Business: Digital Marketing Assignment
(My business would help small-to-medium-sized companies improve their online presence through social media management, content creation, and targeted advertising strategies.)
Create a start-up budget, income and expense statement, and cash flow statement for your new business venture. As appropriate, make all projections three years into the future. Write up a summary of these statements (at least one paragraph per statement) that highlights key points of interest to prospective investors (e.g., when the business becomes profitable, how much invested capital it requires, where the capital will come from). Also include a list of key assumptions that support the numbers in the statements in your write up. Finally, include a table of key financial ratios and/or supplemental statements such as an investment schedule.
Your rough draft assignment consists of one Excel Workbook and one Word Document containing the following:
- In a single Excel Workbook, create a start-up budget, pro-forma income and expense statement, and a pro-forma cash flow statement for your new business venture. Each statement should appear on its own sheet.
- Start-Up Budget – how much money will it take to open your doors on day 1, as well as a budget projection for the first three months of operation when you may not have enough revenue to support yourself
- Income and Expense Statement – presented monthly for the first year, then annually for the next three years of operation
- Cash Flow Statement – presented quarterly for the first year, then annually for the next three years of operation
- In a single Word Document, create an introduction, economic analysis, summaries for each statement, and an analysis of key financial ratios
- Introduction – Introduce yourself and your business idea to potential investors. Professional language and proper grammar is required.
- Economic Analysis – Facts about your industry:
- Where is your target market located?
- What is the total size of your market?
- What percent share of the market will you have?
- Current demand in target market.
- Trends in target market—growth trends, trends in consumer preferences, and trends in product development.
- Growth potential and opportunity for a business of your size.
- What barriers to entry do you face in entering this market with your new company?
- Pro Forma Summaries
- Start-Up Budget Summary – explain in words/paragraphs how much money it will take to open your doors on day 1 and remain open for the first three months, where will you obtain these funds? Include areas of interest to potential investors. Use numbers and data from your spreadsheet. List any key assumptions that support the numbers in the statement (explain how you derived your numbers).
- Income and Expense Statement Summary – explain in words/paragraphs highlights derived from your Income and Expense Statement. Include areas of interest to potential investors. Use numbers and data from your spreadsheet. List any key assumptions that support the numbers in the statement (explain how you derived your numbers).
- Cash Flow Summary – explain in words/paragraphs highlights derived from your Cash Flow Statement. Include areas of interest to potential investors. Use numbers and data from your spreadsheet. List any key assumptions that support the numbers in the statement (explain how you derived your numbers).
- Financial Ratios – Include a table of key financial ratios with a detailed summary in words/paragraphs that highlight/explain these ratios as they pertain to your business. Definitions not needed, as your potential investors know what these ratios mean.
Upload all required documents (one Excel Workbook and one Word Document or two PDFs) to the actual assignment.
