This week, you will build your draft financial plan. You will need to do it for the first two years.

For this week, complete the following:

Complete a list of key financial assumptions that drive your revenue projections, cost of goods sold, and operating expenses. Identify $2-3$ companies to benchmark $($financial information can be found on their annual reports which are public$).$

An opening day balance sheet $($your balance sheet MUST BALANCE$)$

A monthly cash flow statement for years $1$ and $2$

An income statemeusent for years $1$ and $2/$ Use Walmart and Target as the companies to benchmark$/$ use this template: Company name:

Assumptions for Financial Projections

Description Value Comment

Revenue Assumptions

Unit Sales Price per unit sold

Overall Market Size potential customers

Target Market Size potential customers in niche

Year One Sales Projections units sold

Year Two Sales Projections units sold

Year Three Sales Projections units sold

Variable Cost Assumptions

Materials per unit sold

Labor per unit sold

Overhead per unit sold

Sales Commission $(\%)$ of Unit Sale Price

Sales Commission $($$$)$ per unit sold

Fixed Cost Assumptions

Plant Operations per year

Telecommunications per year; includes phones and internet

Legal Services per year

Accounting Services per year

Insurance per year

Personnel Assumptions

Employees $($#$)$

Salary per employee $($$$)$ per employee

Employee Salaries $($$$)$ $$0$

Salespeople $($#$)$

Base Salary per Salesperson $($$$)$ per salesperson

Sales Base Salaries $($$$)$ $$0$

Personnel Overead Rate $(\%)15\%$ of total salaries

Personnel Overhead $($$$)$ $$0$

Start$-$Up Cost Assumptions

Plant Site Development one$-$time cost to build or buy

Equipment Costs one$-$time cost to purchase equipment

Working Capital

Financing Assumptions

Capital from Investors from sale of $25\%$ equity in company

Capital from Commercial Loan

Loan Interest Rate $7\%$ annual percentage rate $($APR$)$

Loan Term $20$ years; lifetime of loan

Periods per Year $12$ payment periods per year

Total Periods $240$ periods for life of loan

Monthly Loan Servicing Cost $$0\mathrm{.}00$

Annual Loan Servicing Cost $$0\mathrm{.}00$

References: Benchmark Companies: