Overview
Assume you are either going to (a) start a new dog walking business. Then put together a financial requirement plan that estimates all the financial information related to starting the new venture and operating it for the first 12 months.
Instructions
This assessment has two parts. Templates are provided for each and attached to this Order.
Part 1
Financial Plan Worksheet Template [XLS] Download Financial Plan Worksheet Template [XLS]. (Enter all estimated financial information in this template.)
(1) The initial investment required to get your new venture up and running.
(2) The monthly operating expenses (overhead and direct expenses) for the first 12 months.
(3) The monthly revenues required to break even and achieve profitability for the first 12 months.
(4) Additional cash reserves needed to run the business in the first 12 months.
Part 2
Financial Report Summary Template [DOCX] Download Financial Report Summary Template [DOCX](5–6 single-spaced pages). This will be a summary of key financial information.
(1) Initial Investment: Summary.
(2) Monthly Operating Expenses: Summary.
(3) Monthly Revenues: Summary.
(4) Cash Reserves: Summary.
(5) Funding Sources Review.
Your completed financial plan will estimate:
The initial investment required to get your new venture up and running.
The monthly operating expenses (overhead and direct expenses) for the first 12 months.
The monthly revenues required to break-even and achieve profitability for the first 12 months.
Additional cash reserves needed to run the business in the first 12 months.
Identification and review of three different funding sources for starting and operating new venture during the first 12 months.
Estimate the following:
Initial Investment (start-up costs). These may include:
Business registration fees.
Required licenses and/or permits.
Legal and/or accounting fees.
Initial franchise fee (if choosing franchising option).
Initial franchise training costs (if choosing franchising option).
Build-out and contractor costs.
Furniture and required equipment costs.
Rent deposit.
Utilities setup fees.
Starting inventory.
Starting supplies.
Et cetera.
Monthly Operating Expenses (first 12 months). These should include:
Monthly rent or mortgage payment.
Insurance.
Salaries.
Utilities (electricity, gas, water, et cetera).
Phone and Internet access.
Website hosting.
Supplies.
Maintenance.
Marketing and advertising.
Direct costs of inventory sold (storage, postage, credit card fees, et cetera).
Franchise royalty fees (if choosing franchising option).
Franchise technology fees (if choosing franchising option).
Franchise advertising/marketing fees (if choosing franchising option).
State and federal payroll taxes.
Et cetera.
Monthly Revenues (first 12 months). These should include:
Product sales (number of transactions, revenue per transaction).
Service sales (number of transactions, revenue per transaction).
Break-even sales level required.
Profitability sales level required, net profit margin, ROI per month.
Et cetera.
Cash Reserves (first 12 months).
Estimate additional monthly cash reserves needed to cover monthly expenses or unforeseen circumstances; minimize the risk of the new venture running out of cash during the first year of operation.
Identify worst and best case scenarios.
Funding Sources (first 12 months).
Identify at least three (3) different source(s) for the funds besides your own savings, required to cover the initial investment to get your new venture up and running and any additional cash needed to fund operations during the first 12 months.
Specify what you will need to do (be specific) to be able to obtain those funds
Additional Details and Assumptions
Wages: Assume you will need at least 1 full-time employee and 1 part-time employee to help you operate your new venture. Make sure you research what fair and equitable wages will be for each employee based on their unique qualifications and job requirements. Use the going market rates for similar positions as a guide to insure accurate calculations.
Rent/Lease: Estimate the minimum space required to setup your new venture. Then research actual locations using commercial real estate sites in order to use accurate information on rental/lease costs.
Furniture/Equipment: Identify all the needed furniture and equipment to get the business up and running. Research actual costs using existing information and resources on the web or via the Capella Library.
Utilities/Supplies: Estimate costs as close to reality as possible. Research actual costs using existing information and resources on the web or via the Capella Library.
All Other Items: Estimate costs as close to reality as possible. Research actual costs using existing information and resources on the web or toehr resources.
