SimplExchange Company, Business Plan Example

The company intends to use a five-year plan during which they will start up operations using investment funds. The break-even analysis report reveals that it will take the company approximately 2 – 3 years before realizing the desired profits. In this way, the company will focus on profit maximization by minimizing the costs related to administration and increasing the investment volumes. The investment plan includes infrastructures, which will cost $100,000, development of operational business at $40,000, marketing at $10,000, and legal consultations will cost $50,000. The total cost for the entire investment plan equals $300,000. For the break even analysis, the revenues stand at $600,000, fixed at $42,000, and variable costs at $18,000. As per the liquidity plan, the company intends to make an annual sale of $1,500,000 with a net profit of $300,000.

The company has also set up measures that will help in smooth flow of activities within the organization. Some of these measures include securing customer loyalty, proper and sufficient risk management strategies, the technology to be applied will also be well selected to enhance competitive advantage and finally a proper quality and cost management procedures. Through this, the company will experience the desired profits and achieve good returns on investments.

The market structure

The FX market structure is equally impressive and offers the highest trading capital in the currency exchange markets. The FX market averages at $5.3 trillion, followed by Futures market $ 437.4 Billion, Equities market 101 Billion and finally the NY stock exchange posting a margin of $ 28 Billion. These are figures that are traded each day in the foreign exchange markets. The most impressive post is given by the FX market, which has the highest share in the industry. Venturing into such a market would guarantee high returns of profits.

Profitability

With a return on investment of $ 400, 000, the company will be well positioned to maintain high levels of income and sustain growth at the same time. This is a reflection of impressive figures on the income statement.

Solvency

The return on investments also depicts the company’s ability to meet its obligations in the long term. This means that the profits generated by the company can be used to foster business growth and at the same time pay creditors.

Liquidity

Given the volatile nature of the market and the level of trade activities, profitability of the company would be maintained above $ 300,000 p. a hence increasing the company’s liquidity. Therefore, the company would maintain a positive cash flow while ensuring that all its obligations are entirely met.

Stability

The high levels of return, profitability and the conducive business environment would enable the business to sustain even in the long run period without incurring significant losses in the process of business operations. The impressive returns would support business throughout its operation period.

Works Cited

Guo, Xin , Mercus  Henderson, Paulina Joya, Shelby Taylor, and James Vary. “Currency exchange .” SimplExchange 1.1 (2014): 1 – 14. Print.