Question

Please respond to this classmates. It is not enough to simply agree with what he/she has written. What are your questions, ideas, etc., that can help that classmate.

Marketing Plan Budget:

Rent: For rent in a downtown location I am estimating somewhere in the range of about $2.000. If I can not find a space for this much I might have to think about switching my location from downtown to more of a central location.

Employee salary: My business will be a sole proprietorship. As a result I would only be able to hire one employee to start at halftime. I would estimate about $432 a week. That is at $12 minimum wage time 6 hours a day for 3 days. so about $864 a month for employee salary.

Adverting: In doing research if you want your add to pop up a lot on Facebook it is about 27 Cents per click. I would however just advertise on my own page witch is free. I would also advertise on Instagram and Twitter as well. These apps are free as well. They allow you to advertise free as long as you are signed up with them and have an account. I also plan to take out a half page add in my local newspaper. That would cost about $500. I also plan to hand out fliers in the local community and university. That would be free as I can print them from my home.

Equiptment Cost: I will purchase 8 bare base laptop kits to build them myself. The cost of this will be about $8000. I will also need to factor in the cost of the power adapter as well. I will only get 8 bare base kits just to start. Once I get more business I will get more kits.

Answer 1

Employee salary :

Even if you are working on your in the your business then also you will have to consider the opportunity costs. Here the opportunity cost will be the amount that he /she has forgone to work daily for her business. Because if he/she is not working in that business then he/she may be doing a job, for instance, and the salary of that job will be considered as opportunity costs.

Advertising

Opportunity costs of time spent on advertising on Instagram and Twitter. Also, the opportunity cost for the time spent in handing out the fliers will have o be considered. If the opportunity cost is higher than the amount for which you could have hired a person to do such job. Then in that case hire another person.

Equipment Costs

You will have to consider the costs of each and every item that you will use in the laptop kits. Also, costs of any specialized softwares will also be included.