| Business Plan |
| Invest SAR 500,000 cash savings for capital equipment and “working capital. ” (In an emergency, you can borrow up to another SAR 200,000 from friends and family) |
| Buy Capital Equipment for SAR300,000 during organizing period for business , 3 years useful life |
| Acquire upfront-paid services – SAR 5/service (“variable cost” as depends on number of services) |
| Additional variable cost per service for processing etc. SAR 1/service |
| Average time from order to delivery is 1 month |
| Rent, Utilities, Insurance, Bookkeeping, etc (fixed costs) – SAR 40,000/month – |
| Sell service to customer/ B2B for SAR 10/service |
| Average time from delivery until when business customer pays is 2 months (Typical “Net 60” Payment Terms) |
| Sounds like a no-lose proposition! |
profit versus cash
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