Assignment: Business Plan Breakdown 3-The Simplified Financial Plan
This is the third milestone of your business plan - the financial plan.
• Tasks:
• Research the costs, financial statements, cash flow, and risks of your chosen project. Based on your research and the knowledge you have gained from the course, create a simplified 4- to 5-page financial plan including tables and charts. For the financial plan:
o Estimate the capital requirements, use of capital, start-up requirements (if applicable), and other probable costs involved in the implementation and subsequent operation of your project.
o Identify the sources of financing.
o Define a payback period.
o Prepare cash flow projections.
o Prepare a projected balance sheet representing the end of the first calendar year of operations and defining assets and liabilities, both current and long term.
o Prepare income statement projections for the end of the first calendar year of operations, including charts showing gross revenues, gross profit, and net income.
o Define the meaning of a break-even analysis and prepare an analysis appropriate for your project.
o Prepare a ratio analysis, including the definition and value of the following ratios (whichever applicable) - current, quick, debt, debt-to-equity, average inventory turnover, receivables turnover, payables turnover, net sales to working capital, net profit to sales, and net profit to equity.
o Prepare a list of possible risks associated with the implementation and future operation of your project and describe the significance of each of them.