Overview of Financial Statements and Forecasting

Part 1. Answer the following questions, within 100 words minimum

Chapter 1- Characteristics of A Successful Entrepreneur

1. Read Chapter 1 and List at least five characteristics of a successful entrepreneur...

2. Perform a SWOT analysis on how you stack up against these characteristics.  If you do not consider one or more of these characteristics as a strength how might you take steps to add to your strengths.

Advantages

3. What types of advantages create a business opportunity?

4. How might these types of advantages be obtained?

5. Name a small business, with which you are familiar, (Team Power Electric/ Electrical Contractor) that thrives due to a business advantage. What advantage does that company have over other businesses in the same industry?

Chapter 2- Purchase an Existing Business or start from scratch.

6. What are the advantages of purchasing an existing business opposed to opening a new venture?

7. If a business is purchased, what factors would influence the decision to grow the business versus operating the business as is?

8. Suppose you purchased a small business. What would you do to ensure your business is financially successful? What would you not do?

Chapter 3 – Valuation

9. The chapter provides an overview of various valuation criteria to be used in determining what value you might be willing to pay for an ongoing business. 

10. Based on your own dream small business, (Team Power Electric/ Electrical Contractor) which value measures do you think would be the most useful?

Chapter 5 Business Plan

11. List at least five common questions which are expected to be asked after a business plan has been presented to a group of potential investors? And what would be the appropriate way to answer them?

Viability

12. What makes a small business venture a viable investment? Suppose you are starting a small business venture of your choice. (Team Power Electric/ Electrical Contractor) How would you convince other potential financial stakeholders that your business venture is a viable investment?

Part 2: My Future Business Opportunity

Purpose of Assignment

This assignment builds on the ideas that you have for creating a small business. Planning what you can afford and what is needed to gain financial backing is critical to success, and this is an area that can hurt small business owners financially in both the short and long run.

In this assignment, you will assess a small business opportunity and conduct initial research. Your final product will be an engaging presentation.

Note: It is recommended that you save this graded presentation for use in MGT/465.

Assignment Steps

Create a 25-slide presentation about a potential business opportunity. (Team Power Electric/ Electrical Contractor)

Describe a small business that you would like to start or purchase. (Team Power Electric/ Electrical Contractor

Compare the advantages and disadvantages between starting a business from scratch and buying an existing business.

Include details such as the number of employees, the type of facilities and equipment needed, target customer demographics, and marketing channels.

Research three to four companies within your industry, and highlight important parts of their annual reports that can assist you in the development of your own business plan.

Describe how these benchmarked companies started financially and how they have grown by answering the following questions:

· How did the companies allocate their funding last year?

· What information did they use to distribute the funding?

· How did the companies perform against their financial plan?

· What financial roadblocks or challenges did the companies meet and how were they addressed?

Determine the components that you will need to include in the financial section of your business plan, and explain how this information will be used to allocate funding for your business.