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Project 1

• Create a financial plan for a business you intend to start up orfor a hypothetical business and develop strategies to acquirefinance.

  The financial plan should consist of four parts:

  Part 1

  A brief description of the business, its nature, intendedoperational size and goals.

  Outline of the business vision.

  Part 2

  An analysis of the financial requirements of the businessincluding projected:

  • income and expenditure
  • costs of production or services
  • pricing strategies
  • contribution margins
  • profit projections

  Provide details of the basis for your projections.

  Part 3

  Details of:

  • profit targets which reflect desired returns
  • identification of your proposed asset requirements and assetmanagement strategies
  • cash flow projections which will allow the business to operateaccording to the business plan and legal requirements
  • identification of capital investment requirements for eachoperational period
  • suitable budget targets to allow the monitoring of financialperformance
  • break-even analysis
  • a projected balance sheet
  • working capital analysis
  • requirements for start-up finance or ongoing finance

  Part 4

  A finance acquisition strategy including:

  • identification of sources of potential finance
  • cost of securing finance
  • strategies to obtain finance

Give an example of one hypothetical business.