BUDGETING AND FORECASTING DUE IN 20 HOURS

DeVry University

Course Project Description

BUSN278 Budgeting and Forecasting

BUSN278 Course Project

Project Overview

This is an individual project where you will be acting as an entrepreneur who wants to start a new business. As an entrepreneur, you’ll create a 5-year budget that supports your vision and strategy, as well as the needs for equipment, labor, and other start-up costs.

The project requires you to create a written budget proposal, a supporting Excel workbook showing your calculations, and a PowerPoint presentation summarizing the key elements of the budget proposal, which you assume will be presented to a management team.

This is an individual project. Each week you will complete a section of the project in draft form. In Week 7, you will submit the final version of the project’s budget proposal, budget workbook, and budget presentation in PowerPoint.

Deliverables Schedule and Points

Business Profile: Papa Geo’s—Restaurant

Vision

The vision of the entrepreneur is to create a single-location, sit-down Italian restaurant called Papa Geo’s. The goal is maximize profits over a five year period.

Strategy

a) Market Focus and Analysis

The restaurant targets middle- to lower middle-class families with children, as well as adults and seniors, located in Orlando, Florida. The area within 15 minutes of the store has 10,000 families, mostly from lower to middle-class neighborhoods. Average family size is four people per household. There is no direct competition; however, there are fast food restaurants like McDonald’s, Taco Bell, and Wendy’s in the geographical target market. The lower to middle-class population is growing at about 6% per year so your sales should go up by at least 6% per year plus a growth from word of mouth (Happy Customers).

b) Product

The product is Italian food served buffet style, in an all-you-can-eat format, with a salad bar, pizza, several different types of pasta with three or four types of sauces, soup, desserts, and a self-serve soda bar. The restaurant is also to have a 500 square foot gaming area that has game machines that children would be interested in using.

c) Basis of Competition

Customers come to this restaurant because of the good Italian food at a low price—you can get a meal for $7, including drinks. Customers also eat at Papa Geo’s due to the cleanliness of the facility, the speed of getting seated and served, and the game machines that keep the children busy while adults enjoy their meal.

Costs you should estimate through research, experience, or other methods

• Soda fountain bar

• Two pizza ovens

• Salad and pizza/dessert bar

• Approximately 100 square foot commercial refrigerator

• Two cash registers

• Six video game machines

• Management office with desk and lower priced laptop computer

• Staff lunchroom equipment such as microwave, sink, cupboards, and refrigerator

• 20 four-seat tables with chairs

• Busing cart for transporting dirty dishes from the dining area to the dishwashing area

• 140 sets of dishes, including cutlery and drinking cups

• Commercial dishwasher

• Miscellaneous cooking and food handling equipment like trays, lifters, spoons, pots, and so on

• The cost of an average of seven employees on the payroll

• All operating costs, such as advertising, rent for a 3,500 square foot facility with male and female washrooms (already installed), utilities, maintenance, and annual depreciation

*If you have questions about start-up requirements, or think that other start-up costs necessary for the business are missing, then make an assumption and state it in the relevant section of the report.

Given Financial Assumptions*

• The owner will be granted a loan for the initial start-up, repayable over 10 years at current interest rates for small business loans.

• The owner will use personal funds to operate the business until it generates enough cash flow to fund itself.

• See updated Excel Workbook that the professor has emailed you.

• Professor will email you and post announcements each week on how to complete the weekly assignments.

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