6.

0 FINANCIAL PLAN
A financial plan is a comprehensive evaluation for the company or investors to predict
the future cost or profitability. The financial section is composed of the start-up cost, working
capital and start-up capital and financing.

6.1 START-UP COST

In order to start a new business, entrepreneur must concern the cost to start a new
business. Start-up cost of a business can be a problem if not being manage properly since it is
important to know whether the business feasible or not. Here is the detail of the start-up cost
for I-Secure Application.

START UP COST RM
Capital Expenditure: Administrative
Land & Building
Business fixtures and equipment 15000
Office renovation 3500
Motor vehicles 9500

Capital Expenditure: Operations

Machinery 7000

One Time Start Up Expenditure

Installation of fixtures/equipment 10000
Starting inventory cost 4000
Office supplies 4000
Legal and professional fees 6000
Advertising for opening 7000

Other Pre-operations Expenditure

Deposit (rent, utilities, etc) 5500
Business registration & licenses 2000
Insurance & Road Tax for Motor Vehicles 3500
Other Expenditure 2500

Start-Up Costs 79500

 Start-up cost for I-Secure Application is RM 79,500 which is incurred during the
process of creating our nee business.

6.2 Working Capital

WORKING CAPITAL (MONTHLY) RM

Marketing
Advertising 1500

Administrative
Salaries and Wages 20000
Rent 1800
Utilities 1000
Office Supplies 1500
Insurance 900
Office Maintenance 1100

Operations
Salaries & Wages 7000
Factory Maintenance 3000
Purchase of raw materials/ goods 3000

Other Expenditure
Renewal licenses 1800
Road tax & insurance 2000

44600
Total Working Capital

Working capital represents the monthly amount of initial expenditure required to

finance the daily operation until the business get its first sale. The amount of working capital

is therefore dependent upon the period until the firm can generate enough sales to cover its

short-term expenditure.
ESTIMATED START UP CAPITAL 124,100

FINANCING
Equity: Share & Venture Capital 94,100
Loan 30000
Total Financing 124,100
Annual Interest Rate (%) 2.5
Loan Duration (years) 5