Student`s

CashFlow Assumptions

  • All the prices are assumed to be constant that is changes in price will be affected with changes in inflation.

  • Costs have been projected to be constant except for those which vary with sales.

  • It is assumed that the revenues will increase by 20% every year for the 1st 3years

  • Rent expense is assumed to be fixed for the 1st year of operation

  • Advertising expense will increase by 4% yearly.

FinancingStrategies:

Question

Thereare various method of raising capital or cash flows to start abusiness. They strategies which can be used include debt and equitysources, fan-based finding such as donations, pre-sales, membershipetc. and also grants and personal savings.

Q1

Themain source of cash flow to start the business is from personalsaving. The finances can be sourced from individual savings account,borrowing from friends and relatives, proceeds from sale of privateassets, salaries and wages, money from charity.

Q2

Thereis need for intensive marketing to create awareness of the business.The main sources of revenue should come from the meals by creating adoor to door service delivery, sale of packed meals, crating offersto attract customers though making more sales. Meals are easily soldsince they are consumed by all.

References

BusinessPlan Prepared by: Howard Cole &ampOlabayo [email protected] ~ (510) 773-0354