Financial Plan

CEDA will provide funding for a project, if all of the following are satisfactorily met:

• Your project is viable, sustainable, adds value to the economy.
• You are proven to be credit worthy (e.g. No negative listing with relevant with credit.)
• There is a proven market for your products or services

As CEDA we need facts and figures that enable us to judge the appropriateness of your financial assistance request.

This implies that your business plan should indicate how much money is allocated to:

• Purchase or rental of basic equipment i.e. machines, stock, start-up costs;
• Payment of fixed costs such as rent, electricity, taxes, and salaries;
• Payment of related costs such as advertising and transportation;
• Cash flow required for the three to twelve months;
• Build in a contingency fund.
• Time to market
• Contribution by the promoter

Financial Projections

The entrepreneur should estimate as precisely as possible the revenues and losses the business will experience until it becomes profitable, as well as set realistic goals that take into account such aspects as payment periods.

Financial Profitability

Financial profitability is key when assessing a business proposal for viability. Profitability indicates the possibility of the business being able to sustain itself profitably from its operations after taking care of direct and fixed costs from the generated revenues. Elements to be considered here are:

• Turnover /Sales and the basis which they are derived from
• Cost of goods sold, also benchmarking with best practice
• Operating costs / overheads
• Rent
• Salaries
• Bank charges
• Advertising
• Audit/Accounting fees
• Directors fees
• Insurance
• Finance charges
• Loan repayments
• Interest

The summary of the financial projections is captured through the following;

• Balance Sheet
• Profit and Loss statement
• Cash Flow