Entrepreneurial Finance Assessment
An Enterprise and Innovation Institution (EII) has up to £300,000 available to promote the growth of local businesses and employment in its local area.
A. You are required to identify a new start-up business and seek funding from the EII for one of the following:
1) Setting up a small hotel/guesthouse,
2) Opening a new gym
3) Establishing a management or technical consultancy business
4) Any other idea you may have to start-up a business (to be agreed)
And write a report to the potential Investor :
(Indicative word length, 3000 words)
You are required to specifically and succinctly identify the following:
• State your business’s Unique Selling Point,
• Undertake an environmental analysis stating clearly the industry sector, any Industry characteristics? (Maturity, regulations), Industry in numbers? (growth rate, margins)
• Undertake a Competitive Analysis including a SWOT,
• Key success factors in industry
(20 marks)
B. Prepare a 3-year financial forecast
Construct a pro-forma Income statement, balance sheet and cash flow statement over a period of three years. (You may wish to provide additional information such as a quarterly forecast, for example, if you expect seasonal fluctuations in sales.)
Clearly state and discuss what type of performance ratios would be important to your business. Show your business ratios versus other comparable (if any) organisation are performing.
(40 marks)
C. State clearly the amount of finance you need to borrow for the business Show clearly appropriate sources of funding (potential for multiple sources).
(10 marks)
D. Presenting the business plan- The PITCH
Prepare a poster outlining your start-up idea to a potential investor/lender and persuade them to see you again to find out more. This will require you to know exactly what is unique about your product or service and what the investor/lender is interested
in.
(20 marks)
E. Personal Reflection
Reflecting on your overall learning experience briefly discuss what you have gained from undertaking this module including the various tasks within this assignment. You should include a reflection of your lectures/seminars/workshops and own time, in shaping your learning environment (max 2 A4 pages). Likewise include what you
would do differently now knowing what you do.
(10 marks)
Total (100 marks)
Assessment Criteria:
Mark 70%+ – Excellent standard, demonstrating a thorough understanding of theoretical and practical issues with good evidence of research, good analytical skills showing insight. Evidence to show planning, logical sequence, clear writing style, and complete & accurate referencing.
Mark 40%+ – Good comprehensive answer demonstrating a sound knowledge of theoretical and practical issues. Evidence of research, and demonstration of, analytical skills. Good presentation, with adequate referencing.
Description
You have £300k to start a business. The financial forecasts and statements are very important. They do not need to be accurate and can be made up. Preferably the business should be a gym
