Promotion Costs

Promotion Costs

• Newspapers and Magazines: Regarding the promotion through newspapers and magazines, we opted for making ads in weekly and medium size magazines and newspapers. In the first year we made an investment of € 55,000 which will reach € 60,000 in the third year.

• Social Networks: In terms of internet, facebook page will be created at no cost to our company. Apart this, we decided to bet on adwords that are targeted to consumers of internet, this option has a cost of € 5,000 per year.

• Sponsors: Within this parameter we have chosen to partner with a famous Surf athlete, Frederico Morais. We think that the sport that this athlete practices can relate to some extent with our product by being a beach sport. The cost of sponsoring the athlete will be approximately € 25,000 in the first year to which are added other costs relating to other beach events sponsorships.

• Rádio: We think it is also important disclosure our product through this social media. For that we will spend a sum of € 20,000 in the first year to be used in ads that will  pass at specific times.

Interests: In terms of interest on loans incurred, after a negotiation with the banks we managed to establish the value of € 25,000 annually for the payment thereof. The aim is that in the future we will be able to reduce  bank borrowing and consequently this amount of interest.

Income taxes: The RAI is negative in the first and second years, because of that  we will receive ​​ respectively € 15,330.50 and € 8,030.56 for the first and second year. As from the third year the RAI will be positive then from there we will have to start paying tax, in this case, we will have to pay € 7,316.22.