| Course | MAN-2300 Introduction to Entrepreneurship |
|---|---|
| Module | Module 4 |
| Paper type | Module 4 written assignment: financial analysis and financing the new venture |
| Length | About 550 words, 4 pages |
| Format | APA 7 student paper |
| School | Thomas Edison State University |
| Program | B.S. in Entrepreneurship |
| Updated | October 2026 |
Free sample paper for MAN 2300 Module 4
Funding the Fleet: Startup Costs, Break-Even and Financing for a Paddle Tour Company
Student Name
B.S. in Entrepreneurship, Thomas Edison State University
MAN-2300: Introduction to Entrepreneurship
Mentor Name
Month Day, Year
Funding the Fleet: Startup Costs, Break-Even and Financing for a Paddle Tour Company
Startup Costs
| Item | Cost |
|---|---|
| 24 kayaks and 12 paddleboards | $27,600 |
| Paddles, life jackets and safety gear | $3,600 |
| Used cargo van and trailer | $22,500 |
| Dock lease deposit | $3,000 |
| Insurance, first-year premium | $6,500 |
| Website, booking system and launch marketing | $5,000 |
| Licenses, permits and legal fees for the LLC | $800 |
| Total | $69,000 |
Pro Forma Income, First Season
Revenue is estimated at 2,400 rentals at an average of $38 and 900 tour guests at $65, for $149,700. Variable costs are about $4 per rental, for cleaning, wear and card fees, and $12 per tour guest, for guide pay above the base schedule and supplies, for $20,400. Fixed costs, including seasonal payroll, the dock lease, insurance, van operation, marketing and depreciation, total $94,000. Pretax profit is about $35,300.
Break-Even Analysis
Barringer and Ireland (2025) present break-even analysis as a way to see how much a venture must sell to cover its costs. Each rental contributes $34 and each tour guest $53. Using last summer's mix, about 2.7 rentals for every tour guest, the average contribution is roughly $39 per customer, so the business breaks even at about 2,400 customers, or roughly 1,750 rentals and 650 tour guests. That is about 73 percent of the projected volume, leaving a margin of safety of about 27 percent. A wet summer that cut volume by a third would push the business into a small loss.
Sources of Funding
Barringer and Ireland describe a range of funding sources. Personal savings and bootstrapping, such as buying used equipment and leasing rather than buying dock space, reduce the need for outside money. Debt, such as bank loans or Small Business Administration programs, must be repaid with interest but leaves ownership intact. Equity from angels or venture capitalists brings money in exchange for ownership and usually expects rapid growth. Robb and Robinson (2014) studied new firms in the United States and found that external debt, particularly bank financing, was a far larger source of startup capital than outside equity, contrary to the popular image of startups funded by investors.
The Financing Mix
The savings figure is the affordable loss limit set in Module 1, the effectual principle of risking only what one can afford to lose (Sarasvathy, 2001). I rejected equity for three reasons. A seasonal tour business will not grow fast enough to interest angel or venture investors. Equity would cost a share of ownership in a business I want to control. And debt, at a predictable payment of roughly $600 a month on the microloan, fits a business that can project its cash flow. The family loan is documented in writing to protect the relationship.
| Source | Amount | Terms |
|---|---|---|
| Personal savings | $25,000 | The affordable loss limit set in Module 1 |
| SBA microloan through a nonprofit lender | $35,000 | About six years, fixed rate |
| Loan from family | $10,000 | Three years, written agreement |
| Total | $70,000 |
Conclusion
The paddle company needs about $69,000 to start and projects a modest first-season profit with a margin of safety of about a quarter of its volume. Savings, a microloan and a documented family loan fund it without giving up ownership, which suits a small business that will grow slowly. The plan also keeps a cash cushion of about $1,000 above startup costs for early surprises.
References
Barringer, B. R., & Ireland, R. D. (2025). Entrepreneurship: Successfully launching new ventures (7th ed.). Pearson.
Robb, A. M., & Robinson, D. T. (2014). The capital structure decisions of new firms. Review of Financial Studies, 27(1), 153-179. https://doi.org/10.1093/rfs/hhs072
Sarasvathy, S. D. (2001). Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of Management Review, 26(2), 243-263. https://doi.org/10.5465/amr.2001.4378020
What the MAN 2300 Module 4 instructions ask for
The fourth written assignment covers financial analysis and financing. Expect to estimate startup costs, prepare a simple pro forma income statement, compute break-even and compare sources of funding such as personal savings, bootstrapping, loans and equity. Show your calculations and assumptions in tables. Explain why the financing you choose fits your venture's size, growth and risk, and why other sources do not. Seasonal or weather-dependent businesses should test what a bad season would do to the numbers. Use realistic prices from suppliers and competitors, and explain each assumption. If your venture is seasonal or depends on weather, show what a bad season would do to profit and break-even.
How the MAN 2300 Module 4 example is put together
The paper presents startup costs in a table, then a pro forma income statement in the text with variable and fixed costs separated. A break-even section uses contribution margins and the sales mix to find the break-even volume and margin of safety, then translates them into a weather scenario. A funding section compares sources and uses research on how new firms are actually financed. A financing table sets out the chosen mix, and the text explains the rejection of equity. Every number in the pro forma and break-even can be traced to the startup cost table or to a stated assumption. The financing section ends with a clear choice and the reasons for rejecting the alternatives, including the cost of equity in ownership.
Reading the MAN 2300 Module 4 grading rubric
Mentors grade this assignment on correct calculations, reasonable and stated assumptions, sound analysis of funding options and a well-justified financing choice. Papers that compute break-even with a realistic sales mix, and that interpret the margin of safety, show understanding beyond the formula. Using research on startup financing to challenge assumptions demonstrates critical thinking. Matching the financing to the venture's growth prospects shows the financing judgment this module is designed to develop. Mentors also look for a monthly or seasonal view of cash when a business earns most of its revenue in a few months, since profit and cash can diverge sharply. Clear tables and accurate calculations carry much of the grade.
MAN 2300 Module 4 help: mistakes that cost marks
Students lose points by omitting startup costs, by computing break-even with prices instead of contribution margins or by choosing equity financing for a business that will never attract investors. Others present numbers without assumptions. List every startup cost. Separate fixed from variable costs. Show break-even with your sales mix. Explain why your financing fits your business. Document any loan from family or friends in writing, and include its terms in your plan. Check that your financing totals at least match your startup costs, with a small cushion. Round all figures the same way. A free first sample on your own MAN-2300 Module 4 assignment is available on request.
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More MAN 2300 and B.S. in Entrepreneurship sample papers
- MAN 2300 Module 1: Written Assignment: Should a Teacher Start a Paddle Tour Business?
- MAN 2300 Module 2: Written Assignment: A Feasibility Analysis for Ecology Paddle Tours
- MAN 2300 Module 3: Written Assignment: A Business Model and Legal Form for the Paddle Company
- MAN 2300 Module 5: Written Assignment: Growth Options After Two Good Seasons
- MAN 2300 Module 6: Written Assignment: Building the Team and Managing the Paddle Company
MAN 2300 Module 4 questions, answered
Where can I find a free MAN 2300 Module 4 sample paper?
Startup costs of $69,000, break-even at about 2,400 customers and a savings, microloan and family loan mix are worked above.
How is break-even calculated for a business with several products?
Using a weighted average contribution margin based on the expected sales mix.
What is a margin of safety?
How far sales can fall below the projection before the business reaches break-even.
How are most new firms financed?
Research finds bank debt and owners' funds are far larger sources of startup capital than outside equity.
When does equity financing fit a new venture?
When the venture can grow fast enough to give investors a large return, which most small businesses cannot.