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Risk Management Plan For Interior designing venture

11 Pages1433 Words282 Views
   

Charles Sturt University

   

Entrepreneurship (BMA 703)

   

Added on  2020-03-01

About This Document

In this document, we will discuss the Proposed Venture's Major Risk for Business which is increasing competition; changing and increasing expectations of customers, and ensuring the final product is as per the plan. It is a general perception that in Interior Designing business  management  has frequently had to deal with several problems such as procurement, labor force, user backlash, and material delay. Also, we cover effective management for these concerns which must have a first-hand solution as a significant part of business policy and strategy.

Risk Management Plan For Interior designing venture

   

Charles Sturt University

   

Entrepreneurship (BMA 703)

   Added on 2020-03-01

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Entrepreneurship
Risk Management Plan For Interior designing venture_1
TABLE OF CONTENTS2.1 Financial projections for the venture....................................................................................1Cash flow statement...............................................................................................................1Statements of comprehensive income....................................................................................3Statements of financial position.............................................................................................12.2 Risk management plan.........................................................................................................1References..................................................................................................................................3
Risk Management Plan For Interior designing venture_2
2.1 FINANCIAL PROJECTIONS FOR THE VENTURECash flow statementParticulars Pre-operatingyearYear 1Year 2Year 3Year 4Year 5Cash inflow Opening $35,000 $67,000 $143,800 $288,200 $543,800 Sales $ 90,000 $135,000 $202,800 $304,200 $456,600 Initial investments Owners savings $100,000 Bank loan $30,000 Total cash inflow (A) $ 130,000 $125,000 $202,000 $346,600 $592,400 $1,000,400 Total cash outflow Direct expensesMachineries $40,000 Total direct expenses $- $ - $ -Marketing andpromotions $20,000
Risk Management Plan For Interior designing venture_3
Furniture and Interior $25,000 Rent $4,000 $4,000 $4,000 $4,000 $4,000 Marketing expenses $500 $500 $500 $500 $500 Salaries to staff $ 42,000 $ 42,000 $ 42,000 $ 42,000 $ 42,000 Telephone charges $1,000 $1,100 $1,200 $1,300 $1,400 Electricity bill $500 $600 $700 $800 $900 Insurance $50,000 Loan repayment $ 10,000 $ 10,000 $ 10,000 Total cash outflow (B) $95,000 $ 58,000 $ 58,200 $ 58,400 $ 48,600 $ 48,800 Total cash flow(A-B) $35,000 $ 67,000 $143,800 $288,200 $543,800 $951,600 AnalysisCash flow statement can be specified as one of the most significant part of financial statement for projecting a business. Detailsregarding cash outflow and cash inflow which is provided for specified no. of years has been specified in this statement. From aboveanalysis it can observed that the company is expected to have an increasing trend of sales; as the expected sales are increasing everyyear for consecutive five years. Further, the liquidity of the company seems to be stable and strong as sufficient cash funds areavailable ant same can be applied appropriately for required purpose. No higher financial loan exist in above cash flow statement
Risk Management Plan For Interior designing venture_4

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