The Business Plan Answers

Sam is planning to start a pool cleaning business from his home, but has realized that he does not have enough money in savings or credit to pay for the set-up costs and first year of operation. Which of the following would not be a good way for Sam to get the money to start his business?a.Talk to a bank about a business loan for the missing funds.b.Talk to an investor about investing their money into his business.c.Purchase a $3,000 compact car instead of a truck for his business.d.Find a business partner to share the initial expenses.

The financial analysis component of a business plan is to describe _____.a.how your business will be organized and what type of management or department structure your business will haveb.the ?big picture? behind your business, what your business has to offer the consumer, and why your business will be successfulc.the size of the market, how your business will fit into the market, and how your business will stand out from other businesses in the marketd.where the funds to start and operate your business will come from, when you expect to see profit, and how much profit you expect to see

Sam is planning to start a pool cleaning company from his home. He has decided on a radius of 30 miles from his home as a region of operation. After surveying the region of operation, he found that 43% of the homes in the region have a swimming pool. If there are 36,248 homes within a 30 mile radius of Sam’s home, approximately how many potential customers does Sam have?a.1,087b.1,559c.10,874d.15,587

Korey is planning to open a comic book store. When the store opens, he plans to be the only employee. As the business grows, he will extend his hours of operations and hire additional employees as necessary. In Korey’s business plan, this information should be included in the _____ component.a.financial analysisb.organizational planc.executive summaryd.implementation plan

Korey’s comic book store has been up and running for 4 years. Korey feels that his store has been successful and is considering moving to a larger property to allow for greater inventory and customer opportunities in his business. He would like investors to cover the cost of his expansion. The profits of Korey’s comic book store for its first four years are outlined below. According to this information, what would be the best estimate for Korey to quote as expected profits in the next year in his new business plan? Year Net Profits 1 $14,250.00 2 $15,390.00 3 $16,621.20 4 $17,950.90 5 a. $20,550.19 b. $19,090.90 c. $19,280.60 d. $19,386.97 Please select the best answer from the choices provided

Korey is planning to open a comic book store. In his first year of operation, Korey expects to average $1,000 of profit each month. He then expects profits to increase by 6% each year for the next 4 years. How much does Korey expect to make in profits in his fifth year of operation? a. $15,149.72 b. $16,058.71 c. $31,120.46 d. $32,987.69 Please select the best answer from the choices provided

Which of the following is not required by lenders and investors?a.master planb.organization planc.market analysisd.financial analysis

Sam is planning to start a pool cleaning business. He expect to make a profit of $45,000 in his first year of business, after which he expects profits to increase by 5.5% annually for the next 5 years.Sam's business will cost $49,500 to set up and run for the first year. Sam then expects an annual operational expense total of $30,500. According to Sam's model, how long will it take Sam to see an overall profit in his business (where total profits exceed total expenses)?a.Sam will see an overall profit in his first year of business.b.Sam will see an overall profit in his second year of business. c.Sam will see an overall profit in his third year of business.d.Sam will see an overall profit in his fourth year of business.

Sam is planning to start a pool cleaning business from his home. He has developed the following cost analysis for the set-up and operation for the first year of his business. He has $9,000 in savings and $23,000 in credit that he can use for the business. Will Sam be able to afford the operational costs of the first year of business on his own?ItemCostTruck$9,000Pool Cleaning Supplies$6,000Payroll$23,000Advertising$1,500a.No, Sam will be short $7,500.b.No, Sam will be short $15,500.c.Yes, Sam will have $7,500 to spare.d.Yes, Sam will have $15,500 to spare.

Korey is planning to open a comic book store. He has developed the following expense breakdown for set-up and operation for the first year. Korey has $8,500 in savings and $25,000 in inheritance money to use to open his store. If Korey doesn’t make any changes to his initial expenses, what percent of the total set-up and operation expense will have to be funded through loans or investors? ExpenseAmountRent$10,800Insurance$3,000Store Fixtures$2,700Computer and Cash Register$1,200Inventory$17,400a.4.6%b.9.5%c.45.6%d.95.4%