Assignment:
For this Assessment you are required to complete the following tasks:
• Develop a financial plan which identities the financial requirements of a business, including:
o Financial objectives
o Finance required
o Any financial assumptions required
o Start-up costs summary
o Balance Sheet forecast
o Cash flow projections
o Break even analysis
o Projected profit statement
• Create a summary report outlining how to follow the financial plan and in particular covering the following elements:
o Outline of appropriate legal requirements
o Strategies to Implement and monitor financial performance
• List of potential finance sources
• Outline of costs of securing appropriate financial assistance
The Financial Plan can be based on either a Business idea of your own choice, your current workplace or one based on the scenario listed below. You can work either individually or in groups of between 2-3 students in order to complete this assessment project.
Please Note: To assist in completing this assessment project, Students should refer to The Finances section on Pages 20-25 of the Business Plan template. The link to this template is provided below:
https://www.business.gov.au/business-topics/templates-and-downloads/business-plan-template-and-guide/Pages/default.aspx
Click on Business Plan Template and Guide (The template is quite large and may take a little while to download).
SCENARIO:
• You have decided to start your own business selling fresh flowers, gift cards and specialty balloons in Footscray, an inner suburb of Melbourne.
• You intend to rent a small shop In the local shopping centre and have had discussions with the shopping centre manager.
• Your decision to open this business has been taken on the following basis
- Many of your friends have indicated they would support a florist in the shopping centre.
- You conducted a survey at the nearby railway station by asking passengers whether they would support a florist opening in the area.
- You have researched the location of other florists in the area and note that most of them have at least a 5km competition free radius.
• In order to run this business, you will need to hire additional staff as the business will operate 7 days per week.
Additional information regarding expenses for this business are listed on the following page:
|
EXPENSE
|
COST
|
TIME PERIOD
|
|
Rental of Premises
(payable 1 month in advance)
|
$800
|
Monthly
|
|
Bond for Premises rental
|
$2,500
|
One-off
|
|
Utilities incl. Gas, Electricity and Water
|
$55
|
Monthly
|
|
Service Connection Fee
|
$120
|
One-off
|
|
Shop Fittings incl. Shelving, Cash $2000 Register, benches, pots
|
$2,000
|
Upfront
|
|
Initial stock: Cards and Balloons
|
$250
|
Upfront
|
|
Insurance: Store contents mcl. fixtures & fittings
|
$270
|
Annual
|
|
Insurance: Business continuity
|
$150
|
Annual
|
|
Insurance: Accident Liability
|
$600
|
Annual
|
|
Bank Interest
|
$42
|
Monthly
|