The Financial Plan Contributed by Arya Kumar Chief ED & IPR Unit BITS, Pilani Financial objectives are both the starting & finishing point of a good business plan.
Contributed byArya KumarChief ED & IPR UnitBITS, Pilani
The Financial plan seeks to reflect the financial implications of your marketing, people and operational plans in the form of profit-loss accounts, cash flows, and balance sheets.
Saravana bhavan will set up and operate a small chain of south-indian restaurants in UK. These will provide traditional south-indian food in a relaxed atmosphere offering value-for-money food in the middle priced NRI market.
The chain of Saravana Bhavan is already a proven concept in parts of Indian subcontinent, serving south-indian food on a quick throughput basis but without the fast-food image. Labour costs are low and with a limited menu, waste is avoided and in turn makes value for money possible.
One Saravana Bhavan has been in operation for six months in London, so the following assumptions have been drawn partly from experience and partly from market research.
This equals 61 % of sales.
Balance sheet assumptions
The purpose of the income statement is to show managers and investors whether the company made or lost money during the period being reported.
The statement shows how changes in balance sheet and income accounts affected cash and cash equivalents, and breaks the analysis down according to operating, investing, and financing activities.
A balance sheet is often described as a snapshot of a company's financial condition.