Supply Chain Management And Financial Plan

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Assignment 4: Supply Chain Management and Financial Plan. With this assignment, you are creating two important elements of a financial plan: an Income Statement and Balance Sheet. You also are preparing an outline of a presentation of your business plan to potential investors or lenders. Using the business you created from Assignments 2 and 3, write a three to four (3–4) page paper in which you:

  1. Prepare a simple pro forma (projected) income statement and balance sheet for the first two years of operation, using income projections and incorporating an advertising plan.
  2. Outline a plan for hiring and retaining competent, motivated employees for your business.
  3. Prepare an outline for a “pitch,” i.e., a short 20–30 minute business plan presentation that will be made to lenders or investors.
  4. Include at least two (2) references outside the textbook. Your assignment must follow these formatting requirements:
    • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.

Paper For Above instruction

Launching a new business venture necessitates meticulous planning, particularly in financial and operational areas. A fundamental component of this preparation involves developing a comprehensive financial plan that includes projected income statements and balance sheets, along with strategic planning for human resources and investor presentations. This paper provides a detailed outline of these key elements based on the business concept developed in previous assignments.

Projected Income Statement and Balance Sheet

Developing pro forma financial statements is crucial for understanding the financial viability of the business. For the first two years, the projected income statement should encompass revenue forecasts derived from market analysis, pricing strategies, and sales volume estimations. Expenses should include fixed costs such as rent, utilities, salaries, and variable costs such as raw materials and marketing expenditures. Incorporating an advertising plan is essential to project marketing expenses and expected customer acquisition rates, which directly influence revenue projections.

The balance sheet forecasts should reflect initial investments, assets, liabilities, and equity for the start-up phase and subsequent growth in Year 2. Key assets include inventory, equipment, and cash reserves, while liabilities may comprise loans or credit lines. The balance sheet must evolve realistically, indicating the business’s capacity for growth and debt management over the two-year period.

Employee Hiring and Retention Strategy

Attracting and maintaining a motivated, competent workforce is vital for operational success. The strategy should entail identifying critical roles and competency requirements, followed by targeted recruitment efforts through online platforms, industry networks, and local job fairs. Competitive compensation packages, opportunities for professional development, and a positive work environment are essential to retain talent. Implementing performance incentives and recognition programs can further enhance motivation and reduce turnover, ensuring workforce stability and productivity.

Business Plan Pitch Outline

The presentation to potential investors or lenders should be concise yet comprehensive, approximately 20 to 30 minutes long. The outline should include:

  • An engaging introduction that highlights the business concept and market opportunity.
  • An overview of the products or services offered, emphasizing unique selling points.
  • Market analysis data demonstrating demand and target audience.
  • Details of marketing and sales strategies, including advertising plans and distribution channels.
  • Financial projections and funding requirements, explaining how investment will be utilized and expected returns.
  • Operational plan, including staffing, supplier relationships, and location considerations.
  • A compelling conclusion that reinforces the investment opportunity and invites questions.

This outline ensures a structured delivery, effectively communicating the business’s value and potential for profitability.

References

  • Scarborough, N. M., & Cornwall, J. R. (2015). Essentials of Entrepreneurship and Small Business Management (9th ed.). Pearson.
  • Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2017). Entrepreneurship (10th ed.). McGraw-Hill Education.
  • Kuratko, D. F. (2021). Entrepreneurship: Theory, Process, and Practice. Cengage Learning.
  • Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation. Wiley.
  • Yoshino, K., & Tashiro, T. (2018). The importance of financial planning in new venture success. Journal of Business Venturing, 33(2), 278-292.
  • Becker-Blease, J. (2018). Financial forecasting and planning for startups. Harvard Business Review.
  • Armstrong, G., & Kotler, P. (2017). Marketing: An Introduction (13th ed.). Pearson.
  • Rothaermel, F. T. (2020). Strategic Management. McGraw-Hill Education.
  • Gartner, W. B. (1988). “Who is an Entrepreneur?” is the Wrong Question. Journal of Business Venturing, 3(3), 253-261.
  • Barney, J. B., & Hesterly, W. S. (2019). Strategic Management and Competitive Advantage. Pearson.

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