Assignment: 3rd Step to the Final Project Financial Plan A. Financial Projections How will you fund the business? What are your desired debt and equity position? Who will provide capital debt funds?...

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Assignment: 3rd Step to the Final Project




Financial Plan


A. Financial Projections


How will you fund the business?


What are your desired debt and equity position?


Who will provide capital debt funds?


What role will leasing play in your financial strategy?


Will you use outside investors for equity capital?


How will you manage the financial risks your business faces?


What operating procedures, such as developing cash flow budgets or spending limits, will you have to ensure adequate money for debt repayment?


What are the important assumptions that underlie your projections? These assumptions may be associated with both external or internal factors.


What financial aspects of your business (equity, asset growth, ROA, ROE, etc.) will you monitor?


What procedures will be used for monitoring overall business performance?


What level of performance will your business shoot for? These should be targets for next year and in five years. They should be financial performance standards used to monitor the overall business.


What yield and output levels could you attain? What efficiency levels will you reach?



B. Contingency Plan


What will you do if you can’t follow through with your primary plan?


How are you preparing for an emergency in your business?


How will the business function if something happens to one of the key members of the management team?



These sections will be added to the final business plan at the end of the course. Each section of the Business Plan needs to be 2-3 paragraphs some maybe more.

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Answered Same DayJun 20, 2021

Answer To: Assignment: 3rd Step to the Final Project Financial Plan A. Financial Projections How will you fund...

Abhinaba answered on Jun 30 2021
146 Votes
Running Head: FINANCIAL PLAN        
FINANCIAL PLAN        2
FINANCIAL PLAN
Financial Plan
Financial Projection
Depending on the financial condition, a bank loan should be applie
d. If it cannot be afforded, trusted people can be involved in the business and crowd funding can be done.
The desired debt and equity position should be on the type of business or industry. However, an ideal debt to equity ratio should be in between 1.8 to 2.0
Capital debt can be provided by bank with the clause a bond. The amount should be returned with rate of interest before deadline of the bond ends
Leasing will save money during the initial days of business. It will let the business afford the expenses the business needs crucially for growth. It just poses a mere clause of maintaining the assets carefully.
Outsider investors should be involved in the business. The biggest advantage the outsider investors provide is the fact that if the business fails; they would not expect return of investment. One does not get this facility from the bank.
Risk management plan should be made even before getting into the business. The plan should deal with market-risk, credit-risk, liquidity risk and operational risk. Trade insurance should be applied and financial advisors, lawyers should be hired to keep on sailing through bad times.
Some steps should be taken to ensure adequate money for debt payment. Ancient and outdated inventory should be done away with in the replacement of anything. Slow paying customers should be avoided. Good customers should be encouraged with discounts.
Some assumptions can mitigate business risks. Amount of personal guarantees should be limited. Design liability should not be assumed....
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