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Budget Planning


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Budget Planning

  2. 2. • Estimate Budget plan for Core Constructions. • Financial plans of the company. • Present Balance Sheet & Profit or Loss Statement. • Direct and In-Direct Costs. • Budget TimeLine. • Break even analysis. • Risks Involved
  3. 3. • Core Construction company provides building services and quality construction with high standards and techniques. • The company creates award-winning multi-million dollar facilities throughout the United States. • CORE Constructions started in 2013 and the company began to bid successfully for large scale products. • All tasks are performed by skilled craftsmen for an effective management of projects during construction.
  4. 4. • Written Business Plan • Determine financial need • Obtain necessary licenses and permit • Get Insurance • Purchase or lease construction equipment and tool • Cost estimation • Hire experienced construction workers. • Hire subcontractor • Advertise construction company. • Start a website for your construction company.
  5. 5. • We expect to see increased profits from our market by the end of year 1. • For the first three years we expect lower profits as we make inroads into the market. • It was exclusively owned by Mr.A(50%) and Mr.B(50%). • This company is expecting to alter to a C class corporation. • This which will create greater investment opportunities through the acquisition of investment capital from a limited number of shareholders.
  6. 6. • The categories that we will serve include the restaurant segment. • The special facilities segment, such as gas stations, and theaters. And a category which we will call "general", encompassing all other potential commercial clients
  7. 7. Total expense = Direct + Indirect Cost = $ 2,923,060 Total Sales = $ 4088637 Profit = Total Sales -- Total expense. = $ 1,165,577 Investment = Land + Building + Machinery = $1,221,050 Break Even point = 1221050/1165577= 1.04 After 1 year, the company will start making profit.
  8. 8. Design Risks • Design errors and omissions • Failure to carry out the works in accordance with the contract External risks • New stakeholders emerge and request changes • Laws and local standards change Organizational risks • Inexperienced workforce and staff turnover • Delayed deliveries • Lack of protection on a construction site
  9. 9. Project management risks • Failure to comply with contractual quality requirements • Scheduling errors, contractor delays • Project team conflicts Construction risks • Construction cost overruns • Technology changes