Business Analysis For Your Go To Market

Based on the inputs you provided, I can provide you with a financial projection for your company for the next four years. However, a market analysis would require more specific information about the current state of the video game T-shirt industry, consumer trends, and potential competition. I will provide some general insights, but it would be helpful to conduct more research to fully assess the market potential and competition. Executive Summary: You are planning to start a company dedicated to manufacturing video game T-shirts with an expected price of €20 per shirt. Your cost of goods is €8 per shirt, and you expect to sell 20,000 shirts in the first year. You plan to spend 20% of sales on marketing and promotion, and you will need three employees costing €30,000 per year each. For every 20% increase in sales volume, you will need to hire one extra employee. Other expenses are expected to be around €50,000 per year, increasing by 10% for every 20% increase in sales. Based on the assumptions you provided, your business has the potential to be profitable. However, there are several factors that could impact the success of your company, including competition, market trends, and potential challenges in production and distribution. Market Analysis: The video game industry is a rapidly growing market, with millions of gamers worldwide who are passionate about their favorite games. Many gamers enjoy wearing T-shirts that feature characters, logos, or other elements from their favorite games. This creates a strong market for video game T-shirts, but there is also significant competition from other companies that manufacture and sell similar products. To succeed in this market, you will need to offer high-quality products that appeal to gamers, as well as effective marketing and promotional strategies. Financial Projections: Based on the assumptions you provided, I have created the following financial projections for your company: Year Sales Volume Revenue Cost of Goods Gross Profit Marketing Expenses Employee Costs Other Expenses Total Expenses Net Profit/Loss 1 20,000 €400,000 €160,000 €240,000 €80,000 €90,000 €50,000 €280,000 €-40,000 2 24,000 €480,000 €192,000 €288,000 €96,000 €120,000 €55,000 €367,000 €113,000 3 28,800 €576,000 €230,400 €345,600 €115,200 €150,000 €60,500 €535,100 €40,900 4 34,560 €691,200 €276,480 €414,720 €138,240 €180,000 €66,550 €620,270 €70,930 Risk Assessment: There are several risks associated with starting a business in the video game T-shirt industry. Some potential risks include: Strong competition from established companies in the market Fluctuations in consumer demand for video game T-shirts Potential challenges in production and distribution, including quality control issues, supply chain disruptions, and shipping delays Changes in market trends and consumer preferences that could impact sales and profitability To mitigate these risks, you will need to carefully monitor market trends, maintain high quality