Question: Using a business that provides tutoring services (Math $200 per lesson - Science $200 per lesson - English $200 per session) and was given $100k

Using a business that provides tutoring services (Math $200 per lesson - Science $200 per lesson - English $200 per session) and was given $100k from an investor for 40% of the company, determine the following:

  • Develop a 3-year sales forecast for each product of your business.
  • Develop an operating budget for your business.
  • Develop cash flow, profit and loss, balance sheet, and break-even analysis forecast projections for your business.
  • Determine the return on investment for any angel investor.
  • Determine and plan the financial operations of your business.
  • Conduct an analysis to determine the risk to the virtual business. Devise a plan to mitigate identified risks.

The business has 5 employees, each paid as part-time employees (no insurance or benefits) at a rate of $50 per hour for 5 hours of work per week. The business is estimated to generate 15 hours of tutoring per week in year one, then double in year two and three.

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