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Projected Revenue:
Projected Revenue:
After estimating initial investment and expected sales, Sanjo’s projected revenue confirms whether the Canadian expansion is financially viable.
After estimating initial investment and expected sales, Sanjo’s projected revenue confirms whether the Canadian expansion is financially viable.
From the base scenario, 5,000 pairs sold at CAD 45.50 per pair equals CAD 227,500 in revenue. With startup costs between CAD 50,000 and CAD 85,000, Sanjo can cover most costs within the first year. In the optimistic scenario (7,000 pairs), revenue grows to CAD 318,500. In a conservative case (3,500 pairs), revenue is CAD 159,250.
From the base scenario, 5,000 pairs sold at CAD 45.50 per pair equals CAD 227,500 in revenue. With startup costs between CAD 50,000 and CAD 85,000, Sanjo can cover most costs within the first year. In the optimistic scenario (7,000 pairs), revenue grows to CAD 318,500. In a conservative case (3,500 pairs), revenue is CAD 159,250.
The Canadian footwear market is also growing. Statista (2024) reports that the sports footwear market in Canada is expected to grow 5% to 8% annually. If Sanjo increases visibility in year two and grows sales by 10% (5,500 pairs), revenue could reach CAD 250,250, assuming the same profit per pair.
The Canadian footwear market is also growing. Statista (2024) reports that the sports footwear market in Canada is expected to grow 5% to 8% annually. If Sanjo increases visibility in year two and grows sales by 10% (5,500 pairs), revenue could reach CAD 250,250, assuming the same profit per pair.
This growth potential, combined with relatively low investment and shared risks in a strategic alliance, supports Sanjo’s expansion plan.
This growth potential, combined with relatively low investment and shared risks in a strategic alliance, supports Sanjo’s expansion plan.
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