# Jimmy's Just Kicks

## Buisness Plan

My business, Jimmy's Just Kicks, will be a shoe retail business that I will run online in my spare time. I want my favorite hobbies to reflect the products I sell, so my two products will be running shoes and basketball shoes. I enjoy running and playing basketball, so I want my company and products to reflect my passions and help spread them to other people.

## Monthly costs

Running shoes cost \$40 a pair from the manufacturer and will be sold for \$85 a pair. Basketball shoes cost \$60 a pair from the manufacturer and will be sold for \$100 a pair. The manufacturer requires that I must sell at least 10 pairs of running shoes a month and at least 5 pairs of basketball shoes a month.

I would like to have 11 months initial start-up time from the \$10,000. To make sure this is possible, my business will spend no more than \$900/month on running and basketball shoes.

cost=\$40x+\$60y

sell=\$85x+\$100y

## Overall Restrictions

I am only able to sell 25 pairs of shoes a month due to time constraints. I will only spend \$900 a month on product (running and basketball shoes) to insure my company has 11 months of start-up time. Because of the manufacters requirments, I must buy and sell at least 10 running shoes a month and at least 5 basketball shoes a month.

## Restrictions: Inequalites

x= number of pairs of running shoes y= number of pairs of basketball shoes

Number of shoes sold a month: x+y≤25

Monthly cost: 40x+60y≤900

Must sell at least 10 pairs of running shoes a month: x≥0, x≥10

Must sell at least 5 pairs of basketball shoes a month: y≥0, y≥5

## Profits: Equations

x= number of pairs of running shoes y= number of pairs of basketball shoes

Profits will be made by subtracting the costs from the selling price

*All figures are per month, not per year

Sell= \$85x+\$100y

Cost=\$40+\$60y

Profits= sell-cost

Profit= (85x-40x) + (100y-60y)

Or

P= \$45x+\$40y

So, profits would equal \$45 times the number of running shoes, plus \$40 times the number of basketball shoes sold a month.

## Maximizing Profits

(x,y) P=\$45x+\$40y

x= pairs of running shoes y= pairs of basketball shoes

*Original point was (10,8.33). 8.33 must be rounded to 8 because you can't sell .33 of a pair of shoes.

*(10,8) P=\$45(10)+\$40(8)

P=\$450+\$320

P=\$770

(10,5) P=\$45(10)+\$40(5)

P=\$450+\$200

P=\$650

(15,5) P=\$45(15)+\$40(5)

P=\$675+\$200

P=\$875

According to the figures, monthly profits will be maximized if I sell 15 pairs of running shoes and 5 pairs of basketball shoes a month. This would give me \$875 of profit a month, opposed to \$770 from (10,8) or \$650 from (10,5). Seeing this model for profit tells me that this could be a profitable buisness model to use in real life.