MBA 651 Minor Project 2

Overview

I have attached power points for references and an example of what the project should look like. Also build this project off of minor project one which I have attached as well.

Minor Project 2: Revenue and Expense Projections

Minor Project 2 builds upon the foundation you developed in Minor Project 1 by expanding your financial proposal into a structured, data-supported projection. In this phase, your goal is to identify, categorize, and estimate your business’s revenues and expenses on a monthly basis for the next twelve (12) months.

All financial schedules should be presented in table format, labeled appropriately, and supported by written explanations that clearly state your assumptions and rationale.

Requirements

You are required to:

1. Identify and Quantify All Revenue Sources

• List and describe each source of income your business expects to generate.
• Provide a monthly revenue estimate for each source over a 12-month period.
• Explain the assumptions behind each estimate (e.g., sales volume, pricing, customer acquisition, or seasonality).
• Distinguish between recurring (e.g., subscription, retainers) and nonrecurring (e.g., one-time sales, events) revenues if applicable.

1. Develop a Detailed Expense Structure

• Identify all expense categories your business will incur and provide monthly estimates for each over the same 12-month period.
• Clearly explain your cost assumptions, noting whether each expense is fixed, variable, or mixed.

Include the following major categories and subcategories:

1. Direct Costs / Cost of Goods Sold (COGS)

• List all direct inputs needed to produce or deliver your product or service.
• Include materials, direct labor, and related overhead costs.
• Explain how your COGS changes with sales volume.

1. Operating Expenses

Break down your operating expenses into the following key subcategories:

• Selling Expenses: Advertising, marketing, promotional activities, sales commissions, or other costs directly tied to generating revenue.
• Payroll Expenses: Salaries, wages, benefits, and payroll taxes for employees.
• General and Administrative (G&A) Expenses: Rent, insurance, office supplies, software, utilities, professional fees, and similar overhead costs.
• Other Expenses: Include depreciation, interest, taxes, or any other non-operating or occasional expenses.

1. Presentation and Professionalism

• Use clear and consistent headings, tables, and labels for each revenue and expense section.
• All numerical data should be formatted professionally (e.g., with commas and two decimal places).
• Each line item should have a brief written explanation of what it represents and how the estimate was determined.