1.0 Executive summary Good ideas are oxygen to the blood flow of any type of organizations.

Generating actionable ideas is essential for the growth, even the survival, of business. . . . Can an organization get enough actionable ideas from its insiders? Student-Storm exists to serve organizations that need to look both inside and outside themselves for ideas for new products, programs and promotion. No organization has a monopoly on thinkers or thought. Often, it is an idea from someone from outside the corporate environment, who has no particular interest in or knowledge about the organization who can provoke a turn to a new, winning way. In addition to customizing and facilitating idea generation for innovation sessions within organizations, Student-Storm provides for our clients a perspective that is intentionally external to an organization and its culture. Student-Storm brainstorms generate a huge number of ideas in a short period of time to stimulate an organizations innovation process. The sheer volume of ideas produced in our work invariably gives rise to a number of good, actionable ideas for our clients.

1.1 Mission Our mission is to tap into the brightest young minds of today and tomorrow by empowering them to research the trends, themes and technological advances that are prevalent among university students and convert this phenomenon into the creation of innovative idea for idea seeking organization. We arrange an effective brainstorming team by building strong relationship with all universities in Malaysia, and students with different expertise by providing them with jobs. 1.2 Vision To be Malaysias No. 1 in offering innovative ideas for student price. 1.3 Positioning statement To small and medium size business firms who are in need of ideas from outside to stimulate new product extensions and new ways of promoting a product, Student-Storm is a consulting firm which provides low price ideas and innovations following latest market trends. 1.4 Objectives In 3 month- 1. Having network with all universities located in KL and Selangor. 2. Creating a web-site and database of students who have potential to be hired. At the end of 6th month- Getting first order from customer. At the end of 2nd year- Achieving breakeven point. At the end of 2nd year- Getting a revenue from business. After 3 years- Expand business: obtaining more fixed assets, more employees, 15 offers every month

1.5 Keys to Success The keys to success for Student-Storm are: Relationships with clients (developing loyal, respectful, and intensive contact with both clients and potential clients). Marketing strategy and networking with other professionals. Responsiveness to clients (fast response time for special problems). Quality (especially in reporting information). Excellence in fulfilling the promise. Recruit qualified college students from around the country and properly integrate their knowledge and talent into our services. Ensure that the solution we provide is truly original and unique in all aspects.

2.0 Company summary Student-Storm serves other firms with new ideas, improvements and innovations created by students in brainstorming sessions. Our Company is at the start-up stage of business, having just developed our business plan. 2.1 Company ownership The Company Student-Storm was founded in December 1st 2012 by: Ilyas Nurhadi (25% of shares) Olimjon Muminov (25% of shares) Robert Resch (25% of shares) Firdaus Adib (25% of shares), It is a Limited Liability Partnership as known as Sdn Bhd-Partnership.

2.2 Company location After evaluating all business opportunities and number of universities in Kuala-Lumpur, it has been agreed that our firm will be operating there. As renting an office building during the first year of business is not in the plan, it will help to cut operating costs. But starting from the second year Student-Strorms office will be located at Plaza Sentral, Jalan Sentral 5, KL Sentral, Kuala Lumpur 50470, Malaysia. These are private rooms we do not need to pay and have approximately 600 square feet of office space. 2.3 Capital Requirements summary We were seeking for RM 230,000 of additional financing which will support us during the time of start-up in the first year, and during the next years which will be a development period. The Start-Up Capital is the amount of the deposits by the four shareholders and the loan by the Maybank: Shareholders (4 x RM 20,000) External financial resources : Total Loan by Maybank Business angel RM RM RM RM RM 80,000 150,000 100,000 50,000 230,000

2.4 Financial Plan Our expected costs in the first month of our start-up: Stationery and Basic Office Supplies Copying machine and Printer Computers Outsourced services : Accountant Lawyer Programmer Marketologist RM RM RM RM RM RM 1,000 3,000 3,000 2,000 2,000 19,000 RM RM RM 1,000 1,000 6,000

Other expenses (Internet, telephone, transportation) Total expenses per month

( Statements with more details are given in Section 6.0 ) After one year in business, Student-Storm will be spending RM 18,000 every month: Stationery and Basic Office Supplies Insurance Salaries: Brainstorming trainers Controller Secretary Marketing manager HR RM RM RM RM RM RM RM RM
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RM RM

1,000 5,000

1,000 2,000 1,500 2,000 1,500 2,000 2,000 18,000

Transporation Expenses Other expenses Total expenses per month

2.5 Start-Up Timetable

Kick-off 3rd month A 6th 9th B 1st year C

Phase 1 Phase 1: Creating a Website

Phase 2

Phase 3

Introduce ourselves in Universities and their Students Contact Firms in KL, create networking

Phase 2: Continue promotion as advertisements in newspapers and online Improve Brainstorming

Phase 3: Invest in company (office, employees, IT) Milestones: Obtain first order Earn first profit Capture enough profit to invest in company (office, employees, car)

3.0 Services 3.1 Service background Our service requires a place with a lot of talents and the people love to do business. We decided to choose Malaysia as our market place to launch our service. As an upper middle income country, we considered Malaysia economical and social environment are supportive to our business. Malaysia is a relatively open state-oriented and newly industrialized country. According to International Monetary Fund (IMF) Malaysia is one of the best economic records in Asia. In 2011 Malaysia Gross Domestic Product (GDP) was worth about $450 Million, 3 rd largest in South East Asia below Thailand and Indonesia. The secret between successes of Malaysia in growing their economy is the government policies. Malaysian government encourages their citizen to do business by providing credit. Among ASEAN country Malaysia in a 1st place in giving a credit according to doingbusiness.org. In 2009 registered new start up business in Malaysia up to 41638 based on the report by World Bank which is published in 2010. These registered new business some of them are in the new industry sector.

Chart based on report of number new registered firm by World Bank in Malaysia. From the chart above we can see growing number of new business in Malaysia between January 2002 and January 2010. Malaysian government also paid a lot of attention in attracting foreign Investor. A strong investment made Malaysia recovered from crisis late in 1990s sooner than neighbor countries. Malaysia is placed in number 4th by Doingbusiness.org in protecting their investor. Following are the economy summary achieved from Doingbusiness.org:

It is proved economical environment in Malaysia is supportive with our business. Moreover the social aspect also is also promising for business. Malaysia has a good source of young talents. According statistic which provided by Malaysian Government, Median age in 2010 (latest survey) is 26.2. We can conclude population in Malaysia dominated by young generation. Malaysian government highly concern about maximize the potential of these young generation. Twenty five percent of total Malaysia national expenditure is allocated for education to ensure
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improvement on education quality. Furthermore as a multi race country as well as globalize country, Malaysian graduates expected to have a multinational skill which creates additional value to itself. What do we want to do? We have identified a problem by relating two points above. New start- up businesses have a trouble in finding an affordable skilled person as they need it for growing their business. It is known that services by professionals such as marketing expert, accountant, and lawyer is not available in low price. In other hand fresh graduate student also find difficulties to find a job and also they have financial problems. Therefore our service is purposed to fill this gap by linking these two groups of people. Our business will facilitate students who have a good potential as well as talent to help the new or existing businesses to grow (produce a product with added values, enter into new niches) in a lower cost compared to professional services. 3.2 Service description 3.2.1 Services offered by Student-Storm: During the first year, firm will be offering the following services: Brainstorming of: new products, new packaging designs, new service ideas, innovative product features, new ways of reaching a certain market, new ways of conveying a particular brand message, new ways of promoting a product, innovative online campaigns, and better ways of recruiting or motivating employees Market analysis: identifying current trends, consumers taste and needs Creating virtual (computer based) prototype of developed product

3.2.2 Service producing process Brainstorming is a popularly-held concepta bunch of people who try to get away from the normal routine of business, who sit around a table and spontaneously shoot out ideas. The expectation is that the iterative process of sharing and refining ideas will result in valuable,
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actionable ideas. The brainstorming is a carefully planned, facilitated process. Based on cognitive and decision theory and refined by experience gained by conducting tens of brainstorms, the creativity and expertise of our idea generators- students, enables us to produce the ideas that can jump-start innovations. Brainstorming section: Adheres to strict rules of behavior Eliminates observer bias Is led by the most experienced student in the group Uses professional brainstormers, handpicked for the event who are outside the company, have a Generation Y perspective, and have diverse backgrounds and proficiencies. The process is completed within a time given by customer, including: Analysis and reporting Approx. 50-100 man-hours per project

The client: Owns the Intellectual Property produced in the project Is guaranteed full confidentiality Enjoys a low total cost of engagement Enjoys a 100% guarantee

3.2.3 How we work with students College Students play important role in our business. To make our business successful, we need to make sure that we bring bright student to our company. We create a data base which will be full of potential student that will working for us. Students from this data base come from different universities which we already build relationship with. Student-Strom gives opportunity for college student to increase their working experience. We also offer them rewards for
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working with us. We understand students needs, like additional financial support or extra working experience in order to compete in their career. Our company offer them wages or internship program in one of our partners company.

Also, member students of Student-Storm will be participating in different competitions such as business plan writing or case-study and SWOT analysis. Our students trained during brainstorming sessions, are expected to win these competitions. This kind of achievements of our employees will be put in Student-Storms web-site and brochures. It will create creditability of our organization, and attract more customers. 3.2.4 Unique features of service First, we work with the client, to conduct a needs assessment around their problem, to define and refine problem statement. From this process, we frame the brainstorm questions into the right progression of questions and allocation of time to elicit maximum output.After the problem statement is well-defined, we select the ideal grouping of idea generators from our extensive pool of experienced brainstormers to react to customers problem statement and provide new thinking they want. A Student-Storm brainstorming session is a group of 7 student idea generators. This process is well-known and in great demand for the quality of our Generation Y brainstormers and their highly desired perspective.The Student-Storm brainstorming sessions is led by a professional facilitator who is a proven all-star brainstormer. The session works through the question framework in about two hours. It is fast-paced, competitive yet collaborative. Sessions average an output of more than 150 distinct ideas; thats a new idea every minute. At the conclusion of the formal brainstorming session, the brainstormers engage in a brainwritng exercise, in essence to summarize and articulate their preferred ideas and to coalesce around what they feel to be the best ideas. Each Student-Storm brainstorming is recorded. The entire audio record is transcribed so that all ideas offered in response to each question are listed and linked to the specific brainstormer. The responses are analyzed by students themselves to select the best 10 ideas on the basis of enthusiasm, novelty and originality and how well they match client objectives.These ideas are organized into the most promising 10 themes and reported in detail. The summary highlights the most exciting
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ideas and most articulated themes. We have found that imagery often absolutely nails the concept, so our report to the client comprises some twenty concept visualizations. The report is delivered online as well as in Word format. 3.3 The business model we are following

Actually we found a business model which is very similar to ours. This model is from microconsultant, its a German company providing their customer with consulting and coaching in new ideas for marketing, financing, business plans and strategies. Microconsultant ( microconsultant.de ) is a small company consisting of two consultants only. A lady graduated in law and previously worked in many companies in different countries and a man who is graduated in economics and social science, he has a lot of experience in consulting especially of big companies.

Comparison of microconsultant and Student-Storm:

microconsultant

StudentStorm

Employees experienced no experience already built a networking with customers non graduated and friends in business constantly gain latest information and well educated, graduated market trends Number of Employees only 2 Management Team consist of 4 less idea generation 84 Students high working load high rate in idea generation exclusive ideas Time Management very busy flexible Market Segmentation Micro (<10) Business Small (<50) Business Small (<50) Business Medium (<75) Business Target Market providing all kind of businesses and Apparel, Luggage-Bags-Cases, Shoes, 12

industries

Textiles Fashion, Gifts, Crafts, Eyewear, Timepieces, Jewelry Sport and Entertainment Customer Relationship maintaining by delivering quality maintaining by delivering quality Pricing order: 3,600 15,000 order: 2,500 RM 7,500 RM = 14,400 RM 60,000 RM depending on negotiation How to reach customer? already created awareness in market public relation website, networking, previous customer Government organizations Board of advisor

Added Values We took microcunsultants business model and added some values, which will be our keys of success. StudentStorm can serve more and exclusive ideas in shorter time and in a lower price margin.

3.4 Future services In putting the company together we have attempted to offer enough services to allow us to always be in demand by our clients. However, economics has provided us with a new era of opportunities for the small business in which we can only guess at the needs. The most important factor in developing future services is market need. Our understanding of the needs of our target market segments is one of our competitive advantages. It is critical to our effort to develop the right new services. We also have what we call a "core service engine" (market research) that will be the foundation of future products. In the future, Student-Storm can provide the following products:

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Time Year 2

Product description To become a firm with personnel coaching or personal development department. Students and graduates trained in brainstorming and research in different fields can gain a great knowledge and experience. Those who are already familiar with this, but yet not exposed to teamwork will upgrade their work capabilities. This will produce new experts for different industries. Also, we are seeking to be a firm which can provide different industries with statistical data. As our clients need to know the latest trends; latest figures in marketing, supply and consumer demand, StudentStorm provides them with such information. Later, we can combine all our observations and sell it to other interested parties in the form of journal publication.

Year 3

To be a platform, where it can sell expert-students to other companies who are in need of this type of employee. With this, companies cut their expenses spent for our services by compensating us with transfer price of student working for us.

4.0 Market analysis summary 4.1 Market segmentation Student-Storm will be focusing on local businesses looking at launching new product or service, in need of information about current trends of the their market investing in the country. These will be small and medium sized firms looking for a total service and quality work. Our most important group of potential customers are local business people. These are potential customers who want to have a feel and understanding of the local markets and the opportunities, and constraints they present to them. Start up, small and medium sized businesses cannot afford to spend long time and big financial resources to get bargain information, questionable expertise, product or service model. As they go into markets looking at new opportunities, they are very sensitive to risking their company's name and reputation.

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Medium-sized growth companies: particularly in rapidly expanding markets, Student-Storm will offer an attractive development alternative to the firm that is management constrained and unable to address opportunities in new markets and new market segments. Small-sized companies: in an increasingly competitive environment entrepreneurs are becoming more cautious in the markets they seek to enter and on establishing new market opportunities. They are often seeking for prior research to be done to identify possible markets that are suited to their resources and capabilities. Hence the most likely types of businesses to require our services would include:

New businesses seeking investment or start-up capital Existing companies which are expanding or introducing a new product or service.

4.2 Target market Our Target Market is oriented towards small and medium size firms. We can satisfy the demands of those industries by serving ideas and innovations regarding the trends in the current market created by young dynamic students. Main Target Markets: Apparel and Textiles Fashion accessories: Eyewear, Timepieces, Jewelry Sport and Entertainment Food industry Media industry: magazines, newspapers, comics, Internet, TV, radio

Next to these we serve also companies, which are interested in what we are doing and we believe we can help them with students brainstorming.

4.2.1 Target market trends There are three very important trends which we should consider in our business: Trend 1- (most important) : Rapid growth in complexity of business in an ever-changing market and competitive environment needs continuous and rapid adaptation in both strategy and
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structures of companies. Companies become in need of latest information from market. Trend 2- (moderately important) : In the future there will be a percentage of unsuccessful ventures resulting in more failures and misunderstanding of market. This in turn will emphasize the need for specialized investigation for low price. Student-Storm comes here to be a helping hand. Trend 3- (least important) : Predicted continued growth in consulting because companies will be unwilling to pay fixed costs of salaries, choosing instead to treat specialized financial knowledge and needs as variable costs from external sources. 4.2.2 Target market growth
We have no indication of market growth in this pulverized and diffuse market. No statistics are available. What we do know is that there is growth potential, and plenty of potential market.

4.3 Company positioning Our firm is going to get customers through offering them services for low price. However, as we mentioned above in Service background section, student can offer good quality services for low price. This is the main philosophy of Student-Storm. To keep our customers loyal, well try to sattle our service at student price and remove the missconception that low price is for low quality product.

4.4 Pricing policy Student-Storm developed very unique pricing policy which is optional for customers. Customers will be given a questionary to fill. From that, we will understand what type of services our customer needs. Charges will flactuate according to numbers of services provided by Student-Storm. After establishing solid fundament for our business, we are planning to offer a special option. This option is not getting any payment from customer. But customer should offer a internship place for student who delivered a service for them. This option expected to increase number of
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student willing to join ti our firm, as well as increase number of companys willing to cooperate with us. 4.5 Distribution channels In order to remove any barriers for customers to reach Student-Storm, there will be no middleman in between. All business interactions with customers will be done by management team and ready product will be delivered and represented to customer directly.

4.6 Promotion At the beginning of business, marketing and sales department mainly will be focused on advertisement of Student-Storm. Fliers and brochures containing all information about the firm and its services will be sent to other companies who seem to be our potential customers. Student-Storms banners will be displayed in government banks, insurance companies and government tax authorities. The same activities will be done in universities. By this way management team has decided to introduce itself to business people and students. Considering that long term advertisement for Student-Storm will be very costly, Public Relations will be used afterwards. Also, Student-Storm will be introduced in government owned business magazines by having interview sessions. We also depend on government organization which registers new businesses. We will try to get the database of new business start-ups. Promotion of Student-Storm will be via telephone calls and e-mails.

4.7 Sales It should be mentioned that, our firm has one Marketing and Sales department and one member in Board of Advisers who will be helping us to reach customers and make profitable relationship. These two sides will be working in cooperation, sell our services, distribute it and try to get more information about customers. Approaching customers will be done in the following order: 1. Advertisement (sending brochures, e-mails, displaying banners) 2. Broad network of adviser will be used to get potential customers
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3. Management team will do face-to-face or personal informative conversations with business people 4. Orders will be received from customers 5. Ready product will be delivered in soft and hard copies. Management team will organize product presentation for customers and their organization.

4.8 Competitors analysis General Business Consultancy firms Strengths: Expertise in certain functional areas, Student-Storm intends not to compete with general business consultancy firms. Having big amount of financial resources, big consultancy companies may take our business model and implement it. Weaknesses: The inability to look at a specific focus to provide actual marketing and market research expertise and experience. Attorneys and Accounting firms Strengths: Able to provide good accounting or legal advice and services with the plans being done by the professionals. Weaknesses: They often lack the understanding current and future trends of market. Very little market research, if any, is often undertaken, and often ineffectively. The most significant competition is no consulting at all, small firms choosing to do market research, business development by themselves and not approaching anybody. Strengths: No incremental cost, the general work is done by the people who are entirely responsible, the planning is done by those who will implement it.

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4. 9 SWOT analysis of services provided by Student-Storm Strengths

A marketing plan with clear goals and strategies An aggressive and focused marketing campaign Establishment and maintenance of a well-known business name Ideas produced by Student-Storm is not under external influence, as we are not responsible for implementation of the idea

Number of students and ideas carried by them is huge Our employees are young and ready to provide dynamic ideas for cheap price which is affordable for any size of company

Weaknesses

Lack of a well-established networking in the target market Due to small size of the company, Student-Storm is not a well-known name in the market, it can be left unnoticed

Students dont have an experience of working in the area which they are studying

Opportunities

Identifying another specific niche helps to serve small amount of businesses well, and slowly occupy the whole segment

Current growth of the economy is an opportunity for local individuals to invest and start their own businesses

More business owners are willing to get information about needs of young people which are becoming main source of profit

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Marketing and sales through internet helps to cut costs significantly, and introduce our company better

By establishing good platform of students, we can become a key player in Human Resources business by creating on-line job market, and provide students as Talent Capital for other companies

Threats

Existing competition and new entrants a lot of consultancy firms are providing their services in Kuala-Lumpur

New marketing strategies and tactics by established companies Presence of well established government organs that deal directly with coordinating entrepreneurs

To avoid extra cost in business, small and medium sized firms may not spend money on any consultancy

5.0 Management summary Student-Storm will be managed by working partners. The company, simply because of its size, will function more as a partnership than a corporate organization, in the early stages. With such a group, it will be simple to communicate with and support one another. As the company grows there will be more structure to the organization, with new employees being assigned a supervisor or subordinate. When the company is at its full staff potential, it will operate as any closely held organization.

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5.1 Management Team Our team is managed by the following members who are also the shareholders:

Name Firdaus Adib Olimjon Muminov Ilyas Nurhadi Robert Resch

Department IT & Programming Operating & Accounting Marketing & Sales Human Resource

Description of Human Resource Department: This department is only responsible for students in the following ways: Recruiting students Organizing the brainstorming sessions Organizing training programs for students

To support the company we are willing to engage additional a number of employees in different fields at and for a certain time:

end of the first

after 3 month

after 6 month

after 9 month

Trainer, Teacher, Coach Controller Secretary Accountant Lawyer Programmer 1 1 1

2 1

1 1

1
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for long-term

after 1 year

kick-off

1 year

Marketing & Sales Human Resource

1 1

1 1

1 1

1 1

1 1

5.2 Board of Advisors

We have also secured the assistance and support of the following business and industry experts to help in the decision making, strategizing, and opportunity pouncing process.

Name

Field of Knowledge/ Occupation

Experience/Descreption Mr. Radzi has many of years Experience in the field of Marketing and Sales. He

Mohamad Radzi Bin Zainol

Marketing & Sales / Lecturer

can help us to find customers and to create contact to them. Additionally he consults us to establish a successful sales strategy and finally we will get a feedback to improve our doing. As a Consulter he knows very well, how

Ilyass father

Sales / Consulter

we interact with costumer and we serve them a desired product.

Entrepreneurship/ Roberts father recently retired

He was 35 years entrepreneur of his own firm and knows how to raise a company. Our Bank is supporting us to find

Bank

Accounting & Sales

customers and is helping us to do the Accounting.

Lawyer

Entrepreneurship & Accounting

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Our Lawyer knows about our legal form of company and can help us to handle it.

5.3 Companys Process Management

Our product passes through a certain process in a value-added chain our company:

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6.0 Financial plan Our expected costs in the first month of our start-up: Stationery and Basic Office Supplies Copying machine and Printer Computers Outsourced services : Accountant Lawyer Programmer Marketologist RM RM RM RM RM RM 1,000 3,000 3,000 2,000 2,000 19,000 RM RM RM 1,000 1,000 6,000

Other expenses (Internet, telephone, transportation) Total expenses per month

Costs of business starting from month No.2 till No.12 will be as following: Stationery and Basic Office Supplies Outsourced services : Accountant Lawyer Programmer Marketologist RM RM RM RM RM RM 1,000 3,000 3,000 2,000 2,000 12,000 RM 1,000

Other expenses (Internet, telephone, transportation) Total expenses per month

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After one year in business, Student-Storm will be spending RM 18,000 every month: Stationery and Basic Office Supplies Insurance Salaries: Brainstorming trainers Controller Secretary Marketing manager HR RM RM RM RM RM RM RM RM 1,000 2,000 1,500 2,000 1,500 2,000 2,000 18,000 RM RM 1,000 5,000

Transporation Expenses Other expenses Total expenses per month

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6.1 Income statement For the first year of operations: Net sales (no. of orders *avg. price of service = 20*RM 6000) COGS (no. of orders *avg. cost of service sold = 20*RM 2000) Gross profit Operating expences: Stationery and Basic Office Supplies RM 12,000 RM 80,000 RM 40,000 RM 120,000

Salary expences: Accountant Lawyer Programmer Trainer Marketing manager RM 4,000 RM 9,000 RM 18,000 RM 7,200 RM 24,000 RM 24,000 RM 98,200 RM 18,200 RM 42,000 RM 60,200

Other expences Total operating expences: Operating loss Interest expence Nett loss

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For the second year of operating: Net sales (no. of orders *avg. price of service = 75*RM 6000) COGS (no. of orders *avg. cost of service sold = 75*RM 2000) Gross profit Operating expences: Stationery and Basic Office Supplies RM 12,000 RM 300,000 RM 150,000 RM 450,000

Salary expences: Accountant Lawyer Programmer Trainer Marketing manager RM 4,000 RM 9,000 RM 18,000 RM 7,200 RM 24,000 RM 24,000 RM 98,200 RM 201,800 RM 42,000 RM 159,800

Other expences Total operating expences: Operating income Interest expence Nett income

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Plan B- Income statement for the second year IF Student-Storm gets 50 orders:

Net sales (no. of orders *avg. price of service = 50*RM 6000) COGS (no. of orders *avg. cost of service sold = 50*RM 2000) Gross profit Operating expences: Stationery and Basic Office Supplies Salary expences: Accountant Lawyer Programmer Trainer Marketing manager Other expences Total operating expences: Operating income Interest expence Nett income

RM 300,000

RM 100,000

RM 200,000

RM 12,000

RM 4,000 RM 9,000 RM 18,000 RM 7,200 RM 24,000 RM 24,000 RM 98,200 RM 101,800 RM 42,000 RM 59,800

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6.2 Break-Even-Point:

Variable Costs * X + Fixed Costs = Sales * X X = Fixed Costs / ( Sales Variable Costs ) We know that we cannot achieve the Break-Even-Point in the first year, but it should be possible in the second. To calculate how many orders we must obtain for the Break-Even-Point we summed the Fixed Costs of the first two years and divided it by the difference of average Sales and Variable Costs. X = 320,200 / ( 6,000 2,000 ) = 80

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That means after 80 orders we are making profit. Regarding our forecast of 20 orders in the first year and 75 orders in the second, we probably achieve the Break-Even-Point in the 10th month of the second year.

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