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How will you attract customers away from them? 4) How will your business make money? How much will it cost you to make, purchase or deliver your products or services? What price will you be selling your products or services at? How much profit will you make per sale? How many sales do you plan to make in the first year of operations? What evidence do you have that this is achievable? Note: Social ventures still need to have income. There’s a saying; “Just because you are non-profit doesn’t mean you are for-loss”.

How can your social venture make enough money to cover its operating expenses? 5) How much will it cost to launch your business and keep it running? How much money will you have to spend to start your business? Think of things like website, store fit-out, marketing etc. How much money will you have to spend on an ongoing basis to keep the business running? Think of things like rent, wages, phone bills etc 6) How many sales will it take for your business to become profitable? How long will it take you to achieve this many sales?

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Otherwise known as the break- even point, this is when you have made enough profit to cover the amount you invested to launch the business. Use the following formula to figure out how many sales you need to make: Unit Sales Required to Break Even Fixed Costs / (Unit Sale Price – Unit Variable cost) 180,000 = O / (3,000 – 150) = \$2850 X 20 = \$57,000 180,000 = O / (6,000 – 150) = \$5,850 XII = \$58,500 180,000 = / (15,000 – 150) = \$14,850 M = \$59,400 \$174,900 P. A With this calculation we will need apron. 13 months to B. E and for the company to start making money.