Financial Problem
To complement your prior analysis, this interviews should focus on the Financials, with the interviewees being those with insights on the below questions. Your insights and plans in this competition chapter should also be informed by your primary research and secondary research. The Financials chapter of the business plan to be authored this week should address:
An explanation of your five-year proforma model. What are your key assumptions? Are there comparables or industry benchmarks? When will you be cash flow positive? What is the core cost of your business? What are your assumptions about market size and market penetration rate in a 24-month time frame? What if costs run higher by 20% or revenue comes in more slowly and/or 20% below projections? What could you do from an operating perspective to keep the business going? How much funding do you need to raise to run for 24 months under your assumptions? How much do you need if you have no revenue for 24 months? How big can this business get in 5 years? How big can it get ultimately? Are there similarly sized companies in your industry? For this Financials chapter, a 2-3 page single-spaced length is appropriate. Tables, graphics, and related visual tools to efficiently communicate key information is encouraged. Be sure to support your analysis and decisions with and references.
The response must include a reference list. Using one-inch margins, double-space, Times New Roman 12 pnt font and APA style of writing and citations.