So I need to come up with 4-6 key points for this. Budget and Finance Considerations This section will refer to the costs of the program outlined…

So I need to come up with 4-6 key points for this. Please help Business Project Plan. 4.0. Budget and Finance ConsiderationsThis section will refer to the costs of the program outlined above. It will develop specific capital investment costs (money to start the program) as well as operational budget considerations. Additionally, this can include extra income as a result of the savings that will emanate for the operations..4.1.0 Start-up CostingTable: Start-up RequirementsStart-up RequirementsCost Requirements Start-up Expenses Legal$1,500Insurance$200Rent (six months)Wages (six months)$1,000$12,000 Total Start-up Expenses$14,700 Start-up Assets Cash Required$10,000Long-term Assets$7,000Total Assets$17,000 Total Requirements$31,7004.1.2 Start-up FundingTable: Start-up Funding StructureStart-up Funding Start-up Expenses to Fund$14,700Start-up Assets to Fund$17,000Total Funding Required$31,700 Assets Non-cash Assets from Start-up$7,000Cash Requirements from Start-up$10,000Total Assets$17,000 Liabilities and Capital Liabilities Current Borrowing$0Long-term Liabilities$0Accounts Payable (Outstanding Bills)$0Other Current Liabilities (interest-free)$0Total Liabilities$0 Capital Planned Investment$31,700Additional Investment Requirement$0Total Planned Investment$31,700 Loss at Start-up (Start-up Expenses)($14,700)Total Capital$14,700 Total Capital and Liabilities$14,700 Total Funding$31,700 4.2.0 Break-even and Cash Flow Analysis4.2.1 Break-even AnalysisTable: General AssumptionsGeneral Assumptions Year 1Year 2Year 3Plan Month123Current Interest Rate12.00%12.00%12.00%Long-term Interest Rate12.00%12.00%12.00%Tax Rate35.00%35.00%35.00%Table: Break-even AnalysisBreak-even Analysis Monthly Revenue Breakeven$3,500 Assumptions: Average Percent Variable Cost10%Estimated Monthly Fixed Cost$3,150 4.2.2 Projected Profit and LossTable: Profit and LossPro Forma Profit and Loss Year 1Year 2Year 3Sales$70,000$110,000$120,000Direct Cost of Sales$7,000$11,000$12,000Other Costs of Sales$0$0$0Total Cost of Sales$7,000$11,000$12,000 Gross Margin$63,000$99,000$108,000Gross Margin %90.00%90.00%90.00% Expenses Payroll$24,000$24,000$24,000Sales and Marketing and Other Expenses$1,000$1,200$700Depreciation$1,000$1,000$1,000Rent$2,000$2,000$2,000Utilities$0$0$0Insurance$200$200$200Payroll Taxes$3,600$3,600$3,600Other$0$0$0 Total Operating Expenses$31,800$32,000$31,500 Profit Before Interest and Taxes$31,200$67,000$76,500EBITDA$32,200$68,000$77,500 Interest Expense$0$0$0 Taxes Incurred$10,920$23,450$26,775 Net Profit$20,280$43,550$49,725Net Profit/Sales28.97%39.59%41.44%4.2.3 Cash FlowPro Forma Cash Flow Year 1Year 2Year 3Cash Received Cash from Operations Cash Sales$70,000$110,000$120,000Subtotal Cash from Operations$70,000$110,000$120,000 Additional Cash Received Sales Tax, VAT, HST/GST Received$0$0$0New Current Borrowing$0$0$0New Other Liabilities (interest-free)$0$0$0New Long-term Liabilities$0$0$0Sales of Other Current Assets$0$0$0Sales of Long-term Assets$0$0$0New Investment Received$0$0$0Subtotal Cash Received$70,000$110,000$120,000 ExpendituresYear 1Year 2Year 3 Expenditures from Operations Cash Spending$24,000$24,000$24,000Bill Payments$3,000$3,000$3,000Subtotal Spent on Operations$27,000$27,000$27,000 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out$0$0$0Principal Repayment of Current Borrowing$0$0$0Other Liabilities Principal Repayment$0$0$0Long-term Liabilities Principal Repayment$0$0$0Purchase Other Current Assets$0$0$0Purchase Long-term Assets$0$0$0Dividends$0$0$0Subtotal Cash Spent$27,000$27,000$27,000 Net Cash Flow$43,000$83,000$93,000Cash Balance$22,720$39,450$43,2754.2.4 Projected Balance SheetTable: Balance SheetPro Forma Balance Sheet Year 1Year 2Year 3Assets Current Assets Cash$22,720$39,450$43,275Other Current Assets$0$0$0Total Current Assets$22,720$39,450$43,275 Long-term Assets Long-term Assets$7,000$7,000$7,000Accumulated Depreciation$1,000$2,000$3,000Total Long-term Assets$6,000$5,000$4,000Total Assets$28,720$44,450$47,275 Liabilities and CapitalYear 1Year 2Year 3 Current Liabilities Accounts Payable$1,700$1,900$1,900Current Borrowing$0$0$0Other Current Liabilities$0$0$0Subtotal Current Liabilities$1,700$1,900$1,900 Long-term Liabilities$0$0$0Total Liabilities$1,700$1,900$1,900 Paid-in Capital$31,700$31,700$31,700Retained Earnings($20,000)($40,000)($55,000)Earnings$20,280$43,550$49,725Total Capital$31,980$35,250$26,425Total Liabilities and Capital$33,680$37,150$28,325 Net Worth($4,960)$7,300$18,9504.2.4 Cost-benefit analysis year 1CostsCategoryDetailsCost in First YearLeaseShop room$2,000LaborSalary, including benefitsRecruitment costsOrientation and training$24,000$250$500FurnitureFurniture and hardware $7,000 Legal RequirementsLicensing and PermitInsurance$1,500$400Total$35,650BenefitsBenefitBenefit Within12 Months64 percent revenue increase$20,260Paying in-house chef $6.25 an hour, versus $15 an hour outsourcing (200 hours per month, on average: savings equals $1,750 a month)$21,000In-house baking of cakes saves on average ($ 1 per packet, by 2,000 packets in a month)$24,000Improved customer service and retention as a result of in-house quality maintenance$3,600Total$68,860Calculate the payback time as shown below:$35,650 / $68,860 = 0.52 of a year, which is approximately 6.2 months.

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