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G8 IDU Design / I&S: Finance

Role and Goal

To work out the Finances behind your groups ideas. You will need to work out how much it will cost to make your product, how much you want to sell it for in order to make a profit, and finally you will need to work out how much money you want to ask the Dragons for and what percentage of the company you are going to offer to them.  
 
This will involve you working closely with each of your team members. You will need to take direction from your CEO and give them guidance as to the financial viability of the product.  
 
You will need to talk to the person in charge of research and development to work out what costs would be involved in developing the design of the product in terms of materials, labour, tools and equipment. 
 
You will need to work closely with Marketing to look at setting a price for the item and make sure that this is a reasonable price to charge considering the price of your main competitors and whether you will be able to make a profit at that price.   

Potential Dragon Questions

 

  • What should you consider to be able to produce the product and get it to the customer? 

  • How much should you charge for the product or service? How does this compare to your competition?

  • How much money is needed to get the business started (list of necessities)? 

  • What are your operating costs? (Include employee salaries, rent, bills, material costs, transport costs etc) 

  • How much money will your business earn each month by selling your product or service (graph/chart)? 

  • How will you make the business grow in the future (What is your development plan)? 

  • Can you explain that chart again? 

  • Explain why you are focusing on that target market. 

  • What would you do if your predicted launch strategy does not work out as planned?