Venture Budgeting and Forecasting Essay

946 WordsJun 22, 20124 Pages
Venture Budgeting and Forecasting Kyra M. Johnson Finance 375 Robert Sparks June 4, 2012 Venture Budgeting and Forecasting Many Americans live with self-care disabilities. The Americans who chose to remain home is increasing as the cost of assisted living facilities increases. The decision to remain in home stimulates from the increasing cost of assisted living facilities as well as the ease of remaining in a familiar environment. Though the decision brings challenges, many Americans chose to seek in-home assisted living services. As the demand for assisted living requirements increases it is evident that there is a consumer need and a business opportunity to meet the needs of those consumers, (US Census Bureau, 2006). Despite…show more content…
The agency will not need any other equipment. The manager will orchestrate marketing and advertising in-house and the cost consists of paper supplies, ink, and a mailing services and the initial cost is $5,000. The total startup cost for the agency is $8,500 and the start up cost at this time is out of pocket. The agency wants to possess at least $100,000 in working capital for any additions in employees, or for unexpected expenses. The owner understands that at startup the business will need two full-time contracts to maintain monthly expenses as well as retain reserve capital. The two contacts total an amount of $5,000 and the monthly expenses for the agency total $2,483 and as one can see, there is about a 50% profit margin at start-up. In the event the agency decides on obtaining capital by means of acquiring bank loans, private investors, angel investors, and loans from the small business administration, the organization is in position to provide evidence the agency can meet financial responsibilities. As the organization grows, the agency will have to increase employees, create assistant management positions, marketing positions as well as other support staff and at that time if the capital is not available the agency will have to find additional capital to cover expansion expenses, or the agency will find other financing options in the area of government grants, economic stimulus grants, and business expansion
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