FINANCIAL PLAN

This covers the financial requirements of the proposed business.

FINANCIAL NEEDS OF A POTENTIAL BUSINESS

The success of every business depends on proper identification of business needs. Like human beings have needs such as food security is the same case with business. The business needs include;

INVESTMENT NEEDS

These are need that an entrepreneur invests in order to get a return. These needs are either capital investment need or working capital needs. Capital investment needs include

• Acquisition of land
• Site preparation
• Buildings
• Machinery and equipment
• Installation of fixtures and fittings
• Furniture
• Provision for inflation

WORKING CAPITAL NEEDS

This refers items needed to facilitate day to day activities of the business. These include;

• Purchase of raw materials
• Payments of labour
• Payment of utilities(water, power, telephone)
• Transport costs
• Packaging materials
• Payment of tax
• Machinery repairs
• Stationery and postage
• Payment of Interest on loans

PRE OPERATING NEEDS

These are business needs that the entrepreneur meets before commencement of business. They include;

• Business registration
• Trading license
• Market research
• Installation expenses
• Advertising
• Administrative costs
• Legal fees
• Supervision expenses
• Initial rent