BMK 366 WU Current Funding Request of Business Analysis

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Business Finance

BMK 366

Wilmington University

BMK

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We first opened our store for supplying anti-glare glasses on 2009 with a view to solve the issue of eye irritation problem in youths of age 25-30 who spend maximum of their time on screen using mobile phones, laptop or personal computer. The business plan was executed with initial investment of $700,000 with which we bought furniture to setup a store for glasses bought middle range to high quality anti-glare glasses. Our business has grown substantially from those early beginnings and with better quality glasses at affordable prices and utmost customer satisfaction we were able to make generous profit of $10,000 every month with monthly revenue of $600,000 and burn rate of $50,000 monthly. We also expanded our business by opening three more stores in year 2010 and 5 stores in year 2011 in the same state. We are now a proud store chains with quality service and satisfied customers. The targeted customers have been expanded from children to old age now. We are able to solve the problem of eye irritation due to exposure to short wavelength visible light (i.e. blue color region in the visible light spectrum). We further have targets and plans to increase our business from just a store supplying glasses to overall therapy of neck and spines and other recreational activities to reduce problem of back and neck pain and reduce the onscreen exposure time. We take the customer feedback as our topmost priority as the success to any business is their customer satisfaction. We have many competitors who have followed our business model of taking customer feedback and assuring quality products and services is being delivered. This also provides us with challenges to be first priority of the customer as authorized services provider and glass distributors. We have started with 3 people for managing store and maintaining the stocks of quality glasses which has increased to chain of 9 stores with 50 people working as team in different parts of the state. We have successfully generated revenues of around $720,000, $2880,000 and $6480,000 in year 2009,2010,2011 respectively and our respective profits are $120,000, $450,000 and $958,000. We have a pre-money valuation of $1,000,000 and seeking growth to manufacture our own designed glasses as per customer requirements. We also would like to manufacture custom glasses to our valued customers for which we need an industrial setup and capital of $2000,000. LIL SNUPEM X Students Home х Week 5 Written A X © myWilmu Degre X Course Modules: X ALEKS - Kameror X S Ask a new questi x + Х c wilmu.instructure.com/courses/33905/assignments/704193?module_item_id=1790760 * TO g Paused : * Apps intuit turbo tax TurboTax Tax Pre... New Tab Sx My Account - Sirius... direct tv Sell Timeshare Fin... M Gmail ► YouTube Maps Other bookmarks Reading list Fall 2021 You are going to have to remember your Financial Statements (sorry.) Home Develop your funding plan using the following outline. Be exact and detailed. Remember, if you do not plan for future funding requests for years two through five, demonstrate how funding from year one will sustain the business for the next four years. Announcements Account Syllabus Modules Dashboard Discussions Courses Grades Zoom 38 Groups My Media People 1. Current funding request (1/2 page per funding request) Equity or Debt? o Terms? Time period request will cover? 2. Future funding requirements over the next five years (1/2 - 1 page) 3. My intended use(s) of the current funding request (1-2 pages) . Capital expenditures? . Working capital? Debt retirement? o Acquisitions? o Purchase new equipment? . Increase operation capacity? 4. Any strategic financial plans for the future (1-2 pages) . Buyout? Debt repayment plan? . Selling the business (exiting)? 5. Minimum 3 pages 6. Minimum 2 scholarly sources 7. APA formatted Calendar Online Tutoring Inbox Chat Contact an Online Navigator Help Library Library Library Guide I Student Course H Type here to search о 9 J' 0 06 a 56°F Cloudy Ao la » 12:45 PM 12/12/2021
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1

Funding of Business

Institutional Affiliation
Student's Name
Course Name
Instructor's Name
Date

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Funding of Business
Introduction
Operations of businesses will require that firms have the resources necessary to help them
meet their goals and objectives. Various sources of finance can be used to finance business
operations (Bhattacharya & Londhe, 2014). According to Bhattacharya & Londhe (2014), debt
and equity are the two primary sources of finance that businesses usually use to finance their
operations. Therefore, a sound financial plan will help companies finance their operations and
manage funds to ensure that funds are appropriately used and maximized. This paper shall
evaluate the best sources to finance a business and future strategic options that the business may
pursue.
Current Funding Request
The owner's capital and equity will fund the current business operations since the funds
required to start and continue operating the business will be high. Equity and debt will be used to
finance the business due to the large finance requirements that the business will require. The
amounts to be contributed by the owners will mainly depend on the financial capability of the
partners. After the funds have been contributed, the debt shall be sought from the banking
institutions or any lending institutions with lower capital costs. The initial $ 700,000 investment
was from owners and equity. $ 500,0...


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