Business Plan

7. Financial Plan
a. Cost of Project and Means of Finance

Existing Proposed Total

Description Equity Borrowed Equity Borrowed Equity Borrowed

Land
Building
Machinery & Equipment
Furniture & Fittings
Motor Vehicle
Other Equipment
Sub Total
Permanent working capital
Contingencies
Grand total

b. Cost of Project and Means of Finance

Existing Proposed Total

Description Amount % Amount % Amount %
Equity
Borrowed
Total

c. Permanent Working Capital Computation

Item No of Raw material Fixed and Variable Total

days cost
Raw material

Work in Progress

Finished goods

Debtors

Gross working capital requirement

(Less) creditors

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Net working capital requirement

d. Projected Profit and Loss Account

Note Year 01 Year 02 Year 03

1. Sales

2. Cost of Sales

(-) Less (1 - 2)

3. Gross Profit

4. Admin Cost

5. Marketing & Distribution Cost

(-) Less [3 - (4+5)]

6. Profit before interest & depreciation

7. Interest Expenses

8. Depreciation

(-) Less [6 - (7+8)]

9. Profit before tax

10. Income Tax

(-) Less (9 - 10)

Net Profit

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Projected Cash Flow

Mont Month Month Month Month Month Mont Month Month Month Month Month Total - Total - Total -
Description
h 01 02 03 04 05 06 h 07 08 09 10 11 12 Y1 Y2 Y3

RECEIPTS

Sales

Loan Funds

Sub Total
(a)

PAYMENTS

Purchases

Raw Material

Wages

Fuel

Electricity

Water

Packing Material

Transport

Rent

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Sub Total
(b)

Surplus/ Deficit (a)-(b)=(c)

Balance Carried Forward

(d)

Cumulative Balance ( c ) + ( d ) =
(e)

Loans Repayments (f)

Balance Brought Forward ( e ) - ( f )

Projected Ratios

Ratio Year 01 Year 02 Year 03

Gross profit ratio - (Gross Profit / Sales) *100

Net profit ratio (Net Profit / Sales) *100

Return on Investment (ROI) - (Net Profit / Investment) *100

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8. Risk Management

Type of Risk Method of Risk Management

9. Key Assumptions

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