Part 1: Frank is going to pursue additional financing from the local bank. The bank will require
Question:
Part 1: Frank is going to pursue additional financing from the local bank. The bank will require some insight into how Frank's business will be successful and sustainable.
Prepare a short write, explaining to the bank why your (Frank's) business will be viable.
This brief write up is an exaggeration and can be scaled back or built out to demonstrate where you want to differentiate your submission. This was meant to show you that this can also be a fun exercise and you can get creative with your (Frank's) new business.
Prepare DRAFT estimated financial statements for the bank to consider. Use this template: Hot Dog Cart Financials.xlsx The financial statements are going to be basic and will build on your fundamental knowledge from the first three chapters of the book. You will provide a basic income statement showing your expected sales and expenses. Partial balance sheets that will list the types of assets you need.
Part 2: Assess your business: Fast forward a few months...Your friend asks you how your business is doing and you are unsure how exactly to answer. In fact, you are not necessarily sure how your business is going since you are so new to this! This part will help you organize your thoughts and come up with a more formalized process and financial reporting can help you demonstrate your success. For your cart, come up with a way to determine profit and financial position. Expand your Excel spreadsheet from part 1 by adding an additional tab. There is no specific format for this. Data should be reasonable based on your projections from Part 1 and include all expenses.