Create Financial Plan and Budget for New Venture

Create Financial Plan and Budget for New Venture
Overview
Assume you are either going to (a) start a new venture on your own or (b) buy a franchise in a new location that will require a complete build-out. Indicate which option you are choosing in the introduction to your assignment.

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 assignment has two parts. Templates are provided for each.

Part 1
Use the Financial Plan Worksheet Template [XLS] linked in the Resources. (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
Use the Financial Report Summary Template [DOCX] linked in the Resources. (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.