I Key Assumptions p
II Profit and Loss Accounts p
III Balance Sheets p
IV Cashflow budget p
Requirements for Preparation of Projections
- Opening figures included based on latest Mgmt/Audited accounts
- Shareholders Fund analysed into Share Capital, Share Premium and Retained Profits
- Sales Assumptions provided by unit, price segment & geography and reconciled to pipeline
- Expenditure categorised into R&D, Admin and Overheads and Promoters / key managers salaries
- Identification of monthly and cumulative company operational deficits
- Sensitivity analysis may be required, detailing strategies to be implemented if sales or expenditure targets are not met.
- Projections should identify separately Operational Cash Flow and external Cash Injections
I Key Assumptions
<< This section reviews the key assumptions used in the financial projections. It is a guide to explain how key figures in the financial projections were arrived at. Included here should be items such as:
• Income sources
• Number of employees projected for each year and their intended salaries
• Projected investment in equipment and materials
• Projected R&D costs
• Depreciation allowed for
• Expected rent and rates charges
• Creditor days expected and debtor days allowed
• Expense calculations
This section should be brief and to the point. Further detail regarding these items can be placed in the Appendices. >>
II Profit & Loss Accounts
<< Attach here projected profit and loss accounts for the first three years of the company’s operations. >>
III Balance Sheets
<< Attach here projected balance sheets for the first three years of the company’s operations. >>
IV Cashflow budget
<< Attach here a monthly cashflow prediction for the first two years of the company’s operations. >>
- Funding Requirements
<< State here the total funding requirements of the business, and how those are intended to be provided. You will also need to state the approximate breakdown of how these funds are to be spent. (briefly)
Sources:
• Promoters’ funds
• Bank lending
• Grants or loans from agencies
• Investment already received
• Investment sought
Required for:
• Equipment
• R&D
• Marketing
• Staffing >>