Team 3 Financial Analysis Of Startup Businesses Team

Team 3 Financial Analysis Of Startup Businesses Team 3 Members Abdulaziz Bawany Brett Jolley Timothy Njuguna Eric Ornelas Ryan Thomas

Agenda Company A is a startup traditional movie rental business where patrons have to come in and rent movies. Company B is a startup ECommerce business where patrons have accounts online and rented movies are delivered by mail. This presentation will provide a cash flow based comparison of starting Traditional vs. ECommerce businesses E-Commerce Traditional Initial Analysis Proposed Topics Enhancements Summary

E-Commerce Table of Ecommerce Startup Costs Start-Up Costs – Franchise Fee – Affiliation Fee – Building (Both; Traditional Store, Warehouse) – Initial Costs of purchasing Videos (DVDs, VHS (maybe/maybe not) – Shelving Units Monthly – – Cash flows Rent Employee wages Utilities Shipping costs Expected income – Movie rental income – Expected growth of business

Traditional Table of Traditional Startup Costs Start-Up Costs – – – Franchise Fee Affiliation Fee Building Initial Costs of purchasing Videos (DVDs, VHS) Shelving Units Monthly Cash flows – Rent – Employee wages – Utilities Expected income – Movie rental income – Expected growth of business

Initial Analysis

Proposed Topics Proposed topics/elements that we will research and compar This will be the bulk of our final presentation ANTICIPATED CASH FLOW IF IS BUSINESS EXPECTED TO LAST INDEFINATELY Startup Costs Operating Costs Expected income Net Present Worth

Enhancements • Options we would like to research, or think may be fun that we will suggest, and do if we have extra/enough time. • Or additional company aspects such as value chain costs or other distributing costs and other capitol requirements

Summary Traditional Business Startup Costs VS. E-Commerce Business Startup Costs • E-Commerce/Traditional business is a better investment? • E-Commerce/Traditional businesses require more startup resources?