Create a new venture financial plan that has two parts: 1) an Excel spreadsheet with estimates for the financial information, and 2) a written document with a summary of key financial information.

This assessment examines crafting a business plan, building a strategic plan, identifying sources of financing, creating a financial plan, and managing cash flow. You will create a financial requirement plan that estimates all the financial information related to starting the new venture and operating it for the first 12 months. Your financial plan will include a spreadsheet with estimated financial information for your new venture and a summary of the key financial information for your new venture.

A well thought out and fact-based business plan increases the likelihood of success for your new venture. A business plan is a written summary of your proposed new venture that includes operational and financial details, marketing opportunities and strategy, and the needed skills and ability of its management (Scarborough & Cornwall, 2019). The plan also identifies the required sources of financing and reviews how debt and equity will be managed. The financial plan is a tool used to identify and estimate the initial investment required to get your new venture up and running as well as the monthly operating expenses and revenues required to break even and achieve profitability in the first 12 months. Finally, cash management involves forecasting, collecting, disbursing, and investing the cash your new venture will need to operate.

Assume you are either going to (a) start a new venture on your own or (b) buy a franchise in a new location that will require a complete build-out. Indicate which option you are choosing in the introduction to your assessment.

Then put together a financial requirement plan that estimates all the financial information related to starting the new venture and operating it for the first 12 months.

Part 1
Financial Plan Worksheet Template [XLS]. (Enter all estimated financial information in this template.)
(1) The initial investment required to get your new venture up and running.
(2) The monthly operating expenses (overhead and direct expenses) for the first 12 months.
(3) The monthly revenues required to break even and achieve profitability for the first 12 months.
(4) Additional cash reserves needed to run the business in the first 12 months.
Part 2
Financial Report Summary Template [DOCX] (5–6 single-spaced pages). This will be a summary of key financial information.
(1) Initial Investment: Summary.
(2) Monthly Operating Expenses: Summary.
(3) Monthly Revenues: Summary.
(4) Cash Reserves: Summary.
(5) Funding Sources Review.

The initial investment required to get your new venture up and running.
The monthly operating expenses (overhead and direct expenses) for the first 12 months.
The monthly revenues required to break-even and achieve profitability for the first 12 months.
Additional cash reserves needed to run the business in the first 12 months.
Identification and review of three different funding sources for starting and operating new venture during the first 12 months.
Estimate the following:

Initial Investment (start-up costs). These may include:
Business registration fees.
Required licenses and/or permits.
Legal and/or accounting fees.
Initial franchise fee (if choosing franchising option).
Initial franchise training costs (if choosing franchising option).
Build-out and contractor costs.
Furniture and required equipment costs.
Rent deposit.
Utilities setup fees.
Starting inventory.
Starting supplies.
Et cetera.
Monthly Operating Expenses (first 12 months). These should include:
Monthly rent or mortgage payment.
Insurance.
Salaries.
Utilities (electricity, gas, water, et cetera).
Phone and Internet access.
Website hosting.
Supplies.
Maintenance.
Marketing and advertising.
Direct costs of inventory sold (storage, postage, credit card fees, et cetera).
Franchise royalty fees (if choosing franchising option).
Franchise technology fees (if choosing franchising option).
Franchise advertising/marketing fees (if choosing franchising option).
State and federal payroll taxes.
Et cetera.
Monthly Revenues (first 12 months). These should include:
Product sales (number of transactions, revenue per transaction).
Service sales (number of transactions, revenue per transaction).
Break-even sales level required.
Profitability sales level required, net profit margin, ROI per month.
Et cetera.
Cash Reserves (first 12 months).
Estimate additional monthly cash reserves needed to cover monthly expenses or unforeseen circumstances; minimize the risk of the new venture running out of cash during the first year of operation.
Identify worst and best case scenarios.
Funding Sources (first 12 months).
Identify at least three (3) different source(s) for the funds besides your own savings, required to cover the initial investment to get your new venture up and running and any additional cash needed to fund operations during the first 12 months.