Managerial?Finance

Description
Create a business plan for owning a deli and sandwich shop franchise. Need a description of the business plan,
financial model, financial projections, risk assessment and return on investment. The project instructions and

Course Project Managerial Finance

COURSE OBJECTIVES
Upon successful completion of this course, the student will be able to:
1. Evaluate the role of financial processes in managing, planning, and decision-making within a firm
2. Create financial plans, documents, and ratios by using historical and current financial data
3. Interpret how a firm balances needs and risk when choosing how to finance its operations

BACKGROUND INFORMATION
Someone hoping to open a business today doesn t have to start from scratch. Many large corporations have a franchising model, providing much of the infrastructure a business owner needs to begin. Fast food restaurants, such as McDonald s and Subway, especially take advantage of the franchising model, in part because they have a standard product that can be recreated anywhere in the world no matter who is running the restaurant.
That being said, there are also many advantages to starting and owning your own business. Even though you will have less support in the beginning, there is the potential for great creativity and financial gains.
For this project, you will decide to either own or franchise a deli and sandwich shop. Based on the model you choose, you will then create a business plan for your business or franchise that includes financial budgets, projections, and risk assessments.

PROJECT INSTRUCTIONS
The business plan should contain the following sections:

1. Description of the business model
In addition to describing your chosen business model, be sure to articulate the pros and cons of both company-operated and franchise businesses and explain why you ultimately chose one model over the other.

2. Description of financing model
In this section, show your plan for financing the operation and explain how you decided to balance debt, equity, and any other financing options.

3. Financial projections
A good financial projection includes several scenarios forecast over several years, as well as a worst case scenario with at least three other scenarios for modest, reasonably expected, and excellent sales results. Five years of projections should be included for each of the four levels of expected sales. You may wish to refer to variable costing and flexible budgeting concepts to help prepare the forecasts. Remember that financial projections should be reasonable. Avoid overly inflated expectations.

4. Risk assessment
Address the various types of risk your business may incur and how you will prevent or minimize the risks. Include a description and specific example from your business of its financial risk, interest rate risk, liquidity risk, market risk, event risk, purchasing power risk, and tax risk.

5. Return on Investment
When seeking investors, you ll need to provide your predicted rate of return on investment. Include several different projections for the rate of return on investment considering how it will change based on investors contributions, the type of investors you ll seek out, and your financing model.

PROJECT SUBMISSION
1. A title page is not required for project submissions. Because evaluators do not see student names when reviewing student work, it is important that students do not include any personal identifiers in their project submissions.
2. The project must follow APA formatting guidelines.

Project Rubric
Company vs. Franchise = 18.0%
EVALUATION
ITEM
UNSATISFACTORY
0 – 69% 70 – 79% 80 – 89% OUTSTANDING
90 – 100% POINTS
Compare
company-operated
and franchise
businesses
Comparison of company-operated
stores and franchise businesses does
not show the advantages and
disadvantages of each method or is
not included in the submission
Comparison of companyoperated
stores and
franchise businesses
partially shows the
advantages and
disadvantages of each
method
Comparison of companyoperated
stores and
franchise businesses
accurately shows the
advantages and
disadvantages of each
method
Comparison of companyoperated
stores and franchise
businesses accurately and
thoroughly shows the
advantages and disadvantages of
each method
18
Financing Model = 18.0%
EVALUATION
ITEM
UNSATISFACTORY
0 – 69% 70 – 79% 80 – 89% OUTSTANDING
90 – 100% POINTS
Create a
financing model
Debt, equity, and franchisee financing
are not balanced or the reasoning for
the financing model is not logical or
not included
Debt, equity, and franchisee
financing are somewhat
balanced or the reasoning
for the financing model is
somewhat logical
Debt, equity, and
franchisee financing are
effectively balanced and
the reasoning for the
financing model is logical
Debt, equity, and franchisee
financing are effectively balanced
and the reasoning for the financing
model is logical and thoroughly
explained
18
Financial Projections = 18.0%
EVALUATION
ITEM
UNSATISFACTORY
0 – 69% 70 – 79% 80 – 89% OUTSTANDING
90 – 100% POINTS
Create financial
projections
Financial projections are not
accurate or do not include five
projections for the four sales
scenarios
Financial projections are partially
accurate or only include some of
the five projections for some of
the four sales scenarios: worst
case, modest, reasonably
expected, and excellent
Financial projections are
accurate and include five
projections for the four sales
scenarios: worst case,
modest, reasonably expected,
and excellent
Financial projections are accurate
and thorough and include five
projections for the four sales
scenarios: worst case, modest,
reasonably expected, and excellent
18
Risk = 18.0%
EVALUATION
ITEM
UNSATISFACTORY
0 – 69% 70 – 79% 80 – 89% OUTSTANDING
90 – 100% POINTS
Assess risk Risk assessment is not accurate or
recommendations for preventing or
minimizing risk are not reasonable
or missing
Risk assessment is somewhat
accurate and includes some
reasonable recommendations for
preventing or minimizing risk
Risk assessment is accurate
and includes reasonable
recommendations for
preventing or minimizing risk
Risk assessment is accurate,
thorough, and includes strong
recommendations for
preventing or minimizing risk
18
Rate of Return = 18.0%
EVALUATION
ITEM
UNSATISFACTORY
0 – 69% 70 – 79% 80 – 89% OUTSTANDING
90 – 100% POINTS
Quantify rate of
return on
investment
The response does not include
rate of return calculations or
calculations are both inaccurate
and not reasonable
The response includes
one rate of return
calculation but it is
either inaccurate or
not reasonable
The response includes at least one
accurate rate of return calculation
that might reasonably be expected
for potential equity investors,
franchisees, and creditors based on
the financing model
The response includes more than one
rates of return on investment that might
reasonably be expected for potential
equity investors, franchisees, and
creditors based on the financing model
18
Writing Standards = 10.0%
EVALUATION
ITEM
UNSATISFACTORY
0 – 69% 70 – 79% 80 – 89% OUTSTANDING
90 – 100% POINTS
Articulation There are multiple writing
convention errors that severely
impede comprehension of the
work
There are multiple writing
convention errors that
somewhat limit
comprehension of the work
There are some writing
convention errors, but they
do not impede
comprehension of the work
There are no detectable writing
convention errors
5
APA format and
referencing
No attempt to cite sources in
APA format is evident
The source citations have
multiple APA formatting
errors
The source citations have
some APA formatting errors
Either the source citations follow APA
formatting guidelines with no
detectable errors, or no source citation
was required for this submission
5