FINANCIAL PLAN

Financial Plan

PART A

Background

NEW music business venture music business venture will be a limited liability corporation registered in the state of UK. The company will be jointly owned.(Koulopoulos 2002 55) NEW music business venture will be establishing its store in UK. This area will well known for its upscale residents and high-quality establishments. NEW music business venture facility will a former 8,000 square ft. CDs store which will allow the company to stock a large amount of inventory. NEW music business venture will be start-up use CDsstore in the Wales, UK area. It will the goal of the company management to acquire local market share in the will use CDsstore industry through low price, a dominant selection of products, a competitive variety of services including a buyback/trade program and hard to find CDs search, plus a relaxing, friendly environment that encourages listning and enjoying music. (Kline 2004 45)

Businesses develop budgets and business plans to ensure optimum financial performance. An important element of budgeting and planning will financial forecasting. Forecasting the finances of a business requires certain understanding of financial dynamics. This paper will examine the necessary steps for financial forecasting, important elements of projecting future growth, types, and methods of financing capital requirements, the impact of changes in interest rates and dividend payouts as well as alternatives to capital financing and its impact on debt ratio and equity.

Financial planning will a method that will require George to consider the overall affect of financial investment decisions. In financial planning, balance sheets, income statements, and other sources of cash will need to be analyzed and projected. The financial plan will help Executive CDs examine what could happen due to a change in economic conditions. Steps that can be taken in financial planning include both analyzing finance and investment decisions for Executive CDs; setting both short-term and long-term goals and devising a plan on how these goals will be achieved.

One method that can assist in this process involves setting up a forecasting model. The model includes data from the balance sheet including assets, liabilities, and owner's equity. Using an excel spreadsheet, the data will include growth, tax, interest rates, sales, and payout ratios. Once the formulas will be entered, the data can be manipulated, enabling George to forecast the results of certain decisions and better aid in the planning phase.

Company Background

NEW music business venture music selection will concentrate on CDs as these will be the most popular and take up the least amount of floor space. In addition, we will be offering a competitive buy and trade service to assist in lowering NEW music business venture inventory acquisition costs and making NEW music business venture store more attractive to NEW music business venture customers. We also offer a search and order service for customer seeking hard to find items. Another less obvious service to NEW music business venture customers will be the relaxed "reading room" type atmosphere that we will encourage through the placement of chairs, couches, and ...