Using the same business you started in other paper, you will continue to build a financial plan for the business. Write a four to five (4-5) page paper in which you:
- Prepare a pro forma balance sheet for the first twelve (12) months of your business. Include the assumptions on which it is based. Justify your balance sheet.
- Prepare a pro forma income statement for the first twelve (12) months of your business. Include the assumptions on which it is based. Justify your income statement.
- Prepare a pro forma cash budget for the first twelve (12) months of your business. Include the assumptions that you have made when creating the budget. Justify your budget.
- Scrutinize the costs (both tangible and intangible costs) of obtaining financial capital for your business start-up to determine whether the costs justify implementation of the funding source.
Your business is five (5) years old and running profitably. You are now ready to look outward five (5) more years to take the business to the next level.
- Determine the specific details that would make the equity approach to valuing your business worthwhile. Provide a rationale with your response.3 | Page
Crystal Messer FIN 317 Table of Contents 1. Brief 2 i. Location 2 ii. Type of customers 2 iii. Competitors 2 2. Why this type of business interests you? 2 3. Why do you believe it would be successful 3 Cafe Grill Brief This business is from the food and beverage industry. Café grill would be a fast-food restaurant chain like Mc Donald, Burger King, KFC, and other fast-food restaurants. And the type of business I am planning to start would be a partnership as it doesn’t require paying income taxes as each partner would have to pay tax based on personal income and it would have increased pool of knowledge, capital, and expertise. Location The location of the business Warner Robins, Georgia, USA. Since this would be the best location as would be the best fit because people would love to try something new when coming to Mc Donald’s and most of the restaurants and because the area of your food business will affect about as much as the menu. If your restaurant is at an inappropriate spot, you won’t attract customers you will require so as to remain in business. Type of customers The type of customers of café grill would be fast food lovers such as youngsters(these are the people who would love to spend most of their pocket money with friends ) , children( because they don’t prefer homemade food every time) and office going people( who don’t have time to make food would prefer to drive-thru). Competitors The main competitors of café grill would be Mc Donald’s, KFC, Burger King, Subway, Dunkin Donuts, Pizza hut, Wendy’s and Taco Bell as they all are direct competitors of café grill as because they have an almost similar target market and also selling nearly similar food. Why this type of business interests you? As an entrepreneur, I love to do creative and innovative things and I have an interest in cooking and trying new recipes so it is the passion and creativity that lures me to open a restaurant. Not only this but I am also a sociable person so restaurant business falls into the hospitability category business so I love to meet new people (greeting customers and solving their problems). In Addition to this, I possess strong stamina for working long hours and solving uncertain problems. Why do you believe it would be successful? The reason behind taking restaurant business is that eatery business is one of the most beneficial business in view of its developing demand as nowadays people want to dine out more in comparison to cooking meal at home and as per market research more than twice a week people like to dine out and try to taste new and tasty food and spend some quality time with their family and peers as because routine is hectic there so they find this solution as more appropriate as eating food while having good time with family.
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