Prepare a financial plan for the organization that you select for your business plan. This financial plan will be included in your final business plan in your capstone course.
This is theoretical company of your choice, not an actual company. Describe the organization, including the type of business. Create the business case.
Determine why funding is needed for the company.
Determine the sources of funding.
Consider self-funding, borrowing, loans, equity, venture capital, etc.
Evaluate the requirements of each of the funding sources that you plan to use. Analyze the risks that are associated with each funding source. Decide which sources are the best fit for your company based on the requirements of each. Justify your decision. Estimate the cost of capital for both short-term and long-term funding sources.
Estimate direct costs, including rent, marketing, labor, equipment, and inventory/supply costs.
Prepare a one year budget that includes starting balances, monthly costs, loan/investment payments, cash flow projections, and required revenue.
Create a profit-and-loss statement for a 3-year period.
Provide a revenue forecast, stating realistic assumptions, such as growth per year, in your projections.