Business Plan Summary

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MGT465_r2_Financials_HR_planning_template_week4.pdf

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Financials and Human Resource Planning MGT/465 Version 2

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Financials and Human Resources Planning

Section One: Start-up Financials

Start-up Expenses- Complete the SCORE.org template and attach as an object here:

Startup Expenses

In The Mix

Sources of Capital $20,000

Owners' Investment (name and percent ownership) Tim Johnson 5% 5% Peter Wilson 5% 5% Jimmy Williams 10% 10%

Other investor -

Total Investment $ 0

Bank Loans

USAA $ 2,500

Navy Federal 5,000

Bank Of America 4,000

Chase 5,000

Total Bank Loans $ 16,500

Other Loans

One Main Financial $ 3,000

Accion 5,000

Total Other Loans $ 8,000

Financials and Human Resource Planning MGT/465 Version 2

Startup Expenses

Buildings/Real Estate

Purchase $ 150,000

Construction 50,000

Remodeling 250,00

Other -

Total Buildings/Real Estate $ 200,000

Leasehold Improvements

DryWall $ 5,000

Carpentry 1,500

Restroom Accessories 2,500

Lighting Fixtures 500

Total Leasehold Improvements $ 9,500

Capital Equipment List

Furniture $ 30,000

Equipment 10,000

Fixtures 5,000

Machinery 10,000

Other -

Total Capital Equipment $ 55,000

Location and Admin Expenses

Rent & Related Costs $ 1,250

Utility deposits 200

Financials and Human Resource Planning MGT/465 Version 2

Legal and accounting fees 5,000

Prepaid insurance 7,500

Pre-opening salaries 20,000

Other -

Total Location and Admin Expenses $ 33,950

Opening Inventory

Choclate $ 300

Flour 100

Sugar 50

Utensils 100

Decorations 250

Total Inventory $ 800

Advertising and Promotional Expenses

Advertising $ 10,000

Signage 3,500

Printing 1,000

Travel/entertainment 5,000

Other/additional categories -

Total Advertising/Promotional Expenses

$ 19,500

Other Expenses

Other expense 1 $ -

Other expense 2 -

Total Other Expenses $ -

Financials and Human Resource Planning MGT/465 Version 2

Reserve for Contingencies $ -

Working Capital $ -

Summary Statement

Sources of Capital

Owners' and other investments $ 0

Bank loans 16,500

Other loans 8,000

Total Source of Funds $ 24,500

Startup Expenses

Buildings/real estate $ 200,000

Leasehold improvements 9,500

Capital equipment 55,000

Location/administration expenses 33,950

Opening inventory 800

Advertising/promotional expenses 19,500

Other expenses -

Contingency fund -

Working capital -

Total Startup Expenses $ 318,750

Security and Collateral for Loan Proposal

Collateral for Loans Value Description Real estate $

200,000

Financials and Human Resource Planning MGT/465 Version 2

Other collateral -

Owners Your name here Kenneth Williams Van Boubeka

Loan Guarantors (other than owners) Accion One Main Financial Banks

Pricing Strategy- Document the team’s pricing strategy. Include competitive data and factors used to develop a strategy and model. Attach supporting documentation as needed.

Premium Pricing

 This refers to costing a product at a high price due to its high quality.  This strategy is used for luxury custom and/or wedding cakes that are usually packaged

really well. Or other high quality and artisan baked products.  The target market is usually consumers looking for good quality, who aren’t worried about

budget.

“If you’re losing unprofitable customers, it’s sad, but you’re in business to stay in business,” says Dennis Stanton, owner of Swedish Bakery, Chicago, IL. “Our head counts have declined significantly over the past 10 years, but our sales per customer have continuously increased.”Nobody likes to lose customers, but unprofitable customers are simply not good for business. With premium priced products, you’ll often generate higher profits with fewer customers, according to How to accurately price bakery products | Bakemag.com | September 03, 2015 08:39

Financials and Human Resource Planning MGT/465 Version 2

Financial Statements- Summarize the purpose of Financial Statements and why it is important for small business owners to understand the key components of:

 Balance Sheet – “The purpose of a balance sheet is to give interested parties an idea of the company's financial position, in addition to displaying what the company owns and owes. It is a snapshot at a single point in time of the company's accounts—covering its assets, liabilities and shareholders' equity according to Investopedia”, Reading the Balance Sheet (investopedia.com)

 Income Statement - The income statement is an important part of a company’s performance reports that must be submitted to the Securities and Exchange Commission (SEC). Essentially, it gives an account of how the net revenue realized by the company gets transformed into net earnings (profit or loss) according to Investopedia. Income Statement Definition (investopedia.com)

 Cash Flow Statement – “A cash flow statement is a valuable measure of strength, profitability, and the long-term future outlook for a company. The CFS can help determine whether a company has enough liquidity or cash to pay its expenses. A company can use a cash flow statement to predict future cash flow, which helps with matters of budgeting”, according to Investopedia Understanding the Cash Flow Statement (investopedia.com)

 Break-even Analysis –“ break-even analysis which, very simply, is the amount of revenues you need to generate to cover your direct and indirect expenses”, according to Montrel Financial. The Importance of Breakeven Analysis for Business Owners (montrealfinancial.ca)

Financials and Human Resource Planning MGT/465 Version 2

Part Two: Human Resource Planning for a Start-up Business

1. Describe below how your team will determine human resource requirements during the first 12 months of operation. Provide a Human Resource Forecast that includes:

 Number of hourly employees- full time, part time – 4 Full Time Employees and 5 Part Time

 Use of student employees- seasonal, after school – None AT the moment  Management structure – 

Skilled labor requirements- certifications, licenses, etc. – Each member has there Certified Journey Baker (CJB), Certified Journey Decorator (CJD), Certified Baker (CB), and ServSafe Certifications

Financials and Human Resource Planning MGT/465 Version 2

  Volunteers to be used – None At the Moment  Family member employment – N/A

Not At All Satisfied

Slightly Satisfied

Neutral Very Satisfied

Extremely Satisfied

# of Hourly Employees (Full Time/Part Time)

Use of Students (N/A)

No need

Management Structure

Volunteers x Family Employment (None)

Conduct Training x

Key: 1 – Not at All Satisfied 2 – Slightly Satisfied 3– Neutral 4– Very Satisfied 5- Extremely Satisfied

2. Include any charts your team wants to include to illustrate the Human Resource Planning Process.

Financials and Human Resource Planning MGT/465 Version 2

Part Three: Reflection and Observations

Answer the following questions:

1) What role did each team member provide to obtain the business plan information?

Each member did their share of the work.

2) What roadblocks did the team face when obtaining required information?

There were no road blocks, just the matter of choosing the information provided.

3) What lessons were learned during the week’s learning team assignment which can be applied during the specific phase of business start-up?

The behind the scenes start up HR work. Getting the little things in order.

4) What is the team’s overall observations of this week’s assignment relative to the type of information needed to develop a comprehensive business plan?

To be successful as small business owners, you would want somebody running HR department. Developing a business plan will likely increase chances to not have your business fail.

5) How does this week’s Learning Team assignment support the Learning Objectives?

HR is a very important assest for a business. HR keeps a business organize, helps grow the business, handles issues. HR also handle responsibilities like training, hiring, payroll, benefits, and onboarding

Financials and Human Resource Planning MGT/465 Version 2

References

Sims, B. (2015). Bake. How accurately price bakery products. Retrieved From How to accurately price bakery products | Bakemag.com | September 03, 2015 08:39.

Estevez, E. (2020). Investopedia. Reading The Balance Sheet. Retreieved From Reading the Balance Sheet (investopedia.com)

Chen, J. (2020). Investopedia. Income Statement. Retrieved From Income Statement Definition (investopedia.com).

Murphy, C. (2021). Understanding the cashflow statement, Retrieved From Understanding the Cash Flow Statement (investopedia.com)

Montreal Financial. The importance of breakeven analysis for business owners, Retrieved From The Importance of Breakeven Analysis for Business Owners (montrealfinancial.ca).

Section One: Start-up Financials
Part Two: Human Resource Planning for a Start-up Business
Skilled labor requirements- certifications, licenses, etc. – Each member has there Certified Journey Baker (CJB), Certified Journey Decorator (CJD), Certified Baker (CB), and ServSafe Certifications
5- Extremely Satisfied

Part Three: Reflection and Observations