Executive Summary Business Plan

Below is my theoretical scenario You have had a great idea for a new manufacturing business and you now need to develop a business plan and raise funding. With help from your family, you have raised £50,000 in start-up capital. However, you believe that you may need to raise more funds from a Venture Capital organisation. You decide to prepare an Executive Summary detailing the business plan. This includes a forecast cash flow for the first 12 months of operation together with a forecast P&L and a balance sheet at the end of the first year’s trading. The layout of the executive summary: - write a narrative in Word describing your business idea (Max 500 words). You can insert an image if you think this will improve the Executive summary. - Explain the market opportunity. For example, have you found a way to compete on cost ? Have you identified a new market ? etc etc.... (Max 500 words). Assume that the product has been designed, that premises have been obtained and that recruitment is complete. Assume you will need to purchase stock one month prior to the following month’s invoiced shipments (sales). You need to decide: 1. What is the cost of essential machinery and what payment terms can you negotiate. 2. What is your policy on depreciating this asset. 3. What level of sales will you achieve in 1 year and how will they occur monthly during the year. 4. What payment terms will you offer to your customers. 5. What is your unit selling price and what is your mark up on materials cost (and your materials gross margin). 6. What will be the cost of direct labour and your overall gross margin. 7. What will be the cost of overheads (provide brief detail of the various anticipated costs). 8. What payment terms will you agree with your materials supplier. Assume you will need to purchase stock one month prior to the following month’s invoiced shipments (sales). You then need to prepare an Excel spreadsheet showing: a) A monthly cash-flow forecast b) A forecast profit and loss account for 12 months. c) A forecast balance sheet at the end of year 1 Please ensure that your spreadsheet is legible and printable on A4 page(s) You arrange a meeting with a Venture Capital organisation. How much funding will you ask for? Explain your answer (100 words Max).