1. Week 10 Initial Cost Estimates
Entrepreneurship
Week 10
Initial Cost Estimates

2. Example

3. Example

4. Example

5. Example

6. Start up Cost Estimates
Item
Source
Amount
Computer
Etronics Co
300 OMR
Accounting software
40 OMR
Desks
Nizwa Office supply
50 OMR
Chairs
Web site creation
Muscat software
20 OMR
Car
Budget cars
2000 OMR
Advertising brochures
Nizwa Printing Co.
15 OMR / 1000

7. Start up Cost Estimates – ice cream shop
Item
Source
Amount
Computer
Etronics Co
300 OMR
Accounting software
40 OMR
Refrigerator
Nizwa industrial supply
150 OMR
Display case
250 OMR
Web site creation
Muscat software
20 OMR
Advertising brochures
Nizwa Printing Co.
15 OMR / 1000
Store decorations
60 OMR
Cleaning supplies
15 OMR
General Tools
10 OMR

8. Operational Processes
If you sell something,
Where will you get it?
How will it get to your store?
How often will you be supplied?

9. Operational Processes – flower shop
Flowers will be imported from India
They will be flown to Muscat and delivered to my store
Delivery will be once each week.

10. Operational Processes
If you make something,
Where will you get the materials?
What equipment will you use?
Who will do the work?
How much do you plan to make?

11. Operational Processes – soap maker
There are three main ingredients for my soap. I can obtain them from the Muscat Industrial Supply Company. They do not deliver, so I will have to drive to Muscat once a week to pick up ingredients. I do the mixing myself in my family’s kitchen. It requires several bowls, some water, and an industrial mixer. I can make the soap in an hour. Then I mix in coloring and scent, and pour into molds. The molds need to set for 12 hours. I make 68 bars of soap each week.

12. Cost of goods sold
Cost of good sold – costs that only occur if you sell a product - (food for your restaurant, clothing for your store)
We may forget some costs – napkins at a restaurant, spoons for ice cream, wrapping paper for flowers – but these costs matter.
Be sure to include all costs.

13. Cost of goods sold – Flower shop
Items part of each sale:
Flowers (.1 OMR each)
Cardboard container (.1 OMR)
Gift card (.02 OMR)

14. Cost of goods sold – Soap company
Items part of each sale:
soap (.7 OMR each)
Paper wrapper (.1 OMR)
Company description/promotion (.02 OMR)

15. Growth Plan Typical growth patterns:
Geography – same business in more places
Size – larger size store/restaurant
Products – more products/sizes/brands

16. Operational Process example
You have a coffee shop near the university. What process is needed for you to serve your customers?

17. Operational Process example
You have a coffee shop near the university. What is the cost of goods sold for one cup of coffee? Be sure to include everything you need to serve that one cup of coffee.

18. Operational Process example - 2
You have a bookstore in the Nizwa souq. What process is needed for you to sell books?

19. Operational Process example - 2
You have a bookstore. What is the cost of goods sold for one book? Be sure to include everything you need to sell that one book.

20. Build you Business Plan
Online support to build your business plan

21. Online Resources www.entrepreneur.com/