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Biscotti Bakery - Application Of Investment

APPLICATION OF INVESTMENT

This plan reveals the importance of immediate capital to increase sales by: 1) the designing of twelve-pack boxes for distribution by Arnold Brothers and eventually other outlets; 2) the development of twenty-four pack boxes for the holiday gift market; 3) the hiring of personnel to increase volume of production; 4) the purchase of labor-saving equipment; and 5) purchasing shipping containers to service current outlets more efficiently and to increase market share at the state and national levels. The amount needed for this, as detailed in the capital spending plan, Exhibit III, is $87,000.

Although some assumptions were made, most projections are based on real production capabilities, actual expenses, and estimates from professionals. With persistence, it is realistic to expect annual sales of one million dollars within five years, guaranteeing a generous return on the capital investment.

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