BUSINESS PLAN

VERSION 7.0
2008 ISMAIL AB.WAHAB, MALAYSIAN ENTREPRENEURSHIP DEVELOPMENT CENTRE (MEDEC), UNIVERSITI TEKNOLOGI MARA

CLICK HERE TO ENTER DATA

FINANCIAL PLANNING
Ismail Ab.Wahab, MEDEC, UiTM, 2006

NAME OF BUSINESS/COMPANY 1. Projected administrative, marketing and operations expenditure : MARKETING EXPENDITURE Fixed Assets Sinage RM ADMINISTRATIVE EXPENDITURE Fixed Assets Land & Building Furniture Office Equipment Renovation Working Capital Salary, EPF, SOCSO Office Rental Utilities Stationaries RM OPERATIONS EXPENDITURE Fixed Assets Machine and Equipment

Working Capital Salary, EPF, SOCSO Banner Advertising Travelling Expenses

Working Capital Raw Materials Carriage Inward & Duty Salaries, EPF & SOCSO

Other Expenditure Other Expenditure Pre-Operations Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Expenditure TOTAL 2. Projected sales and purchases: Year 1

Other Expenditure Other Expenditure Pre-Operations Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Expenditure TOTAL SALES PROJECTION Month 1 Month 2 Month 3

Other Expenditure Other Expenditure Pre-Operations Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Expenditure TOTAL PURCHASE PROJECTION Month 1 Month 2 Month 3

Year 2 Year 3 3. Collection for sales & payment for purchases:

Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total Year 1 ToTal Year 2 Total Year 3 COLLECTIONS FOR SALES In the month of sale 1 month after sale 2 months after sale Total FIXED ASSETS Furniture Office Equipment Renovation Sinage -

Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total Year 1 ToTal Year 2 Total Year 3 PAYMENTS FOR PURCHASES In the month of purchase 1 month after purchase 2 months after purchase Total FIXED ASSETS

100%

100% 5 5 5 5 5 5

4. Economic life of fixed assets & depreciation method:

Econ. Life (yrs)

Machine and Equipment

DEPRECIATION METHOD (1=straight line, 2=declining balance) 5. Increase in working capital (if any): Year 2 Year 3 6. Ending stock for raw materials and finished goods:
ENDING STOCK OF RAW MATERIALS

INCREASE IN WORKING CAPITAL (%)

RM

ENDING STOCK OF FINISHED GOODS

End of Year 1 End of Year 2 End of Year 3

End of Year 1 End of Year 2 End of Year 3

7. Rate of taxation (for private limited company): Year 1 Year 2 Year 3 8. Business background:

TAX RATE 28% 28% 28% 3 NATURE OF BUSINESS

1 = Manufacturing 2 = Trading 3 = Service

BUSINESS LEGAL ENTITY

1 = Private Limited Cpmpany (Sdn. Bhd.) 2 = Partnership 3 = Sole Proprietorship

9. Sources of finance:

TERMS OF LOAN (if required) Interest rate Loan duration Interest payment method*
* Method: 1 = flat rate 2 = annual rest

5% 5 2
kadar tetap

TERMS OF HIRE-PURCHASE (if required) Interest rate 5% Hire-purchase duration 5 Click here to allocate the sources of finance

FINANCIAL PLANNING
Ismail Ab.Wahab, MEDEC, UiTM, 2006

diture : OPERATIONS EXPENDITURE RM

PURCHASE PROJECTION -

\ PAYMENTS FOR PURCHASES 100% 100%

Econ. Life (yrs)

5 5 5 5 5 5 1

RM

PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE Project Implementation Cost

Requirements Fixed Assets Land & Building Furniture Office Equipment Renovation Sinage Cost Loan

Sources of Finance
Hire-Purchase Own Contribution Cash (1,830) (6,824) (3,000) (3,000) 1,830 6,824 3,000 3,000 Existing F. Assets

Source of finance exceeds cost! Source of finance exceeds cost! Source of finance exceeds cost! Source of finance exceeds cost!

Machine and Equipment

(2,000)

2,000

Source of finance exceeds cost!

Working Capital 1 months Administrative Marketing Operations Pre-Operations & Other Expenditure Contingencies 10% TOTAL

(3,937) (7,000)

3,937 7,000

Source of finance exceeds cost! Source of finance exceeds cost!

(27,591)

27,591

INPUT

CASH FLOW STATEMENT

INCOME STATEMENT

BALANCE SHEET

FINANCIAL PERFORMANCE

* Kaedah: 1 = kadar tetap 2 = atas baki tahunan

Faedah Pinjaman 5% Jangka Masa (tahun)

Faedah Sewa Beli 5% Jangka Masa (tahun)

5 Kaedah* 2

Source of finance exceeds cost! Source of finance exceeds cost! Source of finance exceeds cost! Source of finance exceeds cost!

Source of finance exceeds cost!

Source of finance exceeds cost! Source of finance exceeds cost!

ADMINISTRATIVE BUDGET
Particulars Fixed Assets Land & Building Furniture Office Equipment Renovation Working Capital Salary, EPF, SOCSO Office Rental Utilities Stationaries F.Assets Monthly Exp. Others Total Particulars Fixed Assets Sinage

MARKETING BUDGET
F.Assets Monthly Exp. Others Total Particulars Fixed Assets Machine and Equipment

OPERATIONS BUDGET
F.Assets

Working Capital Salary, EPF, SOCSO Banner Advertising Travelling Expenses

Working Capital Raw Materials Carriage Inward & Duty Salaries, EPF & SOCSO

Pre-Operations & Other Expenditure Other Expenditure

Pre-Operations & Other Expenditure Other Expenditure -

Pre-Operations & Other Expenditure Other Expenditure -

Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure
Total -

Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure
Total -

Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure
Total -

* Jangka hayat aset tetap: Land & Building Furniture Office Equipment Renovation Sinage

tahun tiada 5 5 5 5 5 5 5 5 1 2 3 4 5 6 7 8 9 10 11 12 Bulan

Anggaran Jualan & Belian Jualan (RM) Belian (RM) -

Machine and Equipment

5 5 5 5

Kaedah susut nilai 1=garis lurus, 2=baki berkurangan

Jumlah Tahun 1 Jumlah Tahun 2 Jumlah Tahun 3

#REF! #REF!
% kenaikan tahun 2 % kenaikan tahun 3 Kutipan Jualan Bulan semasa 1 bulan selepas jualan

#REF! #REF!
Tahun 1 Nilai stok (RM) Bahan mentah Barang siap 100% Kadar cukai (Sykt. Sdn Bhd) 28% 28% Tahun 2 Tahun 3

2 bulan selepas jualan Jumlah Bayaran Kepada Pembekal Bulan semasa 1 bulan selepas belian 2 bulan selepas belian Jumlah 100% 100% 100% Kenaikan modal kerja

OPERATIONS BUDGET
Monthly Exp. Others Total

DEPRECIATION SCHEDULES Fixed Asset Furniture Cost (RM) Method Straight Line Economic Life (yrs) 5
Year Annual Depreciation Accumulated Depreciation Book Value

Fixed Asset Office Equipment Cost (RM) Method Straight Line Economic Life (yrs) 5
Year Annual Depreciation Accumulated Depreciation

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

Fixed Asset Renovation Cost (RM) Method Straight Line Economic Life (yrs) 5
Year Annual Depreciation Accumulated Depreciation Book Value

Fixed Asset Cost (RM) Method Straight Line Economic Life (yrs) 5
Year Annual Depreciation Accumulated Depreciation

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

Fixed Asset Sinage Cost (RM) Method Straight Line Economic Life (yrs) 5
Year Annual Depreciation Accumulated Depreciation Book Value

Fixed Asset Cost (RM) Method Straight Line Economic Life (yrs) 5
Year Annual Depreciation Accumulated Depreciation

1 2 3 4 5 6

1 2 3 4 5 6

7 8 9 10

7 8 9 10

Fixed Asset Cost (RM) Method Straight Line Economic Life (yrs) 5
Year Annual Depreciation Accumulated Depreciation Book Value

Fixed Asset Cost (RM) Method Straight Line Economic Life (yrs) 5
Year Annual Depreciation Accumulated Depreciation

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

Fixed Asset Machine and Equipment Cost (RM) Method Straight Line Economic Life (yrs) 5
Year Annual Depreciation Accumulated Depreciation Book Value

Fixed Asset Cost (RM) Method Straight Line Economic Life (yrs) 5
Year Annual Depreciation Accumulated Depreciation

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

Fixed Asset Cost (RM) Method Straight Line Economic Life (yrs) 5
Annual Year Depreciation Accumulated Depreciation Book Value

Fixed Asset Cost (RM) Method Straight Line Economic Life (yrs) 5
Annual Year Depreciation Accumulated Depreciation

1 2 3 4

1 2 3 4

5 6 7 8 9 10

5 6 7 8 9 10

INPUT

CASH FLOW STATEMENT

INCOME STATEMENT

BALANCE SHEET

LOAN & HIRE-PURCHASE AMMORTISATION SCHEDULES LOAN REPAYMENT SCHEDULE

Amount Interest Rate Duration (yrs) -27,591 5% 5 Baki Tahunan
Interest Total Payment Principal Balance

ce Equipment

HIRE-PURCHASE REP
Amount Interest Rate Duration (yrs)
Year Principal

Method
Book Value Year Principal

1 2 3 4 5 6 7 8 9 10

(5,518) (5,518) (5,518) 0 0 0 0 0 0 0

(1,380) (1,104) (828) 0 0 0 0 0 0 0

(6,898) (6,622) (6,346) -

(27,591) (22,073) (16,555) (11,036) (11,036) (11,036) (11,036) (11,036) (11,036) (11,036) -11036

1 2 3 4 5 6 7 8 9 10

Book Value

Book Value

Book Value

Book Value

Book Value

BALANCE SHEET

FINANCIAL PERFORMANCE

SATION SCHEDULES HIRE-PURCHASE REPAYMENT SCHEDULE

5% 5
Interest Total Payment Principal Balance

PRO FORMA CASH FLOW STATEMENT

MONTH Pre-Operations 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL YR 1

CASH INFLOW Capital (Cash) Loan Cash Sales Collection of Accounts Receivable TOTAL CASH INFLOW 27,591 (27,591) 27,591 (27,591)

CASH OUTFLOW Administrative Expenditure Salary, EPF, SOCSO Office Rental Utilities Stationaries

Marketing Expenditure Salary, EPF, SOCSO Banner Advertising Travelling Expenses

Operations Expenditure Cash Purchase Payment of Account Payable Carriage Inward & Duty Salaries, EPF & SOCSO

Other Expenditure Pre-Operations Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure Fixed Assets Purchase of Fixed Assets - Land & Building Purchase of Fixed Assets - Others Hire-Purchase Down Payment Hire-Purchase Repayment: Principal Interest Loan Repayment: Principal Interest Tax Payable TOTAL CASH OUTFLOW (575) (575) (575) (575) (575) (575) (575) (575) (575) (575) (575) (460) (115) (460) (115) (460) (115) (460) (115) (460) (115) (460) (115) (460) (115) (460) (115) (460) (115) (460) (115) (460) (115) (460) (115) 0 (575) (5,518) (1,380) 0 (6,898)

CASH SURPLUS (DEFICIT) BEGINNING CASH BALANCE ENDING CASH BALANCE

575

575 575

575 1,150 1,724

575 1,724 2,299

575 2,299 2,874

575 2,874 3,449

575 3,449 4,024

575 4,024 4,599

575 4,599 5,173

575 5,173 5,748

575 5,748 6,323

575 6,323 6,898

6,898

575

1,150

6,898

INPUT

INCOME STATEMENT

BALANCE SHEET

FINANCIAL PERFORMANCE
-

PRO FORMA CASH FLOW STATEMENT

YEAR 2 YEAR 3

(5,518) (1,104) 0 (6,622)

(5,518) (828) 0 (6,346)

6,622 6,898 13,520

6,346 13,520 19,866

Ismail Ab.Wahab

PRO-FORMA INCOME STATEMENT

Year 1 Sales Less: Cost of Sales Opening stock Purchases Less: Ending Stock Carriage Inward & Duty Gross Profit Less: Enpenditure Administrative Expenditure Marketing Expenditure Other Expenditure Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure Interest on Hire-Purchase Interest on Loan Depreciation of Fixed Assets Operations Expenditure Total Expenditure Net Profit Before Tax Tax Net Profit After Tax Accumulated Net Profit (1,380) 1,380 0 1,380 1,380 (1,104) 1,104 0 1,104 2,483 (1,380) (1,104) Year 2

INPUT

CASH FLOW STATEMENT

BALANCE SHEET

Ismail Ab.Wahab

PRO-FORMA INCOME STATEMENT

Year 3

(828)

(828) 828 0 828 3,311

BALANCE SHEET

FINANCIAL PERFORMANCE

PRO-FORMA BALANCE SHEET

Year 1 ASSETS Non-Current Assets (Book Value) Land & Building Furniture Office Equipment Renovation Sinage Year 2

Machine and Equipment

Other Assets Deposit

Current Assets Stock of Raw Materials Stock of Finished Goods Accounts Receivable Cash Balance

0 0 6,898 6,898

0 0 13,520 13,520 13,520

TOTAL ASSETS Owners' Equity Capital Accumulated Profit Long-Term Liabilities Loan Balance Hire-Purchase Balance Current Liabilities Accounts Payable TOTAL EQUITY & LIABILITIES

6,898

27,591 1,380 28,971 (22,073) (22,073)

27,591 2,483 30,074 (16,555) (16,555)

6,898

13,520

INPUT

CASH FLOW STATEMENT

INCOME STATEMENT

PRO-FORMA BALANCE SHEET

Year 3

0 0 19,866 19,866 19,866

27,591 3,311 30,902 (11,036) (11,036)

19,866

INCOME STATEMENT

FINANCIAL PERFORMANCE

FINANCIAL RATIO ANALYSIS

Year 1 LIQUIDITY Current Ratio Quick Ratio (Acid Test) EFFICIENCY Inventory Turnover PROFITABILITY Gross Profit Margin Net Profit Margin Return on Assets Return on Equity SOLVENCY Debt to Equity Debt to Assets Time Interest Earned Year 2

#DIV/0! #DIV/0!

#DIV/0! #DIV/0!

#VALUE! #VALUE! #DIV/0! 20.00% 4.76% -76.19% -320.00% (2)

#VALUE! #VALUE! #DIV/0! 8.16% 3.67% -55.05% -122.45% (2)

INPUT

CASH FLOW STATEMENT

INCOME STATEMENT

FINANCIAL RATIO ANALYSIS

Year 3

#DIV/0! #DIV/0!

#VALUE! #VALUE! #DIV/0! 4.17% 2.68% -35.71% -55.56% (2)

INCOME STATEMENT

BALANCE SHEET

FINANCIAL RATIOS
Current Ratios
1 1

Quick Ratios

1
1

1 1
1

1
1

1 Ratio 1 2
Year 1

Ratio

1 0 0 0
0

0
0

0
0

0 3

0
1

Inventory Turnover
1 1 1

Gross Profit Margin

100.00% 90.00% 80.00%
70.00% 60.00%

1 1 1 0
0 0 0 0

Percent 1 2 Year 3

Times

50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 1

Net Profit Margin

25.00%

Return on Assets

100.00%

90.00%
80.00% 70.00% 20.00%

Percent

50.00%

40.00% 30.00%
20.00%

Percent
1 2 Year 3

60.00%

15.00%

10.00%

5.00%

10.00%
0.00%

0.00%
1

Return on Equity
5.00% 0%

Debts to Equity

1
-10%

4.00%

-20% -30%

3.00%

Percent

Percent

-40% -50% -60% -70%

2.00%

1.00%

0.00%

0.00%
1 2 3

-80%

Year

Debts to Assets
0%
1 -50% -1 -100% 2 3

Times Interest Earned

0
1

Percent

-150%

-1 Times
-2

-200%

-250% -2 -300%

-350% Year

-3

#DIV/0! #DIV/0!

#DIV/0! #DIV/0!

#DIV/0! #DIV/0!

#VALUE! #VALUE!

#VALUE!

#VALUE! #VALUE! #DIV/0! #DIV/0! 20.00% 8.16% 4.76% 3.67%

#VALUE! #DIV/0! 4.17% 2.68%

-76% -320% -2

-55% -122% -2

-36% -56% -2

TIOS
Quick Ratios

Year

Gross Profit Margin

2 Year

Return on Assets

2 Year

Debts to Equity

Series1

Year

Times Interest Earned

Year