Homework: Business Plan
In this homework, you will create a condensed business plan for purchasing and operating a professional sports team. This is a hypothetical sports team and you may make assumptions to support your key points.
Include the following elements in your condensed business plan:
o Overview: Introduce the business plan for purchasing and operating a professional sports team, and provide a thesis statement for your business plan.
o Marketing: Discuss how specific marketing promotions will help drive revenue and profitability for your sports organization. Consider trends, market strategy, pricing, sponsorships, advertising, and revenue generation sources, etc.
o Tax and Legal Issues: Discuss at least one tax and one legal issue you may face in the purchase or operation of your sports business.
o Financial Plan: Develop pro-forma financial statements (5 years) for your sports business. Include:
o An income statement on a monthly basis for year 1, a quarterly basis for year 2, and an annual basis for years 3, 4, and 5.
o A balance sheet on a monthly basis for year 1, a quarterly basis for year 2, and an annual basis for years 3, 4, and 5.
o A statement of cash flows on a monthly basis for year 1, a quarterly basis for year 2, and an annual basis for years 3, 4, and 5.
o Important Note: Use a spreadsheet program such as Excel to create the financial statements. Then, embed the statements by copying/pasting them into the final Word document.
o Financial Plan Assumptions: For all financial statements, include a list of key assumptions that drive your financial plan.
o Financial Analysis: Describe three financial metrics or ratios that you will use to analyze the health of your business.
o Financial Risks: Describe three potential financial risks for your sports business.
o Mitigate Risks: Describe possible ways to mitigate each of the risks listed above.
o Investor Return on Investment: Describe what you will offer potential investors in order to seek funding for your business. Consider types of ownership, stocks, dividends, interest payments, royalty fees, merchandise profit sharing, perks, etc.
o Exit Strategy: Describe your exit strategy assuming you are ready to sell the sports business in 10 years.
Format your homework according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.