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Question: Use of Funds (5 P-POINTS) - this is the subheading after Start-Up Funding which will be put in its place after completed. My contribution below is giving you headway.

Money raised will be utilized immediately towards the traditional fixed and variable costs associated with any new business. Including in these expenses are: incorporation of the firm, insurance, office space and furniture, utilities and staffing. Costs will be elaborated. To be continued.

Income Statement (10 P-POINTS)

Graph* 5-Year Financials at-a-Glance

Break-Even Analysis (5 P-POINTS)

Graph* 2-Year Break-Even Chart

Five Years Valuation (5 P-POINTS)

Exit Strategy (5 P-POINTS)

Use of funds: Describe how you plan to use the startup requirements in detail providing a start-up budget which includes all initial capital expenditures, build-out and start-up expenses. The details must be realistic and well researched. Data that does not make sense will cost you points. In other words, if you are starting a restaurant and your remodeling startup costs are $5,000, you would be penalized, since that amount is unrealistic.

Income statement : Your income statement is a narrative explanation of your projected pro-formas. Include the detailed statements in your Appendix, and then list the annual estimates in a table format in your plan. Explain how your income and expenses will contribute to your P&L and your net income. Your growth factor should be shown and explained (justified) as well. Document all assumptions, and provide source information for all assertions.

Break-even analysis: Include a graphical representation that shows when your company will start making a profit. Valuation after 5 years 5 Calculated at the end of year 5 using one of the models described in the lecture or some other generally accepted valuation method, explained and provided in the plan. Exit strategy 5 Address your early termination plans as well as your vision for the business at the end of year 5.

The exit strategy takes into account business Return on Investment (ROI.) It will also look at the rate of return you are offering your investors, if you have them. Private equity, or venture capital projects, should include both in the exit strategy. Lender-based projects do not require a rate of return but should include the ROI. You need to review the lecture in the Financial Plan for various methods of exiting the business.

Information related to above question is enclosed below:

Attachment:- FinancialPlan-MHCSBusinessPlanDebbie.rar

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92773787

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