BUSU 640 Week 6/Assignment 5
BUSU 640
Week 6/Assignment 5
Section 9
Finance Plan
100 Points
Length: Up to 10 pages, double-spaced (Times New Roman, 12-point font with standard 1” margins).
Due: Due Sunday of Week 6 by 11:59pm. Be sure to run your draft past your writing partner before submitting your work.
Addresses Learning Outcomes: 1, 5 & 6
IMPORTANT NOTES:
- Apply what you learned in your MBA program, specifically classes ACCU 602, BUSU 610, BUSU 620 and FINU 607.
- Cite your references. You may use your textbooks from these and other core classes in the MBA.
- Do not cut and paste from your past assignments and papers.
- Be sure to fully explain your illustrations. You do not want your reader to interpret the illustrations, you must control the message. Provide an in-depth explanation of any illustrations you embed in your paper.
- Use the Score.org templates for your financials.
The Financial Plan includes all necessary financial data, including the assumptions that drive your analysis (such as customer acquisition rates and average sales which drive your sales volumes, salary and benefit costs relative to market, distribution channel costs, etc.), including the break-even analysis.
The spreadsheets and data can be developed in Excel, but they must be embedded into your Word document. If embedding the spreadsheets makes them illegible, please insert snapshot illustrations of the subject sections. Then, add the complete spreadsheet to the appendix of your final paper.
It is not sufficient to just submit spreadsheets, it is critical that the rationale research and analysis be included so that the source of the financial data is clear.
This section of the business plan must include written descriptions of the start up expenses from the previous assignment, plus a 12-month profit and loss projection and business expenses report. If applicable, your projections should be based upon research of like-businesses.This section must include the following details, spread out among the three sub-sections noted below, if applicable:
- Break even analysis
- Acid Test and ROI (ratios)
- Cash flow projections
- Plans for funding
- Forecasting techniques used
- All necessary financial data, including the assumptions that drive your analysis any personal investments you have made or plan to make
- Any debt financing you have or plan to obtain
- Any venture capital you plan to seek over what time horizon
- Percent of the company you plan to give in return for venture funding
- Funds required & their sources
- Current funding requirements
- Funding requirements over the next three years (key ratios to focus on)
- Use of funds
- Loss control
- Explain how the Six Steps of Economic Decision Making apply to the innovation
- Include financial statements for first three (3) years (monthly first year and annually for years two and three) (may use template)
- Income statements
- Balance sheets
- Cash flow statements
- Determine capital requirements
Include a stock analysis of a company that is similar to yours. In this stock analysis, demonstrate your ability to analyze the implications of stock when running of a business. Include how your new venture could consider raising money through stock offerings in the future. Base the projection on a pattern from another company in the same field.
The financial plan has three sub-sections:
- Risk Management
- Break-even Analysis
- 12-Month Profit and Loss Projection Report
1. Risk Management Sub-section
Discuss the risks involved in your field, location, and industry, including industry standards, legal issues and concerns (including possible penalties and rebates). Discuss what could prevent your assumptions from occurring, what you are doing to prevent those events, and what you will do if they occur. Research, analyze and write about all of the risks that could be inherent in your new business.
2. Break-even Analysis Sub-section
Explain the break-even analysis and your plans for funding. Include a spreadsheet that presents the break-even analysis.
3. 12 Month Profit and Loss Sub-section
The innovation must show a profit within the first eighteen months. If not, you must explain why a profit will not be realized, and perhaps break the innovation down into phases. Include a spreadsheet that presents the12-month profit and loss.
Rubric
|
Criteria |
Exemplary |
Proficient |
Developing |
Emerging |
|
Financial Plan, income statement, balance sheet, cash flow statement, ratios, break-even analysis, risk, stock analysis |
40 There is strong evidence and detail that connects the financial plan to the management, operations and marketing portions of this business plan. The financial presentations for the financial plan, breakeven analysis and potential stock offerings are data driven and realistic. There is a clear, easy to understand flow to the work. This assignment builds on Assignment 1, 2, 3 and 4. The financial plan, income statement, balance sheet, cash flow analysis and breakeven analysis are evident and clear. |
32 There is evidence and detail that connects the financial plan to the management, operations and marketing portions of this business plan. The financial presentations for the financial plan, breakeven analysis and potential stock offerings are data driven and realistic. There is a clear flow to the work. This assignment builds on Assignment 1, 2, 3 and 4. The financial plan, income statement, balance sheet, cash flow analysis and breakeven analysis are evident. |
28 There is some evidence and detail that connects the financial plan to the management, operations and marketing portions of this business plan. The financial presentations for the financial plan, breakeven analysis and potential stock offering are data driven. There is a flow to the work. This assignment for the most part builds on Assignment 1, 2, 3 and 4. The financial plan, income statement, balance sheet, cash flow analysis and breakeven analysis are evident. |
24 There is little or confusing evidence in the financial plan, breakeven analysis. There is a lack of clarity about the viability of the new venture and how the financial plan creates a viable business. The paper is full of opinion and much of the paper could have been written before taking the core classes in the MBA. Not all of the financial spread sheets are completed. |
|
Application (Theory to Practice) (20% of total) |
30 There are citations from the following text books in the paper: ACCU 602, BUSU 610, BUSU 620 and FINU 607 classes. The concepts in the textbook and other graduate sources are clearly applied to the innovation using creative and interesting writing. |
24 There are citations from the following text books in the paper: ACCU 602, BUSU 610, BUSU 620 and FINU 607 classes The concepts in the textbook and other graduate sources are clearly applied to the innovation. |
21 There are citations from the following text books in the paper: ACCU 602, BUSU 610, BUSU 620 and FINU 607 classes, but they are used as glossary terms rather than application. This means that concepts (like capitalization) are described using the textbook, but not applied. |
18 There is little evidence that research was performed. There is a lack of clarity about how key concepts from core classes are applied. The paper is full of opinion and could have been written before taking the core classes in the MBA. |
|
Critical Analysis (20% of total) |
10 Consistently employs critical analysis in discussing the issue(s). Effectively synthesizes and integrates data clearly. The Risk analysis is clear, well analyzed and shows citations. |
8 Fairly consistently employs critical analysis in discussing the issue(s). Fairly effectively integrates data. The Risk analysis is clear, well analyzed and shows citations. |
7 Somewhat employs critical analysis in discussing the issue(s). . Somewhat uses data. The Risk analysis is not well analyzed and shows some citations. |
6 Limited if any critical analysis in discussing the issue(s). Limited if any use data findings to draw conclusions, identify options and/or make recommendations. The Risk Analysis is not graduate level. |
|
APA and Sources (10% of total) |
10 Uses at least ten sources scholarly sources including the text books. Accurately adhere to APA standards; reference page and citations are correct. All sources listed in References are cited in paper |
8 Uses at least eight scholarly sources. Adheres to APA standards; reference page and citations are correct with minor (1-3) errors. All sources listed in References are cited in paper |
7 Uses at least six scholarly sources. APA standards are somewhat followed; the work of others is cited but with numerous (4 – 7) errors. Sources listed in References and citations may not match |
6 Uses less than five scholarly sources. Limited adherence to APA standards in the paper and Reference page; work of others may be cited but with multiple (8+) errors. Sources listed in References and citations do not match |
|
Writing Mechanics (15% of total) |
10 The paper is logical and well-written; spelling, grammar and punctuation are accurate. Paper is the required length of content, and includes correctly prepared title page. |
8 The paper is logical and well-written but with minor (1 – 3) errors in spelling, grammar and/or punctuation. |
7 The paper is somewhat logical and well-written but with several (4 – 7) errors in spelling, grammar and/or punctuation. |
6 The paper lacks clarity and may be confusing with numerous (8+) errors in spelling, grammar and/or punctuation. |
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Rating:
/5
Solution: BUSU 640 Week 6/Assignment 5