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Sme consulting - Financial Planning
The document outlines key financial planning concepts including income statements, pricing models, break-even analysis, and capital budgeting. It also details services provided by SME Consulting, such as market research, business transformation, and recruitment for startups. Additionally, it includes contact information and addresses for their offices in Egypt and Saudi Arabia.
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Sme consulting - Financial Planning
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- 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 Copyrightsreserved © 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 Copyrightsreserved © 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