Financial Analysis and Planning for a Business Start-up Presentation

This presentation provides a detailed financial analysis for a business start-up. It begins by outlining the initial start-up costs, including equipment, stock, employee wages, and marketing expenses. The presentation then details the sources of finance, including owner contributions, bank loans, and financial institution borrowing. A profit and loss statement is presented for the first six months, second six months, year 2, and year 3, highlighting that the business is expected to become profitable in year 2, with a 9% profit margin against a forecast of 13%, and 13% profit in year 3 against a forecast of 18%. Finally, the presentation includes a cash flow analysis for the first and second six months of the first year, comparing the actual and forecasted figures, indicating that the business is expected to be successful given the current market conditions.

Running head: BUSINESS START-UP
Business start-up
Name of the student
Name of the university
Student ID
Author note

1BUSINESS START-UP
This presentation is on the topic of business start-up financial plan and will present the same
through profit and loss statement for 3 years and the cash flow statement for 1st year.
Slide 1 – as you can see from the 1st slide that it presents the start-up cost required for starting
the business. The start-up cost of the company will include various costs and the major costs
are the cost of equipment, stocks, wages of the employees and marketing and promotional
cost. Equipment cost will include the cost of kitchen equipment like coffee machine and
microwave oven and the attributable cost will be amounted to £ 200,000. Stocks will include
the cost of coffee powder, milk powder and the raw material for various drinks and at start-up
the stock will be maintained for £ 50,000. Employee’s wages will include the payment to 2
chefs, 2 waiters and 2 service interns and 1 dishwasher. Further, the cost that is expected to
be incurred for marketing in the initial stages for starting-up is expected to be £ 12,000.
Slide 2 – the 2nd slide will talks about the source of finance. It is expected that out of total
requirement £ 500,000 will be contributed by the business owners and other source of finance
will be bank loan and borrowing from financial institutions. Operating cash shortfall will be
amounted to £ 50,000.
Slide 3 – slide 3 will discuss about the profit and loss account of the business. The profit and
loss account is presented for 1st 6 months and then 2nd 6 months and year 2 and year 3. It can
be observed from the data presented in the profit and loss statement that the company will
start earning profit on its sales from year 2 and in year 1 there will be loss that is the sales
revenue will be lower than the associated expenses. However, the actual profit for year 2 will
be 9% as against the forecast of 13%. Further, in year 3 the actual profit will be 13% against
the forecast of 18%.
Slide 4 – finally slide 4 will talks about the cash flow of the company for year 1. Cash flow
will be prepared for 1st 6 months, 2nd six months and then the summary for entire year will be

2BUSINESS START-UP
prepared. Available cash at the end of 1st 6 months will b e£ 79,93,200 as against the forecast
of £ 81,86,400, at the end of 2nd six months it will be £ 104,37,400 as against the forecast of £
108, 09,500
Therefore, it is expected that the business will be successful given that the other conditions
remain same.