1)Start up means to initiate or establish any business which requires hard- work, dedication, money and some sleepless night( definitely with the thought of execution of idea or business plan).

Once you get your company off the ground, you need to work hard to keep it going each year.

As per my opinion, there are some major steps need to be btaken for start- up.

1. Make a business plan- A proper business plan is required for start-up. Business plan is the written description of company' s future. One outline which explain what to do and how to do. It depicts the first 3 to 5 years of business strategy.

2. Funding- Second most important stepnis to arrange adequate capital. The start- up cost will vary from industry to industry. So, company may require more or less funding depending on the situation.

82% of business fail due to cash flow problem So you must have proper planning for arranging the fund as well as you should have backup plan for arranging the fund.

3. Accompany of right people- Business is not a easy task and an individual is not enough for executing any business plan. So you need some help while launching a start up company.Some staff and managers are required for running the business smoothly.

Suppose we are going to start a restaurant we would need servers, kitchen staff, bartenders and managers.

4. Location finalization and build a website- Startup company needs a physical address and website address.

Whether it is offices, retail space or a manufacturing location you need to buy or lease a property to operate the business.

5.Requirement a marketing expert- You need a marketing expert who must be aware with different marketing strategies and techniques of digital marketing for promoting the product/launch of new product.

6. Build a customer base-Getting a customer to make a purchase is the major step to acquire customer and maintain client base should be main priority. They are lifelines of business.

Primary source of funding:

Sources of financing for small business or startup can be divided into two parts.

Equity financing and Debt financing

Some major source of funding the business

1. Personal saving- This is the most appealing source of financing.

2. Family and Friends-;The aim of this type of funding is to help kickoff a business to a point where it can seek and get other types of funding.

3. Business Angels- They are wealthy individuals who will provide funding in exchange for a share of equity in the business.

4. Venture capital- Venture capital are investors who put in a considerable amount of money in exchange for equity in the business or get returns when the business goes public or is acquired by another company.

5. Bank loans- This is the most popular source of funding.

6. Government assistant- This is a small business loan which is provided by government for assisting a new business.

2)

Loan = Php 8000

Loan Payment made today = Php 3200

Loan balance today = Loan - Loan Payment made today

Loan balance today = Php 8000 - Php 3200

Loan balance today = Php 4800

Loan Payment made at the end of 4 years = Php 1800

Loan balance at the end of 4 years = (Loan balance today * (1 + interest rate)^{no of periods}) - Loan Payment made at the end of 4 years

Loan balance at the end of 4 years = (Php 4800 * (1 + 4%)⁴) - Php 1800

Loan balance at the end of 4 years = Php 5615.32 - Php 1800

Loan balance at the end of 4 years = Php 3815.32

Loan Payment made at the end of 6 years = Php 600

Loan balance at the end of 6 years = (Loan balance at the end of 4 years * (1 + interest rate)^{no of periods}) - Loan Payment made at the end of 6 years

Loan balance at the end of 6 years = (Php 3815.32 * (1 + 4%)²) - Php 600

Loan balance at the end of 6 years = Php 4126.65 - Php 600

Loan balance at the end of 6 years = Php 3526.65

Loan balance at the end of 7 years = (Loan balance at the end of 6 years * (1 + interest rate)^{no of periods})

Loan balance at the end of 7 years = (Php 3526.65 * (1 + 4%))

Loan balance at the end of 7 years = Php 3667.72

Last payment to be made to close the loan = Loan balance at the end of 7 years = Php 3667.72

3)

 Prepare budgeted income statement for 2018

The below table is the budgeted income statement of Easecom Company along with the basis of arraiving at the numbers -

Income	31st Dec 2017	31st Dec 2018	Basis for 2018
$ in '000	$ in '000	$ in '000	$ in '000
Revenue
Equipment	7,000		8,008		2017 revenue*1.04*1.10
Maintenance cost	1,200		1,248		2017 revenue*1.04
Total Revenues		8,200		9,256
Cost of Goods sold		4,200		4,586	2017 cost *1.05*1.04
Gross margin		4,000		4,670	Revenue - Cost of Goods sold
Operating Costs
Marketing	690		940		2017 cost+$250k
Distribution	150		156		2017 cost*1.04
Customer maintenance	1,100		1,280		2017 cost+$180k
Adminstration	920		920		Same level
Total Operating Expenses		2,860		3,296
Operating Income		1,140		1,374	Gross margin - Total operating costs

2) How well does the budget align with the Easecom Company's strategy -

The company's financial performance had been on a declining trend due to market downturn. However, for 2018 the economy is expected to bounce back due to which both the selling price and units sales are expected to increase for Easecom. The company has included the cost for increasing the customer satisfaction which does aligns with the Easecom  overall strategy.

3) How does preparing the budget help Easecom's management team better manage the company?

• Budgeting helps in estimating revenue and plan for expenditures. This ensures that Easecom restricts its spending that are not a part of the budget.
• Budgeting also ensures that the cash available with the company is spent on those expenditures that aligns with the strategic objectives of the business.