Business Plan: Wedding and Corporate Catering Business

Business Plan: Wedding and Corporate Catering Business

Introduction

This essay will discuss the business plan associated with initiating a Wedding and Corporate Business. This pal will focus primarily on the accounting and financial aspect of the start-up business. Elayne is the proprietor of the business and the primary sources of finance for her business is the redundancy settlement amount and her savings. However, other sources of finance, such as short-term loans will also be considered.

Discussion

Elayne's Corporate Catering and Wedding Consultant is a dedicated company which caters to providing deliveries of high quality and diverse food dishes to the corporate sector in the city of London, as well as, providing expert advises on weddings. The company will hire the services of two dedicated and experienced experts in the field who will lead the respective departments of corporate catering and wedding planning. Professionalism, dedication and customer satisfaction is the mission of the company. The two business heads will report to Elayne, who retains 100% ownership of the company. In the initial stages, the sole proprietorship business model will be followed. With subsequent success, the owner plans to register the company as a limited liability organisation. The company will further hire a combination of part-time and full-time employees in order to execute the day-to-day operations of the company (Bized 2012).

Start-up Costs

After a comprehensive investigation and scrutiny of various sources of finance, it is viable for Elayne to initiate her business from her own house. This decision will probably save the business a lot of capital in case a separate premises is rented or purchased. Her house will serve as an ideal location for providing deliveries to corporate customers, as well as, providing wedding planning advises (Abrams & Kleiner 2003).

Start-up Costs comprise of expenses which are associated with creating the company and include logo designing, initial advertising, and primary costs of registering the company and other legal costs.

The start-up costs are estimated at £3,000 and further £5,000 will be dedicated to ensure seamless operational running of the business. The owner will provide 62.5% of the capital in the form of equity; whereas the remaining £3,000 will be borrowed from the bank.

Pro Forma Financial Statements

A detailed pro forma Income Statement and Balance Sheet is worked out for the start-up. The financial and accounting analysis depicts that the company will be profitable from year1 due to strong linkages of the owner with the corporate community. Sales are expected to strongly reach the 100,000 mark during the first year. The company faces some liquidity shortages during the initial months; however, successfully achieves profitability during the first year.

Sources and Methods of financing available for Elayne

Equity Financing

Equity financing is the primary source of financing for any small business and is usually provided by the private funds of the owners or shareholders in the company and is primarily procured through cash contributions. The owners pay money for their own accounts on behalf of the company, as it is done in the case where Elayne provided ...