Financial Plan

Assignment Content

Prepare a minimum 1000 word paper which describes a financial plan for the company you select for your business plan. The company may be the one you have used for the week two and week four assignments or it can be another you have selected. This financial plan will be included in your final business plan in your capstone course.

Describe the business, including the type of business.

Create the business case.

Determine why funding is needed for the company.
Determine the sources of funding. Considerself-funding, borrowing, equity, venture capital, etc.
Evaluate the requirements of each funding source you determined appropriate.
Analyze the associated risks of 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. Research current estimated APRs for your selected sources of funding. Consider creating a table or chart to display this information.

Create a profit-and-loss statement for a 3-year period. Project revenue, stating realistic assumptions, such as growth per year, in your projections. This three year forecast should be prepared in Excel and copied to Word.doc. Place it in the appendix of your paper.

Read and use the concepts for forecasting in the Week 6 Online Lecture on Forecasting with Operating Leverage. This lecture will provide very useful guidance on how to do your three year projection.

Estimate Fixed and Variable costs, including capital, marketing, labor, and supply costs.

Cite references to support your assignment.

Format your citations according to APA guidelines.

Submit your assignment as a word.doc file. Please do not submit a pdf file.