Strayer University Pro Forma Income Statement Worksheet

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Business Finance

Strayer University

Description

Introduction

"One of the most important steps in launching a new business venture is fashioning a well-designed, practical, realistic financial plan." (Scarborough & Cornwall, 2015, p. 454).

Overview

With this assignment, you are creating two important elements of a financial plan: an Income Statement and Balance Sheet. You also are preparing an outline of a presentation of your business plan to potential investors or lenders.

Instructions

Using the same company from your previous assignments, write a 3–4 page paper in which you:

Prepare a simple pro forma (projected) income statement and balance sheet for the first two years of operation, using income projections and incorporating an advertising plan.

Outline a plan for hiring and retaining competent, motivated employees for your business.

Prepare an outline for a "pitch," i.e., a short 20–30 minutebusiness plan presentation that will be made to lenders or investors.

Include at least two references outside the textbook.

This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.

The specific course learning outcome associated with this assignment is:

Organize information to develop a clear and persuasive business plan for a specified audience.

Unformatted Attachment Preview

Running head: BUSINESS 1 Business Name Institution Course Date BUSINESS 2 Business ShinnyNet Cleaning Services Company target primary market comprises individuals in the middle and upper socioeconomic class in Vienna. The customers targeted involve families from such socioeconomic classes where only the wife or the husband works while the other spouse cannot clean. Since the family does not enjoy cleaning themselves and has money to pay for cleaning services, they employ someone to pay for them (McKenzie, 2017). Therefore, ShinnyNet Cleaning Services Company's primary customer target comprises these families that leave an expensive life and earn an annual salary of above $300,000. In other families, both the spouses are employed and do not get enough time to do their cleaning activities and hence have to hire people for the cleaning services. Even though these families may not have very high annual incomes, they have to hire for these services due to lack of enough time to clean. Therefore, the company targets these families to provide their cleaning services. With Vienna’s large percentage of the population employed and earning high annual salaries, the ShinnyNet Cleaning Services Company has a large customer base in the city. Additionally, with the most population made of people aged between 25-50 years old, which comprises young mothers who require a lot of help in cleaning the house and clothes, the company enjoys more customers (McKenzie, 2017). Therefore, the primary customer target for the ShinnyNet Cleaning Services Company is made of these families in Vienna. We can use a range of methods to determine customer wants and needs in the market. One of the methods that ShinnyNet Cleaning Services Company will use to determine customer wants and needs in Vienna is analyzing what other competing companies provide to customers and what they don’t (Sarstedt and Mooi, 2014). First, through existing research on consumer consumption of cleaning services in Vienna, it will be easier for the company to determine what the customers want or need in the market. Through the analysis and conducting a SWOT Analysis to identify BUSINESS 3 weaknesses of the competitors while using the company's strength to meet the current opportunities in the market, it will be easier to provide cleaning services that the market wants or needs. Secondly, the company would conduct a customer survey method to determine the quality of cleaning services they need (Sarstedt and Mooi, 2014). The customer surveys will make it easier for ShinnyNet Cleaning Services Company to understand customers' attitudes and expectations from those providing cleaning services in the market. The data obtained from these customer surveys would help the company determine what customers in Vienna want and hence provide the services according to their expectations. Thirdly, the company would use the existing information on customer wants and needs in cleaning service provision (Sarstedt and Mooi, 2014). The current information would make it easier for the company to understand what quality of cleaning services customers in Vienna want and what they pay for those services. Therefore, these methods would be necessary to ShinnyNet Cleaning Services Company in determining what the customers in the Vienna market want and hence provide their cleaning services according to the customer requirements and expectations. The marketing mix that the ShinnyNet Cleaning Services Company would use to be successful in the Vienna market would need a range of approaches, including pricing their cleaning services, distribution of the services, advertisement, and promotion of their cleaning services. Firstly, the ShinnyNet Cleaning Services Company cleaning assistance will be of high quality and per the expectations of customers in Vienna. These services would include cleaning of houses, washing of clothes and other household equipment. The pricing approach used by the ShinnyNet Cleaning Services Company on their cleaning services would be in terms of hours spent in offering cleaning services to the customer (Grădinaru, Toma, and Marinescu, 2016). The pricing mechanism will be uniform across all the company customers in Vienna and would be $20 per BUSINESS 4 hour for every customer. On the promotion approach, the ShinnyNet Cleaning Services Company will be advertising through the company social media accounts, televisions, radios, and billboards to promote their services to customers (Grădinaru, Toma, and Marinescu, 2016). Additionally, the company will use a referral system to gain more customers in Vienna for its cleaning services in the market. The placement or distribution approach used by the ShinnyNet Cleaning Services Company will be to all needs in Vienna city. Therefore, every customer in Vienna requiring cleaning services from ShinnyNet Cleaning Services Company will get our services. The ShinnyNet Cleaning Services Company will have to plan and budget for their advertising media and publicity to ensure that they don't spend a lot on an advertisement while getting little value from the ad. The advertisement costs incurred should be payable using the sales resulting from media advertisement (Saliterer, Sicilia, and Steccolini, 2018). Therefore, the budget for the company in media advertisement will be 5% of the total revenues resulting from the media. With the company projecting an annual income of $10,000 per month from media advertisement and publicity, the company will have to pay $500 for the ad every month. Therefore, the ShinnyNet Cleaning Services Company will spend approximately $6,000 every year for media advertisement. The company will conduct their media advertisement using a national television with the advertisement program running for 1 minute every hour. The advertisement program would be in between a new program to reach more possible customers. BUSINESS 5 References Grădinaru, C., Toma, S. G., & Marinescu, P. (2016). Marketing mix in services. Ovidius” University Annals. McKenzie, D. (2017). Identifying and spurring high-growth entrepreneurship: Experimental evidence from a business plan competition. American Economic Review, 107(8), 22782307. Saliterer, I., Sicilia, M., & Steccolini, I. (2018). Public budgets and budgeting in Europe: state of the art and future challenges. The Palgrave handbook of public administration and management in Europe, 141-163. Sarstedt, M., & Mooi, E. (2014). A concise guide to market research. The Process, Data, and, 12.
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Explanation & Answer

View attached explanation and answer. Let me know if you have any questions.

Running head: FINANCIAL PLAN

1

Financial plan
Name
Institution
Professor
Date

FINANCIAL PLAN

2
Financial plan

Introduction
Every company needs to have a financial plan that the management would use to make key
decisions concerning various business processes concerning the company. Business financial plans
include various elements such as income statements, cash flows, and balance sheets. For the
ShinnyNet Cleaning Services Company, we will discuss the income statement for two years and
the balance sheet for the same two years, which would provide a clear picture of the company's
business plan. Firstly, I have prepared the income statement for the ShinnyNet Cleaning Services
Company projection for 2020-2021. The income statement indicates the projected sales and the
average costs of offering cleaning services to households in Vienna. The income statement element
of ShinnyNet Cleaning Services Company's financial plan projection aims to ensure that the
company has enough resources to run all the business operations successfully and ensure we do
not overcapitalize the business (Kimmel, Weygandt and Kieso, 2018).
Pro-forma income statement for ShinnyNet Cleaning Services Company
Year

2020

2021

0

0

Cash sales

65,000

80,000

Total cash

65,000

80,000

Sales cash received

0

0

Company current borrowing

0

0

Amount of cash received
Cash from business
operations

Additional ...


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