The sportswear industry is a competitive market with many established brands competing for global market share.
Recently a new venture called Kings Sports ltd. was formed. The USP of the company is to offer a fully customisable rugby kit to their customers and entering a niche market by focusing especially on university, small and low division rugby clubs.
The decision to enter this niche market was made due to high entry barriers within the general sportswear market from established companies. With Nike, Adidas and Puma ranked, 26, 62 and 97 respectively as the top 100 global brands, new entrants will be forced to place a high level of investment into the business to compete, which is not available to the owners.
A complete and comprehensive financial plan was produced.
The following methods and theories are applied:
a) Clearly outline the aims and objectives of the business, indicate what the unique selling point of the enterprise is and the legal form (company or partnership).
b) Detail the main costs of the products or services provided and establish the break even point for those products or services including a sensitivity analysis. You must indicate how you have arrived at the price of your product or service.
c) Produce a detailed monthly cash flow for the first three years of the business.
d) Provide a comprehensive investment appraisal for any capital purchases that need to made (machinery, transport, or buildings).
e) Produce annual budgeted income statements, balance sheets and cash flow statements for the first three years of the business. Showing a range of financial ratios from year to year so that an appraisal of the business may be made.
f) Indicate the level of funding required and what form that funding will take.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Aims and Objectives
- Funding Requirements and Company Structure
- Costing and Pricing. Break Even Analysis
- Monthly Cash Flows and Investment Appraisals
- Production of Budgeted Statements
- Ratios
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The text aims to provide a comprehensive financial plan for a new business venture, Kings Sports Ltd, focusing on a niche market of university and smaller rugby clubs. This plan outlines the business's aims and objectives, costs, break-even analysis, cash flow projections, investment appraisals, and financial statements.
- Financial planning for a new business venture
- Market analysis and identification of a niche market
- Costing, pricing, and break-even analysis
- Cash flow forecasting and investment appraisal
- Financial statement production and analysis
Zusammenfassung der Kapitel (Chapter Summaries)
The text begins by introducing the highly competitive sportswear market and Kings Sports Ltd's unique selling point: fully customizable rugby kits. The text then details the company's aims and objectives, including establishing a strong online presence and becoming a reputable brand known for its customizability and quick delivery.
The next chapter examines the company's funding requirements and legal structure, exploring the balance between debt and equity financing. It also delves into the company's costing and pricing strategies, highlighting the importance of considering the chosen market.
The text then moves on to discuss the company's cash flow projections and investment appraisals, stressing the importance of thorough analysis and a clear understanding of the cost of capital. Finally, the text presents the company's budgeted income statements, balance sheets, and cash flow statements for the first three years of operation. This section includes a comprehensive analysis of various financial ratios to assess the business's financial health.
Schlüsselwörter (Keywords)
The text focuses on key financial concepts such as financial planning, budgeting, cost analysis, break-even analysis, cash flow forecasting, investment appraisal, and financial statement analysis. It also explores the importance of understanding market dynamics, developing a unique selling proposition, and effectively managing debt and equity financing.
- Citation du texte
- Raphael Städtler (Auteur), 2010, The financial forecast of a start-up business within the sports industry, Munich, GRIN Verlag, https://www.grin.com/document/170892
