Description
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:
- 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.)
- 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.
- 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:
- This course requires use of new Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.
- Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow SWS 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.
Explanation & Answer
Thank you for working with me
Running head: THE BASICS OF A START UP
The Basics of a Start Up
Name:
Professor’s name:
Course title:
Date:
1
THE BASICS OF A START UP
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Financial Start-Up Needs
Despite the profitability associated with starting a business, this venture could be costly
as the owner has to put in place a holistic plan from start to finish (Richardson, 2016). It is
essential to consider the long-term cost incurred to run a gym. Starting a gym club may require
high start-up costs due to the number of equipment to purchase as well as renting the space. The
projected cost for starting the gym business will range from $50,000 to $100,000. The initial cost
will relate to leasing fitness center location. Although this cost could vary depending on the gym
location and size, it will cost between $2000 and $50000. As a start, the business will rent the
space and use the same area for a spin, yoga, and cardio classes.
Secondly, gym equipment will cost the business a significant amount based on the
number and type of equipment purchased. It will range from $5000 to $10000. The focus will be
on buying the equipment in sets as a complete package to take advantage of the discounts offered
by some of the suppliers. Some of the essential stuff...