Loading 
Bonanza Offer FLAT 20% off & $20 sign up bonus Order Now
The amount of money is needed before the start of business. Exactly at the phase of starting of the construction of the building and buying of equipments.
Funding is the money required to start up a business. The funding is very important in starting of a business to meet all the expenses that is to be invested at the beginning of the business Most of these investment is one time investment which is needed at the beginning so as to satisfy all those expenses that may arise to start up a business. As in this case the fund is required to renovate the building premises, buying of equipments, to buy furniture’s and other things which will be important for the business (Armstrong and Taylor, 2014).
The sources of funds to start a business can come from venture capitalist, donations, credit or loan taken from bank, grants etc. These sources provide fund for the business to start and to continue its operations.
The loan is taken from ANZ bank amount of the loan is $100, 00 on a term period of 5 years on a interest rate of 9%. The principal amount is to be paid within 5 years in lump sum and the interest amounts are payable monthly (Buttigieg et al, 2016).
In order to start a business there are some expenses which are very important and cant be waved off. It is assumed that the total cost to start-up the business is $247,504, which includes expenses renovation work, purchase of equipment, cost to set-up a business, cost to maintain inventory, cost of setting up the business and other cost that involves in starting up a business. This cost is only for the first time while starting a business and will not incur afterwards. This costs are very important for starting up a business and could not be avoided (Chia and Round, 2015).
To start-up a business there are some cost that is incurred. This cost is known as total start-up cost. This cost is depended upon the expenses that is incurred to start up a business. In this case it can be seen that the total start-up cost is $247,504.
This start up cost includes expenses such as building renovation. Under this expenses comes expenses such as plumbing, Electrical wiring or fittings expenses, expenses related to remodeling of the bathroom, venting, grease tap and water heater tank less.
Another important form of expenses are Interior and exterior jobs. This expenses accumulates expenses relating custom millwork, tables, paints, flooring, stools phone installation and alarm. All these expenses clubbed together gives us interior and exterior jobs (Elsawah et al, 2016).
Other than the above-mentioned expenses, there are some other expenses such as the expenses relating to the buying of equipments. There are various kinds of equipments that is needed to carry out the business. Without the help of the equipment, it is not possible to carry out the business. Equipments are something that helps us to carry our work smoothly. So the equipments acts as a very important investment for our business. The expenses that comes under equipment are mop sink and faucet, 3 comp sink, pre-rinse with added faucet, reach in refrigerator, UC ice maker with water filter, Drop-in sink, Splash guard, Hand sink with splash gd., Backbar storage / refrigerator, Dipper well, Daily display cooler, sneeze guard, creeps maker, Display fridge for drink, u c dish washer, Sandwich prep. Fridge, X-Mav radiant pass through toaster etc.
A purchase budget is the total amount of inventory that should be purchased by the company during the period of each budget. This budget shows the inventory total amount that is to be brought by the company during the financial war. It is to be taken care off that there are sufficient of amount of inventory must be present in order to carry out smooth functioning of the business. Inventory is a very important factor in relation to the process of carrying out business activities. So we should see to that there is sufficient amount of inventory should be present in order to carry out any kind of work. Without proper inventory the functioning of the business or production is very hard to achieve. So to meet the needs of the customer ample stock of inventory is needed.
| Business Set-up: |
|
| Commercial Interior Design & Construction Drawings Fees | $4,500 |
| Permits | $2,300 |
| Business Plan | $1,300 |
| Insurance Deposit | $380 |
| Website | $2,000 |
| Rent Deposit | $5,300 |
| Sign | $3,000 |
| Legal charges | $15,000 |
| TOTAL SET-UP COST | $33,780 |
This analysis is a method of cost that is concerned with the impact varying levels of sales and product costs will have on the profit. The analysis is only reliable if costs are fixed within a specified production level. All units produced are assumed to be sold and all costs must be variable or fixed in the analysis. Another assumption is all changes in expenses occur because of changes in activity level. Semi-variable expenses must be split between expense classifications using the method (Gal, Stewart and Hanne, 2013).
In any business, or in general, hindsight is a beautiful thing. If only we could look into a crystal ball and find out exactly how many customers were going to buy our product, we would be able to make perfect business decisions and maximise profits.
If the owners knew exactly how many customers would come in each evening and the number and type of meals that they would order, they could ensure that staffing levels were exactly accurate and no waste occurred in the product. The reality is, of course, that decisions such as staffing and purchases have to be made on the basis of estimates, with these estimates being based on past experience.
A purchases budget has the amount of inventory which is purchased by a company during the budget period. The amount stated in the budget is the amount needed to ensure that there is sufficient inventory on hand to meet customer orders for products. A retailer or wholesaler uses the purchases budget, which do not manufacture their own goods. These entities typically aggregate purchases into product classes for budgeting purposes, rather than attempting to budget at the individual product level (Scott, W. R., and Davis, 2015).
The sales budget memorializes a business' sales expectations for the coming accounting or budget period and attaches gross revenue to the sales plan. It is expressed in both units and dollars. Smaller companies, with limited product categories and territories, may develop the sales budget for the business overall. Larger companies, with an array of products, usually aggregate the budget into product categories and/or geographic regions for the sake of simplicity and getting the job done on time (Zurich, 2017).
The sales budget is usually prepared and presented in a monthly or quarterly format or yearly format provides little actionable insight.
A cash budget is very important, especially for smaller companies. It allows a company to establish the amount of credit that it can extend to customers without having problems with liquidity.
A cash budget helps avoid a shortage of cash during periods in which a company encounters a high number of expenses
If your company cannot pay expenses because due to a cash shortage, this issue must be resolved immediately by bringing in more revenue, deferring or eliminating some of your costs, or by getting approval for a larger loan from your bank.
These solutions are costly, time-consuming, and not guaranteed, so it's best to plan for higher expenses ahead of time, if possible (Haimes, 2015).
Principle of organization - They should have a well-planned operation format so as to maximize their profit. Perhaps in this case they can divide the tourist in smaller short groups and reduce the time while increasing their experience and value for money.
Principle of fundamental – They should try to act according to the process and maintain strict regulations on use of resources so that wastages can be checked.
Principles of accountability – Every employee should be made accountable for their task and they should be provided with goals and checked which will decrease wastages and increase efficiency (HakemZadeh et al, 2016).
Principle of variance – Variance will help to reduce the cost of the process. The variance should be measured and it should be kept under control.
Principle of causality – Causality from the process should be ignored.As this may lead to further increase in consumption of resources (Kline, 2015).
Rather than doing costly trial and error, help should be taken in order save resources (Norton and Schofield, 2017).
If we form a process of the business mentioned in the case study we can make some changes. The process starts from when they avail the boat, arrives at the platform, stays there, and experience the aquatic environment and then return. Therefore, if the process time can be reduced and the groups of people can be reduced to a groups which may be 120 people at a time while increasing the number.
Armstrong, M., and Taylor, S. (2014). Armstrong's handbook of human resource management practice. Kogan Page Publishers.
Buttigieg, S. C., Buttigieg, S. C., Gauci, D., Gauci, D., Dey, P., and Dey, P. (2016). Continuous quality improvement in a Maltese hospital using logical framework analysis. Journal of health organization and management, 30(7), 1026-1046.
Chia, A.,and Round, H. (2015). A Developmental Learning Framework for Business Report Writing: Guidance for Management Educators”. Journal of Adolescent and Adult Literacy, 45(7), 556-566.
Elsawah, S., Guillaume, J. H., Filatova, T., Rook, J., & Jakeman, A. J. (2015). A methodology for eliciting, representing, and analysing stakeholder knowledge for decision making on complex socio-ecological systems: From cognitive maps to agent-based models. Journal of environmental management, 151, 500-516.
Gal, T., Stewart, T., and Hanne, T. (Eds.). (2013). Multicriteria decision making: advances in MCDM models, algorithms, theory, and applications (Vol. 21). Springer Science & Business Media..
Haimes, Y. Y. (2015). Risk modeling, assessment, and management. John Wiley & Sons.
HakemZadeh, F., HakemZadeh, F., Baba, V. V., and Baba, V. V. (2016). Toward a theory of collaboration for evidence-based management. Management Decision, 54(10), 2587-2616.
Kline, R. B. (2015). Principles and practice of structural equation modeling. Guilford publications.
Norton, S. B., and Schofield, K. A. (2017). Conceptual model diagrams as evidence scaffolds for environmental assessment and management. Freshwater Science, 36(1), 231-239.
Scott, W. R., and Davis, G. F. (2015). Organizations and organizing: Rational, natural and open systems perspectives. Routledge.
Zurich, L. B. (2017). Service Operations and Management.
MyAssigmenthelp.co.uk is the best option for those who are looking for reliable academic writing services. To show our genuineness, we submit only high quality assignments so that students never lose out on important grades. Our mission is to provide plagiarism-free solutions at very affordable prices. Students can get assignment help on any subject or topic from us.
Upload your Assignment and improve Your Grade
Boost Grades
