Financial Plan for Fleur De Flo: Business Capstone Project 2019

This business capstone project outlines Fleur De Flo's financial plan for 2019 and 2020, focusing on strategies to increase revenue and customer base. The plan includes introducing QR code payment options, leveraging Facebook marketing, and implementing a reward program. Financial projections indicate substantial revenue growth, with net profit expected to increase significantly. The project also includes cash flow projections demonstrating the company's ability to generate surplus cash from operating activities. Key assumptions include achieving a fivefold increase in customers, no abnormal increases in operating costs, and a 30% income tax rate. The success of the plan hinges on aggressive promotional campaigns and effective management of financial resources. Desklib offers a wealth of similar solved assignments and past papers to aid students in their studies.

Running head: BUSINESS CAPSTONE PROJECT
Business Capstone Project
Name of the Student:
Name of the University:
Authors Note:

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BUSINESS CAPSTONE PROJECT
Contents
Introduction:....................................................................................................................................2
Financial plan:.................................................................................................................................2
Conclusion:......................................................................................................................................9
References:....................................................................................................................................11

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BUSINESS CAPSTONE PROJECT
Introduction:
Financial plan in an organization is the plan that outlines the use of financial resources to
generate revenue for the organization in the future. The objective of a financial plan is to
maximize the use of available resources by an organization to generate maximize the wealth of
the shareholders in the future. Here a brief discussion is made on the possible use of financial
resources to generate required amount of revenue for the organization in the future.
Financial plan:
Fleur De Flo runs a flower business and is looking to expand its operations to increase its
revenue in the future. The financial projection below for 2019 and 2020 has been made after
making certain assumptions. Firstly, it has been assumed that the business will be able to achieve
its objectives of increasing the number of customers to five times in the year 2020 from the
customers in 2019, i.e. 3000 customers in 2020 compared to 600 customers in 2019 (Wagner,
Ullrich and Transchel, 2014).
The business has estimated that in 2020 it will be able to increase its total number of customers
to 3000. In order to achieve that objective it has decided to introduce number of new facilities
within the business including QR code generation facilities for the customers to make swift
payments without requiring them to stand in cues to make payment. The company has also taken
a big decision of using Facebook marketing to attract the attention of the customers to achieve
the growth in revenue. Accordingly, the following calculations show the expected financial and
operational outcome of the flower business in the future (Schnusenberg, 2017).
Profit and loss projection:
The profit and loss projection statement outlining different elements of cost is provided below:

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BUSINESS CAPSTONE PROJECT
2019 2020
Reward program sales 48,600.00 97,500.00
Flyer drop & FB 24,000.00 96,000.00
Flyer drop & FB group cost (1,512.00) (1,208.00)
Reward program cost (22,600.00)
Net profit 71,088.00 169,692.00
It is clear from the above projected profit and loss statement that the flower business is expected
to grow at substantial pace and achieve its objective of increasing its revenue from flower sales
and weekly contracts. The company is expected to achieve almost 167% increase in its gross
revenue in 2020 within a matter of a year, i.e. from 2019. The net profit of the company is also
expected to grow at rapid speed within the same period as there is no indication of abnormal
increase in operating costs of running the flower business in the country. Thus, the net profit of
$49,761.60 earned in 2019 is expected to increase to $118,784 in 2020 after tax (Kotane, 2015).
Assumption:
It has been assumed that the company is liable to pay 30% income tax on the amount of net
profit earned by the company in a financial year.
Cash flow projections of 2019 and 2020 based on the cash flows in 2018.
Projected cash flow statement

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BUSINESS CAPSTONE PROJECT
2019 2020
cash flow from operating activities
Profit after tax 49,761.60 118,784.40
Add: Provision for tax 21,326.40 50,907.60
Profit before tax 71,088.00 169,692.00
71,088.00 169,692.00
Less: Taxes paid 18,500.00 21,326.00
52,588.00 148,366.00
Add/ (less): Changes in working capital (25,000.00) (35,000.00)
Net cash flow from operating activities 27,588.00 113,366.00
cash flow from investing activities
Fixed assets purchased (100,000.00) (100,000.00)
Sale of fixed assets 25,000.00 30,000.00
Net cash flow from investing activities (75,000.00) (70,000.00)
Cash flow from financing activities
Borrowings from banks 40,000.00 60,000.00
Repayment of loans 15,000.00 (30,000.00)

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BUSINESS CAPSTONE PROJECT
Net cash flow from financing activities 55,000.00 30,000.00
Net cash increase / (decrease) 7,588.00 73,366.00
Projected cash flow statement shows the ability of the company generate surplus cash flows from
its operating activities is expected to increase significantly with passage of each year (Kadam,
2017). Net inflow of cash from operating activities is expected to be $113,366 in 2020 as
compared to mere $27,588 in 2018.This is mainly due to ability of the company to generate
significantly higher amount of revenue from reward program and flyer drop and FB (Alberts,
2012).
Assumptions:
I. No depreciation has been considered in calculating cash flows from operating activities.
II. Changes in working capital has been assumed.
III. Repayment of bank loan and borrowings have been assumed to expand the business
operations.
Conclusion:
It is clear from the above that the ability of an organization to successfully mange its financial
resources will to a large extent determine the ability of the organization to achieve its objectives
in the future. It is important to remember though that above estimation will be materialized
provided the underlying assumptions are correct. Thus, the business must use aggressive
promotional and marketing campaign by using Facebook marketing platform to increase its
revenue from business operations by attracting more customers.

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References:
Alberts, M. (2012). The Importance of a Business Plan when Planning a Lexicographical
Project. Lexikos, 9(1), pp.12-18.
Kadam, D. (2017). Disaster Recovery Plan (DRP) and Business Continuity Plan (BCP) for
Financial Cooperatives in New Market Economy. SSRN Electronic Journal, 1(2), pp.7-18.
Kotane, I. (2015). Evaluating the importance of financial and non-financial indicators for the
evaluation of company’s performance. Management Theory and Studies for Rural Business and
Infrastructure Development, 37(1), pp.80-94.
Schnusenberg, O. (2017). Financial News Savvy and Its Importance: A Study of Business and
Finance Majors. Review of Contemporary Business Research, 2(7), pp.15-38.
Wagner, S., Ullrich, K. and Transchel, S. (2014). The game plan for aligning the
organization. Business Horizons, 57(2), pp.189-201.