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Financial Plan

The document discusses financial analysis for entrepreneurship. It explains that financial analysis is the process of analyzing economic factors like capital costs, operating costs, and revenue to evaluate a project and make decisions. It also discusses estimating capital costs of a project, which includes pre-project expenses, land/building costs, equipment, taxes, consulting fees, and interest during setup. Additionally, the document outlines various sources of funding for entrepreneurs, such as personal funds, family, loans, share issues, asset sales, and international organizations.

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Moljibok Daniel
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28 views10 pages

Financial Plan

The document discusses financial analysis for entrepreneurship. It explains that financial analysis is the process of analyzing economic factors like capital costs, operating costs, and revenue to evaluate a project and make decisions. It also discusses estimating capital costs of a project, which includes pre-project expenses, land/building costs, equipment, taxes, consulting fees, and interest during setup. Additionally, the document outlines various sources of funding for entrepreneurs, such as personal funds, family, loans, share issues, asset sales, and international organizations.

Uploaded by

Moljibok Daniel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Y

B R
N KA
A A
L
P UB
L B
IC I A A
O P C
T N I M
A H
I N A
F BR
I
OBJECTIVES
AT THE END OF THE LESSON, THE TRAINEES SHOULD BE ABLE TO;

 Explain the estimate cost of establishing a business


 Identify the sources of funding of an entrepreneur
INTRODUCTION

Financial analysis is defined as the process of


discovering economic facts about an enterprise or
project on the basis of an interpretation of financial
data. It focuses on all aspects like capital costs,
operational costs and operating revenue. It establishes
relations with various factors of the project and helps in
decision making at different stages of the project
activities.
A financial analysis brings out where the company
stands with respect to profitability, liquidity, leverage
and an effective use of its assets. It is the process of
determining the significant financial characteristics of a
firm both external and internal. The external analysis is
carried out by auditors, stock holders and investment
analysis. The internal analysis is performed by various
departments of a firm.
IMPORTANCE OF FINANCIAL ANALYSIS

 Evaluate project
 Displays soundness of project/ enterprise
 Indicator of performance
 Indicator of short comings
CAPITAL COST ESTIMATES OF THE PROJECT

Project capital cost is the sum total of all the expenditure


incurred on a project till the date of commercial. This covers
pre- project cost, cost of land and building, plant and
machinery, miscellaneous fixed assets, duties and taxes and
capital goods, consulting service charges, intangible expenses
and interest burden during the execution stage.
Pre- project cost are advanced expenses of feasibility study,
survey for raw materials, machineries and consulting charges.
SOURCES OF FUNDING FOR
ENTREPRENEURSHIP
Funds are required to transform a business idea in to
reality. The introduction of business, remains largely as
an idea, until it is financed. The financial needs of a
business is its sources of funds and its method of raising
capital, all depends largely on the size of business and
form of ownership.
VARIOUS SOURCES OF FUNDING FOR
AN ENTREPRENEUR
 Personal fund
 Family sources
 Co-operative societies
 Commercial banks loans
 Issues of shares
 Sales of assets
 Mortgage loan
 International finance cooperation
ANY

QUALMS?????????
THANK YOU

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