BUSN278 DeVry University Capital Expenditure Budget Presentation

As the consultant, you’ll create a 5 year budget that supports the entrepreneur’s vision and strategy and needs for equipment labor and other startup costs.You can choose from one of three types of new business startups — a landscaping company, a restaurant, or an electronics store that sells portable computing devices.Each business has its own Business Profile detailed in the below sections.The purpose of the Business Profile is to guide you in understanding the scope of the business, the entrepreneur’s startup costs, and financial assumptions. The project requires you to create a written budget proposal, a supporting Excel Workbook showing your calculations, as well as a PowerPoint presentation summarizing the key elements of the budget proposal, which you assume will be presented to a management team.At least one authoritative, outside reference is required (anonymous authors are not acceptable). These should be listed on the last page (titled Works Cited).

Appropriate citations are required.

Essentially, all sales are made by credit card. All credit card sales are a paid to the

restaurant daily by the credit card company

2.5% of sales is paid to a credit card company in fees

Food suppliers give 30 days of trade credit

Inventories are expected to be approximately 10% of the following month’s sales

The average meal costs $4.00 in materials and labor.

The average family spends $4.00 on vending machine tokens

Equipment is depreciated on a straight-line basis over 5 years

Managers have health benefits, other workers do not.

The company will operate from 10:00 am to 9 pm,7 days a week.

The entrepreneur will manage the store and draw a salary.

Every shift has one person on the cash register, one keeping the food bars

stocked with food, and one on busing and table cleaning, a manager and

assistant manager.

*If you believe any other assumptions are necessary, then please state them in your

budget proposal

Costs you should estimate through research, experience or other methods

Soda Fountain Bar

2 Pizza Ovens

Salad and Pizza/Dessert Bar

Approximately 100 square foot commercial refrigerator

2 cash registers

6 Video Game vending machines

Average of 6 staff members at any given time

Management Office with desk, lower-priced laptop computer

Staff lunchroom equipment such as microwave, sink, cupboards and refrigerator

20 four-seater tables with chairs

Busing cart for transporting dirty dishes from the dining area to the dish washing

area

140 sets of dishes, cutlery and drinking cups

Commercial Dishwasher

Miscellaneous cooking and food handling equipment like trays, lifters, spoons,

pots; etc.

The cost of an average of 7 employees on the payroll.

All operating costs, such as advertising, rent for a 3500 square foot facility with

male and female washrooms, already installed, utilities, maintenance, and

annual depreciation.

*if you have questions about startup requirements, or think other startup costs are

necessary for the business are missing, then make an assumption and state it in the

relevant section of the report.

Given Financial Assumptions*

The owner will be granted a loan for the initial startup, repayable over 10 years

at current interest rates for small business loans

The owner will use personal funds to operate the business until it generates

enough cash flow to fund itself.

Section 1 Business Description/Objectives Summary (Executive Summary)

Section 2 Sales Forecast

Section 3 Capital Expenditure Budget

Section 4 Investment Analysis

Section 5 Pro Forma Income Statement

Section 6 Pro Forma Balance Sheet

Section 7 Pro Forma Cash Budget

Section 8 Final Budget Proposal Template and Budget Proposal Workbook

Using a presentation tool such as PowerPoint (with narration), create a presentation directed to the management team for your start-up business that will outline your proposal, summarize the key points and defend your budget.

 

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