How to develop a pricing strategy for a lawn and landscaping busines

Part 4. Due by Sunday, 11:59pm.

Part 4.  Financial Analysis and Requirements (3 pages single-spaced plus spreadsheets, please include subheading. Please include a link to your spreadsheet or include as attachments to part 4 document.  Thank you!)

1. Describe your pricing strategy for your product/service. Ref. Table 9.1 page 295.
2. Describe the amount of startup funds you will need, where you will get them, and how they will be used.
3. List 3-5 assumptions governing your cash flow projections.  For a startup, assumptions are your “best educated guesses” regarding goals such as how many units you will sell and why, or what your cash flow will be at the end of each month and why, etc. will you pay yourself, what will you pay your employees, will you use full or part-time employees, what services will you outsource or contract out, etc.
4. Complete your startup sources and uses of funds using the “Opening Day Balance Sheet” (third bullet point under “Finance Templates”) on the following website:

http://www.score.org/resources/business-plans-financial-statements-template-gallery(see notes below).

     e.  Develop a one-year projected (pro forma) cash flow statement  using the Cash Flow Statement (12 months) at the (eighth bullet point under “Finance Templates) on the following website: 

http://www.score.org/resources/business-plans-financial-statements-template-gallery  (see notes below).

Notes:

Financial Worksheets on the SCORE website:

The SCORE Opening Day Balance Sheet and Cash Flow Statement (12 months) worksheets are “live” excel worksheets and all you need to do is to (1) read the introductory information, (2) enter your company name and (3) complete the spreadsheets indicated.  Once you get into the website, under “Finance Templates” click the third bullet for the Opening Day Balance Sheet and click on the  eighth bullet for the Cash Flow Statement (12 months). Make certain that you have a full page view in order to see the full page. These worksheets are active and include appropriate formulae.  You just need to insert your projected numbers.  When you click on the worksheet tabs, go to the “review” panel in excel and “unprotect” the worksheets.  This will give you working access and then you will be able to save your completed worksheet as your own in your files. 

Opening Day Balance Sheet (or Sources and Uses of Funds)

The Balance Sheet is a snapshot of your financials at a given point in time.  In this case, it will on the first day of start-up, representing your pro forma projections of how much you will need to start your business and where the funds will come from.  The Balance Sheet is a statement of an owner’s assets, liabilities, and equity and should balance; that is, assets must equal liabilities plus the owner’s equity. This balance sheet is active as well, and your assets, liabilities, and equity should be based on your best case projections and subsequently are reflected in your Cash Flow Statement worksheet.  You just need to insert your numbers and, as above, you don’t have to use all items, if not appropriate to your business.

Cash Flow Statement (12 months)

The Cash Flow Statement worksheet projects your business’ cash inflows and outflows over a given period of time (in this case, one year, Jan. 1, 20xx to December 31, 20xx) and should reflect your assumptions for growth during that time period.  Please indicate your assumptions in an attachment to the worksheets.  Along with your assumptions, include when you project your breakeven point to be; that is, the time period after which you project a profit (and how you calculated your breakeven point).  You do not have to use all items listed in spreadsheet.  Use only those items that may be appropriate to your business.

Note:  I am providing these SCORE “Business Plans & Financial Templates for your convenience.  You can create your own excel spreadsheets or find and use other similar templates.