Question;Business PlanThe purpose of this assignment is to offer you the opportunity to analyze your immediateenvironment and exercise your creativity and ability to discover and exploit opportunities byusing strategic management concepts. This assignment differs from the strategic audit in that itrequires a more detailed knowledge of specific business characteristics that are typically notavailable when analyzing the larger firms (i.e. cost of square foot to rent a commercial property,the cost of importing a specific product, the cost of flyers or an ad in the local paper). Also, I findthat constraining oneself to a new business places a limit on the budget (i.e. bootstrapping) thatcan realistically be used to implement a plan. For example, when analyzing a case or performinga strategic audit on a large company (e.g. Apple), your budget is almost infinitethis is not thecase with new ventures. The plan will be graded based upon creativity, timeliness, specificity,depth and breadth of analyses, and SUPPORT for your business idea.Only need help with the Financial Analysis section.Summary of new venture idea.The new venture idea for my business plan is a web site that auctions contract work. It will belike Angies List and U-Ship combined free membership for those looking for contractors butpaid membership for the contractors. The site will allow members looking for help to postcontractor requirements and the contractors will bid for these contractor requirements.Company Name ProBid - "Where professionals bid for your work5 Owners (Members)Target: People (homeowners, small businesses, companies looking to contract out work) lookingfor bids to complete their work post an ad on the website for free.Different types of payment for contractors.Yearly-paid with unlimited auctions - $400 a yearMonthly-paid with unlimited auctions - $45.00 a monthPay-per-auction - 2.5% of ending auction bid. So if the project cost winning bid is $1500, theywill pay $37.50.Plus revenue from ads.Additional revenue may be generated by hosting contractor's web-presence, which can beincluded in another type of yearly-paid membership. This can be offered starting in the 2nd year.The website as www.pro-bid.com..Financial Analysis (3-4 pages)Detail requirement:Investment: What will be invested in and how much will be invested? Dont forget that the initialinvestment should take into account assets, operational losses and working capital. Keep youreye on details for example permits, deposits (ex. rent), salaries pre-inauguration, transportationetc.Break-even point: What are the fixed costs, variable costs and sales price? How many units doyou need to sell to have a cash flow of $0. Perform a sensitivity analysis to analyze how the BEPwill change under different conditions.Cash flow: This is the most important financial statement. In order to project a cash flow, youmay first need to project the income statements and balance sheets. What will your monthly cashflow be like during the first year and then yearly for the next two years?Return on Investment: What ROI do you expect? Is it worth the risk?Typed using 12-point Times New Roman font, double spaced, one-inch margins all around, pagenumbering on bottom of page, no header or footer.No references for the Financial Analysis section.
Paper#48097 | Written in 18-Jul-2015Price : $26