Signature Assignment: Financial Plan

Assignment Content

Prepare a financial plan for a theoretical organization that you select for your business plan.

Describe the organization, including the type of business.

Create the business case.

Determine why funding is needed for the company.

Determine the sources of funding. Consider self-funding, borrowing, loans, equity, venture capital, etc.

Evaluate the requirements of each of the funding sources that you plan to use.

Analyze the risks that are associated with each funding source.

Decide which sources are the best fit for your company based on the requirements of each. Justify your decision.

Estimate the cost of capital for both short-term and long-term funding sources. Research current estimated APRs for your selected sources of funding. Create a table or chart to display this information.

Estimate direct costs, including capital, marketing, labor, equipment, and inventory/supply costs.

Prepare a budget that includes starting balances, monthly costs, loan/investment payments, cash flow projections, and required revenue.

Create a profit-and-loss statement for a 3-year period. Provide a revenue forecast, stating realistic assumptions, such as growth per year, in your projections.

Cite references to support your assignment.

Format your citations according to APA guidelines.


Signature Assignment: Financial Plan

A financial plan can be termed as documented current and future monetary goals and also how these goals will be achieved in the long run. All sound and going-concern businesses need to plan for the future especially investments that would capital intensive (Grozdanovska, Bojkovska & Jankulovski, 2017). However, before such plans can be made, there must be justification of why the business should undertake the project, and how the project will help the organization grow and it should also be financially feasible with good returns (Berawi et. al, 2018). The organization in question is Magical Enterprises which is a soft drinks company. It was incorporated in the United States and has its headquarters in Alaska. They have operations in almost all major states of United States.

In the past three years, they have seen their brand make a huge improvement in their annual sales with an increase of around 35% each year. This could be attributed to the new marketing strategy that was facilitated by the appointment of a new chief marketing officer. This would also mean that customers appreciate the product and they continue to prefer the product to other similar products in the market. The company has now sort to take steps to go global and expand its business to Asia, where they believe there is an untapped market with great potential. The marketing officer claims that with the recent growth of business revenues, it is a great opportunity to expand to greener regions that will guarantee more revenue for the company. The revenue in the United States, will help partly cover for running expenses for the new company before they get on their feet and be sustainable (Nekhaychuk et. al, 2019). However, there will be need to source for financing since the initial costs for setting up business and acquiring permits to operate, are quite high. The management has asked for further details of how the project will be funded and the future projections in revenues.


Berawi, M. A., Susantono, B., Miraj, P., & Nurmadinah, F. (2018). Prioritizing airport development plan to optimize financial feasibility. Aviation22(3), 115-128.

Grozdanovska, V., Bojkovska, K., & Jankulovski, N. (2017). Financial management and financial planning in the organizations. FINANCIAL MANAGEMENT9(2).

Nekhaychuk, D., Nogas, I., Nekhaychuk, E., & Dzhelilov, A. (2019). The financial planning and its tasks in modern models of enterprise management. In Volgograd State University International Scientific Conference” Competitive, Sustainable and Safe Development of the Regional Economy”(CSSDRE 2019) (pp. 38-41). Atlantis Press.