The document summarizes the financial plan and processes for a startup called SOCK IT. It outlines that the company will launch with an online sales channel, selling socks for 5 euros per pair. It estimates selling 500 pairs the first month, growing 10% monthly. After 3 months, it will open its first store, selling an estimated 1000 pairs per month. Six months in, it will open two more stores with the same sales. Production costs are estimated to be 55 cents per pair the first year, decreasing 5 cents annually for improved efficiency. The financial plan projects profits of nearly 87,000 euros the first year, growing significantly in subsequent years.

1. Lessons Learned #10
1st Dec 2014
Group #4
Lean Entrepreneurship
Project S4
Diana Moreira
Hugo Stevens
Jan Otta
Judit Kalmár

2. New Fancy Logo
In order to make our logo more appealing to young
people but at the same time keeping it elegant we
decided that this is the final version.
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3. Financial Plan
Product selling price
• We set out selling price at 5 Euros per pair. We would like to
provide different product lines with different sales but that will
happen in a later stage of our business.
Sales
• We start our sales strictly online, we assume that we will sell 500
units in the first month with a regular increase of 10% per month.
• After three months we would like to set up a first stand in a
shopping center where we assume sales of 1000 unites per
month.
• Six months from the beginning of operations we would like to add
2 more stands with same predicted sales as the first one.
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4. Financial Plan
Costs of production
• We assume that the average cost of production in the first year will be 55
cents per pair and it will decrease by 5 cents per year for the first three
years due to economies of scale.
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Expenses:
Web Page
1000 + 200/monthly
Staff (7 after three years)
700 monthly
Marketing
2000 yearly

5. Financial Plan
Net profit
• We hope that our sales will be growing according to our plan. If it goes
as planned, SOCK IT will be a very profitable business.
YEAR SALES PROFIT
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1
158,461 86,982
2
467,783 282,251
3
946,574 588,658
SUM
1,572,817 EURO 957,891 EURO

6. Processes
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7. Processes
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