Assignment 2: The Basics of a Start-Up
This assignment investigates the financial needs of your business venture from Assignment 1.
Write a three to four (3-4) page paper in which you:
1. Outline the financial start-up needs for this business. Consider such items as cash, equipment, space lease or purchase, raw materials, labor costs, etc. Provide a rationale for your estimates. (This is only a preliminary list. As you progress in the course, this outline will be fine-tuned.)
2. Once you have estimated the start-up needs for this business, determine the best financing options to obtain the needed capital and how you would approach securing this type of financing. Justify your selection.
3. Evaluate the two (2) most important financial ratios that you will use to track the health of the business and explain how each would provide insight to the business performance. Provide a rationale with your response.
Your assignment must follow these formatting requirements:
· Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
· Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
· Apply the fundamentals of entrepreneurial financing.
· Analyze the financial planning needs of various businesses.
· Perform fundamental analysis of a business.
· Use technology and information resources to research issues in financing entrepreneurships.
· Write clearly and concisely about financing entrepreneurships using proper writing mechanics.
Discussion #1
“The Short Term” Please respond to the following:
· Assess two to three (2-3) clues that may indicate an entrepreneur is potentially insolvent or approaching insolvency. Then, indicate how the entrepreneur may recover.
· Imagine your business venture from Assignment 1 is experiencing a cash crisis. Determine three to four (3-4) tactics your business could take immediately to conserve cash. Then, indicate the expected impact of each tactic. Be specific when describing your tactics.
Discussion #2
“The Long Term” Please respond to the following:
· Indicate where you can look for information to assist you in estimating the overall market demand for your business venture from Assignment 1. Then, discuss how this information may direct the business decisions made by the owner.
· Using market share percentage of industry sales, estimate the sales you may expect in the first year for your business venture from Assignment 1. Then, determine if it is sufficient to support your business venture. Provide a rationale with your response.
