Crafting a

Financial
Plan
Financial Plan
is plan that details where the entrepreneur wants to take his
or her business in terms of profitability , cash flow, and net
worth. The basic rule for a financial plan or a financial
projection of a business is that it should be neither overly
optimistic nor overly cautious. In short, it must be realistic.
Let me show you a sample of a financial plan.
 Projected Income Statement for Year 1 to 4.
Year 1 Year 2 Year 3 Year 4
Mang Bagoong P900,000.00 P990,000 P1,138, 500 P1,366,200
Sales at P90 per
bottle

Less: Cost of Sales (P549, 200) (P604, 120) (P694,738) (P833,686)

at P54.92 per bottle

Gross Profit P350,800 P385,880 P443,762 P532,514

Less: Marketing (P167,704) (P170,000) (P170,000) (P170,000)
Expenses
Less: Income (P23,333) (P23,333) (P23,333) (P23,333)
Operating Expenses

Net Income Before P159,763 P192,547 P250,429 P339,181

Tax
Less: Income Tax (P31,953 (P38,509) (P50,086) (P67,836)
Net Income P127,810 P154,038 P200,343 P271,345
SAMPLE BALANCE SHEET
What I have learned so far?
Prepare a balance sheet for the product ro service
business you have chose. use a separate sheet of paper
for this activity. (use your product in
entrepreneurship)