StudentShare solutions
Triangle menu

Laundromax - Case Study Example

Nobody downloaded yet

Extract of sample
Laundromax

With my financial management role, my plan for financing would start with personal owner equity. This would act as a show to outside investors of the personal trust that the founders have in the growth and success of their business and hence worth a further inducement for additional outsider investment. In order for Laundromax to attain self-sufficiency as a company, 100 stores must be established at an estimate of $500,000 per fully functional and operational store. This puts the total capital required to attain self-sufficiency at an estimate cost of $50,000,000. With such heavy initial capital outlay, personal equity would not be sufficient to meet this expenses and hence the vision of the business. I would result to investment capital with major focus on investment banks and venture capital firms who are willing and able to raise a major part of the required capital in return for an equivalent stake in the company’s assets. ...
The rate at which the funds should be infused in the business will be greatly dependent on the strategic expansion motive of the management. In this case, from the given projections, the 100th store may be opened sometime in the 4th year of operation with the highest number of store opening before the 100th being in the third year. Thus, according to the historical information and the forecasts presented, the preferable allocation of capital according to the number of stores required would be $4,500,000 in the first year, $11,500,000 in the second year, $25,000,000 in the third year and $14,000,000 in the third year to attain the 100th store mark comfortably. The above estimations of the capital requirement of the business in its various stages of development are not sufficient financial projections to be able to convince potential investors of the financial soundness of the business and to give them assurance of the security of their investment. In order to present a proper financial plan in their business plan, Reese and Mounger should include certain financial forecasts including: Cash flow forecasts, A break-even analysis, A projected statement of profit or loss, and A projected statement of financial position. There in, the cash flow forecasts give a view of the expected cash inflows and out flows to and from the company, the break even analysis shows the expectation of future profit by the company detailing the point at which the company would equate expenses to revenues generated, A projected statement of profit or loss details the expected revenues and expenses to the company, while the projected statement of financial position shows an expectation of the company’s holding of assets and liabilities. With these projections, Reese and Mounger would have a ...Show more

Summary

Generally, during the development stage of businesses, financing is a major critical success factor. As pertains to the Laundromax case, whose major goal was to revolutionize the laundry industry and seek nationwide recognition, the company would hence have to incur major capital, corporate and development expenditure. …
Author : fkris
Laundromax essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Laundromax"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Absence of Faith - Flannery O'Connor's A Good Man is Hard to Find
The foundation stone of all her stories is Christian spirituality. But the level of progression of each character is different and they react to situations as per their understanding of the challenges they face.
3 pages (750 words) Essay
Ranking of the Top 10 Undergraduate Programs in Hospitality
Hospitality management is one of the courses that reside within the sphere of influence of business studies. Although the program of study of hospitality management is within the scope of business management studies and may imbricate and overlap it, yet, they differ and are distinguishable with each other.
5 pages (1250 words) Research Paper
Krohn et al. (2011). The Cascading Effects of Adolescent Gang Incolvement across the Life Course
Here, in this particular study, the behavior of gang involvement is explained to have an impact on the entire life course of an individual. What is the research question in this article? The research question in this article is what impact gang involvement that happens in adolescence, has on the adult life chances and adult criminal behavior of individuals.
5 pages (1250 words) Research Paper
The Libyan Civil War
This paper analyzes the driving forces behind the extension of the war along with the analysis of the main actors acting as the chief influence machine coupled with their aim, interests, capacities and different types of relation at different points of time. The second part deals with the different aspects of conflicts and peace including several negotiations and their impacts and the after effects of such negotiations inculcated with them along with a brief ex-post and ex- ante analysis.
8 pages (2000 words) Essay
Good health
The author emphasizes that one must put effort in ensuring that they remain healthy at all times through observing and following healthier eating habits, frequently engaging themselves in physical exercise, furnishing their spirituality, making positive personal choices, getting mutual support from family and friends, and brain activity.
4 pages (1000 words) Research Paper
Core Competence of Sharp Corporation
Prahlad and Hamel have already documented in their 1990-article in Harvard Business Review that in technology-intensive companies, core competencies were largely responsible for their successful performance by concentrating on their technological capabilities.
12 pages (3000 words) Essay
Marketing planning
bove two graphs are that the customers of the company as well as revenues are increasing at an increasing rate, therefore it can be predicted that the demand of the product and revenues would further increase in the years to come. Innocent Drink has been able to make a mark in
4 pages (1000 words) Essay
Public Policy
The control and use of Marijuana had gone out of hand, forcing the federal government through a congress agreement, to develop acts that could minimize its use. This
2 pages (500 words) Essay
Illiad, Antigone, and Bhagavad Gita
Indeed, Iliad mainly foregrounds the actions about the Trojan War; Antigone portrays Creon’s abuse of power while The Bhagavad Gita exposes philosophical models in the Hindu society. Considering his commitment to defend his nation and the sacrifices
5 pages (1250 words) Essay
Identification of Clostridium difficle
During the 2000s, cases related to Clostridium difficle have been on the rise globally. Clostridium difficle mostly leads to the development of
12 pages (3000 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Click to create a comment