Module 5 • The business plan – completing the business plan


6 Financial plan This section should receive a lot of your attention. Many new businesses experience severe financial difficulties in the beginning and go under because of a lack of financial planning. Your detailed financial plan should include the following: • Product costing • Pricing of the products •


A detailed income statement for the first year, highlighting the income and expenditure you expect on a monthly basis


• A calculation of your break-even point • Sales forecasts for the first year of your business • A balance sheet for the first year (optional) • A budgeted cash flow statement to reflect your cash position on a monthly basis • A description of your administration or record-keeping system •


If you intend applying for a loan, it should explain the purpose of the financial request, i.e. – the amount requested – how the funds will be used – how you intend repaying the money.


7 People in your business This step deals with people and people-related matters in your business. Remember, you have to work with and through people to achieve success. This ensures that the business has a qualified workforce to achieve its objectives. Aspects such as recruitment, training, labour relations, remuneration and conflict resolution all form part of the role of the Human Resources Department. • How many people you will employ and the type of training they will need


• Salaries and wages structure •


Aspects of your remuneration policy, such as working hours, leave, medical aid and trade unions


• An organisational/business structure 8


Conclusion •


•


A summary of why you believe your business plan will succeed


A motivating factor for other people to have faith in your proposed venture


1.2.4 Supporting documents


The following can be included if available: • Credit reports • Letters of reference • Legal documents • Copies of contracts and leases


Description of your business idea Marketing plan Operational plan Financial plan People plan Conclusion


Support materials 97


Cover sheet Business plan


Contents page Introduction


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