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Balance sheet - The last essential document in the financial section of the business plan is the balance sheet of the business at the beginning of the first month of trading . Balance sheets are different from profit loss accounts which show profits for a time period such as a year . Balance sheets show the state of the business at one moment in time. Balance sheet Fixed Assets £ £ premises 30,000 machinary 10,000 Other equipment 2,000 42,000 Current assets Bank 10,000 Petty cash 250 10,250 Current liabilities creditors ------- Bank overdraft ------- Working capital 10,250 Net Current assets 42,250 Long term liabilities loan 50,000 total 50,000 Net assets Financed by Net profit Profit and loss account - A profit and loss account is a financial statement which summarises the revenue and expenses of a business for an accounting period and shows the overall profit or loss. The profit loss account will show the sales (or turnover) of the business, the purchases made by the business and the overheads of running the business, such as admin, wages, rent paid, telephone and interest paid. Trading Balance profit loss account Sales 255,000 Opening stock 0 purchases 63,000 Closing stock 0 Cost of goods sold 63,000 Gross profit 192,000 expenses wages 50,000 electricity 2,000 Other expenses 5,000 total 57,000 Net Profit 135,000 Break even analysis - A business planning a new project is only likely to go ahead if it is eventually going to make a profit . A profit can be made when the business has broke even. ( as soon as its income covers its running costs ) . The break even analysis tries to work out the position of output or sales where the firm just covers its total costs . There are 2 types of costs known as fixed costs and variable costs . Fixed costs are costs which stay the same and do not change with output or sales for example rent, insurance, interest rates and salaries Variable costs are costs which change with output...
pages: 2 (words: 395)
comments: 0
added: 02/18/2012
1.0 Introduction 1.1 Background The Directorate of Corporate Planning and Research (DCPR) which is herein after referred as a " Business Unit" is made up of two departments namely, Corporate Planning, and Research and Development. The principle purpose of the DCPR is to guide the company to achieve its mission. The company, having made its targets to achieve its objectives, must make sure that it is moving in the right direction by taking appropriate strategies and action plans which are executable. To accomplish its task the business unit depends on its manpower made up of Engineers, Economists, Statisticians, Accountants, Hydrologists, Geologists, Surveyors and other scientists. To augment expertise deficiency, the unit does utilise consultancy services from outside the company. This business plan has been prepared after closely reviewing the last year's business plan covering the period 2000-2002. 1.2 Mission The Corporate Mission is "to generate, transmit, distribute and supply electricity in the most, economical, safe, reliable and environmentally friendly manner". The Business Unit's Mission is to develop sound power system plan and undertake studies, research and environmental activities, to ensure that TANESCO meets its objectives as given in the Corporate Mission. As this is a review of the previous business plans, it was found that the mission statement is still valid. 1.3 General Objectives of the Business Unit With the establishment of the Corporate Plan as a management tool in the Company, the unit's first major objective is to analyse the business environment, identify the strategic issues, and monitor the business planning and formulation of the Corporate Business Plan. The second major objective is undertake studies, research and environmental activities aimed at improving the company's performance, efficiency and cost effectiveness through the development of appropriate technologies, design specifications and applied methods for the generation, transmission and distribution systems. Specific objectives of the Business Unit: - Develop, guide and...
pages: 12 (words: 3031)
comments: 1
added: 07/06/2011
Company Name Gilligans Bar and Grille Business Form Partnership Address 000 North Reading Rd Adamstown, PA 17569 Contact Person Sandra Nash Telephone 717-336-7491 Hours of operation Sunday – Thursday 11:00am – 12:00am Friday – Saturday 11:00am – 1:00am Days open 7 days Closed on Thanksgiving and Christmas Opening date November 27, 2003 Type of Restaurant Full Service Gilligans Table of Contents 1.0 Executive Summary 1.1 Objectives…………………………………………………………..….3 1.2 Mission………………………………………………………………...3 1.3 Keys to Success………………………………………………………..3 1.4 Start-up Captial………………………………………………………3-5 2.0 Description of the Business 2.1 Business Description………………………………………………….6 2.2 Mission Statement…………………………………………………….6 2.3 Development & Status………………………………………………..6 2.4 Hours of Operation……………………………………………………6 2.5 Future Plans…………………………………………………………6-7 2.6 Product/Service………………………………………………………..7 2.7 Location……………………………………………………………..7-8 3.0 The Marketing Plan 3.1 Market Analysis………………………………………………………8 3.2 Target Market…………………………………………………………8 3.3 Competitor Analysis…………………………………………………11 3.4 Issues Analysis……………………………………………………11-13 3.5 Marketing Objectives…………………………………………………13 3.6 Pricing……………………………………………………………..13-14 3.7 Promotion Plan……………………………………………………….14 3.8 Sales And Distribution…………………………………………….…14 3.9 Sales Forecast……………………………………………………..14-15 3.10 Action Programs………………………………………………………15 4.0 The Management Plan 4.1 Key Employees…….………….………………………………………16 4.2 Compensation & Incentives…….……………………………………..16 4.3 Consultants & Professional Support Resources…….…………………16 4.4 Management Structure & Style……………………….………………16 4.5 Personnel Plan………………………………………….………….16-18 5.0 The Financial Plan 5.1 Important Assumptions………………………………….……………18 5.2 Break-Even A...
pages: 27 (words: 7233)
comments: 2
added: 10/09/2011
Executive Summary The name of the business is Interior Enterprises located in Brookfield, Illinois at 17201 West 55th Street. The business is a partnership between James Faitz and Michael Rohan, both from the Chicagoland area with extensive background in interior restoring, remodeling, and refinishing. Interior Enterprises will undertake jobs in the five to twenty thousand dollar ranges to make back startup costs within the first two years. Initial startup costs are expected not to exceed $80,000 range. Family members of both owners will invest money. Loans will be repaid at eight- percent interest over twenty-four months. Truck 20,000 Storage Space 18,000/ yr. Insurance 7,000/ yr. Initial Projects/ Tools 35,000 Advertising 4,000 The partnership is split equally between both owners. Each of them will contribute $10,000 towards the initial startup costs. Business will be expectedly slow at the start and smaller, consistent jobs will stem from clients James has worked for in the past. Once a reputation for quality work has been established, approximately twelve to eighteen months, business will begin to find the company for their interior projects. Objectives The company will begin with only the two owners. As a reputation is established, the company will begin to hire on full time laborers at an hourly wage. The company is looking for clients that want to have their home or business "renewed." With such experience on the owner's part in restoring older homes, remodeling, and refinishing both older and new homes, the company is devoted strictly to the interior aspect of construction work and ensuring the homeowner's satisfaction. Chart of Competition Comparison These are several of the companies in the surrounding area and the labor charges for specific jobs. As one can see from the chart, prices are moderately the same with the exception of two companies that charge a lot more than we do. Company 12x 14 room (paint) 12x14 hardwood...
pages: 4 (words: 1085)
comments: 1
added: 11/16/2011
I) EXECUTIVE SUMMARY Interyarn company provides polyester yarn services for their customers over Internet. Company is planning to sell the American polyester yarns to the rest of the world over Internet. Interyarn is planning to gain profit from the American textile companies by getting a %5 commission over each sale made from the interyarn website. Interyarn's first goal is to make some arrangements with the mid-sized polyester yarn companies in the United States and gain their trust about selling their products in the Europe and Asian markets. Another goal of the company is to grow steadily and to be recognized as a leading yarn trader company on the internet. Interyarn's products will be generally PFY, which stand for polyester flat yarn, and PTY that is also stands for polyester texurized yarn. These two brands of yarns are the most popular brand of yarns all around the world. Our company will trade the yarns in the bases of bobbins, which is also very popular type all around the world. Interyarn will make alliances both from Europe Asia and United States. The textile industry is a highly competitive free trade market. Although a lot of countries have some quotations, international yarn trade can be done all around the world very easily. Because of the highly competitive market, interyarn will find the cheapest yarns with the highest quality. The biggest competitor of our company will be the far eastern yarn trader companies such as Far Eastern and Daehan Co. Although they have a low price advantage, our company will benefit from the quality of the American polyester yarns. II) MISSION STATEMENT Interyarn's goal is to become a reputable yarn trader in the world in three years. Company will make some alliances both from United States, Europe and Asia. As a part of our relationship with polyester yarn producers, interyarn...
pages: 4 (words: 860)
comments: 1
added: 07/22/2011
Introduction To evaluate and analyse a "professionally made" marketing plan requires the evaluator, to very critically and closely point out the strengths of the plan, yet also point out parts of the plan that are irrelevant or are in need of improvement (weaknesses). Of course, as this is a professionally written marketing plan, the positive aspects of the plan will vastly out-number the negative aspects. In analysing this specific marketing plan we must also establish whether each of the elements of the plan are addressed adequately, and, if needed, offer suggestions for improvement to the plan. The Marketing Plan for "T B S" is quite extensive, with many different sections. Essential Elements of any Marketing Plan There are certain aspects/elements that are integral to the success of a marketing plan that need to be addressed in great detail. These elements include: · Situation Analysis · Market Analysis (External and Internal) · SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats) · Establishing Market Objectives · Identifying and Satisfying Target Market · Developing Marketing Strategies · Marketing Mix (Product, Price, Promotion and Place) · Developing Financial Forecasts "T B S" addresses all of these elements in their marketing plan. Now we must analyse to what extent each specific area has been addressed. Situation Analysis "The Situation Analysis looks at the market in terms of size and growth, needs of the target market and trends in buyer behaviour. The performance of products is examined and major competitors are identified and analysed." The situation analysis for "T B S" addresses, in great detail, the area in which the retailer is situated. It mentions the growth in population of the area, and the locality of the "T B S" to large cities where consumers will be targeted. It also addresses some of the businesses competitors but does not go into much detail at all. The situation analysis therefore is not fully covered,...
pages: 7 (words: 1782)
comments: 0
added: 12/25/2011
Executive Summary Hot Chicks on the Beach is a business located in Bondi, Sydney that aims to sell high quality, gourmet chicken dishes in a clean, customer friendly environment. The company will hold high moral and ethical values toward the environment and its consumers. The sole trader, Cassie Jones, hopes to provide products that will benefit the businesses consumers, while remaining as an ecologically sustainable enterprise. Business Name The name of the business will be Hot Chicks on the Beach. This name was chosen as it is appropriate and memorable. The pun used is effective as it includes the location and the produce of the business, while being humorous as it is a slang term used frequently in the area. The name also successfully gives an indication to the casual, relaxed environment of the cafe. Location Hot Chicks on the Beach will be located on a major road in Bondi, Sydney. The location of the business is very crucial in achieving the financial goals of the business, as the business would not be as successful if not in a 'beachy', casual area. Bondi was chosen as it is a popular destination for tourists, while maintaining a high population all year round. There are many surrounding hotels, and as Hot Chicks on the Beach is in close proximity to them this makes the café convenient for the abundance of tourists. Although there are a high density of other chicken shops in the area, Hot Chicks on the Beach is a fresh new face serving unique chicken dishes that differ from other chicken stores. The casual atmosphere of Bondi is ideal for a relaxed take-away café with a small dine-in area, and as a popular Sydney beach, there is a guaranteed large number of potential customers. There are also sufficient parking facilities in the area, and a high number of varying...
pages: 11 (words: 2862)
comments: 1
added: 09/23/2011
EXECUTIVE SUMMARY Company: TCM Healthcare Corporation wants to be a very unique healthcare provider who can improve people's health and well being by marketing efficacy-proved Traditional Chinese Herbal Medicine (TCM)/dietary supplements in the US market and the rest of the world in response to the increasing demand for complementary and alternative therapy. The market is huge and expanding because the fact of conventional medicine has no and never has all answers to all diseases! Patients need to have alternatives. Launching Products: TCM Healthcare enters into the market by providing a series of Traditional Chinese Medicine as herbal supplements. The first product will be launched is related to the conventional post-menopause therapy which is proved having more risks (harmful side effects) than benefits by the National Institution of Health since August 2002. By searching in Traditional Chinese Medicine in China market, consulting TCM doctors, and collaborating with TCM manufacturers, we have found at least three products having promised efficacy. The products are very effective in alleviating symptoms of post-menopause with no side effects. They all have gone through clinical trials in China and components are all originated from ancient formula with enhancement. The ingredients are extracted from natural herbs without any chemical residues. The Market: In the United Sates, more than six million women use Hormone Replacement Therapy (HRT) for post-menopause and related symptoms. Many women have been alarmed by the result of the study conducted by the NIH: 41 percent increase in risk of stroke; 29 percent increase in risk of heart attack; 26 percent increase in breast cancer. Women who suffer menopausal symptoms are seeking alternatives to hormone replacement therapy. Since a new drug discovery and development is a long-term and less certain process, the post-menopause therapy currently opens a huge potential market to enter. Profit Projection: Most women at age of 45-60...
pages: 10 (words: 2625)
comments: 1
added: 10/15/2011
OUTLINE: I. INTRODUCTION II. BUSINESS PLAN A. REASSESSING YOUR BUSINESS PLAN B. MAKE ANY NECESSARY REVISIONS III. BUDGET/ADVERTISING IV. CUSTOMER SERVICE A. PAST CUSTOMER SERVICE B. LISTENING TO CUSTOMER COMMENTS C. OFFERING INCENTIVES TO CUSTOMERS V. DIVERSIFICATION A. CONSIDERING WHEN TO DIVERSIFY B. ADVERTISING STRATEGIES VI. SAVING TIME AND MONEY A. COLLECTIONS B. BANKING RELATIONS C. CHANGES IN CLIENTELE D. KEEPING EMPLOYEES HAPPY VII. CONCLUSION In today's sluggish economy, many businesses are faced with some very hard decisions about the future of their companies. There are several factors to consider such as: business plans, budgets, customer service, and also saving money and time. In this paper I will attempt to address some concerns that warrant consideration for any company in this current economic situation. BUSINESS PLAN The first step is to determine if you should reconsider or revisit your existing business plan. One of the most important things that you can do during an economic downturn is to evaluate the current business plan. After all, the business plan is the working base for your company. Is the business still on the current business plan, or have you strayed away from the original business plan? Should you write a new business plan? Should you reinforce the guidelines for the current business plan? These are some very hard-hitting but required questions that you must ask. Once you have answered these questions, what do you do next? Sit down and examine the plan from the viewpoint of an investor looking to purchase the company and make any revisions that seem appropriate. BUDGET/ADVERTISING In a downturn one of the first places many business cut expenses are in advertising. This can be a real mistake, and here's why. As part of the philosophy of expanding your base and recruiting more customers, you need to advertise and sell more than ever. What better way to do that than to advertise more? As a competitor, you should know that other...
pages: 5 (words: 1344)
comments: 1
added: 11/04/2011
Case 10-3: Galvor Company Background Galvor Company was founded in 1946 by owner, and president M. Georges Latour. The company had acted as a fabricator, buying parts and assembling them into high quality, moderate-cost electric and electronic measuring and test equipment. Latour had always been personally involved in every detail of the firm's operations as in most family businesses. Fiscal growth grew from $2.2 million in 1960 to $12 million in 1971. However, April 1, 1974, Galvor was sold to Universal Electric Company (UE), a large multinational organization with its European Head Quarters located in Geneva, Switzerland. The Company Head Quarter were located in the United States. Early in 1977, 42 people were employed in the controller's department, prior to Galvor's take over by UE; there had been fewer than 20 people in the controller's department. Galvor's new management and main key players were as follows Latour: remained on the board for Galvor but was not involved in day to day operation and management of the company. Barsac: Galvor's Controller, 34 years old trained and skilled accountant, good ability in English, employed by universal since 1964 (10 years experience, formerly assistant treasure of Universal subsidiary). Boudry: UE's European Controller; Chief Bureaucrat – all Galvor's financial reports were submitted to Boudry. Hennessy: Galvor's Managing Director, UE employee for 9 years Poulet: Director of Manufacturing in Geneva; uses financial reports to oversee operation and identify problems at Galvor. Communicates with Hennessy via telex when problems are identified. The heart of UE's reporting and control system was an extremely comprehensive document – The Business Plan – that was prepared annually by each of the operating units. The Business Plan was the primary standard for evaluating the performance of unit managers, and everything possible was done by UE' s top management to give authority to the plan. As a result of this system there was a very strong...
pages: 8 (words: 2006)
comments: 1
added: 11/06/2011
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