Kudler Opening Budget: Making a Budget
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The business is a doggy day care that boards dogs and trains them. Please help making a budget for this assignment.
Resources: Kudler Opening Budget
Illustrate how your venture would perform by estimating the revenue and expense to calculate operating profit or loss. Include estimates of your venture's main sources of revenue and the expenses expected in the main cost categories such as the cost of goods, sales and marketing, labor, rent, maintenance, and any other significant expenses.
Illustrate your venture's startup costs by estimating a preopening budget--also termed development budget--that includes startup costs such as building and construction, Web site development, preopening marketing, equipment, merchandise, preopening operations, research and development, working capital, and any other significant preopening expenses. An example of a preopening budget may be found in the materials listed on the course page for the University of Phoenix student Web site for Week Two named Kudler Opening Budget.
Develop financial planning goals by illustrating how your venture would be initially funded by using cash on hand, debt, venture capital, or a combination of these. Use a mortgage calculator found on the Internet and calculate your loan payments. Include these expenses in your Operating Budget. Use the information below to help in your calculations:
Building and Construction Estimation*
Remodeling Fees $200 per Square Foot
New Building Construction Fees $450 per Square Foot
*Multiply square footage of small business by fee for estimation.
Interest Information
10 Year bank Note (Debt) 7.5% Interest
5 Year Venture Capital Loan 15% Interest
Examples of Profit Split for Venture Capital Partnerships*
Example 1
Venture Capital Investment 1 $300,000
Cost to Develop Business 1 $1,000,000
Venture Capital Profits 1 30% of Business Profits
Example 2
Venture Capital Investment 2 $500,000
Cost to Develop Business 2 $2,000,000
Venture Capital Profits 2 25% of Business Profits
*Profit split is commensurate with the ratio of investment.
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Solution Summary
The solution discusses Kudler opening budget.
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Doggy Hauz: Doggy Day Care
Introduction
The idea of operating a day care for dogs which provides accommodation and training services came to me when I went for a two-week vacation out of the country and my usual dog sitter wasn't available to take care of my dog while I were gallivanting about. I had a difficult time looking around for alternative accommodations for my dog which led me to an online forum for dog lovers and owners. I found out that my situation wasn't unique - that there are many who had encountered the same problem.
I started asking around on whether a business which boards and trains dogs would be favorably viewed by my target customers, dog lovers and owners. Surprisingly, almost all of the people I've talked to told me they would avail such service. Hence, Doggy Hauz was born.
Preopening budget
While looking around for the best location to put up Doggy Hauz, I was debating on whether building a new site or remodeling an existing shop would be more beneficial for me. Luckily, while I was walking with my dog on a path we haven't taken before, I saw a for rent sign on the window of the local donut shop. Apparently, the Korean owners decided to move back to Korea and start over there rather than tough it out in such a challenging economic situation here.
The size of the place, 133 sq. ft., is just right for Doggy Hauz and the location is perfect. I just need to do some remodeling to make it ready for my business.
Below is the estimated ...
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