Production Plan: Costs and Strategies to Improve Profitability

Business Plan
Name
Institution
Introduction
Section Four
Estimated Cost:
Production Plan
Production planning refers to the organization of production and manufacturing modules within an organization or a company. Production planning requires resources that have been allocated to employees so as to achieve organizational goals for production. There are some principles that are required for the purposes when planning for the production. Some of the principles that control production planning include materials, customer demand, equipments, manpower, processes, and controls.
Start Up Costs
When starting a business, there are so many factors that are there to be considered. Start-up costs may as well be referred to as the expenses that one would be required to cater for when starting a business. For instance, for this particular business some of the start-up costs that should be considered include; research and development cost at $20,000, legal cost at $2,000, cost for designing website $1,000, the cost of the equipment needed at $5,000, expenses for facilitating credit payments $500, cost for laptops at $2,000 and other equipment $2,000, initial promotion and training cost $15,000.
Operational Costs
In this business that has been suggested, there are some operational costs that are mostly fixed ones. Some of the operational costs include; the ISP costs at $1,000, I.T staff at 14,000, the annual cost to Apple at $800, the routine promotion at $5,000, the routine development cost at $7,000, employee salaries at $30,000, the Serve costs that has been estimated to be at $8,000, and also the database m...