An Enterprise and Innovation Institution (EII) has up to £300,000 available to promote
the growth of local businesses and employment in its local area.
A. You are required to identify a new start-up business and seek funding from
the EII for one of the following:
1) Setting up a small hotel/guesthouse,
2) Opening a new gym
3) Establishing a management or technical consultancy business
4) Any other idea you may have to start-up a business (to be agreed)
And write a report to the potential Investor:
(Indicative word length, 3000 words)
You are required to specifically and succinctly identify the following:
• State your business’s Unique Selling Point,
• Undertake an environmental analysis stating clearly the industry sector, any
Industry characteristics? (Maturity, regulations), Industry in numbers? (growth
rate, margins)
• Undertake a Competitive Analysis including a SWOT,
• Key success factors in industry (20 marks)
B. Prepare a 3-year financial forecast
Construct a pro-forma Income statement, balance sheet and cash flow
statement over a period of three years. (You may wish to provide additional
information such as a quarterly forecast, for example, if you expect seasonal
fluctuations in sales.)
Clearly state and discuss what type of performance ratios would be important
to your business. Show your business ratios versus other comparable (if any)
organisation are performing. (40 marks)
C. State clearly the amount of finance you need to borrow for the business
Show clearly appropriate sources of funding (potential for multiple sources).
(10 marks)
