1. CHAPTER 19 The Business Plan And Cash Flow Forecast 10/06/2018
This is the Title Slide
R. DELANEY

2. R. Delaney
A Business Plan
A business plan is a formal document that describes the present status of a business, identifies clear goals for its future development and lays down methods by which the goals are to be achieved.
A Business Plan is essential because:
It states definite measurable targets to be achieved by the business
It puts in place work practices to be used to achieve the targets
It identifies the finances required by the firm at all times
It provides essential information required by banks and future shareholders.

3. Main Elements of A Business Plan
R. Delaney
Main Elements of A Business Plan
Company details, e.g. name and address of the company
A list of the company’s products / services
Market research results
Sales promotion policies
Financial details of the business, i.e. its present cash situation and its future needs
Directors’ signatures

4. Business Plan: Q2 Workbook page 98. (Shown in 2 sections)
R. Delaney
Company Details
Name of Company
OK Products Ltd
Address of Company
1982 Patrick St. Cork
Shareholders / directors
Sheila and Helen O’Kelly
Managing director
Helen O’Kelly
Company bank
Bank of Ireland, Mallow
Products
Oil-filled heating radiators
Electric blankets
Market Research
Annual size of market
Oil-filled radiators
10,000
Electric blankets
20,000
Prices
Oil-filled radiators
€55
Electric blankets
€30
Competition
Five similar firms in the industry

5. Helen O’Kelly Sheila O’Kelly Sales promotion Forms of advertising
R. Delaney
Sales promotion
Forms of advertising
Distribution of catalogues
Sales reps calling on retailers
Autumn and winter advertising in local papers
Public relations
Sponsorship of advertising by the Health and Safety Authority
Financial details
Present value of premises and equipment
€560,000
Cost of expansion
€800,000
Less amounts available
Bank deposit
€400,000
Grants
€250,000
Mortgage required
€150,000
Signed
Directors
Helen O’Kelly
Sheila O’Kelly
Date
1/1/2012

6. Cash Flow Forecast: Q7 Workbook
R. Delaney
Cash Flow Forecast: Q7 Workbook
Jan
Feb
March
April
May
Jun
Total
Jan - Jun € € € € € € €
Receipts
Sales
80,000
80,000
80,000
92,000
92,000
92,000
516,000
Share capital
60,000
60,000
Sale of delivery van
10,000
10,000
(A) Total receipts
80,000
80,000
140,000
102,000
92,000
92,000
586,000
Payments
Purchases
45,000
45,000
45,000
54,000
54,000
54,000
297,000
Wages
9,000
9,000
9,000
9,000
9,000
9,000
54,000
Transport costs
5,400
5,400
5,400
5,400
5,400
5,400
32,400
Light and heat
2,100
2,500
2,200
6,800
Delivery vans
50,000
50,000
Telephone & internet
350
400
450
1,200
Advertising
3,500
3,500
3,500
3,500
3,500
3,500
21,000
(B) Total payments
65,000
63,250
115,400
72,300
74,100
72,350
462,400
Net Cash (A – B)
15,000
16,750
24,600
29,700
17,900
19,650
123,600
Opening cash
4,000
19,000
35,750
60,350
90,050
107,950
4,000
Closing cash
19,000
35,750
60,350
90,050
107,950
127,600
127,600