BUSN278 Course Project.
is an individual project where you will be acting as a consultant to an
entrepreneur who wants to start a new business.
As the consultant, you’ll create a 5 year budget that supports the
entrepreneur’s vision and strategy, as well as the needs for equipment, labor,
and other startup costs.
You can choose from one of three types of new
business startups — a landscaping company, a restaurant, or an electronics
store that sells portable computing devices.
Each business has its own Business Profile detailed in the sections
below. The purpose of the Business
Profile is to guide you in understanding the scope of the business, the
entrepreneur’s startup costs, and financial assumptions.
project requires you to create a written budget proposal, a supporting Excel
Workbook showing your calculations, and a PowerPoint presentation summarizing
the key elements of the budget proposal, which you assume will be presented to
a management team.
is an individual project. Each week you
will complete a section of the project in draft form. In Week 7, you will submit the final version
of the project’s Budget Proposal, Budget Workbook, and Budget Presentation in
Deliverables Schedule / Points
Section 1.0 Executive Summary (Draft)
Section 2.0 Sales Forecast (Draft)
Section 3.0 Capital Expenditure Budget (Draft)
Section 4.0 Investment Analysis (Draft)
Section 5.1 Pro Forma Income Statement (Draft)
Section 5.2 Pro Forma Cash Flow Statements (Draft)
Final Budget Proposal
Final Presentation w/ PowerPoint
Business Profile:Papa Geo’s– Restaurant
vision of the entrepreneur is to create a single-location, sit-down Italian
restaurant called Papa Geo’s. The goal
is to generate an income of $40,000 per year, starting sometime in the second
year of operation, as wells as profit that is at least 2% of sales.
restaurant targets middle to lower-middle class families with children, as well
as adults and seniors, located in Orlando, Florida. The area within 15 minutes of the store has
10,000 families, mostly from lower to middle class neighborhoods. Average family size is 4 people per
household. There is no direct competition;
however, there are fast food restaurants like McDonald’s, Taco Bell and Wendy’s
in the geographical target market. The
lower to middle class population is growing at about 6% per year over the next
five years in this area.
product is Italian food served buffet style, in an all-you-can-eat format, with
a salad bar, pizza, several different types of pasta with three or four types
of sauces, soup, desserts, and a self-serve soda bar. The restaurant is also to have a 500 square
foot gaming area which has game machines that children would be interested in
Basis of Competition
come to this restaurant because of the good Italian food at a low price – you
can get a meal for $7, including drinks.
Customers also eat at Papa Geo’s due to the cleanliness of the facility,
the speed of getting their seat and food, and the vending machines which keep
the children busy while adults enjoy their meal.
cost of registering a limited liability company in Florida – filing fees listed
at the bottom of the application for located at:.sunbiz.org/pdf/cr2e047.pdf”>http://form.sunbiz.org/pdf/cr2e047.pdf
of the facility expected to cost $15,000
insurance, estimated at $1,000 per year
and other benefits are 20% of the salaries of the manager and assistant manager
Costs you should estimate through
research, experience or other methods
Soda fountain bar
2 pizza ovens
Salad and pizza/dessert bar
Approximately 100 square foot commercial refrigerator
2 cash registers
6 video game vending machines
Management office with desk and
lower-priced laptop computer
Staff lunchroom equipment such as
microwave, sink, cupboards and refrigerator
20 four-seater tables with chairs
Busing cart for transporting
dirty dishes from the dining area to the dishwashing area
140 sets of dishes, including cutlery
and drinking cups
Miscellaneous cooking and food handling
equipment like trays, lifters, spoons, pots etcetera
The cost of an average of 7 employees
on the payroll.
All operating costs, such as
advertising, rent for a 3,500 square foot facility with male and female
washrooms (already installed), utilities, maintenance, and annual
you have questions about startup requirements, or think other startup costs
necessary for the business are missing, then make an assumption and state it in
the relevant section of the report.
Given Financial Assumptions*
The owner will be granted a loan
for the initial startup, repayable over 10 years at current interest rates
for small business loans.
The owner will use personal funds
to operate the business until it generates enough cash flow to fund
Essentially, all sales are made
by credit card. All credit card sales are paid to the restaurant daily by
the credit card company.
2.5% of sales is paid to the
credit card company in fees.
Food suppliers give 30 days of
Inventories are expected to be
approximately 10% of the following month’s sales.
The average meal costs $4.00 in
materials and labor.
The average family spends $4.00
on vending machine tokens.
Equipment is depreciated on a
straight-line basis over 5 years.
Managers have health benefits,
other workers do not. The company
will operate from 10:00 am to 9:00 pm, 7 days a week.
The entrepreneur will manage the
store and draw a salary.
Every shift has one person on the
cash register, one keeping the food bars stocked with food, two cooking
the food, one on busing and table cleaning, a manager, and assistant
you believe any other assumptions are necessary, please state them in your
Profile: The Cutting Edge–
vision of the entrepreneur is to create a 5-team landscaping business that
caters to upscale neighborhoods in Miami, Florida. The company is to be called “The Cutting
Edge”. The goal of the entrepreneur is
to generate income of at least $42,000 per year as his personal salary, as well
as profits of 4% after tax sometime no later than the second year of
operation. The entrepreneur intends to
buy a route of 100 homes from a lawn service company whose owner is retiring.
landscaping business targets upscale neighborhoods with home associations which
demand lawns to be manicured and well-cared for. Customers tend to be upper middle, to
upper-class individuals with household income levels of $110,000 or more. The geographic focus is Miami and its
surrounding area. The area is expected
to show slow economic growth of about 1% per year over the next five years.
product is lawn maintenance and landscaping services as well as minor
irrigation equipment repair. The
primary source of income is expected to be in the form of lawn-cutting,
debris-blowing, and edge trimming services.
However, the company will also do reseeding, landscaping and
foliage/tree planting, tree trimming, and light irrigation system repair when
necessary to keep their customer’s lawns watered and healthy.