Using the business venture below, you will continue to build a financial plan for the business.
Business Venture : You own a mom-and-pop corner grocery store in a small town. The name of the store is Betty’s. Nothing Is set in stone, so you have full reign over this assignment just make sure it pertains to the grocery business so think of start up costs, rent, supplies, etc…
Write a 4–5 page paper in which you:
- Prepare a pro forma balance sheet for the first 12 months of your business. Include the assumptions on which it is based. Justify your balance sheet.
- Prepare a pro forma income statement for the first 12 months of your business. Include the assumptions on which it is based. Justify your income statement.
- Prepare a pro forma cash budget for the first 12 months of your business. Include the assumptions that you have made when creating the budget. Justify your budget.
- Scrutinize tangible and intangible costs of obtaining financial capital for your business start-up to determine whether the costs justify the implementation of the funding source.
- Assume your business is five years old and running profitably and consider how you would grow your business over the next five years. Determine the specific details that would make the equity approach to valuing your business worthwhile. Provide a rationale with your response.