Planning to start-up your grapefruit juice company

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Reference no: EM132289164

Sources and Use of funds: Assuming, that you are planning to start-up your Grapefruit Juice company, you have personal savings of $30,000 and collect $40,000 from friends and relatives who would like to either have their seed money returned by the end of this calendar year at no interest or by the end of the second year of operation with 5% interest. If you borrow 50,000 from Bank of America, and $50,000 from Capital One Bank. 1) Outline the funds you have currently and the ones you intend to raise for the first six months of your business operations. Explain how do you plan to use the funds (a clear plan on how you will use the money) 2) Plan assumptions: The Financial plan must be based on decisions and facts. Investors want to know if this plan is realistic Outline your plan assumptions. 3) Also, assume that the company’s break-even point for the first- year operation is $80,000. Is where you make enough money in revenue to pay your expenses but you do not make money nor do you lose money.

Reference no: EM132289164

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