lim sei kee @ ck. allocate the time you need to do certain parts of the business plan - use...
TRANSCRIPT
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DIP - Business Plan (E)
Lim Sei Kee @ cK
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Allocate the time you need to do certain parts of the Business Plan
- Use calendar / Planner / Diary / Journal- Create a deadline for specific tasks
If you are doing in a group, allocate specific tasks for a specified person
Plan to make your Business Plan
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Clear Concise Organized Well laid out Natural Positive Well interpreted facts Do not jump to conclusions Show sources Proofread Make it perfect
Writing tips
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15 – 20 slides 15 – 20 minutes Keep it simple Make it to the point Tell a story Dress professionally Practice
◦ In front of mirror◦ In front of someone
Presentation Tips
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Introduction (breaking the ice) Existing problem/pain/situation Solution (Product/service) you are providing Market research and strategy Who are involved How you can succeed
Tell a story
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Its not just an idea, but a work in progress You have the numbers to back you up You have qualified people involved Be passionate in your presentation
Quick tips
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Financial planning means to prepare the financial plan. [@ capital plan]
A financial plan is an estimate of the total capital requirements of the business.
Financial plan gives a total picture of the future financial activities of the business.
Introduction
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Taking a commercial business as the most common organizational structure, the key objectives of producing a financial plan would be to:
• Create wealth for the business • Generate cash, and • Provide an adequate return on
investment
Financial Plan
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Accounting looks back in time, starting today and taking an historical view.
Business planning or forecasting is a forward-looking view, starting today and going forward into the future.
FINANCIAL PLAN IS NOT ACCOUNTING
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The working capital cycle
Inflows Outflows
Cash sales to customers
Receipts from customers who were allowed to buy on credit (trade debtors)
Investment by shareholders
Purchasing finished goods for re-sale
Purchasing raw materials needed for the manufacturing of the final product
Paying salaries and wages and other operating expenses
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The business uses cash to acquire resources (assets such as stocks)
The resources are put to work and goods and services produced. These are then sold to customers
Some customers pay in cash, but others ask for time to pay. Eventually they pay and these funds are used to settle any liabilities of the business.
And so the cycle repeats
Cash flow can be described as a cycle:
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The cash needed to make the cycle above work effectively is known as working capital.
Working capital is the cash needed to pay for the day to day operations of the business.
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Financial statements: A. the income statement, B. the cash flow projection, and C. the balance sheet
PLUS, a brief explanation/analysis of these three statements.
3 important financial statements
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The Income Statement shows your Revenues, Expenses, and Profit
Revenue - Expenses = Profit/Loss.
(A) Income Statement
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(B) Cash flow projection Opening balance -How much cash business has at
start of time period
Cash inflows - How much cash is coming into business from product sales, sales of assets, loans from bank, and other sources of finance
Cash outflows - How much cash is going out of business, such as expenses, wages, raw materials, buying new machinery, and dividends
Closing balance - How much money is left at end of month
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The Balance Sheet is the last of the financial statements that you need to include in the Financial Plan section of the business plan.
It summarizes all the financial data about your business, breaking that data into 3 categories; assets, liabilities, and equity.
(C) Balance Sheet
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Assets are tangible objects of financial value that are owned by the company.
A liability is a debt owed to a creditor of the company.
Equity is the net difference when the total liabilities are subtracted from the total assets.
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Start with a sales forecast. Create an expenses budget. Develop the three financial
statements.
Your financial plan: