Financial Analysis and Business Plan: Manufacturing Sensors Project

This assignment presents a comprehensive business plan for a sensor manufacturing company, outlining key objectives, financial projections, and operational strategies. The plan includes detailed analyses of startup costs, balance sheet forecasts, profit and loss statements, cash flow projections, and break-even analysis. The student outlines financial objectives such as increasing sales and reducing costs, and provides assumptions regarding sales growth, cost of goods sold, and loan repayment. The document incorporates references to relevant business and entrepreneurship literature to support the financial and strategic decisions. The business plan demonstrates the profitability and growth potential of the sensor manufacturing venture, with a focus on financial sustainability and effective business management.

MANUFACTURING SELLING SENSORS
MANUFACTURING SELLING SENSORS
Name of the student:
Name of the university:
Author Note:

MANUFACTURING SELLING SENSORS
Table of Contents
Key objectives and financial review................................................................................................3
Start – up cost..................................................................................................................................5
Balance sheet forecast......................................................................................................................6
Profit and loss forecast.....................................................................................................................7
Cash flow statement.........................................................................................................................8
Break-even.......................................................................................................................................8
Conclusion:......................................................................................................................................8

MANUFACTURING SELLING SENSORS
Key objectives and financial review
Major objectives of business will be –
 Increasing sales by at least 125% by the end of 3rd years from the start of business
operation
 Reducing the COGS by 2% from the 2nd year of the business operation
 Enhancing the business profit through increasing number of the target customers.
From the projections it is estimated that the start-up cost will be $ 21,09,000 that will be
required for registration and related expenses and $ 33,50,000 will be required for purchasing
equipments. Further, out of total requirement of $ 54,59,000, 60% of requirement amounting to $
32,75,400 will be funded through equity and 40% of requirement amounting to $ 21,83,600 will
be funded through long-term borrowings (Burns & Dewhurst, 2016).
Assumptions
Various assumptions made in projection are as follows –
 In 2nd year sales will enhance by 12% and in 3rd year it will further enhance by 14%
 Sales will increase significantly in December as the company will offer various gift
system due to Christmas
 COGS will be 60% in 1st year of business and will be reduced to 58% for both 2nd and3rd
year
 Loan and interest will be paid quarterly

MANUFACTURING SELLING SENSORS
Start – up cost

MANUFACTURING SELLING SENSORS
Balance sheet forecast

MANUFACTURING SELLING SENSORS
Profit and loss forecast

MANUFACTURING SELLING SENSORS
Cash flow statement
Break-even
Conclusion:
From the above statement it can be concluded that the business is showing a profitable
trend over the last three years. The breakeven is obtained when the number of units sold is 3750.
The manufacturing of the sensors is quite profitable which further ensures effective business
growth (Ward, 2016).

MANUFACTURING SELLING SENSORS
References
Burns, P., & Dewhurst, J. (Eds.). (2016). Small business and entrepreneurship. Macmillan
International Higher Education.
Ward, J. (2016). Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.