- Provide specific details and numbers as far as possible.
- All numbers, facts, and recommendations must be adequately justified with references, reasoning, and data.
- The report should not only detail what should be done but how they are actionable.
- Use the textbook when supporting some statements or as a source of reference.
1) Describe the specific details of the following steps. If some steps are unnecessary for your product or service, then justify why they are not needed (and don’t present them).
- What are some types of advertising and promotions you would use
- Describe some Prototyping efforts
- Small consumer tests
- Physical product testing such as that done externally at Underwriters Laboratories (UL) or within the company
- Create a timeline for getting your product off the ground or for expanding it. Make sure the timeline has specific milestones. Provide clear details on what steps will be taken to achieve these milestones on the timeline chart.
- Describe the types of individuals and skills needed for the enterprise to succeed over this timeline (including founders). Describe the skill sets that these individuals will need to have. In addition to describing them, summarize them on the timeline chart. Provide specific skills/experience/education.
- EXPENSES: Describe wages and benefits that will have to be provided (if founders plan to take low wages or no wages for a long time this should still be indicated). Also list expenses with as much detail as possible. List these quarterly for the first two years then annually after that, for a total of five years. Entrepreneurs sometimes do not use the same categories as accountants as they like to describe these costs by their names rather than general categories that accountants use – e.g., tables and chairs for Zurich office, car rental for salespeople, etc. Use US dollars or Euros but be consistent.
- REVENUE: Discuss and estimate sales (in words) in units and dollars for each quarter of the first two years, then annually out to the fifth year. Provide justification and source of sales revenue, e.g., ‘catering special events for 100-150 people in the Art Museum each month’. Remember to provide both the number of products/meals/events and the revenue. Use US dollars or Euros but be consistent with currency.
- NET MARGIN: Using any well-justified approach (you can use standard accounting procedures if you like, although this is optional) calculate the difference between sales revenue and expenses each quarter.
Also calculate cash on hand after borrowing from your sources, friends and family, banks, etc. To some extent cash-on-hand must be always positive, unless you have a strong credit line; otherwise the firm is in trouble. So investments are based on this requirement.
Explain why individuals or institutions will lend you the amounts needed. You can either use any available software or EXCEL to create financials. Some businesses use simple calculations (plus and minus of cash flow to get an estimate of required capital.
All the detail about our App can check on the documents!