Highlights
Assessment Task
You are required to produce a costed business plan for a new business launch. The6. Key performance indicators (KPIs) to monitor progress towards business goals.
Recommendations based on the results of your analysis above.
It is important that you do some research before identifying and quantifying sales and cost volumes; this could be based upon internet based research or your own knowledge of a particular business sector. It is likely that you might have to make some assumptions with regard to some of the revenue and cost items and these should be clearly explained in your pla plan can, within reason, be based upon any area of business activity.
The business plan must contain the following key elements:
1. A summary of the business idea, an analysis of the risks that the business will face and the source(s) of initial funding for the business.
2. An outline and discussion of the key fixed and variable costs.
3. A budgeted profit forecast for the first year of operation.
4. A budgeted cash flow for the first year of operation.
5. Calculation of the breakeven point and margin of safety
Assessment criteria
1. Clear and succinct summary of the business idea.
2. Outline and discussion of the main fixed and variable costs.
3. A clearly presented and reasoned profit forecast and cash flow.
4. A clearly presented breakeven point and margin of safety calculation.
5. Clearly presented Key performance measures.
6. Clearly presented recommendations.
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