Reference no: EM131037138

This assignment relates to the development of a business plan for a new business within the Fashion Industry. A business plan is very important to the development of any business or entrepreneurial opportunity. Your plan should cover all the major decision areas but the emphasis will be on the financial projections.

You are planning to set up your own small business but you only have £50,000 in cash to use as start-up capital. You will need to prepare a business plan in order to raise the additional finance that will be required to meet your budgeted operations. You may assume that you can borrow what you need from your bank at a given rate of interest.

Part of your business plan involves financial projections which will require you to draw up some12-monthly budgetsover a two year period to underpin your proposed business activity and to persuade your bank manager to lend you the required funds.

The report should contain appropriate analysis, arguments and conclusions and should have a length of 3,000 words excluding appendices graphs, data charts:

In your report you need to address the following issues:

1. Abbreviated executive summary

2. Value proposition

3. Market analysis

4. Industry analysis

5. Development strategy

6. Financial projections

The financial projections should be for the first two years and cover the following areas:

i. Table of Assumptions
ii. Capital Expenditure (Fixed Assets) Budget
iii. Sales Budget
iv. Production Budget
v. Labour Budget
vi. Purchases Budget
vii. Cash Budget
viii. Budgeted Income Statement (Profit & Loss Account )
ix. Budgeted Balance Sheet
x. Break-Even calculations
xi. Margin of Safety calculations
xii. Appropriate ratio analysis and comparison.