INTRODUCTION TO FINANCIAL PLAN

The main reason why people set up a business is to make profit. If they are not successful, they may be suffering loss. When we are involved in the business, we should prepare to face any problems that will occur in the business. Then, they will be feeling satisfied if their business is success and make more profits. Therefore, most of businessman will prepare a financial plan as one of the first step when they want to open a business.

Financial is the most important element in completing a business report. Its function is to record all the financial performance of the business. It also uses to determine the cost that involves starting the business, capital structure and depreciation for fixed assets, cash flow in the business, business scope and prospects.

The main objective to make this financial plan is to determine the project implementation cost; sources of project financing, profit and loss account also a balance sheet.

The financial plan is a plan that shows the short and long-term financial requirements in order to start a new business. It also shows how the requirements are going to be financed by using internal and external resources.

The financial matter is under the preview of financial of manager. A financial manager is required to prepare:

Overall financial plans for the company activities and to be presented to the management at required duration.

Advised on good financial management and cost control program which in turn could lead better production cost.

FINANCIAL SOURCES

For all new Bumiputera entrepreneurs, especially who were involve in small and medium industries, there have a Financial Institution which give financial support and also guidelines to run the business. They are:

BANK RAKYAT MALAYSIA BERHAD

There are some private banks also who can give financial support to all entrepreneurs in any business. Besides financial support, they also give guidelines to those who want to apply the financial support, which includes workshops and also on-going advice while the business is running.

GOALS AND OBJECTIVES OF FINANCIAL PLAN

To determine the amount of money to be invested base to the project cost To determine the cost incurred in starting the business.

To identify and propose the relevant sources of fund To ensure that the initial capital is sufficient To appraise the viability before actual investment is committed As a guideline for implementation To know the business potentialSTRATEGIES OF FINANCIAL PLAN To ensure the cash flow in hand always sufficient and available to finance the business expenses required

To ensure the profit rate for the business will keep and increasing in order to consolidated

To guide and make sure the business cash flow

Clever in finding space or potential opportunities to strength position.

JENTERA MAJU Sdn. Bhd. starts the business with capital RM 1000,000.00. This capital collecting from the contributed of 5 partnership members, which is every partner, contributed about RM 200,000.00. For additional capital, we had made loan from Bank Rakyat Malaysia Berhad which given us RM 462,778with 7% interest rate.1. The relationship between financial planning with others input or department is: Operation expenditure-cost of fixed asset and monthly expenditure Marketing expenditure-cost of promotion and signboard, business card, banner, and also monthly expenditure. Administrative Expenditure-cost of office equipment and monthly expenditure.In this financial planning also included the financial statements with the table and the statements which are related:

Project Implementation Cost Schedule Resources Implementation Project Loan Amortization Schedule Hire Purchases Payment Schedule Depreciation Schedule Purchases And Payment Schedule For the Year 2011-2013 Cash Flow Pro-Forma Statement For the Year 2011-2013 Profit And Loss Account For the Year 2011-2013 Balance Sheet For the year 2011-2013The Financial Planning activity involves the following tasks;-

Assess the business environment

Confirm the business vision and objectives

Identify the types of resources needed to achieve these objectives

Quantify the amount of resource (labor, equipment, materials)

Calculate the total cost of each type of resource

Summarize the costs to create a budget

Identify any risks and issues with the budget se

ADMINISTRATION BUDGET

MARKETING BUDGET

SALES AND PURCHASES

OPERATIONS BUDGET

PROJECT IMPLEMENTATION COST AND SOURCE OF FINANCE

FINANCIAL RATIO JENTERA MAJU SDN. BHD.

The Current Ratio is the ability of our company asset to pay for any liability or debt. From the graph it shows that our company have gain 3.10% I the first year. In the second year, the ratio increase softly to 4.01% and it has increase unexpectedly to 5.23% in the third year. It means that our company has more asset than debt and our company wills growth from year to year. So, our company is reliable and viable for this business.

The Quick Ratio show that how fast our company can get the money to pay for debt in the first year. The graph shows that our company have gain 3.09%.Then the graph have increase softly to 4.00% in the second year and the third year the graph have increase unexpectedly to 5.22%. It means that our company can get the money faster to pay the debt. So, it will be faster to our company to get more projects to another year

The Return on Sales graph shows that how much money or profit that our company gain from the service. Our company has gain 2% in the beginning year. In the second year it has increase to 8% and then it go up suddenly to 15% at the third year. The profit will increase more from year to year and our company asset will be strong. So, our company will sustain in the market for a long time.

The Return on Equity graph shows that how much our company can return the service from the machine or equipment that we by to operate the business. The first year graph shows that our company gain 2%. The graph id increase to 8% in second year and increase 16% in third year. It means our company will get more sales from the equity. So, the return of equity will be able to increase more in another year.

The Return of Investment graph show that how much our company spent the money to run our business to sell the service and get the sell revenue. The graph shows that our company has gain 1% in the early year and it increase softly to 5% in the second year. In the third year, it goes up suddenly to 11%. It means the return on investment will increase more year to year. So, our company is able to sustain the service.

The Debt Equity graph shows that how our company is able to pay the ay debt. In the first year, the graph shows that our company has a debt to 28.89%. Then the graph goes down suddenly in the second year to 5.17%. Third year our company be able to decrease the debt to 1.67%. The debt will decrease to the lowest stage in another year. So, our company is reliable and viable for this business.