Financial Justification

potential revenues and expenses include:

Target market: The size and characteristics of the target market will influence the demand for
the products and the potential for sales.

Location: The location of the business can impact the foot traffic and visibility of the business,
which can affect the potential for sales.

Competition: The level of competition in the market will impact on the pricing of the products
and the ability to attract customers.

Pricing strategy: The pricing strategy of the business will determine the cost of the products and
the potential for profits.

Operating costs: The operating costs of the business, such as the cost of ingredients, labor,
utilities, and rent, will impact the profitability of the business.

Assumptions underlie financial planning:

Financial planning involves making assumptions about the future financial performance of a
business or individual. These assumptions are based on a variety of factors, such as market
trends, economic conditions, industry benchmarks, and the specific characteristics of the
business or individual. Some of the key assumptions that may be made in financial planning
include assumptions about revenue growth, cost of goods sold, expenses, taxes, and financing.

Sources of capital are available to you to sustain operations

As students we have a few sources of capital include:

Debt financing: This involves borrowing money from a lender, such as a bank, and repaying the
loan with interest.

Retained earnings: This involves using the profits of the business to fund operations, rather
than distributing them to shareholders.
How to realize profits.

There are several key strategies that can be used to realize profits:

Increase revenues: One of the most effective ways to increase profits is to increase revenues by
selling more products This can be achieved through a variety of strategies, such as expanding
into new markets, introducing new products, improving the marketing and sales efforts, and
increasing prices.

Reduce costs: Reducing costs can also help to increase profits. This can be achieved through a
variety of methods, such as streamlining operations, improving efficiency, negotiating better
prices for materials and supplies, and cutting unnecessary expenses.

Improve pricing strategy: Carefully managing pricing can also help to increase profits. This
may involve setting prices at a level that maximizes profits, adjusting prices based on demand or
competition, and offering discounts or promotions to encourage sales.

What can an investor expect should they invest in your company?