1. Vicii Kirkpatrick Group Financial Planning & Analysis Manager
Financial Forecasts
Vicii Kirkpatrick
Group Financial Planning & Analysis Manager

2. Agenda
Objectives
Basic Definitions
Who’s King?
Inputs and Outputs

3. Objectives Understand basic financial terms
Steps to prepare financial element of a business plan

4. Big Apple Carwash Company

5. Basic Definitions Assets Liabilities Debtors Creditors P&L
Income statement
Revenue
Costs of Sales
Overheads
Balance Sheet

6. Financial Statements P&L / Income statement Balance sheet
Revenue Cost of Sales Margin Overheads Profit before tax Tax Profit after tax
Assets
Fixed Assets
Current Assets
Liabilities
Current Liabilities
Long term Liabilities
Net Assets
Shareholders funds

7. Revenue is vanity, profit is sanity but CASH is KING
Who is King?
Revenue
Profit
Cash
Why?
Revenue is vanity, profit is sanity but CASH is KING

8. Inputs and Outputs
The best way to build a business plan is to ignore the pounds?
What will I need to start the enterprise?
What will I need to run the enterprise
Start with inputs and outputs in volume terms
Then work out your ordering quantities
Then price them
See if it makes money
Determine the cash needs

9. Key questions How much money do we need at start up?
What is our gross margin?
What is our break even point?
When do we start to generate cash?
What is our margin for error?