On successful completion of this assessment, students should be able to:


On successful completion of this assessment, students should be able to:

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  • develop a budget for a business idea presented in unit 4, projecting costs associated with the venture,
  • analyze the funding need and provide breakdown of appropriate cost centers, and
  • identify the profit or loss for the venture in year one and show when the business will be profitable.

Brief Description

The assignment requires the completion of a budget to project costs associated with the new venture and will be used as a guide in terms of how much funding is needed to launch the business. The budget statement should reference the business opportunity submitted in unit 4. The budget statement will be augmented with notes to explain the choices and projections.

Submission Instructions

Write a paper including the budget for your idea from unit 4. Each paper should include an introduction, recommendation and conclusion, should be 4-6 pages (double spaced), 2.54 cm margins (the default on MS Word), and 12 pts size. The paper should include notes to accompany and explain the budget decisions and budget lines. The paper should follow the APA guidelines for format and citation. In your assignment you should:

  1. Identify the problem the venture will address and its scope.
  2. Support claims about the problem with appropriate sources, including at least three academic sources such as books, juried articles found in the YU library.
  3. Demonstrate the validity of the idea and identify what makes this a true opportunity.

Please also include the following:

  1. Analysis of the capital and cash need that the new venture will require for its first year.
  2.  Prepare a pro forma balance sheet describing the financial position of the organization at the end of the year.
  3. Prepare a pro forma statement of cash flow for the first year.
  4. Prepare a pro forma income statement for the first year
  5.  Describe how the figures in the pro forma financial statements were derived and why you think that they are accurate.

Don’t forget to include at least 4 academic references.

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