InPress... Finance and Equipment

Kirsty and Sadie worked out our final figures for InPress. They started off by filling in the yearly expenses sheet that Bridget gave us. We based this on my findings on equipment expenses, Kirstys findings on insurance, Nialls decision on which studio space to rent and some estimations suggested by Bridget.

The studio space that Niall found includes bills and wifi, but has no furniture. So Sadie and Kirsty started by looking at freecycle to see what we could get for free. They decided that we would need two desks and computer chairs (for our two iMacs), one sofa, a large table to work on and a filing cabinet. Here is what we managed to acquire for free...

They also managed to find a whiteboard, some scrap wood for Niall to build our exposing and screen washing unit, a colour laser printer, a kettle and printing cartridges.

Niall says that he has a spare massive dining table in his garage at home that would be ideal for working on and a spare computer chair.
We also looked at Gumtree and IKEA for all the bits of furniture we didn't manage to get for free, and added this to our start up cost and first 12 month outgoings.

They also looked into getting a Sage one account for our accounting, also we looked at solicitor costs and different insurance costs.

MOT: £40
Tax: £120
Car insurance: £385
Business insurance: £30
Professional and product liability insurance: £100
Public liability insurance: £35
Rent including bills and internet: £3,420
Accountant software: £144
Solicitor: £70
Computer repairs: £300
Equipment- computer rental, screens etc: £4,320
Furniture: £110

When all added up this makes our yearly outgoings £9,074, minus the materials and printing costs.
We decided that £100 an hour would be a reasonable price to charge, considering that their is four of us so the work will get done more quickly. We thought that the best way would be to charge the client material and printing costs, as it may vary from customer to customer.

Assuming that we want to earn around £20,000 a year each, this would mean our estimated yearly turnover is £89,074.
This would make our required monthly income £7,423, which would mean we would have to work at least 75hrs per month at £100 an hour plus cost of materials and printing.

We also decided that we would all earn the same wage, owning a 25% stake in the company each.

We emailed Jane to double check our figures, and also to see if our rate of £100 an hour plus material costs is acceptable.