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This week you’ll have to take the pricing of your product as compared to competitors and begin to build some financials, using the tables in the mini-Business Plan. This week complete Section 4 Financial Plan. You may view the grading rubric by clicking on Grades and Progress in the navigation menu, locating the assignment, and selecting View Rubric. Find more information helpful to this exercise via your Gitman text; Chapters 5, 14 & 16; especially Chapter 5. You will also need to update and finalize your Executive summary.*The four financial pieces of information that you will need to include with your mini-Business Plan are the following:
*Along with all of the above, you will need to have some Financial assumptions. You will need to determine your threshold of sales, and how quickly you will ramp up. As you ramp up sales, your customer acquisition costs or marketing costs will increase. In your assumptions, you can give some guidance as to what your percentages on the cost of goods sold may be. You can make assumptions about how and from whom you will borrow money. You’re still going to need to have enough cash on hand to be able to make it until you have enough money coming in that you can cover not only the variable cost for each additional product but also your fixed costs, which will be your lights and heat and other monthly expenses. This is why there is a cash-flow document in your plan template. This is not required since it is a bit complicated. But you may try to complete it.*This final week you will also need to update and finalize the Executive summary section, drawing content from the other parts of your mini-Business Plan. Then download and submit the completed mini-Business Plan to the link above. Your instructor is available to help you answer any questions that you may have.
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