Week 3 Assignment

Key Parameter

Explanation

Business Size

You are a startup not yet in operation. You have been operating from your home, but sales are small. You will develop the business plan with the intention to raise funds and increase sales. Your sales must be over $1 million by the end of the second year.

Product or Service

Be specific about the product or service on which you are focusing and how you will differentiate yourself from similar products or services in the marketplace.

Market Size

You will start marketing and selling the product or service in your geographical area within a 100-mile radius from your home.

Existing Funds

You already have some funds (small loan, savings, et cetera).

Intention to Raise Money

To grow the business further, you will need funds from outside investors, either angels, venture capitalists, a group of individual investors on Kickstarter.

Facility

You will rent or purchase.

Employees

You will have employees, and you will develop your own organizational hierarchy.

Annual CEO Salary

As CEO you have the option not to draw a salary in the first year of business.

Item

Worksheet Within the Business Plan Financials Excel Template

EQUIPMENT PURCHASES AT THE START OF THE BUSINESS AND AS THE BUSINESS GROWS

Examples:

· Production equipment

· Vehicles for distribution

· Computers

· Software

· Printer

Capital Expenditures Worksheet

PERSONNEL

Current Personnel

CEO (you)

Considerations:

· Your goal is to reach sales of over $1 million by the end of the second year. You will need to hire personnel in all areas of the business to meet this goal.

· Consider increasing the number of employees in operations in the second year as sales increase.

Staff Budget Worksheet

BUSINESS EXPENSES

Marketing Expenses

Professional Services

· Consultants

· Attorneys

· Accountants

· Industry specialists

Inventory Purchases (as needed)

Marketing Budget Worksheet

Professional Services Worksheet

Inventory Worksheet

Item

Worksheet Within the Business Plan Financials Excel Template

Additional Expenses

· Telephone/fax

· Business insurance

· Office supplies

· Mailings and postage

· Building maintenance

· Utilities, including

· Water/sewer

· Gas

· Electricity

· Trash removal

Income Statement Worksheet

FINANCIAL INFORMATION

Available Funds

Balance in the bank from loans and savings

Future Funds

You will need to raise funds from investors. You will determine this based on how much you plan to grow the business.

Reminder:

· You will need to pay taxes.

· You will determine sales projections.

Capital Investments Worksheet

Cash Flow Statement Worksheet

Sales Projections Worksheet

Worksheet

Data Entry

Worksheet #1: Set Up and Assumptions

Line 9—Enter the month the academic quarter starts.

Line 12—Enter the year the academic quarter starts.

Line 15—Enter 2; you choose the number of product lines you will have up to 10 lines.

Line 21—Standard default is 30 days, you may adjust this for your business.

Line 43—Enter the balance in your bank account as you open your business. Remember you were selling from home.

Worksheet #2: Sales Projections

Speculate how much your company will grow and how much you will sell.

Reflect this information in the Operations Section of Your Business Plan (Week 5 Discussion and Week 8 Assignment).

You will need to reach sales of over $1 million by the end of the second year.

Worksheet #3: Inventory (adjust as needed)

Enter the cost of ingredients, packaging, bags, et cetera.

Repeat these lines for each product line.

Worksheet #4: Capital Expenditures (applies to purchased NOT leased equipment)

Insert the cost of your facility, equipment, vehicles, computers, et cetera, you decide to purchase.

Worksheet #5: Staffing Budget

Account for every paid employee using the appropriate lines for the six categories of employees

1. Management

2. Administrative/Support

3. Sales/Marketing

4. Operations/Production

5. Other

6. Part-Time/Hourly

Indicate when their employment will start according to the Operations and Management and Organization sections of your business plan.

Worksheet #6: Marketing Budget

Enter the cost for the marketing vehicles you plan to use (Week 4 Discussion and Weeks 5 and 8 Assignments).

Worksheet #7: Professional Services

Enter payments to accountants, consultants, attorneys, industry specialists as needed.

Worksheet #8 Capital Investments Worksheet:

Enter equity capital investments, loans, et cetera.

Enter projections of other funds you intend to raise.

Worksheet #9: Income Statement

Enter the cost of your expenses; see Business Expenses in the table that appears under the Specific Business Details section of these guidelines.

Worksheet #10: Cash Flow Statement

Pay off taxes.

Worksheet 11: Balance Sheet

This will automatically populate from the other completed worksheets.