Verified Document

Financial Plan And Conclusion Essay

Related Topics:

Financial Plan and Conclusion 1. Financial Plan

A total of 39,500 will be committed in startup costs. The specific startup items have been described in table 1. Essentially, the flagship startup components are: lighting and studio/sound equipment, opening inventory, operating capital, fees and permits, and FFE. Lighting and studio/sound equipment are inclusive of 8 speakers, 2 amplifiers, 2 cd decks, 2 microphones, 2 switchers, 3 wash moving head lights, 1 LED DJ light, 5 DJ fog machines, 3 laser machines, 1 centerpiece effect DJ light, and other assorted lighting items. The opening inventory, on the other hand, is inclusive of all wine, beer, liquor, and other consumables (non-alcoholic drinks and beverages). The fees and permits component is inclusive of all fees we shall incur such as attorney, consultant, and accountant fees. Lastly, FFEs include, but they are not limited to, foldable chairs and tables, coolers, liquor racks, wine glasses, beer cups, etc.

In essence, while a total of $17,000 will be needed to settle salaries for 8 employees, space rent will take a maximum of $19,000 within the three month period. These figures, in addition to the initial capital outlay, bring the total amount of cash that will be needed...

Equity financing has been selected because it is relatively safer than debt financing. It is important to note that unlike equity financing, Longnecker, Petty, and Palich (2016) are of the opinion that debt financing carries with it some significant risk, In the words of the authors, “if the firm fails to earn profits, creditors still insist on being repaid, regardless of the firm’s actual performance” (Longnecker, Petty, and Palich, 2016, p. 322). This is unlike is the case with equity financing which is provided by shareholders and, thus, may not have to be repaid back if the business posts dismal returns. This being a startup, and with no track record, equity financing will be the most viable financing during the first three months of the business.
The business plan will be implemented within a span of one year. Continuous assessments will be done every three months to ensure that the medium-term plan remains on course. Towards this end, corrective action will be instituted if deviations are identified. This is especially important given that according to Coyle (2000), most businesses do not live to…

Cite this Document:
Copy Bibliography Citation

Related Documents

Financial Plan for Sikorsky Aircraft
Words: 919 Length: 3 Document Type: Term Paper

Sikorsky Aircraft -- Financial Plan for Looming Defense Cuts New Defense Markets Strategy Diversify Product Mix Strategy Many analysts believe that the U.S. budget has grown to unprecedented levels and budget issues have become a political priority. Talks of to how reign in the deficit to a level that represents more a sustainable trajectory than its current path plagues all the media channels and political commentary. No matter which side of the political

Business Plan Business Financial Plan for Sweet
Words: 1625 Length: 6 Document Type: Essay

Business Plan Business Financial Plan for Sweet Tooth Treats Baking has always been a major part of my family life, and for generations there has been infamous cookie recipes past down from one cook to the next. Every holiday season, my cookies are notorious for being the best any gift receivers have ever had. Finally, I believe it is time to make my baking hobby and actual money making enterprise. I know

Financial Management Analysis
Words: 1128 Length: 4 Document Type: Term Paper

Financial Analysis Assumption Use in the Financial Plan Additional Assumption in Sensitivity Analysis FIRST TWELVE MONTH CASHFLOW RESULT HOW MUCH SHOULD NORMAN PAY FOR THE EXCLUSIVE RIGHT? FORECASTED CASHFLOW FOR THE NEXT FIVE-Year CASH FLOW WITH A LOAN AT 8% PER ANNUM SENSITIVITY ANALYSIS THE SALES PRICE AND kg SALES GRADUALLY INCREASE AT 5% THE SALES PRICE PER kg INCREASE AT 10% BUT THE UNIT SALES REMAIN AT 5%. Investment Value Using At Discounted Rate 5% Best Financial Plan and Option Assumption

Financial Planning for Corporations Is
Words: 4271 Length: 15 Document Type: Term Paper

The first advantage is that it is easy. The math associated with the percentage of sales method is very simple to execute. The underlying premise of this method is that most of the items on the income statement and on the balance sheet will vary with sales. In addition to direct variable costs, such as cost of goods sold, indirect costs will also vary roughly in line with sales.

Financial Planning Charting the Course:
Words: 15430 Length: 56 Document Type: Term Paper

Goal setting works well for simple jobs -- clerks, typists, loggers, and technicians -- but not for complete jobs. Goal setting with jobs in which goals are not easily measured (e.g., teaching, nursing, engineering, accounting) has posed some problems. Goal setting encourages game playing. Setting low goals to look good later is one game played by subordinates who do not want to be caught short. Managers play the game of setting

Financial Planning for Retirement Early
Words: 2285 Length: 8 Document Type: Term Paper

Finally, one may sell their home to free assets for retirement finances. If one sells the home and moves to a less-expensive residence, one can invest any after-tax sales profits for future retirement needs. Another home option is the reverse mortgage. With a reverse mortgage, one receives regular, nontaxable payments from the lender instead of paying these payments. The principal and interest are repaid at a later date, either

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now