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 landscaping company, a restaurant, or an electronics store that sells portable computing devices.Each business has its own Business Profile detailed in the below sections.The purpose of the Business Profile is to guide you in understanding the scope of the business, the entrepreneur’s startup costs, and financial assumptions. The project requires you to create a written budget proposal, a supporting Excel 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.At least one authoritative, outside reference is required (anonymous authors are not acceptable). These should be listed on the last page (titled Works Cited).
Appropriate citations are required.
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.
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
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 refrigerator
20 four-seater tables with chairs
Busing cart for transporting dirty dishes from the dining area to the dish washing
area
140 sets of dishes, cutlery and drinking cups
Commercial Dishwasher
Miscellaneous cooking and food handling equipment like trays, lifters, spoons,
pots; etc.
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 female washrooms, already installed, utilities, maintenance, 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 generates
enough cash flow to fund itself.
Section 1 Business Description/Objectives Summary (Executive Summary)
Section 2 Sales Forecast
Section 3 Capital Expenditure Budget
Section 4 Investment Analysis
Section 5 Pro Forma Income Statement
Section 6 Pro Forma Balance Sheet
Section 7 Pro Forma Cash Budget
Section 8 Final Budget Proposal Template and Budget Proposal Workbook
Using a presentation tool such as PowerPoint (with narration), create a presentation directed to the management team for your start-up business that will outline your proposal, summarize the key points and defend your budget.