InPress ...Final Costings

So Sadie and I sat down together with some big pieces of paper to makes notes on and set about working out our annual turnover, income and out-goings. We used the sheet which we previously filled out with Bridget as a basis to ensure we covered all costs necessary.

There were some costings which needed to be taken into consideration but required us to already have a figure for our annual turnover (i.e. Business insurance, liability insurance), but to get this we needed to know the figures we were trying to find (a vicious cycle!) ....

So we just simply estimated these costs based on what Bridget had told us.

We 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. Rather than buying all brand new furniture we decided to look on the following website to see what we could get for free or at a reduced price....

Wood to build our wash basin in!

We decided to get our desks for our studio from IKEA as they are fairly cheap and will be more reliable to hold our Macs on! 

...we wanted to buy this and transform it into a wash basin for the screens with the wood on freecycle. 

We also looked on Preloved and Gumtree to see what they had to offer...

....after a little research we decided we had found what we needed on Freecycle and didn't need anything from these two.

 

We then had a little look into solicitors. However, we decided to stick with Bridget's advice and use a package....

Firstly we looked at Sage One Cashbook ...this works out at £5/month. However, we soon realized that for an extra £5/month we could upgrade to the Sage One Accounts. This would also provide us with online access to our account and online help. It is aimed at company's with 1-5 people, so it is perfect for InPress and a lot cheaper than hiring an accountant.

We then got onto look at public liability insurance and business insurance...

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.



After, doing our calculations we then decided it would be best to give Jane a quick email to run the figures by her....