Environmental Analysis: Sources Of Finance For Revitalising Teahouse
Environmental Analysis
The climatic changes will have significant influence on the business operations of the proposed business. It implies that the business will face fluctuations in sales volume due to the extreme climatic changes.
Financial Resources
Sources of Finance for Revitalising Teahouse
The possible sources of finance for the proposed business are provided as follows:
• Loan capital in the form of a bank loan reflects the long-term finance for a start-up business over fixed period for the providence of loan, interest rate, and the time for repayments. Banks will require the owner of the proposed business to provide some security for the loan.
• Business investors are professional investors investing around £10,000 to £700,000 …show more content…
Total Long-term Assets £ 14,666.67 £ 14,666.67 £ 14,666.67
Total Assets £ 66,216.67 £ 77,716.67 £ 93,216.67
Liabilities and Capital
Current Liabilities
Accounts Payable £ 9,500.00 £ 11,000.00 £ 11,500.00
Current Borrowing £ - £ - £ -
Other Current Liabilities £ - £ - £ -
Sub-total Current Liabilities £ 9,500.00 £ 11,000.00 £ 11,500.00
Long-term Liabilities £ 44,000.00 £ 30,000.00 £ 25,000.00
Total Liabilities £ 53,500.00 £ 41,000.00 £ 36,500.00
Paid in Capital £ 20,000.00 £ 20,000.00 £ 20,000.00
Retained Earnings £ 25,000.00 -£ 2,717.00 £ 13,800.00
Earnings £ 22,283.00 £ 11,083.00 £ 18,483.00
Total Capital £ 67,283.00 £ 28,366.00 £ 52,283.00
Total Liabilities and Capital £ 120,783.00 £ 69,366.00 £ 88,783.00
Net Worth £ 67,283.00 £ 28,366.00 £ 52,283.00
Forecast Profit and Loss for Three Years
Project Profit and Loss Statement for Three Years Year 1 Year 2 Year …show more content…
With the growth of the business, the fixed costs are expected to grow with respect to the number of employees. The break-even point can be depicted as below
Annual Revenue Break-even £195,000
Assumptions
Average Percent Variable Cost 35%
Estimated Monthly Fixed Cost £8,000
Explanation of Likely Changes and Impact on Finance of Business
The most probable changes having the influence on the business may include the following:
• The extreme cold weathers can increase demand of tea, thus, leading to the increase in sales
• The extreme hot weathers can cause decline in the demand of team, thus, leading to the decline in
The climatic changes will have significant influence on the business operations of the proposed business. It implies that the business will face fluctuations in sales volume due to the extreme climatic changes.
Financial Resources
Sources of Finance for Revitalising Teahouse
The possible sources of finance for the proposed business are provided as follows:
• Loan capital in the form of a bank loan reflects the long-term finance for a start-up business over fixed period for the providence of loan, interest rate, and the time for repayments. Banks will require the owner of the proposed business to provide some security for the loan.
• Business investors are professional investors investing around £10,000 to £700,000 …show more content…
Total Long-term Assets £ 14,666.67 £ 14,666.67 £ 14,666.67
Total Assets £ 66,216.67 £ 77,716.67 £ 93,216.67
Liabilities and Capital
Current Liabilities
Accounts Payable £ 9,500.00 £ 11,000.00 £ 11,500.00
Current Borrowing £ - £ - £ -
Other Current Liabilities £ - £ - £ -
Sub-total Current Liabilities £ 9,500.00 £ 11,000.00 £ 11,500.00
Long-term Liabilities £ 44,000.00 £ 30,000.00 £ 25,000.00
Total Liabilities £ 53,500.00 £ 41,000.00 £ 36,500.00
Paid in Capital £ 20,000.00 £ 20,000.00 £ 20,000.00
Retained Earnings £ 25,000.00 -£ 2,717.00 £ 13,800.00
Earnings £ 22,283.00 £ 11,083.00 £ 18,483.00
Total Capital £ 67,283.00 £ 28,366.00 £ 52,283.00
Total Liabilities and Capital £ 120,783.00 £ 69,366.00 £ 88,783.00
Net Worth £ 67,283.00 £ 28,366.00 £ 52,283.00
Forecast Profit and Loss for Three Years
Project Profit and Loss Statement for Three Years Year 1 Year 2 Year …show more content…
With the growth of the business, the fixed costs are expected to grow with respect to the number of employees. The break-even point can be depicted as below
Annual Revenue Break-even £195,000
Assumptions
Average Percent Variable Cost 35%
Estimated Monthly Fixed Cost £8,000
Explanation of Likely Changes and Impact on Finance of Business
The most probable changes having the influence on the business may include the following:
• The extreme cold weathers can increase demand of tea, thus, leading to the increase in sales
• The extreme hot weathers can cause decline in the demand of team, thus, leading to the decline in