Continue working on your business plan.
Complete the following sections highlighted in Ch.9 in Entrepreneurship: Starting and Operating a Small Business
- Fixed costs
- Cash flow
- Financing strategy
- Raising capital
- Venture capital
After completion of the Business Plan Practice worksheet, each learning team member shares their completed worksheet with their team for feedback and submits the final worksheet based on feedback
Unit 3 Business Plan Practice
At the end of each unit, you will have an opportunity to work on your own business plan. Please go to the Business Plan Worksheet Template section for Unit Three on the BizBuilder CD now to develop the following segments of your plan:
- List and describe your monthly fixed costs.
- Add a cash reserve that covers three months of fixed costs.
- What types of insurance will your business need, and why? What is the highest deductible you feel you can afford?
- Describe your recordkeeping system.
- List any bank accounts you will open for your business.
- Will you accept personal checks from customers? Credit cards? Will you offer charge accounts or customer credit?
Projected Income Statement
Complete a monthly projected budget and one-year income statement for your business.
Use your projected one-year income statement to calculate:
Projected ROI for one year: ___________%
Projected ROS for one year: ___________ %
Projected Payback for one year: ___________%
- Create a projected cash flow statement for your business for one year.
- Calculate the burn rate for your business.
What tax forms will you have to fill out for your business?
1040 U.S. Individual Tax Return _________
Schedule C, Profit or Loss from Business ___________
Schedule SE, Self-Employment Tax _________
Quarterly Sales and Use Tax Return _________
Small Business and Government
Which lawsâ€”such as minimum wage and age requirements, health and safety regulations, or antidiscrimation lawsâ€”will affect your business?
- List the items you will need to buy to start your business.
- Add up the costs to get your total start-up capital.
- Add a cash reserve of one half your total startup capital.
- List the sources of financing for your start-up capital. Identify whether each source is equity, debt, or a gift. Indicate the amount and type for each source.
- What is your debt ratio? What is your debt-to-equity ratio?
- What is your â€œpaybackâ€ period? In other words, how long will it take you to earn enough profit to cover start-up capital?
Describe financing sources that might be willing to invest in your business in exchange for equity.
Friends and family __________________________
Describe any debt financing you intend to pursue.
Do you plan to use bootstrap financing? Explain.
- Do you plan to pursue venture capital? Why, or why not?
- List potential sources of venture capital.