Budgeting & Forecasting Assignment Example | Topics and Well Written Essays - 750 words

Budgeting & Forecasting - Assignment Example The restaurant is intended to sell diverse products, which include buffet, pizza, soup, sauces and desserts. In addition, the restaurant will have a self-service soda bar. Although there are other companies such as McDonalds serving the area, the prices of their products are not affordable to most people in Florida. Moreover, these companies do not have physical locations in the area but rely on suppliers. This means that Papa Geo has the potential of competing effectively in the market and possibly gaining competitive advantage (Jeffries & McGrath, 2008). The fact that the products of the company are rare in the market consequently highly demand makes the company more competitive. This will ensure that the company records high sales volume. Moreover, the company will register high sales volume because they produce variety, which gives consumers the ability and freedom of choice. Finally, the company strategy is effective because it attracts children too, which will boost sales since it will be assumed to a family restaurant (Jeffries & McGrath, 2008). The offers given by financial lending institution will be enough in setting up the business and repayment period is reasonable, which will grant the owner the opportunity to repay comfortably. Therefore, the business can be set up but it requires effective analysis and forecasting due to uncertainties in the business environment. Proper financial budgetary planning is fundamental in achieving the company’s strategy. Sale forecast forms the most critical part of this budget proposal because, it is through proper and accurate forecasts in sales that the entrepreneur would be able to determine the amount to repay either in monthly or annual basis. The above sales forecasts are made with the assumptions that one unit in the company goes at $7, and each individual in the 15-minute area purchases one unit