Learn | Consult | ResearchBusiness Plan and PresentationIII. Financials – Growth and RiskBy: Sohan Babu KhatriCEOThree H Management
Sohan Babu Khatri - IntroductionProfessional Engagements:• CEO – Three H Management Pvt. Ltd• Director of Board – Grand Bank Nepal Ltd , Just-One-Nepal, SCDRR-NepalResource Person:• Ace Insititute of Management• Kathmandu College of Management• HVAP – MoAD (SNV)Educational Background:• Bachelor’s of Civil Engineering (BE Civil) - Pulchowk Campus, Institute ofEngineering, Nepal• Masters of Business Administration (MBA - Finance and Marketing),Bangalore University, India• Certified Financial Manager (CFM), Centre of Financial Management, Bangalore• Licensed International Financial Analyst (LIFA) - Charter Holder – InternationalResearch Association, Cambridge, Massachusetts
Agenda for three sessionsDay 1 - Business Idea and Concept PresentationDay 2 - Marketing Plan and PresentationDay 2 - Operational Plan and PresentationDay 3 - Financial Plan and PresentationDay 3 – Growth/Sustainability/Risk ManagementPlan and Presentation
Capital and Investment• Capital Plan– Equity– Debt• Long Term• Short Term• Investment Plan– Assets• Fixed Assets• Current Assets (Working Capital)
Revenue Projection• Sales Projection• For each revenue model• Should match with your pricing strategy• Should matching with your target marketprojection and your target segment growth• Show projection at least for 3 years• Justify your claims with proper data relatedto your opportunity, target market andcompetition• Be Realistic
Cost Projection• Cost of Goods Sold– All materials– All labors– All direct overheads• Add Operating Expenses– Add administration and general overheads• Categorize them– Add marketing and promotional costs• Categorize them
Profit• Revenue minus all costs• Project Realistically• Deduct all interest costs and taxes toarrive at Net Profit
Three Important Financial Statements• Income Statement– Statement of Profit and Loss• Cash Flow Statement– Statement of Cash Inflow and Outflow• Balance Sheet– Statement of Assets and Liabilities/Capital
Growth Plan• Do you have growth plan ?• How are you going to achieve it ?• Will it be supported by the available andpotential market ?• Will market also be growing ?• Do you have plans to add features ?Diversify ? Expand ?• How are you going to manage resourceswith your growth plan ?
Learn | Consult | ResearchRisk Analysis and Contingency Plan
Principle• Find out the sources of risk on eachestimation and projection you did so far• Expose the potential risks and ways oftackling them• Do you have Plan B if yourestimations/projections/assumptions goeswrong ?
…..• Can you adjust this business model tohave alternative value proposition ?• Is there possibility of Changing the wholebusiness model to a profitable one ?• Justify everything with objective andrealistic data and information.
Order of Presentation• Sales Projection• Income Statement• Key Financial Ratios• Investment / Capital Plan• Growth Plan• Risk Analysis and Contingency Plan
Learn | Consult | ResearchBest of Luck !!By: Sohan Babu KhatriCEOThree H Management