This Assignment Consists Of Two (2) Sections: A Draft Of Your Business Plan And An Income Statement Containing Your Business Plan Financials (I.E. Week 7 Discussion “The Financials”). Note: You Must Submit Both Sections As Separate Files For The Completion Of This Assignment.
This assignment consists of two (2) sections: a draft of your business plan and an income statement containing your business plan financials (i.e. Week 7 Discussion “The Financials”). Note: You must submit both sections as separate files for the completion of this assignment.
You must intend to raise money for your startup company. You can start with money from friends and family but at some point you will need funds from outside investors, either angels or venture capitalists, depending on how much money you project you will need to raise. Another possible angle is to develop money through crowdfunding, assuming your product meets the demand of such audiences.
Before you can raise money, you must develop a business plan that convinces an investor that your company will succeed.
Section 1: Business Plan (MS Word or equivalent)
Read Chapters 18 and 19 of the course text: Successful Business Plan. Use the Plan Preparation Forms at the end of each chapter of Successful Business Plan as a rough guide.
Write an approximately fifteen to twenty (15-20) page draft of your business plan in which you:
Revise the components of the following previously submitted sections based on the feedback you have received.
Company Description (Assignment 1)
Industry Analysis and Trends (Assignment 1)
Strategic Position & Risk Assessment (Assignment 1)
Target Market (Assignment 2)
Competition (Assignment 2)
Marketing Plan & Sales Strategy (Assignment 2)
Create an Ethics & Social Responsibility Plan.
Note: The Ethics & Social Responsibility plan should account for approximately three to five (3-5) pages of the Business Plan Draft.
Describe the ways in which your company is committed to being a good corporate citizen.
Hints: Consider the following areas:
Following the laws of every jurisdiction in which your company operates
Fair and honest treatment of employees
Non-discrimination of employees and increasing diversity of your work force
Hints: If your company is designed as a social venture—in which you have a primary purpose of achieving a social or environmental goal—describe what that goal is and what aspects of your company are designed to reach that goal. Provide a rationale for why you have or why you have not chosen this to be a social venture.
Discuss how your company’s activities will affect the environment and identify the steps you will take to mitigate any negative impacts.
Hints: As a beverage company, consider such issues as your choice of packaging, disposal of bottles / packages by consumers, and your use of resources, such as water in areas where water may be scarce.
Determine any health issues / claims related to the product you are making, whether negative or positive. Suggest the strategy your company will use to mitigate any negative issues, and to ensure any positive claims are true.
Many beverage products have negative health impacts on certain segments of a population (e.g., children, pregnant mothers, etc.). Suggest your company’s plan, through advertising, distribution, and / or other methods, to target and reach only appropriate market segments.
Format your assignment according to these formatting requirements:
Cite the resources you have used to complete the exercise. Note: There is no minimum requirement for the number of resources used in the exercise.
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.
Section 2: Business Plan Financials (MS Excel worksheets template)
For year one, revise and submit the Income Statement, Cash Flow Projections, and Balance Sheet sections from the “Business Plan Financials” MS Excel template (see: Course Required Files in Week 1).
The specific course learning outcomes associated with this assignment are:
Describe strategic planning techniques used to formulate alternative strategies designed to achieve stated business goals.
Create a plan to implement a firm’s strategy and manage the change from current operations.
Analyze strategies for exerting the internal leadership needed to drive the implementation of strategic initiatives and improve operating excellence.
Use technology and information resources to research issues in strategic management.
Write clearly and concisely about strategic management using proper writing mechanics.
Grading for this assignment will be based on answer quality, logic/organization of the paper, and language and writing skills, using the following rubric.
The Financials of Drink Fresh Company
Drink Fresh Company is a non-alcoholic beverage company that intends to establish itself in this industry as a key player through its organic beverages which promise to address most of the health issues the American population is currently facing. Drink Fresh also anticipates taking advantage of the decreasing popularity of carbonated beverages to take up a portion of the market share for super-premium juices.
The Sources and Uses of Funds
Sources and Use of Funds shows where you will get financing for your business and how you will spend the money invested or lent. A potential investor or loan officer will want to see this. Drink Fresh company collected $20,000 from friends and relatives who would like to either have their seed money returned by the end of this calendar year at no interest or by the end of the second year of operation with 5% interest. I inherited 40,000 which I intended to invest in Drink Fresh. We were able to acquire a loan from a family friend for the sum of $ 1,190000. Drink Fresh will benefit from tax deductions from the Government based on the aspect that is a startup business.
According to arrangements, Drink Fresh plan assumption to commence business will be January 2017. Our employees are well equipped with the right training to serve our customers in the Florida community. The quality, customer service, and prize of Drink Fresh surpass that of our competitors. We carry one brand and different variety of taste per customer choice. All employees will be designated to do a task and cash handlers will not be allowed to record any journal except the designated accountant. Everything will be tracked and inventory daily, and all cash or receipts will be deposited in the bank daily.
Breakeven analysis is used to determine when your business will be able to cover all its expenses and begin to make a profit. It is important to identify your startup costs, which will help you determine your sales revenue needed to pay ongoing business expenses (Abrams 2014). To calculate your breakeven point, you will need to identify your fixed and variable costs. Fixed costs are expenses that do not vary with sales volume, such as rent and administrative salaries. These expenses must be paid regardless of sales, and are often referred to as overhead costs. Variable costs fluctuate directly with sales volume, such as purchasing inventory, shipping, and manufacturing a product. To determine your breakeven point, use the equation below: