Problem:
Draft a business plan for my photography business
My fees include.....
Studio rental $480 a month
Camera lens $ 2,500 one time fee
Props $2000 one time fee
Photoshop software $200 one time fee
My total start up fees were $2,700
I have 5000 cash on hand to start my business. I need to calculate these formulas and answer these questions....
Complete pro forma financials, i.e., determine how much money you will need for the startup over a two-year period. Be sure to plan this out on a monthly basis over that 2-year period
To calculate this, you must determine your "burn rate," i.e., the amount of money you need on a monthly basis. Your burn rate is the
difference between:
- the amount of revenue you are bringing in and
- the amount of cash you are spending to sustain operations
This requires you to estimate both your expenses and your revenues on a monthly basis for the first 2 years your startup is in existence
Justify all calculations and estimates.