The Business Plan assignments for week 4 include a one year projected budget broken down monthly, an opening day balance sheet, a price sheet and a financial statement paragraph.
Draft the financial planning and pricing strategy components of your business plan. Your financial plan should focus on the essentials of your business’ projected budget – things like projected revenues (from your market analysis) and expenses such as property, equipment, employees, taxes, utilities, costs of goods, etc. – don’t waste your time bothering with things like depreciation. I want to see that you can get down to the fundamentals. Do a 1-year budget projection (e.g. total of all expenses and revenues ) broken down by month. This will enable you to closely monitor revenues and expenses as they occur, and make any necessary adjustments should the figures differ from your initial projections. Don’t forget about phone, lights, gas, mortgage payment or rent, internet, advertising, car payment if you use your car, salaries for yourself and employees. Office supplies, cleaning supplies, maintenance fees, and service contracts should be included. Insurances, like liability, workmen’s compensation, insurance on your building, car and perhaps yourself if you should get hurt. Think of every possible expense you may encounter for the month. Some months will have more expenses than others due to mortgage payments and the like. Please use Excel for your 1 year budget projection.
Include a paragraph about your finances. Your financial paragraph should indicate clearly how much cash is needed by the prospective investors or bankers, and the intended purpose for the money. Lastly, the investor needs to be told how and when he or she may expect to cash out of the investment. Here is a site that has some templates that may be helpful to you. https://www.score.org/template_gallery.html
Opening day balance sheet
A balance sheet shows the financial position of your company at a single moment in time; in this case, it will be as of opening day. Use your Startup Expenses spreadsheet to get the basic data for the balance sheet. Here are some accounting rules which will help you construct an accurate balance sheet: Assets are recorded at the lower of cost or current market value. Since your assets will be newly acquired, put them down at cost. If you have donated personal possessions to the business (e.g., a vehicle), enter them at market value.
Include a price list for all goods and services.