You have been asked to create a budget proposal for one of these businesses: Papa Geo?s Restaurant, The Cutting Edge Landscaping, or Wireless World Electronics Retail Store. This week you will begin working on the proposal by drafting the Executive Summary. Please see attachments. I only need the executive summary for one of the three business that are in the attachments.

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 a consultant to an entrepreneur who wants to start a new business. As the consultant, you'll create a 5-year budget that supports the entrepreneur's vision and strategy, as well as the needs for equipment, labor, and other start-up costs. You can choose from one of three types of new business start-upsa landscaping company, a restaurant, or an electronics store that sells portable computing devices. Each business has its own business profile detailed in the sections below. The purpose of the business profile is to guide you in understanding the scope of the business, the entrepreneur's start-up costs, and financial assumptions. 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 Week 1 2 3 4 5 6 7 7 Deliverable Points Section 1.0 Executive Summary (Draft) Section 2.0 Sales Forecast (Draft) Section 3.0 Capital Expenditure Budget (Draft) Section 4.0 Investment Analysis (Draft) Section 5.1 Pro Forma Income Statement and 5.2 Balance Sheet (Draft) Section 5.3 Pro Forma Cash Budget (Draft) Final Budget Proposal Final Presentation with PowerPoint Total project points 10 10 10 10 10 10 90 30 180 Copyright 2010 by DeVry Educational Development Corporation. All rights reserved. No part of this work may be reproduced or used in any form or by any meansgraphic, electronic, or mechanical, including photocopying, recording, Web distribution or information storage and retrieval systemswithout the prior consent of DeVry Educational Development Corporation. Page 1 of 9 qattachments_eebe5c3ab69133df105ffbf085fa22bee49224f8 Business Profile: Papa Geo'sRestaurant Vision The vision of the entrepreneur is to create a single-location, sit-down Italian restaurant called Papa Geo's. The goal is to generate an income of $40,000 per year, starting sometime in the second year of operation, as wells as profit that is at least 2% of sales. 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 over the next 5 years in this area. 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. Start-Up Requirements* Given Costs The cost of registering a limited liability company in Floridafiling fees listed at the bottom of the application located at http://form.sunbiz.org/pdf/cr2e047.pdf Renovation of the facility expected to cost $15,000 Business insurance, estimated at $1,000 per year Health and other benefits at 20% of the salaries of the manager and assistant manager Costs you should estimate through research, experience, or other methods DeVry University Course Project Description BUSN278 Budgeting and Forecasting 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. Essentially, all sales are made by credit card. All credit card sales are paid to the restaurant daily by the credit card company. A total of 2.5% of sales are paid to the credit card company in fees. Food suppliers give 30 days of trade credit. Inventories are expected to be approximately 10% of the following month's sales. The average meal costs $4 in materials and labor. The average family spends $4 on vending machine tokens. Copyright 2010 by DeVry Educational Development Corporation. All rights reserved. No part of this work may be reproduced or used in any form or by any meansgraphic, electronic, or mechanical, including photocopying, recording, Web distribution or information storage and retrieval systemswithout the prior consent of DeVry Educational Development Corporation. Page 3 of 9 qattachments_eebe5c3ab69133df105ffbf085fa22bee49224f8 Equipment is depreciated on a straight-line basis over 5 years. Managers have health benefits, and other workers do not. The company will operate from 10:00 a.m. to 9:00 p.m., 7 days a week. The entrepreneur will manage the store and draw a salary. Every shift has one person on the cash register, one keeping the food bars stocked with food, two cooking the food, one on busing and table cleaning, a manager, and an assistant manager. *If you believe any other assumptions are necessary, please state them in your budget proposal. DeVry University Course Project Description BUSN278 Budgeting and Forecasting Business Profile: The Cutting EdgeLandscaping Vision The vision of the entrepreneur is to create a five-team landscaping business that caters to upscale neighborhoods in Miami, Florida. The company is to be called The Cutting Edge. The goal of the entrepreneur is to generate income of at least $42,000 per year as his personal salary, as well as profits of 4% after tax no later than the second year of operation. The entrepreneur intends to buy a route of 100 homes from a lawn service company whose owner is retiring. Strategy a) Market Focus and Analysis The landscaping business targets upscale neighborhoods with home associations that demand lawns to be manicured and well cared for. Customers tend to be upper middle to upper class individuals with household income levels of $110,000 or more. The geographic focus is Miami and its surrounding area. The area is expected to show slow economic growth of about 1% per year over the next 5 years. b) Product The product is lawn maintenance and landscaping services as well as minor irrigation equipment repair. The primary source of income is expected to be in the form of lawn-cutting, debris-blowing, and edge-trimming services. However, the company will also do reseeding, landscaping and foliage or tree planting, tree trimming, and light irrigation system repair when necessary to keep its customer's lawns watered and healthy. c) Basis of Competition Customers hire the Cutting Edge due to its employees' reliability (showing up when they are supposed to), its quality lawn service, and its ability to keep lawn sprinkler systems in good repair, sparing the homeowner the inconvenience of calling a sprinkler repair for minor repairs such as broken or clogged sprinkler heads or other minor sprinkler system repairs. Start-Up Requirements* Given Costs Copyright 2010 by DeVry Educational Development Corporation. All rights reserved. No part of this work may be reproduced or used in any form or by any meansgraphic, electronic, or mechanical, including photocopying, recording, Web distribution or information storage and retrieval systemswithout the prior consent of DeVry Educational Development Corporation. Page 5 of 9 qattachments_eebe5c3ab69133df105ffbf085fa22bee49224f8 The cost of registering a limited liability company in Floridafiling fees listed at the bottom of the application located at http://form.sunbiz.org/pdf/cr2e047.pdf Business insurance, estimated at $1,000 per year No health benefits except for the owner of the business Workers' compensation fees The cost of the initial route of 100 homes, at a cost of $120,000 Costs you should estimate through research, experience, or other methods Team equipment for lawn cutting, which includes equipment for a twoperson team o A pickup truck o A trailer o A large riding lawnmower o A smaller riding lawnmower o A push lawnmower o Two gas-powered lawn trimmers o Two gas-powered lawn edgers o Safety equipment for eye and ear protection o Tools for minor equipment repair on the job o A drink cooler o Two gas-powered blowers o Two tree or hedge trimmers o Two long ladders o Buck saws for cutting branches The cost of 10 workers, two per team All operating costs such as advertising, phone, a small 400 square foot office complete with utilities, Internet, laptop computer, accounting software like QuickBooks, office supplies, and annual depreciation on equipment. *If you have questions about start-up requirements, or think other start-up costs necessary for the business are missing, then make an assumption and state it in the relevant section of the report. This list is not necessarily complete. 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. Essentially, 60% sales are made by credit card and 40% are made by check. All credit card sales are paid to the company daily by the credit card company. DeVry University Course Project Description BUSN278 Budgeting and Forecasting A total of 2.5% of credit card sales are paid to the credit card company in fees. The average lawn service costs $150 per month. Irrigation repairs are minimal at an average of $50 per customer per year, and landscaping and other services are about $200 per customer per year. Equipment is depreciated on a straight-line basis over 5 years. The owner has health benefits, and other workers do not. Each lawn takes about 1.5 hours to cut and manicure, as well as any other repairs or extra services like tree or shrub trimming. The entrepreneur will manage the company and draw a salary, but will not service lawns or perform other services. *If you believe any other assumptions are necessary, please state them in your budget proposal. Copyright 2010 by DeVry Educational Development Corporation. All rights reserved. No part of this work may be reproduced or used in any form or by any meansgraphic, electronic, or mechanical, including photocopying, recording, Web distribution or information storage and retrieval systemswithout the prior consent of DeVry Educational Development Corporation. Page 7 of 9 qattachments_eebe5c3ab69133df105ffbf085fa22bee49224f8 Business Profile: Wireless WorldWireless Device Retail Store Vision The vision of the entrepreneur is to create a single-location retail operation that sells portable wireless devices called Wireless World. The company sells phones, wireless e-book readers, high-end notebook and netbook computers, iPads, and other wireless computing devices. Strategy a) Market Focus/Analysis This store targets tech-savvy individuals who are mostly students from wealthy families or working adults between the ages of 22 and 49 years of age. These individuals either purchase the products because they love wireless gadgets, think the gadgets will improve their productivity, or think the wireless gadgets are fashionable and consistent with their lifestyle. The store is located in a high-end shopping center called Millennia Mall alongside Neiman Marcus, Macy's, and other high-end stores. b) Product Products are cutting edge wireless devices from brand name companies, as well as specialty companies that have unique products that are not readily available at other stores. c) Basis of Competition Customers shop at the store for the high-end shopping experience; knowledgeable staff; superior customer service and return policies; and the broad selection of well-known, brand-name products, as well as lesser known companies with highly unique and innovative wireless devices. They also shop at the store because it is stocked with cutting-edge products that are new to the market. Start-Up Requirements* Given Costs The cost of registering a limited liability company in Floridafiling fees listed at the bottom of the application located at http://form.sunbiz.org/pdf/cr2e047.pdf Renovation of the facility expected to cost $25,000 Business insurance, estimated at $1,000 per year Health and other benefits are 20% of the salaries of the manager and assistant manager Initial investment in inventory is $20,000 DeVry University Course Project Description BUSN278 Budgeting and Forecasting Costs you should estimate through research, experience, or other methods 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 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. Essentially, all sales are made by credit card. All credit card sales are paid to the store daily by the credit card company. A total of 2.5% of sales are paid to the credit card company in fees. Merchandise suppliers give 30 days of trade credit. Inventories are expected to be approximately 10% of the following month's sales. Managers have health benefits, and other workers do not. The company will operate from 10:00 a.m. to 9:00 p.m., 6 days a week. The entrepreneur will manage the store and draw a salary. *If you believe any other assumptions are necessary, please state them in your budget proposal. Copyright 2010 by DeVry Educational Development Corporation. All rights reserved. No part of this work may be reproduced or used in any form or by any meansgraphic, electronic, or mechanical, including photocopying, recording, Web distribution or information storage and retrieval systemswithout the prior consent of DeVry Educational Development Corporation. Page 9 of 9 qattachments_eebe5c3ab69133df105ffbf085fa22bee49224f8 DeVry University Course Project BUSN278 Budgeting and Forecasting Student Project Activity - Week 1 A. Week 1: Section 1.0 Executive Summary B. TCOs Addressed: TCO 10: Given a description of a new business, new product, service or project develop, present and defend the budget. C. Project Activity Overview - Scenario / Summary: You have been asked to create a budget proposal for one of these businesses: Papa Geo's Restaurant, The Cutting Edge Landscaping, or Wireless World Electronics Retail Store. This week you will begin working on the proposal by drafting the Executive Summary. Use the Budget Proposal Template.docx. D. Deliverables: Save the first paragraph of Section 1.0 Executive Summary Draft as YourName_Project_WK1.docx and upload to the Week 1 Project Dropbox. E. Project Tasks: Task 1: Download the Budget Proposal Template.docx from DocSharing. Task 2: Download the Course Project Description.docx. from DocSharing. Task 3: Review the three different business scenarios. Task 4: Select the business for which you will create a budget proposal. Task 5: Draft the first paragraph of the Section 1.0 Executive Summary. Task 6: Save the Draft and submit to the dropbox. Copyright 2010 by DeVry Educational Development Corporation. All rights reserved. No part of this work may be reproduced or used in any form or by any means - graphic, electronic, or mechanical, including photocopying, recording, Web distribution or information storage and retrieval systems - without the prior consent of DeVry Educational Development Corporation. Page 1 of 4 qattachments_86bae0f4ec858c4883ec783c1ac1876e8abe4aab DeVry University Course Project BUSN278 Budgeting and Forecasting F. Grading Criteria Description The business is briefly described in one paragraph. The business description is in your own words. Suggested Points 3 The business description appears in the Executive Summary section of the Budget Proposal Template. 2 The business description is one of the three businesses described in the business profiles. Total Points 2 3 10 points See the next page for an Executive Summary example, reference: http://www.business-plans-guide.com/executive-summary-example.html Copyright 2010 by DeVry Educational Development Corporation. All rights reserved. No part of this work may be reproduced or used in any form or by any means - graphic, electronic, or mechanical, including photocopying, recording, Web distribution or information storage and retrieval systems - without the prior consent of DeVry Educational Development Corporation. Page 2 of 4 qattachments_86bae0f4ec858c4883ec783c1ac1876e8abe4aab DeVry University Course Project BUSN278 Budgeting and Forecasting Terra Engineering is a new company that will provide high quality technical and environmental engineering services to its clients. Terra Engineering is scheduled to begin operations on July 16, 2004. Terra Engineering will be a partnership, owned and operated by Norm Johnson and Rupert Smith. Terra Engineering will provide a wide array of environmental consulting services to its market whi ch includes: Site Specific Environmental Services; Permitting; Strategic Planning; Project Design and Management; Technical Third Party Services; Environmental Policy Development and Liaison Services. Terra Engineering will target small to medium sized companies and government organizations within the Southern part of Michigan including Detroit and surrounding areas as well as Southern Ontario. Terra Engineering will seek major contracts with medium sized firms. Those contracts will be serviced with the assistance of strategic alliances, both with other engineering companies such as Randolf and Associates and Barnard and Barry Environmental, as well as other professional groups. The environmental industry in Southern Michigan and Southern Ontario is an e volving sector which is comprised of companies and organizations that provide environmental technologies or goods and services which: Reduce human health risks and ecological damage; Improve eco-efficiencies and cost-effectiveness in processes; and Address environmental issues and problems. In total, the environmental industry is represented by over 9,500 firms which range from one person operations to large multi-national firms. Presently, environmental firms average over 25 employees, with a tot al of average revenues over $3.9 million. This industry is a large employer of a highly skilled and productive workforce. It is estimated that approximately 221,000 workers are employed within this industry which is 1.6% of total state employment. The environmental market in Michigan and Southern Ontario is valued at an approximate $25.8 billion. Key leading sectors within the environmental industry include environmental consulting/engineering like Terra Engineering; waste management; water supply and purification and waste water treatment. Overall, the environmental industry and Southern Michigan and Southern Ontario is a growing one. Market drivers in the environmental industry include such pressures as: pollution prevention and eco -efficiency; performance in managing complex environmental issues and human health. Today, citizens, governments, businesses, lenders, investors, and organizations are becoming more aware of and placing more pressure on the importance of a healthy environment. As a result, there is a growing demand for environmentally sound processes and solutions to possible present and future problems. The entire market has identified the increasing demand for environmental services since similar driving forces as the mainstream market have taken effect. This is due to a number of key factors such as: Increasing number of business start ups and expansions in all industry sectors including primary industry; Municipalities are more aware and demand tightened environmental safe policies and procedures for the governments, businesses and organizations; Major funding programs in Southern Michigan and Southern Ontario require environmental assessments and or third party reviews in order to meet federal/state legal requirements and progra m criteria before funding is disbursed. The company's knowledge and awareness of the driving forces behind the increasing demand for environmental services like Terra Engineering by it's municipal and community markets will remain invaluable. Presently, t he need for environmentally specialized firms and businesses to fulfill this need is apparent and has become increasingly large. Terra Engineering will differentiate its company in the marketplace in 3 specific ways; the owners, Norm Johnson and Rupert Smith have been employed in the environmental industry for over 20 years and have unmatchable skills and knowledge of the industry; centralized location to the company's target market allows for full market reach and serviceability and a vision of growth for the company's market that will enable the application of contemporary tools to determine solutions for the surrounding areas. Copyright 2010 by DeVry Educational Development Corporation. All rights reserved. No part of this work may be reproduced or used in any form or by any means - graphic, electronic, or mechanical, including photocopying, recording, Web distribution or information storage and retrieval systems - without the prior consent of DeVry Educational Development Corporation. Page 3 of 4 qattachments_86bae0f4ec858c4883ec783c1ac1876e8abe4aab DeVry University Course Project BUSN278 Budgeting and Forecasting Copyright 2010 by DeVry Educational Development Corporation. All rights reserved. No part of this work may be reproduced or used in any form or by any means - graphic, electronic, or mechanical, including photocopying, recording, Web distribution or information storage and retrieval systems - without the prior consent of DeVry Educational Development Corporation. Page 4 of 4 qattachments_86bae0f4ec858c4883ec783c1ac1876e8abe4aab