Business Finance: Analysis of Risk, Costs, Profit Forecast and Cash Flow Statement for Velosa Milkshake

Business Finance

Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
1. Give a brief summary about the business idea and do an analysis on the risk which the
business might face......................................................................................................................4
2. Give a brief outline about the fixed and variable costs...........................................................6
3. Prepare the profit forecast statement for the business year of the operations.........................6
4. Make a budgeted cash flow statement for the operational year of the firm............................7
5. Calculation of the break – even point and margin of safety....................................................8
6. Describe the KPIs which will be applicable in the business of milkshake..............................8
7. Provide recommendations based on the analysis.....................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
The business finance refers to managing the funds and the resources with the proper
allocation and maintenance of the funds. A business plan means the planning of the vision,
mission, aim and objective of the venture that the entrepreneur is going to start (Gassner and
Lawrence, 2019). In this report, a business is started of the milkshakes named Velosa Milkshake.
In this, the products in the milkshake which is going to be offered by the venture is analysed and
the risk which will be borne sat the commence of the enterprise. Also the investment sources and
from where the funding will be receiving is also to be determined. In addition, the fixed costs
and the variable costs are briefly discussed. Then the budget for profit and cash flow is created
taking into account all the expenses associated with opening the new business. In addition, the
KPIs and the recommendations were discussed further and briefly analysed based on the budget
drawn up.
MAIN BODY
1. Give a brief summary about the business idea and do an analysis on the risk which the
business might face.
A plan which is a composed for the stating up of the business record that clarifies
exhaustively how an organization normally a commences up its firm. It additionally
characterizes its goals and plans to accomplish them. From a showcasing, monetary, and
functional perspective, a strategy lays forward a recorded way for the organization. These are
essential papers that are utilized by both the organization's outer and inside crowds (Heil, 2018).
It is utilized to draw in venture or obtain financing before an organization has set up a history.
They are likewise a surprising way for corporation’s senior groups to remain in total settlement
with regards to vital things to do and keep focused to meet their targets.
Business Idea: The business is of the milkshake which is named as “Velosa Milkshake”. It
is a sole proprietorship business have a sole owner. The idea is to start a new business is to
provide two type of milkshake with 3 different toppings accordingly meeting to the demand of
the consumer. The product is Vanilla and Chocolate milkshake with the topping of KitKat,
Strawberry and Ferrero Rocher.