Financial and Accounting Statements and Projections – Discussion

Please answer each question separately, for my business planning class. Thanks

1. Have you considered the learning curve effect on production/services?

2. If you borrow money to start your business, rather than using 100% of your own equity, do your initial plans change?

3. I plan to open a small specialty cupcake bakery in an area with little apparent competition. My market research suggests that I can reach a sales level of $650,000 the first year. My products sell at an average of $3.75 per piece. The above assumptions imply an output of about 48 dozen per day. What are the operational possibilities of reaching this sales level? Why or why not?

1. Suppose you have a partner who wants to buy you out. What are your considerations in responding to the offer?

2. Do you have a business operation that can be franchised? If so, how might your exit strategy change?

3. What is your exit strategy?

4. Suppose you are approached by an interested investor to buy your business. Do you know how to value your business to be able to respond? How do you determine the value of your business? Might you work for an investor who bought your business? Why or why not?

Looking forward to your answers…

FYI-My dream business is to have a property management company that manages apartment complexes for private investor, so please try to implement that when answering the questions.

no reference needed

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