Question
University of Phoenix Material
 
Venture Budgeting and Forecasting Paper
 
Resources: Kudler Opening Budget
Write a 700- to 900-word paper in APA format in which you do the following:
 
·       Illustrate how your venture would perform by estimating the revenue and expense to calculate operating profit or loss. Include estimates of your venture’s main sources of revenue and the expenses expected in the main cost categories such as the cost of goods, sales and marketing, labor, rent, maintenance, and any other significant expenses.
 
·       Illustrate your venture’s startup costs by estimating a preopening budget—also termed development budget—that includes startup costs such as building and construction, Web site development, preopening marketing, equipment, merchandise, preopening operations, research and development, working capital, and any other significant preopening expenses. An example of a preopening budget may be found in the materials listed on the course page for the University of Phoenix student Web site for Week Two named Kudler Opening Budget.
 
·       Develop financial planning goals by illustrating how your venture would be initially funded by using cash on hand, debt, venture capital, or a combination of these. Use a mortgage calculator found on the Internet and calculate your loan payments. Include these expenses in your Operating Budget. Use the information below to help in your calculations:
 
Building and Construction Estimation*
Remodeling Fees $200 per Square Foot
New Building Construction Fees $450 per Square Foot
*Multiply square footage of small business by fee for estimation.
 
Interest Information
10 Year bank Note (Debt) 7.5% Interest
5 Year Venture Capital Loan 15% Interest
 
Examples of Profit Split for Venture Capital Partnerships*
Example 1
Venture Capital Investment 1 $300,000
Cost to Develop Business 1 $1,000,000
Venture Capital Profits 1 30% of Business Profits
Example 2
Venture Capital Investment 2 $500,000
Cost to Develop Business 2 $2,000,000
Venture Capital Profits 2 25% of Business Profits
*Profit split is commensurate with the ratio of investment.
 
Post your assignment as a Microsoft® Word attachment.
Grade: University | Subject: Business
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Venture Budgeting

The venture I have was the fast food restaurant. For estimating the revenue and expenses, we need perform a strategic plan. During the strategic planning, the estimation of revenue and expense were considered as an imperfect science which means that we need to give ideas of the additional cash that outlay and for implementing the each area of our strategic plan and the revenue we can be expect to be generated. This strategic plan should be able to identify about the large…

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