A business plan and marketing plan are tools used for financing the company by clearly explaining the sources of funding. Both the business plan and commercialization plan give a sense of direction of the enterprise. A marketing plan is very particular as it concerns the general organization’s efforts about marketing and marketing mix. The methods are very useful in that without these the overall strategies and goals would not be achieved timely and accurately. The objective of this work is to prepare the financial plan based on information from the business plan, marketing plan and the financial plan for Sliders Mobile Food Truck. The qualitative factors affecting the company are disclosed in the enterprise plan however, this is not sufficient to matters concerning disclosure and relevant accounting standards that recommend the preparation of the books of accounts based on a given format. The preparation of proper books of account is of significance to the relevant parties that have interests in the growth and continuity of the business. The parties involved include; the government, creditors, suppliers and other parties. A financial plan gives an overview of the resources required to execute a given project.
A feasible business will attract different stake holders as above-mentioned. For example;
- Customers-the customers are interested on whether the business will provide goods for a longer period.
- Employees- the employees are concerned about the ability of the company to offer better remuneration. It is illustrated by the financial statement. For this case, a poor performing company will discourage workers, and the effects may be adverse.
- The government- the government is interested in generating revenue in terms of taxation.
- Suppliers- willingness to continue supplying goods to the company is determined by the performance of the firm in the financial sphere.
The Financial Plan: Financial Statement
Assets
Non- Current Assets: Aed
Machinery………………………………………………………….. 40000
Other fixed assets …………………………………………………300000
Three trucks…………………………………………………………100000
Computers……………………………………………………………2000
Furniture and fitting…………………………………………………8000
Total………………………………………………………………..450000
Current Assets
Cash & cash equivalent…………………………………………..30000
Bank ……………………………………………………………….20000
Account receivables……………………………………………….50000
Notes receivable……………………………………………………20000
Inventory…………………………………………………………….30000
TOTAL CURRENT ASSET……………………………………….150000
e) Total assets (fixed plus current)………………………………600000
Liabilities
Keyviws suppliers………………………………………………….30000
Loans…………………………………………………………………20000
Accrued salaries………………………………………………………….50000
Total liabilities…………………………………………………………..100000
Net assets………………………………………………………………….500000
Financed by:
Capital…………………………………………………………………….430000
Additional investments…………………………………………………..70000
Totals……………………………………………………………………..500000
The annual income:
Sales of food products………………………………………………….200000
Rental income……………………………………………………………50000
Income from JK (debtor)………………………………………………..40000
Other incomes……………………………………………………………50000
Totals…………………………………………………………………….340000
Payments/Expenditures
Payment to suppliers……………………………………………………20000
Wages and salaries……………………………………………………..50000
Advertising expense……………………………………………………..2000
Tax expense/liability……………………………………………………..8000
Loan payment……………………………………………………………50000
Electricity expense………………………………………………………50000
Interest on loan…………………………………………………………..20000
Totals……………………………………………………………………200000
Annual Income Statement:
Details………………………………………………………………………………..AED
Sales…………………………………………………………………200000
Add opening stock…………50000
Purchases…………………..20000
Less return outwards……… (1000)
Cost of goods available for sale…………………….69000
Less closing inventory………………………………. (30000)
Cost of sales………………………………………………………………39000
Gross profit………………………………………………………………..161000
ADD. Rental income………………………………………………………50000
Other incomes……………………………………………………………..40000
Total income ………………………………………………………………251000
Less total operating expenses :……………………………………….( 200000)
Net profit…………………………………………………………………51000
The following summarizes how the financial plan that will match the business plan, market plan for Sliders Mobile Food Truck.
First, the company has current and fixed assets. The current assets include cash, bank, account receivables and notes receivables respectively. The non-current assets include machinery, furniture and fittings, three trucks and computers totaling to AED 600000.The working capital is given by current assets less current liabilities. The statement consolidating the information of assets, liabilities and the owners’ equity is known as balance sheet. The information relating to sales, purchases, expenses and revenues are captured by the income statement. The latter provides an effective way to calculate different ratios such as profitability and operating ration respectively.
The annual net profit for the company is 51000, which is depicted by the income statement for the entire annual period. The monthly sales have to be increased through massive advertising campaigns and advertisements. The profitability ratio, which reflects the net profit margin for the company is 25.5%. The resources can offset the available liabilities. The business plan takes precedence and provides a suitable avenue for the provision of finance to improve the business by consolidating the parameters in the business plan. The financial plan, market plan and business plan are highlights of the various components that could be important to the company’s growth and strategy.