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Assignment 2: The Basics of a Start-Up

Due Week 4 and worth 150 points

This assignment investigates the financial needs of your business venture from Assignment 1.

Write a three to four (3-4) page paper in which you:

  1. Outline the financial start-up needs for this business. Consider such items as cash, equipment, space lease or purchase, raw materials, labor costs, etc. Provide a rationale for your estimates. (This is only a preliminary list. As you progress in the course, this outline will be fine-tuned.)
  2. Once you have estimated the start-up needs for this business, determine the best financing options to obtain the needed capital and how you would approach securing this type of financing. Justify your selection.
  3. Evaluate the two (2) most important financial ratios that you will use to track the health of the business and explain how each would provide insight to the business performance. Provide a rationale with your response.

Your assignment must follow these formatting requirements: