business transition
DESCRIPTION
Brij_It Collaboration Model for Optimizing business pricing, costing, budgeting, forecasting, metrics and quotations. Standard, Customizable and Low Cost Pricing Analysis is available, see Sales, Service, Professional, Nonprofit, Manufacturing and Retail versions.TRANSCRIPT
1
TRANSITION PLANNING: HOW DO I TRANSITION MY BUSINESS?
THE BRIJ_IT COLLABORATION MODEL:
Transition Plan
Expansion = New Store
Base = Current Store
Startup Segment = Product C
Brij_IT Models for Transition Planning
Chan
nels
OEM
(Gro
wer
)Ch
anne
ls D
irect
Chan
nels
Ret
aile
rCh
anne
ls W
hole
sale
r
Product Line A: Boxes and Planters•OEM (Grower)•Wholesaler
Product Line B: Lawn and Beds•OEM (Grower)•Direct (Distributor)
Product Line C: Garden and Fixtures•Retailer (Store)•Wholesaler
Local Service: Landscaping•Greenhouse (Store)• Landscaping
TRANSITION STAGING
42010 42010 Product A Sale--Boxes & Planters Revenue Revenue: Sale 1 OEM
42020 42020 Product B Sale--Lawn & Beds Revenue Revenue: Sale 1 OEM
42040 42040 Product D Sale- Landscaping Services Revenue Revenue: Services 1 SERVICE
42010 42010 Product A Sale--Boxes & Planters Revenue Revenue: Sale 1 WHOLES
42020 42020 Product B Sale--Lawn & Beds Revenue Revenue: Sale 1 DIRECT
42010 42010 Product A Sale--Boxes & Planters Revenue Revenue: Sale 2 OEM 42020 42020 Product B Sale--Lawn & Beds Revenue Revenue: Sale 2 OEM 42040 42040 Product D Sale- Landscaping Services Revenue Revenue: Services 2 SERVICE 42010 42010 Product A Sale--Boxes & Planters Revenue Revenue: Sale 2 WHOLES 42020 42020 Product B Sale--Lawn & Beds Revenue Revenue: Sale 2 DIRECT
42030 42030 Product C Sale - Garden and Fixture Revenue Revenue: Sale 1 RETAIL 42030 42030 Product C Sale - Garden and Fixture Revenue Revenue: Sale 1 WHOLES 42030 42030 Product C Sale - Garden and Fixture Revenue Revenue: Sale 2 RETAIL 42030 42030 Product C Sale - Garden and Fixture Revenue Revenue: Sale 2 WHOLES
ACCOUNT DESCRIPTION MAJOR MINOR STORE CHANNEL
ACCOUNT DESCRIPTION MAJOR MINOR STORE CHANNEL
ACCOUNT DESCRIPTION MAJOR MINOR STORE CHANNEL
Expansion
Startup Segment
Base
estimated units per hour
0.03
PRICING AND COSTINGOverall Plan
LINES SET PRICE VOLUME SET MIX SALES WTD COST
PRODUCT A LINE 250.00 340 4% 85,000 4%
PRODUCT B LINE 2,500.00 160 18% 400,000 18%
PRODUCT C LINE 3,500.00 200 33% 700,000 33%
PRODUCT D LINE 4,500.00 280 45% 1,260,000 45%
PRODUCT RESALE 100 74,490.00
2,494.90 1080.00 2,519,490.00 1,712,713.91
reconversion 0.03
PRODUCT A LINE 68,508.56 16,491.44
PRODUCT B LINE 308,288.50 91,711.50
PRODUCT C LINE 565,195.59 134,804.41
PRODUCT D LINE 770,721.26 489,278.74
PRODUCT RESALE 38,200.00 36,290.00
STARTUP 25,000.00 (25,000.00)
1,775,913.91 743,576.09
A
B
C
D
TRANSITION PLAN BASE STARTUP SEGMENT EXPANSION
ORIGINAL STORE SEGMENT C NEW STORE TOTAL
UNITS 683 500 597 1,780
SALES 930,667 774,490 814,333 2,519,490
VARIABLE COSTS (749,371) (175,593) (637,650) (1,562,613) CONTRIBUTION MARGIN 181,296 598,898 176,684 956,877 19% 77% 22% 38%
FIXED COSTS (54,909) (82,942) (75,450) (213,301) NET INCOME BT 126,387 515,956 101,234 743,576 14% 67% 12% 30% WITH PRODUCT C STORE 1 STORE 2 TOTAL PLAN
UNITS 896 884 1,780
SALES 1,304,000 1,215,490 2,519,490
VARIABLE COSTS (843,020) (719,593) (1,562,613) CONTRIBUTION MARGIN 460,980 495,897 956,877 35% 41% 38%
FIXED COSTS (99,145) (114,156) (213,301) NET INCOME BT 361,835 381,741 743,576
28% 31% 30%
ExpansionStartup SegmentBase ALL
A
B
C
D
PRODUCT PLAN CM%
PRODUCT LINE TYPE STORE CHANNEL REVENUES CONTR. MARGIN $ CM % PRICE QUANTITY
C: Garden and Fixture segment 1 RETAIL
280,000
216,518 77%
3,500 80
C: Garden and Fixture segment 2 RETAIL/FIXTURE
74,490
57,602 77% 745 100
C: Garden and Fixture segment 2 RETAIL
245,000
189,454 77%
3,500 70
C: Garden and Fixture segment 1 WHOLESALE
93,333
72,173 77%
3,500 27
C: Garden and Fixture segment 2 WHOLESALE
81,667
63,151 77%
3,500 23
A: Boxes & Planters base 1 OEM
22,667
4,416 19% 250 91
A: Boxes & Planters base 1 WHOLESALE
22,667
4,416 19% 250 91
A: Boxes & Planters expansion 2 OEM
19,833
4,303 22% 250 79
A: Boxes & Planters expansion 2 WHOLESALE
19,833
4,303 22% 250 79
B: Lawn & Beds base 1 DIRECT
106,667
20,779 19%
2,500 43
B: Lawn & Beds base 1 OEM
106,667
20,779 19%
2,500 43
B: Lawn & Beds expansion 2 DIRECT
93,333
20,250 22%
2,500 37
B: Lawn & Beds expansion 2 OEM
93,333
20,250 22%
2,500 37
D: Landscaping Services base 1 SERVICE
672,000
130,907 19%
4,500 149
D: Landscaping Services expansion 2 SERVICE
588,000
127,577 22%
4,500 131
TOTAL
2,519,490
956,877 38%
2,333 1,080
TYPE (All)
ValuesRow Labels Sum of REVENUES Sum of CONTR. MARGIN $
Garden and Fixture 774,490 598,898
RETAIL 599,490 463,574
WHOLESALE 175,000 135,324
Boxes & Planters 85,000 17,437
OEM 42,500 8,719
WHOLESALE 42,500 8,719
Landscaping Services 1,260,000 258,484
SERVICE 1,260,000 258,484
Lawn & Beds 400,000 82,058
DIRECT 200,000 41,029
OEM 200,000 41,029
Grand Total 2,519,490 956,877
TYPE EXPANSION
Values
Row Labels Sum of REVENUES Sum of CONTR. MARGIN $
Boxes & Planters 39,667 8,606
OEM 19,833 4,303
WHOLESALE 19,833 4,303
Landscaping Services 588,000 127,577
SERVICE 588,000 127,577
Lawn & Beds 186,667 40,501
DIRECT 93,333 20,250
OEM 93,333 20,250
Grand Total 814,333 176,684
TYPE BASE
Values
Row Labels Sum of REVENUES Sum of CONTR. MARGIN $
Boxes & Planters 45,333 8,831
OEM 22,667 4,416
WHOLESALE 22,667 4,416
Landscaping Services 672,000 130,907
SERVICE 672,000 130,907
Lawn & Beds 213,333 41,558
DIRECT 106,667 20,779
OEM 106,667 20,779
Grand Total 930,667 181,296
TYPE SEGMENT
Values
Row Labels Sum of REVENUES Sum of CONTR. MARGIN $
Garden and Fixture 774,490 598,898
RETAIL 599,490 463,574
WHOLESALE 175,000 135,324
Grand Total 774,490 598,898
FIXED COSTS
STARTUP SEGMENT 82,942
EXPANSION 75,450
SUM $ 158,392
EXPANSION COSTS STARTUP SEGMENT 7100
EXPANSION 2500032100
ORIGINAL STORE 22000
$ 54,100 $ 212,492 INVESTMENT 216,188
Transition View of Investment
31% 63%
37% 19%
32% 18%
100%
Expansion
Startup Segment
BaseALL
Investment
Winning Proposition:
½ of Segment C Contr. Margin >
Investment = STORE 1
Return by Store and in TotalA review of the planned financial performance after the transition. With the sale of Product Line C, Store 1 is capable of covering the total investment and making a profit without Store 2.