Prepare a financial plan for the organization that you select for your business plan.
Describe the organization, including the type of business.
Create the business plan.
- Determine why funding is needed for the company.
- Determine the sources of funding. Consider self-funding, borrowing, equity, venture capital, etc.
- Evaluate the requirements of each funding source you determined appropriate.
- Analyze the associated risks of each funding source.
- Decide which sources are the best fit for your company based on the requirements of each. Justify your decision.
- Estimate the cost of capital for both short-term and long-term funding sources. Research current estimated APRs (Annual Percentage Rates) for your selected sources of funding. Consider creating a table or chart to display this information.
- Create a profit-and-loss statement for a 3-year period. Provide a revenue forecast, stating realistic assumptions, such as growth per year, in your projections. This should include estimated direct costs, including capital, marketing, labor, equipment, and inventory/supply costs.
Prepare a budget that includes starting balances, monthly costs, loan/investment payments, cash flow projections, and required revenue.
Spreadsheet — the above two items should be done via an MS Excel Spreadsheet (please show your work in the cell background when calculations are involved).
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