Objectives
• Identify sources of potential cost overruns
• Identify potential methods of growth for the venture
Description
Every new venture encounters unforeseen events, obstacles, and costs that must be overcome. As the business begins to establish itself, it is tempting to increase spending at a rate faster than the business plan has foreseen. It is critical that the entrepreneur have a process in place to control ballooning costs.
Instructions
1. Read: Start Up Donut. (n.d.). Controlling costs – Checklist. http://www.startupdonut.co.uk/financing-a-business/cash-flow/controlling-costs-checklist
2. Prepare a checklist of your own business methods for controlling costs, followed by a description of the methods you will use. Your resulting paper should be 3-4 double-spaced pages in length, not including a title page or references..
3. Review the rubric for this assignment.
Evaluation
Controlling Costs and Expenses will be marked in its entirety out of 100. The following rubric indicates the criteria students are to adhere to, and their relative weights to the assignment overall.
Activity/Competencies Demonstrated % of Final Grade
Content: Students are expected to demonstrate competency in regards to critical thinking, communication (spelling and grammar), and APA formatting in their response to the following learning outcomes.
a. Identify and describe opportunities and strategies for growth. /20
b. List the challenges associated with each opportunity for growth. /15
c. Describe the sources of potential cost overruns in your current plan and as the organization grows /25
d. Create strategies for controlling each potential cost overrun. /20
e. Demonstrate good organization, including a strong introduction and conclusion /20
Total /100
