Financial plan
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Week6Template.pptxSignature Assignment: Financial Plan
FIN571 – Corporate Finance
YOUR NAME
DATE
1
Table of Contents
Business Description
Reason and Amount of Funding Required
Choice 1: Source of Funding: Self-Funding
Choice 2: Source of Funding: Debt
Choice 3: Source of Funding: Equity
Overall Choice of Funding
Cost of Capital
Three-Year P&L Statements
Conclusion
References
2
Business Description
Who?
What?
When?
Where?
Why?
Provide a description of your business addressing the 5 “Ws”.
Who? Provide information about yourself, your business name and structure and your target customer market.
What? Provide information about your product or service and any types of goals.
When? Provide information on when you plan on starting your business, when you plan on achieving any goals and if you have an exit plan.
Where? Provide information on where your business will be located. Will you have an actual site or will it be an online business or both?
Why? Provide information as to what sets you apart from competitors and include a mission statement.
3
Reason and Amount of Funding Required
Reason
Amount
Breakdown of Funding
Provide a discussion as to the reason for the funding, the amount of the funding, along with a breakdown of how the funding will be utilized. In other words, how do you plan on spending those funds? Specifics are required.
4
Choice 1: Source of Funding: Self-Funding
Requirements
Risks
Discuss the requirements and the risks related to self-funding. Self-funding refers to savings, retirement withdrawals, etc. This is a general discussion laying out the choice.
5
Choice 2: Source of Funding: Debt
Requirements
Risks
Discuss the requirements and the risks related to debt funding. Debt refers to anything that must be paid back (ie loans, credit cards, etc). This is a general discussion laying out the choice.
6
Choice 3: Source of Funding: Equity
Requirements
Risks
Discuss the requirements and the risks related to equity funding. Equity refers to ownership interests. This involves angel investors, venture capital, friends, family, etc. This is funding from others and not from yourself. Funding from yourself should be discussed under slide 5. This is a general discussion laying out the choice.
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Overall Choice of Funding
Choice
Reasoning
Discuss your overall choice of funding. You may use a combination. This is specific to you and your business, so make sure you provide substantial reasoning and details. If you choose a combination, make sure you include specifics as to how much you need from each funding source.
8
Cost of Capital
Short-term
Long-term
Calculate and discuss your cost of capital as a percentage for both the short-term (within 1 year) and long-term (over 1 year). How much is this funding going to cost you? If self-funding, think in terms of lost savings interest or retirement gains. If debt, think in terms of loan or credit card percentages. If equity, think in terms of how much your investors will expect as a return on their initial investment.
9
3-Year P&L Projections
2020
Revenue
(Expenses)
Net Income
2021
2022
Revenue
(Expenses)
Net Income
Revenue
(Expenses)
Net Income
Provide estimated 3-Year P&L figures and provide a discussion as to any growth assumptions, etc. Expenses will require details for credit (ie rent, salaries, etc). In other words, break it down by category.
2020
Revenue
Expenses (need details)
Net Income
2021
Revenue
Expenses (need details)
Net Income
2022
Revenue
Expenses (need details)
Net Income
10
Conclusion
Summarize your presentation.
11
References
Brealey, R., Myers, S. C., Marcus, A. J. (2020). Fundamentals of corporate finance (10th ed). McGraw-Hill Education.
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