Finance in the Business plan

1.

FINANCE IN THE
BUSINESS PLAN
Yvette Hartink

2.

YOUR BUSINESS

3.

1ST STEP : INVESTMENT PLANNING
What do you need before I can open my
bikestore?

4.

Bikes, how many?
Building (store), rent or buy?
Store equipment
Cash
…
ASSETS

5.

HOW WILL YOU FINANCE YOUR
ASSETS?

6.

Credit from suppliers
Bank loan
LIABILITIES

7.

Own money
Investment from shareholders’
EQUITY

8.

ONE RULE….
ASSETS = LIABILTIES + EQUITY

9.

INVESTMENT PLANNING / OPENING
BALANCE SHEET

10.

SALES FORECAST

11.

PROFIT?
Revenues - costs

12.

INCOME STATEMENT

13.

SO I MADE A PROFIT, BUT WHAT
ABOUT CASH??
Remember… CASH IS KING!!

14.

CASH FLOW STATEMENT
Sales: 50% in month of sale, 50% month after
Suppliers: one month credit
Rent: pay for 3 months in advance
Interest: after 1 year
Taxes: after the first year

15.

CASH FLOW STATEMENT
Can’t be
negative!!!

16.

YOUR BUSINESS PLAN
Investment and finance planning (opening balance sheet)
Sales forecast (1 year)
Income statement (1 year)
Cash flow statement (monthly for 1 year)
EXPLANATIONS!!!

17.

GOOD LUCK!!