Final Business Plan: Proforma Budget

Final Business Plan (BUSI 4066)

Proforma Budget (Worth 5% of the course)

Description

Building on your organization design, you will begin to put numbers to the activities you have planned for your new business. In this assignment, you will create a financial plan based on your best knowledge of how your enterprise will start and operate for its initial period, usually a year. It is recognized that this plan is based on your best guesses of capital needs, costs, and expenses. More importantly, this plan will help you determine how much money you will need to launch your business and operate it.

Instructions

  1. Review the discussion of pro forma financial statements in Chapter 8 of the text.
    1. Chapter 8 discusses the process of financial management and its importance for forecasting, which is critical for the entrepreneur contemplating a start-up. The ability to demonstrate a firm grasp of the finances underlying a new endeavour shows prospective investors that the entrepreneur understands his or her financial needs and holds a realistic view of revenues. For the entrepreneur, the pro forma financial statements provide a path to follow in preparing the start-up and operating during its initial period.
  2. Prepare the pro forma financial statements.
    1. Based on your best understanding at this point, you will prepare a consolidated balance sheet, statement of cash flows, and income statement for the first year.
  3. Explain your pro forma statements in an accompanying document.
    1. Along with these pro forma financial statements, you will prepare an explanation discussing how you arrived at the various figures.
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