Business Plans

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Business Plan – with cash flow projections

We prepare business plans for our clients which enable the management of the business in a more structured manner, providing a road-map of the direction of the business.

The business plan allows the business owner to make adjustments as and when the operations deviate from the desired projections.

The business plan will cover areas of internal strength and weakness within the business, and external opportunities and threats within the market.

Importantly, we analyse the industry within which the business operates as this determines to a large extent, the returns available within that industry.

Our business plan covers the following areas as listed below:

Contents:

  • Executive Sumary
  • Funding Requirements
  • Valuation
  • Company Information
  • Objectives
  • Product Offering
  • Market Analysis
  • Competitors
  • Suppliers
  • SWOT analysis
  • Industry Analysis
  • Five Forces Analysis
  • Competitive Strategy Choice
  • Financial Analysis
  • Projected Financial Statements

Included in the business plan is our cash flow projection model, which produces a 12 month forecast of a business’s profitability, assets & liabilities, and cash flows.

By using this model, the client will be able to determine when and how much external funding will be required, whether this is short term overdraft financing, or longer term loan finance or a combination of both.

The model will be customised to suit each individual client’s business operation.

We provide business modelling for new (startup) and existing businesses that will produce:

  1. An overall business plan
  2. Inter-active forecast balance sheets, income statement and monthly cash flow statements which are generated from input data.
  3. Decisions as to how much to invest via equity and that of borrowed funds are reflected in the different cash flows as a result of repayments and tax allowances under the different choices.
  4. Outcomes that are presented in both numeric and graphic format.
  5. Perform ‘what-if “scenarios and see the effect of each scenario variables.

Cash Flow:

The cash flow projection provides insight into the monthly and annual cash demands of the business, and reveals in which month/s short term funding will be required – no surprises. By modelling various inputs, such as collection terms, supplier payment terms and levels of unit profitability, the cash flow projection will be calculated, including the impact of tax requirements.

Change these inputs and see immediately the impact on the business’ cash generation.

Example Cash FLow Forecast

 

Inter-active modelling:

The model is inter- active and different scenarios can be modelled, to assess the profitability and ultimately, cash flow impact within minutes.
These outputs are then also reflected in graphics which quickly show the areas of concern – in effect “what – if” scenario planning:

Profit & Cash FLow

Forecast Income Statements and Balance Sheets:

Determine the business’s profitability and then represent this information in the form of an Income Statement, with gross profit % levels.

Financial Statements

This model is adapted to our client’s specifics and needs, enabling the client to model their own scenarios as they become familiar with the spreadsheet.