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Projecting Cash Budgets for a New Venture | Assignment Help Online

Variable Costs

The costs of producing the decks are categorized as variable costs because of Amari’s ability to negotiate the price per unit with the supplier (Antle & Bogetoft, 2018). Initially, Amari had negotiated 20 decks to be supplied in December for $20. An additional 70 decks would be provided in February, while the last inventory of 40 decks would be delivered in May. However, the call from his former teacher interfered with his plans, forcing him to have the decks earlier than projected in his plan. These changes attracted a cost of $5 per deck for the supplier to deliver the decks in September. Because of this unprecedented demand, Amari increased the first order to 35 from 20.

Fixed Costs

Amari’s access to Canva subscription would cost him $168 per year, while the business insurance for his new company would see him part with $138 to cater for the first three months. Fixed costs cushion organizations from any unexpected changes that occur in the business environment, enabling individuals to plan adequately in their operations (Liu & Tyagi, 2017). Understanding the changing needs of individuals requires one to overcome the challenges that hinder them from discovering issues that affect their productivity in the business environment.

One-off Costs

One-off costs have a significant impact on the operational performance of the business because of their ability to provide a sense of direction to corporations. Amari is required to pay a one-off expense for Logo Jay, a service that will see him introduce changes to his company logo to suit the fast-paced business environment. Likewise, the cost of registering a business in Canada is $68, which will see him attain the relevant papers to demonstrate his credibility when interacting with other individuals in the corporate world. Besides, the cost of $10 attached to claiming the domain is also a one-off fee that will enable Amari to accomplish his business objectives.

Recurrent Costs

Once an investment has been made, recurrent costs play a significant role in maintaining the operations and outlining various approaches that can be used to discover the changing needs of individuals (Palacios, Khondoker, Achilla, Tylee, & Hotopf, 2016). In this case, Amari’s premium for the business insurance policy is recurring expenditures that will cushion him and his clients in case of any unexpected event taking place in the corporate world. However, a shortage of funds to facilitate the service means that Amari might have problems with the authorities because of his inability to accomplish the set milestones. Amari’s SpeakOn.com domain will need a $5 monthly expense to keep it active and expose his business to the rest of the world.

Costs Directly Related to Products

Notably, the cost of producing and supplying the decks to Amari are controlled by the products and the urgency. In this regard, individuals are expected to identify specific measures that control the nature of operations taking place in the corporate world. Informing the public about the measures that should be taken to develop viable policies is a fundamental approach that should be used to balance the expectations of individuals taking place in the contemporary world (Gupta, 2018). Importantly, the cost attached to Logo Jay is directly related to the product because of Amari’s ability to use the service to develop a visually-appealing logo for his new venture. Similarly, the cost of producing the SpeakOn website and hosting it on the same domain is directly related to the product.

Costs Indirectly Related to Products

Servicing the insurance policy is indirectly related to the product because of the approach used by corporations to comply with the government’s directive. Importantly, organizations are focused on creating an enabling environment that can be used to overcome issues that determine the nature of interactions people can have with their counterparts. Likewise, the Canva subscription is directly related to the product because of its ability to develop features that complement the outcome.

Question Two

Currently, Amari’s ability to access a line of credit worth $10,000 is sufficient for him to manage his operations and expose the corporation to the rest of the world. Given the inability of a corporation to overcome issues hindering them from realizing their abilities, Amari should identify specific approaches that complement his vision in the corporate world. Given the nature of his business, Amari must be ready for unexpected orders from potential clients who demand the product to be delivered within a limited time frame. Handling these orders and meeting people’s expectations is an important aspect that will determine Amari’s ability to succeed in the corporate world. Sustaining specific programs and processes in the corporate world is an activity that should be undertaken by individuals to focus on meeting the evolving needs of individuals and their ability to create a set of viable solutions that address the problems affecting consumers in their surroundings.

Sufficient funding is an essential aspect of business operations because of its impact on the overall performance of an organization in the corporate world. Importantly, businesses strive to access financing from their preferred banking institutions or other lenders that can enable them to discover their changing needs in the business environment (Pekmezovic & Walker, 2016). Currently, Amari’s ability to access a line of credit worth $10,000 is enough to facilitate his operations and develop suitable products that appeal to the needs of consumers. Given Amari’s ability to cover all expenses, he is in a position where he can influence outcomes in the corporate world. Importantly, developing a platform that demonstrates Amari’s product and how it can benefit learners is an important selling point that changes the nature of interactions between individuals. Satisfying consumer needs have a direct impact on Amari’s ability to obtain more requests because of his ability to solve problems affecting individuals in their immediate environment.

Currently, Amari’s financial status is constrained by the expensive costs attached to a business. Given his inability to operate on a zero budget, obtaining the line of credit is the most viable decision that he should make to overcome problems associated with the cost of managing and running his business. From the money acquired through the line of credit, Amari can even explore the marketing techniques he can use to reach an even wider audience to accomplish his business objectives. Mapping out the aspects of growth will enable Amari to identify various approaches that he can use to overcome problems hindering his growth and development (Duca, 2016). By utilizing his experience in the market and obtaining an upper hand in solving problems, individuals are expected to deliver quality work that appeals to the changing needs of individuals in the corporate world. In this case, Amari is no exception. It should be ready to face the unanticipated outcomes that slow down the process of growth and development for many corporations in the business environment.

Question Three

Amari’s business model is designed to incur the impact of any changes that arise in the business environment. Given his limited experience on how to manage a business, Amari is likely to learn from the different outcomes that emerge in the corporate world. However, Amari is aware of two incidents that might arise during his interactions with other individuals in the workplace. Firstly, the order from his former high school might open up the doors for him to explore the world. Secondly, the request might expose him to a series of problems affecting the performance of his business in the corporate world. Depending on his response in the two scenarios, Amari is likely to experience specific changes that influence his ability to overcome problems hindering him from realizing his expected results. However, the line of credit might enable him to discover specific objectives that expose him to risks of running the business effectively. Having access to finances is one of the most crucial aspects of managing a business because of the need to put measures in place to handle any unexpected outcomes in the business environment.

In this regard, Amari received an unexpected order that disrupted his delivery schedule. Importantly, Amari’s business was planning on a long-term strategy that would see it through the following year’s delivery. However, the unexpected order from Amari’s former high school led to a surge in the cost of producing the decks. While the supplier had committed to the long-term strategy developed by Amari, the new request to deliver the decks in September as opposed to December would interfere with his production schedule, hence the surge in the cost per deck. Surging prices and charges affect the ability of a business to withstand the pressure caused by external factors in the market (Jiansheng, 2018). From this realization, Amari’s decision to accept the line of credit should be determined by the interests of his former institution and his ability to exploit the relationship to accomplish his desired objectives. By avoiding any liabilities such as loans and other financial aspects, Amari stands a chance of accessing his line of credit and achieving specific goals that expose him to different opportunities in the corporate world.

In the event Amari’s sales will be lower than expected, he should not take the line of credit but instead should rely on the income from his first order to establish his dominance in the business environment. On many occasions, individuals are expected to make informed decisions that demonstrate their ability to overcome issues taking place in their surroundings. Based on the inability of many corporations to handle the changing statistics in the corporate world, Amari can identify any gaps and utilize his unique abilities to secure his business (Wårell, 2018). Importantly, making informed financial decisions will have a significant impact on Amari because of his ability to handle different challenges professionally. Balancing the excitement caused by the first order and excitement might contribute towards his success because of the need to avoid any financial liabilities that will slow down growth and development. Even as the world is fast evolving, individuals are supposed to identify any measures they can use to enhance performance. In this case, Amari should evaluate data obtained from the business environment considering the availability of corporations that meet the changing needs of students in the learning environment. Regardless of their approaches, Amari should develop a set of informed decisions that focus on solving the problem by improving the experience of individuals regarding the procedures used to execute tasks in the business environment.

Question Four


Amari’s unique business package equips him with a competitive edge over other corporations that focus on developing solutions for learning institutions. Given his cordial relationship with his former high school, Amari can exploit the association to advance his business interests in the corporate world. Importantly, Amari’s business idea will model him to become an experienced corporate leader who makes decisions because of his intuition. Having interacted with different entities at a young age and solved problems affecting individuals, Amari’s business proposition is likely to have a significant impact on the outcomes recorded in the learning environment.

Speak On appears to be the best learning product that can be utilized to yield positive results. Looking at the interest of learning institutions to embrace Amari’s product, one can identify the impact Amari can have in the business environment. However, he requires to develop an effective strategy that will enable the business to overcome challenges that are faced by budding corporations. Based on his inexperience, he might need to consult different business leaders who understand the need to embrace novelty and patience when introducing a new product in the market. Importantly, Amari should immerse himself in the business and present viable solutions that can be used by different individuals to enhance their presentation skills by boosting their confidence levels.

Amari’s product is viable because of its ability to solve an existing problem. While different corporations might develop products that improve student confidence by enhancing their presentation skills, it might be impossible for them to develop a practical approach such as Amari’s. In this regard, Amari only requires to introduce the product to the market and align himself with various institutions that will share the innovation across the learning environment. Based on his ability to present hope for the realization of multiple objectives, it becomes easier for individuals to discover their passion and overcome specific challenges that hinder individuals from realizing their potential.


Given Amari’s inexperience, his business idea might be overtaken by other corporations once he introduces the product to the business environment. Speak-On is exposed to a series of challenges and risks because of the unpredictable nature of the learning environment. Many institutions might opt to purchase his product to evaluate its functionality, then develop their program that addresses the changing needs of individuals in the institution. However, aligning his desire to pursue his dreams might be overtaken by events, an aspect that is likely to expose him to numerous challenges affecting his learning objectives. Upon taking a close look at his business proposition, Amari’s business model appears pale and less informed because of his out-of-touch approach with the corporate world. Besides, limited funding might expose him to a series of problems that may ruin his dreams of becoming an entrepreneur. Even though the market is not highly saturated, there is a chance for Amari to prove himself by delivering a product that appeals to the changing needs of individuals.




Antle, R., & Bogetoft, P. (2018). Procurement with asymmetric information about fixed and variable costs. Journal of Accounting Research56(5), 1417-1452.

Duca, J. V. (2016). How capital regulation and other factors drive the role of shadow banking in funding short-term business credit. Journal of Banking & Finance69, S10-S24.

Gupta, R. (2018). The impact of government expenditure on economic growth in Nepal. Available at SSRN 3099218.

Jiansheng, L. (2018). The Effect of Money Supply on the Prices of Different Agricultural Products. Journal of Agriculture and Life Sciences Vol5(2).

Liu, Y., & Tyagi, R. K. (2017). Outsourcing to convert fixed costs into variable costs: A competitive analysis. International Journal of Research in Marketing34(1), 252-264.

Palacios, J. E., Khondoker, M., Achilla, E., Tylee, A., & Hotopf, M. (2016). A single, one-off measure of depression and anxiety predicts future symptoms, higher healthcare costs, and lower quality of life in coronary heart disease patients: Analysis from a multi-wave, primary care cohort study. PloS one.

Pekmezovic, A., & Walker, G. (2016). The global significance of crowdfunding: solving the SME funding problem and democratizing access to capital. Wm. & Mary Bus. L. Rev.7, 347.

Wårell, L. (2018). An analysis of iron ore prices during the latest commodity boom. Mineral Economics31(1-2), 203-216.

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Projecting Cash Budgets for a New Venture | Assignment Help Online . (2022, June 28). Essay Writing . Retrieved September 21, 2023, from https://www.essay-writing.com/samples/projecting-cash-budgets-for-a-new-venture/
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