Supply chain management and financial plan
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Supply chain management and financial plan
In any business financial activities, the purpose of a balance sheet is fundamental in analyzing the assets and the liabilities of the company. It allows the involved parties to have the idea of the firm’s financial position (Carlson et al., 2020). In most cases, it displays the exact amount or what the company owns and also debts/what they owe. It is vital that any potential investors understand the statement, analyze it as well as internalize the balance sheet. The fact is that the balance sheet tends to give deeper insight or reason for investing in a stock or business. According to Winfree et al., 2018 asserts that income statement states if the business is making any profit or loss on an annual basis. In the US, there are a lot of startup firms that go out of business within a year or less. The total revenues and expenses of a company are usually listed on this statement.
Balance Sheet Proforma
| Current Asset Cash on hands in banksTime deposits and short-term investmentsAccounts Receivable (Less: Allowance for doubtful accounts) Inventories Prepayments NET TOTAL CURR ASSET: | Year 1 ( $) 150,000
50,000
200,000 | Year 2 ($) 150,000 20,000
50,000
5,000 5000 230,000
|
| Fixed assets Land Vehicles Furniture and equipment (Less: Accumulated depreciation)NET TOTAL OF FIXED ASSET: |
30,000
30,000 |
30,000 5000
35,000 |
| Current Liabilities Accounts Payable Notes Payable Current Portion of Long-Term Liabilities Customer Deposits Taxes Payable Interest Payable NET TOTAL CURR LIAB: | 20,000
20,000 | 20,000 1,000
2,000 5,000 3000 31,000 |
| Fixed liabilities Car Loans Building lease one year Subtotal | 40,000 10,000 50,000 | – 10,000 10000 |
| Equity Paid in Capital Retained Earnings | 100,000 20,000 Tot:160,000 | 100,000 20000
|
Fig 1:Balanced Sheet Proforma
Income statement proforma
| Revenue 1. Merchandise sales Total= $20,000 Expenses 1. Cost of goods sold 2. Depreciation cost 3. Rent 4. Wages 5. Supplies 6. Utilities TOTAL EXPENSE Net income | Year 1 ($)
50,000
7000 1000 1000 5000 500 500 15,000
35, 000 | Year 2 ($)
35,000 Total:35,000
6500 500 1000 5000 300 700 14,000
21,000
|
Fig 2: income statement proforma
Hiring and retaining Outline
Hiring process
(i) Planning
The planning stage entails the element of advertising for the various position for the Bakers Cake Yard through the television and online social media. The job description is important in this process as there is a need to ensure that job advert is sent so that management can prepare.
(A) Job or position description involves the specified position, tasks and the rank of employees in the firm.
(ii) Recruitment plan
(A) Review applicants
Sorting and picking the right individuals for the correct job position is very important to avoid laziness and incompetence. Management has to select the best and most experience so that they can be engaged and motivated to do great.
(iii)Selection
(A)Interviews
It is vital to start with the Introduction, which will involve small talks and getting to know one another better. The interviewer would ask questions to the recruit so that they can know their qualifications and how they would impact Bakers Cake Yard. Interaction and engagement start in this phase, as there is more scrutiny of the selected individual.
Retaining process
Employee retaining would entail ways of making workers stay longer in the firm. There are strategies that Bakers Cake Yard can apply in motivating and inspiring its employees. To ensure that better sales projection and competitiveness are achieved there is need for sourcing and retaining best top talents in the business.
(i)Motivational strategies
Employees can be retained through money or salary increments, better working conditions, health benefits and recognition. Employees should feel safe and appreciated in their work; hence it would increase the level of retention.
Business plan outline
(A)Executive Summary.
It entails the summary of why the business exists and reason to plan for the resources available. The summary would entail all the phases of a business plan in which would ensure competitiveness and efficient planning of the company.
(B) Company Description.
In this section talks briefly about Bakers Cale Yard, its products, services and management. It will also elaborate on the processes and the market plan of the business. As a bakery or wedding cake creation idea, this step involves cake creation, decoration, marketing and sales.
(C) Market Analysis.
In any market, there is a need to understand the micro and macro environment factors that might influence the production and sale of wedding cake in the targeted area. Its also involves targeted markets and groups in which the company plan to penetrate. The analysis of the market is essential to forecast and be proactive in the market.
(D) Competitive Analysis.
Screening and evaluation of the potential threats to the business involve competitors who might take all available market shares. This process is crucial for the survival of Bakers Cake Yard as sales and customer loyalty are concepts in which involves competitiveness. Understanding product rivalry is vital in that other players in the market have to be studied to avoid pricing issues and marketing problems.
(E) Description of Management and Organization.
The leadership of the company is necessary for its success. There is a need for effective division of work and diversification in the activities. As the owner, team building is required so that managing the firm can be easy. The healthy internal competition allows staff to manage themselves and ensure accountability. The organizational structure of the firm is crucial as it has to be aligned with the vision and mission in order to be successful.
(F) Breakdown of the Products and Services.
The primary and secondary products/services for Bakers Cake Yard should be identified, which are wedding cake creation/decoration and bakery for birthdays and anniversaries. It is important to have alternative products so that there is less competition in the market or similarities. Branding of the product has to be unique and well as logo and presentation. The content and information about the products should be relevant and attractive for the clients.
(G) Marketing Plan
It is the overall business plan for the company. The core elements include product, price, promotion, place, packaging, positioning and people.
(H) Sales Strategy.
A sales strategy plan is usually defined as the firm’s roadmap for securing dependable, long-term revenue. It can be done through the retention and acquisition conceits of new as well as existing clients. Its entails the specific tactics that are necessary for market penetration. Such strategies allow for effectiveness and customer attraction. The plan might also involve the firm’s processes, set goals/ objectives, forecasting mechanism, methods of budgeting, and annual timeline. Example of sales strategies that Bakers Cale Yard can apply are; benefits come first, market Research, targeting of small markets, networking with right people, social or media platforms, embracing storytelling and using customers feedbacks.
( I) Funding
Donors and personal saving of the owners are the key financial sources for Bakers cake Yard. It is important to lobby for a more entrepreneurial partnership that would bring more capital if the need for franchise or expansion. Management of funds should be a priority to avoid lose of asset and increased liability.
(J) Financial projections
In this step, there is financial analysis and evaluation of the company. In these cases, Bakers Cake Yard management would ensure that all their financial statements like balance sheet and income statements projections are presented to know the strategic plan of the firm. The need for these projections is to ensure that financial stability, the understanding position of the firm before and after starting the business.
References
Carlson, M. A., D’Amico, S., Fuentes-Albero, C., Schlusche, B., & Wood, P. R. (2020). Issues in the Use of the Balance Sheet Tool.
Winfree, J. A., Rosentraub, M. S., Mills, B. M., & Zondlak, M. P. (2018). Financial Statements, Revenues, and Costs. In Sports Finance and Management (pp. 72-95). Taylor & Francis.