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Plan Small Business Finances

In: Business and Management

Submitted By Ollio85
Words 1303
Pages 6
Plan Small Business Finances
Assessment 1: Simulated Workplace Scenario:
For the case of this task, I will be simulating that I have invested my life savings to start a small business, that of a bakery. Having had previous skills in this industry, and already locating an ideal position with minimal competition, I will now undertake a number of financial projections for the business, with the end goal being to obtain finance to help with the start-up costs. The document will cover aspects as follows:
Part A:
• All costs, fixed and variable, relating to the start-up and general running of the business.
• Prices of goods based off of costs and profit margin.
• Break even sales points.
• Pricing strategies related to market conditions.
• Projected profit statement.
Part B:
• Set profit targets/goals.
• Identify working capital requirements.
• Identify asset requirements and asset management strategies.
• Prepare cash flow projections.
• Identify capital investment requirements.
• Select budget targets and monitor financial performance.
Part C:
• Start-up and ongoing financial requirements
• Sources of potential finance.
• Cost of securing finance and strategies in order to obtain it.
Part A: Research: The general running of the business will be done by myself and 2 full time employees, from a single location, operating 6 days a week, Monday through Saturday. The initial set up costs for the location, including 2 months of upfront rent and a security deposit are:
• $8000 – Rent in advance
• $4000 – Security deposit
• $1000 – Fit out and mild renovations
• $2500 – Machinery and equipment
• Total - $15,500 Start-up costs.

The estimated costs from this point, on a month by month basis will be:
Variable Costs:
• Baking ingredients - $3000
• Utilities (Gas, Water and Electric) - $200
• Local Advertising - $500
• Waste…...

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