The Financial Forecast of a Start-Up Business Within the Sports Industry
Author: Raphael Städtler
Publisher: GRIN Verlag
Published: 2011-10
Total Pages: 61
ISBN-13: 3640905075
DOWNLOAD EBOOKSeminar paper from the year 2010 in the subject Business economics - Investment and Finance, grade: 1.0, language: English, abstract: The sportswear industry is a competitive market with many established brands competing for global market share. Recently a new venture called Kings Sports ltd. was formed. The USP of the company is to offer a fully customisable rugby kit to their customers and entering a niche market by focusing especially on university, small and low division rugby clubs. The decision to enter this niche market was made due to high entry barriers within the general sportswear market from established companies. With Nike, Adidas and Puma ranked, 26, 62 and 97 respectively as the top 100 global brands, new entrants will be forced to place a high level of investment into the business to compete, which is not available to the owners. A complete and comprehensive financial plan was produced. The following methods and theories are applied: a) Clearly outline the aims and objectives of the business, indicate what the unique selling point of the enterprise is and the legal form (company or partnership). b) Detail the main costs of the products or services provided and establish the break even point for those products or services including a sensitivity analysis. You must indicate how you have arrived at the price of your product or service. c) Produce a detailed monthly cash flow for the first three years of the business. d) Provide a comprehensive investment appraisal for any capital purchases that need to made (machinery, transport, or buildings). e) Produce annual budgeted income statements, balance sheets and cash flow statements for the first three years of the business. Showing a range of financial ratios from year to year so that an appraisal of the business may be made. f) Indicate the level of funding required and what form that funding will take.