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General Information:
Purpose: The purpose of this cost-benefit analysis is to determine
whether the investment in operational, technical Staf is the best
option for Non-Veggies and its interested investors, to pursue at
this time.
Overview: Non-Veggies is looking for investment to make itself the
best brand when it comes to the Non-Veg market. Hence we at non
veggies believe that a thorough study of utilization of investment is
necessary not only for the betterment of the industry but also to give
our investors the best ROI.
Here we present the cost benefit analysis for recruitment of staff,
which shall be done in mainly three departments to maximize the profit
and these departments are:1) Operational department
2) Technical department
3) Marketing department
Salary
pm(INR)
number required
Total salary
(year in INR)
Butchers
20000
120000
1440000
10000
60000
720000
Supervisors
25000
50000
600000
Delivery Boys
15000
10
150000
1800000
Total
70000
24
380000
4560000
Benefit:
This Operational Department is capable of managing a demand(orders)
of=X orders per depot per day
Hence, for 2 Depot: 2X
Total Orders in a month=2X*28
Considering the average order cost =435 INR
Potential Gross Revenue= 435*2*X*28
Gross Profit per month=105*2*X*28(considering average profit:105)
Hence yearly gross profit= Gross Profit per month*12
Net Profit (annual)=
Summary:
Cost incurred:
Revenue generated:
Profit generated:
Technical Department: Non-Veggies being a food technology
company, having a proficient technical team is not only essential for
the functioning and branding of company, but also for
maintaining smart inventory management systems(refer
Inventory management report)
The tech department comprises of:
Salary
pm(INR)
Job role
total salary
(post wise in
INR)
number
required
Total salary
(year in
INR)
50000
100000
1200000
20000
80000
960000
50000
100000
1200000
20000
80000
960000
20000
40000
480000
Total
160000
14
400000
4800000
Job role
Number
required
Total salary
(year in INR)
12000
24000
288000
15000
75000
900000
Marketing Senior
45000
90000
1080000
Business
Development and
marketing reps
25000
100000
1200000
97000
13
289000
3468000
Total
Benefit:
CLV=2361.26 INR
Estimated reach of Team=X new users a month
Revenue generated=X*2361.26
Estimated CLV(subscription)=8000 INR
Revenue Generated=8000*Y
Total Revenue generated=2361.26*X+8000*Y
Summary:
Cost incurred=
Revenue generated=
Conclusions and recommendation
Estimated payback period:
Based on our CBA report our Project is a very viable project and the
intangible losses on failure of project are ignored due to our capability
and brief but useful experience in the industry and also due to lack of
strong competitors.
Hence our CBA can validate that investing in Non-Veggies staff
(assuming the risk factor) would not only take the companys revenue
to new heights but will also generate a very good ROI for the investor
involved in the seed round(in a short period of time.