Question details

That being said, there are also many advantages to starting and owning
$ 15.00

PROJECT (FINANCE)

SUBMISSION: Please submit original writing.  No plagiarism.  Source citations with APA Format.

BACKGROUND INFORMATION

Someone hoping to open a business today doesn’t have to start from scratch. Many large

corporations have a franchising model, providing much of the infrastructure a business owner

needs to begin. Fast food restaurants, such as McDonald’s and Subway, especially take

advantage of the franchising model, in part because they have a standard product that can be

recreated anywhere in the world no matter who is running the restaurant.

That being said, there are also many advantages to starting and owning your own business.

Even though you will have less support in the beginning, there is the potential for great creativity

and financial gains.

For this project, you will decide to either own or franchise a deli and sandwich shop. Based on

the model you choose, you will then create a business plan for your business or franchise that

includes financial budgets, projections, and risk assessments.

PROJECT INSTRUCTIONS

The business plan should contain the following sections:

1. Description of the business model

In addition to describing your chosen business model, be sure to articulate the pros and cons of

both company-operated and franchise businesses and explain why you ultimately chose one

model over the other.

2. Description of financing model

In this section, show your plan for financing the operation and explain how you decided to

balance debt, equity, and any other financing options..

3. Financial projections

A good financial projection includes several scenarios forecast over several years, as well as a

worst case scenario with at least three other scenarios for modest, reasonably expected, and

excellent sales results. Five years of projections should be included for each of the four levels of

expected sales. You may wish to refer to variable costing and flexible budgeting concepts to

help prepare the forecasts. Remember that financial projections should be reasonable. Avoid

overly inflated expectations.

4. Risk assessment

Address the various types of risk your business may incur and how you will prevent or minimize

the risks. Include a description and specific example from your business of its financial risk,

interest rate risk, liquidity risk, market risk, event risk, purchasing power risk, and tax risk.

5. Return on Investment

When seeking investors, you’ll need to provide your predicted rate of return on investment.

Include several different projections for the rate of return on investment considering how it will

change based on investors’ contributions, the type of investors you’ll seek out, and your

financing model.

Research

In order to obtain the information necessary to complete this project, you will need to do

additional research into other deli and sandwich shop operations. Research other types of

shops, read newspaper and magazine articles about current business situations, and use the

materials from the course content. You should also interview managers and owners of delis, fast

food restaurants, and sandwich shops to get current actual information on operating costs such

as rent, utilities, payroll, and overhead in a specific city or region. Be sure to include a list of all

your resources, as well as contact information (business name and address, phone number,

and email address) for the people you interviewed.

 

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