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Financial Plan |
As
there is a long term growth strategy for the business, combined
with initial limited profitability, the most suitable form
of investment is via equity. Short term interest payments
on a loan would damage the cash position of the business.
requires an equity investment of £[amount].
or As this business plan shows, the long term success of the business is based upon short term investment in order to achieve [state objectives]. therefore requires a loan of £[amount] to be repaid over a period of [time period]. The bulk of the required funds £[amount] will be immediately allocated to [outline spending plans]. The [item] will be operational by [date] and will be generating revenue for the business by [date]. The effects of the increasing revenues are shown in the profit and loss assumptions below. The bulk of the required funds £[amount] will be immediately allocated to [outline spending plans]. The [item] will be operational by [date] and will be generating revenue for the business by [date]. The effects of the increasing revenues are shown in the profit and loss assumptions below.
The sales figures provided allow for modest increases throughout the life of the plan. They have been calculated conservatively based upon significant research and past experience. The main costs i.e. [list costs] are easily identified and as such can be accurately determined and controlled. The growth of the shareholders' funds from [starting figure] to [closing figure] shows how the business retains earnings while funding its own growth. Extensive research has shown that the cashflow assumptions are highly accurate. Studies of similar businesses have indicated that the remittance patterns from clients and the expectations of payment from suppliers are in order. As
can be seen in the financial plan, continues to earn healthy
profits throughout the life of the loan. The additional
interest and principal payments will be met from operating
profits. The costs of the loan are more than offset by the
additional profits which the investment brings. |