The Information and Accounting Component
How will you gather information about competitors, their products, and the prices they charge for their products and services?
Explain how you will develop a management information system to collect, store, update, process data, and present information.
Will your business have an e-business component? If so, explain how you will sell your products and services online.
Who will create and maintain the accounting system that you will use to record routine business transactions for your business?
Will you hire an accountant to prepare financial statements for your firm?
The Financial Plan Component
What is the actual amount of money you need to open your business (start-up budget) and the amount needed to keep it open (operating budget)? Prepare a realistic budget.
How much money do you have, and how much money will you need to start your business and stay in business?
Prepare a projected income statement by month for the first year of operation and by quarter for the second and third years.
Prepare projected balance sheets for each of the first three years of operation.
Prepare a breakeven analysis. How many units of your product or service will have to be sold to cover your costs?
Reinforce your final projections by comparing them with industry averages for your chosen industry.
The Exit Strategy Component
How do you intend to get yourself (and your money) out of the business?
Will your children take over the business, or do you intend to sell later?
Do you intend to grow the business to the point of an IPO?
How will investors get their money back?
The Critical Risks and Assumptions Component
What will you do if your market does not develop as quickly as you predicted? What if your market develops too quickly?
What will you do if your competitors underprice or make your product obsolete?
What will you do if there is an unfavorable industry-wide trend?
What will happen if trained workers are not available as predicted?
What will you do if there is an erratic supply of products or raw materials?
How will you gather information about competitors, their products, and the prices they charge for their products and services?
Explain how you will develop a management information system to collect, store, update, process data, and present information.
Will your business have an e-business component? If so, explain how you will sell your products and services online.
Who will create and maintain the accounting system that you will use to record routine business transactions for your business?
Will you hire an accountant to prepare financial statements for your firm?
The Financial Plan Component
What is the actual amount of money you need to open your business (start-up budget) and the amount needed to keep it open (operating budget)? Prepare a realistic budget.
How much money do you have, and how much money will you need to start your business and stay in business?
Prepare a projected income statement by month for the first year of operation and by quarter for the second and third years.
Prepare projected balance sheets for each of the first three years of operation.
Prepare a breakeven analysis. How many units of your product or service will have to be sold to cover your costs?
Reinforce your final projections by comparing them with industry averages for your chosen industry.
The Exit Strategy Component
How do you intend to get yourself (and your money) out of the business?
Will your children take over the business, or do you intend to sell later?
Do you intend to grow the business to the point of an IPO?
How will investors get their money back?
The Critical Risks and Assumptions Component
What will you do if your market does not develop as quickly as you predicted? What if your market develops too quickly?
What will you do if your competitors underprice or make your product obsolete?
What will you do if there is an unfavorable industry-wide trend?
What will happen if trained workers are not available as predicted?
What will you do if there is an erratic supply of products or raw materials?
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