Financial planning helps you determine your short and long-term financial goals and create a balanced plan to meet those goals.

1. Financial Planning

2. Financial Planning - Outline
Copyrights reserved © 2021 SME Consulting
Income
Statement
Pricing
Models
Break-
even
analysis
Balance
Sheet
Capital
Budgeting

3. Income Statement
Copyrights reserved © 2021 SME Consulting
Year 1 Year 2 Year 3
Sales (Q*P) 100,000 110,000 120,000
- Cost of Sales (Q*VC) 60,000 66,000 60,000
Gross Profit 40,000 55,000 60,000
- Operating Expenses 25,000 25,000 25,000
Net Operating Income 15,000 30,000 35,000

4. Pricing Models
Copyrights reserved © 2021 SME Consulting
Cost plus
pricing Target
Costing

5. Cost plus pricing
Copyrights reserved © 2021 SME Consulting
Price
Variable
Cost
All other
costs /
Number
Units
Mark Up
Target
Profit
Expecte
d No. of
units

6. Target Costing
Copyrights reserved © 2021 SME Consulting
• Price is given from your market analysis
Price Markup
Cost

7. Break-even analysis
Copyrights reserved © 2021 SME Consulting
• Break-even quantity is the minimum quantity required to
cover all your costs.
• Break-even is the quantity that makes profit = Zero
• Net Profit = Contribution Margin Per Unit * Q – FC
• Net Profit = (P-VC) * Q = 0
• Q = FC / (P-VC)

8. Balance Sheet
Copyrights reserved © 2021 SME Consulting
Uses Of Money Sources of Money
Cash 1,000 Accounts Payable 3,000
Accounts Receivables 2,000 Notes Payable 3,000
Inventory 1,000 Debt 20,000
Software license 2,000
Computers 10,000 Partner 1 Share 10,000
Machines 10,000 Partner 2 Share 10,000
Building 20,000
Total 46,000 Total 46,000

9. Capital Budgeting
Copyrights reserved © 2021 SME Consulting
• Relationship between :
Net Income
Initial Cost
Retirement Cost
Uses of
money
Advertise
ment
Other
start-up
expenses
Sale Value of your project at the end of the project

10. Capital Budgeting
Copyrights reserved © 2021 SME Consulting
•ROI = Net Operating Income / Investment
•EX: ROI = 100,000 / 1000,000 =10%
•It means that 10 pound investment return 1 pounds per year
Return On Investment
•How many years required to cover your capital
Payback Period
•Value of all income during the life project today – initial cost
•NPV = ∑ (Operating Cash flow / (1-r)n ) – Initial Cost + (Terminal Cash Flow / (1-r)n )
r: require rate of return I n: time of the cash flow
• Time Value of Money : money in the present is worth more than the same sum of
money to be received in the future.
Net Present Value
•It is the return rate of the project
•IRR is calculated using the same concept as NPV, except it sets the NPV equal to zero.
•Ex) If the IRR = 8% but the Cost of capital is 10% , then Reject the project since the return is
< Cost of capital . The NPV will be negative
•Ex) If the IRR = 10% but the Cost of Capital is 10%, then it doesn’t matter since the return =
cost of capital. The NPV = Zero
Internal Rate Of Return

11. 11
Our Services
11
Process Analysis & Improvement
Analysis is carried out to determine which
processes and process steps are value-adding or
non-value-adding and then work on enhancing the
effectiveness of each process.
Marketing Services
We offer to prepare your market
research, competition analysis &
marketing plan in Egypt or abroad.
Besides, we develop an international
market entry strategy if you want to go
global.
Operations Manual
The operations manual will contain the
basic knowledge that shows how the
brand will succeed and how the
franchisees will operate the business.
Copyrights reserved © 2021 SME Consulting
Feasibility Study
Performance Review
Financial Services
Business Startup in Egypt
Strategic Planning
Marketing Services
International Business
Wherever you perform an
International Business Venture, SME
Consulting will be there to help you
to give powers to your business to
perform smoothly and easily.
Business Transformation
We help you to plan and choose the
suitable tools for your business
transformation and empower your
staff to apply the transformation
successfully.
Recruitment
We can help you to find the right
candidates, interviewing, selecting,
and outsource the right team.

12. Get in Touch
Copyrights reserved © 2021 SME Consulting
We’d Love to Hear From You
Send us a message or visit us whenever you like
13 El Tayaran St, Manteqet Al Cinema, Nasr City,
Cairo Governorate.
(+20) 1204538024 - (+20) 0224047915
11321 - Kingdom Centre - 28th floor – Riyadh,
Saudi.
(009) 66541549143
Egypt Office
KSA Office
info@smecastle.com
company/sme-consulting-egypt/
/SMECastleConsulting

13. Thank
YOU
Copyrights reserved © 2021 SME Consulting