Question

prepare a Business Plan. Think of a financial venture that you always wanted to start and develop a business plan to be your blueprint.All sections of a business plan as described in the presentation are equally important, however, for the purposes of this project you will include only the sections listed below:

The Executive Summary

The Business

The Market Analysis

Organizational Plan

Marketing Plan

Financial Plan

Perform the following calculations for inclusion in the appropriate section of your plan:

Marketing Plan:

You completed your market analysis, and after your market segmentation calculations discovered that your population was 100,000 individuals. The selling price of your product is $80.00 each.

Based on the adoption-diffusion curve, what revenue can you expect to generate in the first month of the business?

Financial Plan:

You have approached a venture capitalist for funding and to calculate the initial value of the company, you both agree that the company will be valued at $500,000 in 5 years. You are asking the VC for $50,000 startup funds.

What is the pre-money valuation of your company?

Answer 1

1.

As per the innovation adoption curve only
2.5% of the population or the Innovators
adopt the new product or technology.
Here the population is 100,000
2.5% of popultaion =100,000*2.5%=	2,500	people
so 2500 people will buy the product in the first month
as innovators
Price of the Product =$80 each
So Revenue for 1st month=2500*80=	$           200,000
2.
As per the calculation , the value of the firm would be $500,000 in 5 years.
Assuming that thius value is calculated with the VC fund added to the
pre -money value .
VC Fubd asked for is $50,000
So Pre-money value =$500,000-$50,000=$450,000