane
Staten Island, NY 10306
Telephone: (718) 667-8686 x 13060
Fax: (718) 351-1921
E-MAIL: www. polyglottranslations@aol.com
www.polyglottranslatio.wix.com/polyglottrans
.
3. ExecutiveSummary
More than 500 million people use Google Translate every month, making more than one billion
translations a day to more easily communicate and access information across languages (Turovsky).
Although these machine translations are informal and do not require the accuracy of translation services
by real linguists, it shows the great need of people to break down barriers to connect with each other.
Translation services were among Inc.’s 2014 Best Industries, experiencing growth despite worldwide
economic instability and is expected to grow by 42% between 2010 and 2020, reaching $39 billion. The
most important reason for this growth is globalization: as companies take their products overseas, they
need to run multi-lingual marketing campaigns (Best). Polyglot Translations, a first year company from
Staten Island, New York, is excited to offer this service to Virtual Enterprises businesses that want to
conduct business effectively with international companies.
While in the real world, there are over 3000 domestic translation companies, Polyglot is just one
of two translation companies in VE. Since competition has been identified as a threat, Polyglot will
position itself as the company that provides a solution to successful global marketing, with high-quality,
accurately translated documents and marketing materials. As in the real world, Polyglot expects demand
for its services to be high since there are over 5000 VE businesses worldwide and as these companies
seek to conduct business with international customers via websites, email and trade shows, they will
need multi-lingual marketing campaigns. Polyglot will target trade show participants and use pre-show
social media promotions and high-quality promotional materials to attract reactive buyers. Forming
strategic alliances at the trade shows to increase market share from cross-selling is an opportunity for
this company, and one of Polyglot’s strengths is a multi-lingual staff that will attend the trade shows.
Attending the trade shows for face-to-face sales should lessen the weakness of limited work hours, as it
will be a challenge doing business with companies in different time zones.
The mission of Polyglot Translations is to provide accurate and culturally competent translation
services to VE International companies and employees at an affordable price and with excellent
customer service. Goals for this year include creating an excellent work environment with state-of-the-
art office equipment, furniture and optimal translation software and generating at least $760,000 in total
sales by April, 2015. While Polyglot anticipates reaching its financial goal by attending three trade
fairs, contracting with New Dorp High School to translate exams and documents, and by promoting the
company via Instagram, Twitter and strategic alliances, this company is aware that it will need strategies
to mitigate the risk of not meeting sales goals.
4. To convince reluctant clients that Polyglot’s translation services are worth the expense, this
company will train its sales staff to provide excellent customer service. All leads will be followed up
within 48 hours and samples of the work will be mailed out to prospects. Polyglot’s staff will also
educate clients on the hazards of machine translations and point out that the information in highly
confidential documents should never be run through free, public translation websites. Sales staff will
also demonstrate that free translation apps are only about 75% accurate and that translated marketing
materials from highly competent translators at Polyglot will give a better impression to international
customers and help close the deal.
Polyglot’s business model is to produce a high level of customer satisfaction, which means that this
company will have to produce a high quality product that will obviously be at a higher cost than in-
house or Google translating. However, as this is a new business which needs to gain market share
quickly, Polyglot will use Penetration Pricing and initially set the prices for its products at a low price.
VE employees will pay as little as $100 to have their business cards translated and even the Global
Marketing Campaign, which includes translations of most marketing materials used at trade shows, is an
affordable $1000.
Polyglot Translations has five departments, and leadership for each department is provided by
managers who complete a six month internship program. To motivate its staff towards excellence,
Polyglot will distribute monthly awards. To ensure that all financial reports are accurate, Polyglot
Translations has created an Internal Audit Department.
Financially, Polyglot earned $341,760 in sales revenue in its first month of operation, with $301,000
earned from non-VE sales and $40,760 in VE sales to NYC firms. With an additional $210,000 expected
in trade fair revenues and another $210,000 expected from ordinary VE sales and interest income,
Polyglot anticipates over $761,000 in revenue for this fiscal year. After $480,000 in operating expenses
are deducted, we anticipate a pre-tax net income of over $246,000.This is an incredible accomplishment
for a brand new firm.
5. CompanyDescription
Polyglot Translations is a first-year VE company, located at New Dorp High School at 465 New
Dorp Lane, Staten Island, New York, and was established as a C-Corporation on October 5, 2014 in the
State of New York. This status was selected because the company is legally viewed as a distinct entity,
so the company will be taxed instead of the employees. Also, as a C-Corp, Polyglot’s managers will be
able to offer fringe benefits, such as matching 401K plan, to the employees in the future, which will
qualify for company tax deductions.
The name “Polyglot” was selected for this new company because it literally means “many
languages.” Polyglot Translations has twenty-one diverse employees who speak eight languages,
allowing this company to provide accurate translations of all types of marketing materials and other
professional documents. Polyglot was launched to help all VE business grow internationally by offering
solutions to global marketing. Since almost all VE companies (a) sell internationally, (b) have a website,
and (c) produce brochures and flyers, there is an excellent opportunity for our service. Demand for
services is already high, and with over $340,000 in sales in the first month of business, Polyglot
anticipates reaching its goal of $761,000 in sales this fiscal year.
Polyglot received $300,000 in equity financing from VE Central in October, 2014, which
currently owns 100% of Polyglot’s stock, valued at $10 per share. Polyglot expects to pay VE Central
the first dividend of 10% of the total stock value in May 2015. Polyglot anticipates the stock value to
rise, not only because of the profitability in its first year, but also because of the excellence of its
business model as evidenced by Polyglot placing first in this year’s Brooklyn/Staten Island Regional
Business Plan Competition and the NYC Business Plan Competition as well.
MissionStatement
With focused leadership, along with a diverse and dedicated staff, Polyglot Translations will
provide accurate and culturally competent translation services to VE International companies and
employees at an affordable price and with excellent customer service.
6. Management Functions
Planning
To ensure that the company moves towards profitability and maintains good business practices,
Polyglot has enumerated both short term and long term goals.
Short TermGoals
Generate at least $760,000 in total sales by April 2015 by attending three trade fairs, contracting
with New Dorp High School to translate exams and other school documents, and by using pre-
sales online promotions, social networking and strategic alliances.
Design a user-friendly website before the trade fair in Germany in November 2014 by translating
it into at least three languages common to VE.
Create an excellent work environment by October 2014 by purchasing state-of-art office
equipment and furniture, plus optimal translation software.
Reach monthly sales and customer satisfaction goals by April 2015 by properly training
employees to follow up with every phone call and website inquiry within 48 hours.
Establish an excellent credit rating and history by making the first dividend payment to VE
Central in May 2015.
Longtermgoals
By October 2016, contract with VEI to translate documents for correspondence with
international VE businesses.
By January 2017, increase the number of languages this company translates by hiring at least
five new employees who speak languages not currently offered.
By October 2018, add transcription services to this company’s offerings by training staff to work
7. from audio and video files so as to guarantee accuracy.
By October 2019, add interpreting services to Polyglot’s offerings by hiring staff that can travel
with clients to meetings and conferences.
By April 2019, achieve 15 percent of sales from referrals by reaching 100% customer
satisfaction as evidenced by surveys and loyalty.
8. Organizing
Polyglot Translations has chosen to organize the company using a functional structure, with each
department responsible for specific tasks, which include sales, marketing, human resources, accounting
and auditing. Although the departments will work separately, the managers will have daily meetings to
coordinate projects and avoid duplication. Managers will use line authority, and while they will have
the formal power to direct and control immediate subordinates in their departments, they are encouraged
to delegate responsibility since micromanaging often reduces efficiency and limits autonomy.
Since one of the reasons a business exists is to make money, Polyglot naturally has an accounting
department which monitors the company’s financial transactions and generates reports such as Income
Statements, Cash Flows and Balance Sheets. While few VE businesses have an internal auditing
department, Polyglot believes this department is vital to maintaining the accuracy of its financial
documents, as well as the ethical standards of the company. This department serves as senior
management’s eyes and ears because one of their main objectives is to report everyone’s progress on
daily tasks. Polyglot’s other internal department is Human Resources, which is entrusted to handle
employee relations, including attendance and warning letters.
The departments that handle Polyglot’s external business transactions are sales and marketing
departments. In addition to handling customer service, the sales staff is also responsible for purchasing
any products or services, such as insurance and furniture, which are needed for the firm to operate.
Marketing’s staff develop promotions as well as monitoring the company website, blogs and social
media accounts.
9. Directing
Communication: Managers will give clear directions, with face-to-face meetings as well as
flowcharts, emails and memos. They will also encourage upward communication so employees
can come to them with any problems without fear of being disciplined.
Leadership: Since one of Polyglot’s goals is to create an excellent work environment, managers
will take a six month leadership training program so they will be able to use their skills to build
team spirit and get the best out of the employees. Employees will be treated with respect and
managers will be fair and impartial in issuing work orders.
Supervision: Each employee will get their directions from their department manager so there
will be no conflict of interest or confusion. This will also avoid duplication of efforts and waste
of resources. The managers will be very hands-on with frequent checks to make sure everyone is
staying on-task.
Motivation: Employees that exceed work expectations will receive bonus points on their overall
grade and public recognition with Employee of the Month Awards. Perfect attendance will also
be recognized with bonus points and awards.
Controlling
Preliminary controls: Polyglot’s controls will start even before the employee is hired. Since this
company will have access to its clients’ sensitive and private documents, prospective employees
will be screened during the interview process for both business and language skills as well as
their ability to understand and follow privacy guidelines. All employees will also be issued an
employee manual, which has lists of all standard operating procedures for each department.
Concurrent controls: Managers will meet with their staff daily to make sure they are on task
and to catch any small errors. Polyglot will create its own Internal Auditing Department and
financial controls will be measured by daily, weekly and monthly audit reports, which will be
reviewed by the CEO for accuracy or deviations.
Feedback controls: Managers will give staff monthly Performance Evaluations and also use
customer satisfaction surveys to give feedback to the employees. If an employee is not meeting
work expectations, the manager can choose to re-train the employee, re-assign him or her to a
different task within the department or transfer the employee to a new department.
10.
11. Assessmentofthe environment
Current EconomicConditions
Snapshot: According to Joseph Quinlan, the chief market strategist at Bank of America Private Wealth
Management, the outlook for the economy in 2015 is positive, as American consumer confidence
continues to grow, the nationwide unemployment is below 5.7 percent and the FED Funds interest rate is
below 0.25% and remaining untouched since June 2009. He is confident the positive trend will continue
through mid-year, but warned that the long-term outlook is still questionable as the U.S. dollar continues
to strengthen and the rest of the world remains in trouble (Mullen).
GDP: The Gross Domestic Product in the
United States expanded at a seasonally
adjusted annual rate of 5.0% in the third
quarter of 2014 over the previous quarter
(US GDP). This was in part due to
businesses borrowing again from banks for
expansion and an increase in hiring and
salaries. As a result of company growth and
a stronger U.S. economic outlook,
consumers are more confident. Given that
American consumers are responsible for
driving 70% of the U.S. GDP, this indicator
is extremely important (Mullen).
Balance of Trade: The U.S. trade gap
decreased to USD 39 billion in November of
2014 from a revised USD 42.3 billion in the
previous month. It is the lowest trade deficit
since December of 2013, supported by a fall
in crude oil imports (US Balance). This
indicator is possibly the most impactful
economic trend for American households.
Oil prices are projected to become so cheap
that it will result in consumers using more,
which will create a new natural equilibrium,
an intersection point where supply equals
demand for oil in the United States
(Mullen).
12. U.S. Dollar: The biggest threat to the U.S.
economy is the increasing value of the U.S.
dollar. As the dollar increases, exports will
decline. Additionally, Europe and China will
see greater deflation, and U.S. citizens with
international earnings will see a decrease in
salary as it is exchanged for U.S. currency.
If the value of the dollar continues to
increase at its current rate, during mid-year,
small- to medium-sized business owners
may slow hiring and hold cash for better
times. If this happens, the Federal Reserve
will likely raise interest rates (Mullen).
(Financial)
Real TranslationIndustry Analysis
More than 500 million people use Google Translate every month, making more than one
billion translations a day to more easily communicate and access information across languages
(Turovsky). Although these machine translations are informal and do not require the accuracy of
translation services by real people, it shows the great need of people to break down barriers to
connect with each other. Translation services were among Inc.’s 2014 Best Industries, with
analysts saying that “demand from tourists and global firms is stoking this industry’s flames”
(Best). The translation industry has experienced growth despite worldwide economic instability
since 2008 and according to the U.S. Bureau of Statistics, the translation industry is expected to
grow by 42% between 2010 and 2020, reaching $39 billion. The most important reason for this
growth is globalization: as companies take their products overseas, they need to run multi-lingual
marketing campaigns (What). According to International Data Group, "a web site visitor is up to
four times more likely to purchase a product or service if it is presented in his/her native
language" (Translation). Increases in immigration will also keep this industry in demand. (What)
In the United States, demand is also high because diverse consumers want everything on
their own terms, and that includes a preference for communicating in their own language.
Companies must also look internally; for example, an organization like Starbucks not only has to
support their customers, but their employees as well, so every aspect of what they do, including
human resources, has to be translated (Krasny).
13. There are potential challenges to growth; competition from automated translation
programs that use artificial intelligence, as well as voice and optical recognition, is expected to
increase in the next five years (Dahl).
In the United States there are approximately 3,000 companies that provide translation
services. From 2007 to 2011, the industry created over 7,000 new jobs and now has nearly
22,000 jobs. Over 60% of the people employed in this sector are female and more than 50% are
between the ages of 25 and 44 (Sentz).
(Source: Sentz)
Virtual Industry Analysis
Virtual Enterprises International is comprised of 47 firms in New York City, 509 firms in
the United States and nearly 5,000 across the globe, including Canada, Europe and Asia.
Commerce among the VE firms is conducted electronically as well as face-to-face in various
national and international trade shows. Last year more than 4000 attendees from over 150 global
businesses participated in the New York City Trade Show, generating millions of dollars in VE
revenue. This year, these VE businesses will travel to many scheduled trade shows, including
Germany, California and New York. Therefore, Polyglot expects demand for translation services
to be high, as these businesses will seek to increase their sales by communicating more
effectively from accurately translated marketing materials.
14. Target Market and Market Segmentation
Polyglot has identified its target market to be the employees of VE businesses that
conduct business with international companies. Since 100% of this target market has a website
and uses email to communicate with its customers, then 100% of this market needs Polyglot’s
translation services. While this potentially means that over 5000 global VE businesses could
purchase translation services, it is more realistic that Polyglot will sell to those traveling to
international trade shows held throughout the year, since they have a more compelling reason to
have their marketing materials translated. Polyglot will attend several of trade shows this year, so
customers will be able to deal directly with this company’s sales force. To develop effective
sales strategies, Polyglot will segment this target market according to the following attributes:
Competitive Analysis
Polyglot has determined that its main competitor is the real world Google Translate app.
While Polyglot has to admit this newly improved app is an excellent tool, it does have its
limitations. Not all sentences are translated perfectly, and while this may be acceptable for
informal use, this could be financially devastating to a business that needs accurate translations
of their professional documents. Jim Edwards, of Business Insider, says the app is “astonishing”
but also admits that it’s “not perfect, but good enough,” as evidenced by the example below
copied from his review (Edwards). Polyglot firmly believes that “good enough” is not what VE
businesses want or expect and accurate translations by real people is a very necessary service.
Demographic
•17-20 year old
employees of VE
businesses
•NYC High School
administrators
Psychographic
•VE employees
seeking to
communicate
effectivelyinforeign
languages
•Businesses seeking
to present a more
professional image
Behavioral
•Travelers to trade
fairs
•Reactive buyers that
wait for a good deal
Geographic
•Europeanstudents
•California students
•NYC students
15. Within Virtual Enterprises, Polyglot is one of two translation service companies, the
other being WordWise, located in Belgium. However, while Polyglot sent a sales team to the
Essen, Germany trade show in November 2014, WordWise was not present, allowing Polyglot to
gain significant market share in Europe and exceed its projections by 150%, earning $125,000
instead of $50,000.
Polyglot has also identified numerous indirect competitors. These include any VE
companies that translate their own documents and marketing materials using free translating
apps. Also, consumers at trade shows tend to be impulsive, so all businesses offering prizes and
free promotional materials to attract customers to their booths will also be competition.
In response to this potential competition for Polyglot’s services, this company will hire
highly qualified staff to translate in their native languages and use optimal translation software
for other languages to guarantee the best possible outcomes. Polyglot will send monthly
newsletters in different languages to VE businesses to demonstrate its’ expertise. Sales reps at
trade shows will use Polyglot’s own translated marketing materials to display the higher quality
translations that can be achieved with our service as opposed to in-house translating or
translations using the Google app. Promotional giveaways will also be of high quality.
The Marketing Mix
Product
Polyglot’s translation services covers a wide range of document types including
brochures, catalogues, flyers, contracts plus website translation. Every project includes a multi-
phase quality assurance process and uses the latest software to promote consistency across all
documents. Polyglot offers translations in many languages, including Spanish, German, Arabic
and several Chinese dialects. High School administrators will be able to have exams translated
for the ELL students; VE businesses can translate their marketing materials so they can more
16. easily sell to international companies; and international travelers to the United States can also
have their personal and professional documents translated into English. While each service may
be purchased separately, Polyglot has created a special Global Marketing Campaign bundle
package to simplify the buying process for trade show travelers.
Price
Polyglot’s business model is to produce a high level of customer satisfaction, which
means that this company will have to produce a high quality product that will obviously be at a
higher cost than in-house or Google translating. However, as this is a new business which needs
to gain market share quickly, Polyglot will use Penetration Pricing and initially set the prices for
its products at a low price. Once the business is more established, Polyglot’s prices will be
reevaluated and the products will be priced according to its real value as determined by the
marketplace so as to have a high client retention rate and high referral rates. Polyglot’s R&D
staff used real-world prices to determine this company’s prices.
Global Marketing Campaign: $1000
(Includes all listed translation services except website translation.)
Contracts: $150 per page
Documents/Exams: $150 per page
Newsletters: $350 per two pages
Brochures: $250 per page
Catalogue: $30 per page
Flyers: $100 (up to 20)
Business Cards: $100 (up to 50)
Website translation: $1000
(up to 20 pages, one language)
Position
17. For VE businesses that want to conduct business effectively with international companies
at trade fairs and via their websites, Polyglot Translations will position itself as a solution to
successful global marketing. Unlike free machine translations, Polyglot’s multi-lingual
consultants promise to deliver high-quality, accurately translated documents and marketing
materials.
Placement
Polyglot is part of a virtual network
of businesses that sell directly to each other
via websites and trade fair sales. For this
first year of business Polyglot will develop
and launch a user-friendly website with clear
descriptions of its services as well as attend
three trade shows and networking events.
Polyglot expects to earn 27% of its
sales revenue from trade show sales in
Germany, California and NYC, where
prospects can handle actual translated
marketing materials and benefit from special
pricing promotions. In addition, Polyglot
anticipates 40% of its revenue to come from
non-VE sales, which is primarily a contract
with New Dorp High School to translate
exams, class contracts and a website page.
Internet sales will complete the annual
revenue, with 33% expected from this
segment. Web clients will benefit from
monthly promotions.
Promotions
Polyglot’s research on how to effectively promote and brand the company via social
media has revealed that its’ target market of 17 to 20 year olds are part of the iGeneration. A
recent survey of 7,200 U.S. students reports only 45% of teens use Facebook, with 76% using
Instagram and 59% using Twitter (Beck). Reasons that iGeneration kids prefer Instagram and
Twitter include that attention spans are getting shorter, about 8 seconds, and teens prefer visual
content and communication (Lane). In addition, Fuse Marketing says that only 59% of teens are
Trade
Shows
27%
Non-VE
40%
Internet
33%
SALES
18. influenced by TV advertising; instead, 78% of teens trust recommendations from their peers and
77% rely on their friends to tell them about new products and brands. (Bulik).
Armed with this information, Polyglot will promote its brand with short messages, mostly
on Instagram and Twitter, and use more pictures than words in its communications. The
messages will be in various languages to further enhance the company’s brand. To encourage
recommendations, Polyglot will offer incentives, such as discount coupons, for filling out and
returning satisfaction surveys and for referring friends. Polyglot will budget $5500 to send sales
reps to the trade shows in Germany, California and NYC. Promotions at these events will include
distributing brochures, business cards and other marketing collateral. To further encourage
prospects to visit the booths, Polyglot’s sales team will give away branded pens and hold raffles
for an iPad for anyone making a purchase. Polyglot will also budget $19,500 with Brandmark
Advertising for promotions on the VEI website and trade show billboards.
S.W.O.T. Analysis
Multi-lingual: Polyglot’s staff speaks
eight languages.
Debt-free: Polyglot used equity
financing to avoid high interest loan.
High-quality translation software:
Polyglot uses top-rated Babylon 9.
Strategies to Capitalize
Use multi-lingual staff for interpreting
New business: Polyglot has no established
reputation or brand recognition.
Limited work hours: Doing business with
companies in different time zones poses a
challenge.
Strategies to Improve
Send frequent, relevant Instagram and
Twitter promotions to increase brand
awareness
Attend trade shows for face-to-face
meetings with distant clients
19. Trade Shows: Polyglot will attend the
New York, California and Germany
trade shows.
Strategic Alliances: Aligning with other
VE businesses will increase market
share through cross-selling.
Strategies to Capitalize
Using our own translated marketing
materials at trade shows will increase
awareness.
Free online/app translations: companies
can do it themselves.
VE Competitor: new or existing translating
businesses can undercut prices and affect
market share.
Strategies to Improve
Bring translated documents to trade fairs to
show differences in machine vs. Polyglot.
Create barriers to entry through excellent
customer service and accuracy to increase
loyalty and referrals.
20. Business Risks
Risk identified
Polyglot may not be able to grow the company by securing future contracts with schools,
small local businesses or VEI to translate confidential documents because the administrators or
owners use free online software to translate exams, documents and international correspondence.
Risk addressed
To mitigate the risk and convince administrators that Polyglot’s translation services are
worth the expense, this company will first use New Dorp High School as a reference to
demonstrate the successful translation services it has executed this year. The staff will then be
trained to educate future clients on the benefits of using Polyglot’s services. Polyglot’s staff will
point out that the information in a highly confidential document should be just that: confidential.
Free translation apps, like Google Translate or Bing Translator, store the user’s input text in
order to improve the app’s performance. However, this also means that other parties may access
the stored information, so even Google recommends that legally binding contracts and any other
kind of confidential documents should never be run through free machine translation tools. Not
only does Polyglot’s staff understand the importance of client confidentiality, they also provide
more accurate translations than a machine. Even Google uses professional translation companies
Risk Identified:
Failingtosecure
future non-VE
contracts
Risk Addressed:
Demonstrate accuracy
and confidentialityof
Polyglottranslations
Risk Identified:
Failure toreach 100%
customersatisfaction
Risk Addressed:
Ensure customer
satisfactionwithon-
time andaccurate
translations
Risk Identified:
Failure toreach financial
goal of $760,000 this
fiscal year
Risk Addressed:
Have attention-getting
boothsand rafflesat
trade showsand form
strategicalliances
21. instead of its own Google Translate app when the company needs legal translations because
machine translations are only about 75% accurate (The Best).
Risk Identified
Polyglot may not achieve 100% customer satisfaction, thereby reducing the number of
repeat clients and referrals.
Risk Addressed
As previously mentioned, accuracy is important in translations and Polyglot believes this
is the key to attracting and retaining customers. Machine translation tools do not understand
culture and context, so nuances will be lost in translation and even Google recommends against
using Google Translate for marketing purposes (Machine). Polyglot’s sales team will
demonstrate to clients that a culturally accurate translated brochure gives a better impression to
international customers, and shows that they care enough to provide user-friendly marketing
materials. Polyglot will also deliver these translated materials on a timely basis.
Risk Identified
Polyglot may not reach its goal of generating at least $760,000 in total sales for this first
fiscal year.
Risk Addressed
While Polyglot believes that educating VE businesses on the pros of using its translation
services will help the company reach its’ financial goals, this company understands that just
relying upon this strategy may not be enough to ensure first year profitability. To mitigate this,
Polyglot will attend three trade shows this year, in Germany, California and NYC. Booths will be
attractive and sales teams will bring marketing collateral translated into several languages to
show other businesses the quality of Polyglot’s work. Polyglot will form a strategic alliance with
F.A.C.T.S. Tutoring Company to share trade show travel and booth expenses and to refer and
cross sell each other’s services. Polyglot will also have trendy, high-quality prizes in raffles at
the trade shows to attract more people to the booth and encourage prospects to purchase
translation services.
22. BreakEvenAnalysis
Average selling price per sale $347.78
Average cost of goods sold per sale $13.47
Average profit rate 96%
Annual Fixed Cost $474,128.08
Breakeven point in units: 1,419
Breakeven point in sales: $493,231.54
27. Financialwrite-up
Polyglot has compiled 3 financial statements and a breakeven anaylysis for this business
plan. The balance sheet is actual through Dec. 31,2014 and we also provided a projected balance
sheet through the end of our first year- April 30,2015. The balance sheets relect $300,000 in
common stock held by NYC Central VE, as well as all other particular partaining to assets,
liabilites and owners equity. We believe our balance sheet is outstanding for a first-year firm.
The cash budget refelects the money that flows in and out of our bank accounts. Polyglot
anticipates a closing cash balance of $413,042.84 by April 30, 2015.We believe that a positive
cash flow for a first year firm is a major accomplishment.
Our income statement reflects $761,760 in gross revenue for our firm this year, with a
modest $37,359 in cost of goods sold, which are primary the costs of paper, postage and ink
needed to provide clients’ documents with $480,813.92 in operating expenses and $79,231.43
anticipated in corporate tax payable, Polyglot anticipates and after-tax net income of
$166,874.81.
This year our breakeven analysis reveals we need $493,231.54 to breakeven this year,
requiring almost 1,419 sales to do so. Our average selling price is $347.78 and our average cost
of goods sold is $13.47, for a profit margin percentage of 96%.
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