Homework: Financial Plan
1. Prepare a financial plan for the company you select for your business plan. This financial plan will be included in your final business plan in your capstone course.
2. Describe the business, including the type of business.
3. Create a business case.
4. Determine why funding is needed for the company.
a. Determine the sources of funding. Consider self-funding, borrowing, equity, venture capital, etc.
b. Evaluate the requirements of each funding source you determined appropriate.
c. Analyze the associated risks of each funding source.
d. Decide which sources are the best fit for your company based on the requirements of each.
e. Justify your decision.
f. Estimate the cost of capital for both short-term and long-term funding sources.
g. Research current estimated APRs for your selected sources of funding.
h. Consider creating a table or chart to display this information.
5. Create a profit-and-loss statement for a 3-year period. Project revenue, stating realistic assumptions, such as growth per year, in your projections.
6. Estimate direct costs, including capital, marketing, labor, and supply costs.
Format your homework according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.