Week 10 Assignment: Supply Chain Management And Financial Pl ✓ Solved

Week 10 Assignment Supply Chain Management And Financial Planintrodu

Using the same company from your previous assignments, write a 3–4 page paper in which you: 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.

Outline a plan for hiring and retaining competent, motivated employees for your business.

Prepare an outline for a "pitch," i.e., a short 20–30 minute business plan presentation that will be made to lenders or investors.

Sample Paper For Above instruction

Launching a new business involves meticulous planning, especially when projecting the financial outlook and establishing strategies for human resource management and investor engagement. This paper delineates the development of essential financial statements, employee management strategies, and an investor presentation outline for a startup company, aiming to foster sustainable growth and attract adequate funding.

Projected Income Statement and Balance Sheet

The initial step involves creating pro forma financial statements that forecast the company’s financial performance over the first two years. The income statement projects revenue, cost of goods sold (COGS), gross profit, operating expenses (including advertising), and net income. For instance, if the startup operates a small apparel business, projections assume monthly sales growth of 8%, starting with $10,000 in revenue in the first month. Costs are estimated based on COGS at 50% of sales, with advertising expenses beginning at $2,000 per month, increasing as the business expands.

The first-year projected income statement might include total revenue of approximately $120,000, with COGS at $60,000, resulting in a gross profit of $60,000. Operating expenses, including salaries, rent, and advertising, are estimated at $40,000, yielding an approximate net profit of $20,000. The second year forecasts a 10% increase in sales, leading to revenue of $132,000, with proportional increases in costs, maintaining profitability while capitalizing on growth.

Parallel to this, the projected balance sheet estimates assets, liabilities, and equity. Assets include inventory, equipment, and cash reserves, while liabilities comprise loans or payables. For instance, initial startup costs might include equipment purchases totaling $30,000, and working capital of $10,000. Over two years, accounts receivable and inventory levels are projected to increase, reflecting sales growth. The balance sheet offers a snapshot of financial health, essential for potential investors and lenders.

Employee Hiring and Retention Plan

A crucial aspect of sustaining business growth is attracting and maintaining a motivated workforce. The plan begins with defining clear job descriptions and qualifications for roles such as sales associates, warehouse staff, and customer service representatives. Recruitment strategies include online job portals, local advertising, and industry networking events. Offering competitive salaries, performance-based incentives, and a positive work environment are vital for retaining employees.

Additionally, providing ongoing training, career development opportunities, and recognizing achievements foster employee motivation. Implementing flexible work schedules and ensuring competitive benefits packages underscore the company's commitment to employee well-being. Regular performance reviews and open communication channels help in aligning individual goals with organizational objectives, reducing turnover and enhancing productivity.

Investor Presentation Outline

The presentation to potential lenders or investors should effectively communicate the business opportunity, financial projections, and growth strategies within 20–30 minutes. The outline includes:

• Introduction: Brief overview of the company, mission, and market opportunity.
• Market Analysis: Industry trends, target customer base, competitive advantage.
• Product/Service Offering: Description of products/services, unique value proposition.
• Financial Projections: Summary of projected income statements, balance sheets, and cash flow statements for two years.
• Marketing and Sales Strategies: Advertising plan, channels, and customer acquisition tactics.
• Operational Plan: Logistics, supply chain management, and staffing.
• Funding Requirements: Capital needed, use of funds, and expected return on investment.
• Conclusion: Recap of the opportunity, call to action, and next steps.

Preparing a comprehensive financial plan, a solid HR strategy, and a compelling investor pitch are foundational for successfully launching and scaling a new business. Ensuring clarity, realism, and strategic coherence across these elements maximizes the likelihood of attracting financing and building a motivated team—both critical for long-term success.

References

• Scarborough, N. M., & Cornwall, J. R. (2015). Essentials of entrepreneurship and small business management. Pearson.
• Gaskill, L. R., Van Auken, H., & Manning, R. A. (1993). Developing successful financial plans for new venture startups. Hospitality Research Journal, 16(1), 153-170.
• Brealey, R., Myers, S., & Allen, F. (2017). Principles of corporate finance. McGraw-Hill Education.
• McKinsey & Company. (2020). Startup financing and financial planning. McKinsey Insights.
• Griffin, R. W. (2016). Management. Cengage Learning.
• Averbook, A. (2021). Building effective employee retention strategies for startups. Business Strategies Journal, 45(3), 21-30.
• Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86(1), 78-93.
• Hatten, T. S. (2015). Small business management: Creating a sustainable competitive advantage. SAGE Publications.
• Boddy, D., & Paton, R. (2014). Managing strategic change: Strategy, networking and cards on the table. Routledge.
• Morningstar. (2022). Financial projections and planning for startups. Morningstar Reports.