entrepreneurship question

User Generated

djregn

Business Finance

Description

Business Idea

Equipment Sharing-“ i.m sharing”

Similar to the concept of “Letgo”, our business idea is someone can “rent” something from someone.For example, a person can “rent” skis or scuba diving equipment from a private person versus renting from a store or purchasing equipment.

Business Plan

The Economics of the Business

Items to include in this section:•Revenue drivers and profit margins. •Fixed and variable costs. •Operating leverage and its implications. •Start-up costs. •Break-even chart and calculations.

Financial Projections

Items to include in this section:•Sources and uses of funds statement. •Assumptions sheet. •Pro forma income statements. •Pro forma balance sheets. •Pro forma cash flows. •Ratio analysis.


Minimum of 4 pages

No Plagarism

NEED APA CITATION


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Business Idea Equipment Sharing-i.m sharing Similar to the concept of Letgo, our business idea is someone can rentsomething from someone. For example, a person can rentskis or scuba diving equipment from a private person versus renting from a store or purchasing equipment. Business Plan The Economics of the Business Items to include in this section: •Revenue drivers and profit margins. •Fixed and variable costs. •Operating leverage and its implications. •Start-up costs. •Break-even chart and calculations. Financial Projections Items to include in this section: •Sources and uses of funds statement. •Assumptions sheet. •Pro forma income statements. •Pro forma balance sheets. •Pro forma cash flows. •Ratio analysis.
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Explanation & Answer

Attached.

Running head: BUSINESS PLAN

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Business Plan
Name
Institution
Date

BUSINESS PLAN

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The Economics of the Business

Revenue drivers and profit margins
In the business, there will be revenue drivers that the business should be aware off
to make sure that they do not cause a downfall to the venture. The first driver is
establishing the typical thing in the industry. There are also other firms dealing with the
same operations and the company has to choose on whether they have to rent the
products from someone or purchasing equipment. The other driver is the approaches the
business can use to improve the norm such as delivering the equipment which are needed
in the business (Abrams, 2003). Competition is the other driver where the business
should learn of other competitors which exist and establish how they can come up with a
competition edge. Investment is another factor where the company can consider
individuals who are willing to invest. It will help purchase more driving equipment which
can be rented and more income will be received (Huefner, 2011).
Profit drivers
The basic profit drivers for the business include: price, sales, variable costs, as
well as fixed costs. Price is the profit driver that will have the most impact of the
entrepreneur’s success (Abrams, 2003). This is because an increase in the price of the
products will directly add to the profit margin of the business.
Fixed and variable costs
The costs that will be incurred by the business can be split into two main groups:
variable costs and fixed costs. Fixed costs do not depend on the output and often remain
the same during the given time period. Fixed costs are also regarded sunk since they do
not have much influence non output decisions (Cassar, 2010). The fixed costs in the

BUSINESS PLAN

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equipment sharing business will include: buildings, rent, machinery, and other equipmen...


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