short term funding 9

Purpose of Assignment

The purpose of this assignment is to allow the student an opportunity to apply their understanding of cash flow management, break-even analysis, and short-term and long-term financing in starting and growing a business.

Resources: OECD Database, Corporate Finance

(This attached documents provides corporate tax rates by country)

Clarification

For a start-up company of the student’s choice, students are creating the financials–the revenue, cost of products sold, other operating expenses, all other requested financial data. Students are to create 3-Years of Profit & Loss & Funding Data.

The OECD document provide under assignments, provides students with corporate tax rates by country. This information relates to Part II of the assignment, where students are asked to provide the tax rates for the countries in which they are expanding globally.

Students are free to reference other resources on tax rates and use that information to quote their discussion on tax rates in lieu of this document.

Assignment Steps

Prepare a 12- to 15-slide PowerPoint^® presentation with speaker notes requesting initial funding of $500,000 to start and run a start-up company. The proposed start-up company could be an existing business model (coffee shop, pet store, etc.) or could be something entirely new and exciting.

Create the presentation in the following format, with at least one slide to cover each of the following areas:

• Title Page
• Table of Contents
• Executive Summary
• Information about the Industry
• Marketing Plan
• Competitor Analysis
• 3 Year Income Statement (Profit & Loss) Projections
• Include your assumptions for why and how you will achieve your sales growth and what significant expenses and investments you expect to incur to achieve your revenue goals.
• 3 Year Proposed Funding Schedule (Sources and uses of the funds received.)
• Break-Even Analysis
• Academic and Business References

Review the following scenarios and assumption, and explain how it impacts your decision to expand:

• After Year 3, the investors are interested in your company expanding internationally to possibly outsource labor or to reduce manufacturing costs. What countries would you expand to first, and why? What factors would you need to consider in making this decision?
• What is the corporate tax rate in the countries you are considering expanding your business to, and how will that affect your decision to expand globally? (Use OECD Database or another resource to determine the corporate tax rate).
• The investors want to see a decision tree detailing the decisions you would make if you received $300K now and $200K at the end of three years instead of $500K up front.
• The investors would like your team to provide advantages and disadvantages of using debt financing versus selling company stock to raise capital for growth.
• Briefly explain the venture capital process. Does it make sense for your company to raise funds through venture capital?

Proper format of PowerPoint slides, use of bullets, notes, charts and tables for presenting financial data, white space.

Intellectual Property is recognized.