-
DEVELOPMENT EVALUATION
QUESTION
One of the most important steps in launching a new business venture is fashioning a well-designed, practical, realistic financial plan.” (Scarborough & Cornwall, 2015, p. 454).
With this assignment, you are creating two important elements of a financial plan: an Income Statement and Balance Sheet. You also are preparing an outline of a presentation of your business plan to potential investors or lenders.
| Subject | Business | Pages | 6 | Style | APA |
|---|
Answer
Powell’s Sports Development: Powell’s Sports Development: Pro Forma (Projected) Income Statement and Balance
Proforma Income Statement for Powell’s Sports Development
|
ITEM |
|
For year ended |
For year ended |
|
|
Dec 2020 |
Dec 2021 |
|
|
Sales |
|
3,600,000 |
4,320,000 |
|
Less cost of sales |
|
1,320,000 |
1,500,000 |
|
Gross profit |
|
2,280,000 |
2,820,000 |
|
Add other incomes |
|
20,000 |
35,000 |
|
TOTAL PROFIT |
|
2,300,000 |
2,855,000 |
|
Less Expenses |
|
||
|
Salaries |
|
732,000 |
732,000 |
|
Rent |
|
180,000 |
180,000 |
|
Electricity |
|
48,000 |
96,000 |
|
Water |
|
24,000 |
24,000 |
|
Advertising |
|
24,000 |
24,000 |
|
Stationery |
|
7,000 |
9,000 |
|
Furniture depreciation |
|
12,000 |
12,000 |
|
Computer depreciation |
|
8,000 |
8,000 |
|
Repairs and maintenance |
|
2,000 |
2,000 |
|
Total expenses |
|
(1,037,000) |
(1,087,000) |
|
Net profit before tax |
|
1,263,000 |
1,768,000 |
|
Provisions for tax |
(15,000) |
(15,000) |
|
|
Net profit after tax |
1,248,000 |
1,753,000 |
Proforma Income Statement for Powell’s Sports Development
|
As at |
|
Dec-20 |
Dec-21 |
|
FIXED ASSETS |
|
||
|
Furniture |
|
108,000 |
156,000 |
|
Computers |
|
72,000 |
84,000 |
|
CURRENT ASSETS |
|
||
|
Cash |
|
20,000 |
25,000 |
|
Bank |
|
230,000 |
300,000 |
|
Stock |
|
25,000 |
35,000 |
|
Debtors |
|
5,000 |
8,000 |
|
Prepaid Electricity |
|
4,000 |
7,500 |
|
TOTAL ASSETS |
|
464,000 |
615,500 |
|
LONG TERM LIABILITIES |
|
||
|
Capital |
|
251,000 |
502,000 |
|
Retained Earnings |
|
-24,500 |
81,000 |
|
Bank loan |
|
130,000 |
|
|
CURRENT LIABILITIES |
|
||
|
Short term loan |
|
30,000 |
|
|
Bank overdraft |
|
50,000 |
|
|
Tax payable |
|
7,500 |
7,500 |
|
Creditors |
|
20,000 |
25,000 |
|
TOTAL LIABILITIES |
|
464,000 |
615,500 |
Plan to Hire, Retain and Motivate Employees
According to Storey (2016), the success of an organization hinges highly on the quality of its employees. As a company, Powell’s Sports Development will leverage the following methods to hire, retain and motivate its employees: First, the recruitment process will be thorough that is the prospective employees will need to have both the academic and experience requirements needed for the posts advertised. Additionally, the company will offer short listed applicants various tests such as personality tests in order to determine their ability to work together and their level of alignment to the culture of the company. Secondly, the recruitment and selection process will target applicants from a wide area in order to get a large selection of employees to choose from.
To retain the employees, the company will leverage the following strategies: first, offer above market pay for the services offered by the employees. High pay will significantly reduce the company’s rate of employee turnover. According to Bratton and Gold (2017), the need for better pay tops the list of reasons given by employees for leaving their previous employer. additionally, the company will create a conductive internal environment for solving any grievances raised by the employees to prevent them from leaving the organization. The employees will be motivated through the use of various methods such as suing both financial and non-financial incentives. The company will offer the employees merit based financial bonuses. Additionally, it will leverage the use of benefits such as recognition and promotions to motivate the employees.
Business Plan Presentation Outline
- Introducing Powell’s Sports Development as a company and its products
- Introduce the company’s management team
- Explaining the company’s market and the problem it seeks to solve
- Explaining the differences in the products and services the company offers from those of competitors in the market.
- Explain the size of the company’s target market.
- Explain the company’s target customers and the growth potential for the next three to five years.
- Explain the company’s competitive advantage
- Explain the company’s marketing strategy.
- Elaborate projected revenues and profits.
- Highlighting the needed capital to start the business and highlighting the company’s major expenditure.
References
|
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave. Storey, J. (2016). Human resource management. Edward Elgar Publishing Limited. |
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