Case study :
Jules and Oscar Interior Designers
Experienced interior designers Jules and Oscar decide to go into business together. They
enter into a partnership, with each of them investing \u00a325,000 into the business. Their
“product” is a home-makeover service, modelled on the popular daytime television
programmes where ordinary households are transformed through small building work and
decoration. They also rent a small office where they employ a receptionist\/administrator on
a part time basis, two days a week.
Revenues:
Jules and Oscar expect to gain 2 projects per month for the first 6 months of trading; each
project will generate \u00a310,000 of sales and will be paid up front, in the month of the work
starting. In third quarter, they are expecting that sales will increase to 3 projects per month.
The final quarter, they assume that business will slow down as customers prepare for
Christmas \u2013 they anticipate 1 project per month for the final 3 months of the year. Each
project is expected to last one month.
The main costs of the business are:
\uf0b7 Equipment – \u00a32,500 (month 1) & \u00a32,500 in month 4)
\uf0b7 Marketing – \u00a3250 per month
\uf0b7 Legal and accounting costs – \u00a31,250 (month 1)
\uf0b7 Project materials \u2013 \u00a31,500 per project (i.e. \u00a33,000 per month).
\uf0b7 Sub-contracted labour (other tradesmen) – \u00a34,000 per month. These will be paid in
the month incurred.
\uf0b7 Emily (receptionist\/administrator) – \u00a3500 per month
\uf0b7 Jules & Oscar will pay themselves a salary of \u00a31,000 each per month whilst the
business is established.
\uf0b7 Rent – \u00a3200 per month
\uf0b7 Phone and internet – \u00a3100 per month
\uf0b7 Electricity – \u00a3100 per month
\uf0b7 Water – \u00a350 per month
\uf0b7 Business rates – \u00a3100 per month<\/p>\n\n\n\n
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