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Feasibility Report EssayThe company leave alone sell custom-made barrooms, cupcakes and coffee. The tax incomes from the note will come from the sale of decorated cakes and cupcakes, as well as coffee for customers who visit the shop. The line of descent will raise revenue from run cake decoration and creation of the centerpieces of many of the most remarkable occasions of the lives of clients. Service revenue will come from different customized cake designs, decoration and bake creations. The business line will use many different designs as discussed by Graham (2007) and Wilson (2011). The major revenue source during the initial year will be service revenue, including drink, cakes, and cupcakes sales. The business includes walk-in service. It will have two ordering delivery channels phone orders and via online ordering. In addition, position bays will be provided at a fee. The projected revenue from parking bays will be $75000 per year. The revenue from the sale of cupc akes, cakes and drinks is projected to be $100000 yearly. The revenue from custom-making service will be $50000 annually. in that attitudefore, the arrive projected revenue will be $225000. Cost DriversThe business will consider the costs in order to stay in business (Marron, 2014) (Kidder, 2012 ). a) upfront CostsSince the business is new, there will be several starting costs beforeofficial opening. Upfront costs consist of the purchase of article of furniture and fittings (table, chairs, coffee machines, installation of EFTPOS (electronic funds transfer at point of sale) and computers, cutlery, and front decoration (Ilasco and Seto, 2012 ) (Spencer, 2010). Advertising outlays will consist of the advertising campaign in the initial year. The advertising drive will be ge bed towards increasing sales to cater for the other costs (Marquis, Demand Media, 2014). Materials for shop decoration will be used to attract new customers. The total cost will include the cost of employing an interior designer. In addition, the business will consider the bond for the rent. This is because the expense must be paid prior before the business is opened. There will be other upfront costs that will include the certificates and legislations call for for the business opening (Department of Health, 2014). b) Fixed CostsOwing to the scenic stadium of Melbourne, the high cost of rent must be taken into account. Utilities like lighting, heating, phone lines, internet router and air conditioning have to be considered before the official opening. The business will choose a cheap electricity supplier. There are many to choose from (Smart Utilities, 2014). For an attractive design of the display in the shop, an interior designer with experience will be sought once per year. The cost associated with this will be recorded as expenses for design. Besides, the parking bays rental will be a yearly fixed cost paid to Melbourne City Council (Hamer, Currie and Young , 2011). The parking bays will be provided to increase revenue. The business will take legislations into consideration, because set annual fees will have to be paid to the relevant bodies to ensure business continuation. c) Variable CostsThese are the expenses that will change with the output of the business. The main variable cost in the cake and cupcake shop is raw materials used in the production of cupcakes, coffee and cakes such as lollies, vegetables, fruits, flour, milk, coffee beans and chocolate (Leach and Melicher, 2014). The cost of vegetables and fruits will change depending on seasonal and weather changes. There will be other variable costs like package expenses boxes, bags, staff wages and utilities. The workers in the shop will include1 baker1 designerJunior casual staffWages will be paid fortnightly. Additionally, the business will offer staff uniforms and training opportunities.There will be allowance of discount expenses owing to the high-inventory turnover and the need to supply fresh pr oducts. On special occasions, the business may have deals or offers that will disregard the unit profit. There will be other expenses like machinery maintenance, new fittings and insurance. These will be required as the business grows. Resource Requirements/Mapping humanity ResourceIt will be very easy to get the key employees as it will only involve placing adverts on the street notice boards. There will be an added cost of interviews, as well as paying the Melbourne City Council (City of Melbourne, 2014).Physical ResourceProperty for lease is available in the area identified. Due to the scenery of the area, the cost of lease is high. However, the expected returns are high. The business premises will be gotten under a one-year lease. This will except the cost that may be incurred in paying monthly costs. Similarly, it will avoid the costs associated with monthly rent increases. Financial ResourceThe total inaugural cost is $130000. The business will raise $30000 and $100000 will be obtained from the bank as loan. Costs for maintenance will be catered for by the revenue from the business. Investment SizeThe business plans to raise $130000 to meet its startup cost. The funds will be used for Developing the companys cupcake and cakes store locationFinancing for the first year of operationCapital to buy baking equipment and ovensThe company will contribute $30000 to the venture. The remaining $100000 will be financed by the bank as loan. Projected Startup CostsInitial renting Payments and Deposits$20000Working Capital$60000Security Deposits$20000Opening Supplies$10000Company Vehicle and Lease Deposits$2000Marketing Budget$10000Miscellaneous and Unforeseen Costs$8000Total Startup Costs$130000ReferencesAaron Marquis, Demand Media , 2014. The Average Profit Margin for a legal community Bakery. Online uncommitted at http//smallbusiness.chron.com/average-profit-margin-cake-bakery-14214.html Accessed 11 05 2014.Department of Health, V. A., 2014. Starting a food b usiness. Online Available at http//www.health.vic.gov.au/foodsafety/bus/foodbus.htm Accessed 11 05 2014.Graham, J., 2007. The Crabapple Bakery Cupcake Cookbook. Print ed. capital of the United Kingdom Penguin Group (USA) Incorporated. J. Leach, Ronald Melicher, 2014 . Entrepreneurial Finance. 5 ed. Stamford Cengage Learning. Kidder, D., 2012 . The Startup Playbook Secrets of the Fastest-Growing Startups from Their Founding Entrepreneurs. Illustrated ed. San Francisco Chronicle Books. Marron, D., 2014. Cupcake Economics. OnlineAvailable at http//dmarron.com/2009/11/28/cupcake-economics/ Accessed 11 05 2014.Meg Mateo Ilasco, Catherine Seto, 2012 . Mom, Inc. The Essential Guide to track a Successful Business Close to Home. Illustrated ed. San Francisco Chronicle Books. Melbourne, C. o., 2014. Rates and valuations. OnlineAvailable at https//www.melbourne.vic.gov.au/buildingandplanning/ratesandvaluations/Pages/RatesandValuations.aspx Accessed 11 05 2014.Paul Hamer, Graham Currie, Willi am Young , 2011. Parking Price Policies A review of the Melbourne congestion levy. Australasian Transport Research Forum 2011 Proceedings , 1(1), pp. 1-16. Spencer, P., 2010 . Start a Cupcake Business Today. London InformationTree Press. StartupBizHub, 2014. Starting a Cake Business. OnlineAvailable at http//www.startupbizhub.com/starting-a-cake-business.htm Accessed 11 05 2014.Utilities, S., 2014. Compare Electricity Rates in Victoria. Online Available at http//www.smartutilities.com.au/electricity-comparison-victoria/ Accessed 11 05 2014.Wilson, D., 2011 . Bakers Field Guide to Cupcakes. Unabridged, reprint ed. New York City Houghton Mifflin Harcourt.