Question 2 Marks 50

The business that you started in question 1 above has taken off, and the demand for some of your products is growing beyond your ability to source them. You are therefore investigating the possibility of starting to manufacture some of the products under license from the original manufacturers. You do not have more capital to put into the business so you will be approaching potential investors for funding of the expansion.

a) Prepare a business proposal which you will be presenting to the potential investors to attract funding from them. The proposal must include a budget. A monthly budget for 12 months plus a further 2 years. (40)

b)b) Include a discussion on how you would assess the break-even point for the business. (10)

Clearly indicate the assumptions that you are using and how and why you arrived at these particular assumptions.