Write a 700- to 1,050-word financial plan based on your potential (or current) business from week one in which you complete the following:
Discuss potential cash budget benefits and pitfalls for the business, including how the budget supports the strategic goal of the business to increase revenue by 10% annually.
Outline your expected business expenses (e.g. fixed and variable costs, marketing, labor, operations, insurance) and sources of revenue (e.g. funding, sales of products/services).
Include an income statement, balance sheet, and cash flow statement.
Explain how you will adjust your small business cash budget to manage contingencies (such as emergencies and market shifts) as well as product and distribution shifts.
Compare the differences between a cash budget and an operating budget, and explain why both are beneficial.
Explain why a budget variance analysis is crucial for the operation of a business, and discuss how often a budget variance analysis should be performed.
Summarize your findings/recommendations.
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