Financial Plan

A. Financial Projections
How will you fund the business?
Internal equity contributions of RM65 000/shareholder
**Applying for financial aid from the Ministry of Science, Technology and Innovation
(MOSTI)**
What is your desired debt and equity position?
Who will provide capital debt funds?
What role will leasing play in your financial strategy?
Financial lease for funding the office rent for the first 3 years of our operation (approx..
RM5k/month).
Will you use outside investors for equity capital?
No
How will you manage the financial risks your business faces?
Contigency cost at 10% of working capital will be set aside.
What operating procedures, such as developing cash flow budgets or spending limits,
will you have to ensure adequate money for debt repayment?
Cash flow budgets on monthly basis for the first year and annually for the consecutive
years.
What are the important assumptions that underlie your projections? These assumptions
may be associated with both external and internal factors.
No increment of material costs, any hike in petrol price or shortcomings that require
more than the provided contingency cost to be covered.
What financial aspects of your business (equity, asset growth, ROA, ROE, etc.) will you
monitor?
Return of Equity
What procedures will be used for monitoring overall business performance?
What level of performance will your business shoot for? These should be targets for next
year and in five years. They should be financial performance standards used to monitor
the overall business.

What yield and output levels could you attain? What efficiency levels will you reach?
B. Contingency Plan
What will you do if you cant follow through with your primary plan?
Providing minimal delivery charges for the first 5 years to increase the numbers on the
cash sales. If the prospects of the product are promising, an increment in unit sale value
MUST be considered along with improved service and coverage. This could help in
providing wider margin of profits at the end of each month to fund for the upcoming
months.
How are you preparing for an emergency in your business?
Attaining funds from family and friends prior to opting for bank loans because these
sources are highly more reliable than banks or money lenders.
How will the business function if something happens to one of the key members of the
management team?
**Applying for financial aid from the Ministry of Science, Technology and Innovation
(MOSTI)** This shall be done only after seeking for a new shareholder to replace the
vacant portion of the share and management team.