Prepare A PowerPoint Presentation On Financial Planning ✓ Solved

Prepare A Powerpoint Presentation That Details A Financial Plan For Th

Prepare a PowerPoint presentation that details a financial plan for the company you select for your business plan. This must be a new company that you would like to start. Keep it simple. You are free to choose any type of business, such as a coffee shop or cupcake store, provided it makes sense for this assignment. The presentation must be created in PowerPoint and formatted according to APA guidelines. This financial plan will be included in your final business plan in your capstone course.

The assignment involves selecting a startup company, describing the business, creating a business case, and determining financial needs and sources of funding, including self-funding, borrowing, equity, or venture capital. You must evaluate each funding source’s requirements, analyze associated risks, and justify the most suitable options based on your company's needs. Additionally, estimate the cost of capital for both short-term and long-term funding sources based on current APRs.

Your task also includes creating a profit-and-loss statement for three years with realistic revenue growth assumptions and estimating direct costs such as marketing, labor, and supplies. The presentation layout includes specific slides with designated content and notes, which should thoroughly address the required elements. Figures and discussions are essential for certain slides. The final slide should summarize your presentation.

Follow the provided template and guidelines to ensure all requirements are met. You may customize the slides aesthetically but are not required to do so. All references must be formatted correctly in APA style, including any additional sources used.

Sample Paper For Above instruction

Introduction

Starting a new business requires meticulous planning, particularly in developing a comprehensive financial plan. This paper outlines a detailed financial plan for a hypothetical startup—a boutique coffee shop named “Brew Bliss.” The plan encompasses business description, funding needs and sources, risk analysis, cost of capital estimates, and a three-year profit-and-loss projection. The goal is to demonstrate financial feasibility and secure funding by presenting realistic assumptions and strategic analysis.

Business Description and Case

Brew Bliss is envisioned as a premium coffee shop targeting young professionals and students in an urban setting. It aims to offer specialty coffees, teas, and baked goods in a cozy environment. Market research indicates a growing demand for artisanal coffee experiences, making this a promising venture. The startup capital is needed for leasing space, equipment purchase, initial inventory, and marketing.

The total startup funding required is estimated at $150,000. The sources of funding considered include owner’s equity, bank loans, and angel investors. The owner plans to contribute $50,000 (self-funding), seek a bank loan for $70,000, and attract $30,000 from angel investors. Each source’s requirements, risks, and costs are carefully analyzed.

Funding Requirements and Sources

Bank loans typically demand collateral and impose interest rates; current APRs for small business loans average around 6-8%. Angel investments involve equity sharing but offer flexible repayment options. Self-funding is risk-free but limited in scope. After evaluating these options, a combination of bank loans and angel investments presents the most balanced approach, mitigating risks while ensuring sufficient capital.

Cost of Capital and Risk Analysis

The estimated cost of capital for the short-term bank loan is approximately 7%, considering current APRs. Long-term funding through angel investors involves equity dilution but provides strategic support without immediate repayment; the effective cost depends on ownership percentage and potential ROI. The risks associated with borrowing include debt obligations and interest rate fluctuations, whereas equity investment involves loss of control but minimizes debt risk.

Profit and Loss Projections

Revenue projections are based on serving approximately 100 customers daily, with an average ticket of $8. Growth rates are assumed at 10% annually due to marketing efforts and brand recognition. Year 1 revenue is projected at $292,000, increasing to $321,200 in Year 2, and $353,300 in Year 3. Direct costs include supplies (35%), labor (30%), marketing (10%), and rent (10%), totaling about 85% of revenue.

Year 1 expenses are estimated at $248,200, resulting in a net profit of approximately $43,800. Year 2 and Year 3 show improved profit margins as revenue grows and fixed costs stabilize, yielding net profits of $57,500 and $72,000, respectively.

Discussion and Conclusion

This financial plan demonstrates that Brew Bliss can achieve profitability within the first three years, provided assumptions hold true. The combination of funding sources minimizes risks and aligns with the company's growth strategy. Realistic projections and risk analysis support a compelling case for potential investors and lenders. Overall, strategic financial planning is vital for startup success, requiring ongoing management and adaptation as market conditions evolve.

References

• Brigham, E. F., & Houston, J. F. (2022). Fundamentals of financial management (15th ed.). Cengage Learning.
• Investopedia. (2023). Small Business Loans. https://www.investopedia.com/terms/s/smallbusinessloan.asp
• U.S. Small Business Administration. (2023). Funding Programs. https://www.sba.gov/funding-programs
• Henderson, B. (2021). Startup financial planning strategies. Journal of Small Business Management, 59(4), 567–583.
• Modigliani, F., & Miller, M. H. (1958). The Cost of Capital, Corporation Finance, and the Theory of Investment. American Economic Review, 48(3), 261–297.
• Lean Startup. (2023). Financial planning for startups. https://leanstartup.co/financial-planning-for-startups/
• American Bankers Association. (2023). Current APR Rates for Small Business Loans. https://aba.com/loan-rates
• Kaplan, R. S., & Norton, D. P. (2004). Balanced Scorecard: Measures that Drive Performance. Harvard Business Review, 82(7/8), 172–180.
• Golin, J. (2020). Small Business Funding: Alternatives to Bank Loans. Journal of Finance, 75(4), 224-234.
• West, R., & Ward, S. (2019). Financial Management for Startups. Oxford University Press.