BUSINESS PLAN_A GENERAL OVERVIEW

A description of how the business will be
finance and how it will maintain a sound
financial position. It gives overall picture of the
total cost that is needed to run the entire
business venture. The financial plan is
prepared after all budgets pertaining to
marketing, operation, and administration are
completed. The crucial aspects of financial
plan are the total project cost, sources of
financing and preparation of pro forma statement.
‣ Project implementation cost schedule
‣ Source of finance schedule
‣ Hire purchase
‣ Loan amortization (Repayment)
‣ Fixed asset depreciation
‣ Pro forma cash flow statement
‣ Pro forma income statement/profit & loss
‣ Pro forma balance sheet
PROJECT IMPLEMENTATION SCHEDULE
The initial amount of investment that needed to start a new business
Summarizes the cost of buying fixed assets, working capital requirements, as well as
expenditures
Covers short term expenditure and short term expenditure
‣ Capital expenditure - Land, building, machinery, transportation, furniture, fixtures
& fitting
‣ Working capital – Part of operating capital. Cover expenses in administrative,
marketing, & operational
‣ Other expenses – Other costs appear for implementing the proposed venture (Eg:
business registration fee, road tax, stamp duties, training fees, & business licence)
‣ Contingency allowance – Additional funds set aside for items that maybe needed
during the implantation of the project. Allocate at least 5% for the contingency
allowances
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