Your Company NameYour Company NameBudget Proposalfor[ent.docx

Your Company Name
Your Company Name
Budget Proposal
for
[enter years here]
BUSN278
[Term]
Professor[name]
DeVry University
Table of Contents
Section
Title
Subsection
Title
Page Number1.0Executive Summary
2.0Sales Forecast
2.1Sales Forecast
2.2Methods and Assumptions
3.0Capital Expenditure Budget
4.0Investment Analysis
4.1Cash Flows
4.2NPV Analysis

4.3Rate of Return Calculations
4.4Payback Period Calculations
5.0Pro Forma Financial Statements
5.1Pro Forma Income Statement
5.2Pro Forma Balance Sheet
5.3Pro Forma Cash Budget
6.0Works Cited
7.0Appendices
7.1Appendix 1: [description]
7.2Appendix 2:
[description]
(Please put page numbers in the last column of the table of
contents above, because they apply to your finished assignment.
Do this after your project is complete. Remove this text and all
text that is in italics in this template when finished with your
project.)
(Also, please submit your Excel spreadsheet that shows your
supporting calculations.)
1.0 Executive Summary
The first paragraph of this executive summary should give a
brief description of the business to which this budget applies.
Very briefly describe the products and services of this company,
the geography or demographics of the customers it serves, and
why people purchase the main product of this business. Much or
all of this information will be found in the business profile
provided to you. Please use your own words, and please do not
simply copy and paste the explanation in the course materials.
Make assumptions if necessary.
Also, provide a second paragraph that describes how the budget

supports the company’s strategy.
Finally, provide a third paragraph in which you summarize the
key points from your budget, including the planning horizon;
the amount of up-front investment; the NPV, payback, and IRR
of the project; and key figures from your income statement,
cash budget, and balance sheet.
Remember, this is not a thesis or introduction of what you will
talk about—it contains the major, specific content of each
section. The second and third paragraphs should be written after
you have completed all other sections of this template.
As you complete sections of this template, please remove all
italicized text in all sections of this template and replace it with
your own text or you will lose points!
2.0 Sales Forecast
Briefly introduce the sales forecast section.
2.1 Sales Forecast
Here you should include a simple table showing the years and
the total sales for each year, along with a brief explanation of
why sales are expected to rise, fall, change, or stay the same in
certain years. Provide a brief explanation of the sales forecast,
indicating why you expect sales to rise or fall during the
planning horizon. Your explanation should be consistent with
the trends and changes in sales found in your table.
Year 1
Year 2
Year 3
Year 4

Year 5
Sales
2.2 Methods and Assumptions
Here you should describe how you arrived at your sales forecast
in section 2.1. You should provide any detailed calculations that
led you to the sales forecast values. You should also summarize
any research or figures that led you to make this sales forecast.
3.0 Capital Expenditure Budget
Here you should provide a screenshot of your capital
expenditure budget, also listing the sources of data and
assumptions that led to each line item in table format. Briefly
describe the total investment and, if necessary, why major items
are necessary to achieve the company’s strategy.
4.0 Investment Analysis
Briefly describe the NVP, IRR, accounting rate of return, and
payback period for this analysis. Indicate the discount rate you
used and how you arrived at it.4.1 Cash flows
Provide an Excel spreadsheet screenshot that shows how you
arrived at the net cash flows for each period in your planning
horizon, and describe its highlights.
4.2 NPV Analysis
Provide a screenshot of your Excel NPV analysis here, and

describe its highlights.
4.3 Rate of Return
Provide a screenshot of your IRR and accounting rate of return
calculations here, and explain the highlights.4.4 Payback Period
Provide a screenshot of your Excel calculation of the payback
period for this venture.
5.0 Pro forma Financial Statements
Briefly introduce this section here.5.1 Pro Forma Income
Statement
Describe key figures and assumptions from the income
statement, such as important profit or sales figures and their
causes. Also, provide a screenshot of your pro forma income
statement.
5.2 Pro Forma Balance Sheets
Provide a screenshot of your balance sheets and describe key
figures they contain.
5.3 Pro Forma Cash Budget
Provide a screenshot of the cash budget and describe the impact
of the budget on cash balances.
6.0 Works Cited
List any sources you cited in the body of your report.
7.0 Appendices
NOTE: Start this section at the top of a new page.
This section of the budget proposal is where you’ll attach all of
the supporting materials that you’ve referenced in the
preparation of your plan and that is too detailed or extensive to

be included in the body of the report. Use this page to separate
the appendices from the text in the body of your report. Make
certain that you update the table of contents to include the title
of each exhibit in the appendix and its page number.7.1
Appendix 1: [put a description here]7.2 Appendix 1: [put a
description here]7.3 Appendix 1: [put a description here]
Project Management: Achieving Competitive Advantage
Fifth Edition
Chapter 4
Leadership and the Project Manager
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All
Rights Reserved
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1
Learning Objectives (1 of 2)
4.1 Understand how project management is a “leader-intensive”
profession.
4.2 Distinguish between the role of a manager and the
characteristics of a leader.
4.3 Understand the key behaviors in which project leaders
engage to support their projects.

4.4 Recognize traits that are strongly linked to effective project
leadership.
Rights Reserved
Learning Objectives (2 of 2)
4.5 Identify the key roles project champions play in project
success.
4.6 Recognize the principles that typify the new project
leadership.
4.7 Understand the development of project management
professionalism in the discipline.
4.8 Recognize the important role ethics plays for successful
project leadership.
Rights Reserved
P M B o K Core Concepts
Project Management Body of Knowledge (P M B o K) covered
in this chapter includes:
Responsibilities and Competencies of the Project Manager (P M
B o K 1.7.1)
Interpersonal Skills of the Project Manager (P M B o K 1.7.2)
Manage Project Team (P M B o K 9.4)
Project Communications Management (P M B o K 10)
Manage Stakeholder Engagement (P M B o K 13.3)
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Leadership
“The ability to inspire confidence and support among the people
who are needed to achieve organizational goals.”
Project management is leader intensive!

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Leaders Versus Managers
Exchange of purpose
A right to say no
Joint accountability
Absolute honesty
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Figure 4.2 Differences Between Managers and Leaders
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How the Project Manager Leads
Project managers function as mini-C E O s and manage both
“hard” technical details and “soft” people issues.
Project managers:
acquire project resources
motivate and build teams
have a vision and fight fires
communicate
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Acquiring Resources
Project are underfunded for a variety of reasons:
Vague goals
Lack of top management support
Requirements understated

Insufficient funds
Distrust between managers
Rights Reserved
Purpose of Meetings
Define project and team players.
Provide an opportunity to revise, update, and add to knowledge
base.
Assist team members in understanding role in project as part of
whole and how to contribute to project success.
Help stakeholders increase commitment to project.
Provide a collective opportunity to discuss project.
Provide visibility for project manager’s role.
Rights Reserved
Communication (1 of 2)
It is critical for a project manager to maintain strong contact
with all stakeholders.
Project meetings feature task-oriented and group maintenance
behaviors.
Table 4.1 Task and Group Maintenance Behaviors for Project
MeetingsTask-Oriented Behavior Specific Outcome 1.
Structuring process Guide and sequence discussion 2.
Stimulating communication Increase information exchange 3.
Clarifying communication Increase comprehension 4.
Summarizing Check on understanding and assess progress 5.
Testing consensus Check on agreement
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Communication (2 of 2)

Table 4.1 [continued]Group Maintenance Behavior Specific
Outcome 1. Gatekeeping Increase and equalize participation 2.
Harmonizing Reduce tension and hostility 3. Supporting Prevent
withdrawal, encourage exchange 4. Setting standards Regulate
behavior 5. Analyzing process Discover and resolve process
problems
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Characteristics of an Effective Project Manager
Leads by example
Visionary
Technically competent
Decisive
A good communicator
A good motivator
Stands up to top management when necessary
Supports team members
Encourages new ideas
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Characteristics of Project Managers Who Are Not Leaders
Personal Flaw
Sets bad example
Not self-assured
Lacks technical expertise
Poor communicator
Poor motivator
Organizational Factors
Lack of top management support
Resistance to change
Inconsistent reward system
A reactive organization rather than a proactive, planning one

Lack of resources
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Leadership and Emotional Intelligence
Emotional intelligence refers to leaders’ ability to understand
that effective leadership is part of the emotional and relational
transaction between subordinates and themselves.
Five elements characterize emotional intelligence:
Self-awareness
Self-regulation
Motivation
Empathy
Social skills
Rights Reserved
Traits of Effective Project Leaders
One study on effective project leadership revealed these
common characteristics:
Credibility
Creative problem-solver
Tolerance for ambiguity
Flexible management style
Effective communication skills
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Essential Project Management Abilities
Organizing under conflict
Experience
Decision making
Productive creativity

Organizing with cooperation
Cooperative leadership
Integrative thinking
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What Are Project Champions?
Champions are “fanatics” in the single-minded pursuit of their
pet ideas.
Champions can be:
creative originator
entrepreneur
“godfather” or sponsor
project manager
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Champion Roles
Traditional Duties
Technical understanding
Leadership
Coordination and control
Obtaining resources
Administrative
Nontraditional Duties
Cheerleader
Visionary
Politician
Risk-taker
Ambassador
Rights Reserved

Creating Project Champions
Identify and encourage their emergence.
Encourage and reward risk takers.
Remember the emotional connection.
Free champions from traditional project management duties.
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New Project Leadership
Four competencies determine a project leader’s success:
Understand and practice the power of appreciation.
Remind people what’s important.
Generate and sustain trust.
Align with the leader.
Rights Reserved
Right Management Choices in International Setting
Develop a detailed understanding of the environment.
Do not stereotype.
Be genuinely interested in cultural differences.
Do not assume there is one way (yours) to communicate.
Listen actively and empathetically.
Rights Reserved
Project Management Professionalism
Project work is becoming the standard for many organizations.
There is a critical need to upgrade the skills of current project
workers.
Project managers and support personnel need dedicated career
paths.

Rights Reserved
Creating Project Managers
Match personalities with project work.
Formalize commitment to project work with training programs.
Develop a unique reward system.
Identify a distinct career path.
Rights Reserved
P M I Code of Ethics
The Project Management Institute’s code of ethics for project
managers consists of:
Responsibility
Respect
Fairness
Honesty
Rights Reserved
Normative Versuse Behavioral Ethics
Normative ethics: What will a person or organization do in a
given situation?
Behavioral ethics: Why do people behave the way they do in the
workplace?
Table 4.5 Normative Ethics and Project Manager
BehaviorsOrientationCategoryProject Manager’s Responsibility
ProcessDeontological ethics explains the rules, maxims, norms,
and principles to govern conduct. Moral obligations concerning
justice and fairness. Social contract theories.Make sure
processes are just, fair, and reasonable and do not violate
human rights.OutcomeConsequentialism defines right conduct
in terms of the alternative likely to produce the best overall

outcome for the stakeholders.Maximize the overall value for the
stakeholders.
CharacterVirtue ethics focuses on the moral virtues of honesty,
integrity, fairness, courage, care, and how they are
developed and nurtured.Exhibit exemplary personal conduct that
serves as a model for others of how to act.
Rights Reserved
26
Unethical Behaviors
Corruption is the abuse of entrusted power for private gain.
Petty corruption: everyday abuse of power by low-level
officials with ordinary citizens.
Grand corruption: committed by relevant institutions such as
governments, corporations, or legal bodies.
Rights Reserved
Types of Corruption
Common types of corruption include:
Bribery
Extortion
Fraud
Abuse of Power
Embezzlement
Conflict of Interest
Nepotism
Rights Reserved

Summary (1 of 2)
Understand how project management is a “leader-intensive”
profession.
Distinguish between the role of a manager and the
characteristics of a leader.
Understand the key behaviors in which project leaders engage to
support their projects.
Recognize traits that are strongly linked to effective project
leadership.
Rights Reserved
Summary (2 of 2)
Identify the key roles project champions play in project success.
Recognize the principles that typify the new project leadership.
Understand the development of project management
professionalism in the discipline.
Recognize the important role ethics plays for successful project
leadership.
Rights Reserved
Copyright
Rights Reserved
Project Management: Achieving Competitive Advantage
Fifth Edition
Chapter 3
Project Selection and Portfolio Management

Rights Reserved
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1
Learning Objectives
3.1 Explain six criteria for a useful project selection/screening
model.
3.2 Understand how to employ a variety of screening and
selection models to select projects.
3.3 Learn how to use financial concepts, such as the efficient
frontier and risk/return models.
3.4 Identify the elements in the project portfolio selection
process and discuss how they work in a logical sequence to
maximize a portfolio.
Rights Reserved
P M B O K Core Concepts
Project Management Body of Knowledge (P M B o K) covered
in this chapter includes:
Portfolio Management (P M B o K 1.4.2)
Rights Reserved
Project Selection

Screening models help managers pick winners from a pool of
projects. Screening models are numeric or nonnumeric and
should have:
Realism
Capability
Flexibility
Ease of use
Cost effectiveness
Comparability
Rights Reserved
Screening and Selection Issues (1 of 2)
Risk—unpredictability to the firm
a. Technical
b. Financial
c. Safety
d. Quality
e. Legal exposure
Commercial—market potential
a. Expected return on investment
b. Payback period
c. Potential market share
d. Long-term market dominance
e. Initial cash outlay
f. Ability to generate future business/new markets
Rights Reserved
Screening and Selection Issues (2 of 2)
Internal operating—changes in firm operations
a. Need to develop/train employees
b. Change in workforce size or composition
c. Change in physical environment

d. Change in manufacturing or service operations
Additional
a. Patent protection
b. Impact on company’s image
c. Strategic fit
All models only partially reflect reality and have both objective
and subjective factors imbedded.
Rights Reserved
Approaches to Project Screening
Checklist model
Simplified scoring models
Analytic hierarchy process
Profile models
Rights Reserved
Checklist Model
A checklist is a list of criteria applied to possible projects.
Requires agreement on criteria
Assumes all criteria are equally important
Checklists are valuable for recording opinions and stimulating
discussion.
Rights Reserved
Simplified Scoring Models
Each project receives a score that is the weighted sum of its
grade on a list of criteria.
Scoring models require:
agreement on criteria
agreement on weights for criteria

a score assigned for each criteria
Relative scores can be misleading!
Rights Reserved
Analytic Hierarchy Process
The A H P is a four step process:
Construct a hierarchy of criteria and subcriteria.
Allocate weights to criteria.
Assign numerical values to evaluation dimensions.
Determine scores by summing the products of numeric
evaluations and weights.
Unlike the simple scoring model, these scores can be compared!
Rights Reserved
Figure 3.1 Sample A H P with Rankings for Salient Selection
Criteria
Rights Reserved
Figure 3.4 Profile Model
Rights Reserved
Financial Models
Payback period
Net present value

Discounted payback period
Internal rate of return
Rights Reserved
Payback Period
Determines how long it takes for a project to reach a breakeven
point.
Cash flows should be discounted.
Lower numbers are better (faster payback).
Rights Reserved
Payback Period Example (1 of 3)
Table 3.5 Initial Outlay and Projected Revenues for Two Project
OptionsBlankProject A RevenuesProject A OutlaysProject B
RevenuesProject B OutlaysYear
0Blank$500,000Blank$500,000Year
1$50,000Blank$75,000BlankYear
2150,000Blank100,000BlankYear
3350,000Blank150,000BlankYear
4600,000Blank150,000BlankYear 5500,000Blank900,000Blank
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Table 3.6 Comparison of Payback for Projects A and B
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Table 3.6 [continued]
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Net Present Value
Projects the change in the firm’s value if a project is
undertaken.
Where
Ft = net cash flow for period t
r = required rate of return
I = initial cash investment
pt = inflation rate during period t
Higher N P V values are better!
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Net Present Value Example
Table 3.8 Discounted Cash Flows and N P V (I)
Rights Reserved
Table 3.9 Discounted Payback Method YearProject Cash
Flow* DiscountedUndiscounted1$8,900$10,0002 7,900
10,0003 7,000 10,0004 6,200 10,0005 5,500 10,000Payback
Period4 Years3 Years
*Cash flows rounded to the nearest $100.
Discount sum of cash flows by the company’s required rate of

return to get a more accurate payback period.
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Internal Rate of Return
A project must meet a minimum rate of return before it is
worthy of consideration.
Higher I R R values are better!
where
A C F t = annual after tax cash flow for time period t
I O = initial cash outlay
n = project’s expected life
I R R = the project’s internal rate of return
Rights Reserved
Internal Rate of Return Example
This table has been calculated using a discount rate of
15%.YearDiscount Factor InflowsDiscount Factor at
15%Discount Factor N P
V1$2,500.870$2,17522,000.7561,51232,000.658 1,316Present
value of inflowsBlankBlank5,003Cash
investmentBlankBlank5,000DifferenceBlankBlank $ 3
The project does meet our 15% requirement and should be
considered further.
Rights Reserved
Project Portfolio Management
The systematic process of selecting, supporting, and managing
the firm’s collection of projects.

Portfolio management objectives and initiatives require:
decision making
prioritization
review
realignment
reprioritization of a firm’s projects
Rights Reserved
The Portfolio Selection Process
The portfolio selection process is an integrated framework of
interrelated steps and activities.
Preprocess Phase
Methodology of selection and strategy
Process Phase
Prescreening, individual project analysis, screening, portfolio
selection, and portfolio adjustment
Postprocess Phase
Project development, project evaluation, and portfolio
completion
Rights Reserved
Figure 3.8 Project Portfolio Selection Process
Rights Reserved
Developing a Proactive Portfolio
The project portfolio matrix classifies projects into four types
according to commercial potential and technical feasibility:
Bread and butter
Pearls

Oysters
White elephant
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Figure 3.9 Project Portfolio Matrix
Rights Reserved
Keys to Successful Project Portfolio Management
Flexible structure and freedom of communication
Low-cost environmental scanning
Time-paced transition
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Problems in Implementing Portfolio Management
Conservative technical communities
Out-of-sync projects and portfolios
Unpromising projects
Scarce resources
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Summary
Explain six criteria for a useful project selection/screening
model.
Understand how to employ a variety of screening and selection
models to select projects.
Learn how to use financial concepts, such as the efficient
frontier and risk/return models.

Identify the elements in the project portfolio selection process
and discuss how they work in a logical sequence to maximize a
portfolio.
Rights Reserved
Copyright
Rights Reserved
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Export SummaryThis document was exported from Numbers.
Each table was converted to an Excel worksheet. All other
objects on each Numbers sheet were placed on separate
worksheets. Please be aware that formula calculations may
differ in Excel.Numbers Sheet NameNumbers Table NameExcel
Worksheet NameInstructionsTable 1Instructions2.1 & 2.2 Sales
ForecastTable 12.1 & 2.2 Sales Forecast3.0 Capital Expenditure
BudgetTable 13.0 Capital Expenditure Budget4.1
CashflowsTable 14.1 Cashflows4.2 NPV AnalysisTable 14.2
NPV Analysis4.3 Rate of Return CalculationsTable 14.3 Rate of
Return Calculations4.4 Payback Period CalculationsTable 14.4
Payback Period Calculations5.0 Pro Forma FinancialsTable 15.0
Pro Forma Financials
InstructionsBUSN278 Budgeting and Forecasting Template
InstructionsUse this spreadsheet structure to lay out the various
sections of your project.The purpose of this spreadsheet is to
make it easy for your professor to locate the various sections of
your project. Please don't alter the worksheet tabs or titles.After
you finish your calculations in this spreadsheet, you will have
tocreate a written report in which you take screenshots from this
spreadsheetand put them in the Budget Proposal Template,
along with necessary explanations. Detailed instructions for
how to write the reportare found in the Budget Proposal
Template, a Word document.
&"Helvetica Neue,Regular"&12&K000000&P

2.1 & 2.2 Sales ForecastPut your sales forecasting calculations
here.
3.0 Capital Expenditure Budget
4.1 CashflowsPut your detailed cash inflows and cash outflows
here, also showing net cash flow.
4.2 NPV AnalysisCreate an NPV analysis here.
4.3 Rate of Return CalculationsShow your rate of return
calculations in this worksheet.
4.4 Payback Period CalculationsShow your payback period
calculations here.
5.0 Pro Forma FinancialsPut your pro forma income statement,
balance sheet, and cash budget here, along with any other
supporting calculations or schedules.
Course Project Description
BUSN278 Budgeting and Forecasting
Updated for March 2018
BUSN278 Course Project Overview

This is an individual project where you’ll be acting as a
consultant to an en-
trepreneur who wants to start a new business. As the
consultant, you’ll create
a 5 year budget that supports the entrepreneur’s vision and
strategy and needs
for equipment labor and other startup costs.
You can choose from one of three types of new business
startups -- a landscap-
ing company, a restaurant, or an electronics store that sells
portable computing
devices. Each business has its own Business Profile detailed in
the below sec-
tions. The purpose of the Business Profile is to guide you in
understanding the
scope of the business, the entrepreneur’s startup costs, and
financial assump-
tions.
The project requires you to create a written budget proposal, a
supporting Ex-
cel Workbook showing your calculations, as well as a
PowerPoint presentation
summarizing the key elements of the budget proposal, which
you assume will
be presented to a management team.
This is an individual project. Each week you will complete a
section of the
project in draft form. In Week 7, you will submit the Final
version of the
project’s Budget Proposal, Budget Workbook. In Week 8 you
will present and
defend your budget.

Copyright ®© 2018
All rights reserved. No part of this work may be reproduced or
used in any form or by any means – graphic,
electronic, or mechanical, including photocopying, recording,
Web distribution or information storage and
retrieval systems – without the prior consent of
Page of BUSN278 Course Project Description.docx1 10
Deliverables Schedule / Points
Business Profile: Papa Geo’s Restaurant
Vision
The vision of the entrepreneur is to create a single-location, sit-
down Italian
restaurant called Papa Geo’s. The goal is to generate an income
of $40,000 per
year, starting sometime in the second year of operation, as wells
as profit that
is at least 2% of sales.
Strategy
a) Market Focus/Analysis
The restaurant targets middle to lower-middle class families
with children as
well as adults and seniors, located in Orlando, Florida. The
area within 15
minutes of the store has 10,000 families, mostly from lower to

middle class
neighborhoods. Average family size is 4 people per household.
There is no di-
rect competition; however, there are fast food restaurants like
McDonald’s,
Taco Bell and Wendy’s in the geographical target market. The
lower-to middle
class population is growing at about 6% per year over the next
five years in this
area.
Week Deliverable Points
Draft Sections
1 Section 1.0 Executive Summary 10
2 Section 2.0: Sales forecast 10
3 Section 3.0 : Capital Expenditure Budget 10
4 Section 4.0 Investment Analysis 10
5 Sections 5.1 and 5.2: Pro Forma Income Statement and
Balance
Sheet
10
6 Section 5.3 Pro Forma Cash Flow statements 10
Final Deliverables
7 Final Budget Proposal 150
8 Final Presentation w/ PowerPoint 60

Total project points 270
Copyright ®© 2018
b) Product
The product is Italian food served buffet style, in an all-you-
can-eat format,
with a salad bar, pizza, several different types of pasta with
three or four types
of sauces, soup, desserts and self-serve soda bar. The restaurant
is also to have
a 500 square foot games area which has game machines that
children would be
interested in using.
c) Basis of Competition
Customers come to come to this restaurant because of the good
Italian food at
a low price – where you can get a meal for $7 including drinks.
Customers also

eat at Papa Geo’s due to the cleanliness of the facility, the
speed of getting
their seat and food, as well as the vending machines which keep
the children
busy while adults enjoy their meal.
Startup Requirements*
Given Costs
The cost of registering a Limited Liability Company in Florida,
filing fees listed
at the bottom of the application form located at
http://form.sunbiz.org/pdf/
cr2e047.pdf
Renovation of the facility expected to cost $15000
Business Insurance, estimated at $1000 per year
Health and other benefits are 20% of the salaries of the manager
and assistant
manager
Costs you should estimate through research, experience or other
methods
• Soda Fountain Bar
• 2 Pizza Ovens
• Salad and Pizza/Dessert Bar
• Approximately 100 square foot commercial refrigerator
• 2 cash registers
• 6 Video Game vending machines
• Average of 6 staff members at any given time
• Management Office with desk, lower-priced laptop computer
• Staff lunchroom equipment such as microwave, sink,
cupboards and re-
frigerator

Copyright ®© 2018
http://form.sunbiz.org/pdf/cr2e047.pdf
• 20 four-seater tables with chairs
• Busing cart for transporting dirty dishes from the dining area
to the
dishwashing area
• 140 sets of dishes, cutlery and drinking cups
• Commercial Dishwasher
• Miscellaneous cooking and food handling equipment like
trays, lifters,
spoons, pots etcetera
• The cost of an average of 7 employees on the payroll.
• All operating costs, such as advertising, rent for a 3500 square
foot facil-
ity with male and female washrooms, already installed, utilities,

main-
tenance, and annual depreciation.
*if you have questions about startup requirements, or think
other startup costs
are necessary for the business are missing, then make an
assumption and state
it in the relevant section of the report.
Given Financial Assumptions*
• The owner will be granted a loan for the initial startup,
repayable over
10 years at current interest rates for small business loans
• The owner will use personal funds to operate the business
until it gener-
ates enough cash flow to fund itself.
• Essentially, all sales are made by credit card. All credit card
sales are a
paid to the restaurant daily by the credit card company
• 2.5% of sales is paid to a credit card company in fees
• Food suppliers give 30 days of trade credit
• Inventories are expected to be approximately 10% of the
following
month’s sales
• The average meal costs $4.00 in materials and labor.
• The average family spends $4.00 on vending machine tokens
• Equipment is depreciated on a straight-line basis over 5 years
• Managers have health benefits, other workers do not.
The company will operate from 10:00 am to 9 pm, 7 days a
week.
• The entrepreneur will manage the store and draw a salary.

Copyright ®© 2018
• Every shift has one person on the cash register, one keeping
the food
bars stocked with food, and one on busing and table cleaning, a
manager
and assistant manager.
*If you believe any other assumptions are necessary, then
please state them in
your budget proposal
Copyright ®© 2018

Business Profile: The Cutting Edge Landscaping
Vision
The vision of the entrepreneur is to create a 5-team landscaping
business that
caters to upscale neighborhoods in Miami, Florida. The
company is to be called
“The Cutting Edge”. The goal of the entrepreneur is to
generate income of at
least $42,000 per year as his personal salary, as well as profits
of 4% after tax
sometime no later than the second year of operation. The
entrepreneur in-
tends to buy a route of 100 homes from a lawn service company
whose owner is
retiring.
Strategy
The landscaping business targets upscale neighborhoods with
home associations
which demand lawns to be manicured and well-cared for.
Customers tend to
be upper middle, to upper-class individuals with household
income levels of
$110,000 or more. The geographic focus is Miami and its
surrounding area.

The area is expected to showing slow economic growth of about
1% per year
over the next five years.
b) Product
The product is lawn maintenance and landscaping services as
well as minor irri-
gation equipment repair. The primary source of income is
expected to be in
the form of lawn-cutting, debris-blowing, and edge trimming
services. Howev-
er, the company will also do reseeding, landscaping and
foliage/tree planting,
tree trimming and light irrigation system repair when necessary
to keep their
customer’s lawns watered and healthy.
Customers hire the Cutting Edge due to its reliability in
showing up when they
are supposed to, quality lawn service, as well as their ability to
keep lawn
sprinkler systems in good repair, sparing the homeowner of the
inconvenience
of calling a sprinkler repair for minor repairs such as broken or
clogged sprin-
kler heads, or other minor sprinkler system repairs.
Given Costs
filing fees listed
at the bottom of the application form located at
http://form.sunbiz.org/pdf/
cr2e047.pdf

No health benefits except for the owner of the business
Copyright ®© 2018
Workman’s compensation fees
The cost of the initial route of 100 homes, at a cost of $120,000
methods
• Team equipment for lawn cutting, which includes equipment
for a two-
person team:
• A pickup truck
• A trailer
• A large riding lawnmower
• A smaller riding lawnmower
• A push lawn-mower

• Two gas-powered lawn-trimmers
• Two gas-powered lawn edgers
• Safety equipment for eyes and ear protection
• Tools for minor equipment repair on the job
• A drink cooler
• 2 gas powered blowers
• 2 tree/hedge trimmers
• 2 long ladder
• Buck Saws for cutting branches
• The cost of 10 workers, two per team
• All operating costs such as advertising, phone, as well a small
400 square
foot office complete with utilities, internet a laptop computer
and ac-
counting software like QuickBooks, as well as office supplies,
as well as
annual depreciation on equipment.
other startup costs
it in the relevant section of the report. This list is not
necessarily complete.
repayable over
10 years at current interest rates for small business loans
until it gener-
ates enough cash flow to fund itself.

Copyright ®© 2018
• Essentially, 60% sales are made by credit card and 40% are
made by
check. All credit card sales are a paid to the restaurant daily by
the
credit card company.
• The average lawn service costs $150 per month. Irrigation
repairs are
minimal at an average of $50 per customer per year,
landscaping and
other services are about $200 per customer per year.
• Equipment is depreciated on a straight-line basis over 5 years
• The owner has health benefits, other workers do not.
• Each lawn takes about 1.5 hours to cut and manicure, as well
as any

other repairs or extra services like tree or shrub trimming.
• The entrepreneur will manage the company and draw a salary,
but will not
service lawns or perform other services.
Copyright ®© 2018
Business Profile: Wireless World - Wireless Device Retail Store
Vision
The vision of the entrepreneur is to create a single-location
retail operation
that sells portable wireless devices called Wireless World. The
company sells
phones, wireless eBook readers, high-end notebook and netbook
computers,

iPads, and other wireless computing devices.
Strategy
This store targets tech-savvy individuals who are mostly
students from wealthy
families or working adults between the ages of 22 and 49 years
of age. These
individuals either purchase the products because they love
wireless gadgets,
think the gadgets will improve their productivity, or think the
wireless gadgets
are fashionable and consistent with their lifestyle. The store is
located in a
high-end shopping center called Millennia Mall alongside
Neiman Marcus,
Macy’s and other high-end stores.
b) Product
Products are cutting edge wireless devices from brand name
companies, as well
as specialty companies that have unique products that are not
readily available
at other stores.
Customers shop at the store partly for the high-end shopping
experience,
knowledgeable staff, and superior customer service and return
policies, and
because of the broad selection of well-known, brand-name
products, as well as
lesser known companies with highly unique and innovative
wireless devices.
They also shop at the store because it is stocked with cutting
edge products

that are new to the market.
Given Costs
filing fees listed at the
bottom of the application form located at
Renovation of the facility expected to cost $25000
Health and other benefits are 20% of the salaries of the manager
and assistant manager
Initial Investment in Inventory is $20,000
Copyright ®© 2018
methods
• The cost of an average of 7 employees on the payroll. All
operating costs,

such as advertising, rent for a 3500 square foot facility with
male and fe-
male washrooms, already installed, utilities, maintenance, and
annual de-
preciation.
other startup costs
it in the relevant section of the report.
repayable over 10 years at
current interest rates for small business loans
until it generates enough
cash flow to fund itself.
• Essentially, all sales are made by credit card. All credit card
sales are a paid to the
store daily by the credit card company
• Merchandise suppliers give 30 days of trade credit
• Inventories are expected to be approximately 10% of the
following month’s sales
• Managers have health benefits, other workers do not.
• The company will operate from 10:00 am to 9 pm, 6 days a
week.
• The entrepreneur will manage the store and draw a salary.

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