FINANCIA

L PLAN
 FINANCIAL BUDGETS
Types of Budgets
1. START-UP COSTS BUDGET
Also known as Pre-operating Expense Budget
 include one time fees and working capital
requirements
The company should determine how many months it
will cover (3- 5 months)
 FINANCIAL BUDGETS
2. CAPITAL BUDGET
 Shows the company’s investment in long-term assets.
 LONG-TERM ASSETS : land and land improvements,
construction of manufacturing plant, purchase of
equipment/ machinery
 Becomes the foundation of fixed assets/ long-term assets
section of the company’s balance sheet.
 FINANCIAL BUDGETS
3. OPERATING BUDGET
 Shows the recurring expenses of the company
needed in the course of its operations
 Cost and Expenses in Operating Budget :
COGS, salaries and wages, utilities, marketing
and advertising expense, rent, transportation
costs, and taxes
COMMON
SOURCES
OF FUNDS
5
SOURCES OF FUNDS

PERSONAL FUNDS FAMILY AND FRIENDS

EQUITY FINANCING :
DEBT OR LOAN Common Stock OR
Preferred Stock
VENTURE CAPITAL ANGEL INVESTORS
FIRMS
ALTERNATIVE SOURCES OF FUNDING

6
SOURCES OF CAPITAL
MEMBERS SHARE

Dela Cruz, Juan P 2,000

Basio, Pedro P 2,000

Deseo, Joaquin P 2,000

Sepnio, Andres P 2,000

Tanglao, Jaime P 2,000

Ursula, Gregorio P 1,500 + P 500 (shared asset)

TOTAL P 12,000