Business project Assignment Help

Stage Deliverable Week Due Grading
Stage 1 Industry Analysis, Market Analysis, Sales Forecast 6 10%; Stage one Rubric
Stage 2 Build Master Budget to Cash Budget 9 15%; Stage two Rubric
Stage 3 Comprehensive Budget Project including Financial Statements 12 5%; Stage three Rubric

 

The objective of the Budget Project is to build a comprehensive budget report from the ground up. Assume the audience for this report is a banker or investor group looking to provide you financing.

You are required to submit a Budget Charter by week three. This Charter will indicate your group members, how you intend to work together and resolve issues and it will serve as your project plan.

 

Note – this is a group project with a maximum of 4 individuals per group.

 

You are required to prepare a Master Budget for a start-up business, specifically a Music Store with both products and service(s). For example, and I offer this as it is unlikely you will use it – piano store offering products (electronic, grand, and upright pianos) and services (lessons and tuning). This is a brand new, bricks and mortar business. You are welcome to be creative in terms of theme, niche, products, and services. You can further develop your business idea to be as unique or standard as meets the needs of your target market. Requirements:

  1. Must sell a minimum 3 unique products and must have inventory (watch the “Sales Forecast Product Categories” video to further understand how to expand your offerings and not the work!)
  2. Must have a minimum of one service.
  3. Must have a physical location, kiosks are not allowed.
  4. Must obtain a business loan from the bank.
  5. No Franchises
  6. You must have at least one employee other than your group members.

 

Businesses must be located in Richmond, Surrey, or Langley.

There are three stages to the budget project:

Stage One – Summary: Industry Analysis, Market Analysis and Sales Forecast

Every group must submit a written report, with supporting Excel files, on the business products and/services, industry analysis, customer market research and data analysis, competitive analysis, the location of their proposed business, and an annual sales forecast for stage one. The Stage One written report is due at the beginning of class in Week 6. It is recommended that each group should meet with the instructor at some point prior to week 5 to ensure their project is on track.

Every student must contribute and the marks on this section may vary by student. Peer evaluations will be completed after each stage to ensure students are engaged and contributing fully to the group.

Stage One is worth 10% of the 30% budget report (this section provides an integral foundation to the comprehensive report – so this section is very important!). A summarized rubric is shown in Exhibit A.

Stage Two–Summary:Building a Master Budget to the Cash Budget for a Merchandiser–Your Music Store

Every group must submit a written report, with supporting Excel sheets, of their Master Budget, which is due by the beginning of class in Week 9. You will have the opportunity to integrate corrections and feedback from Stage One.

This section will include necessary schedules to build your Cash Budget and a detailed discussion. This includes the following schedules: a schedule of Cost of Goods Sold; Capital Budget; One-time Costs; Labour and Benefit Costs; Selling and Administrative Costs; Loans, Other. You will also be required to provide a detailed discussion and evidence to support the costs included in your budgets.

Every student must contribute and the marks on this section may vary by student. Peer evaluations will be completed after each stage to ensure students are engaged and contributing fully to the group.

Stage Two is worth 15% of the 30% budget report (given the volume of work and the number of marks, this section is very important!). A summarized rubric is shown in Exhibit B.

Stage Three – Summary: The Comprehensive Report including Traditional Financial Statements, Contribution Format Statement and Threat Analysis.

Every group must submit a comprehensive written report, with supporting Excel sheets, of their Comprehensive Master Budget, which is due by the beginning of class in Week 12. You will have the opportunity to integrate corrections and feedback from Stage Two.

You need to provide a class balance sheet and a contribution format income statement. You will identify potential business risks and provide a SMART contingency plan.

Every student must contribute and the marks on this section may vary by student. Peer evaluations will be completed after each stage to ensure students are engaged and contributing fully to the group.

Stage Three is worth 5% of the 30% budget report (here’s your chance to pull it all together!) A summarized rubric is shown in Exhibit C.

 

ASSIGNMENT STANDARDS

Assignments will be evaluated as if you are presenting in a professional situation to either a bank or investor. Generally, assignments will be graded using the following criteria:

  • quality of research and analysis
  • application of budgeting concepts
  • application of business concepts
  • demonstrating links between each of the report components
  • the ability to link research to form an educated and in-depth business plan
  • adherence to the requirements as per the rubrics below

** Note ** ENTR 3120 is a third-year course, therefore, a high standard of presentation, grammar, spelling, and syntax is expected in all work. Up to 20% of your grade may be deducted from your report should it have poor grammar or lacks professionalism. If an assignment is extremely poorly written, or inadequately edited, the instructor may simply reject the assignment, and no marks will be awarded.

Stage One – Industry Analysis, Market Analysis and Sales Forecast

Requirements:

  1. A Title page, detailed table of contents and an introduction
  • Introduction should highlight the scope of the report (Not an introduction to the business)
  1. An industry analysis, a business description, segment and target market analysis, competitive analysis, business location, and sales forecast which includes detailed information on:
  • the industry in which you plan to compete. A broad overview of this industry (Ideally your research is West Coast Canada based; however, secondary research from the US, particularly West Coast US, is acceptable). Identify the size of the market, current trends, other details to help the reader deeply understand your business including the forces that shape competition in your industry.
  • a description of the business (including business formation i.e. partners/incorporated)
  • the products to be sold and services to be provided.
  • business value proposition (see chapter 1). Your business mission and vision
  • who your customers will be? This will require you to determine:
    • a segmentation of markets
    • your target market
    • a detailed analysis of these segments, volumes, and anticipated numbers
    • the specific location of the business and the reasons for the choice of location and how it links to industry information and your target
    • a detailed competitive analysis.
  • In-depth knowledge of your direct and indirect competitors (location, products, prices, popularity, strengths/weaknesses). How are you positioned in comparison to the competition?
  • a monthly sales forecast on one page (to be provided in an appendix) for the first twelve months of the company. This should be linked to the above market analysis, competitor analysis and industry analysis. Provided in an Excel file. Your report will include a detailed writeup on the rational and details to build this forecast. The forecast should take into account:
    • the volume (number of units sold) and dollar value of sales monthly
    • the volume (number of units sold) and dollar value in total for the year
    • Your rational for the numbers – link together your secondary research to make an educated forecast of sales
    • any primary research you have pulled together (this should NOT be the main means to get your forecast. I do not want to see ‘Manager from company XYZ told me I would sell $’. Use this information to complement your research)
    • a discussion of seasonality and sales mix
    • an explanation for growth factors
    • your ability to attract customers as a start-up and any upfront marketing campaigns
  • A description of any upfront marketing costs with justification. Remember, when launching a business, you typically want to create ‘buzz’ around your product with an event or promotion.

Below is a list of recommended research sites. This is not a comprehensive list, just a starting point:

  • IBIS World – Canada Market Research
  • Statistics Canada
  • Government of Canada (you will find information on industry stats and averages, grants, depreciable property, information for small business, many other resources)
  • Onestop BC Business Registry and/or Small business BC
  • Simply Analytics (or equivalent)
  • Prizm5 (or equivalent)
  • City of Surrey or Langley (various departments)
  • Trade magazine articles, journals that provide relevant industry information
  • Revenue Canada, Worksafe.
  • Spacelist or other location site
  • Labour resources, skills and pricing
  • Sites that evidence purchases/costs (provide pictures for major items). Provide citations for your costs. Note: pictures help the reader understand your business better.
  • Payroll basics https://www.youtube.com/watch?v=sEv_-BX7C98
    • You need to understand what employees actually cost!
  • WATCH THE INSTRUCTOR VIDEOS – these were created to help you and provide project clarity. Remember this project is based on a Merchandising company and NOT a Manufacturer – you must understand the difference as both are represented in Chapter 9.

*Note – this project requires significant primary and secondary research. The above list is a helpful starting point to identify secondary sources that will provide statistics to build the foundation of your budget project.

GUIDELINES FOR SUBMISSION OF STAGE ONE REPORT – due start of class week 6

  1. Upload to Moodle your report in PDF format. Upload supporting Excel sheet(s).
    • Format title should be GROUPNAME-Summer 2021-Stage 1 Budget Project (elect one person to use their last name)
    • One submission per group
  2. The written report must have a title page, showing student names, student numbers and business name.
  3. APA style bibliography required (https://libguides.kpu.ca/apa)
  4. Your report should not exceed 7 pages excluding title page, table of contents and appendices. Please use 1.15 to 1.5 spacing and font no smaller than 11pt.

Stage Two Budget Project – Building a Master Budget to the Cash Budget for a Merchandiser–Music Store

Required:

  1. Stage One Feedback – a written summary outlining the Stage One changes made based on Instructor’s feedback and additional learnings. Include your modified Stage One written and Excel report as the starting point of your Stage Two submission. Your stage two submission should be a seamlessly integrated report that includes your modified Stage One content.
  2. Start-Up Business Activities
  • a detailed description of activities to be undertaken before the business starts
  • identification of key personnel and both the general and specific skills they require for the business to be successful
  • details of how much financing and how you are able to secure it; you can also use your personal savings (up to $10,000 for your whole group – not per person), if any will be used in the business. What rate of interest are you likely to secure? Research.
  1. A properly formatted master budget for the first year of operations – prepared in Excel and added to Budget report as appendices- including:

  • Updated projected sales budget (and cash collections budget, if different than sales budget), cost of goods sold, inventory and purchases schedules
  • projected monthly Capital Expenditures budget for the year (include a depreciation schedule)
  • projected one-time costs not included in your Capital budget (one off costs that result from this being a startup business).
  • projected monthly Labour Expenditures budget for the year. Benefits should be included but detailed separately.
  • projected monthly Sales and Administration Expenditures (Operations) budget for the year
  • projected monthly Cash Budgets, including money borrowed and/or repaid; projected Cash Budget for the year ended (need to show both monthly and annual Cash Budgets on one page)
  • Supporting schedules with additional details as required (such as a loan schedule).
  1. Detailed information and evidence used to build the master budget: (supported with appropriate research).
  • Provide the reader a written explanation of costs and WHY these particular costs are being incurred. For example, for labour costs, instead of stating that you “have labour costs of $x”, you will need to explain the cost figure by justifying the number of staff, the wage/salary rates, hours worked, benefits to be received, etc. These figures should be competitive for the position and skills required as evidenced by research. Specific areas that will need this justification are as follows:
    • How are cost of goods sold, purchases, and inventory determined? It may be helpful to consider now the difference between cash flow and what will appear as an expense in stage three.
    • A detailed description and justification of your capital expenditures. Why are you buying that equipment and what is your evidence for the cost incurred? What is the useful life of the capital expenditures and the associated depreciation?
    • A detailed description and justification of your one-time startup costs not included in your Capital budget or Operating budget.
    • A detailed description and justification of monthly Labour Expenditures budget (this includes benefits)
    • A detailed description and justification of your operating (Sales and Admin) expenses and purchases.
  • A detailed description of your Cash Budgets, including money borrowed and/or prepaid; projected Cash Budget for the year ended.
  • Supporting schedules with additional details as required (such as loan schedule).

GUIDELINES FOR SUBMISSION OF STAGE TWO REPORT – due start of class week 9

  1. Upload to Moodle your report in PDF format. Upload supporting Excel sheet(s). Note, your upload should be a cumulative stage one and stage two report including written and excel components.
    • Format title should be GROUPNAME-Summer 2021-STAGE TWO Budget Project
    • One submission per group
  1. The cumulative stage one and two written report must have a title page, showing student names, student numbers and business name.
  2. Remember to update your table of contents to include stage two items.
  3. APA style bibliography required.
  4. Your report should not exceed 7 (from stage one) + 14 (from stage two) =21 pages excluding title page, table of contents and appendices. Please use 1.15 to 1.5 spacing and font no smaller than 11pt.

Stage Three Budget Project – The Comprehensive Report including Traditional Balance Sheet, Contribution Format Income Statement and Threat Analysis.

Required:

  1. An Executive Summary for the entire project and a Table of Contents.
  2. A written summary of Stage Two corrections highlighting improvements based on instructor feedback and additional learnings. This should be integrated with the stage 3 report. Include your modified Stage Two written and Excel modifications as the starting point of your Stage Three submission. Your stage three submission should be a seamlessly integrated report that includes all sections of the budget project.
  3. Properly formatted financial statements for the first year of operations – prepared in Excel and added to the Budget report as appendices. Detailed discussion of your statements. This section should include:
  • projected monthly contribution format Income Statement shown on one page (including a total column for the year)
    • Include a detailed discussion of how the income statement differs from the cash budget provided in Stage two. Discuss any significant numbers in the income statement.
  • projected contribution format Income Statement for the year ended on one page
  • projected Classified Balance Sheet at the end of the year on one page
    • a detailed discussion of this statement is required. For example, for wage costs, do not just state that “wages payable is $X”. You must outline why there is a wages payable balance and why it is at that certain balance.
  • Be warned, the discussion is critical for the reader to understand how and why the numbers exist – be clear and specific. Simply including a balance sheet without detailed discussion will result in a material loss of marks.
  1. Major external threats to your business (these are EXTERNAL to the business and are not within your control – for example, Covid was an external threat).
    1. You will need to identify three external threats that may affect your business. You cannot choose Covid, competition moving in, or the economy. Explain in detail the potential impact this threat may have on your business.
    2. Create a detailed contingency plan for your business based on ONE identified threat in order to reduce the negative impact on profits; your plan should be specific, realistic and detailed. Think SMART (Specific, measurable, attainable, relevant and time based).
  1. Summary of the Report
  • The summary of your report should highlight the key aspects of your ‘business pitch’ that would convince a creditor to finance your business. This should be concise and convincing.

GUIDELINES FOR SUBMISSION OF STAGE THREE REPORT – due start of class week 12

  1. Upload to Moodle your report in PDF format. Upload supporting Excel sheet(s) Note, your upload should be a seamlessly integrated stage one (modified), stage two (modified), and stage three report including written and excel components.
    • Format title should be GROUPNAME-Summer 2021-STAGE THREE Budget Project
    • One submission per group.
  1. A cumulative stage one/two and three written report must have a title page, showing student names, student numbers and business name.
  2. Updated table of contents to reflect new additions in Stage three
  3. Executive summary for entire report and a report end summary
  4. APA style bibliography required.
  5. Your report should not exceed 21 (previous stage) + 5 for stage three = 26 pages excluding title page, table of contents and appendices. Please use 1.15 to 1.5 spacing and font no smaller than 11pt.

This must be your original work, cases from the internet will not be marked. Assignments will be checked carefully for plagiarism, and ALL involved students will be equally responsible for plagiarism consequences.

 

 

 

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